Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 2 December 2014
Stotts City Man Sentenced to 15 Years in Prison for Attempting to Produce Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Stotts City, Mo., man was sentenced in federal court today for attempting to manufacture child pornography by secretly videotaping a child victim in the shower.
Christopher L. Modglin, 45, of Stotts City, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
On Aug. 13, 2014, Modglin pleaded guilty to one count of attempting to manufacture child pornography. Modglin admitted that he secretly recorded video of a child victim between the ages of 11 and 13 years old taking a shower. Modglin also admitted that he owned several computers that contained images and movies of child pornography.
The Lawrence County, Mo., Sheriff’s Department was notified that the child victim had reported Modglin tried to put a camera in her bedroom on multiple occasions. Based on this information, the child victim was interviewed at the Child Advocacy Center. During the interview, the child victim stated that she had seen a video on Modglin’s cell phone of herself taking off a swim suit and getting into a shower.
Sheriff’s deputies executed a search warrant at Modglin’s residence and seized three desktop computers and a laptop computer, all of which contained images and movie files of child pornography involving victims between the ages of 8 to 13 years old. One of the desktop computers contained seven video files that Modglin had made of the child victim in various stages of undress. Officers also seized a thumb drive that contained one of the videos of the child victim, which had been erased. The same thumb drive also contained an erased child pornography movie file. Three additional computers did not contain any child pornography.
In total, the officers seized material that contained seven video files of child pornography manufactured by Modglin, 51 movie files that contained child pornography and 17 images of child pornography.
When Modglin was arrested, officers also discovered a USB flash drive in his wallet that contained the seven video files he manufactured of the child victim.
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force and the Lawrence County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Serenity Hospice to Pay over $581,000 to Resolve False Claims Act LitigationRead the Press Release
Savannah, GA: Serenity Hospice Care, LLC of Dublin, Georgia, along with an affiliate corporation, has agreed to pay the United States a total of $581,504.46 to settle allegations that it submitted or caused the submission of false claims to the Medicare program for certain patients who were not eligible for hospice under Medicare regulations. The Medicare hospice benefit is available to patients who elect palliative care (care designed to relieve the pain, symptoms, or stress of terminal illness) instead of curative care (care designed to cure an illness or condition), and who have a life expectancy of six months or less if their illness runs its normal course.
The civil settlement resolves allegations that were originally part of a lawsuit filed under the qui tam (or “whistleblower”) provisions of the False Claims Act, in which a private party (known as the “relator”) can file an action on behalf of the United States and receive a portion of any recovery. As a result of the settlement, the relator will receive a share of the settlement proceeds.
United States Attorney Edward Tarver stated, “This case demonstrates that the United States Attorney’s Office for the Southern District of Georgia is committed to preserving the integrity of the Medicare program. The settlement helps ensure that the Medicare hospice benefit is used appropriately for patients who truly qualify.”
The case was investigated by Special Agent David J. Graupner, Department of Health and Human Services, Office of Inspector General, and Investigator Kimberly Reinken of the United States Attorney’s Office, Southern District of Georgia. The United States was represented by Assistant United States Attorneys Edgar D. Bueno and Charles W. Mulaney. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Salt River Man Sentenced to 20 Years in Federal Prison for Shooting OfficersRead the Press Release
PHOENIX – On Dec. 1, 2014, Micah Sobori Moquino, 20, of Scottsdale, Ariz., a member of the Salt River Pima-Maricopa Indian Community, was sentenced by U.S. District Judge G. Murray Snow to 240 months in federal prison. Moquino pleaded guilty on Sept. 18, 2014, to one count of assault with intent to commit murder and one count of assault with a dangerous weapon.
According to court documents, on Nov. 15, 2013, Moquino shot two Salt River Police Department officers with a 9 mm semi-automatic pistol, with the intent to murder one of the officers and to cause bodily harm to the other officer.
The investigation in this case was conducted by the Salt River Police Department and the FBI. The prosecution was handled by the U.S. Attorney’s Office for the District of Arizona, Phoenix.
CASE NUMBER: CR-13-01659-PHX-GMS
RELEASE NUMBER: 2014-069_MoquinoFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Rhode Island Builder Sentenced for Filing False Claims, Making False Statements to Collect $1.8M in Federal FundsRead the Press Release
PROVIDENCE, R.I. – Donald F. Ihlefeld, 71, of Cranston, R.I., owner of Alhambra Building Company of Warwick, R.I., was sentenced today in U.S. District Court in Providence to two years probation, ordered to perform 200 hours community service and to provide $20,000 in funding to the Rhode Island Foundation to support programs that assist immigrant populations in Rhode Island for filing false claims and false documents in order to collect more than $1.8 million dollars in federal funds during a renovation project of a former textile mill building in West Warwick, R.I.
Ihlefeld’s sentence, imposed by U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Peter F. Neronha and Phillip Coyne, special agent in charge of the Department of Health and Human Services, Office of Inspector General (HHS OIG).
An investigation by HHS OIG and the United States Attorney’s Office determined that Ihlefeld falsely represented that he paid employees locally prevailing wages for work performed during the renovation project of the former mill building into a walk-in health center. The construction project, known as the Cotton Shed Project, was funded in part by the American Recovery and Reinvestment Act of 2009, through grants provided by the U.S. Department of Health and Human Services, Health Resources and Services Administration.
According to court documents and information presented to the court, in October 2010, Thundermist Health Center, a non-profit community health center, awarded a contract to Alhambra Building Company as construction manager for the Cotton Shed Project. As a condition of payment, as required by the Stimulus Program pursuant to the Davis-Bacon Act, Alhambra Building Company was required to pay laborers no less than locally prevailing wages plus benefits. In bidding on the project, Alhambra noted its prior experience working on Davis-Bacon projects.
In January 2011 through mid-April 2011, Ihlefeld submitted invoices for payment for construction work performed by his company from December 2010 through January 2011 totaling approximately $1.8 million dollars, knowing that he and his company failed to pay employees local prevailing wages. Additionally, during the same time frame, Ihlefeld and his company submitted false certified payroll reports to Thundermist which misrepresented the identity of employees working on the project, total hours worked by employees and that it was paying Davis-Bacon wages to employees working on the project. The employees Alhambra failed to pay the appropriate wages were non-citizen Spanish speaking employees hired by Alhambra. Those employees were paid substantially less than the prevailing wage of approximately $34 per hour.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Reno, Nevada Man Pleads Guilty to Aggravated Identity Theft for Fraudulent Credit Card Use in BoiseRead the Press Release
BOISE – Rapphel Johnson, 28, of Reno, Nevada, pleaded guilty today in United States District Court to one count of aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Sentencing is set for February 18, 2015, before Chief U.S. District Judge B. Lynn Winmill.
Johnson was indicted in September 2014, for access device fraud (credit card fraud) and aggravated identity theft. According to the plea agreement, Johnson admitted that on September 1, 2014, he and a co-defendant knowingly used counterfeit credit cards containing the account numbers of real people to make a number of fraudulent purchases in Boise at stores including Rite Aid, Subway, T-Mobile, Finish Line, and Macy’s. In particular, Johnson admitted using a counterfeit credit card, with another person’s account number, to purchase a Microsoft Surface Pro 3 at the Boise Towne Square Mall. Additionally, Johnson admitted that when he was contacted by police, at a motel room rented with a counterfeit credit card, Johnson threw several counterfeit credit cards out the motel room window.
A violation of aggravated identity theft is punishable by a mandatory minimum term of imprisonment of two years, a term of supervised release of not more than one year, a maximum fine of $250,000, and a special assessment of $100.
The case was investigated by the United States Secret Service and the Boise Police Department.
Principal in $28.3 Million Medicare Fraud Scheme Sentenced to 11 Years in PrisonRead the Press Release
A Florida owner and operator of multiple physical therapy rehabilitation facilities was sentenced in federal court in Tampa today to serve 11 years in prison for his role in organizing a $28.3 million Medicare fraud scheme involving physical and occupational therapy services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Luis Duluc, 54, of Tampa, pleaded guilty on Feb. 3, 2014, to conspiracy to commit health care fraud as well as making a false statement relating to health care matters. In addition to the prison term, U.S. District Judge Susan C. Bucklew of the Middle District of Florida ordered Duluc to pay $14,424,856 in restitution.
According to Duluc’s admissions in connection with his guilty plea, he and his co-conspirators used various physical therapy clinics and other businesses throughout Florida to submit approximately $28,347,065 in fraudulent reimbursement claims to Medicare between 2005 and 2009. Medicare paid approximately $14,424,865 on those claims.
Duluc was chairman and president of a Delaware holding company known as Ulysses Acquisitions Inc., which was used to purchase comprehensive outpatient rehabilitation facilities and outpatient physical therapy providers, including West Coast Rehab Inc. in Fort Myers, Florida; Rehab Dynamics Inc. in Venice, Florida; Polk Rehabilitation Inc. in Lake Wales, Florida; and Renew Therapy Center of Port St. Lucie LLC in Port St. Lucie, Florida. This gave Duluc and his co-conspirators control of those clinics’ Medicare provider numbers, which allowed them to bill Medicare for services.
Duluc admitted that he and his co-conspirators paid kickbacks to obtain, and stole, the personal identifying information of Medicare beneficiaries, and that he and his co-conspirators also obtained unique identifying information of physicians. They then used this information to create and submit false claims to Medicare through the clinics owned by Ulysses Acquisitions. These claims sought reimbursement for therapy services that were not legitimately prescribed and not actually provided. Duluc admitted that he and his co-conspirators created and used false and forged patient records in an effort to conceal the fact that services had not actually been provided.
Duluc also admitted that he developed and marketed the “80/20 deal.” In these deals, Duluc and his co-conspirators submitted false reimbursement claims to Medicare on behalf of Miami-based therapy clinics, such as Hallandale Rehabilitation Inc., Tropical Physical Therapy Corporation, American Wellness Centers Inc. and West Regional Center Inc. Duluc and co-conspirators retained approximately 20 percent of the money Medicare paid on these claims and paid the other 80 percent to the co-conspirator clinic owners.
When Duluc and his co-conspirators were done using the clinics they acquired through Ulysses Acquisitions, they engaged in sham sales to nominee or straw owners, all of whom were recent immigrants to the United States with no background or experience in the health care industry. Duluc admitted that he did this in an effort to disassociate from the fraudulent operations of the rehabilitation facilities.
