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Thursday 4 December 2014
Man Sentenced to 56 Months in Multi-layered Credit Card Fraud and Identity Theft Scheme Involving Falsified Credit Applications and Fraudulent LawsuitsRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Arthur Robinson, age 39, of Frederick, Maryland, was sentenced yesterday by the Honorable Sue L. Robinson, United States District Judge for the District of Delaware, to 56 months imprisonment and full restitution. The defendant pleaded guilty to violations of 42 U.S.C. § 408 (social security fraud), and 18 U.S.C. § 1028A (aggravated identity theft), in April 2014.
Over the course of more than a decade, the defendant defrauded multiple federally insured financial institutions, obtaining at least $200,000. The defendant’s fraud involved making false statements in credit card applications, using the credit cards to make extensive charges, disputing the charges, abandoning significant balances on the cards, and suing the lenders when they commenced collection efforts. In some instances, the defendant used his real name and social security number on the applications, meanwhile falsifying his wage and employment information to appear more creditworthy. In other instances, the defendant used aliases, including “Arthur Collier” and “Michael Johnson”, as well as the names and social security numbers of minor children.
The defendant was able to dispute the charges with lenders, by falsely claiming that he was a victim of identity theft and/or the goods he purchased were not delivered by the merchants. Some of the lenders agreed to remove the charges from the defendant’s credit card accounts. Some did not. When the defendant began receiving collection calls from lenders on the outstanding balances, he responded, once again, with false statements. The defendant sued the lenders, claiming that he knew nothing about the credit cards, and he sought damages under the Telephone Consumer Protection Act, 47 U.S.C. § 227 (TCPA).
At various points in time, the defendant’s fraudulent activities resulted in negative marks on his credit report. The defendant responded by contacting at least one of the credit agencies to dispute the negative marks. The defendant claimed that he was a victim of identity theft. The defendant’s efforts succeeded in clearing some of the credit history, enabling further fraud. However, by early 2009, extensive negative credit history had accrued. The defendant escalated the fraud by attempting to obtain a new social security number from the government.
The defendant made repeated false representations to the Social Security Administration (SSA), claiming that he was an identity theft victim. The defendant was determined to obtain a new SSN. The SSA initially denied the defendant’s application. Undeterred, the defendant returned to the SSA with falsified letters from banks, purporting to state that the defendant was an identity theft victim. These letters appeared to be authentic at the time, and the defendant was successful in obtaining a new SSN. Within months of the issuance of the new SSN, the defendant used it to open new lines of credit and continue the fraud.
At the Sentencing Hearing, the Honorable Sue L. Robinson commented that the defendant was one of the most “relentlessly dishonest” defendants she had encountered in her years as a Judge.
U.S. Attorney Oberly gave the following comments: “I want to personally thank Barclays Bank for bringing this matter to the attention of my office. Financial institutions, as well as other corporate entities, are increasingly themselves victims of financial crimes. Individuals who defraud individuals or corporations can expect to be prosecuted when crimes such as those committed by Arthur Robinson are brought to our attention.”
This case is the result of an investigation conducted by the Social Security Administration, Office of the Inspector General, the United States Secret Service, and the United States Postal Inspection Service, with cooperation from the State of Maryland. The prosecution is being handled by Assistant United States Attorney Lauren Paxton, District of Delaware.Man Sentenced to 54 Months for Wire Fraud and Aggravated Identity TheftRead the Press Release
NORFOLK, Va. – Donte Demus, 27, of Norfolk, Va., was sentenced today to 54 months in prison, followed by three years of supervised release, and ordered to pay $144,841.00 in restitution for committing wire fraud and aggravated identity theft.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Thomas J. Kelley, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after Demus’ sentencing before United States District Judge Raymond A. Jackson.
Demus and a co-conspirator, Travis Hager, were indicted on March 19, 2014 by a federal grand jury. Demus was charged with one count of conspiracy to commit mail and wire fraud, six counts of wire fraud, nineteen counts of aggravated identity theft, six counts of false claims, and two counts of theft of public property. Demus pleaded guilty to one count of wire fraud and one count of aggravated identity theft on September 3, 2014.
According to court records, Demus, along with Travis Hager, stole the identities of individuals and used them to file false tax returns. Hager was incarcerated in Virginia Beach. While there, he stole the identities of a number of fellow inmates and provided them to Demus. Demus then used these identities to file fraudulent tax returns in their names and have IRS issue refunds directly to him.
Hager pleaded guilty on June 4, 2014. He was sentenced on October 2, 2014 to 54 months in prison, followed by three years of supervised release and ordered to pay restitution in the amount of $144,841.00.
This case was investigated by the Internal Revenue Service. Assistant United States Attorney Joseph Kosky prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-43.
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- Man Faces Federal Charges After Stealing from J.C. Penney Stores in 37 States
Man Arrested in A Park in Davis Pleads Guilty to Receipt and Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. —Nicholas Robert Bowen, 63, of Grizzly Flat, pleaded guilty today to receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Bowen took a woman to a Davis park and had her expose herself to 10-12 year old boys while Bowen filmed using a spy camera built into his glasses. They were arrested by Davis police. A subsequent search of Bowen’s phone and computer discovered over 600 images and videos of minors engaged in sexually explicit conduct.
This case is the product of an investigation by the Davis Police Department, the Yolo County District Attorney’s Office, and the Sacramento Internet Crimes Against Children (ICAC) Task Force. ICAC is a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
Bowen is scheduled to be sentenced by Judge Troy L. Nunley on February 19, 2015. Bowen faces a maximum statutory penalty of 20 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Lubbock Man Sentenced to 87 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Scott Brandon Hutcheson, 37, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 87 months in federal prison following his guilty plea in August 2014 to one count of transportation of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Judge Cummings remanded Hutcheson into custody at the conclusion of the hearing.
According to the factual resume filed in the case, in January 2014, Hutcheson used his computer to send an image of child pornography to the wife of a childhood classmate of his. The image depicted the recipient’s son, age four or five, eating an ice cream cone. The image, however, had been modified to make it appear the child was engaged in sexually explicit conduct. The child’s name was also displayed across the top of the image. Hutcheson sent the image, under the name of a third party, with the message:
A friend of mine asked me to send you this, and to inform you that it has been re-blogged onto NAMBLA (North American Boy Love Association) sponsored websites. He said that you would understand that filth is an aesthetic.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the Lubbock Police Department Internet Crimes Against Children (ICAC) Task Force and the FBI. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Long Island Man Sentenced in Manhattan Federal Court to 10 Years in Prison for Insurance Scam in Which He Caused Dozens of Intentional Car CrashesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MAXO JEAN was sentenced today to 10 years in prison for perpetrating a multi-year insurance fraud scheme in which JEAN directed co-conspirators to engage in more than 30 car crashes with innocent third parties, and then fraudulently obtained insurance benefits based on unnecessary medical treatments he secured for his co-conspirators following the crashes. A jury convicted JEAN of conspiracy to commit mail, wire, and health care fraud on January 31, 2014, after a one-week trial. JEAN was sentenced today in Manhattan federal court by U.S. Court of Appeals Judge Denny Chin, sitting by designation, who also presided over JEAN’s trial.
Manhattan U.S. Attorney Preet Bharara said: “A car crash is an awful experience. Yet Maxo Jean directed others to cause crashes with innocent drivers, just so that he and his co-conspirators could line their pockets. His scheme quite literally added insult to injury for the innocent drivers and the insurance companies he defrauded.”
According to the Indictment and the evidence presented at JEAN’s trial and other court proceedings:
From 2006 through 2011, JEAN engaged in a scheme to cause more than 30 intentional car crashes in order to fraudulently obtain insurance benefits. JEAN orchestrated the scheme by finding cars, recruiting crews of drivers and passengers, and then sending the crews out to hit cars driven by innocent victims. JEAN paid the drivers and passengers he recruited, and directed them to crash into cars driven by innocent people so that the supposed “accidents” would appear to be real accidents. Following the crashes, JEAN took his co-conspirators to corrupt medical clinics and directed them to submit to unnecessary treatment, including unnecessary surgeries, for their non-existent injuries, so that the treatments could be billed to car insurance companies. JEAN encouraged his co-conspirators to submit to treatments that he thought were likely to result in the largest payments from insurance companies, such as unnecessary back and shoulder surgeries. JEAN and his co-conspirators then filed fraudulent no-fault insurance claims and insurance claims that fraudulently alleged pain and suffering. The fraudulent insurance claims filed by JEAN and his co-conspirators totaled over $1.5 million, of which they succeeded in collecting nearly $600,000 in payments from ten different insurance companies. JEAN further profited from the scheme by collecting more than $150,000 in insurance company payouts and in kickbacks from the corrupt medical clinics.
In addition to the prison term, Judge Chin ordered JEAN, 52, of Long Island, New York, to forfeit $ 586,831.74 and to pay restitution to his victims.
Mr. Bharara praised the outstanding investigative work of the FBI, and thanked the National Insurance Crime Bureau for its assistance in the case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul and Alexander J. Wilson are in charge of the prosecution.
- Local Man Guilty of Tax Fraud
Lacombe Man Sentenced for Assaulting a Federal Officer with a Pickup TruckRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KORY KREIDER, age 23, of Lacombe, was sentenced today for assaulting a federal officer.
U.S. District Judge Lance M. Africk sentenced KREIDER to 46 months imprisonment followed by three years of supervised release and a $100 special assessment. A hearing to determine restitution is scheduled for December 11, 2014.
According to court documents, in May 2014 officers intercepted a package containing 1,200 pills of Alprazolam (generic Xanax) addressed to a post office box at the Royal Mail and Parcel on Metairie Road in Metairie, Louisiana. Officers delivered the package to Royal Mail and later observed KREIDER pick up the package and walk back to his pickup truck. When KREIDER was instructed to stop, he entered his truck and took off, making evasive maneuvers in order to avoid arrest. At one point, KREIDER headed toward the exit of a parking lot, and a task force officer moved to block the exit with his vehicle. KREIDER rammed the officer’s vehicle, pushing it out of the way, and made good his escape.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service, the Drug Enforcement Administration, and the Louisiana State Police in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.
Killeen Man Sentenced to Federal Prison for Intimidating WitnessRead the Press Release
Defendant intimidated witness in trial of Killeen brothers convicted of distributing close to 30 kilograms of cocaine
In Waco today, U.S. District Judge Walter S. Smith, Jr., sentenced 33-year-old Carrick Mondale Mango of Killeen, TX, to ten years in federal prison followed by three years of supervised release and ordered him to pay a $1,000 fine for witness tampering announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and United States Marshal Robert Almonte.
On June 12, 2014, Mango pleaded guilty to one count of obstruction of justice and one count of witness tampering. According to court records, on March 6, 2014, during the trial of U.S. v. Cornelius Tywarren Wilson, et al. (W-13-CR-138) in federal court in Waco, Mango approached a trial witness and instructed the witness not to testify against defendant Christopher Wilson. The witness told deputy U.S. Marshals that Mango gave the witness an intimidating look, which made the witness feel threatened and uncomfortable. The witness took the stand during trial and testified but failed to identify Christopher Wilson, even though they were neighbors.
Mango’s intimidation tactics also included accosting the prosecutor trying the case and intentionally following another government witness to the lobby of the United States Attorney’s Office.
On March 10, 2014, the jury found Christopher and his brother, Cornelius Wilson, guilty of multiple drug charges in connection with their cocaine distribution operation based in Killeen. On April 30, 2014, Christopher and Cornelius Wilson were sentenced to 35 years and 30 years in federal prison, respectively.
This case was investigated by the Federal Bureau of Investigation together with the United States Marshals Service. Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
KC Business Owners Sentenced for $1 Million Fraud Scheme of Debt-Stressed ClientsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the husband and wife owners and operators of a Kansas City, Mo., firm that promised to help financially-strapped clients get out of debt were sentenced in federal court today for defrauding 81 clients and the government of more than $1 million.
John Lee Norris, 43, and Julie Tina Hatcher, 39, both of Kansas City, Mo., were each sentenced by U.S. District Judge Brian C. Wimes to nine years in federal prison without parole. The court also ordered Norris to pay $1,081,658 in restitution and Hatcher $1,067,131.
