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Monday 15 December 2014
Former Newark Watershed Conservation and Development Official Indicted in Kickback Scheme, Money LaunderingRead the Press Release
One Contractor Who Paid Kickbacks Also Charged
NEWARK, N.J. – A former high ranking employee of the Newark Watershed Conservation and Development Corp. (NWCDC) and a contractor from whom he allegedly received kickbacks were indicted by a federal grand jury today in connection with a scheme to solicit and accept payments for work by outside contractors, U.S. Attorney Paul J. Fishman announced.Donald Bernard Sr., 67, of Newark, is charged in the indictment with six counts of defrauding the corporation of his honest services, four counts of violating the Travel Act, three counts of extortion under color of official right affecting interstate commerce, two counts of wire fraud and three counts of money laundering.
Giacomo (Jack) DeRosa, 58, of Clinton Township, New Jersey, was indicted separately on two counts of wire fraud, one count of violating the Travel Act and three counts of money laundering.
According to the documents filed in this case and statements made in court:
During the time that Bernard was a consultant to NWCDC (2008 through 2009), as well as when he worked there as manager of Special Projects (January 2010 through March 2013), he devised scheme to accept a stream of concealed and undisclosed bribes and kickbacks from contractors. Bernard agreed to accept, and did accept, at least $730,000 in kickbacks directly and indirectly from various contractors, including DeRosa. Bernard assisted the contractors in financing the payments to him by causing certain contractors to submit fraudulent and inflated invoices to the NWCDC, which contained materially false representations and half-truths, in many instances billing the NWCDC for work that was never performed.
For example, from August 2008 to January 2011, Bernard accepted approximately $136,000 in kickbacks from a Newark company (Company 1) that performed printing work for the NWCDC. At times, due to the physical ailments suffered by the proprietor of the company, Bernard obtained blank checks from the company signed by the proprietor, which Bernard filled out payable to himself or his consulting company, Bernard & Associates (B&A), with the proprietor’s consent.
The maximum potential penalties per count are detailed in the chart below:Counts of Indictment
Defendant
Charge
Maximum Penalty per Count
Bernard
18 U.S.C. §§ 1343 and 1346
(Wire Fraud)20 years
Counts 1 and 2
DeRosa
Counts 7 to 11
Bernard
18 U.S.C. § 1952(a)(3) (the Travel Act)
5 years
Count 3
DeRosa
Counts 12 to 15
Bernard
18 U.S.C. § 1951(a) (extortion under color of official right affecting interstate commerce)
20 years
Counts 16 and 17
Bernard
18 U.S.C. § 1343
(Wire Fraud)20 years
Counts 18 to 20
Bernard
18 U.S.C. § 1956(a)(1)(B)(i) (Money Laundering)
20 years
Counts 4 to 6
DeRosa
The maximum fines for all of the above violations except the money laundering charges are $250,000 or twice the gain or loss resulting from the offense. The maximum fines for the money laundering charges are: $500,000, or twice the value of the property involved in the money laundering transactions, or twice the gain or loss resulting from the offense, whichever is greatest.
The Bernard indictment also seeks forfeiture of $1.4 million to $1.8 million in connection with the fraudulent schemes and forfeiture of $20,000 in connection with the money laundering charges. The DeRosa indictment seeks forfeiture of between $200,000 and $360,000 in connection with the fraudulent scheme and forfeiture of at least $20,000 in connection with the money laundering charges.U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford; IRS – Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi, as well as criminal investigators of the U.S. Attorney’s Office, for the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Mala Ahuja Harker of the U.S. Attorney’s Office Special Prosecutions Division.
The charges and allegations contained in the indictments are merely accusations and the defendants are considered innocent unless and until proven guilty.
14-442
Defense counsel:
Bernard Sr.: Thomas Ashley Esq., Newark
DeRosa: Anthony Pope Esq., NewarkBernard, Donald Indictment
DeRosa, Giacomo IndictmentFormer Fed-Ex Driver Convicted in Manhattan Federal Court of Using Truck to Assist Two Separate Drug Rings, and of Witness Tampering and ExtortionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDGAR ENCARNACION, a/k/a “Edgar Encarnacion-Lafontaine,” a/k/a “Tapon,” 47, was convicted on December 11 in Manhattan federal court of conspiring to distribute marijuana, conspiring to distribute cocaine, conspiring to commit extortion, extortion, and conspiring to commit witness tampering. As a result of his conviction, ENCARNACION faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
Manhattan U.S. Attorney Preet Bharara said: “A jury convicted Edgar Encarnacion of conspiring with a massive marijuana trafficking ring, and using his FedEx truck to transport large amounts of cocaine from California to the New York City area. While he was on pretrial release for the marijuana charges, Encarnacion threatened family members of another FedEx driver. Witness tampering and extortion will not be tolerated, and the jury has properly held Encarnacion accountable for his crimes.”
ENCARNACION’s charges initially arose out of a multi-year investigation titled “Operation Green Venom,” a coordinated multi-agency investigation that was led by Homeland Security Investigations, Immigration and Customs Enforcement (“ICE HSI”), and first announced in October 2010. More than 60 defendants have been convicted in United States v. Manuel Geovanny Rodriguez-Perez, et al., 10 Cr. 905 (LTS), and related cases. Those defendants include former Rock-a-fella music founder Kareem Burke, a/k/a “Biggs,” who received a sentence of five years in prison, High Times Magazine editor Matthew Woodstock Stang, a/k/a “Magazine Guy,” and Oscar Rodriguez, the cousin of the organization’s leader, who was convicted of racketeering and marijuana related charges and sentenced to 20 years in prison earlier this year.
According to the complaints, Indictments, and the evidence at trial, in 2010, EDGAR ENCARNACION agreed to use his FedEx truck to smuggle marijuana for Manuel Geovanny Rodriguez-Perez, a/k/a “Manuel Rodriguez,” a/k/a “Shorty,” the leader of a Washington Heights-based marijuana trafficking organization. During that same period, ENCARNACION was working with a separate cocaine-trafficking organization. ENCARNACION smuggled up to multi-kilogram quantities of cocaine in the sleeper area of his truck as he drove cross-country from California to Woodbridge, New Jersey. In December 2010, a man who was assigned to drive with ENCARNACION (the “Co-Driver”) stole $30,000 of several hundred thousand dollars of drug money that ENCARNACION had agreed to transport for the cocaine organization. About a week later, ENCARNACION was arrested in connection with the marijuana-trafficking investigation, Operation Green Venom. ENCARNACION was released on bail on those charges.
In early 2012, ENCARNACION began a campaign intended to force the Co-Driver to return the drug money he had stolen. ENCARNACION employed Facebook accounts set up in women’s names – including the name of one of the Co-Driver’s family members – to reach out to the Co-Driver’s in-laws. In these messages, ENCARNACION warned that the cocaine trafficking organization was “equipped with dangerous people who will do anything for money,” and threatened that the Co-Driver’s family in the Dominican Republic was “the most vulnerable, but nobody will be spared.” ENCARNACION posted photographs of the Co-Driver and his family members, including his three young daughters, on one of the Facebook accounts. In addition to using these Facebook accounts to threaten the Co-Driver’s family members, ENCARNACION used them to send disparaging messages about his ex-wife to her current in-laws.
During the same period in which he was making the Facebook threats, ENCARNACION also caused a telephone call to be made to one of the Co-Driver’s relatives in the Dominican Republic, during which she was warned that if the Co-Driver did not return the money, “blood was going to be spilled.” When these efforts did not cause the Co-Driver to return the money, ENCARNACION then went to the Co-Driver’s mother’s house, and demanded that she tell her son to call him about the money. During this visit, ENCARNACION also showed her a photograph of her son and grand-daughters. A week later, ENCARNACION left a threatening letter in front of the Co-Driver’s mother’s door, which reported that there would be violent retaliation if the Co-Driver did not return the money and warned, “Avoid the ‘law,’ otherwise the family in the [Dominican Republic] will not be saved.”
The Co-Driver’s family used an Internet search to discover that ENCARNACION was on pretrial release in connection with Operation Green Venom, and contacted federal authorities. The Co-Driver then agreed to assist the investigation by recording telephone conversations with ENCARNACION and his associate, co-defendant Juan Peralta, a/k/a “Johnny Jay,” who pled guilty to threats-related charges. After approximately six additional weeks of investigation – during which the threats continued through Superstorm Sandy – ENCARNACION was arrested at his residence on new charges, and remanded.
ENCARNACION, 47, was convicted of one count of cocaine conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of marijuana conspiracy, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison; one count of conspiracy to commit extortion, which carries a maximum sentence of five years in prison; one count of extortion, which carries a maximum sentence of 20 years in prison; and one count of witness tampering, which carries a maximum sentence of 20 years in prison. Because the defendant was on pretrial release for all but one of the counts, he faces a potential additional penalty of 40 years – 10 years for each count. The maximum potential sentences in this case are prescribed by Congress and are provided for informational purposes only, as any sentencing of the defendant will be determined by the Court.
Mr. Bharara praised the outstanding investigative work of ICE HSI.
The prosecution of the cases arising from “Operation Green Venom” is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Amie N. Ely and Emil Bove conducted the trial.
Former Builder Sent Back to Prison for Fraud While on Federal ReleaseRead the Press Release
TOPEKA, KAN. – Former Kansas City builder F. Jeffrey Miller has been sentenced to three years in federal prison for violating the terms of his release when he became involved in a new real estate scam, U.S. Attorney Barry Grissom said.
Miller, 53, was sentenced to 72 months in federal prison in August 2012 after a jury convicted him of bank fraud, money laundering and criminal contempt. On Jan. 10, 2014, he entered supervised release.
In a 16-page order issued last month, U.S. District Judge Julie A. Robinson cited evidence that Miller lied to his probation officer about his involvement with his son, Brandon, in a company called Tri-States Holding, LLC (TSH). She cited “substantial evidence about the fraudulent practices and transactions” by the company.
During sentencing hearings, prosecutors submitted evidence that Miller began planning a new business while he was in prison. He formed the new company with his 23-year-old son, Brandon. Although Brandon Miller was represented as the owner, his father controlled the company. The Millers claimed to be in business to buy, refurbish and sell houses. In fact, Judge Robinson said in her order, the business was engaged in a “contract for deed scam.”
The company purchased more than 40 houses at Jackson County, Mo., tax sales and then advertised the houses for sale to low-income people in the urban core of Kansas City. The company advertised home ownership for just $500 down, sweat equity of no more than $2,000 in the form of cosmetic repairs including painting and clean up, and then monthly payments of $399. The buyers signed contracts for purchase prices in the $35,000 range.
Prosecutors presented evidence the company failed to complete promised repairs, performing shoddy repairs or virtually no repairs at all and then harassed and threatened buyers who ceased to make payments.
Judge Robinson ruled Miller violated four conditions of his supervised release by:
- Controlling the new company even though he was prohibited from working in any capacity involving authority in financial matters.
- Telling his probation officer that that he was a mere laborer at the new company when in fact he controlled the company.
- Making false monthly reports to the probation office that he was not committing any federal crimes.
- Making threats of bodily harm to a woman who purchased a house from the new company.
Grissom commended the Internal Revenue Service – Criminal Investigation and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Florida Man Pleads Guilty to Structuring More Than $2.5 Million in Proceeds of Drug TraffickingRead the Press Release
FRESNO, Calif. — Chad Allen Riffle, 22, of Citrus Springs, Florida, pleaded guilty today to one count of conspiring to structure cash transactions, United States Attorney Benjamin B. Wagner announced.
According to the plea agreement and court documents, Riffle and seven co-defendants opened and maintained bank accounts for the purpose of funneling cash proceeds of drug trafficking from Florida and other states back to California. Riffle made the cash deposits in amounts of $10,000 or less to attempt to prevent Currency Transaction Reports from being filed by the banks on his cash deposits. Currency Transaction Reports are prepared by banks for any transaction involving more than $10,000 in cash. These reports are filed with the Department of Treasury and are made available to law enforcement.
Riffle also waived his interest in numerous assets seized by law enforcement, including a Land Rover, two Bentleys, two Mercedes Benzes, and a 30-foot motorboat.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney's Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), 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. Assistant U.S. Attorneys Grant B. Rabenn, Patrick R. Delahunty, and Jeffrey Spivak are prosecuting the case.
Riffle is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on March 9, 2015. The maximum statutory penalty for conspiracy to structure is five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.Florida Keys Resident Sentenced for Illegally Trafficking in Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracey Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service, Office of Law Enforcement, Miami Office, announced that Charles R. Jamison, 75, of Little Torch Key, Florida, was sentenced today in Key West for conspiring with others to commit certain offenses against the United States, that is conspiracy to transport, sell, receive, acquire, and purchase any fish and wildlife, that is juvenile bonnethead sharks (Sphyrna tiburo), with a fair market value in excess of $350.00, and attempt to do the same, knowing that said fish were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3372(a)(4)and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371.
United States District Court Judge Jose Martinez sentenced Jamison to a term of probation of 18 months, a criminal fine of $2,000, and imposed a special condition precluding Jamison from engaging in the marine wildlife industry during the period of probation. The Court also ordered the forfeiture of Jamison’s vessel, engine, trailer, tackle, and gear used in the commission of the Lacey Act violations.