This case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Senior Trial Attorney Christopher J. Hunter and Trial Attorney Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Simon A. Gaugush of the Middle District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Plato Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Plato, Mo., man who initially confessed during a pre-employment polygraph examination when he applied for employment at the Missouri State Highway Patrol pleaded guilty in federal court today to using a minor victim to produce child pornography.
Cedric Lovejoy, 28, of Plato, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in an Oct. 1, 2013, federal indictment.
According to today’s plea agreement, Lovejoy participated in a pre-employment polygraph interview and examination conducted by the Missouri State Highway Patrol on Nov. 9, 2012. During the interview, Lovejoy confessed that he had taken video footage of himself receiving oral sex from the then-14-year-old victim. State troopers executed a search warrant at Lovejoy’s residence and seized his computers, which contained the child pornography video Lovejoy had taken with his cell phone.
Under federal statutes, Lovejoy is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Perry County Man Sentenced for Methamphetamine ViolationRead the Press Release
Follow @SDILNewsOn December 2, 2014, a Perry County, Illinois, man was sentenced in U.S. District Court for a methamphetamine violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Thomas D. Tindall, 21, of Willisville, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 108 months in federal prison, to be followed by 3 years’ supervised release, and fined $250.00. Evidence at the plea and sentencing hearings established that Tindall was involved with co-defendant Seth Conway and others in the manufacture of methamphetamine. During a February 20, 2014, search of Tindall’s vehicle and residence, agents located methamphetamine, methamphetamine-making materials, and drug paraphernalia. At sentencing, the district court found that Tindall was responsible for the possession of 176 grams of pseudoephedrine. Tindall’s sentence was enhanced because he involved multiple juveniles in the methamphetamine offense. The offense occurred between 2012 and February 2014, in Jackson, Randolph, and Perry Counties. Co-defendant Conway has pled guilty and is awaiting sentencing.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Coulterville Police Department, Randolph County Drug Task Force, Steeleville Police Department, Percy Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration. The Randolph County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Omaha Man Sentenced to Total of 10 years on Drug and Gun ChargesRead the Press Release
United States Attorney Deborah R. Gilg announced that on December 2, 2014, Senior United States District Judge Richard G. Kopf sentenced Pablo Rodriguez, 39, of Omaha, to five years (60 months) in prison for possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine and five years (60 months) for possession of a firearm in furtherance of a drug-trafficking crime. The sentence for the gun charge must be served consecutive to (after) the sentence for the drug charge. Following the prison terms, Rodriguez will serve five years on supervised release. Rodriguez was also ordered to forfeit $4,782 in cash to the United States of America.
On the evening of May 2, 2014, officers of the Lincoln/Lancaster County Drug Task Force were conducting surveillance on a Lincoln residence. They saw Rodriguez arrive and carry items to and from the residence. Officers followed Rodriguez away from the residence. He was stopped for a traffic violation. He told officers he had 1/8 ounce of methamphetamine in his wallet and provided a baggie containing methamphetamine to the officers. He told officers there was an AR-15 assault rifle in his vehicle but said it did not belong to him. Officers searched the vehicle and found a loaded AR-15, additional methamphetamine, and $4,782 in cash. Rodriguez said he had just dropped off eight ounces of methamphetamine at the residence where he was first seen by the officers. A search warrant was executed at that residence on the early morning of May 3, 2014, and officers found additional methamphetamine. A total of approximately 250 grams of methamphetamine was found during the searches of Rodriguez’s person, vehicle, and the Lincoln residence.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging and Fraud at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland against Garry Wan of Concord, California. To date, 50 individuals have agreed to plead or have pleaded guilty, as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, beginning as early as May 2008 until January 2011, Wan conspired with others not to bid against one another, and instead designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda County. Wan was also charged with conspiring to use the mail to carry out a scheme to fraudulently acquire title to selected Alameda County properties sold at public auctions, to make and receive payoffs, and to divert money to co-conspirators that would have otherwise gone to mortgage holders and other beneficiaries by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held.
“While there has been a lengthy series of guilty pleas by the participants in this activity, the division’s work is not yet over,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “We will continue to work with our law enforcement partners to investigate and prosecute collusion at real estate foreclosure auctions, which allow the conspirators to profit from illegal payoffs at the expense of financial institutions and distressed homeowners.”
The department said that the primary purpose of the conspiracies was to suppress and eliminate competition and to conceal payoffs in order to obtain selected real estate offered at Alameda County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“These charges demonstrate our continued commitment to investigate and prosecute individuals and organizations responsible for the corruption of the public foreclosure auction process,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The FBI is committed to work these important cases and remains unwavering in our dedication to bring the members of these illegal conspiracies to justice.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, California. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300, or call the FBI tip line at 415-553-7400.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established 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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Monmouth County, New Jersey Man Pleads Guilty to Possessing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A previously convicted sex offender admitted today that he uploaded images of child sexual abuse to an online file-sharing network, U.S. Attorney Paul J. Fishman announced.
Layne Bracht, 32, of Highlands, New Jersey, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
Bract admitted that on Oct. 28, 2013, he knowingly placed images and videos depicting child sexual abuse into shared folders that others could access via a peer-to-peer network. Special agents of the FBI executed a search warrant at his residence in Highlands on Jan. 15, 2014 and seized digital evidence that contained numerous videos and images depicting child sexual abuse, including material involving prepubescent minors and sadistic or masochistic conduct. The digital evidence seized included three files previously downloaded from Bracht by law enforcement agents working in an undercover capacity on the peer-to-peer network.
In 2006, Bracht was arrested and charged with possession of child pornography, a charge to which he subsequently pleaded guilty. On April 2, 2008, U.S. District Judge Joseph E. Irenas sentenced Bracht to 30 months in prison to be followed by five years of supervised release. As a previously convicted sex offender, Bracht now faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 13, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, New Jersey, and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
14-417
Defense counsel: Brian P. Reilly Esq, Assistant Federal Public Defender, Trenton
Bracht, Layne Information
Mongolian Dinosaur Fossil ForfeitedRead the Press Release
A decree of forfeiture was issued today by the Honorable Brian M. Cogan in federal court in the Eastern District of New York forfeiting the fossilized skull and vertebrae of an Alioramus dinosaur (the “Dinosaur Skull”). The Alioramus was a dinosaur that lived in the late Cretaceous period, approximately 65 to 70 million years ago. It is related to the Tyrannosaurus Rex and Tarbosaurus. The Dinosaur Skull was falsely described as a French replica in January 2014, when it was shipped to the United States by Geofossiles, Inc., a French fossil dealer. Upon its arrival in the United States from France, the Dinosaur Skull was seized by U.S. Customs and Border Protection (CBP) with the assistance of Homeland Security Investigations (HSI). On September 4, 2014, the United States filed a civil action to forfeit the Dinosaur Skull, alleging that it was stolen Mongolian property that was smuggled into the United States using false declarations. As Geofossiles did not contest the allegations in the United States’ complaint, the court ordered the forfeiture of the Dinosaur Skull.
The forfeiture was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, HSI, New York.
“This case highlights the effectiveness of civil forfeiture tools in removing stolen cultural property from the stream of commerce so that it can be returned to its rightful owners,” stated United States Attorney Lynch. “Lies and forgeries are no match for the vigilance of our partners at CBP and HSI. Together, we are determined to expose and halt the flow of stolen cultural property entering our ports.” Ms. Lynch thanked the Mongolian government and the Central Museum of Mongolian Dinosaurs for their assistance.
“This case articulates the level of importance placed in identifying the provenance of cultural artifacts and acknowledging patrimony laws. Smugglers will falsify documents and lie about the origin and value of a cultural artifact just to get it across our borders to sell to the highest bidder,” said HSI Special Agent-in-Charge Hayes. “The forfeiture of this pre-historic fossil highlights HSI’s commitment along with our partners at CBP to assist foreign governments in detecting, deterring and disrupting the flow of priceless stolen foreign art, relics and fossils into the United States.”
When Geofossiles shipped the Dinosaur Skull to the United States, it falsely described the shipment as a low-value replica made in France. After the Dinosaur Skull was seized, Geofossiles petitioned CBP for its release. In the petition, Geofossiles conceded that the Dinosaur Skull was a genuine fossil, comprised of 70% original material and 30% cast to complete the skull. Geofossiles further admitted that the Dinosaur Skull’s country of origin was Mongolia, not France, and attached a contract to sell the piece for $250,000.
Under Mongolian law, significant fossil finds like the Dinosaur Skull are national property and, even if privately owned, cannot be sold to non-Mongolians or permanently exported. Nonetheless, Geofossiles attached to the petition several documents that purported to be Mongolian records authorizing the sale and export of the Dinosaur Skull from Mongolia to a Korean company in 2006. The records supplied by Geofossiles described the shipment as containing an incongruous combination of fossils and traditional Mongolian structures called “gers.” When Mongolian authorities located the original records for this shipment, they confirmed that only the gers were declared. Thus, the records supplied by Geofossiles were falsified to include fossils.
Pursuant to applicable law and Department of Justice guidelines, Mongolia will now have an opportunity to submit a petition to the United States for the return of the Dinosaur Skull.
The government’s case is being handled by Assistant United States Attorney Karin Orenstein.
E.D.N.Y. Docket No. 14-CV-5198(BMC)
Mitchellville Man Pleads Guilty to Drug Distribution and Money Laundering ConspiraciesRead the Press Release
Must Forfeit $108 million in Cash, Jewelry and Luxury Automobiles As Part of His Plea
Greenbelt, Maryland – Ishmael Ford-Bey, age 40, of Mitchellville, Maryland, pleaded guilty today to nine counts of a superseding indictment charging him with conspiracy, possession with intent to distribute cocaine, using a phone to facilitate drug distribution, and money laundering. As part of his guilty plea, Ford-Bey consented to the entry of a $108 million forfeiture order, including luxury vehicles, jewelry and cash.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; Acting Chief of Police Robert D. MacLean of the U.S. Park Police; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to court documents, from at least January 2011 through his arrest on August 16, 2013, Ishmael Ford-Bey conspired with others to distribute cocaine in Maryland and elsewhere. On August 15, 2012, the Texas Department of Public Safety stopped a refrigerated box truck that was transporting thirteen boxes, each containing approximately ten kilograms of cocaine. The boxes were to be delivered to Ford-Bey in Temple Hills, Maryland. A controlled delivery of the boxes was arranged. On August 17, 2012, law enforcement established surveillance at the meeting location in Marlow Heights, Maryland. A few minutes after the truck arrived at the meeting location, a vehicle registered to Ford-Bey at a Mitchellville address arrived at the location. Law enforcement observed the truck driver and Ford-Bey unloading the drugs into Ford-Bey’s vehicle. As Ford-Bey left the area, he was pursued by law enforcement officers. Ford-Bey abandoned the vehicle in the median on I-495 and ran away. Agents recovered Ford-Bey’s vehicle, the cocaine, cell phones, and other evidence from the vehicle.