Norris and Hatcher, who are married, operated Reaper Investment Partners, LLC; they also did business as Hydra International. In August 2011 they formed Death Productions LP, which maintained an office in Mission, Kan., before moving to Kansas City, Mo.
On May 28, 2014, both Norris and Hatcher pleaded guilty to participating in a conspiracy to defraud homeowners and other debtors who were in financial distress (as well as their victims’ lenders and the Federal Housing Administration) from August 2010 to June 28, 2013.
In addition to the conspiracy, Norris and Hatcher each pleaded guilty to one count of mail fraud. Hatcher also pleaded guilty to one count of Social Security disability fraud. Hatcher admitted that she failed to report her work activities and income while she received Social Security disability benefits from August 2010 through April 2012.
Norris and Hatcher recruited and targeted homeowners and others who were in financial difficulties with promises that they would be rescued from their financial problems, including foreclosure. Norris and Hatcher made promises and assurances to homeowners and other debtors that in exchange for a monthly payment RIP would stop and/or prevent the debtor from losing his or her home.
Norris and Hatcher admitted that they spent the payments received from RIP’s clients for their personal use. Dozens of client victims, as well as lenders, suffered hundreds of thousands of dollars in losses as a result of the conspiracy, including the loss of homes and vehicles. The federal indictment refers to victims from Lee’s Summit, Mo., St. Joseph, Mo., Gardner, Kan., Paducah, Ken., and North Wales, Penn.
A total of 81 individual client/victims have been identified, who claim to have lost a total of $759,344 in the fraud scheme. In addition to the individual victims, the Department of Housing and Urban Development sustained losses on the foreclosures of four properties in the total amount of $317,704. The total combined loss of the individual victims and HUD is thus approximately $1,091,070.
Among the examples of victims cited in court documents are a couple who came home to find a notice posted on their front door that the home had been sold on the courthouse steps and they had days to vacate; on moving day the husband had a stroke from the stress and died six months later. A single older woman who took in foster children lost her home in foreclosure and is now paying rent to the purchaser. Another older woman lost her home (which she had built for her specially) in foreclosure and is now living elsewhere.
Even after learning of several lost homes, RIP continued to accept monthly payments for services and continued to accept new clients with promises that clients would not lose their homes. They continued operating the scheme after they were contacted by law enforcement, after interviews by the FBI and for several months after they were indicted by a federal grand jury. When one victim told them he had been interviewed by the FBI, they reassured him and continued taking his $910 per month payment.
Norris and Hatcher promised RIP would refinance homeowners’ existing home loans at a significantly lower principle amount and low interest rate. They told homeowners RIP would get title to the properties. Upon entering into the contract, homeowners were to stop making payments to their lenders and instead pay the agreed amount to RIP. Homeowners were promised that when the refinanced RIP loan was paid off, they would get title to their property.
Norris and Hatcher claimed that RIP would draft, serve, file, and record legal forms, pleadings, and other documents; and would conduct necessary legal processes, contact the relevant parties, and implement administrative procedures to stop its clients from losing their home or property. When their clients contacted them and told them they had received notice that their homes were being foreclosed and that they had received eviction notices, Norris and Hatcher reassured them. Norris and Hatcher told their clients not to worry because these notices were part of the process, and RIP continued accepting payments. Even after several clients lost their homes to foreclosure, Norris and Hatcher reassured them that RIP would get the houses back. RIP continued to take payments from other homeowners.
After informing law enforcement that they were no longer doing business, Norris and Hatcher continued to accept payments from at least one client and reassured at least one client that they were still working on the homeowner’s behalf. After closing RIP, they continued to accept payments.
This case was prosecuted by Assistant U.S. Attorneys Linda Parker Marshall and Brian P. Casey. It was investigated by the FBI, the U.S. Secret Service, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Social Security Administration – Office of Inspector General, the Johnson County, Kan., District Attorney’s Office and the Kansas City, Mo., Police Department.Justice Department and City of Cleveland Agree to Reform Division of Police after Finding a Pattern or Practice of Excessive ForceRead the Press Release
Attorney General Eric Holder announced today that the Justice Department’s civil rights investigation into the use of force by the Cleveland Division of Police has found a pattern or practice of unreasonable and unnecessary use of force. To address these findings the Justice Department and the city of Cleveland have signed a statement of principles committing them to develop a court enforceable consent decree that will include a requirement for an independent monitor who will oversee and ensure necessary reforms.
“Accountability and legitimacy are essential for communities to trust their police departments, and for there to be genuine collaboration between police and the citizens they serve,” said Attorney General Eric Holder. “Although the issues in Cleveland are complex, and the problems longstanding, we have seen in city after city where we have been engaged that meaningful change is possible. There are real, practical and concrete measures that can be taken to ensure not only that police services are delivered in a constitutional manner, but that promote public safety, officer safety, confidence and collaboration, transparency, and legitimacy.”
The investigation, launched in March, 2013, assessed use of force practices of the Cleveland Division of Police following a number of high profile use of force incidents and requests from the community and local government to investigate the division. The investigation concluded that there is reasonable cause to believe that Cleveland police officers engage in a pattern or practice of unreasonable and in some cases unnecessary force in violation of the Fourth Amendment of the Constitution. That pattern or practice includes:
- The unnecessary and excessive use of deadly force, including shootings and head strikes with impact weapons;
- The unnecessary, excessive or retaliatory use of less lethal force including Tasers, chemical spray and fists;
- Excessive force against persons who are mentally ill or in crisis, including in cases where the officers were called exclusively for a welfare check; and
- The employment of poor and dangerous tactics that place officers in situations where avoidable force becomes inevitable.
After determining that a pattern or practice of unconstitutional conduct exists, the investigation assessed the causes for the pattern and developed recommended remedial action. The investigation concluded that Cleveland officers are not provided with adequate training, policy guidance, support, and supervision. Additionally, systems of review that would identify problems and correct institutional weaknesses and provide individual accountability are seriously deficient. The investigation found that division fails to:
- Adequately review and investigate officers’ uses of force;
- Fully and objectively investigate all allegations of misconduct;
- Identify and respond to patterns of at-risk behavior;
- Provide its officers with the support, training, supervision, and equipment needed to allow them to do their jobs safely and effectively;
- Adopt and enforce appropriate policies; and
- Implement effective community policing strategies.
The investigation also found that this pattern of excessive force has eroded public confidence in the police. The trust between the Cleveland Division of Police and many of the communities it serves is broken. As a result, public safety suffers and the job of delivering police services is more difficult and more dangerous. Throughout the investigation, the Department of Justice provided its observations and concerns to the city, and in response, the division has begun to implement a number of remedial measures, however much more work is needed. This afternoon Attorney General Eric Holder, Acting Assistant Attorney General Vanita Gupta and U.S. Attorney Steven Dettelbach will host a joint meeting with community leaders, law enforcement officials and elected officials to discuss how to improve their working relationship and address the problems and challenges identified by the Department of Justice.
“We look forward to working together with the city of Cleveland, members of the Cleveland community and Cleveland police officers to address the deficiencies that have led to this pattern of unnecessary and excessive force,” said Acting Assistant Attorney General Gupta. “Together, we can build confidence in the division that will ensure compliance with the Constitution, improve public safety and make the job of delivering police services safer and more effective.”
“Our independent investigation, conducted at the request of the Mayor and others, revealed troubling patterns of the use of force in the Cleveland Division of Police,” said U.S. Attorney Dettelbach. “We applaud the division and the city for beginning to implement necessary reforms and are pleased that the city has entered into a statement of principles agreeing to negotiate a consent decree with outside monitoring that will guide the development of a sustainable blueprint for reform. It will take a joint effort by all stakeholders to ensure that this critical initiative is a success.”
The investigation was conducted jointly by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the Northern District of Ohio. The investigation involved an in-depth review of thousands of pages of documents, including written policies and procedures, training materials, and internal reports, data, video footage and investigative files. Department of Justice attorneys and investigators also conducted interviews with officers, supervisors and command staff, and city officials; and spoke with hundreds of community members and local advocates. This investigation was separate from any criminal investigation of any specific incident of alleged misconduct.
Individuals who wish to have input into developing the reforms or who have information relevant to the Justice Department's investigation into the use of force by the Cleveland Division of Police are encouraged to contact us by email at community.cleveland @usdoj.gov or by calling our toll free number, (202) 307-6479.
Read a copy of the Executive Summary here
Leer una copia del resumen ejecutivo aquí
Read a copy of the Findings Letter here
Read a copy of the Statement of Principles here
Lea una copia de la Declaración de Principios aquí
Justice Department and City of Cleveland Agree to Reform Division of Police After Finding a Pattern or Practice of Excessive ForceRead the Press Release
Attorney General Eric Holder announced today that the Justice Department’s civil rights investigation into the use of force by the Cleveland Division of Police has found a pattern or practice of unreasonable and unnecessary use of force. To address these findings the Justice Department and the city of Cleveland have signed a statement of principles committing them to develop a court enforceable consent decree that will include a requirement for an independent monitor who will oversee and ensure necessary reforms.
“Accountability and legitimacy are essential for communities to trust their police departments, and for there to be genuine collaboration between police and the citizens they serve,” said Attorney General Eric Holder. “Although the issues in Cleveland are complex, and the problems longstanding, we have seen in city after city where we have been engaged that meaningful change is possible. There are real, practical and concrete measures that can be taken to ensure not only that police services are delivered in a constitutional manner, but that promote public safety, officer safety, confidence and collaboration, transparency, and legitimacy.”
The investigation, launched in March, 2013, assessed use of force practices of the Cleveland Division of Police following a number of high profile use of force incidents and requests from the community and local government to investigate the division. The investigation concluded that there is reasonable cause to believe that Cleveland police officers engage in a pattern or practice of unreasonable and in some cases unnecessary force in violation of the Fourth Amendment of the Constitution. That pattern or practice includes:
-
The unnecessary and excessive use of deadly force, including shootings and head strikes with impact weapons;
-
The unnecessary, excessive or retaliatory use of less lethal force including Tasers, chemical spray and fists;
-
Excessive force against persons who are mentally ill or in crisis, including in cases where the officers were called exclusively for a welfare check; and
-
The employment of poor and dangerous tactics that place officers in situations where avoidable force becomes inevitable.
After determining that a pattern or practice of unconstitutional conduct exists, the investigation assessed the causes for the pattern and developed recommended remedial action. The investigation concluded that Cleveland officers are not provided with adequate training, policy guidance, support, and supervision. Additionally, systems of review that would identify problems and correct institutional weaknesses and provide individual accountability are seriously deficient. The investigation found that division fails to:
-
Adequately review and investigate officers’ uses of force;
-
Fully and objectively investigate all allegations of misconduct;
-
Identify and respond to patterns of at-risk behavior;
-
Provide its officers with the support, training, supervision, and equipment needed to allow them to do their jobs safely and effectively;
-
Adopt and enforce appropriate policies; and
-
Implement effective community policing strategies.
The investigation also found that this pattern of excessive force has eroded public confidence in the police. The trust between the Cleveland Division of Police and many of the communities it serves is broken. As a result, public safety suffers and the job of delivering police services is more difficult and more dangerous. Throughout the investigation, the Department of Justice provided its observations and concerns to the city, and in response, the division has begun to implement a number of remedial measures, however much more work is needed. This afternoon Attorney General Eric Holder, Acting Assistant Attorney General Vanita Gupta and U.S. Attorney Steven Dettelbach will host a joint meeting with community leaders, law enforcement officials and elected officials to discuss how to improve their working relationship and address the problems and challenges identified by the Department of Justice.
“We look forward to working together with the city of Cleveland, members of the Cleveland community and Cleveland police officers to address the deficiencies that have led to this pattern of unnecessary and excessive force,” said Acting Assistant Attorney General Gupta. “Together, we can build confidence in the division that will ensure compliance with the Constitution, improve public safety and make the job of delivering police services safer and more effective.”
“Our independent investigation, conducted at the request of the Mayor and others, revealed troubling patterns of the use of force in the Cleveland Division of Police,” said U.S. Attorney Dettelbach. “We applaud the division and the city for beginning to implement necessary reforms and are pleased that the city has entered into a statement of principles agreeing to negotiate a consent decree with outside monitoring that will guide the development of a sustainable blueprint for reform. It will take a joint effort by all stakeholders to ensure that this critical initiative is a success.”