According to the allegations of the Information filed against him, a Joint Factual Statement filed by the parties, and statements in court, Jamison was a resident of Monroe County, active for many years in the harvest and sale of bonnethead sharks (Sphyrna tiburo). At no time did Jamison, directly or as a third party contractor, possess or hold any State of Florida special activities license to collect, harvest, or transport any shark species, nor did he possess and hold a valid federal annual vessel permit for sharks issued pursuant to 50 C.F.R. 635.4 to harvest, collect, or take shark species as required by the laws of the State of Florida.
The Information further alleges that between approximately June 2012 and October 2012, at Monroe County, Jamison and others known to the U.S. Attorney’s Office, harvested bonnethead sharks from Florida state waters in the Florida Keys, thereafter negotiating the purchase, sale, transportation, and transfer of the bonnethead sharks in interstate commerce. The bonnethead sharks would then be shipped by individuals associated with Jamison in interstate commerce by a variety of means, including rental truck and as commercial air cargo.
The Information, in a series of “overt acts”, describes multiple instances when specific numbers of sharks were harvested, the transfer of sharks from Jamison to a commercial marine life facility on Big Pine Key, and specific payments received by Jamison for sharks sold in interstate commerce.
Mr. Ferrer commended the joint investigative efforts of the NOAA Office of Law Enforcement and the Fish & Wildlife Service, Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom, and noted the assistance of Refuge Officers from the Florida Keys National Wildlife Refuges and the U.S. Customs and Border Protection Air Marine Branch in the development of the case. This matter was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
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.
Final DBSI Executive SentencedRead the Press Release
BOISE – Gary Wayne Bringhurst, 47, of Highland, Utah, was sentenced today to five years of probation, a condition of which is 60 days of intermittent imprisonment, for conspiracy to commit securities fraud, U.S. Attorney Wendy J. Olson announced. Bringhurst is the former Chief Operating Officer of DBSI Housing, Inc. Chief United States District Judge B. Lynn Winmill also ordered Bringhurst to pay restitution in an amount to be determined. Bringhurst pleaded guilty on April 8, 2013.
According to the plea agreement, in 2007 and 2008, he conspired with Douglas Swenson, Mark Ellison, David Swenson, and Jeremy Swenson to mislead DBSI investors by: (i) converting for DBSI’s use Accountable Reserve funds belonging to investors in contravention of representations that they would be used for tenant improvements, leasing improvements, and capital improvements to the investors’ properties; (ii) misrepresenting DBSI Housing, Inc.’s financial strength by “netting” millions of dollars of uncollectible accounts receivables from technology company affiliates against accounts payable that were actually paid; (iii) failing to disclose to investors that the DBSI Master Lease portfolio of properties was losing millions of dollars and was not sustainable, in contravention of representations that the Master Lease portfolio was profitable; (iv) failing to disclose that DBSI was reliant on new investor funds to make Master Lease payments and to sustain its overall operations.
Bringhurst is the final DBSI defendant to be sentenced. Previously, in August of 2014, Douglas Swenson, CEO and President of DBSI, was sentenced to 240 months in prison; Mark Ellison, General Counsel of DBSI was sentenced to 60 months in prison; David Swenson, Assistant Secretary of DBSI, was sentenced to 36 months in prison; Jeremy Swenson, Assistant Secretary of DBSI, was sentenced to 36 months in prison. All four men were convicted on April 14, 2014, after trial before a federal jury, of 44 counts of securities fraud. Douglas Swenson was convicted of an additional 34 counts of wire fraud. Their cases are pending appeal.
This case was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation.
Federal and Local Law Enforcement Along with Michigan Department of Corrections Officials Meet with State Parolees to Improve Prisoner ReentryRead the Press Release
Officials encourage parolees to take advantage of services and make smart choices in leading law abiding lives or risk returning to prison
GRAND RAPIDS, MICHIGAN – In an effort to reduce the risk and rate of repeat offenses by recently released prisoners, U.S. Attorney for the Western District of Michigan Patrick Miles launched a new program called “Facing Choices” in collaboration with the Michigan Department of Corrections (MDOC) earlier this year. As part of the Facing Choices Program, state and federal law enforcement officials met today with state parolees in the Grand Rapids area. Representatives of service providers and programs available to parolees were also in attendance. This is the second in a series of such meetings to be held throughout Western Michigan.
The program is intended to help parolees make decisions that keep them on a law-abiding path and away from offending again. “The goal of the Facing Choices program is to reduce recidivism. That means less crime which means fewer victims as well as lessening the burden on law enforcement, the judicial and prison systems, and taxpayers,” U.S. Attorney Miles stated. “Nationally, approximately two-thirds of ex-offenders are rearrested within three years of release and almost half are re-incarcerated. In Michigan, the recidivism rate is 28 percent. According to one report I read, if 93 percent of prisoners in the U.S. did not commit another offense, American taxpayers would save between $17.3 billion and $1.1 trillion.”
U.S. Attorney Miles, Grand Rapids Police Chief David Rahinsky, other law enforcement representatives and MDOC officials reminded the parolees that law enforcement, prosecutors, and the MDOC are prepared to see them sent back to jail if they make poor choices and re-offend. But, they prefer seeing them become productive members of society and succeed. A parolee who re-offends is a high priority target for law enforcement. “But the point of this meeting is not just to remind you that we’ll hold you accountable if you do wrong,” U.S Attorney Miles explained. “We’re here to remind you that parole is an opportunity for you. Take advantage of the resources and the contacts that your parole status affords you.”MDOC Deputy Administrator Brian Shipman noted: “The mission of the Department of Corrections is to hold offenders accountable while promoting their success. The MDOC envisions the placement of an offender into the community as a carefully planned process. It is guided by a case plan which is meant to prepare him or her for a legally and socially acceptable adjustment to life in the community. Supported by experienced professionals in the public and private sectors, the offender will have the resources and guidance necessary to support successful community adjustment.”
Approximately 80 parolees attended the event. Following the talks from law enforcement and MDOC representatives, the parolees were directed to the attending service providers.
Representatives of the Kent County Sheriff’s Office, Kent County Prosecutor’s Office and Federal Bureau of Alcohol, Tobacco, Firearms and Explosives also spoke and shared in the message to the parolees. U.S. Attorney Miles praised the cooperation and collaboration that are critical to the Facing Choices program, “I am pleased that local, state, and federal law enforcement as well as County Prosecutors are working together to reduce recidivism,” he said. “I believe it is the mission of law enforcement and prosecutors to protect the public and that efforts to prevent repeat offenses are part of that duty.”
END
Federal Marijuana Case UpdateRead the Press Release
FRESNO, Calif. — Baltazar Rodriguez was sentenced to 46 months in prison and Jose Cisneros Garcia was sentenced to eight months in prison today for their involvement in separate large-scale marijuana cultivation operations, U.S. Attorney Benjamin B. Wagner announced.
Sentencing in Terra Bella Cultivation Operation (1:12-cr-318 LJO)
Following his guilty plea in October, Baltazar Rodriguez, 45, of Terra Bella, was sentenced to three years and 10 months in prison for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel in Terra Bella. According to court records, law enforcement officers seized 1,313 marijuana plants from 39.6 acres of farm land in Terra Bella where Rodriguez resided with his family. Inside Rodriguez’s residence, officers found a loaded, unregistered revolver in Baltazar Rodriguez’s bedroom, a digital scale commonly used to weigh controlled substances, and documents showing wire transfers of cash to Mexico.
Rodriguez; his son, Jose Guadalupe Rodriguez, 20; Carlos Adan Lupian-Lua, 26; Jose Guadalupe Zavala-Ramos, 34; Juan Carlos Perez-Gonzales, 45, all of Michoacàn, Mexico; and Hector Quintero-Mercado, 36, of Jalisco, Mexico; were originally charged with narcotics and immigration offenses and entered guilty pleas. Baltazar Rodriguez was the last of these defendants to be sentenced. A defendant in a related case, Martin Rojas-Cuamba, 46, of Escondido, also previously pleaded guilty in a separate case to smuggling bulk cash derived from the Terra Bella operation. Rojas-Cuamba’s sentencing is set for January 20, 2015. Upon completion of his prison sentence, Baltazar Rodriguez is subject to deportation to Mexico.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the sheriff’s offices of Tulare, Kern, San Luis Obispo, and Ventura Counties, and the Escondido Police Department.
Sentencing in Modesto Cultivation Operation (1:11-cr-339 AWI)
Jose Cisneros Garcia, (Cisneros), 55, of Modesto, was sentenced to eight months in prison for smuggling bulk cash derived from a marijuana cultivation operation on two residential parcels in Modesto that Cisneros owned. In sentencing Cisneros, Senior U.S. District Judge Anthony W. Ishii considered evidence that the cultivation operation involved 549 marijuana plants weighing over 3,000 pounds. Agents of the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto, conducted the investigation and seized not only marijuana but an assault weapon with 124 rounds of ammunition from an open detached garage at one of the two residential properties.
Assistant United States Attorney Karen Escobar is handling the above prosecutions.
Federal Law Enforcement Leaders Meet to Support the U.S. Attorney's Guardians ProjectRead the Press Release
GREAT FALLS – Dozens of senior federal law enforcement officials will meet in Great Falls this week to consult with the United States Attorney about his office’s anti-corruption strike-force known as the Guardians. The Guardians Project was launched in 2011 by U.S. Attorney Mike Cotter as a collaborative law enforcement effort to investigate and prosecute public corruption and fraud involving federal grants and contracts in the aftermath of the American Recovery and Reinvestment Act—also known as the Stimulus Bill—which provided for significant increases in federal funding in Indian Country.
The Guardians Project created a partnership that merged the extensive resources of the Federal Bureau of Investigation and the Internal Revenue Service with the expertise and experience of the various Offices of Inspector General, whose departments had provided significant grants and contracts to Indian tribes for the benefit of those communities. Agents working for the Inspectors General specialize in the investigation of fraud and corruption, and other forms of abuse of taxpayer monies, and possess specialized knowledge of federal programs. This week’s meeting of senior officials seeks to review the work of the Guardians and to coordinate with federal prosecutors about the future direction of the initiative.
Department of Justice Inspector General Michael Horowitz will attend the meeting along with senior national officials from Offices of Inspector General for the Departments of Interior, Health and Human Services, Education, Housing and Urban Development, and the Environmental Protection Agency. Guardians’ case agents and regional officials from those departments will also be in Great Falls to discuss the progress and future direction of the Guardians Project. Management officials from the FBI and IRS will join the Inspectors General at the meeting on Thursday and have informal meetings with the U.S. Attorney on Wednesday afternoon.
Those management officials attending the Great Falls meeting are:
Department of Justice – Office of the Inspector General
- Michael Horowitz, Inspector General
- Norman Lau, Special Agent in Charge - Denver Region
Department of Justice – Federal Bureau of Investigation
- Mary Rook, Special Agent in Charge - Salt Lake City Division
- Scott Vito, Assistant Special Agent in Charge
- Travis Burrows, Supervisory Senior Resident Agent
Department of Interior – Office of Inspector General
- Stephen Hardgrove, Chief of Staff
- Matthew Elliott, Deputy Assistant Inspector General for Investigations
- Don Crook, Special Agent in Charge - Denver Region
Department of Health and Human Services – Office of Inspector General
- Joanne Chiedi, Principal Deputy Inspector General
- Gary Cantrell, Deputy Inspector General - Investigations
- Gerry Roy, Special Agent in Charge - Kansas City Division
Department of Treasury – Internal Revenue Service
- Stephen Boyd, Special Agent in Charge - Denver Field Office
- Steven Osborne, Assistant Special Agent in Charge
Department of Education – Office of Inspector General
- Aaron Jordan, Acting Assistant Inspector general for Investigations
- Natalie Forbort, Special Agent in Charge - Long Beach Regional Office
Environmental Protection Agency – Office of Inspector General
- Patrick Sullivan, Assistant Inspector General
- Alan Mito, Special Agent in Charge - Denver Region 8
Department of Housing and Urban Development – Office of Inspector General
- David Barnes, Assistant Special Agent in Charge, Denver Field Office
Since the Guardians Project began obtaining indictments from the federal grand jury in late 2012, thirty two indictments and two informations have been filed charging 76 defendants and resulting in 35 felony convictions. The convictions are for conspiracy, bribery, fraud, embezzlement, extortion, obstruction of justice, money laundering and tax evasion.
Notable Guardians prosecutions are the convictions of six defendants associated with the Po’Ka Program for disadvantaged youth on the Blackfeet reservation, the prosecution and conviction of Tony Belcourt, Chief Executive Officer of the Chippewa Cree Construction Corporation, and former tribal Chairmen John Chance Houle and Bruce Sunchild of the Rocky Boy’s reservation. Eight members of the Dale Old Horn family were convicted in 2012 and 2013 for their role in a scheme to defraud the Crow Tribe using positions with the Crow Tribe Historic Preservation Office.