Based upon review of the documents in the vehicle and further investigation, agents identified another residence for Ford-Bey located in the 2400 block of Pennsylvania Avenue, NW, in Washington, DC. On the evening of August 17, 2012, officers were at the Pennsylvania Avenue address and saw Ford-Bey in the lobby. Ford-Bey fled dropping a bag that contained prepaid cellphones and other items. Agents were unable to locate Ford-Bey. A search warrant of the residence resulted in the seizure of watches and jewelry, and a loaded Glock handgun. Agents also seized two other vehicles - a 2003 Audi and a 2011 Maserati, both registered to Ford-Bey.
As a result of wire taps on conspirators’ cell phones law enforcement overheard numerous conversations with Ford-Bey discussing and arranging drug transactions. Agents observed Ford-Bey providing conspirators with drugs and leaving with the drug payment.
On October 1, 2013, a search warrant was executed at the apartment of a co-conspirator that Ford-Bey had been identified as visiting. Agents located a safe which contained $823,640 in cash, several watches, and jewelry. In addition, agents recovered scales, three heat sealers, a coffee grinder, a currency counter, and other drug paraphernalia, as well as approximately 350 grams of cocaine. Latent fingerprints recovered from the heat sealers were identified as Ford Bey’s and another conspirator.Ford-Bey was arrested on August 16, 2013, during a traffic stop of a vehicle being driven by Ford-Bey’s girlfriend. A Maryland State Trooper ran the tag and determined the vehicle was registered in the name of the driver and Ford-Bey. When the trooper asked Ford-Bey for identification, he identified himself as Jason Green and presented a New Jersey driver’s license in that name. The trooper pulled up the warrant photograph for Ford-Bey, positively identified him as Ford-Bey, and placed him under arrest.
In an effort to disguise and hide their drug proceeds, Ford-Bey and others created numerous business entities, which had little, if any legitimate business. They set up bank accounts in the names of each business and deposit their drug proceeds into those business accounts. Between 2008 and 2011, Ford-Bey deposited drug proceeds into business bank accounts he owned or controlled. Ford-Bey used drug proceeds to purchase a 2007 Lexus for his girlfriend, a 2011 Landrover vehicle for $65,749, to purchase jewelry and to pay rent for Ford Bey’s apartment and for travel expenses, among other things.
Ford-Bey faces a minimum mandatory sentence of 20 years in prison and a maximum of life in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for March 5, 2015 at 10 a.m.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Prince George’s County Police Department, U.S. Park Police and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Minnesota Woman Charged with Stealing Passport to Travel to SyriaRead the Press Release
United States Attorney Andrew M. Luger today announced a complaint charging YUSRA ISMAIL, 20, with stealing and misusing a passport. According to the complaint and documents filed in court, on August 18, 2014, ISMAIL visited a friend and asked to see her passport. Before leaving her home on that day, ISMAIL surreptitiously took the passport and subsequently left her friend’s home.
According to the complaint and documents filed in court, three days later, ISMAIL asked a different friend to drive her to Minneapolis/Saint Paul airport, from which she departed on a flight bound for Amsterdam, the Netherlands. She later traveled from Amsterdam to Oslo, Norway.
According to the complaint and documents filed in court, ISMAIL contacted members of her family on August 24, 2014, and told one or more of them that she was in “Sham,” which is a term commonly used to describe the area within Syria and Iraq where the Islamic State of Iraq and Syria (ISIS) is attempting to establish a caliphate.
There is no record that ISMAIL, who is not a United States citizen, has lawfully returned to the United States.
This case is the result of an investigation conducted by the Joint Terrorism Task Force, under the supervision of the Federal Bureau of Investigation.
Defendant Information:
YUSRA ISMAIL, 20
Saint Paul, Minn.
Charges:
• Misuse of Passport, 1 countYusra Ismail Criminal Complaint
The charges contained in the indictment are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
Manoa Fire Company to Pay $36,912.46 to Resolve False Claims Act Allegations Relating to CredentialingRead the Press Release
PHILADELPHIA - Local ambulance service provider Manoa Fire Company (MFC), of Haverford Township, PA, will pay $36,912.46 to resolve allegations that it violated the False Claims Act as a result of ambulance services that it provided to Medicare and Medicaid patients, announced United States Attorney Zane David Memeger. The civil settlement resolves allegations that, between July 23, 2007 and September 30, 2013, on some of the Basic Life Support runs MFC provided, the ambulance attendant had not timely completed an advanced first aid class or that the attendant’s advanced first aid certification had lapsed.
During the time in question, Pennsylvania and federal rules required that an ambulance providing Basic Life Support services have at least two individuals present: a licensed emergency medical technician (“EMT”) and an “ambulance attendant” who had completed an emergency vehicles operation course and who had current certifications in both cardiopulmonary resuscitation (CPR) and advanced first aid class. The latter required the completion of a class of 40 or more hours approved by Pennsylvania’s Department of Health.
“Every ambulance service provider is responsible for ensuring that its employees have satisfied all of their legal requirements, including retraining requirements, before they are allowed to serve on ambulances,” said Memeger. “We are pleased that the company has accepted responsibility for those errors and has put in place measures to ensure that in the future, all of its ambulance service providers will have the training and experience necessary to render emergency first aid.”
This case was handled by Assistant United States Attorney Paul W. Kaufman and the Department of Health and Human Services Office of the Inspector General. The claims resolved by the settlement are allegations only; there has been no determination of liability.
Click here to view the settlement agreement.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Long Island Man Sentenced in Manhattan Federal Court to Five Years in Prison for Multimillion-Dollar Investment Fraud 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 that NIZAR OTHMAN, the former principal of a Manhattan-based financial firm, NAOK Financial, Inc. (“NAOK”), was sentenced today to five years in prison for a fraudulent investment scheme in which OTHMAN lied to victims and tricked them into paying him over $2 million for purported investments with supposed guaranteed rates of return. In reality, OTHMAN did not invest the funds as promised, and instead, used the funds largely for his own benefit. OTHMAN pled guilty in September 2014 before U.S. District Judge Lorna G. Schofield, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Nizar Othman was a fraudster who through his investment firm swindled numerous individuals out of millions of dollars. He preyed on people’s life savings and took the benefits of a widowed spouse while he exploited personal relationships for personal gain. We hope today’s sentence gives some measure of comfort to the victims.”
Assistant Director in Charge George Venizelos said: “This was another phony investment scheme, pitched to some of the most vulnerable people in our society. Today, Othman rightfully finds himself facing a stiff sentence for his investor shakedown.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at court proceedings:
From 2008 through March 2013, OTHMAN owned and operated NAOK, a now-defunct financial consulting and investment firm with an office in Manhattan. In connection with his operation of NAOK, OTHMAN engaged in a fraudulent scheme whereby he tricked multiple victims into investing millions of dollars with his company. For example, in April 2011, OTHMAN convinced Victim-1to invest $1.2 million with NOAK, using the proceeds of her recently-deceased husband’s life insurance and pension benefits. OTHMAN falsely told Victim-1 that he would invest the money in real estate ventures and promised to triple her investment in three years. OTHMAN even showed Victim-1 photographs of properties that he claimed he was investing in. Instead of investing the $1.2 million in real estate, however, OTHMAN used Victim-1’s money to pay for NAOK’s operating expenses, to repay other individuals who had invested with NAOK, and to pay for OTHMAN’s personal expenses, including dining, clothing, and travel expenses. Victim-1 lost her entire $1.2 million investment.
In addition to Victim-1, OTHMAN defrauded at least five other victims by fraudulently inducing them to invest hundreds of thousands of dollars with NAOK. In each instance, OTHMAN exploited personal relationships with the victims to gain their trust, and then betrayed that trust by lying about how the victims’ money would be invested and the rates of return that the victims would receive. For example, in March 2011, OTHMAN induced Victim-2, a retired barber, to invest his life savings of $480,000 with NAOK. OTHMAN falsely claimed that Victim-2’s money would be invested with a hedge fund broker with whom OTHMAN claimed to have a business relationship. OTHMAN visited Victim-2 at his house multiple times, invited Victim-2 to NAOK’s office in Manhattan, and guaranteed Victim-2 that he would receive at least a 10 percent return on his investment in three years. OTHMAN further promised to pay the guaranteed 10 percent return himself if the investment failed. As with Victim-1’s investment, instead of investing Victim-2’s money as promised, OTHMAN used the money for his own personal benefit. Victim-2 lost his entire $480,000 investment.
Further, in order to conceal and perpetuate the scheme, OTHMAN made various misrepresentations to the victims regarding the performance of their investments. For example, in October 2012, when Victim-1 inquired about the status of her $1.2 million real estate investment, OTHMAN told her that it was presently valued at $1.35 million. In truth and in fact, and as OTHMAN was well aware, OTHMAN never invested Victim-1’s $1.2 million in any real estate ventures. Similarly, in the first year following Victim-2’s $480,000 investment, OTHMAN falsely represented that the investment had earned a 13 percent return; in the second year, OTHMAN falsely reported a 14 percent return.
In total, the defendant’s fraudulent investment scheme resulted in losses to victims of approximately $2,138,000.
In addition to the prison sentence, OTHMAN, 31, of Albertson, New York, was sentenced to three years of supervised release. OTHMAN was also ordered to pay $2,138,000 million in restitution to his victims, and to forfeit $2,138,000 in criminal proceeds.
Mr. Bharara praised the outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Serrin Turner, Daniel Noble, and Alexander Wilson are in charge of the prosecution.
Leader of Colombian Drug Trafficking Organization Pleads GuiltyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Benjamin Renteria-Arboleda (54, Colombia, South America) has pleaded guilty to conspiring with others to possess with intent to distribute 5 kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison. Sentencing is scheduled for January 20, 2015.