The investigation was conducted jointly by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the Northern District of Ohio. The investigation involved an in-depth review of thousands of pages of documents, including written policies and procedures, training materials, and internal reports, data, video footage and investigative files. Department of Justice attorneys and investigators also conducted interviews with officers, supervisors and command staff, and city officials; and spoke with hundreds of community members and local advocates. This investigation was separate from any criminal investigation of any specific incident of alleged misconduct.
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Justice Department Settles Lawsuit Against California Employer over Discrimination Against Foreign-Born WorkersRead the Press Release
The Justice Department announced today that it reached a settlement with Life Generations Healthcare LLC, doing business as Generations Healthcare (GHC), a company that runs assisted living facilities throughout California. The settlement follows an administrative court decision finding that GHC engaged in a pattern and practice of discrimination against individuals born abroad, including naturalized U.S. citizens, in violation of the Immigration and Nationality Act.
On Sept. 30, 2011, the Justice Department filed a lawsuit against GHC alleging that the company discriminated against authorized workers born abroad. Specifically, GHC required these immigrants to produce more documents to establish authority to work than it required of citizens born in the United States. After a trial, the Office of the Chief Administrative Hearing Officer -- the administrative court that hears such claims -- ruled in the department’s favor.
Today’s settlement resolves the remedial issues in the case, which the court did not address in its earlier ruling. Under the terms of the settlement agreement, GHC will pay a total of $119,313 in back pay to two victims of discrimination, and $88,687 in civil penalties to the United States. GHC will also be subject to monitoring of its hiring practices for a period of two years.
“Both the court’s ruling and this settlement underscore the importance of complying with the anti-discrimination provision of the Immigration and Nationality Act and the consequences for failing to do so," said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “Employers should review their hiring policies and employment eligibility verification practices to ensure that they comply with federal anti-discrimination law.”
The case was litigated and settled by the department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), which is responsible for enforcing the anti-discrimination provision of the Immigration and Nationality Act. The statute prohibits employers from placing additional documentary burdens on work-authorized applicants or employees during the employment eligibility verification process because of their citizenship status or national origin. The statute also prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee, as well as retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Justice Department Selects First Ever Indian Country Legal Fellow to Serve in the District of ArizonaRead the Press Release
Attorney General Eric H. Holder Jr., announced today that Charisse Arce, of Bristol Bay, Alaska, has been selected as the first-ever Gaye L. Tenoso Indian Country Legal Fellow, part of the Attorney General’s Honors Program.
Arce was chosen from a large pool of highly-qualified applicants and will be appointed to a three-year term position in the United States Attorney’s Office in the District of Arizona, where she will be assigned to the district’s Indian Country Crime Section. Arce will also serve a portion of her appointment in the Pascua Yaqui tribal prosecutor’s office.
This is the first year of the Gaye L. Tenoso Indian Country Fellowship within the Attorney General’s Honors Program, and it is awarded to an extraordinarily well-qualified new attorney with a deep interest in and enthusiasm for improving public safety in tribal communities.
“This is an investment in the future of the department, named for a beloved and extraordinary member of our DOJ family – and an enrolled member of the Citizen Potawatomi Nation of Indians – who sadly passed away this summer, but devoted her career to advancing the federal government’s relationships with sovereign tribes. This program exemplifies how we are seeking to institutionalize the department’s commitment to justice in Indian country,” said Attorney General Holder. “The Indian Country fellowship will give each candidate an opportunity to gain significant experience and exposure to the work of the Justice Department in Indian country, and in the long term help us build a cadre of legal talent in the department with expertise in federal Indian law.”
“We are excited to welcome Charisse Arce to the District of Arizona as the first Gayle Tenoso Indian Country Fellowship recipient,” said U.S. Attorney for the District of Arizona John S. Leonardo. “The U.S. Attorney’s Office is committed to making this inaugural fellowship a success for all involved and a model for future fellowships in Arizona and in districts around the country. Ms. Arce has demonstrated a strong commitment to American Indian and Alaska Native communities, and we look forward to having her in our Tucson office and working closely with the Pasqua Yaqui Tribe.”
Ms. Arce is currently a fellow at Bristol Bay Native Corporation, one of thirteen Alaska Native Regional Corporations created under federal law. Ms. Arce received her law degree from Seattle University School of Law, where she was a member of the editorial staff for and published an article in the American Indian Law Journal. During law school, Ms. Arce served as an extern for the United States Attorney’s Office for the Western District of Washington, for the Washington State Supreme Court, and for the Department of Interior’s Office of the Solicitor. She also worked as a legal research assistant for a law professor and for a private law firm. Prior to law school, Ms. Arce graduated, cum laude, with a B.A. in Marketing from Seattle University.
The Pascua Yaqui Tribe, located near Tucson, Arizona, is one of three tribes – along with the Tulalip Tribes of Washington, and the Umatilla Tribes of Oregon – participating in a pilot project under the 2013 reauthorization of the Violence Against Women Act (VAWA 2013) to exercise special domestic violence criminal jurisdiction over certain defendants, regardless of their Indian or non-Indian status, who commit acts of domestic violence or dating violence or violate certain protection orders in Indian country. The pilot is authorized by the Department of Justice. This new law generally takes effect on March 7, 2015, but also authorizes the pilot project to allow certain tribes to begin exercising special jurisdiction sooner. Since the pilots began, more than 20 criminal cases have been charged by tribal prosecutors against non-Indian domestic violence offenders, and several have been convicted of domestic violence crimes.
“The Pascua Yaqui Tribe is pleased to have the opportunity to partner with the District of Arizona U.S. Attorney’s Office and the Attorney General’s Honors Program, through the Gaye L. Tenoso Indian Country Fellowship,” said Pascua Yaqui Tribal Chairman Peter Yucupicio. “We welcome the new Department of Justice fellow and look forward to a productive partnership as we fight violent crime, work to keep our community safe, and continue to implement the Violence Against Women Act (VAWA), and Special Domestic Violence Criminal Jurisdiction (SDVCJ).”
The Fellowship is named in honor of Department of Justice attorney, the late Gaye L. Tenoso. Gaye’s distinguished service to the Department and the people it serves spanned 30 years. For the last six years of her life Gaye served as the Deputy Director the Office of Tribal Justice. Gaye’s expertise in Federal Indian law and knowledge of tribes enabled her to be an exceptionally effective advisor on litigation and policy matters. She worked tirelessly to ensure that specific protections for American Indian women were included in VAWA 2013. Gaye also mentored many legal interns during her time at the Office of Tribal Justice, and was an inspiration and guide who left a deep impression on many young attorneys.
Read more about the work of the Department of Justice in Indian Country at www.justice.gov/tribal/accomplishments
Jury Convicts Syracuse Man of Drug and Gun OffensesRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announces that SHAEEM GRADY(A/K/A SHAHEEM GRADY) was found guilty of three felony offenses following a three day jury trial in federal court in Syracuse: Possession with the Intent to Distribute Cocaine Base, in violation of Title 18, United States Code, Section 841(a)(1) and (b)(1)(C); Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c)(1)(A); and Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1) and 924(a)(2). GRADY is facing a statutory mandatory minimum sentence of five years for the conviction of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. He is also facing a maximum term of incarceration of twenty years for the Possession with Intent to Distribute Cocaine Base count, and a maximum term of incarceration of ten years for the Felon in Possession of a Firearm count. Grady will be sentenced in April 2015, before the Honorable Judge Frederick J. Scullin, Jr., in Syracuse, New York.
GRADY, 29, of Syracuse, was arrested on March 22, 2013, when police officers observed a baggie of crack cocaine in his lap as he sat in the passenger seat of a car that was illegally parked. Police attempted to place GRADY under arrest when he violently resisted while attempting to gain access to the center console of the vehicle. A Glock, model 19, 9 mm handgun with 7 rounds in the magazine was located in the center console. GRADY continued resisting and reaching for the console while simultaneously yelling to the driver of the vehicle to “pull off” while officers were located halfway inside the passenger doorway. Officers were able to take GRADY into custody and during a search incident to his arrest, recovered an additional baggie with cocaine residue, a steak knife from his front pants pocket, and $90.00. GRADY was prohibited from possessing a firearm due to a 2002 conviction for Criminal Possession of a Weapon in the Second Degree.
This prosecution resulted from an investigation conducted by the Syracuse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Geoffrey Brown. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Joplin Man Sentenced for Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for fraudulently receiving federal disaster benefits following the tornado that struck the city of Joplin on May 22, 2011, killing 158 people and causing more than $2.9 billion in damage.
Fred Lewis Pickett, Jr., 35, was sentenced by U.S. District Judge M. Douglas Harpool to two years in federal prison without parole. The court also ordered Pickett to pay $5,147 in restitution.
Pickett pleaded guilty on July 14, 2014, to one count of disaster fraud. Pickett admitted that he fraudulently received disaster benefits by claiming that he relocated from one primary residence to another primary residence in Joplin because of damage from the tornado. To substantiate his claim of relocation, Pickett submitted several leases and rent receipts bearing the signature of his purported landlord, Dustin Showalter, 36, of Joplin.
On the basis of Pickett’s representations, the Federal Emergency Management Agency (FEMA) authorized four rental assistance payments totaling $5,147. However, Pickett’s claim was false. Pickett did not relocate and Showalter was not his landlord. In fact, Showalter had been banned from the residence, which had been occupied by Showalter’s mother before she was relocated to a nursing home. Pickett and Showalter fabricated the documents Pickett used to substantiate his claim.
Showalter was sentenced to 15 months in federal prison and ordered to pay $938 in restitution after he pleaded guilty, in a separate case, to one count of disaster fraud. Showalter admitted that he committed disaster fraud by making false statements to FEMA in an application for disaster benefits. Showalter fraudulently received disaster benefits by claiming to have lived at a residence in Joplin at the time of the May 22, 2011, tornado, when in fact he did not live at that residence. On the basis of his application to FEMA, Showalter received $938 to which he was not entitled.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.Jacksonville Men Sentenced in Tax Refund Fraud SchemeRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Roberto Bisono and Juan Miguel Ruiz for their roles in a conspiracy involving theft of government property and cashing numerous false and fraudulently filed federal income tax refund checks. Bisono and Ruiz were sentenced to 18 months and 15 months in federal prison, respectively. Both were also ordered to pay $711,000 in restitution to the Internal Revenue Service.
According to court records, between November 2011 and April 2012, Bisono obtained U.S. Treasury checks that had been mailed to bogus taxpayers in the Bronx, New York. These checks were the results of false and fraudulently filed tax returns. In November 2011, Bisono deposited the first seven checks into a business bank account that belonged to Ruiz. He later furnished the remaining 104 checks to Ruiz, who operated a check cashing business in Jacksonville. Ruiz deposited the additional checks into his business bank account and wrote checks totaling over $227,000 to Bisono and others associated with Bisono.
This case was investigated by the Jacksonville office of the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Dale R. Campion.
Jackson County Woman Sentenced on Bank Embezzlement ChargesRead the Press Release
Follow @SDILNewsA Jackson County woman was sentenced today to federal prison on bank embezzlement charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Buffy A. Bastien, 42, of Ava, IL, was sentenced to 24 months in federal prison, to be followed by 5 years of supervised release. Bastien had previously pleaded guilty to a one count Indictment which charged that from about 2010, to on or about February 23, 2014, in Jackson County, Bastien, being an officer and employee of The Bank of Carbondale, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud The Bank of Carbondale, did willfully embezzle the sum of approximately $229,221.80 of the moneys or funds entrusted to the custody or care of The Bank of Carbondale. Bastien has already repaid $48,721.80 towards restitution. The Court ordered Bastien to pay the remaining $180,500 still owed in restitution.
The investigation in this case was conducted by the Federal Bureau of Investigation.