Federal Jury Finds Tampa Pill Mill Pharmacist GuiltyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Brian C. Weiler (56, Melbourne) guilty of conspiracy to distribute and dispense Oxycodone. Weiler, a pharmacist of 32 years, faces a maximum penalty of 20 years in federal prison and the forfeiture of his Florida Pharmacist License. His sentencing hearing is scheduled for March 13, 2015. Weiler was indicted in October 2011.
According to evidence presented at trial, from an unknown date through October 26, 2011, Weiler worked at two Tampa pharmacies, VIP Pharmacy on Martin Luther King, Jr. Boulevard; and New Tampa Pharmacy on Waters Avenue. During that time, he filled hundreds of prescriptions for very large doses of Oxycodone. The recipients included drug addicts and members of doctor shopping organizations who traveled from Ohio, Kentucky, and Tennessee. During the course of the conspiracy, Weiler dispensed more than 100,000 pills from the two pharmacies. Owners and operators of the VIP Pharmacy and New Tampa Pharmacy have previously been convicted of federal conspiracy charges.
This case was investigated by a joint task force, including the Drug Enforcement Administration, the Pasco County Sheriff's Office, and the Temple Terrace Police Department. It is being prosecuted by Assistant United States Attorney Maria Chapa Lopez.
Federal Contractors Eyak Technology LLC and Eyak Services LLC Resolve False Claims Act and Anti-Kickback Act AllegationsRead the Press Release
Alaska and Virginia-based technology contractors Eyak Technology LLC (EyakTek) and Eyak Services LLC (ESL) have agreed to pay $2.5 million and relinquish any rights to additional payments from the United States to resolve allegations that they submitted false claims to the U.S. Army Corps of Engineers, the Justice Department announced today. EyakTek and its sister company, ESL, provide healthcare, information technology, communications and infrastructure services to the U.S. government. Both are subsidiaries of The Eyak Corporation, headquartered in Anchorage, Alaska.
“Federal government contractors and their employees must adhere to high standards in their dealings with the government,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We will vigorously pursue those who pay kickbacks or otherwise engage in conduct that undermines the integrity of the contracting process.”
From 2005 to 2011, EyakTek held a $1 billion prime contract with the U.S. Army Corps of Engineers known as the Technology for Infrastructure, Geospatial, and Environmental Requirements contract.
The government alleged that, between Sept. 12, 2007, and Oct. 4, 2011, EyakTek’s then-director of contracts, Harold Babb, accepted kickbacks from several subcontractors of EyakTek and ESL in return for using his position to direct subcontracts to them. EyakTek and ESL allegedly submitted invoices to the Army Corps that included charges for work that was never performed by the subcontractors and lacked internal controls to detect the improper charges.
In March 2012, Babb pleaded guilty to bribery and kickback charges. The U.S. District Court for the District of Columbia sentenced him to serve 87 months in prison, to be followed by 36 months of supervised release and more than $9 million in restitution for his role in the kickback scheme.
The Army Corps stopped payments to EyakTek and ESL when the alleged scheme came to light. As part of the settlement, EyakTek and ESL will withdraw any appeals seeking the return of those funds, and relinquish all rights to any payments that have been withheld.
“This settlement demonstrates our willingness to use every tool of civil and criminal law in our arsenal to defend the American taxpayer from corruption in contracting,” said U.S. Attorney Ronald C. Machen Jr. for the District of Columbia. “The criminal investigation into this wide-ranging bribery and kickback scheme has now resulted in the convictions of 20 individuals, including EyakTek’s former contracts director. We have aggressively pursued asset forfeitures in the criminal proceedings to make the taxpayer whole and to deprive wrongdoers of their ill-gotten gains. This civil settlement sends a message to contractors who try to cheat in the competition for government funds.”
“This is yet another prime example of our commitment, along with other fellow law enforcement agencies to hold people and companies accountable for each and every detail of their contracts with the U.S. government and the U.S. Army,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “Our agents will continue to aggressively investigate and identify any potential abuses that arise in regard to the contracting process.”
“Manipulations of the Department of Defense procurement process will not be tolerated,” said Special Agent in Charge Robert Craig for the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “Today’s settlement demonstrates the commitment by DCIS and its partner agencies to hold accountable companies who attempt to bypass federal contracting laws.”
Today’s settlement is the result of a coordinated effort among the department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, the U.S. Army Corps of Engineers, DCIS, the Defense Contract Audit Agency, the Army’s Major Procurement Fraud Unit and the Small Business Administration.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Federal Contractors Eyak Technology LLC and Eyak Services LLC Resolve False Claims Act and Anti-Kickback Act AllegationsClaims Were Submitted to the U.S. Army Corps of EngineersRead the Press Release
WASHINGTON – Alaska and Virginia-based technology contractors Eyak Technology LLC (EyakTek) and Eyak Services LLC (ESL) have agreed to pay $2.5 million and relinquish any rights to additional payments from the United States to resolve allegations that they submitted false claims to the U.S. Army Corps of Engineers, the Justice Department announced today.
EyakTek and its sister company, ESL, provide healthcare, information technology, communications and infrastructure services to the U.S. government. Both are subsidiaries of The Eyak Corporation, headquartered in Anchorage, Alaska.
“This settlement demonstrates our willingness to use every tool of civil and criminal law in our arsenal to defend the American taxpayer from corruption in contracting,” said U.S. Attorney Ronald C. Machen Jr. “The criminal investigation into this wide-ranging bribery and kickback scheme has now resulted in the convictions of 20 individuals, including EyakTek’s former contracts director. We have aggressively pursued asset forfeitures in the criminal proceedings to make the taxpayer whole and to deprive wrongdoers of their ill-gotten gains. This civil settlement sends a message to contractors who try to cheat in the competition for government funds.”
“Federal government contractors and their employees must adhere to high standards in their dealings with the government,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We will vigorously pursue those who pay kickbacks or otherwise engage in conduct that undermines the integrity of the contracting process.”
From 2005 to 2011, EyakTek held a $1 billion prime contract with the U.S. Army Corps of Engineers known as the Technology for Infrastructure, Geospatial, and Environmental Requirements contract.
The government alleged that, between Sept. 12, 2007, and Oct. 4, 2011, EyakTek’s then-director of contracts, Harold Babb, accepted kickbacks from several subcontractors of EyakTek and ESL in return for using his position to direct subcontracts to them. EyakTek and ESL allegedly submitted invoices to the Army Corps that included charges for work that was never performed by the subcontractors and lacked internal controls to detect the improper charges.
In March 2012, Babb pled guilty in the U.S. District Court for the District of Columbia to bribery and kickback charges. He later was sentenced by the Honorable Emmet G. Sullivan to 87 months in prison, to be followed by 36 months of supervised release and more than $9 million in restitution for his role in the kickback scheme.
The Army Corps stopped payments to EyakTek and ESL when the alleged scheme came to light. As part of the settlement, EyakTek and ESL will withdraw any appeals seeking the return of those funds, and relinquish all rights to any payments that have been withheld.
“This is yet another prime example of our commitment, along with other fellow law enforcement agencies to hold people and companies accountable for each and every detail of their contracts with the U.S. government and the U.S. Army,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “Our agents will continue to aggressively investigate and identify any potential abuses that arise in regard to the contracting process.”
“Manipulations of the Department of Defense procurement process will not be tolerated,” said Special Agent in Charge Robert Craig for the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “Today’s settlement demonstrates the commitment by DCIS and its partner agencies to hold accountable companies who attempt to bypass federal contracting laws.”
Today’s settlement is the result of a coordinated effort among the department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, the U.S. Army Corps of Engineers, DCIS, the Defense Contract Audit Agency, the Army’s Major Procurement Fraud Unit and the Small Business Administration.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
14-276Essex County, New Jersey, Man Pleads Guilty in Multimillion-Dollar Real Estate Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man today admitted his role in a real estate investment scheme that bilked victims out of more than $5 million, U.S. Attorney Paul J. Fishman announced today.
Abbe Edelman, 50, of Livingston, New Jersey, pleaded guilty before U.S. District Judge Susan Wigenton in Newark federal court to an information charging him with wire fraud.
According to documents filed in this case and statements made in court:
Beginning in 2004, Edelman operated through several companies alleged to be in the business of buying and selling real estate. He allegedly engaged in a real estate investment fraud in which he obtained millions of dollars from victims who invested in his scheme. Edelman told investors that he had significant past real estate experience, including a purported history of successfully buying and selling numerous bank-foreclosed properties, and an MBA degree from NYU in real estate finance. Edelman claimed that he had long-standing relationships with banks that provided him with unique access to purchase foreclosed properties below market prices and, in fact, already had negotiated with the banks to purchase certain properties at agreed-upon prices that would guarantee an easy resale and profit for investors.
Edelman promised investors that any investment would be used solely for the purchase and renovation of specific investment properties in, among other places, New York, New Jersey, California, and Florida. Edelman represented to his investors that he could obtain extraordinary returns – as much as 25 percent – in as little as eight to 12 months. Edelman allegedly told some victims he had received from other investors, including professional athletes and celebrities, the majority of the capital needed to purchase the investment properties. He also said he provided cash deposits to the financial institutions to secure the right to purchase the investment properties and invested his own money in the deals.
In reality, neither Edelman nor any of his real estate companies had a history of purchasing any bank-foreclosed properties. Edelman also did not possess even an undergraduate degree. He did not have any deals lined up involving any investment properties, did not have his own money invested in any such deals, and did not have any money from celebrity investors. Edelman induced investors to give him $4 million and used little, if any, of it to fund any real estate acquisitions or renovations, instead diverting the funds for his own use.
He allegedly used the funds for his home mortgage and day-to-day living expenses, such as restaurants, telephone, and gas bills, purchased merchandise from high-end retailers, such as Gucci and Neiman Marcus, repaid existing investors in Ponzi-scheme fashion and paid his legal expenses in connection with victims seeking repayment of their investment.
When investors later inquired about the status of their investments, Edelman offered additional misrepresentations, including emails sent from a fake email account he had created, falsely assuring investors that he and his company had closed on the foreclosed properties, sometimes telling them buyers for the properties already had been identified.
In some cases, to allow the scheme to continue undetected, Edelman made “lulling” payments to investors, ranging from $100 to tens of thousands of dollars, to permit the scheme to continue. When payments were made to any investors, Edelman generally represented that the money was from the sale of investment properties, when, in fact, it came from a new investor.
The wire fraud count to which he pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 23, 2015.
U.S. Attorney Fishman credited criminal investigators with the U.S. Attorney’s Office and postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s arrest.
Today’s plea is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky and Lakshmi Srinivasan Herman of the Economic Crimes Unit, and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
14-441Defense Counsel: William Rush Esq., Wayne, N.J.
Edelman, Abbe Information
Erie Man Sentenced to More Than 8 Years in Prison for Unlawfully Possessing A Firearm as A Convicted FelonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 43-year-old Erie, Pennsylvania resident was sentenced today in Scranton by Senior U.S. District Court Judge James M. Munley to serve 100 months in federal prison for unlawfully possessing a firearm and ammunition as a convicted felon.
According to United States Attorney Peter Smith, the defendant, James Presley, previously admitted to possessing a 9mm handgun and ammunition while driving a vehicle on Interstate 80 near Hazleton on May 15, 2014. At the time he possessed the firearm and ammunition, Presley had prior felony convictions, including a conviction for murder in 1992 in Philadelphia. Presley served 13 years in prison for the murder.
Presley was charged in an Information filed by the United States Attorney on July 15, 2014, as a result of an investigation by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pennsylvania State Police.
Judge Munley also ordered Presley to spend two years on supervised release following his prison sentence, and to pay a $100 special assessment.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Eastern District of New York U.S. Attorney’s Office Joins in Collections of over $5.3 Billion in Civil and Criminal Actions and Asset Forfeiture in Fiscal Year 2014Read the Press Release
U.S. Attorney Loretta E. Lynch announced today that the Eastern District of New York, working collaboratively with other offices as well as on its own, collected over $5.3 billion in criminal and civil actions in Fiscal Year 2014. Of this total amount, $5,311,230,858.40 resulted from cases handled in conjunction with other U.S. Attorneys’ Offices and components of the Department of Justice. Collections from criminal and civil actions filed solely by the Eastern District of New York totaled $42,505,272.81.
In addition, working with partner agencies and divisions within the Department of Justice, the Eastern District forfeited another $39,521,538.00 in assets tainted by crime. Of this amount, $28,475,720 was forfeited in criminal cases and matters, and $11,045,818 was forfeited in civil cases and matters. Forfeited assets are deposited into the Department of Justice Assets Forfeiture and the Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. The combined joint collections and asset forfeiture recoveries for the Eastern District total over $5.35 billion, which exceeds the $2.91 billion operating budget for U.S. Attorney’s Office nationwide.
Attorney General Eric Holder announced on November 19, 2014, that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ Offices and the main litigating divisions in that same period.
“The Eastern District of New York, in partnership with its colleagues in offices throughout the nation, is privileged to be part of a sweeping effort to address the harms caused by the financial crisis of 2008 and a multi-billion dollar resolution that includes provisions for relief to struggling and underwater homeowners as they seek to rebuild their lives and communities,” stated U.S. Attorney Lynch. “We stand firm in our ongoing collection and asset forfeiture efforts to protecting the public and recovering funds for the federal treasury and victims of crime and financial frauds.”