According to the plea agreement, since July 2001, at least seven maritime cocaine shipments planned by Renteria-Arboleda and others were interdicted by the United States Coast Guard and the United States Navy, in the Pacific Ocean, resulting in the seizure of approximately nine tons of cocaine. Renteria-Arboleda’s roles in the conspiracy included contracting for the construction, and dispatching, go-fast vessels and self-propelled semi-submersible vessels. Many of the vessels dispatched by Renteria-Arboleda successfully delivered cocaine and were not interdicted by the United States.
Renteria-Arboleda was arrested in Colombia and subsequently extradited to the United States for prosecution.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, comprised of agents and analysts from the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF Program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Kirkland Resident Arrested for Interstate Threats to KillRead the Press Release
A Kirkland, Washington resident was arrested on a criminal complaint charging three counts of making interstate threats, announced Acting U.S. Attorney Annette L. Hayes. JALEEL TARIQ ABDUL-JABBAAR, 46, was arrested this morning at his home without incident, and will make his initial appearance in U.S. District Court in Seattle at 2:00 p.m. today. According to the complaint, ABDUL-JABBAAR made repeated threats to kill an officer formerly with the Ferguson, Missouri Police Department, members of the officer’s family and other law enforcement officers.
“We are fortunate to live in a country where the right to speak out about current events and disagree with our government is protected by the highest law of the land. Our freedom of speech does not, however, extend to making threats to kill or injure law enforcement officers,” said Acting United States Attorney Annette L. Hayes. “Although we each have the right to express our views about the decision reached by the state grand jury in Ferguson, Missouri, we cannot tolerate violence or threats of violence that are intended to intimidate, and ultimately silence debate. Such threats are crimes, and the individuals who make them must be held to account.”
According to the criminal complaint, ABDUL-JABBAAR started posting threats on his Facebook page shortly after the August 9, 2014 shooting of Michael Brown, through late November. ABDUL-JABBAAR posted various statements about killing police officers and traveling to Ferguson, Missouri. Among others, ABDUL-JABBAAR stated: “We need to kill (the officer) and anything that has a badge on.” ABDUL-JABBAAR also used Facebook communications to attempt to acquire a firearm.
Making interstate threats is punishable by up to five years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and is being prosecuted by Assistant United States Attorney Todd Greenberg.KC Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to possessing child pornography and attempting to distribute child pornography over the Internet.
Craig E. Williams, Jr., 27, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to the charges contained in an April 9, 2014, federal indictment.
According to today’s plea agreement, Kansas City, Mo., police officers arrested Williams at his residence on May 16, 2013, on a felony warrant for an unrelated state case. They seized various electronic media from his residence. Forensic investigators discovered 413 videos of child pornography and numerous images of child pornography on a computer and three hard drives. The victims were primarily prepubescent children, including some toddlers. Some of the images depicted bondage and bestiality.
Williams told officers that he used a peer-to-peer file-sharing program to download child pornography over the Internet.
Williams was also being investigated by the Nixa, Mo., Police Department and the Western Missouri Cyber Crime Task Force, which were conducting separate undercover child pornography investigations and had identified Williams’ computer as sharing child pornography over the Internet.
Under federal statutes, Williams is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $500,000. Williams must also pay restitution of $5,000 apiece to two of the victims, or $3,000 apiece if he pays within 30 days of the sentencing date. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Kansas City, Mo., Police Department, the FBI, the Nixa, Mo., Police Department and the Western Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jury Finds Former Minnesota Real Estate Developer Guilty of Tax Evasion, Mail and Wire FraudRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of BARTOLOMEA JOSEPH MONTANARI, 57, formerly of Bayport, Minn., for tax evasion and fraud. On May 21, 2014, MONTANARI was indicted on one count of Evasion of Payment of Taxes, one count of Mail Fraud, and one count of Wire Fraud. On November 25, 2014, following a 6-day trial, a federal jury found MONTANARI guilty on all counts.
The evidence presented at trial proved that from 2009 until January 2012, MONTANARI willfully evaded the payment of employment and excise taxes owed by him and the three businesses he controlled: St. Croix Development, Emlyn Coal Processing, and Montie’s Resources. One of the ways MONTANARI avoided paying taxes and TFRPs was by transferring over $1.1 million into a bank account in the name of Bella Luca Properties LLC (“Bella Luca”), a shell company with no legitimate business purpose but used by MONTANARI to pay personal expenses. MONTANARI evaded payment of more than $700,000 in taxes and TFRPs to the federal government.
In December 2009, when the IRS attempted to collect taxes and TFRPs, MONTANARI filed a fraudulent financial statement making numerous misrepresentations to the IRS to avoid paying the taxes he owed. For example, he failed to disclose multiple personal vehicles that he owned and he denied the existence of the Bella Luca bank account, which he was using to receive monthly compensation of $50,000 from two of his companies. MONTANARI also lied about living in Bayport, Minn., when, in truth, he had already moved into a $1.4 million house he was purchasing in Knoxville, Tennessee.
In addition, as part of a fraud scheme, MONTANARI lied about the sale price of a Caterpillar dozer that he needed to purchase for one of his companies. Montanari submitted a doctored invoice to the dozer financing company, which issued a check for the dozer for $100,000 more than the true purchase price. MONTANARI kept the extra $100,000 and used it as a down payment for the house in Tennessee.
U.S. District Judge Ann D. Montgomery will sentence MONTANARI following the completion of a presentence investigation. A date for sentencing has not been set.
This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division, the U.S. Postal Inspection Service, and the Minnesota Financial Crimes Task Force.
Assistant U.S. Attorneys William Otteson and Melinda Williams are prosecuting this case.
Defendant Information:
BARTOLOMEA JOSEPH MONTANARI, 57
Knoxville, Tenn.
Convicted:
• Evasion of Payment of Taxes, 1 count
• Mail Fraud, 1 count
• Wire Fraud, 1 count- Houston Man Charged in Large-Scale Interstate Transportation of Stolen Goods Operation
Hill District Felon Sentenced to 15 Years in Prison for Possessing Weapons, CocaineRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 15 years imprisonment on his conviction of violating federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Charles Howard, III, 34.
According to information presented to the court, that on or about March 28, 2012, and again on May 20, 2013, Howard, who has prior felony convictions, possessed firearms. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm. Also on or about March 28, 2012, Howard possessed and intended to distribute crack cocaine.
This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Assistant United States Attorney Jonathan B. Ortiz prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsburgh Police Department and the Wilkinsburg Police Department for the investigation leading to the successful prosecution of Charles Howard, III.
Grenada National Pleads Guilty to Importation of Cocaine on Cruise ShipRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Isherman Tafari (32, New York) has pleaded guilty to importing 5 kilograms or more of cocaine into the United States. He faces a minimum mandatory penalty of 10 years, up to life, in federal prison.
According to the plea agreement, on June 20, 2014, Tafari departed Port Canaveral on an eight-day cruise to the southern Caribbean. When the ship returned to Port Canaveral on June 28, 2014, federal agents and local law enforcement officers searched Tafari’s luggage and discovered packages containing a white, powdery substance that tested positive for cocaine. The gross weight of the cocaine was determined to be approximately 5,450 grams.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Embry J. Kidd.
Four Waynesboro Residents Sentenced for Their Roles in Stolen Identity and Tax Refund SchemeRead the Press Release
Augusta, GA: Kamilya Nicholson, 31, Regina Bunyon, 37, Shequita Bush, 29, and Tamaka Smith, 35, all of Waynesboro, Georgia, were each sentenced to federal prison last month by United States District Court Judge J. Randal Hall for their roles in a stolen identity and tax refund scheme.
United States Attorney Edward J. Tarver said, “These defendants abused the trust of the American people to line their own pockets. This Office will continue to work hard every day to ensure those people who cheat the system are held accountable.”
“The sentences rendered today is a message to others that there are consequences to stealing and using other individuals’ personal identifying information,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “Individuals cannot fraudulently enrich their bank accounts at the expense of the United States Treasury and other taxpayers.”
The evidence presented at the guilty plea and sentencing hearings established that Nicholson, Bunyon, Bush, and Smith worked together to steal the names, birthdates, and social security numbers of unsuspecting victims, which they then used to file bogus income tax returns with the Internal Revenue Service seeking tax refunds. In total, the defendants attempted to defraud the IRS out of approximately $350,000.00 of taxpayers’ money.
For their roles in the scheme, Nicholson was sentenced to 20 months in prison, Bunyon was sentenced to 30 months in prison, Bush was sentenced to 18 months in prison, and Smith was sentenced to 24 months in prison. Mr. Tarver noted that parole has been abolished in the federal system.
IRS-CI Special Agent Roger Garland and FBI Special Agent Paul Kubala investigated the case. Assistant United States Attorney C. Troy Clark prosecuted this case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former NBA Standout Chris Herren to Raise the Game on Drug Awareness in the Ohio ValleyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Former National Basketball Association star Chris Herren will return to the Ohio Valley later this month to share the powerful story of his struggle with addiction, a group of community leaders announced today.
On Friday, December 12, 2014, Herren will visit the Capitol Theatre in Wheeling, West Virginia where he will address students from multiple schools including Wheeling Central Catholic, Bishop Donahue, and Linsly High Schools. Later that afternoon, he will travel to Weirton, West Virginia to address students at Weirton Madonna High School.
Chris Herren seemed to have it all. After an explosive debut as an All-American basketball star at Durfee High School in Massachusetts, Herren played at Boston College and Fresno State. Capturing the attention of the NBA, Herren was drafted by the Denver Nuggets. He would also play several seasons for the Boston Celtics. Behind the scenes, alcohol, cocaine, and heroin abuse nearly cost Herren his life.
Leveraging his own experience to educate and inspire young people, Herren tours the country speaking about substance abuse and addiction through his Project Purple program. Project Purple is an initiative of the Herren Project, a non-profit organization founded by Herren to break the stigma of addiction, bring awareness to the dangers of substance abuse, and shed light on effective treatment.
In anticipation of Herren’s visit, the girls’ basketball teams at Wheeling Central, Bishop Donahue, and Weirton Madonna High Schools will sponsor two “Purple Games.” Wheeling Central hosts Magnolia on December 9 and Weirton Madonna hosts Bishop Donahue on December 11.