The case is being handled by Assistant United States Attorney George Norwood.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Strong in Great Falls on December 4, 2014, and entering pleas of Not Guilty were:
• EVERETT SKUNKCAP, a 75-year-old resident of Browning, appeared on charges of unlawful taking of a threatened species. If convicted of the most serious charges contained in the indictment, SKUNKCAP faces 6 months in prison and $25,000 in fines. The case was investigated by the U.S. Fish and Wildlife Service. PACER Case Reference: 14-89
Appearing before U.S. Magistrate Judge Lynch in Missoula on December 3, 2014, and entering pleas of Not Guilty were:
• KELLY JAMES ENGELHARDT, a 34-year-old resident of Havre, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, ENGELHARDT faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA. PACER Case Reference: 14-44
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case. To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Husband Goes to Jail for Gun CrimeRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Lee McDaniel Parker, age 33, from Macon, Georgia, was sentenced to serve nine years (108 months) in prison following his earlier plea of guilty to possession of a firearm by a prohibited person. The sentence was handed down by the Honorable Marc T. Treadwell, United States District Judge, in Macon, GeorgiaOn December 3, 2013, at approximately 10:00 P.M., Mr. Parker returned to the Macon residence he shared with his wife and her three teenage children. Mr. Parker was subject to a court order restraining him from using or threatening to use physical force against his wife. That order stemmed from a 2012 incident where Parker pointed a gun at his wife, who was then his girlfriend. The order also prohibited Mr. Parker from possessing a firearm. Before returning home on December 3rd, Mr. Parker had attended court ordered anger management classes and had also been drinking. An argument ensued between the couple. Mr. Parker retrieved a 9mm handgun from the mattress of the bedroom and returned to the living room where he shot his wife in the hip. Mr. Parker then put on his shoes and a shirt and left in his vehicle. The police responded and Mr. Parker was apprehended by the Macon Police Department a few blocks away without incident. Hours later, during a videotaped interview by detectives, Parker boasted that he shot his wife and would do it again.
Judge Treadwell departed upwards of the 63-78 months sentencing guideline range and sentenced Mr. Parker to 108 months.
US Attorney Moore said, “The possession, much less the use, of a firearm by a prohibited person is a sure way to wind up in federal prison. Through ongoing cooperation with the local prosecutors in the District Attorney’s Office, Mr. Parker will be held accountable for shooting his wife and for using a gun to commit the crime.”
The case was investigated by the Macon Police Department. Assistant U.S. Attorney Sonja B. Profit handled the prosecution for the United States.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office (478/621-2603).Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE LEMUS-HERNANDEZ, age 28, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about October 30, 2014, JOSE LEMUS-HERNANDEZ was found in the United States after having been officially deported and removed on or about April 16, 2012.
JOSE LEMUS-HERNANDEZ faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Susie Morgan set sentencing for April 8, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Honduran National Pleads Guilty to Illegally Reentering United StatesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSUE ALEXANDER HERNANDEZ-MARTINEZ, age 29, a citizen of Honduras, pled guilty today to a one-count Indictment for illegal reentry of a removed alien.
According to the Indictment, on or about August 26, 2014, HERNANDEZ-MARTINEZ was found in the United States after having been officially deported and removed on three prior occasions – June 29, 2006, December 14, 2006, and April 20, 2012.
HERNANDEZ-MARTINEZ faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Lance M. Africk set sentencing for March 12, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Honduran National Charged with Illegal Reentry into the United StatesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EDUIN ALEXANDER BETANCOURTH-SALGADO, age 26, from Honduras, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.
According to the Indictment, BETANCOURTH-SALGADO was found by Homeland Security Investigation agents in the Eastern District of Louisiana after records showed on April 15, 2011, he had been previously deported from the United States to Honduras.
If convicted, BETANCOURTH-SALGADO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of Homeland Security Investigation agents in investigating this matter. Assistant U.S. Attorney Rick Veters is in charge of the prosecution.
Hollywood Man Sentenced to Life Imprisonment for Kidnapping and Sex Trafficking by ForceRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Frank Fernandez, Chief, Hollywood Police Department, announce that Shaun Eric McKinley, 35, of Hollywood, Florida, was sentenced to life imprisonment.
On September 18, 2014, a jury found McKinley guilty of one count of kidnapping and one count of sex trafficking by force. According to the evidence presented at trial, in December 2013, McKinley met a 28 year old female outside his home located in Hollywood. Within three days of meeting her, McKinley was acting as her pimp and physically assaulting her for what he saw as minor infractions, such as returning home late from a prostitution date. Thereafter, the victim was required to meet all customers at McKinley’s home where he could keep an eye on her. The victim averaged approximately 5-7 dates a day, 7 days a week, with all the earnings going to McKinley.
The victim first attempted to leave McKinley in February 2014, but he quickly found her. When he got her home, by dragging her for blocks by the hair, McKinley punished her by making her strip naked, covering her head with a pillow case, hog-tying her with extension cords and beating her with a board. The victim waited until April to get up the courage to attempt another escape, this one successful. Unfortunately, on May 18, 2014, McKinley lured her out of hiding using a ruse to get her into a dark alley, where he physically assaulted her, threw her into a car and drove away with her. The kidnapping was captured on a surveillance video from a nearby business and was played for the jury. The victim was able to escape only when McKinley stopped at a convenience store for a cigar, and left his friend in charge of watching her. That friend testified that after McKinley was out of sight he unlocked the car door so the victim could run. After flagging down a passing ambulance, the victim was taken to Memorial Regional Hospital where she was treated for her injuries, which included a fractured front tooth, a lip laceration and head contusions. Still undeterred, and fearing the victim would talk to police, McKinley showed up at the hospital looking for her, dressed in blood covered clothes. A concerned nurse and an alert Hollywood Police Officer working a detail kept McKinley from reaching the victim, and McKinley was placed under arrest.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the BSO, and the Hollywood Police Department. The case was prosecuted by Assistant U.S. Attorneys Corey Steinberg and Paul Schwartz.
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.
Hartford Man Admits Role in 2010 MurderRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KERONN MILLER, also known as “Fresh,” 24, of Hartford pleaded guilty today in Hartford federal court to aiding and abetting in the murder of Ian Francis of Hartford.
According to court documents and statements made in court, on December 21, 2010, Ian Francis was shot multiple times while sitting in his vehicle on Sigourney Street in Hartford. Francis died as a result of his injuries on January 15, 2011.
In pleading guilty, MILLER admitted that he enticed Francis to Sigourney Street understanding that the plan was to murder Francis when he arrived there. MILLER also admitted that he participated in this plot in order to assist someone else who wanted to prevent a third person from communicating with federal law enforcement and to prevent a person’s attendance at an official federal proceeding.
MILLER pleaded guilty to one count of witness tampering – second degree murder, an offense that carries a maximum term of imprisonment of life. Under the terms of the plea agreement, if accepted by U.S. District Judge Michael P. Shea, MILLER faces a sentence of 168 to 210 months of imprisonment. Sentencing is scheduled for May 26, 2015.
“There is no higher priority for the U.S. Attorney’s Office than addressing violent crime in our cities and prosecuting violent offenders,” stated U.S. Attorney Daly. “This case is particularly important to the federal authorities as the investigation made clear that the victim was killed as part of a plan to undermine and obstruct federal law enforcement proceedings. We commend the FBI Task Force and the Hartford Police Department for their excellent investigative work in bringing to justice one of those responsible for this murder. We also thank them for their continued and diligent work in this ongoing investigation.”
MILLER has been detained since his arrest on November 7, 2012.
A trial in the matter of MILLER’s co-defendant is scheduled for March 2015.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes and Gang Task Force and the Hartford Police Department’s Major Crimes Division. The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Jennifer Laraia.
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[email protected]Harrisburg Man Sentenced to 168 Months' Imprisonment for Cracker Barrel Restaurant Armed RobberyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nathaniel Mosley, age 44, of Harrisburg, Pennsylvania was sentenced by United States District Court Judge Sylvia H. Rambo on December 3, 2014 to 168 months’ imprisonment, a $1,200 fine and three years of supervised release following his release from imprisonment after pleading guilty to armed robbery and use of a firearm during a crime of violence in June 2014.
According to U.S. Attorney Peter Smith, on December 3, 2013, Mosley along with co-defendants Torey Dobbin and George Stoney robbed the Cracker Barrel restaurant on Brindle Road in Harrisburg at gunpoint. The Susquehanna Township Police Department was alerted after a caller advised that individuals were inside the building robbing the restaurant. Officers arrived almost immediately and set up a perimeter around the building. Shortly thereafter three men wearing masks exited the restaurant and fled on foot. After a brief pursuit, all three were apprehended. Officers located the stolen money and seized three firearms.
Both Dobbin and Stoney have pled guilty and are awaiting sentencing.
The investigation was conducted by the Federal Bureau of Investigation Capital City Safe Streets Task Force and the Susquehanna Township Police Department. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Hammond Couple Sentenced for Conspiracy to Make, Possess and Pass Counterfeit U.S. CurrencyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSHUA ORSO, age 27, and BRITTANY WATTIGNEY, age 25, both of Hammond, were sentenced today for conspiracy to make, possess, and pass counterfeit U.S. currency.
U.S. District Judge Jane Triche Milazzo sentenced ORSO and WATTINGNEY each to 18 months incarceration followed by three years of supervised release.
According to court documents, law enforcement officers, utilizing a cooperating individual, conducted an undercover controlled purchase of $2,000 worth of counterfeit U.S. currency in exchange for $350 of genuine U.S. currency from ORSO and WATTIGNEY at their residence. A search warrant executed at their residence resulted in the seizure of evidence that was used to manufacture the counterfeit currency. ORSO and WATTIGNEY were arrested by law enforcement officers, who seized additional counterfeit U.S. currency.
U.S. Attorney Polite praised the work of the U.S. Secret Service, New Orleans Field Office, the Louisiana State Police, and the Hammond Police Department for investigating this matter. Assistant United States Attorney Loan "Mimi" Nguyen was in charge of the prosecution.
Greene County Man Charged with Damaging Gas Well FacilityRead the Press Release
PITTSBURGH - A resident of Greene County has been indicted by a federal grand jury in Pittsburgh on charges of damage of an energy facility, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Dec. 2, named Brian M. Harbarger, 35, as a defendant.
According to the information presented to the court, Harbarger damaged the Burchianti Pad, a pad of five natural gas wells operated by Chevron North America Exploitation and Production Company, a division of Chevron USA, Inc.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Grand Isle Man Sentenced for Assaulting Two African-American Women Because of Their Race and Employment StatusRead the Press Release
U.S. Attorney Kenneth A. Polite announced that Grand Isle businessman JOSH JAMBON was sentenced to 1 year probation on each count for assaulting two African-American women because of both their race and employment status. One condition of probation is that JAMBON serve 25 consecutive weekends days incarcerated at the Bureau of Prisons. In addition to the probation, JAMBON was fined $10,000. The victims, identified as M.R. and N.S., were members of a Hurricane Isaac relief crew.
During a plea hearing on July 2, 2014, JAMBON admitted that he assaulted the two female African-American workers because of both their race and employment status. On Sept. 18, 2012, in Grand Isle, JAMBON approached a work crew tasked with cleaning up debris from Hurricane Isaac. JAMBON was upset because he believed a different work crew had damaged his property, and he asked to speak to the crew’s supervisor. During this interaction, JAMBON used racial slurs against the female African-American crew members. JAMBON then approached one of the women, N.S., and hit her in the face. He then hit the other woman, M.R., in the face. When JAMBON saw a third crew member, B.W., filming the incident on her cell phone, JAMBON initiated a physical struggle with B.W. in an attempt to take her cell phone so that he could delete the video.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division and Assistant United States Attorney Matthew Chester of the U.S. Attorney’s Office for the Eastern District of Louisiana.
Grand Isle Man Pleads Guilty to Mail Fraud in Connection with GCCF ClaimRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONNIE P. VEDROS, 52, of Grand Isle, pled guilty today to one count of mail fraud.
According to court documents, VEDROS’s charges stem from an application he submitted to the Gulf Coast Claims Facility (GCCF) in the aftermath of the explosion and oil spill at the Deepwater Horizon oil rig. VEDROS claimed to have lost earnings as a commercial fisherman and engineer as a result of the oil spill and provided documentation to prove his loss. In reality, as set forth in the factual basis, VEDROS was neither a commercial fisherman nor employed as an engineer at the time of the disaster and the documentation submitted had been falsified. As a result of VEDROS’s false application, he received approximately $30,173.56 in funds from the GCCF he was not entitled to.