FY 2014 Collection Highlights
Financial Fraud
This past year, as part of President Obama’s Financial Fraud Residential Mortgage Backed Securities (RMBS) Working Group, and working with colleagues in the District of Colorado, the Eastern District of New York collected $ 4.2 billion in civil penalties from Citigroup, Inc., the largest penalty ever under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), to resolve claims related to Citigroup’s conduct in the packaging, securitization, marketing, sale and issuance of RMBS prior to January 2009. Citigroup acknowledged it made serious misrepresentations to the public, including the investing public, about the mortgage loans it securitized in RMBS. In addition to paying the historic penalty of $4.2 billion, Citigroup agreed to pay out $2.5 billion to provide relief to consumers in the form of loan modifications for underwater homeowners, refinancing for distressed borrowers, down payment and closing cost assistance to homebuyers, donations to organizations assisting communities in redevelopment and affordable rental housing for low-income families in high-cost areas.
Health Care Fraud
Working with the Department’s Civil Frauds Branch, the Eastern District of New York recovered $3,510,245.94 to resolve claims under the federal False Claims Act and New York False Claims Act against Enzo Biochem., Inc., and one of its subsidiaries, Enzo Clinical Laboratories. The settlement resolves allegations that Enzo was falsifying information in the claim submission process in order to inflate and secure reimbursements from the Centers for Medicare & Medicaid Services (“CMS”).
Collections Overview
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
In the Eastern District of New York as well as nationwide, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Eagle Butte Man Sentenced for Assault by Striking, Beating, and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on December 8, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Diego Ramon Lara, age 22, was sentenced to 1 year in custody, 1 year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
Lara was indicted for Assault with a Dangerous Weapon on August 19, 2014. He pled guilty to Assault by Striking, Beating, and Wounding on November 13, 2014.
The conviction arose from an incident on May 24, 2014, when Lara got into a verbal argument with attendees at a graduation party in Cherry Creek. Lara left the party, but returned to the area later that evening in his pickup. He stopped at an intersection in front of the party attendees, and after exchanging words and gestures with the victim, he put his pickup in gear, hit the accelerator and struck the victim, injuring his leg and ankle.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Lara was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Drug Runner Sentenced to 18 YearsRead the Press Release
TOPEKA, KAN. – A driver stopped in western Kansas with more than five pounds of methamphetamine was sentenced Monday to 18 years in federal prison.
Javier Vega, 38, Los Angeles, Calif., pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, he admitted that on April 27, 2013, he was stopped by the Kansas Highway Patrol while driving a 2005 Jeep Grand Cherokee on I-70 in Russell County, Kan. Troopers found more than five kilograms of methamphetamine hidden in a false battery in the engine compartment.
During a jury trial for Vega’s co-defendants, prosecutors presented evidence that after Vega was arrested he made phone calls from jail in which he gave another conspirator detailed instructions on how to transport methamphetamine from Los Angeles to Kansas City without getting caught.
Co-defendants include:
Karmin Salazar, who was sentenced to 10 years in federal prison.
Raymond Alcorta, who is set for sentencing Feb. 9.
Adrienne Lopez, who is set for sentencing Feb. 9.
Angela Marie Lopez, who is set for sentencing Feb. 9.
Grissom commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Tony Mattivi for their work on the case.
Drug Dealer Convicted AgainRead the Press Release
PITTSBURGH - A convicted drug dealer pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Frank Louis Ober, III, 34, pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on or about Sept. 9, 2014, Ober possessed with the intent to distribute approximately 14 pounds of marijuana, a Schedule I controlled substance. Ober had been released from federal prison shortly before his new arrest as a result of previously possessing more than two kilograms of cocaine with the intent to distribute it.
Judge Conti placed Ober on Electronic Home Monitoring (house arrest) pending the sentencing scheduled for July 31, 2015, at 11 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Munhall Police Department conducted the investigation that led to the prosecution of Frank Louis Ober, III.
District Man Found Guilty of 1997 Murder of Woman in Northwest WashingtonDNA Linked Defendant to CrimeRead the Press Release
WASHINGTON – John F. General, 50, formerly of Washington, D.C., was found guilty by a jury today of second-degree murder for the 1997 murder of a woman in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for Feb. 27, 2015.
According to the government’s evidence, on the morning of Nov. 26, 1997, the partially clothed body of the victim, Deborah McKinney, was discovered in a stairwell of an apartment building in the 900 block of M Street NW. The District of Columbia’s Office of the Chief Medical Examiner determined that Ms. McKinney, 38, was killed by means of asphyxiation.
Although there were no eyewitnesses to this murder, the government’s evidence showed that Ms. McKinney encountered the defendant and that a violent encounter ensued.
General was identified as a suspect in January 2010 through the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. General’s DNA was in the system as a result of an earlier conviction in a case in the District of Columbia. DNA testing confirmed that his blood and semen were on the scene of Ms. McKinney’s attack.
He was arrested in May of 2010 and is in custody pending his sentencing.
This case is among a series of successful prosecutions of older homicide cases following investigations by the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office. Working with the MPD and other law enforcement partners, the U.S. Attorney’s Office has a specially designated Cold Case Unit that prosecutes these older cases. All told, more than 20 defendants have been convicted of older homicides since 2009.
In announcing the verdict, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the District of Columbia’s Office of the Chief Medical Examiner and the District of Columbia Department of Forensic Services. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Amanda Haines; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Litigation Technology Specialist Leif Hickling; Paralegal Specialists Sandra Lane, Mia Beamon, and Paralegal Specialists Jason Manuel and Benjamin Kagan-Guthrie, and Victim/Witness Security Specialists David Foster and Katina Adams.
Finally, he commended the work of Assistant U.S. Attorneys Sharon Donovan and Adrienne Dedjinou, who prosecuted the case.
14-277Czar Entertainment Founder James Rosemond Convicted in Manhattan Federal Court for Ordering the Murder of Lowell FletcherRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAMES ROSEMOND, a/k/a “Jimmy the Henchman,” was found guilty on December 11 of murder-for-hire, conspiracy to murder-for-hire, and firearms offenses for ordering the murder of Lowell Fletcher. The jury convicted ROSEMOND on all counts in the controlling indictment following a two-week re-trial before U.S. District Judge Colleen McMahon.
According to court papers and the evidence admitted at trial:
JAMES ROSEMOND was the founder of Czar Entertainment, a rap music management company, and also the head of a large-scale cocaine trafficking organization. In 2007, members and associates of a rival rap group known as “G-Unit” – including Marvin Bernard, a/k/a “Tony Yayo,” and his associate Lowell Fletcher, a/k/a “Lodi Mac” – assaulted ROSEMOND’s son. ROSEMOND’s son was not seriously injured in the assault, and Fletcher ended up serving prison time for his involvement in the assault. Nevertheless, ROSEMOND recruited a crew of men to murder Fletcher upon his release from prison by promising the men at least $30,000 in payment for killing Fletcher. ROSEMOND had developed criminal relationships with these men through his involvement in the cocaine trade. At ROSEMOND’s direction, members of the murder crew selected a dark and quiet location for the murder in the vicinity of Mount Eden and Jerome Avenues in the Bronx, and lured Fletcher to that spot. When Fletcher arrived there in the evening on September 27, 2009, a member of the murder crew stepped out of the shadows and fired five bullets into Fletcher’s back using a .22 caliber handgun with a silencer. Fletcher died later that night. On October 2, 2009, ROSEMOND had a trusted employee of his cocaine organization provide a kilogram of cocaine – worth about $30,000 in street value – as payment for the murder.
At the conclusion of ROSEMOND’s first trial earlier in 2014, a mistrial was declared because the jury was not able to reach a unanimous verdict on the counts against ROSEMOND and a co-defendant relating to the Fletcher murder. ROSEMOND’s co-defendant in that trial, Rodney Johnson, was convicted of narcotics and firearms counts, and is scheduled to be sentenced in January 2015 before Judge McMahon. ROSEMOND was retried on the murder-for-hire, conspiracy to murder-for-hire, and firearms offenses, resulting in yesterday’s conviction on all the counts against ROSEMOND arising from the Fletcher murder.
For his role in ordering, planning, and paying for the murder of Lowell Fletcher, ROSEMOND was convicted of one count of substantive murder-for-hire, one count of conspiracy to murder-for-hire, and two firearms counts. ROSEMOND faces a mandatory minimum sentence of life in prison. ROSEMOND is scheduled to be sentenced in March 2015 before Judge McMahon.
U.S. Attorney Bharara thanked and praised the U.S. Drug Enforcement Administration, the New York City Police Department, the U.S. Department of Homeland Security, and the U.S. Marshals Service for their outstanding work in this investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. The trial was conducted by Assistant U.S. Attorneys Samson Enzer and Ryan P. Poscablo.
Costa Rican Woman Sentenced to Prison for Role in Human Smuggling ConspiracyRead the Press Release
A citizen and resident of Costa Rica was sentenced Friday to 30 months in prison for her leadership role in a conspiracy to smuggle undocumented migrants to the United States.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE- HSI) Washington, D.C., Field Office made the announcement. U.S. District Judge Ursula M. Ungaro of the Southern District of Florida imposed the sentence.
Mercedes Morera Roche, 49, of Costa Rica, was extradited to the United States from Panama on Aug. 21, 2014, to face human smuggling charges. Roche pleaded guilty on Oct. 6, 2014, to conspiracy to smuggle more than 25 undocumented migrants from Cuba to the United States.
According to her plea agreement, Roche admitted that between 2004 and 2011, she was an organizer of a human smuggling network that provided instructions, fraudulent identity and travel documents, escorts, transport, safe house locations, and other assistance to facilitate the illicit travel of undocumented migrants to the United States. Roche admitted that in some cases, she provided fraudulent passports so that undocumented migrants could fly to the United States with the help of corrupt foreign airline and immigration officials. Roche directed the migrants to destroy the fraudulent documents during the flights to the United States, and instructed the migrants about what to do and say to U.S. immigration authorities upon landing. In other cases, Roche coordinated the smuggling of undocumented migrants over land routes through Latin America and Mexico into the United States. Roche solicited payments of up to $10,000 for each undocumented migrant.
The investigation was pursued under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates with and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The investigation was conducted by ICE- HSI’s Washington, D.C. Field Office with support from the Human Smuggling Trafficking Center and U.S. Customs and Border Protection’s National Targeting Center. Critical assistance was also provided by HSI’s Miami Field Office and the ICE Attaché Office in Panama. Extradition assistance was provided by the Criminal Division’s Office of International Affairs, INTERPOL Washington and the United States Marshals Service. The Justice Department is grateful for the significant assistance provided by the Panamanian Ministry of Foreign Affairs. This case was prosecuted by Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Robert Emery of the Southern District of Florida.
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.
Corporation Sentenced for Safety Violations That Caused Employee DeathRead the Press Release
MISSOULA – A Montana corporation specializing in residential and commercial asphalt paving services was sentenced today for violating of a safety standard that caused the death of one of its employees. MR Asphalt and its President, Martin Romano, were sentenced to three years’ probation and $7,500 in fines. In addition, $12,500 was ordered to the victim’s spouse.
Assistant U.S. Attorney Kris McLean told the court that on September 13, 2012, the MR Asphalt employee was checking the asphalt tank located thirteen (13) feet from ground level. Another employee found the victim lying face down on the ground next to the asphalt tank. Police reports and medical records confirm the victim’s death was consistent with a fall from the asphalt tank. The investigation specifically noted the lack of guardrails or handrails on the asphalt tank, as well as the absence of any type of personal fall protection on the victim’s body.
After the incident, Martin Romano met with MR Asphalt employees and asked them to falsify safety records, specifically to back date records of safety meetings that did not occur. In addition, a safety harness and lanyard were placed in the control shack after the incident, and Romano told others that the equipment was always present at the worksite. The investigation revealed that no one had ever been trained or certified in fall protection or fall arrest systems, or that safety equipment was ever available prior to the fatal fall.
“Although nothing will restore the victim to family and loved ones, prosecution of the case by the U.S. Attorney’s Office, and the defendant's plea of guilty, will send a clear message that no employee’s life should be sacrificed for a day’s wages,” said Gregory Baxter, Regional Administrator for OSHA’s Region VIII Office in Denver.
The case was investigated by the Occupational Safety and Health Administration.
Convicted Ponzi Schemer Eliyahu Weinstein Sentenced to Additional 24 Months in Prison on New Fraud and Money Laundering ChargesRead the Press Release
Already Serving 22 Years for Previous Fraud Scheme
TRENTON, N.J. – A man already serving 22 years in prison for a real estate Ponzi scheme was sentenced today to an additional 24 months in prison for defrauding investors in connection with the Facebook IPO and several additional real estate deals and laundering the proceeds of the scheme, U.S. Attorney Paul J. Fishman announced.