Herren’s presentations on December 12, 2014 are not open to the public. Anyone interested in scheduling future events or locating additional resources to combat drug addiction in our region should contact the United States Attorney’s Office at (304) 234-0100.
Former Longshoreman Sentenced to 12 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former longshoreman was sentenced to 12 months in prison today for conspiring to extort others in Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Salvatore LaGrasso, 58, of Edison, New Jersey, a former supervisor on the New Jersey piers – previously pleaded guilty before U.S. District Judge Claire C. Cecchi to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against him. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
LaGrasso admitted that he and others conspired to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra (Genovese family). Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
In addition to the prison term, Judge Cecchi sentenced LaGrasso to two years of supervised release.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
14-418Defense counsel: Peter Till Esq., Springfield, N.J.
Former Longshoreman Sentenced to 12 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former longshoreman was sentenced to 12 months in prison today for conspiring to extort others in Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Salvatore LaGrasso, 58, of Edison, New Jersey, a former supervisor on the New Jersey piers – previously pleaded guilty before U.S. District Judge Claire C. Cecchi to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against him. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
LaGrasso admitted that he and others conspired to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra (Genovese family). Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
In addition to the prison term, Judge Cecchi sentenced LaGrasso to two years of supervised release.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
14-418Defense counsel: Peter Till Esq., Springfield, N.J.
Former Longshoreman Sentenced to 12 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former longshoreman was sentenced to 12 months in prison today for conspiring to extort others in Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Salvatore LaGrasso, 58, of Edison, New Jersey, a former supervisor on the New Jersey piers – previously pleaded guilty before U.S. District Judge Claire C. Cecchi to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against him. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
LaGrasso admitted that he and others conspired to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra (Genovese family). Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
Former Corporate Executives Plead Guilty to Securities Fraud and Tax Offenses for Wide-Ranging Commercial Bribery SchemeRead the Press Release
Two Coral Gables residents pled guilty today before U.S. District Judge Jose J. Martinez to their participation in a scheme to obtain more than $9.5 million in kickbacks and other benefits, and to conceal this illicit income from the IRS, while employed as senior executives at Systemax, Inc. (“Systemax”) and its subsidiary, TigerDirect, Inc. (“TigerDirect”).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
Carl Fiorentino, 57, pled guilty to one count of conspiracy to commit mail and wire fraud, and one count of tax evasion. According to his plea agreement, Carl Fiorentino has also agreed to forfeit, among other things, $1,961,049.90 which represents proceeds traceable to his criminal conduct.
Gilbert Fiorentino, 54, pled guilty to one count of conspiracy to commit securities fraud and to impair and impede the lawful functions of the Internal Revenue Service. According to his plea agreement, Gilbert Fiorentino has also agreed to forfeit, among other things, 99 gold coins that he received as a part of the kickback scheme.
According to admissions in the defendants’ plea agreements and made in court at the time they entered their pleas, Gilbert Fiorentino served until 2011 as a director of Systemax, was the Chief Executive Officer of the company’s Technology Product Group, and worked at Systemax’s Miami offices; Carl Fiorentino served until 2011 as the president of TigerDirect and worked at Systemax’s Miami offices as a senior executive responsible for sourcing and purchasing computer and electronics peripherals from third party vendors, some of them located in Asia.
Between 2003 and 2011, the defendants received kickbacks from, among others, among others, a Taiwan-based supplier, RICI International and its affiliates. Carl Fiorentino received in excess of $9.5 million in kickbacks; Gilbert Fiorentino received more than $600,000 in kickbacks including, among other things, approximately $200,000 in gold coins. In addition, as a part of the scheme, both misappropriated Systemax merchandise. Carl Fiorentino used the proceeds of his illegal activity to obtain, among other things, a Coral Gables luxury waterfront property, artwork, home furnishings and high-end electronics. Both defendants admitted that, as a result of their kickback scheme, they caused Systemax to pay more for goods and services than it would have in the absence of the schemes. Additionally, both men failed to disclose to the IRS, and pay taxes upon, the income they received as a part of their criminal conduct.
Both defendants concealed from Systemax and its auditors the payments they received pursuant to the kickback scheme. Accordingly, Systemax, unaware that the defendants had received payments and engaged in fraudulent activities, filed inaccurate statements with the U.S. Securities and Exchange Commission as a result.
When Carl Fiorentino learned that federal agents were investigating his conduct, he illegally instructed certain witnesses to conceal the truth from the agents.
This case was originally investigated by the U.S. Attorney’s Office for the Eastern District of New York with the assistance of the FBI New York Field Office and the IRS-CI Miami Field Office. Carl Fiorentino was previously charged in the Eastern District of New York on June 18, 2013, with conspiracy to commit mail and wire fraud, multiple counts of mail and wire fraud, and money laundering. The case involving Carl Fiorentino was transferred to the Southern District of Florida by court order on January 6, 2014. Both Carl and Gilbert Fiorentino are scheduled to be sentenced on February 10, 2015, at 1:30 p.m.
Mr. Ferrer and Ms. Lynch commended the investigative efforts of the FBI and IRS-CI. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy of the Southern District of Florida and Whitman G.S. Knapp of the Eastern District of New York.
A copy of this press release may be found on the website of the United States Attorney’s for the Southern District of Florida at 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 www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Controller for Washington, D.C. Law Firm Sentenced to 20 Months in Prison for Theft of over $960,000-Defendant Shifted Money from Firm’s Bank Accounts-Read the Press Release
WASHINGTON - Marc England, 45, was sentenced today to 20 months in prison on a federal charge stemming from his theft of over $960,000 from a Washington, D.C. law firm, announced U.S. Attorney Ronald C. Machen Jr. and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
England, of Covington, La., pled guilty in September 2014 in the U.S. District Court for the District of Columbia to one count of wire fraud. He was sentenced by the Honorable Tanya S. Chutkan. Upon completion of his prison term, England will be placed on three years of supervised release. He also was ordered to pay $652,641 in restitution; the firm had earlier received over $308,000 in restitution.
According to the government’s evidence, England worked at a small law firm in Washington, D.C., that is identified in court documents as “Company A.” He was the company’s controller. Beginning in August 2008, England began sending wire payments from the law firm’s bank account directly to various credit card accounts that he himself held. For some of the unauthorized transactions, England used the firm’s electronic accounts system to create fraudulent invoices appearing on their face to justify his unauthorized debits. Over the course of a four-year period, England caused the firm to execute 126 separate interstate wire transfers of monies from the firm’s checking account to various accounts held by England.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge McCabe commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Angela Lawrence; Assistant U.S. Attorneys Catherine K. Connelly and Arvind K. Lal, who handled forfeiture issues, and Assistant U.S. Attorney Richard DiZinno, who investigated and prosecuted the matter.
14-265Former Auto Leasing Company Owner Sentenced to Two Years in Federal Prison on Bank Fraud ConvictionRead the Press Release
DALLAS — The former owner and president of Curry Auto Leasing (CAL) in Dallas, who pleaded guilty in July 2014 to an information charging one count of bank fraud, was sentenced yesterday, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Christopher Mark Hood, 47, of Rockwall, Texas, was sentenced by U.S. District Judge David C. Godbey to 24 months in federal prison and ordered to pay approximately $1,170,620 in restitution. He must surrender to the Bureau of Prisons in January 2015.
CAL, located on Montfort Drive in Dallas, facilitated auto leases for individual and corporate clients by obtaining funding for the vehicles from various financial institutions. CAL served as the intermediary between the customer and the financial institutions, obtaining funding for the leases for the customer and then servicing the leases on behalf of the financial institutions.
According to documents filed in the case, beginning as early as September 2007 and continuing through at least October 2010, Hood knowingly executed a scheme to defraud the financial institutions by making false representations and promises concerning the auto leases and loans.
Hood’s scheme to defraud had two parts: (1) “double pledging” lease agreements with multiple financial institutions; and (2) providing a false guarantee to the financial institutions that CAL would provide a clear title to financed vehicles, knowing that clear titles could not be provided.
After obtaining financing from the originating financial institution to acquire one or more vehicles to be leased by CAL customers, on occasion, CAL through Hood, sought and secured subsequent funding for the same vehicle(s) from a second or new financial institution. At times, the secondary funding occurred at or about the time of the expiration of the original lease and/or for reducing the monthly cost to the customer. In some instances, however, the secondary funding occurred a few months after the original lease was funded by the original bank, without disclosure of the original lease to the secondary funding institution. At the time of the secondary financing, CAL, through Hood, represented to that financial institution that the funds paid through this financing would be paid timely to the original financial intuition so that a clear title could be obtained and provided. Hood knew this statement was false.
The U.S. Secret Service, the Federal Deposit Insurance Corporation and the FBI investigated. Assistant U.S. Attorney J. Nicholas Bunch prosecuted.
Florida Man Pleads Guilty in Manhattan Federal Court to Defrauding Investors in Multiple Securities Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN STALTARE pled guilty today to defrauding investors in connection with two fraudulent investment schemes. STALTARE’s first scheme involved defrauding investors in connection with the transfer of stock in Dematco, Inc. (“Dematco”). STALTARE’s second scheme involved defrauding investors in connection with soliciting investment in various stocks, including Dematco, Preventia, Inc. (“Preventia”), First Choice Healthcare Solutions, Inc. (“First Choice”), and Savtira Corporation (“Savtira”). STALTARE admitted misleading investors in connection with both schemes by making numerous false statements and misrepresentations and by misappropriating investment funds for his own personal use. STALTARE was arrested on August 8, 2013, and pled guilty today to a four-count Indictment before U.S. District Judge George B. Daniels.
STALTARE was previously convicted of securities fraud in United States v. Herbert Cannon et al., 04 Cr. 842 (GBD), in the Southern District of New York. STALTARE was sentenced to 32 months in prison by Judge Daniels in connection with his prior conviction.
Manhattan U.S. Attorney Preet Bharara stated: “Steven Staltare purported to offer investment opportunities, but was instead engaged in a shell game where he failed to pay for securities he purchased from one victim and offered them as collateral for a loan he secured from another victim whom he never repaid. He also took hundreds of thousands of dollars from other investors and never invested it as promised, instead using the money for himself. Now, having admitted his crimes, he stands to pay for them with his liberty.”