VEDROS faces a maximum penalty of twenty years imprisonment, up to three years of supervised release, a $250,000 fine, and a $100 special assessment. U.S. District Judge Lance M. Africk scheduled sentencing for March 12, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the U.S. Secret Service in investigating this case. Assistant U. S. Attorney Matt Chester is in charge of the prosecution.
Georgia Resident Sentenced in Nebraska for Filing False Liens Against Federal OfficialsRead the Press Release
A Pelham, Georgia, man was sentenced on Dec. 2 in the U.S. District Court for the District of Nebraska to serve 10 years in prison followed by three years of supervised release for filing false retaliatory liens against federal government officials, announced Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division.
On Sept. 4, David Randall Due was convicted by a jury on all seven counts charged in the superseding indictment.
At trial, the evidence showed that David Randall Due and Donna Kozak, a resident of La Vista, Nebraska, and member of the sovereign citizen group “Republic for the united States of America,” conspired and agreed to retaliate against several federal officials in Nebraska by filing false liens claiming false interests in the officials’ property for millions of dollars. Due prepared the false liens in Georgia and Kozak filed them in Nebraska counties. Kozak and Due filed the liens in retaliation for the federal criminal tax prosecution and trial convictions of associates David and Bernita Kleensang. Each targeted federal official had some connection to either a tax prosecution of David and Bernita Kleensang in June 2012 or the subsequent indictment of Kozak for tax offenses.
In September 2012, Kozak and Due filed one $19 million false lien in Boyd County, Nebraska, on property owned by the federal U.S. District Court judge who presided over the Kleensang trial. Kozak was subsequently indicted by a federal grand jury for filing the false lien and for other tax-related charges. While she was on release pending trial, Due provided her with five more false liens, which she filed in Washington County, Nebraska, on properties owned by a second federal U.S. District Court judge, the U.S. Attorney, two Assistant U.S. Attorneys, and an Internal Revenue Service-Criminal Investigation (IRS-CI) special agent.
On Aug. 1, Kozak was tried and convicted by a jury in the U.S. District Court for the District of Nebraska. Her sentencing is scheduled for Jan. 6, 2015.
This case was investigated by special agents of the FBI and IRS-CI, and was prosecuted by trial attorneys from the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Fresno Man Indicted for Filing False Tax Returns Seeking More Than $600,000 in RefundsRead the Press Release
FRESNO, Calif. — A grand jury indicted Mark Threet, 52, of Modesto, today, charging him with making a false claim for a tax refund, United States Attorney Benjamin B. Wagner announced.
According to court documents, Threet filed more than 860 false tax returns for himself and others for the tax years 2008 to 2011. Each return included false statements regarding income, tax credits, and refund amounts. In sum, the returns claimed more than $600,000 was claimed for these false tax refunds.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.
If convicted, Threet faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges against the defendant are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Men Indicted on Charges in 2011 Kidnapping of Mother and Teenage Son in the PhilippinesRead the Press Release
Four Philippine nationals were indicted today on conspiracy, hostage-taking, and weapons charges stemming from the kidnapping in the Philippines of a mother and her then 14-year-old son in July of 2011. The indictment alleges that the group held the mother for approximately 82 days and the son for approximately 151 days, and forced the family to pay ransom for their return. The victims, both U.S. nationals, were in the Philippines on a family trip.
The indictment, returned by a grand jury in the U.S. District Court for the District of Columbia, was announced by John P. Carlin, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Stephanie Yonekura, Acting U.S. Attorney for the Central District of California, and Bill L. Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office.
The four men are identified as John Does, but are also known as Furuji Indama, Radzmil Jannatul, Muadz, and Abu Basim. Each is charged with one count of conspiracy to commit hostage-taking, two counts of hostage-taking, one count of conspiracy to use, carry, brandish and discharge a firearm during a crime of violence and one count of using, carrying, brandishing and discharging a firearm during a crime of violence and aiding and abetting and causing an act to be done. None of the defendants is in custody.
If extradited to the United States and convicted of these charges, each defendant would face a maximum term of life in prison.
“The four men indicted are alleged to have been involved in the hostage-taking of two U.S. citizens vacationing in the Philippines more than three years ago,” said Assistant Attorney General Carlin. “Hostage-takers who target our citizens with captivity and violence anywhere in the world should know that we will pursue them and seek to bring them to justice, however long it takes.”
“While on a family vacation overseas, a Virginia mother and her teenage son were captured, forced into boats at gunpoint, and taken to an island where they were held hostage for ransom,” said U.S. Attorney Machen. “This indictment charges four Philippine men for their alleged roles in taking these Americans hostage and holding them captive for months in terrifying conditions. We remain focused on apprehending and extraditing these men so that they can face these charges in a courtroom in our nation’s capital.”
“The victim family in this case experienced great suffering when a mother and son were violently kidnapped and held by the defendants overseas, while family members in the United States endured for months without knowing the fate of their loved ones,” said Assistant Director Lewis, of the FBI’s Los Angeles Field Office. “It should be noted that, following the mother’s release, her son was held for months before valiantly escaping his captors. The charges in this case are the result of a joint investigation by the FBI and law enforcement partners in the Philippines, one of many countries with whom we work to identify those responsible for victimizing American citizens abroad and build cases for potential prosecution.”
According to the indictment, the defendants and co-conspirators kidnapped the two United States nationals on or about July 12, 2011. The woman, then age 43, and her then 14-year-old son were taken hostage from a beach cottage on Tictabon Island, several miles from the mainland of Zamboanga City in the southern Philippines.
Both hostages were forced into boats at gunpoint, brought to another island, Basilan Island, and forced to march to a camp where they were held until September 2011. The two were then forced to march to another camp, also on Basilan Island.
The indictment alleges that the defendants and their co-conspirators threatened to kill the hostages, and that they used firearms, including handguns, semiautomatic assault weapons, and destructive devices to keep and detain them. The indictment also alleges that the group demanded ransom from a family member of the hostages and did, in fact, cause a family member to make bank transfers as ransom payments.
The group released the mother on or about Oct. 2, 2011, but retained her teenage son as a hostage, and demanded that she pay a large ransom for his release. The son eventually escaped from his captivity on or about Dec. 9, 2011.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws. Every defendant is presumed innocent until and unless found guilty.
The charges were the result of an investigation led by the FBI’s Los Angeles Field Office. The case is being prosecuted by Assistant U.S. Attorneys Courtney Spivey Urschel and Thomas A. Gillice of the U.S. Attorney’s Office for the District of Columbia, Assistant U.S. Attorney Christopher Grigg of the U.S. Attorney’s Office for the Central District of California, and Trial Attorney T. J. Reardon III of the Counterterrorism Section of the National Security Division of the Department of Justice. Former Assistant U.S. Attorney Anthony Asuncion and Assistant U.S. Attorney George P. Varghese, now with the U. S. Attorney’s Office for the District of Massachusetts, investigated the case prior to indictment.
Four Men Indicted on Charges in 2011 Kidnapping of Mother and Teenage Son in the PhilippinesTwo U.S. Nationals Were Taken Hostage While on Family VacationRead the Press Release
WASHINGTON – Four Philippine nationals were indicted today on conspiracy, hostage-taking, and weapons charges stemming from the kidnapping in the Philippines of a mother and her then 14-year-old son in July of 2011. The indictment alleges that the group held the mother for approximately 82 days and the son for approximately 151 days, and forced the family to pay ransom for their return. The victims, both U.S. nationals, were in the Philippines on a family trip.
The indictment, returned by a grand jury in the U.S. District Court for the District of Columbia, was announced by John P. Carlin, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Stephanie Yonekura, Acting U.S. Attorney for the Central District of California, and Bill L. Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office.
The four men are identified as John Does, but are also known as Furuji Indama, Radzmil Jannatul, Muadz, and Abu Basim. Each is charged with one count of conspiracy to commit hostage-taking, two counts of hostage-taking, one count of conspiracy to use, carry, brandish and discharge a firearm during a crime of violence, and one count of using, carrying, brandishing and discharging a firearm during a crime of violence and aiding and abetting and causing an act to be done. None of the defendants is in custody.
If extradited to the United States and convicted of these charges, each defendant would face a maximum term of life in prison.
“While on a family vacation overseas, a Virginia mother and her teenage son were captured, forced into boats at gunpoint, and taken to an island where they were held hostage for ransom,” said U.S. Attorney Machen. “This indictment charges four Philippine men for their alleged roles in taking these Americans hostage and holding them captive for months in terrifying conditions. We remain focused on apprehending and extraditing these men so that they can face these charges in a courtroom in our nation’s capital.”
“The four men indicted are alleged to have been involved in the hostage-taking of two U.S. citizens vacationing in the Philippines more than three years ago,” said Assistant Attorney General Carlin. “Hostage-takers who target our citizens with captivity and violence anywhere in the world should know that we will pursue them and seek to bring them to justice, however long it takes.”
“The victim family in this case experienced great suffering when a mother and son were violently kidnapped and held by the defendants overseas, while family members in the United States endured for months without knowing the fate of their loved ones,” said Assistant Director Lewis, of the FBI’s Los Angeles Field Office. “It should be noted that, following the mother’s release, her son was held for months before valiantly escaping his captors. The charges in this case are the result of a joint investigation by the FBI and law enforcement partners in the Philippines, one of many countries with whom we work to identify those responsible for victimizing American citizens abroad and build cases for potential prosecution.”
According to the indictment, the defendants and co-conspirators kidnapped the two United States nationals on or about July 12, 2011. The woman, then age 43, and her then 14-year-old son were taken hostage from a beach cottage on Tictabon Island, several miles from the mainland of Zamboanga City in the southern Philippines.
Both hostages were forced into boats at gunpoint, brought to another island, Basilan Island, and forced to march to a camp where they were held until September 2011. The two were then forced to march to another camp, also on Basilan Island.
The indictment alleges that the defendants and their co-conspirators threatened to kill the hostages, and that they used firearms, including handguns, semiautomatic assault weapons, and destructive devices to keep and detain them. The indictment also alleges that the group demanded ransom from a family member of the hostages and did, in fact, cause a family member to make bank transfers as ransom payments.
The group released the mother on or about Oct. 2, 2011, but retained her teenage son as a hostage, and demanded that she pay a large ransom for his release. The son eventually escaped from his captivity on or about Dec. 9, 2011.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws. Every defendant is presumed innocent until and unless found guilty.
The charges were the result of an investigation led by the FBI’s Los Angeles Field Office. The case is being prosecuted by Assistant U.S. Attorneys Courtney Spivey Urschel and Thomas A. Gillice of the U.S. Attorney’s Office for the District of Columbia, Assistant U.S. Attorney Christopher Grigg of the U.S. Attorney’s Office for the Central District of California, and Trial Attorney T. J. Reardon III of the Counterterrorism Section of the National Security Division of the Department of Justice. Former Assistant U.S. Attorney Anthony Asuncion and Assistant U.S. Attorney George P. Varghese, now with the U. S. Attorney’s Office for the District of Massachusetts, investigated the case prior to indictment.
14-269Former Putnam County Sheriff’s Deputy Sentenced for Civil Rights ViolationsRead the Press Release
Deputy used excessive force on two occasions while on duty
TERRE HAUTE - Acting United States Attorney Josh J. Minkler announced this afternoon the sentencing of Terry Joe Smith, a/k/a T.J., age 38, of Greencastle, Indiana. Smith who served as a deputy with the Putnam County Sheriff’s Department was sentenced to 14 months by U. S. District Judge William T. Lawrence. Smith was found guilty after a jury trial in September of this year on two counts of deprivation of civil rights under color of law.
“The public has a right to expect better from their law enforcement officers,” said Minkler. “It is certainly a tragedy when a law enforcement officer with a family choses to violate the civil rights of our citizens, but it would be a far greater tragedy if T.J. Smith was not held fully accountable for his unlawful use of force in this case.”
Testimony at trial indicated that Smith used excessive force against citizens on two occasions in his capacity as a Putnam County Sheriff’s Deputy. These incidents occurred on West Stardust Road and at the Lazy Acres trailer park in Greencastle.