Eliyahu Weinstein, 39, of Lakewood, New Jersey, was previously sentenced to 22 years in prison for running a real estate investment fraud scheme that caused $200 million in losses. Today, U.S. District Judge Joel A. Pisano sentenced Weinstein to 135 months in prison, 111 months of which will be served concurrently with his previous sentence and 24 months to be served consecutively. His total sentence for the two schemes is 24 years in prison. Weinstein previously pleaded guilty before Judge Pisano to an indictment charging him with one count of conspiracy to commit wire fraud, one count of committing wire fraud while on pretrial release, and one count of money laundering.
According to documents filed in this case and statements made in court:
In February 2012, Weinstein and his fellow conspirators offered a pair of investors (referred to in the indictment as the “Facebook victims”) the opportunity to purchase large blocks of Facebook shares prior to the company’s initial public offering, or IPO, in May 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get and were expected to increase in value at the time of the IPO. Weinstein and his conspirators did not actually have access to the shares.
Based on misrepresentations by Weinstein and his conspirators, the Facebook victims wired millions of dollars between February and March of 2012 to an account that Weinstein and a conspirator controlled. Weinstein and another conspirator provided investors with false documents showing companies owned by various conspirators held assets, which would secure the Facebook victims’ investment.
The conspirators did not use any of the Facebook victims’ money to purchase Facebook shares, instead misappropriating it for their own use. Weinstein used some of the money to pay lawyers and experts representing him in his earlier – and at that time, still pending – criminal case and in related civil matters. Weinstein and his conspirators also used the Facebook victims’ money to make investments in businesses unrelated to Facebook and to make loans for their own benefit.
Around the same time, Weinstein and his conspirators also persuaded the Facebook victims to invest in the purported purchase of an apartment complex, “Belle Glade Gardens,” in Florida. They told the Facebook victims that Weinstein had the opportunity to purchase Belle Glade Gardens at a discounted price and immediately flip it at a substantial profit. Weinstein and his conspirators further told the Facebook victims that Weinstein had already placed $2.5 million in the trust account of a Miami law firm for the transaction; that if the Facebook victims contributed another $2.5 million toward the transaction, those funds would remain in escrow at the Miami law firm until the deal closed; and that the Facebook victims would be repaid within 60 days. The Facebook victims wired $2.83 million to the Miami law firm in order to complete the Belle Glades Gardens transaction. Weinstein and his conspirators did not use the money to purchase Belle Glades Gardens. Instead, they redirected the money from the law firm to accounts that they controlled, returned $1.8 million to the Facebook victims as a purported return on their Facebook investment, and used the remaining money for their own purposes.
In July 2012, Weinstein approached another group of investor victims (referred to in the indictment as the “Florida condominium victims”) and told them he had the opportunity to purchase the notes on seven condominiums in Florida at a discounted price of $3 million. Weinstein and his conspirators falsely represented that they had already paid $1.5 million toward the deal, and that they needed only $1.5 million to complete the transaction. They claimed that the properties had an annual rental income of approximately $780,000 and provided to the Florida condominium victims fraudulent documentation purporting to verify this fact. The victims transferred $1.5 million to Weinstein and his conspirators between August 2012 and December 2012. Weinstein did not use this money to purchase the notes on the Florida condominiums – many of which he himself had previously owned and lost to foreclosure. Instead, Weinstein and his conspirators converted the money to their own use.
Throughout the scheme, Weinstein was already under indictment and on pretrial release, and was prohibited from engaging in any monetary transaction for more than $1,000 without the approval of court-appointed special counsel. Weinstein pleaded guilty on Jan. 3, 2013, before Judge Pisano to two counts of that indictment, admitting he ran a Ponzi-style real estate investment fraud scheme that caused $200 million in losses and then laundered the proceeds of the scheme. Judge Pisano sentenced Weinstein on Feb. 25, 2014, to 264 months in prison and ordered him to pay more than $200 million in restitution and forfeiture to the victims of his scheme.
In addition to the prison term, Judge Pisano today ordered Weinstein to pay $6.2 million restitution and forfeiture.
Two co-defendants, Alex Schleider, 49, of Lakewood, and Aaron Glucksman, 41, of Brooklyn, New York, have already pleaded guilty to charges related to the scheme. On Dec.8, 2014, Judge Pisano sentenced Schleider to serve on year and one day in prison, three years of supervised release, and ordered him to pay restitution of $613,200 and forfeiture of $363,200. Judge Pisano sentenced Glucksman on May 5, 2014, to 52 months in prison, three years of supervised release, and ordered him to forfeit $1.2 million. Judge Pisano ordered Glucksman’s sentence to run partially concurrently with a 36-month sentence recently imposed by U.S. District Judge Raymond J. Dearie of the Eastern District of New York in an unrelated case.
Charges against another conspirator, Aaron Muschel, 64, of Brooklyn, NY, who was charged in the criminal complaint filed against Weinstein and Schleider in May 2013, remain pending. The charges against him are merely accusations and he is presumed innocent until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Aaron T. Ford in Newark, for the investigation leading to today’s sentencing. He also thanked special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for their role in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig; Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit; Assistant U.S. Attorneys Zach Intrater of the Economic Crimes Unit; and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
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Defense counsel: Eric Creizman Esq., New YorkChief Financial Officer of Pain Management Clinics Admits to Receiving $459,245 in KickbacksRead the Press Release
Negotiated a Deal to Submit Patients’ Urine Samples to a Testing Lab That Paid Over $1.3 Million in Kickbacks to His Employer
Baltimore, Maryland – Vic Wadhwa, age 38, of Frederick, Maryland, pleaded guilty today to soliciting and receiving kickbacks in return for referrals at lab tests from a medical practice.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to his plea agreement, Wadhwa was the chief financial officer of a group of pain management clinics located in central Maryland. The group’s clinics required its patients who have been prescribed pain relief medications to submit urine samples for testing in order to monitor the levels of pain medication or other narcotics in their bodies. The group’s clinics generated hundreds of urine samples each month, which were sent to an outside lab for testing.
In March 2011, Wadhwa and others at the group’s clinics decided to shift the group’s testing business to a laboratory testing company in New Jersey, after learning that the lab testing company was willing to pay a kickback for every urine sample that the group of clinics submitted for testing. Wadhwa negotiated the arrangement, whereby the lab company promised to pay kickbacks equal to half of its profit, after accounting for expenses, for every urine sample that the group of clinics submitted for testing.
The group of clinics submitted urine samples for testing to the lab company from approximately March 2011 to August 2012. During this time, the lab company received total reimbursement payments of $4,033.846.70 from private insurers, Medicare and the Federal Employees Health Benefit Program for lab tests ordered by the group of clinics.
Between the time the kickback payments commenced in July 2011 and the end of the scheme in July 2012, the lab company paid the group of clinics a total of $1,376,540.85 in kickbacks. Out of this amount, Wadhwa received approximately $459,245.
The investigation is ongoing.
Wadhwa faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge Marvin J. Garbis has scheduled sentencing for April 2, 2015 at 2:30 p.m.
United States Attorney Rod J. Rosenstein commended the FBI and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jefferson M. Gray and Sean R. Delaney, who are prosecuting the case.
Charles Town, WV Man Convicted of Heroin TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Steven Woodward, 34, of Charles Town, West Virginia, was convicted on heroin trafficking charges, United States Attorney William J. Ihlenfeld, II, announced today.
Woodward was discovered in possession of heroin in May 2014 during an investigation by the Jefferson County Sheriff’s Office and the U.S. Drug Enforcement Administration. He pled guilty to one count of “Possession with Intent to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000.00.
In another matter, Larry Franklin Gregory, 39, of Delray, West Virginia, pled guilty to one count of “Distribution of Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. Gregory was discovered selling methamphetamine in January 2013 during an investigation by the Potomac Highlands Drug and Violent Crime Task Force.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Paul Camilletti is prosecuting Woodward and Assistant United States Attorney Jarod Douglas is prosecuting Gregory on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Canadian Man Pleads Guilty to Conspiracy to Distribute Approximately 20 Kilograms of CocaineRead the Press Release
FRESNO, Calif. —Donald Lancer, 47, of Saskatchewan, Canada, pleaded guilty today to conspiracy to distribute and possess to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 17, 2013, Heather Lynn Necheff, 47, of Regina, Saskatchewan Canada, was stopped for a traffic violation by a California Highway Patrol officer in Kern County in the Buttonwillow area. While conducting a search of her vehicle, officers found approximately 20 kilograms of cocaine wrapped in duct taped packages inside a suitcase. Necheff said she was transporting the suitcase from Los Angeles to Seattle to be given to Donald Lancer. Necheff agreed to assist law enforcement by continuing on to Seattle to deliver the suitcase. To eliminate the risk of losing the suspected drugs, agents replaced them with 20 kilograms of “sham” cocaine. On December 19, 2013, under agents’ supervision, Necheff delivered the suitcase to Lancer. Lancer was subsequently stopped while driving a semi-truck in Seattle, Washington. Officers found the suitcase delivered by Necheff. Lancer admitted that he believed it contained narcotics and that he received it from another person who transported it to him from Southern California.
According to his plea agreement, Lancer also admitted that he had earlier agreed with an individual in Canada to become a commercial truck driver and to comingle narcotics within legitimate commercial loads. Lancer stated that on this particular trip he was paid by individual in Canada to pick up narcotics in Seattle and drive them into Canada. Lancer said this was the third time that he was to transport what he knew to be narcotics into Canada from the United States and that although he never opened the items that he commingled with his legitimate loads, he knew the packages contained narcotics.
This case is the product of an investigation by the Drug Enforcement Administration and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Necheff pleaded guilty on April 29, 2014, to the conspiracy and on July 21, 2014, was sentenced to 13 months in prison.
Lancer is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on March 2, 2015. Lancer faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
- CBP Officer Arrested for Allowing Drugs Through Port of Entry
Burlington, Vermont’s Redstone, Owner of Chace Mill, Takes Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that Redstone of Burlington, Vermont, has completed specific modifications at the Chace Mill, also in Burlington, Vermont, to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following receipt of a complaint regarding the accessibility of the Chace Mill.
An onsite survey of the Chace Mill revealed ADA compliance issues related to the building’s entrances, parking lot, and internal ramps. Redstone, the owner of the Chace Mill has remedied these issues by reconfiguring the parking areas, installing automatic door openers and ADA compliant ramps. Redstone is to be commended for its cooperation with the Office of the United States Attorney for the District of Vermont.
Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.
Buffalo Woman Pleads Guilty to Drug Conspiracy ChargeRead 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 Fannie Long, 53, of Buffalo, NY, pleaded guilty to conspiracy to distribute fentanyl before Chief U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between January 2009 and September 26, 2013, the defendant conspired with co-defendant Sherylrica Quisenberry to distribute controlled substances. Long obtained fentanyl prescriptions from medical professionals which were then filled and sold by the defendant. In addition, Long obtained fraudulent prescriptions which were not written by medical professionals. The prescriptions were made out in the names of individuals engaged by the defendant. These individuals would fill the fraudulent prescriptions and then turn the controlled substances over to Long for further distribution. The controlled substances included Lortab, Xanax and Soma.
Similar charges are pending against Sherylrica Quisenberry. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office.
Sentencing is scheduled for April 15, 2015 at 9:00 a.m. before Judge Skretny.
Buffalo Man Pleads Guilty to Marijuana ChargeRead 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 Charles Palmer, Jr. 31, of Buffalo, NY, pleaded guilty to possession with intent to distribute, and to distribute, marijuana before Chief U. S. District Judge William M. Skretny. The charge carries a maximum penalty of five years in prison.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between January 2011 and June 2011, the defendant conspired with his father, co-defendant Charles Palmer, Sr., to possess and distribute marijuana. The investigation utilized a court authorized wiretap which included multiple phone calls regarding the distribution of marijuana between Charles Palmer, Jr. and Charles Palmer, Sr.
The defendant was arrested on June 17, 2011. Law enforcement officers seized from his person quantities of marijuana and cocaine.
Charges against Charles Palmer, Sr. are pending. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by the Federal Bureau of Investigation.
Sentencing is scheduled for April 8, 2015 at 9:00 a.m. before Judge Skretny.
Bradenton Man Sentenced to 15 Years for Attempting to Meet A Minor for SexRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth Kovachevich has sentenced Erasmo Aguinaga (36, Bradenton) to 15 years in federal prison for attempted child enticement. A federal jury found him guilty on September 19, 2014.
According to evidence presented during the trial, on March 23, 2014, Aguinaga communicated online with an individual he believed was a 14-year-old girl, but who was actually an undercover agent. The agent was conducting an undercover investigation to identify and apprehend individuals who were attempting to sexually exploit children over the Internet. After having chatted online with the “child” for less than an hour, Aguinaga inquired about the “child’s” sexual history and used graphic and explicit language to ask if the “child” would engage in sexual acts with him. Later that same day, Aguinaga asked for the “child’s” address and drove to her purported home, where he was immediately arrested.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Boy Scout Leader Charged with Child PornographyRead the Press Release
BOSTON – A Boy Scout leader and YMCA employee was charged today with possessing child pornography.