According to the allegations contained in the Indictment, the underlying criminal Complaint unsealed on August 7, 2013, and statements made during court proceedings:
First, from at least 2011 through 2012, STALTARE defrauded two investors (“Victim-1” and “Victim-2,” respectively) in connection with the transfer of shares of Dematco stock. In late 2011, STALTARE approached Victim-1 and asked Victim-1 to transfer hundreds of thousands of shares of Dematco stock that Victim-1 owned to a “partner” of STALTARE in exchange for $70,000 in cash. Victim-1 agreed to turn over his shares in Dematco in exchange for $70,000. At approximately the same time, STALTARE and another individual (“Partner-1”) approached Victim-2 and asked Victim-2 to loan them approximately $150,000 so that STALTARE could purchase shares of Dematco stock. STALTARE and Partner-1 promised Victim-2 that he would be paid $200,000 in three weeks and that Victim-2 would receive approximately 1/3 of the profits from the eventual sale of Dematco stock. Victim-2 was also promised that he would receive Dematco stock certificates as collateral for this loan. Based upon these representations, Victim-2 agreed to make this $150,000 loan to STALTARE and Partner-1. After Victim-2 made this loan, STALTARE provided Victim-2 with stock certificates that had been provided to STALTARE by Victim-1. Ultimately, STALTARE did not provide Victim-1 with the $70,000 that he had promised to pay in exchange for Victim-1’s shares of Dematco, nor did STALTARE provide Victim-2 with any repayment for the $150,000 loan or any profits from any sale of Dematco stock. In reality, STALTARE transferred Victim-1’s shares in Dematco to Victim-2 without compensating Victim-1, and misappropriated the funds provided by Victim-2 for STALTARE’s own personal benefit.
Second, from at least 2012 through 2013, STALTARE defrauded two other investors (“Victim-3” and “Victim-4,” respectively) by misappropriating funds intended for investment in the stock of various companies. STALTARE agreed to invest approximately $25,000 for Victim-3 in Preventia stock, promising significant investment returns. STALTARE also agreed to invest approximately $357,000 for Victim-4 in various securities, including stock in Dematco, Preventia, First Choice, and Savtira, again promising significant investment returns. However, once Victim-3 and Victim-4 provided STALTARE with the funds to invest in these stocks, rather than investing these funds in stocks on behalf of Victim-3 and Victim-4 as promised, STALTARE misappropriated these funds for his own personal benefit.
In the course of effectuating these fraudulent schemes, STALTARE defrauded victims in excess of $600,000 from 2011 through 2013.
STALTARE, 49, of Tampa, Florida, pled guilty to two counts of securities fraud and two counts of wire fraud. Each of the securities fraud and wire fraud charges carries a maximum term of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. STALTARE is scheduled to be sentenced on March 12, 2015, at 10:00 a.m. by Judge Daniels.
Mr. Bharara praised the investigative work of the USPIS.
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. Attorney Brian Blais is in charge of the prosecution.
Felon Convicted of Illegally Possessing Handgun and AmmunitionRead the Press Release
ALBANY, NEW YORK – A federal jury in Albany convicted VINCENT JACKSON, age 34, of Brooklyn and Albany, New York, today of illegally possessing a Diamondback DB-9 ninemillimeter pistol and 47 rounds of nine-millimeter ammunition after a four-day trial, announced United States Attorney Richard S. Hartunian and Acting Special Agent in Charge James S. Higgins of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
JACKSON faces a maximum sentence of imprisonment of ten years, a maximum fine of $250,000, and a three-year term of supervised release. JACKSON, who is held without bond, will be sentenced on April 1, 2015 by United States District Judge Mae A. D’Agostino.
The evidence presented at trial showed that JACKSON, a convicted felon, kept the fullyloaded DB-9 pistol and ammunition in his Albany apartment. JACKSON was on supervised release in connection with a prior federal drug felony when federal probation officers discovered the firearm and ammunition in JACKSON’s bedroom on September 11, 2013. Two cellular phones recovered from JACKSON’s bedroom, both used by JACKSON, contained photographs of the DB-9 pistol found in the bedroom, as well as text messages discussing the DB-9 pistol and other firearms.
This prosecution resulted from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Albany Police Department, and the United States Probation Office for the Northern District of New York. The case is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Eastern Idaho Man Pleads Guilty to Stealing over $280,000 from His EmployerRead the Press Release
POCATELLO- Matthew Lewis Udy, 45, of Idaho Falls, Idaho, pleaded guilty today to unauthorized use of an access device, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Udy was hired in December 2009, in Idaho Falls as a business and financial manager and was entrusted to handle his employer’s personal investments, rental properties, and other financial matters. From April 2011 through September 2013, Udy stole $150,346.52 from his employer related to his employer’s rental properties. Additionally, during the same time period, Udy fraudulently used five credit card accounts belonging to his employer, using the accounts to make unauthorized personal purchases. Udy used the accounts to receive $130,189 in payments or other things of value, including gift cards and hotel rooms. When interviewed by law enforcement, Udy admitted to disguising fraudulent credit card transactions by mirroring legitimate transactions and only paying the accounts with his employer’s funds.
The charge of unauthorized use of an access device is punishable by up to 15 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for February 17, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by the United States Secret Service and the Idaho Falls Police Department.
East St. Louis Resident Pleads Guilty to Possession of Child PornographyRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on December 2, 2014, Steven W. Beckman, 64, East St. Louis, IL, pled guilty to an Indictment charging him with Possession of Visual Depictions of Prepubescent Minors Engaged in Sexually Explicit Conduct. Because Beckman has a similar prior conviction, he faces an increased penalty of not less than ten years but not more than twenty years in federal prison, a fine up to $250,000, and a term of supervised release of not less than five years to life. Beckman’s sentencing is scheduled for March 23, 2015. Beckman has been held without bond since his arraignment on July 22, 2014.
The investigation began in March, 2014, when a detective with the Missouri Internet Crimes Against Children Task Force conducted an investigation which indicated that Beckman uploaded an image of child pornography to his Facebook page. Beckman was on federal supervised release for convictions from 2006 for child pornography offenses.
That same day, United States Probation Officers searched Beckman’s home and seized, among other items, approximately twenty-seven compact disks found in various areas of the house. When asked whether he possessed child pornography on any of the electronic media seized from his home, Beckman stated that there was child pornography mixed into the CD’s as well as on some other electronic media taken from his home.
Results from a federal search warrant revealed that twenty-seven CD’s recovered from the Beckman’s home contained images and video files of minors engaged in sexually explicit behavior, with the majority of the images depicting prepubescent males.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Missouri Internet Crimes Against Children Task Force, the United States Probation Office and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Dallas Man Faces up to 20 Years in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — A 27-year-old Irving, Texas, man appeared in federal court this morning, before U.S. Magistrate Judge Paul D. Stickney, and pleaded guilty to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Frank Olivarez, Jr., who is in federal custody, faces a statutory penalty of not less than five or more than 20 years in federal prison, up to a $250,000 fine and a lifetime of supervised release. Sentencing is set for May 4, 2015, before U.S. District Judge Sam A. Lindsay.
According to documents filed in the case, in February 2014, a task force officer with the FBI, who was conducting an investigation into the sharing of child pornography on a BitTorrent file-sharing network, identified a computer that was sharing files containing child pornography. The task force officer downloaded 695 image and video files from Olivarez, 648 of which were child pornography.
The FBI then secured a search warrant that they executed at Olivarez’s home. Olivarez admitted using BitTorrent software to download and view child pornography. Agents seized computer media from the home and further forensic analysis revealed that 33 images depicted the sexual exploitation of infants and toddlers.
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 FBI’s Child Exploitation Task Force investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Couple Arrested in ID Theft Scheme Targeting Walmart CustomersRead the Press Release
PITTSBURGH – Two former Butler County residents have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy, Social Security fraud and aggravated identity theft, United States Attorney David J. Hickton announced today.
The 15-count indictment, returned on July 29, 2014 and unsealed today, named Robert W. MacVittie, 33, and Jennifer MacVittie, aka Jennifer Dinwiddie, 31, formerly of Cranberry Twp., Pa., as defendants.
According to the indictment, from around October 2013 through May 2014, the MacVitties’ used cell phone cameras to “shoulder surf” Social Security numbers from Walmart customers nationwide by taking cell phone video images of the customers who were cashing checks at the customer service counters. The stolen information was later used to negotiate counterfeit checks at Walmart stores throughout the U.S., including Pennsylvania, West Virginia, Florida, Texas, Mississippi, Alabama, Kansas and other states. The couple was arrested at a small casino by law enforcement in Nevada on Nov. 29, 2014.
The law provides for a maximum total sentence of not more than 65 years in prison, a fine of $3,750,000, 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 Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force conducted the investigation that led to the indictment of Robert and Jennifer MacVittie. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the U.S. Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
An indictment is an accusation. The defendants are presumed innocent unless and until proven guilty.
Cleveland Man Indicted for Identity Theft and Credit Card FraudRead the Press Release
A Cleveland man was indicted today for operating an identity theft and credit card fraud scheme in which he defrauded 10 companies out of nearly $270,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Paul R. Tomko, 41, was indicted on 10 counts of bank fraud, nine counts of access device or credit card fraud, one count of aggravated identity theft, and one count of wire fraud. Tomko is accused of defrauding nine financial institutions out of $256,797 and one company out of $13,247 in 2013. He did this through the unauthorized use of another’s personal identification to obtain credit cards and lines of credit in that person’s name, according to the indictment.
Tomko approached someone identified as J.S. and sought financial assistance in paying for a lawn mower for the maintenance of property Tomko had in the Cinema Park Development, as required by the city of Warrensville Heights. Tomko obtained J.S.’s personal identification information in the process. Tomko then obtained nine credit cards and opened lines of credit in the name of J.S., and in the name of J.S.’s company, JMS Services Corporation, using the personal information of J.S. without J.S.’s authorization or knowledge, according to the indictment.
Tomko, without the authorization or knowledge of J.S., used the credit cards and lines of credit in the name of J.S. and JMS Services Corporation for Defendant’s own personal use, thereby running up a balance due and owing on each of these credit cards and lines of credit. Once Tomko ran up a balance on these credit cards, he then engaged in a scheme in which he made a payment on each of these credit cards with a worthless check or using an intentionally incorrect account number, thereby keeping the line of credit in place, or even increasing the line of credit with the appearance of a payment. Once Tomko’s check or payment was dishonored or returned, Tomko ceased to make any payments, leaving the financial institutions with a loss.