On one occasion Smith punched a victim in the face after other officers had secured the victim resulting in serious bodily injury. The second offense occurred at the Lazy Acres Trailer Park in Greencastle when Smith threw a handcuffed person to the ground and drove his knee into that person’s back while lying on the ground.
Law enforcement officials are subject to criminal prosecution whenever evidence exists that they knowingly abuse their authority and deprive individuals of their constitutional rights. Such acts of misconduct, known as acts committed under “color of law,” include allegations of excessive force.
"The FBI will vigorously pursue law enforcement officers who violate their sacred duty to protect and serve,” said Special Agent in Charge W. Jay Abbott. “The vast majority of law enforcement officers serve bravely and with great integrity in the performance of their duties."
Minkler praised the outstanding law enforcement work by the Federal Bureau of Investigation. The FBI is a leading partner in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana.
According to Assistant United States Attorneys Bradley A. Blackington and MaryAnn T. Mindrum, who prosecuted the case for the government, Smith will serve two years of supervised release after his sentence.
Former New Orleans Tax Return Preparer, Indicted for Theft of Public Money, Wire Fraud, Aggravated Identity TheftRead the Press Release
DONALD STEWART, age 58, a former tax return preparer and resident of New Orleans, was indicted today for six counts of theft of public funds, two counts of wire fraud, and six counts of aggravated identity theft, announced United States Attorney Kenneth Allen Polite, Jr. and Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division. According to the indictment, STEWART acted as a return preparer from approximately 2001 through 2008, before the IRS suspended his Electronic Filing Information Number.
As charged in the indictment, from January 2011 through February 2012, STEWART caused federal tax refunds in the names of others to be electronically deposited into bank accounts under his control. These deposits totaled approximately $37,809. STEWART is charged with two counts of wire fraud related to his filing of two specific false income tax returns in early 2011. The indictment further alleges that STEWART cashed or deposited U.S. Treasury checks, which represented federal income tax refunds, at a bank in the New Orleans area. These U.S. Treasury checks totaled approximately $539,393. Finally, STEWART is charged with aggravated identity theft for using the means of identification of others during and in relation with wire fraud and theft of public money.
STEWART faces a maximum term of twenty years imprisonment for each wire fraud charge, ten years imprisonment for each theft of public money count, and a mandatory term of two years imprisonment for each charge of aggravated identity theft. As to each count, he also faces a fine of $250,000, or twice the gross gain or loss caused by the offense, and terms of supervised release.
U. S. Attorney Polite and Acting Deputy Assistant Attorney General Wszalek reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by IRS-Criminal Investigation. It is being prosecuted by Tax Division Trial Attorneys Hayden Brockett and Lauren Castaldi and Assistant United States Attorney Carter K. D. Guice, Jr.
Former Bechtel Executive Pleads Guilty in Connection with a $5.2 Million Kickback SchemeRead the Press Release
The former Principal Vice President of Bechtel Corporation and General Manager of the Power Generation Engineering and Services Company (PGESCo) pleaded guilty today in connection with a $5.2 million kickback scheme intended to manipulate the competitive bidding process for state-run power contracts in Egypt.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office made the announcement.
“Asem Elgawhary took more than $5 million in kickbacks from companies trying to manipulate a competitive bidding process in their favor,” said Assistant Attorney General Caldwell. “Foreign corruption is an international scourge, and we will pursue those who take bribes, whether they are government officials or high-ranking corporate executives, like Elgawhary. Every corruption conviction is a step towards rooting out and deterring this global problem.”
“Our economy is so global in this day and age that if we allowed corrupt practices overseas such as taking bribes in exchange for special consideration when comparing bids, it would seriously impact our international trade. What Mr. Elgawhary admitted to doing has a dramatic affect on U.S. companies being able to expand and grow their work forces overseas in a fair market place, which in the long run hurts our economy,” said Special Agent in Charge Vogt of the FBI in Maryland and Delaware. “He displayed his blatant disregard for our rule of law when he used a portion of the bribe payment to purchase a house for $1.6 million in cash. This should send a message to others like Mr. Elgawhary, that hiding behind a foreign government won’t protect you from prosecution.”
“Mr. Elgawhary allowed greed to compromise his business practices by taking kickbacks to provide unfair advantages to companies willing pay for power contracts,” stated Special Agent in Charge Kelly of IRS-CI’s Washington D.C. Field Office. “He compounded his criminal activities by failing to report any of the kickback payments as income on his tax returns. It is imperative that honest companies know IRS Criminal Investigation will investigate and bring to prosecution those willing to line their pockets through unethical business practices.”
Asem Elgawhary, 73, of Potomac, Maryland, pleaded guilty today before U.S. District Judge Deborah K. Chasanow of the District of Maryland to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws. Sentencing is scheduled for Mar. 23, 2015.
In his plea agreement, Elgawhary admitted that, from 1996 to 2011, he was assigned by Bechtel – a U.S. corporation engaged in engineering, construction and project management – to be the general manager at PGESCo, a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company (EEHC). PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC. Elgawhary admitted to accepting a total of $5.2 million from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process. According to court documents, the power companies and their consultants paid more than $5.2 million in kickback payments into various off-shore bank accounts under the control of Elgawhary, including various Swiss bank accounts.
As Elgawhary admitted in his plea agreement, he attempted to conceal the kickback scheme by routing the payments through various off-shore bank accounts, including Swiss bank accounts, under his control. Elgawhary also sent various documents and “Representation Letters” to Bechtel executives and members of the PGESCo Board of Directors in Maryland, falsely certifying that he had no knowledge of any fraud or suspected fraud at PGESCo, and that there were no violations or possible violations of law or regulations that should have been considered for disclosure in PGESCo’s financial statements. Elgawhary also admitted that, in further attempt to conceal the scheme, he made misrepresentations to counsel for Bechtel when he was interviewed in April 2011.
Elgawhary also admitted to conspiring to launder the proceeds of the scheme and to obstructing and impeding the administration of U.S. tax laws by falsely claiming that he maintained only one foreign bank account, denying that he received any income from a foreign bank account, and failing to report any of the kickback payments as income for the tax years 2008 through 2011.
Elgawhary, a dual U.S. and Egyptian citizen, was arrested on a complaint when he flew into the United States on Nov. 26, 2013, and was indicted on Feb. 10, 2014.
The case is being investigated by the FBI’s Baltimore Division and IRS-CI’s Washington D.C. Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs, and law enforcement counterparts in Switzerland, Germany, Italy, Saudi Arabia and Cyprus. The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem of the District of Maryland.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Ex-Employee at Federal Prison in San Pedro Pleads Guilty to Accepting Bribe to Smuggle Mobile Phone into FacilityRead the Press Release
LOS ANGELES – A Lake Elsinore man who was employed as a correctional officer at the Federal Correctional Institution, Terminal Island has pleaded guilty to a federal bribery charge for taking $1,000 in cash to smuggle a cell phone into the prison facility.
Luis Borjon, 52, pleaded guilty on Tuesday to the felony charge and admitted that he took the payment while employed as a correctional officer by the United States Bureau of Prisons.
Borjon pleaded guilty before United States District Judge R. Gary Klausner, who is scheduled to sentence the defendant on February 23, 2015. At sentencing, Borjon will face a statutory maximum sentence of 15 years in federal prison.
According to court documents, Borjon approached an inmate under his supervision at the Terminal Island prison in November 2012 and solicited a “loan.” The inmate put Borjon in contact with the inmate’s brother, who was not in custody, and Borjon called the inmate’s brother to provide him with the number for Borjon’s “burner cell phone” (a disposable phone).
The inmate’s brother met Borjon in January 2013 at a gas station in Lake Elsinore, where Borjon accepted approximately $1,000 in cash and a cell phone to smuggle into the prison. Borjon subsequently smuggled the cell phone into the Terminal Island facility and delivered it to the inmate. Soon after, other correctional officers found and seized the smuggled cell phone.
After being indicted by a federal grand jury in June, Borjon was arrested on September 16. He was subsequently freed on bond.
The Borjon investigation was conducted by the United States Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. The Drug Enforcement Administration provided assistance during the investigation.
Release No. 14-157
El Paso Business and Businessowner Charged in Connection with an Alleged Fraud and Trade Based Money Laundering Scheme Associated with Black Market Peso ExchangeRead the Press Release
In El Paso, federal and state authorities have arrested the owner and two employees of ERENE, Inc., (ERENE) for their alleged roles in an estimated $100 million trade based money laundering scheme announced U.S. Attorney Robert Pitman and Homeland Security Investigations (HSI) Acting Special Agent in Charge Tom Hernandez, El Paso Division.
ERENE, doing business as “J&E Sports,” “Rise High Skateshop,” Quicken,” “Quicken Footwear & Accessories,” “Pepes Casual,” “Arise 915,” and “Forward Footwear,” is an El Paso-based business which primarily sells shoes and other goods to U.S. and Mexican-based customers.
A 61–count federal grand jury indictment unsealed today in El Paso, charges ERENE, 52–year-old owner Jose Luis Rodriguez, 40–year-old ERENE Assistant Manager Jorge Penuelas, and 53-year-old ERENE employee Manuel Rodriguez with multiple money laundering conspiracy charges. Other charges alleged in the indictment include smuggling goods from the United States; engaging in monetary transactions in property derived from specified unlawful activity; conspiracy to commit mail and wire fraud; mail fraud; and, wire fraud.
The indictment alleges that since May 2007, Rodriguez on behalf of ERENE, made false and material representations to shoe suppliers that ERENE would only sell their product on a retail bases i.e. to end use consumers. On the basis of this representation, suppliers provided ERENE with millions of dollars in product which was primarily sold on a wholesale basis to Mexican and U.S. based purchasers. Once these goods were obtained, the indictment alleges, ERENE and the Mexican based wholesale purchasers used smugglers or “pasadors” to unlawfully smuggle shoes into Mexico from the United States. Through this method, ERENE and the Mexican based wholesale purchasers avoided tariffs, duties, and fees imposed by the Mexican government on the import of shoes into Mexico. Further, although the goods smuggled into Mexico are sold for pesos, the Mexican based wholesale purchasers paid for a significant majority of those goods with U.S. cash dollars.
The aforementioned schemes generated significant proceeds which the indictment alleges were laundered by the defendants through various means such as the purchase of U.S. Postal money orders.
Trade based money laundering (TBML) is the exploitation of the international trade system, including its financial system, to launder illicit proceeds. A subset of TBML is the Black Market Peso Exchange (BMPE). According to the indictment, criminal organizations are using the BMPE to convert the proceeds of their illegal activities from U.S. dollars to Mexican pesos in order to avoid the risk of smuggling bulk amounts of U.S. Currency across the border; risk detection by having to wire transfer the proceeds; and, to evade Mexican anti-money laundering regulations announced in June 2010 that restrict the amount of physical U.S. currency that Mexican banks may receive.
Generally, the BMPE scheme involves a drug trafficking organization or other criminal organization obtaining large amounts of U.S. dollars through illegal activity. These organizations, either directly or in conjunction with Mexican wholesalers/retailers or other third parties, then use these U.S. cash dollars to purchase goods within the United States, such as shoes. These goods are then brought into Mexico and sold for pesos.
All three defendants, who were arrested yesterday without incident, remain in federal custody pending detention hearings next week. In addition, federal and state law enforcement executed several search warrants yesterday at various locations and seized approximately $600,000 from four bank accounts affiliated with ERENE and Rodriguez as well as approximately 25,000 pairs of shoes with a rough estimated domestic value of $1,125,000.
Each money laundering conspiracy, mail and wire fraud conspiracy, mail fraud and wire fraud charge carries a maximum penalty of 20 years in federal prison upon conviction. Each money laundering and smuggling charge carries a maximum of ten years imprisonment upon conviction.