Patrick Lynch, 22, of Peabody, was arrested on Dec. 12, 2014, and made his initial appearance today in U.S. District Court in Boston on charges that he received and possessed child pornography.
The criminal complaint alleges that Lynch received emails containing child pornography beginning in May 2013. An investigation by Homeland Security Investigations revealed that Lynch was affiliated with the Boy Scouts, including a position as a Scout leader at the Philmont Training Center for the Boy Scouts of America. Lynch had also been employed at the Greater Beverly YMCA and had recently begun employment with Beanstalk Adventure Ropes Course in Reading.
The charge of receipt of child pornography provides for a mandatory minimum term of five years and no greater than 20 years in prison. The charge of possession of child pornography provides for no greater than 20 years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by the Massachusetts State Police and the Peabody Police Department. The case was prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Boston Man Sentenced to Eight Years in PrisonRead the Press Release
BOSTON – A Boston man was sentenced today in connection with the sex trafficking of a 15-year-old girl.
Mark Pinnock, 23, was sentenced by U.S. District Judge Nathaniel M. Gorton to eight years in prison and five years of supervised release. In August 2014, Pinnock pleaded guilty to recruiting and transporting a minor to engage in prostitution. Two co-defendants, Justin Richardson and Martin Pinkney, both of Baltimore, will be sentenced on Dec.19 and 22, respectively.
In late December 2013, officers responded to an emergency call from a Cambridge hotel, where they found the 15-year old victim and Pinnock. The minor stated that Richardson and Pinkney had arranged for her to travel by bus from Baltimore to Boston. Pictures were taken of her in both Baltimore and Boston and used to post ads soliciting prostitution customers on the websites backpage.com and Craigslist. While in Boston, the minor victim engaged in sex for a fee at the direction of Pinnock at two local hotels.United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Cambridge Police Commissioner Robert C. Haas, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Seth Kosto and Carlos Lopez, both members of Ortiz’s Civil Rights Enforcement Team. The U.S. Attorney’s Office also wishes to thank the Middlesex County District Attorney Marian C. Ryan’s Office for its participation in the investigation.
The enforcement of federal civil rights laws is a high priority of the U.S. Attorney’s Office for the District of Massachusetts. Since U.S. Attorney Ortiz created the Civil Rights Enforcement Team in 2010, the Office has substantially increased its efforts in civil and criminal civil rights enforcement actions. In the last four years, the office has charged an increasing number of defendants with sex trafficking and other criminal civil rights violations.
Bakersfield Man Pleads Guilty to Being A Felon in Possession of A FirearmRead the Press Release
FRESNO, Calif. — Vincent Deleon, 33, of Bakersfield, pleaded guilty today before U.S. District Judge Lawrence J. O’Neill to being a previously convicted felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
On November 6, 2013, the FBI’s Violent Crime Task Force received information that Deleon, who was wanted on two Kern County felony warrants, was in an apartment on Monterey Street in Bakersfield. Task force agents set up surveillance and when Deleon came out of the residence, they identified themselves and told him to stop. Deleon immediately fled from the agents and in his flight, threw a Smith & Wesson 9 mm pistol over a fence. Agents were able to apprehend Deleon and also recover the firearm from the adjacent property.
This case is the product of a joint investigation by members of the Violent Crime Task Force, which include the Kern County Sheriff’s Department, the Kern County Probation Office and the FBI. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Deleon is scheduled to be sentenced by Judge O’Neill on March 9, 2015. He faces a maximum statutory penalty of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Attorney's Legal Assistant Sentenced to Federal Prison for Two YearsRead the Press Release
ABINGDON, VIRGINIA – Mandie Marie Bishop, 34, of Big Stone Gap, Va., was sentenced today in the United States District Court for the Western District of Virginia in Abingdon to 24 months in federal prison for defrauding an elderly woman of $183,726.83.
United States District Judge James P. Jones imposed sentence based on Bishop’s September 25, 2014, guilty plea to two counts of bank fraud and one count of making false statements in a matter within the jurisdiction of the executive branch of the United States.
According to evidence presented at previous hearings, Bishop worked as a legal assistant in a law office located in Lee County, Virginia. Bishop’s employer, an attorney in Lee County, Virginia, became conservator of an elderly woman’s assets in late December 2011. Bishop’s employer allowed Bishop to access the elderly woman’s bank accounts at Farmers and Miners Bank and Lee Bank and Trust Company, but Bishop did not have signature authority on the accounts. As early as January 17, 2012, Bishop began fraudulently issuing and cashing checks from the elderly woman’s accounts. Between January 17, 2012, and May 16, 2013, Bishop caused $106,672.37 to be fraudulently obtained from the elderly woman’s bank account at Lee Bank and Trust Company. Between June 29, 2012 and May 16, 2013, Bishop caused at least $11,382.90 to be fraudulently obtained from the checking account at Farmers and Miners Bank. On May 16, 2013, after Farmers and Miners Bank made her employer aware of the fraudulent activity at the bank, her employer deposited $10,558.25 into the account to replace a portion of the missing funds.
Bishop continued in her role as a secretary and assistant with the same employer and between May 17, 2013, and December 10, 2013, caused at least an additional $53,002.82 to fraudulently be obtained from the elderly woman’s checking account. In addition, the victim incurred $12,668.74 in unnecessary expenses. The Court ordered Bishop to make restitution for the total amount of loss incurred by the victim -- $183,726.83. To date, Bishop’s employer has repaid $104,990.15.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Alabama Man Convicted in Scheme to Defraud Military Sub-ContractorRead the Press Release
After eleven days of trial, a federal jury convicted an employee of Day and Zimmerman, International (D&Z), a large, multi-national company specializing in construction, engineering, and security for leading corporations and govenments around the world, of eight counts of wire fraud. The employee engaged in two schemes in which he attempted to fraudulently obtain almost $650,000.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), and Frank Robey, Director, Major Procurement Fraud Unit (MPFU), U.S. Army Criminal Investigation Command, made the announcement.
According to evidence presented at trial, in the first scheme, Stanley P. Phillips, 48, of Dothan, Alabama, used his position as a construction foreman on a D&Z project to build a chemical plant in Pace, Florida, to steal more than $35,000. Phillips did so by convincing AWA Fabrication and Construction, LLC, a family-owned vendor company that supplied certain piping materials to D&Z, to “hire” a company called Royal Global Services, LLC to install the piping being supplied. In fact, the installation was done by D&Z employees, and Royal Global Services, LLC was a shell company solely owned by the Phillips.
In the second scheme, Phillips, acting as the construction/site manager for a D&Z project to build a Weak Acetic Acid Recovery Facility Plant (WAARP) at the Holston Army Ammunition Plant in Kingsport, Tennessee, attempted to steal more than $600,000. Phillips did so by convincing a family-owned sub-contractor company called HSIII to “hire” a company called RGS Professional Services, LLC (RGSPS) to ostensibly do work on behalf of HSIII on the WAARP Project. In fact, Phillips was the 51% owner of RGSPS, which was actually a nursing registry not capable of providing any services on the WAARP Project.
Monies from both schemes were deposited into an account in the name of RGS, LLC, which was a separate company Phillips’ controlled but which had been opened in the name of his girlfriend. She was told that the monies were being deposited because Phillips’ was on the secret payroll of Senator Ron Johnson of Wisconsin, and that the money from AWA and HSIII were repayments of loans made to them by Senator Johnson. Phillips maintained the trust of his girlfriend and others by telling them about his association with Senator Johnson, his work for the FBI, his background as a nuclear engineer, and his exploits as part of a secret military team who extracted General Noriega from the jungles of South America. None of this was true. Phillips stipulated that he had no association with any senators of any kind, and no law enforcement connections. He was in fact a high school graduate who had completed two entry level navigation classes while in the Coast Guard. He was discharged in 1986 after only two years because of sleepwalking. Operation Just Cause, in which General Noriega was retrieved, took place in 1989/1990.
Phillips is scheduled to be sentenced on February 20, 2014, at 4:00 p.m. before U.S. District Judge Beth Bloom, in Fort Lauderdale, Florida. At sentencing, he faces a maximum term of 160 years imprisonment, plus supervised release, restitution and a fine.
Mr. Ferrer commended the investigative efforts of the FBI, DCIS, and the U.S. Army Criminal Investigation Command's MPFU. This case is being prosecuted by Assistant U.S. Attorney Carolyn Bell.
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.
17-Count Indictment in Illegal Concealed Carry Weapons Permits CaseRead the Press Release
SAN JUAN, Puerto Rico – On Thursday, December 11, 2014, a federal grand jury returned a 17-count indictment against former Lieutenant and head of Bayamón CIC, Puerto Rico Police Department Sergio Calderón-Marrero for conspiracy to commit identity fraud, unlawful production of identification documents, aggravated identity theft, attempted witness tampering and attempted obstruction of justice, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the Puerto Rico Police Department (PRPD) are in charge of the investigation.
Calderón-Marrero would obtain forged firearms handling course certificates, forge signatures of his clients, and use the notary seal of a deceased Attorney and Notary Public to circumvent the appropriate legal process and obtain Concealed Carry Weapons Permits illegally for his clients.
According to the accusation, from in or about January 2012, continuing through February 18, 2014, Calderón-Marrero conspired to knowingly cause, without lawful authority, Puerto Rico Concealed Carry Weapons Permits to be created illegally. Calderón-Marrero charged clients and collected money for services and fees that were not rendered and submitted forged documents to PRPD authorities. Calderón-Marrero’s scheme, which involved false handling course certificates and forged sworn statements, knowingly caused the transfer, possession, and use without lawful authority, the means of identification of another person which contained the name and signature of the PRPD Superintendent, the name of permit cardholders, and the name of a deceased Puerto Rico Notary Public and Attorney.
The purpose and object of the conspiracy was to have Commonwealth of Puerto Rico Concealed Carry Weapons Permits be issued falsely for pecuniary gain.The case is being prosecuted by Assistant U.S. Attorneys Luke Cass and José Capó-Iriarte. If convicted, the defendant could face up to 15 years in prison for unlawful production of identification documents, up to 15 years for conspiracy to commit identity fraud, up to 20 years for attempted witness tampering, and two additional years for aggravated identity theft. The defendant is also facing a forfeiture allegation for a sum of money representing the amount of proceeds obtained as a result of the scheme totaling approximately $105,000.00.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
Friday 12 December 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Ronnie Seward, 25, of South Bend, Indiana pled guilty to the felony offense of knowingly or intentionally possessing with the intent to distribute a mixture or substance containing cocaine base over 28 grams. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration. Sentencing has been set for March 12, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Justin Bowles, 25, of South Bend, Indiana pled guilty to the felony offense of knowingly or intentionally possessing with the intent to distribute a mixture or substance containing cocaine base over 28 grams. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration. Sentencing has been set for March 20, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Michael Smith, 60, of Mishawaka, Indiana pled guilty to the felony offenses of tax evasion and structuring financial transactions. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service-CID. Sentencing has been set for March 20, 2015. This case is being prosecuted by Assistant United States Attorney Jesse M. Barrett.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Marcus Northern, Sr., 54, of South Bend, Indiana was sentenced to 2 years probation and ordered to pay a $5,000 fine after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on July 23, 2013, Northern possessed a Glock handgun. In 1995, Northern was convicted in federal court of Interstate Travel to Aid a Business Enterprise and was sentenced to 60 months imprisonment for that conviction. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney William T. Grimmer.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Vincent LaVelle LANKING, 29, of Lafayette, Indiana pled guilty to the felony offense of escape. The statutory maximum sentence for this felony is 5 years in prison. This charge was filed as a result of an investigation by United States Probation and Pretrial Services. Sentencing has been set for March 30, 2015 before District Court Judge Rudy Lozano. This case is being prosecuted by Assistant United States Attorney Randall M. Stewart.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Charles Seals, 24, of Fort Wayne, Indiana pled guilty to the felony offenses of armed bank robbery, brandishing a firearm during and in relations to a crime of violence and forcibly assaulting and impeding a postal employee. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Federal Bureau of Investigation, United States Postal Inspection Service, Northeast Indiana Federal Bank Robbery Task Force, Allen County Police Department, Fort Wayne Police Department and the Indiana State Police. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
- Luis Juarez-Cabrera, 33, of Fort Wayne, Indiana pled guilty to the felony offense of aiding and abetting another’s possession of a kilogram of cocaine intended for distribution. This charge was filed as a result of an investigation by Drug Enforcement Administration and the Fort Wayne Police Department Vice and Narcotics Division. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorneys Nathaniel C. Henson and Tina L. Nommay.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Warren Man Sentenced to 10 Years in Prison for $15 Million Ponzi SchemeRead the Press Release
A Warren man was sentenced to 10 years in prison for his role in operating a $15 million Ponzi scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland Office.
Keelan Harris, 38, was convicted earlier this year on charges of conspiracy, wire fraud, and money laundering. U.S. District Judge Christopher A. Boyko also ordered Harris to pay $15,596,345 in restitution to over 300 victims of the investment fraud scheme conducted by Harris, his brother Kevin Harris, and Karen Starr, who is a federal fugitive.