As a result of this scheme, the indictment charges that Tomko caused losses to the below listed financial institutions in the following approximate amounts:
Financial Institution
Amount
Key Bank
$63,629.72
$42,791.35
FNBO
$9,415.00
AmEx
$16,358.16
US Bank
$33,522.02
Barclays
$28,286.74
GE Capital
$10,000.00
Fifth Third
$23,894.84
Capital One
$28,899.67
Total
$256,797.50
Some of the unauthorized charges made by Tomko included payments by Tomko for the Cinema Park development property taxes ($33,882 and $26,252); the payment to Tomko’s defense attorneys to represent him in a criminal case ($8,700, $6,000 and $5,500); the payment of $10,000 to a physician for a medical procedure for Tomko; and numerous payments to Tomko as Dr. Paul Tomko. In the wire fraud charge, Tomko also used email communication to set up an unauthorized account, through JMS Services, to defraud Balboa Capital, an equipment leasing company in California, out of approximate $13,247, according to the indictment.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendant’s sentence will be determined by the Court after review of factors
unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.The case is being prosecuted by Assistant U.S. Attorneys Christian H. Stickan and Christos N. Georgalis following investigation by the FBI, Cleveland Office.
Bowie Man Sentenced in Residential Mortgage Fraud SchemeRead the Press Release
Used Another Individual’s Identity, False Income and Credit Information
to Induce a Lender to Provide a Home Mortgage Loan
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Abdallah Suleiman Kitwara, age 44, of Bowie, Maryland today to 15 months in prison followed by five years of supervised release for conspiring to commit wire fraud arising from a residential mortgage fraud scheme. Judge Hazel also ordered Kitwara to pay restitution of $290,954 and a fine of $50,000.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General - Office of Investigations; Inspector General Laura S. Wertheimer of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Kathy Michalko of the United States Secret Service – Washington Field Office; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to his plea agreement, from March 2007 to November 2008, Kitwara conspired with real estate agent Tibakweitira and others to unlawfully use the identity of another individual to buy residential property. For example, in May and June 2007, Kitwara used the stolen identity of another person, along with false income statements and credit information, to buy a residence in Washington, D.C. The conspirators inflated the sales price by creating false documents for repairs and renovations that were never made. After the settlement, the conspirators divided up the cash received for the purported repairs.
As a result of the conspiracy, Kitwara caused $290,954 in losses to the bank that was the lender for purchased property.
Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland previously pleaded guilty to the conspiracy and to aggravated identity theft. Tibakweitira has agreed to forfeit a Range Rover vehicle, and awaits sentencing.
Five other conspirators from Maryland have also pleaded guilty to their roles in the scheme, including: Tibakweitira’s wife Flavia Makundi, age 42, of Severn; Raymond Abraham, age 47, of Silver Spring,; Ayoub Luziga, age 36, of Bowie; Cane Mwihava, age 44, of Bowie; and Mokorya Cosmas Wambura, age 41, of Takoma Park. Abraham was sentenced on October 27, 2014 to 33 months in prison, and Luziga was sentenced on November 24, 2014 to 21 months in prison. Abraham and Luziga were both ordered to pay restitution of $999,726.55. Wambura was sentenced to five years in prison and ordered to pay restitution of more than $400,000. Mwihava is scheduled to be sentenced on December 27, 2014 at 11:30 a.m.
A jury convicted Annika Boas, age 37, of Mount Rainier, Maryland on September 19, 2014, for conspiracy, wire fraud and making a false statement on a loan application, arising from the scheme. Boas is scheduled to be sentenced on January 7, 2015 at 9:00 a.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein praised HUD-OIG, FHFA-OIG, Treasury OIG, U.S. Secret Service and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin DiGregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who prosecuted the case.
Augusta, WV Woman Charged in Methamphetamine Manufacturing OperationRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Cathy Ann Corbin, 50, of Augusta, West Virginia, was convicted for her role in producing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced today.
During an investigation by the Potomac Highlands Drug and Violent Crime Task Force, Corbin was discovered in possession of pseudoephedrine in January 2013 near Romney, West Virginia. She admitted her role in the manufacture of methamphetamine when she pled guilty to one count of “Possession of Pseudoephedrine to be used in Manufacture of Methamphetamine.”
Corbin faces up to twenty years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Antigo Man Sentenced for Federal Drug CrimeRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin, announced that John M. Hunter (age: 36) of Antigo, Wisconsin, was sentenced to 30 months in federal prison by Chief United States District Court Judge William C. Griesbach. Hunter had previously pled guilty to a single count of conspiracy to distribute controlled substances in violation of Title 21 United States Code, Sections 846 and 841(b)(1)(B), and Title 18 United States Code, Section 2.
Hunter was responsible for the distribution of over 50 kilograms of marijuana and over 1,500 grams of cocaine in the Langlade County area and in southeastern Wisconsin between May 2009 and August 2011. Hunter’s drug distribution network included numerous employees of the Merrill and Antigo School Districts, many of whom were charged in state court for drug related crimes.
In pronouncing sentence Chief Judge Griesbach noted the serious nature of the offense, the effect that Hunter’s actions had on his community, and the scourge that illegal drugs present to society. In addition to his prison sentence, Hunter was placed on 48 months of supervised release.
This case was investigated by the Langlade and Marathon County Sheriffs’ Departments. This case was prosecuted by Assistant United States Attorney Daniel R. Humble.
Alleged PCP Distributor Who Shot A DEA Agent Arraigned on Federal Narcotics and Assault ChargesRead the Press Release
COLUMBIA, SC – Joel Perrin Robinson has been arraigned on federal drugs and weapons charges in relation to the shooting of a DEA Agent while a search warrant was being executed at his home on October 20, 2014.
“This defendant is charged with opening fire on federal agents while they were serving a federal narcotics search warrant. A DEA Special Agent was seriously injured,” said United States Attorney Sally Quillian Yates. “This office will continue to work with its law enforcement partners to ensure that he is held accountable for his actions.”
John S. Comer, the Acting Special Agent in Charge of the DEA Atlanta Field Division stated, “The wounding of our agent during the execution of a Federal Search Warrant reinforces the daily dangers law enforcement officers face while conducting narcotics investigations. The DEA will work closely with our federal, state and local counterparts to assist the US Attorney’s Office in the prosecution of this matter.”
David A. Thomas, Special Agent in Charge of the FBI’s Columbia Field Office said, “This case is the result of an unfortunate reality that happens far too often to law enforcement officers working selflessly to make our communities safer. It is a grim reminder of the violence associated with the illegal drug trade and the dangers faced by law enforcement officers trying to stop it.”
According to United States Attorney Yates, the charges, and other information presented in court: Beginning in 2007, Robinson, along with co-conspirators Coleman Warnock and Adrian Banks (both have been charged with narcotics offenses in the Northern District of Georgia) allegedly purchased, stored, brokered, distributed and used a number of chemicals, including piperidine, a PCP precursor, to manufacture large quantities of PCP, a controlled substance. At the direction of Warnock, Banks transported chemicals used to manufacture PCP from the Atlanta, Ga., area to Robinson, who stored the chemicals at his residence in Orangeburg, SC. Then, Robinson, Warnock and Banks allegedly transported chemicals used to manufacture PCP from South Carolina to other jurisdictions.
On July 6, 2013, Warnock and two other individuals were processing chemicals associated with PCP manufacturing at a residence located in Fairburn, Ga. On that date, a green GMC Canyon pickup truck registered to a relative of Robinson was located at the residence, along with two trailers which had been used by Warnock, Banks, and Robinson to transport chemicals associated with PCP manufacturing. One of the trailers was purchased and titled in the name of a relative of Robinson. At some point during the processing of the chemicals, a fire erupted and burned for two days - destroying the residence.
On or about December 4, 2013, at the direction of Warnock, another individual transported a trailer which contained, among other items, 55-gallon drums of piperidine to Robinson’s Orangeburg residence.
On October 20, 2014, at approximately 6:15 a.m., DEA Special Agents and Task Force Agents were executing a federal search warrant to search Robinson’s Orangeburg residence for evidence of a drug trafficking crime while announcing “police, search warrant” in a loud and continuous manner. The indictment alleges that Robinson fired four shots from his bedroom. Then, he walked out of his bedroom into the pool area of the residence. At that time, Robinson allegedly used a laser sight on his .45 caliber pistol and fired an additional two rounds at DEA agents who were part of the search warrant team, providing coverage for agents executing the search warrant in the garage area. One of the rounds fired by Robinson struck a DEA Special Agent in the right elbow, causing the agent serious injury. Robinson then surrendered to law enforcement and was placed under arrest.
During the search of the residence, agents also located an AR-15 rifle with three magazines and Aim Shot scope, a 16-gauge shotgun, a semi-automatic rifle, a .22 caliber semi-automatic rifle, a 12-gauge shotgun, a bolt action rifle, a .22 caliber revolver, a .38 caliber revolver with laser grip sight, and a 380 handgun with magazine and laser sight. A bulletproof vest was also recovered from Robinson’s bedroom.
A federal grand jury seated in the District of South Carolina returned the indictment for Joel Perrin Robinson, 32, of Orangeburg, SC., on November 20, 2014. He was arraigned before a United States Magistrate Judge in Columbia, SC.
The United States Attorney’s Office for the Northern District of Georgia is handling the prosecution of Robinson as the United States Attorney’s Office for the District of South Carolina has voluntarily recused itself from the case.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.Special Agents and Task Force Agents of the Drug Enforcement Administration and the Federal Bureau of Investigation are conducting the investigation of this case. Valuable assistance was also provided by the Georgia Bureau of Investigation, Georgia State Fire Marshal’s Office, Fulton County Fire Department, Atlanta Fire Department, Snellville Police Department, Henry County Sheriff’s Department, Clayton County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Office, Fifth Circuit Solicitor’s Office, and the Columbia Police Department.
Assistant United States Attorneys Michael Herskowitz, and Vivek Kothari, who have been admitted as Special Assistant U.S. Attorneys in the District of South Carolina, are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Albuquerque Woman Sentenced to Federal Prison for Bank Fraud and Identity Theft ConvictionRead the Press Release
ALBUQUERQUE – Christina Knight, 30, of Albuquerque, N.M., was sentenced yesterday afternoon to 32 months in federal prison followed by five years of supervised release for her conviction on bank fraud and aggravated identity theft charges.