This investigation is being conducted by the HSI’s Financial Operations & Currency Unified Strikeforce (FOCUS). FOCUS is comprised of investigators from HSI, IRS – Criminal Investigation (IRSCI), U.S. Postal Inspection Service (USPIS), Customs and Border Protection – Office of Field Operations (CBP-OFO) and the El Paso Police Department. The Government of Mexico Servicio de Administracion Tributaria (SAT) also assisted in this investigation. The case is being prosecuted by Assistant United States Attorney Joseph Blackwell.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.El Departamento de Justicia Resuelve un Reclamo Contra un Empleador de California Sobre Discriminación Contra Trabajadores Nacidos al ExtranjeroRead the Press Release
El Departamento de Justicia anunció hoy que llegó a un acuerdo con Life Generations Healthcare LLC, conocido comercialmente como Generations Healthcare (GHC), una compañía que opera asilos de ancianos por todo California. El acuerdo sigue una decisión de un tribunal administrativo que determinó que GHC incurrió en un patrón y práctica discriminatoria contra individuos nacidos al extranjero, incluyendo ciudadanos naturalizados estadounidenses, en violación de de la Ley de Inmigración y Nacionalidad.
El día 30 de septiembre del 2011, el Departamento de Justicia presentó una demanda en contra de GHC en la que alegaba que la compañía discriminó en contra de los trabajadores nacidos al extranjero y que eran autorizados a trabajar. Específicamente, GHC requería que estos inmigrantes proporcionaran más documentos de lo que requería de los ciudadanos nacidos en los Estados Unidos para establecer autorización de trabajar. Después de un juicio, la Oficina del Funcionario Administrativo Principal de Audiencias - el tribunal administrativo que recibe tales demandas - decidió en favor del Departamento.
El acuerdo de hoy resuelve los asuntos correctivas en el caso, que el tribunal no abordό en su decisión anterior. Bajo el acuerdo, GHC pagará un total de $119,313 en pago atrasado a dos víctimas de discriminación, y $88,687 en sanciones civiles a los Estados Unidos. GHC también será sujeto a monitoreo por el departamento de sus prácticas de contratación por un periodo de dos años.
“Tanto la decisión de la corte como este acuerdo destacan la importancia de cumplir con la provisión antidiscriminatoria de la Ley de Inmigración y Nacionalidad, y las consecuencias al no hacerlo,” dijo Vanita Gupta, Sub-Procuradora General Interina para la División de Derechos Civiles. “Empleadores deben revisar sus pólizas de contratación y prácticas de verificación de elegibilidad de empleo para garantizar que cumplen con las leyes federales contra la discriminación.”
El caso fue litigado y resuelto por la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a la Inmigración (OSC) en el Departamento de Justicia, que también es la oficina responsable por hacer cumplir con la provisión antidiscriminatoria de la INA. La ley prohíbe a los empleadores imponer cargas adicionales de documentos a los solicitantes autorizados a trabajar o empleados durante el proceso de verificación de elegibilidad de empleo a causa de su estado de ciudadanía o nacionalidad. La ley también prohíbe discriminación por estatus de ciudadanía o del origen nacional durante la contratación, el despido, el reclutamiento o la referencia por comisión, represalias, e intimidación.
Para más información sobre las protecciones contra discriminación en el empleo según las leyes migratorias, llame a la línea directa de OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidad auditiva), llame a la línea directa de OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidad auditiva), o para registrarse para un seminario gratis ofrecido a través del internet visite http://www.justice.gov/crt/about/osc/webinars.php, envíe un correo electrónico al [email protected], o visite el sitio de Internet http://www.justice.gov/crt/about/osc.
Los solicitantes o empleados que consideren que fueron sujetos a (1) diferentes requisitos de verificación por su estatus de ciudadanía, estatus migratorio u origen nacional, o (2) discriminación por estatus de ciudadanía, estatus migratorio, u origen nacional con relación a la contratación, el despido y el reclutamiento o la referencia por comisión, deberán comunicarse a la línea de dedicada a trabajadores de OSC para asistencia.District Court Enters Permanent Injunction Against Los Angeles Seafood Company and Senior Officers to Stop Distribution of Adulterated ProductsRead the Press Release
The U.S. District Court for the Central District of California entered a consent decree of permanent injunction on Dec. 1 against Neptune Manufacturing Inc. of Los Angeles and its corporate officers, Alexander Goldring, Peter Oyrekh and Semyon Krutovsky, to prevent the distribution of adulterated seafood products, the Department of Justice announced today.
The department filed a complaint in the U.S. District Court for the Central District of California on Nov. 21 at the request of the U.S. Food and Drug Administration (FDA), alleging the company’s seafood products are produced under conditions that are inadequate to ensure the safety of its products. The complaint alleges that Neptune prepares, processes, packs, holds and distributes ready-to-eat smoked and salt-cured seafood including pickled herring, smoked steelhead trout, smoked halibut, smoked whitefish, smoked salmon and smoked mackerel. The complaint also alleges that defendants Goldring, Oyrekh and Krutovsky are Neptune’s corporate officers with the authority and responsibility for preventing and correcting violations of federal law at the company.
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing violations of the federal Food, Drug, and Cosmetic Act. The consent decree requires Neptune to cease all manufacturing operations and requires that, in order for defendants to resume distributing seafood products, the FDA first must determine that Neptune’s manufacturing practices have come into compliance with the law.
“Neptune was repeatedly informed that the sanitation practices at its facility were deficient,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The failure to actively plan for and control the presence of bacteria and neurotoxins commonly found in seafood processing facilities can pose a serious risk to the public health.”
According to the complaint, since 2006, FDA inspections have documented a pattern of continuing conduct of insanitary conditions resulting in the persistent presence of Listeria monocytogenes (L. mono). These insanitary conditions were the result of deviations from current good manufacturing practices such as not adequately cleaning surfaces and utensils used for cutting fish. Further, according to the complaint, the FDA’s most recent inspection in December 2013 documented the defendants’ failure to have and comply with adequate Hazard Analysis and Critical Control Point (HACCP) plans that control for Clostridium botulinum (C. bot) and L. mono hazards. L. mono is the bacterium that causes listeriosis, a serious and sometimes fatal infection for vulnerable groups such as newborns, the elderly and those with an impaired immune system. Ingestion of the neurotoxin C. bot can cause botulism. Though the incidence of botulism is rare, its effect is severe and the disease can cause paralysis or death if not promptly treated.
According to the complaint, the FDA has performed seven inspections of the defendants’ facility since 2006 and documented seafood HACCP or current good manufacturing practice violations every time. The complaint alleges that these inspections revealed that the company’s products are adulterated within the meaning of the Food, Drug, and Cosmetic Act. As alleged in the complaint, the company was told to take certain precautions while brining fish to control potential C. bot hazards but failed to take appropriate corrective action. Further, according to the complaint, cutting utensils were seen with dried pieces of fish on them, and exposed cracks, pits and crevices on the floor allowed water to pool in them, increasing the risk of L. mono contamination. The complaint alleges that FDA environmental samples taken around the facility tested positive for L. mono in critical areas such as the brining room, smoking/drying room and the walk-in cooler where finished products are stored.
The government is represented by Trial Attorney Dan Baeza of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Deborah Yim for the Central District of California and Assistant Chief Counsel for Enforcement Yen Hoang of the U.S. Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
DHS Technologies Agrees to Pay $1.9 Million to Settle Federal False Claims Act AllegationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that DHS Technologies LLC and its subsidiary, DHS Systems LLC (collectively “DHS”), have agreed to pay $1.9 million, plus interest, to the United States to resolve allegations that DHS violated the False Claims Act by failing to disclose to the General Services Administration (“GSA”) that it offered greater discounts to a private company for the same items during the negotiation for the re-award of a government contract.
According to United States Attorney Peter Smith, this settlement agreement filed with the U.S. District Court today in Scranton resolves allegations that in 2007 DHS failed to inform the GSA during contract re-award negotiations, as it was required to do, that products offered for sale to the United States and its agencies were offered for sale at lower prices to a commercial company. This resulted in federal agencies paying more for the products from 2007 through 2013 than they would have had the GSA known about the lower prices.
DHS has its headquarters in Orangeburg, NY. It is a provider of mobile shelters and trailer-mounted support systems for military, medical, government and civilian organizations around the world. During the relevant time period, DHS conducted business in northeastern Pennsylvania, including with the Tobyhanna Army Depot.
“Companies doing business with the United States must be diligent in making sure American taxpayers are getting the best deal,” said GSA Deputy Inspector General Robert C. Erickson.
“Companies doing business with the U.S. government should do their part to ensure that the military is guaranteed a fair price for the goods and services it needs to support our military men and women,” said Frank Robey, the director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Those companies who abuse their contracts will find our special agents ready to hold the companies accountable for their illegal activities.”
The settlement arose from a lawsuit filed in the United States District Court for the Middle District of Pennsylvania in 2011 by a whistleblower under the qui tam provisions of the False Claims Act. Under that law, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The False Claims Act further provides that the United States may intervene in the suit as it did in this case.
The case was investigated by the Justice Department’s Civil Division, the United States Attorney’s Office for the Middle District of Pennsylvania, the General Services Administration Office of Inspector General, the Army Criminal Investigation Command, the Defense Criminal Investigation Service, and the Defense Contract Audit Agency. The case was litigated by Assistant United States Attorney Timothy S. Judge of the United States Attorney’s Office for the Middle District of Pennsylvania.
The case is United States ex rel. McKinney v. DHS Technologies, LLC et al., Civ. No. 3:CV-11-146 (M.D.Pa.) The claims resolved by the settlement are allegations only; there has been no determination of liability. Other claims by the private plaintiff in the original lawsuit were not involved in the settlement and remain in the ongoing case.
Clay County Man Indicted on Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsKevin L. Brown, 44, of Flora, was indicted on December 2, 2014, on methamphetamine related charges in a one count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that from May 2012, until on or about November 10, 2014, in Clay County, Brown conspired and agreed with others to knowingly and intentionally manufacture more than 50 grams of methamphetamine.
With respect to Count 1, Brown faces 5-40 years in federal prison, up to $2,000,000 fine, and supervised release of at least 4 years.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Southeastern Illinois Drug Task Force.
The case is being handled by Assistant United States Attorney George Norwood.
Chamico Employees Sentenced for Conspiracy to Commit Mail FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JERRY ATHEY, age 56, DAVID LOWE, age 48, and TERRY CASTILOW, age 48, all of Bogalusa, Louisiana, were sentenced yesterday for their roles in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits.
U.S. District Court Judge Helen G. Berrigan sentenced ATHEY and LOWE to three years probation. CASTILOW was sentenced to 8 months home confinement and 5 years probation.
CASTILOW, LOWE, and ATHEY, were indicted in April 2014 – along with CHARLES “CHUCK” MIZELL, JR., JAMES CREEL, WILLIAM DARRYL KING, TENILLE NIELSON, JACQUELINE MYERS, and ROGER NADEAU – for mail fraud and conspiracy to commit mail fraud. According to the indictment, beginning at a time unknown, but no later than on or about September 24, 2009, and continuing through on or about January 11, 2014, MIZELL, JR., CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU, conspired to defraud the Louisiana Workforce Commission (“LWC”) of money and property by means of false and fraudulent representations, pretenses and promises, well knowing the representations, pretenses and promises were false, and mailed and caused to be mailed through the United States Postal Service unemployment (“UI”) benefit claim forms for the purpose of obtaining UI benefits to which they were not entitled. Specifically, at the time CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU applied for UI benefits and made weekly representations to LWC that they were unemployed and not getting paid, MIZELL, JR., actually employed them at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.
MIZELL, JR., was the President of Chamico and, according to the factual bases signed by CASTILOW, LOWE, and ATHEY, he asked them to fraudulently file for unemployment so that he would not have to pay their full salaries during tough economic times for Chamico. CASTILOW, LOWE and ATHEY would each get cash from Chamico during the weeks they were claiming unemployment benefits reporting that they were not working and not getting any income from work.
In 2009, CASTILOW had personally participated in the unemployment scheme with MIZELL, JR., but when she became Chamico’s office manager in 2013 she assisted MIZELL, JR. in facilitating the scheme for the other employees. According to the factual basis for CASTILOW’s plea, she completed the unemployment forms for six Chamico employees, fraudulently representing to the Louisiana Workforce Commission that the employees did not work at Chamico when she knew that they were working and/or receiving income from Chamico. CASTILOW kept the payroll records for the employees and the ledgers showing how much cash each employee who was participating in the unemployment scheme was to receive each week. CASTILOW cashed the checks that MIZELL, JR. endorsed for those employees he was paying while they were drawing unemployment and still working for him. On pay day, those employees picked up the cash payments from CASTILOW.