The sentence follows Harris’s pleas of guilty to conspiracy to commit wire fraud, seven counts of wire fraud and four counts of money laundering. These crimes arose out of Harris’s role in operating a Ponzi-style investment fraud from 2006 through on or about November 23, 2009, under the business names of Complete Developments LLC (CDL) and later, Investment International Inc. (I3). Offices for these businesses were maintained in Warren, according to court documents.
Kevin Harris is currently serving an 87-month term of imprisonment following his earlier conviction for this same scheme. He and Karen Starr recruited investors, while Keelan Harris opened and managed the business bank accounts. Investors in CDL expected profits from foreign currency exchange trading, and I3 was to generate profits from commercial real estate, high-yield investments, start-up companies, and inventions, according to court documents.
Investors were promised returns of 7 to 12 percent per month, over short-term periods, and were also assured that 80 percent of each investment would be held in secure accounts, and returned at the end of the contracted periods, according to court documents.
Kevin Harris and Karen Starr conducted limited foreign exchange currency trading, and lost money. Thereafter, CDL and I3 were operated as a Ponzi scheme, with Keelan Harris sending purported interest payments to early investors from funds obtained not from profits, but from later investor victims. Over $20 million was raised from over 400 investor victims, and ultimately approximately $15.6 million was lost, according to court documents.
More than $1.9 million was withdrawn from the CDL and I3 accounts in cash by Kevin and Keelan Harris. Approximately $400,000 was used by Kevin and Keelan Harris for personal expenditures, at stores, restaurants, for mortgage payments, car leases, and cell phone bills. Approximately $306,000 was diverted to low-value rental properties in the Warren area, and $308,000 was transferred to Starr in Canada. Approximately $760,000 was diverted to UCAN, another shell company for CDL, and $3.5 million was allegedly invested in a business in the United Arab Emirates. Additional investor funds were used for salaries and commissions, travel expenses, diversions to other investments by the Harrises, and payments to friends and family members, according to court documents.
This case was investigated by the Youngstown Resident Agency of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Lauren Bell, James V. Moroney, and David Toepfer.United States Settles False Claims Act Allegations Against Florida-Based Sleep Clinic and Physician for $250,000Read the Press Release
Jacksonville, FL B The United States has settled a lawsuit against a central Florida-based sleep clinic for submitting false claims to the government. The qui tam or “whistleblower” complaint, filed by a former employee of the clinic, alleges that VMG Pulmonary and Sleep Institute and its physician/owner, Dr. Marivic Villa, violated the False Claims Act (FCA) by intentionally billing the government for hundreds of thousands of dollars of services that were not medically necessary, and that were performed by unlicensed, uncredentialed, and unsupervised employees.
The government announced today that it had reached a settlement with VMG and Dr. Villa. In reaching this settlement, the parties resolved allegations that, from January 1, 2009, until November 2012, Dr. Villa owned and operated sleep clinics in The Villages that were staffed by unlicensed and unsupervised employees. In many instances, these employees lacked the basic knowledge regarding the tests that they were performing. Despite Medicare payment rules that require that polysomnographic (PSG) tests be conducted by appropriately credentialed employees, the government contends that Dr. Villa only employed non‐credentialed employees. The government also contends that Dr. Villa continued to seek payment for claims to Medicare and TRICARE when she knew, or should have known, that she was violating the payment requirement by not having any appropriately credentialed employees administering PSG tests to beneficiaries. VMG and Dr. Villa agreed to pay $250,000 to resolve the claims.
"The United States Attorney's Office is committed to taking the steps necessary to protect Medicare, TRICARE, and other federal health care programs from fraud," said United States Attorney A. Lee Bentley, III. "By bringing FCA cases such as this, we hope to recover funds obtained through the fraud and deter others from attempting similar schemes."
This lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Donald Nichols, a former employee at the clinic. Under those provisions, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Nichols will receive more than $50,000 as part of today’s settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Department of Justice has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General (HHS/OIG), the Defense Health Agency (DHA), HHS Office of Counsel to Inspector General (HHS/OCIG), and handled by Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit against the defendants was filed in the U.S. District Court for the Middle District of Florida and is captioned United States ex rel. Nichols v. VMG Pulmonary and Sleep Institute, Tri-County Pulmonary & Multi-Specialty Group, and Dr. Marivic Villa.
United States Attorney’s Office Announces Sentencing of Local Businessman on Fraud ChargesRead the Press Release
Fishers man defrauded businesses of over $600,000 on false promises
INDIANAPOLIS – Josh J. Minkler, Acting United States Attorney, announced today the sentencing of a Fishers businessman who was convicted in June of this year on 10 counts of wire fraud. Hrond Arman Gasparian, 69, was sentenced to 24 months in federal prison by U.S. District Judge Sarah Evans Barker.
“In any case, fraud is stealing,” said Minkler.” It is simply taking money from hardworking, honest individuals and putting it in the hands of a thief. In this case, the thief victimized a church. You can’t get any lower than that.”
Gasparian claimed he was a loan broker who could secure funding for businesses and non-profits. He was convicted for his involvement in two fraudulent schemes that swindled prospective borrowers of hundreds of thousands of dollars.
The first scheme involved Bell’s Chapel Church in Indianapolis. Gasparian told members seeking financing to rebuild the church that burned in 2008, he could secure a $3 million grant but would need $365,000 for earnest money and $35,000 non-refundable fee for Gasparian to broker the deal. He told Bell’s Chapel he would put the money in an escrow account, and the refundable portion would be returned upon securing the grant. Gasparian instead spent the $400,000, never securing the grant to Bell’s Chapel and never refunding the earnest money.
In the second scheme Gasparian was convicted of fraudulent behavior which involved two Indianapolis-area businessmen seeking to secure financing for a new construction project. Gasparian assured them he could secure several million dollars in financing for them, but needed $200,000 in earnest money and $25,000 for his brokering fee. Like the members of Bell’s Chapel, the businessmen never received a loan, nor were they returned the refundable earnest money that had been given to Gasparian.
This case is the result of a collaborative effort by the FBI and the U.S. Attorney’s Office. Investigators with the FBI provided key information in securing Gasparian’s conviction. W. Jay Abbott, Special Agent in Charge of the Indianapolis Office said, “The American public needs to know that those who commit financial fraud will be held accountable and today’s sentence makes it clear that this type of fraud in a serious violation of law.”
According to Assistant U.S. Attorney Winfield D. Ong, who prosecuted the case for the government, Gasparian faces two years of supervised release after his sentence.
- U.S. Seizes Investment Account of Former Mexican Governor’s Political Appointee
U.S. Attorney Announces Indictments Returned in Local Federal Benefit Fraud Schemes; Several Charged with Stealing Millions from Government Funds Intended to Benefit Children and Poor FamiliesRead the Press Release
Memphis, Tenn. – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, announced today that Ray Chism III, 42, and Remark Chism, 35, both of Memphis, Tennessee, were indicted by a federal grand jury yesterday for conspiracy to commit Supplemental Nutrition Assistance Program (SNAP) benefit fraud; SNAP benefit fraud; conspiracy to commit child care benefit fraud; theft of public money or property; and making false statements. Renita Little, a business associate of Ray Chism III, and Angelica Austin and Erica Pitchford, associates of Remark Chism, were charged as co-conspirators.
U.S. Attorney Stanton said, “As alleged, the defendants systematically and brazenly obtained government funds intended to benefit children and poor and low-income families – all to enrich themselves. Their schemes victimized taxpayers and the intended beneficiaries of the SNAP and Certificate programs. They will now have to answer for their alleged conduct and face severe consequences in a court of law.”
If convicted, Ray Chism III could face up to 95 years in prison and a fine of up to $4.5 million, and Remark Chism faces up to 135 years in prison and a fine of up to $6.25 million dollars.
Ray Chism III and Renita Little’s two-year scheme to commit SNAP and child care benefit fraud
The 18-count indictment against Ray Chism III and Renita Little alleges that beginning at least in October 2011 and continuing until December 2013, Ray Chism III used several businesses, including a daycare (Helping Hands Enrichment Center), a convenience store and car wash (Chism Express and Car Wash), and a family grocery store (the former Maxi Foods on South Third Street), to defraud public assistance programs.
The Supplemental Nutrition Assistance Program (formerly known as food stamps) is designed to help low- and middle-income families purchase food. According to the indictment, Ray Chism III would purchase SNAP benefits from recipients for less than face value and subsequently redeem the benefits through Maxi Foods for full value. SNAP is administered by the U.S. Department of Agriculture.
The indictment also alleges that Ray Chism III obtained undue payments under a program of the U.S. Department of Health and Human Services known as the Child Care Certificate Program. The Certificate Program helps needy families by subsidizing the cost of child care while parents work or attend school. According to the allegations, Chism would pay cash to parents in exchange for use of their child care certificates. Helping Hands would report the children were in attendance and receive reimbursement for care, even though the child named on the certificate did not actually attend. Renita Little, the one-time director of Helping Hands, is also charged with committing Certificate Program fraud. The loss to the Certificate Program through Helping Hands is estimated at more than $676,000 over a two-year time period.
Remark Chism, Angelica Austin, and Erica Pitchford’s two-year scheme to commit SNAP and child care benefit fraud
The 25-count indictment against Remark Chism, Angelica Austin and Erica Pitchford alleges that beginning in October 2011 and continuing until December 2013, Remark Chism used several businesses, including a daycare he owned (K.A.R.E. 3 Enrichment Center) and Maxi Foods, which he owned and operated, to defraud public assistance programs.
According to the indictment, Remark Chism would also purchase SNAP benefits from recipients for less than face value and subsequently redeem the benefits through Maxi Foods for full value. The indictment alleges that more than $1.9 million dollars in SNAP benefits were unlawfully redeemed for cash as part of Remark Chism’s scheme.
The indictment also alleges that Remark Chism obtained undue payments under the Child Care Certificate Program. According to the allegations, Chism would pay cash to parents in exchange for use of their child care certificates. K.A.R.E. would report the children were in attendance and receive reimbursement for care, even though the child named on the certificate did not actually attend. The loss to the Certificate Program through K.A.R.E. is estimated at more than $986,000 over a two-year time period.
Angelica Austin and Erica Pitchford are also charged with committing benefit program fraud. Each is alleged to have recruited individuals on Chism’s behalf to sell food benefits for cash at below face value. The women allegedly paid parents as part of the day care scheme as well.
Search warrants were executed in November 2013 at Helping Hands, Chism Express, Maxi Foods, and other locations. The investigation is still ongoing.
This investigation was conducted by the United States Department of Agriculture Office of the Inspector General; United States Secret Service; United States Marshals Service; Memphis Police Department Organized Crime Unit; and the Tennessee Department of Human Services. This case is being prosecuted for the government by Assistant United States Attorneys Larry Laurenzi and Debra Ireland.
The charges and allegations contained in indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Mississippi Women Plead Guilty to a Series of Racially-Motivated Assaults on African-AmericansRead the Press Release
The Justice Department announced today that Shelbie Brooke Richards, 21, and Sarah Adelia Graves, 21, from Brandon, Mississippi, pleaded guilty in U.S. District Court in Jackson to federal hate crime charges in connection with a series of racially-motivated assaults on African-Americans, which culminated in the death of James Craig Anderson, an African-American man, in the summer of 2011.
Richards and Graves each pleaded guilty to one count of conspiracy to violate the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act for their roles in a scheme to target African-Americans in Jackson for violent assaults with dangerous weapons, including their roles in the murder of Anderson, who was run over by a FordF250 truck driven by members of the conspiracy. The maximum penalty for this charge is five years in prison and a $250,000 fine. Richards pleaded guilty to an additional count of misprision of a felony for her role in concealing information about the murder of Anderson from investigating authorities. The maximum penalty for this charge is 3 years in prison and a $250,000 fine.
“The continuing investigation into the events surrounding the vicious murder of James Craig Anderson that resulted in today’s guilty pleas demonstrates that the Department of Justice will vigorously pursue justice for every victim of racially-motivated violence,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “No person should have to fear that they will be attacked because of the color of their skin as they walk the streets of their own city. We will continue to use the tools at our disposal to ensure that racial equality in America is a reality as well as an ideal.”
“Hate based crimes have no place in America,” said U.S. Attorney Gregory K. Davis for the Southern District of Mississippi. “In addition to the injury to the victim, these crimes damage the fabric of our society. The citizens of this district should know that this office will continue to vigorously enforce federal laws that guarantee the civil rights of all citizens.”
“This investigation started with the tragic death of James Anderson, “said Special Agent in Charge Donald Alway of the FBI Mississippi Division. “Since then, the FBI has continued its efforts to identify and bring to justice all those individuals who conspired to deprive Mr. Anderson and other African-American citizens of their civil rights simply because of the color of their skin.”