MYERS pleaded guilty to conspiracy to commit mail fraud and on September 24, 2014, was sentenced to three years probation.
MIZELL, KING, CREEL and NIELSON previously pled guilty to conspiracy to commit mail fraud and are scheduled to be sentenced on January 28, 2015.
The trial of the ROGER NADEAU is scheduled for February 2, 2015.
U.S. Attorney Polite praised the work of the Department of Labor-OIG and the Federal Bureau of Investigation with assistance from the Louisiana Workforce Commission in investigating this case. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
California CPA Charged with Defrauding New Jersey Religious Center Out of More Than $4 MillionRead the Press Release
NEWARK, N.J. - A California CPA who allegedly stole more than $4 million from a worship center in New Jersey, is scheduled to have his initial New Jersey court appearance on Dec. 8, 2015, U.S. Attorney Paul Fishman announced.
Donald Gridiron, 50, is charged by complaint with one count of wire fraud. He was arrested in California Dec. 2, 2014, by FBI agents and released on bail after appearing in court there.
According to the complaint:
The worship center, a religious facility located in New Jersey, hired Gridiron based,
in part, on his connections with individuals in the religious community as well as his standing within that community. The worship center agreed to pay Gridiron a monthly salary and reimburse him for reasonable expenses related to his work.Gridiron allegedly used his employment to obtain additional money from the worship center without authorization. He had the worship center’s bank accounts transfer more than $2.75 million to accounts he controlled and more than $1.5 million to an account associated with a foundation in which Gridiron was involved. Gridiron then used funds from his accounts for his own use, including payments on a mortgage for his residence, payments to a luxury car dealership, and withdrawals in furtherance of his gambling.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Gridiron or twice the gross loss suffered to the victims of his offense.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; law enforcement officers of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s arrest. He also thanked special agents of the FBI in California for their assistance.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.14-427
Gridiron, Donald Complaint
Butler County Man Pleads Guilty to Stealing Disability Insurance BenefitsRead the Press Release
PITTSBURGH – A resident of Butler County, Pennsylvania, pleaded guilty in federal court to a charge of theft of government money, United States Attorney David J. Hickton announced today.
Jody Schmidt, 46, pleaded guilty to one count before United States District Court Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from January 2005 to December 2012, Schmidt converted to his own use $71,450.00 in Social Security Title II, Disability Insurance benefit payments, which he knew he was not entitled to receive.
Judge Cercone scheduled sentencing for Wednesday, April 1, 2015 at 10 a.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Schmidt on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation that lead to the prosecution of Schmidt.
Brothers Sentenced for Selling and Transporting Stolen Used Cooking Oil from Restaurants in Rhode and MassachusettsRead the Press Release
PROVIDENCE, R.I. – Andrew Jeremiah, 78, and his brother, Bruce Jeremiah, 72, of Cranston, R.I., owners and operators of Jeremiah Motors Corp., and Removal Services and Green Energy, in Central Falls, R.I., were sentenced in U.S. District Court in Providence today for conspiring to sell and transport used cooking oil stolen from restaurants in Rhode Island and Massachusetts to a processing plant in New Hampshire for processing to animal feed and biofuel.
U.S. District Court Judge John J. McConnell, Jr., sentenced each defendant to two years’ probation, with the first six months to be served in home confinement with electronic monitoring, and a $3,000 fine. Restitution in this matter will be determined at a later date. The defendants previously forfeited $44,730 in cash and a 1984 Ford F700 truck seized from them during the investigation.
Andrew and Bruce Jeremiah pleaded guilty in September to one count of conspiracy to unlawfully transport stolen goods with a value in excess of $5,000.
The sentences are announced by United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI; and Central Falls Police Chief James J. Mendonca.
Anthony Simone, Sr., 60, of Cranston, a co-defendant in this matter, pleaded guilty on August 21, 2013, to one count each of conspiracy to transport in interstate commerce stolen goods and transport in interstate commerce stolen goods. He is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on January 8, 2015.
According to information presented to the court, between January 1, 2011, and November 9, 2012, Andrew and Bruce Jeremiah conspired to steal used vegetable cooking oil from restaurants in Rhode Island and Massachusetts, and to sell the product to a New Hampshire company that specializes in processing used cooking oil for use in animal feed and biofuel. During that time, Anthony Simone, Sr., was provided lists of businesses in Rhode Island and Massachusetts where quantities of used cooking oil could be found. About three times a week, between the hours of midnight and 6:00 am, Simone, using a truck registered to Jeremiah Motors, visited those businesses and others, and, without permission from the businesses, pumped the used cooking oil into a storage tank on the truck. The used cooking oil was transported to the Central Falls industrial facility operated by the Jeremiah brothers.
At the direction of the Jeremiahs, a New Hampshire company regularly sent tanker trucks to the Central Falls facility where the defendants loaded between 2,000 and 7,000 gallons of used vegetable oil per trip. More than 200,000 gallons of used cooking oil was stolen and sold to the New Hampshire processing plant.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the Central Falls Police Department and the FBI.
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Contact: 401-709-5357
[email protected]Brooklyn Man Arrested and Charged in Manhattan Federal Court in Connection with Advance Fee SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that OCTAVIO LOMBARDO, a/k/a “Otto Lombardo,” was arrested this morning on wire fraud charges stemming from his advance fee scheme, which allegedly defrauded small business owners of more than $1 million.
Among other false and misleading statements, LOMBARDO allegedly lied to small business owners by claiming to have the ability and expertise to structure investment loans for their businesses through LOMBARDO’s exclusive relationships with small community banks across the United States, when in fact he did not have the ability to obtain such financing. In connection with the scheme, LOMBARDO induced over 30 business owners to pay an upfront fee that was purportedly to pay for expenses incurred during the due diligence process prior to the loan’s closing. Instead, LOMBARDO used the vast majority of the money he received from the business owners – over $1 million in total – on his own personal expenses, including rental payments, club dues, food and other personal items.
LOMBARDO is expected to be presented today in federal court in Manhattan before Chief United States Magistrate Judge Frank Maas.
U.S. Attorney Preet Bharara said: “As alleged, Mr. Lombardo repeatedly lied to dozens of small business owners and used an illegal scheme to defraud them of their hard-earned money. He proceeded to use this corruptly obtained money, amounting to over $1 million, on his own living expenses and leisure activities. I want to thank our partners at the FBI for their hard work in investigating this case and in continuing to expose unlawful schemes such as this one.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Lombardo stole from dozens of small business owners, looking to make significant investments with their new equity. His scheme not only defrauded the owners, but took capital away from new investments and critical employee hires.”
According to the Complaint unsealed today in Manhattan federal court:
From at least 2007 through 2013, LOMBARDO engaged in a fraudulent scheme to mislead small business owners into paying an upfront due diligence fee, typically in the amount of $25,000, in connection with loans that LOMBARDO promised to obtain for the small business owners. During this period, LOMBARDO held himself out to the business owners as having the ability and expertise to structure investment loans for their businesses through LOMBARDO’s purported exclusive relationships with small community banks across the United States. In fact, LOMBARDO had no ability to provide such financing, and none of the businesses at issue received a loan through LOMBARDO during this period.
In connection with the scheme, LOMBARDO made a series of false and misleading misrepresentations to the business owners, including: (i) that LOMBARDO could obtain interest-only loans in amounts ranging from $1 million to $75 million by consolidating the lending power of several small community banks into a trust, which he would manage through his holding company, Lombardo & Company; (ii) that, in order to structure the loan appropriately, LOMBARDO needed to conduct due diligence of the businesses, which included obtaining corporate and financial documentation and conducting site visits; (iii) that LOMBARDO required a non-refundable upfront payment – generally in the amount of $25,000 – to cover the expenses incurred during the due diligence process, including legal and other professional fees, taxes, appraisals and the like; and (iv) that this fee would be incorporated into the final loan agreement, so that the business owners would ultimately “get back” the upfront payment once the financing was in place.
As a result of these misrepresentations, LOMBARDO obtained over $1 million in so-called due diligence payments from more than three dozen business owners. LOMBARDO spent the vast majority of the due diligence payments on his own personal expenses, including, among other things, rental payments, club dues, food and other personal items. For example, LOMBARDO spent more than $300,000 on rental payments for his residence in Brooklyn, more than $100,000 on membership dues for a private gun club located in Manhattan and more than $50,000 on restaurants and purchases of wine and liquor.
Once he received the due diligence payments, LOMBARDO made a variety of excuses to the business owners – including, among others, that he was having health problems and had been hospitalized, that he was traveling and/or that he had a new grandchild – in order to explain the delay in closing the loan.
Ultimately, LOMBARDO did not provide any of the loans to the business owners as promised.
LOMBARDO, 67, was arrested this morning at his residence in Brooklyn, New York. He is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the Federal Bureau of Investigation. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Amy Lester and Damian Williams are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is
presumed innocent unless and until proven guilty.
U.S. v. Octavio Lombardo Complaint
Boise Woman Admits Unlawfully Possessing A FirearmRead the Press Release
BOISE – Andrea Lorraine Polisso, 36, of Boise, Idaho, pleaded guilty today in United States District Court to one count of unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced.
According to information presented in court, law enforcement agents served a search warrant at Polisso’s residence on June 20, 2014. During the search, agents located a pink and silver .380 handgun in Polisso’s bedroom. When questioned about the handgun, Polisso admitted to possessing the firearm. She also admitted that she should not possess firearms due to her criminal history. Polisso is prohibited from possessing firearms because she was previously convicted of the felony crime of possessing a controlled substance on January 18, 2006, in Canyon County, Idaho.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of the firearm.
Polisso is scheduled to be sentenced on February 13, 2015, by U.S. District Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Boise Police Department’s Gang Unit. Polisso is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Binghamton Area Physician Required to Pay Civil Penalty for Violations of the Federal Controlled Substances ActRead the Press Release
Broome County Ophthalmologist settles for $75,000.00
ALBANY, NEW YORK – United States Attorney Richard S. Hartunian announced his office reached a civil settlement with Dr. J. Louis Pecora, an Endicott, New York ophthalmologist, for $75,000.00. As part of the settlement, Dr. Pecora also voluntarily surrendered his Drug Enforcement Administration (DEA) numbers, which enables physicians to prescribe controlled substances. The settlement was in connection with violations of the Controlled Substances Act.
In August of 2012, DEA was notified that Dr. Pecora had made suspicious orders of hydrocodone. Thereafter, DEA and New York State Police investigators conducted an inspection of Dr. Pecora’s office and home and subsequently questioned him about controlled substances he purchased between January 18, 2010 and August 8, 2012. According to the complaint filed in connection with the settlement, Dr. Pecora ordered schedule III controlled substances on eighteen (18) occasions for personal use, between January 18, 2010 and August 8, 2012. More specifically, within this time period, Dr. Pecora ordered 3,800 tablets of Hydrocodone and 500 tablets of Vicodin ES, schedule III controlled substances, for personal use, without a medical purpose and outside the usual course of his professional practice. Pursuant to regulations, a prescription for a controlled substance to be effective must be issued for a legitimate medical purpose by an individual practitioner acting in the usual course of his or her professional practice. When Dr. Pecora ordered these controlled substances for his personal use, he did not meet these requirements. In addition, according to the complaint, Dr. Pecora refused or negligently failed to maintain a biennial inventory of controlled substances from January 18, 2010 to August 8, 2012. A biennial inventory of all controlled substances on hand is required by federal regulations.
The Controlled Substances Act was enacted to ensure that controlled substances are properly regulated and to help prevent drug diversion. Prescription drug abuse is a significant nationwide issue. According to U.S. Attorney Richard S. Hartunian, his office takes drug diversion very seriously and will aggressively pursue those who violate the Controlled Substances Act, especially if they are professionals in the medical field. "It simply is unacceptable for medical professionals to act irresponsibly when handling controlled substances. The potential for these substances to end up in the wrong hands is something we are not willing to risk, and we will take whatever steps are necessary to prevent this from happening."