Today in court, Richards and Graves admitted that, beginning in the spring of 2011, they and others conspired with one another to harass and assault African-Americans in west Jackson. On numerous occasions, the co-conspirators used dangerous weapons including beer bottles, sling shots and motor vehicles to cause and attempt to cause bodily injury to African-Americans. They would specifically target African-Americans they believed to be homeless or under the influence of alcohol because they believed that such individuals would be less likely to report an assault. The co-conspirators would often boast about these racially motivated assaults. Richards and Graves admitted that on June 26, 2011, they encouraged their co-conspirators to leave Brandon with them to assault “niggers,” in Jackson. Richards further admitted that she encouraged her co-conspirator Deryl Paul Dedmon to hit Anderson with his truck. In addition, Richards admitted that she falsely told law enforcement officers that she did not remember a fight between Dedmon and Anderson, and that she did not encourage Dedmon to strike Anderson with his truck.
Defendants Deryl Paul Dedmon, John Aaron Rice, Dylan Wade Butler, William Kirk Montgomery, Jonathan Kyle Gaskamp, and Joseph Dominick, all from Brandon, have previously entered guilty pleas in connection with their roles in these offenses.
These guilty pleas were the result of a cooperative effort among the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Mississippi and the Hinds County, Miss. District Attorney’s Office. This case was investigated by the Jackson Division of the FBI and the Jackson Police Department. It is being prosecuted by Trial Attorney Sheldon L. Beer and Deputy Chief Paige M. Fitzgerald of the Civil Rights Division of the Department of Justice, and Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi.
Two Area Men Indicted in Conspiracy to Avoid Taxes on $4.7 MillionRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a Springfield, Mo., business and a Greene County, Mo., man have been indicted by a federal grand jury for their roles in a conspiracy to avoid paying taxes on $4.7 million in receipts.
Wesley Vernon Delport, 68, of Ozark, Mo., and Alton Louis Vaughn, Sr., 58, of Greene County, were charged in a six-count indictment returned under seal by a federal grand jury in Springfield on Tuesday, Dec. 9, 2014. That indictment was unsealed and made public today upon their arrests and initial court appearances. Both Delport and Vaughn remain in federal custody pending a detention hearing on Wednesday, Dec. 17, 2015.
Delport was the owner of Abundant Health & Wellness, a business described as a holistic health clinic, located in Springfield. Vaughn was self-employed and derived a portion of his income from assisting in the preparation of federal income tax returns, advising taxpayers regarding their dealings with the IRS, and representing others in their dealings with the IRS.
The federal indictment alleges that Delport received approximately $4,710,335 in gross receipts for Abundant Health & Wellness from Jan. 1, 2004, to Dec. 31, 2013, which he did not report to the IRS as required by law and upon which he did not pay taxes.
According to the indictment, Delport purported to create an entity called The Shammah Foundation, which he described as “A Corporation Sole” the purpose of which was, “to do whatever will promote the Kingdom Of God, All Righteousness and the principles of Liberty and Justice,” on May 7, 2002, in the state of Washington. Delport allegedly transferred funds from the bank account of Abundant Health & Wellness to the bank account of The Shammah Foundation, and used The Shammah Foundation bank account to pay his personal expenses, without reporting those funds to the IRS as income or paying any taxes.
Vaughn allegedly advised and assisted Delport in his attempts to avoid IRS efforts to ascertain, compute, assess, and collect federal income taxes, and sometimes acted as Delport’s representative in dealings with the IRS and the federal court.
The indictment also alleges that Delport attempted to impede and delay an IRS examination of his tax liability by filing documents that consisted of lengthy and frivolous arguments. According to the indictment, Delport described himself as a “Sovereign National” and claimed the IRS is “a bogus agency not of government.” Delport allegedly attempted to place his funds and assets beyond the reach of the IRS by putting them in the names of his wife and daughter.
Delport and Vaughn allegedly attempted to impede the federal grand jury investigation by, among other things, refusing to comply with federal grand jury subpoenas for tax and business records and falsely claiming that an IRS revenue officer had personally seized and collected all of Delport’s original documents. They allegedly counseled an employee to refuse to testify before the grand jury and provided this employee with a written statement (which contained an inaccurate statement of the law) to read to the grand jury in lieu of complying with her legal obligation to testify. They allegedly attempted to impede the criminal investigation by falsely reporting to the Treasury Inspector General for Tax Administration that an IRS revenue officer and an IRS criminal investigator had coerced, intimidated and threatened Delport.
Delport and Vaughn allegedly assisted an employee of Abundant Health & Wellness and her husband in impeding IRS efforts to collect the taxes the couple owed. They did so, the indictment says, by paying the employee’s salary to her daughter, who did not work at Abundant Health & Wellness. They refused to comply with IRS requests and summonses for documents and records, the indictment says. Delport falsely claimed that the employee was an unpaid intern of his business, the indictment says.
Delport and Vaughn are charged together in one count of participating in a conspiracy to defraud the government. In addition to the conspiracy, Delport is charged with one count of obstructing or impeding the administration of internal revenue laws and two counts of filing false income tax returns. Vaughn is also charged with two counts of aiding and assisting the filing of false income tax returns.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration.Three Separate Individuals Arrested for A Total of Six CarjackingsRead the Press Release
SAN JUAN, Puerto Rico – On December 10 and 11, a federal grand jury in the District of Puerto Rico returned three indictments against three defendants charged with carjacking and firearms offenses, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The indictments are the result of a joint effort between the United States Attorney’s Office (USAO), the Federal Bureau of Investigation’s Save Our Streets Initiative (SOS) and the Puerto Rico Police Department (PRPD).
Luis Dàvila Crespo committed a series of carjackings from November 30 to December 4 throughout the San Juan metro area, in which individuals were violently carjacked with a knife. One carjacking involved a 93-year old male victim, and a separate carjacking occurred on the property of a church where the victim, a parishioner, was threatened with being stabbed.
The other two indictments charge Victor M. Rodríguez Cruz and Kevin Arias Rivera with armed carjackings, on September 19, 2014, and December 8, 2014, respectively. Both of those carjackings occurred at the residences of the victims were they were threatened with firearms.
On December 8, 2014, Arias Rivera was involved in a high-speed chase with the Puerto Rico Police Department seeking to evade apprehension that ended with the carjacked vehicle being flipped-over in the Luquillo area.
“The investigations of FBI special agents and designated PRPD officers will continue into similar crimes in other areas of Puerto Rico,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The collaboration and team work between state and federal law enforcement agencies in the investigation and prompt filing of charges show the immediate results we continue to obtain with this joint initiative.”
Assistant U.S. Attorney Luke Cass is in charge of the prosecution of all three cases. If convicted, the defendants could face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Three East Hartford Residents Involved in Drug Trafficking Ring Are SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that three East Hartford residents involved in a coast to coast drug trafficking ring were sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport.
According to court documents and statements made in court, in January 2013, the DEA’s Hartford Task Force began an investigation into the narcotics distribution activities of Luis Fernandez of East Hartford. The investigation, which included the use of court-authorized wiretaps and controlled purchases of narcotics, revealed that Fernandez’s family members and associates in southern California shipped heroin, cocaine and marijuana to Fernandez at various addresses in the Hartford area. Fernandez, who also was supplied with narcotics from individuals in New York, sold the drugs locally to other dealers and customers.
JOSE DEJESUS RIVERA, also known as “Chuy,” 25, was sentenced to 60 months imprisonment, followed by four years of supervised release. DEJESUS RIVERA moved to Connecticut from Pomona, Calif., in late 2012 and resided in East Hartford with Luis Fernandez.
JESUS FERNANDEZ, also known as “Guerro” and “Guate,” 29, of East Hartford, formerly of Mexico, also was sentenced to 60 months of imprisonment, followed by four years of supervised release.
The investigation revealed that DEJESUS RIVERA and JESUS FERNANDEZ assisted Fernandez in the distribution of heroin. JESUS FERNANDEZ and Luis Fernandez are cousins. On September 4, 2013, DEJESUS and JESUS FERNANDEZ sold approximately six grams of heroin to an individual working with law enforcement. The next day, DEJESUS RIVERA and JESUS FERNANDEZ negotiated a larger heroin transaction with the same individual and arranged a meeting. After they arrived at the meet location, officers apprehended DEJESUS RIVERA, who was found in possession of approximately 250 grams of heroin, but JESUS FERNANDEZ fled the scene.
The investigation also determined that DEJESUS RIVERA was the intended recipient of a kilogram of heroin that was seized by law enforcement in Wallingford in July 2013. Also, in July 2012, DEJESUS RIVERA was involved in the laundering of approximately $28,000 in drug proceeds in California.
DEJESUS RIVERA has been detained since his arrest on September 5, 2013. On August 21, 2014, he pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin.
JESUS FERNANDEZ was arrested in Ohio on October 11, 2013, and has been detained since that date. On April 28, 2014, he pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin.
CARLOS FERNANDEZ, also known as Ricardo Fernandez, 21, a citizen of Mexico last residing in East Hartford, was sentenced to approximately 14 months of imprisonment, time already served. During the investigation, CARLOS FERNANDEZ delivered a package containing 468 grams of cocaine to a third party at the direction of his cousin, Luis Fernandez.
CARLOS FERNANDEZ has been detained since his arrest on October 9, 2013. On September 22, 2014, he pleaded guilty to one count of conspiracy to distribute cocaine. He will be deported to Mexico.
More than 20 individuals have been charged with narcotics distribution and related offenses as a result of this investigation. Fernandez has pleaded guilty and awaits sentencing.
This investigation has been led by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments. Agencies assisting the investigation include the DEA in New Haven, Bridgeport, Los Angeles and Panama, Federal Bureau of Investigation, U.S. Marshals Service, U.S. Department of Homeland Security, U.S. Postal Inspection Service, Connecticut State Police, State of Connecticut Office of Adult Probation, and the Hartford, East Hartford and New Britain Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Gabriel J. Vidoni.
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[email protected]Three Defendants Sentenced and Two Additional Defendants Plead Guilty for Their Roles in the Kidnapping and Murder of DEA Agent James “Terry” WatsonRead the Press Release
ALEXANDRIA, Va. – Three Colombian nationals were sentenced today for their roles in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James “Terry” Watson in Bogota, Colombia, on June 20, 2013.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“Throughout his law enforcement career, Special Agent Watson’s service was both selfless and courageous,” said Attorney General Eric Holder. “With this action, we continue our work to hold accountable those who were responsible for his murder. In the weeks ahead, we expect to take additional steps to bring the perpetrators to justice. And in all that we do, our nation's Department of Justice will continue to honor Special Agent Watson’s sacrifice, to safeguard the nation he served, and to protect the values and principles he defended all his life.”
“Special Agent Watson’s kidnapping and murder is a tragic reminder of the dangers that exist for Americans abroad,” said U.S. Attorney Boente. “The sentences delivered today are also a reminder. They are a reminder of the commitment of the Justice Department, this office, and our investigative partners to protect and defend Americans abroad who are victims of crime. We will continue to press forward in this case until all those responsible have been brought to justice.”
“DEA will never forget the sacrifice of Special Agent Terry Watson, nor will we rest until those responsible for his kidnapping and murder are brought to justice for this horrific act,” said DEA Administrator Leonhart. “While this is certainly not the final step, we are pleased that another criminal facilitator in this awful tragedy is answering for his actions in a U.S. courtroom.”
Hector Leonardo Lopez, 34, Julio Estiven Gracia Ramirez, 32, and Andres Alvaro Oviedo Garcia, 22, previously pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Today, U.S. District Judge Gerald Bruce Lee sentenced Lopez to 25 years in prison, Gracia Ramirez to 27 years in prison, and Oviedo Garcia to 20 years in prison. Each also was sentenced to five years of supervised release.
In addition, today, Wilson Daniel Peralta-Bocachica, 31, pleaded guilty to obstruction of justice and, on Dec. 9, 2014, Edwin Gerardo Figueroa Sepulveda, 39, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing hearings for Peralta-Bocachica and Figueroa Sepulveda are scheduled for Feb. 18, 2015.
In the statements of facts filed with the plea agreements, Lopez, Gracia Ramirez, Oviedo Garcia, and Figueroa Sepulveda admitted that they conspired to conduct “paseo milionarios” or “millionaire’s rides” in Bogota, Colombia in which victims were lured into taxi cabs, kidnapped and then robbed. They admitted that on the evening of June 20, 2013, they were part of a group that targeted Special Agent Watson. Gracia Ramirez drove the taxi that picked up Special Agent Watson, Lopez drove the second taxi that was used to carry the assailants, and Figueroa Sepulveda entered the taxi carrying Special Agent Watson and shocked him with a stun gun while another defendant stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries. Oviedo Garcia was part of the group that attacked Special Agent Watson, however, shortly before Special Agent Watson was targeted a third taxi encountered mechanical issues and Oviedo Garcia stayed with the disabled taxi. In the days following the kidnapping and murder, Peralta-Bocachica washed the taxi in which Special Agent Watson was stabbed, removing blood from the back seat of the taxi and discarding the rags that were used to clean the taxi before turning the taxi over to the Colombian National Police.
Two other defendants were charged in this case for their alleged involvement in the murder of Special Agent Watson. Omar Fabian Valdes Gualtero, 27, and Edgar Javier Bello Murillo, 27, are charged by indictment with second degree murder, kidnapping and conspiracy to kidnap. Trial for the remaining defendants is set for Jan. 12, 2015.
The charges in the indictment against the other defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
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