Knight and her co-defendants, Raymundo Silva, 35, and Patricia Diaz, 36 both of Los Lunas, N.M., were indicted in Aug. 2013, on conspiracy, bank fraud and aggravated identity theft charges. The trio subsequently was charged in a 31-count superseding indictment alleging conspiracy to commit bank fraud; 24 counts of bank fraud, including eight counts against Silva, three counts against Diaz, and 13 counts against Knight; and six counts of aggravated identity theft against Knight.The superseding indictment generally charged Silva, Diaz and Knight with engaging in a scheme to commit bank fraud between Dec. 2011 and April 2013. According to the superseding indictment, Knight, Silva and Diaz perpetuated the scheme by stealing checks from residential mailboxes, altering the names of payees and the amounts on the checks, and cashing the checks using either their own identities or, in the case of Knight, the identities of others.
Knight entered guilty pleas on Feb. 20, 2014, to the bank fraud conspiracy, 13 substantive bank fraud charges, and one count of aggravated identity theft. Earlier, on Oct. 28, 2013, Diaz entered a guilty plea to the bank fraud conspiracy and three substantive bank fraud charges. Silva was convicted on Feb. 27, 2014, on the bank fraud conspiracy and five substantive bank fraud charges after a four-day jury trial.
According to court records and trial evidence, in Dec. 2011, a Los Lunas police officer investigating a check washing and identity theft ring targeted a sedan seen leaving a Los Lunas bank following a failed attempt to cash a fraudulent check. In Feb. 2012, after surveillance established that the sedan frequently visited a residence in Belen, Los Lunas police officers executed a search warrant at the residence and seized chemicals and other products commonly used to wash and alter checks, several driver’s licenses, college IDs and Social Security cards, bank receipts and other evidence.
Investigation by Homeland Security Investigations (HSI) and the Los Lunas Police Department identified Silva, Diaz and Knight as the members of the bank fraud scheme in late 2012, following the theft of five checks from the mailbox of a Los Lunas residence. Silva cashed one of the checks on Dec. 26, 2012, and between Dec. 20, 2012 and Jan. 4, 2013, Knight cashed three of the checks by using the identification of another person. Each of these four checks had been altered by changing the name of the payee and amount. Laboratory analysis by HSI revealed that the chemicals seized from Silva’s residence were used to wash the checks.
Silva was sentenced on Aug. 1, 2014, to 30 months in federal prison followed by five years of supervised release.Diaz was sentenced on March 18, 2014, to 62 days of time-served followed by five years of supervised release and was ordered to pay $400.00 in restitution. On June 5, 2014, Diaz was arrested for violating the conditions of her supervised release. She was sentenced on July 10, 2014, to three months in custody followed by four years of supervised release.
This case was investigated by the Albuquerque office of HIS, the Los Lunas Police Department and Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorneys Norman Cairns and Paul Mysliwiec.
Monday 1 December 2014
“No-Show” Doctor Pleads Guilty in Connection with $13 Million Health Care Fraud SchemeRead the Press Release
BROOKLYN, NY – Connecticut resident Dr. Okon Umana, 67, pleaded guilty today in federal court in the Eastern District of New York to conspiring to defraud the United States in connection with his role as a “no show” doctor in a $13 million health care fraud scheme. Dr. Umana is the last of nine defendants charged to plead guilty in connection with the scheme at the Cropsey Medical Care PLLC clinic in Bensonhurst, Brooklyn.
Today’s guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and Thomas O’Donnell, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).
“Dr. Umana dishonored his medical license when he fraudulently billed Medicare and Medicaid at the taxpayers’ expense,” stated United States Attorney Lynch. “Dr. Umana is the final defendant to be convicted in connection with the government’s investigation of the Cropsey Medical Care clinic, which submitted more than $13 million in fraudulent claims to Medicare and Medicaid. We will continue to investigate and prosecute fraud to protect the integrity of these vital health care programs.” U.S. Attorney Lynch extended her grateful appreciation the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General, for their outstanding work on the investigation.
According to court documents, from 2009 to 2012, Umana was the medical director of the Cropsey Medical Care clinic. Patients at Cropsey Medical received medically unnecessary physical therapy, diagnostic testing and other services, which were provided by a physician assistant who was acting without supervision. Such purported medical services were then fraudulently billed by Cropsey Medical to Medicare and Medicaid under Dr. Umana’s provider number. From approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests that were not medically necessary and often did not even occur.
Dr. Umana pleaded guilty before U.S. District Judge John Gleeson. At sentencing on April 15, 2015, Dr. Umana faces a maximum penalty of five years in prison, a fine of over $250,000, restitution of up to $6,429,330 and forfeiture of $6,550,036.
The case was investigated by the FBI and HHS-OIG, brought as part of the Medicare Fraud Strike Force, and supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Assistant U.S. Attorney Shannon C. Jones of the Eastern District of New York and Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to prevent and deter fraud and enforce anti-fraud laws around the country. Since its inception in March 2007, the Strike Force, now operating in nine cities, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov
The Defendant:
OKON UMANA
Age: 67
West Haven, Connecticut
E.D.N.Y. Docket No. 12 CR 617 (S-1)
Washington County Man Sentenced to 60 Months in Prison for Receiving Child PornographyRead the Press Release
Defendant Used his Computer and the Internet to Download and Save Dozens of Child Pornography Files
ALBANY, NEW YORK – TIMOTHY TEFFT, age 65, of Greenwich, New York was sentenced on November 25, 2014 to 60 months of imprisonment for receiving child pornography by Chief United States District Court Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. TEFFT, who had entered a guilty plea on May 2, 2014, was also ordered to serve a fifteen year term of supervised release, to have no unsupervised contact with minors, and to register with the New York State Sex Offender Registry Program.
Between January 1, 2009 and May 3, 2011, TEFFT used a computer to access the Internet to download and save dozens of files that contained child pornography. TEFFT also transferred some of these child pornography files onto portable storage devices for viewing at a later time.
This case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Rick Belliss.
Warwick Man Sentenced to Nearly 24 Years in Prison for Exploitation of 7-Year-Old ChildRead the Press Release
PROVIDENCE, R.I. – Sean Keener, 27, of Warwick, R.I., was sentenced today to 286 months in federal prison for exploiting a 7-year-old child by producing and distributing pornographic images and videos of the child, some of which were posted on a Russian file-sharing web site, announced United States Attorney Peter F. Neronha; Bruce M. Foucart, special agent in charge of Homeland Security (HSI) Investigations for New England; and Warwick Police Chief Colonel Stephen M. McCartney.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Keener to serve lifetime supervised release upon completion of his prison term. Keener pleaded guilty on March 24, 2014, to an indictment charging him with one count each of production, possession and distribution of child pornography. No plea agreement was filed in this case.
In June 2013, HSI agents in Boston seized digital storage drives which contained photographs depicting child pornography, including sexually explicit photographs of a 7-year-old girl from Rhode Island. HSI agents also discovered an email address later linked to Sean Keener and to a folder he created on a Russian file-sharing website which contained numerous pictures of the same child. With the assistance of the Warwick Police Department, both Keener and the girl depicted in the photographs were identified as residents of Rhode Island.
A court authorized search by HSI agents and Warwick Police of a residence where Keener was staying resulted in the seizure of two computers and two cell phones belonging to Keener which contained more than 5,100 images and 586 videos depicting minors engaged in sexually explicit conduct.
United States Attorney Peter F. Neronha commented, “There are some cases that leave one almost speechless. This is just such a case. That a person entrusted with the care of a child, with no higher responsibility than to protect that child from harm, would instead victimize her in such a horrific way, is just reprehensible. Today’s long prison sentence is entirely deserved, yet no jail sentence, however long, can restore what this child has lost.”
“Crimes against children are some of the most heinous we encounter,” said Bruce Foucart, special agent in charge of HSI Boston. “I sincerely hope this sentencing serves as a first step in the recover process for the victim. Fortunately, as a result of our collaboration with federal, state, and local law enforcement partners, this child predator can no longer victimize innocent children.”
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]United States Files Suit Against Air Ideal and its Owner for Allegedly Submitting False Claims Under Historically Underutilized Business Zone ProgramRead the Press Release
The United States has filed a complaint against Orlando, Florida, based Air Ideal Inc. and its owner, Kim Amkraut, for allegedly making false statements to the Small Business Administration (SBA) to obtain certification as a Historically Underutilized Business Zone (HUBZone) company, the Justice Department announced today.
“The HUBZone program is intended to create jobs in areas that have historically had trouble attracting business,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “This suit demonstrates that the United States will hold accountable those who knowingly violate the requirements of this vital program.”
“The HUBZone procurement program imposes very clear requirements upon contractors that must be followed,” said U.S. Attorney A. Lee Bentley III for the Middle District of Florida. “By intervening in this case, we reaffirm our commitment to maintaining the integrity of vital programs such as these, which undergird our economy.”
Under the HUBZone program, companies that maintain their principal office in a designated HUBZone and meet certain other requirements can apply to the SBA for certification as a HUBZone small business company. HUBZone companies can then use this certification when bidding on government contracts. In certain cases, government agencies will restrict competition for a contract to HUBZone-certified companies.
The complaint alleges that Air Ideal and Kim Amkraut originally applied to the HUBZone program in 2010 by claiming that Air Ideal’s principal office was located in a designated HUBZone. The complaint further alleges that, in fact, this location was a “virtual office” where no Air Ideal employees worked and Air Ideal was actually located in a non-HUBZone location. Allegedly, the defendants not only misrepresented the location of Air Ideal’s principal office to the SBA, but also submitted to the SBA a fabricated lease agreement for its purported HUBZone office.
The complaint alleges that Air Ideal used its fraudulently-procured HUBZone certification to obtain contracts from the U.S. Coast Guard, U.S. Army, U.S. Army Corps of Engineers and the U.S. Department of Interior that were worth millions of dollars. Each of those contracts had been set aside for qualified HUBZone companies. The complaint asserts claims against Air Ideal and Kim Amkraut under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
“The HUBZone Program offers significant benefits to eligible small businesses and is an important tool for unlocking the potential of historically underutilized business zones,” said Inspector General Peggy E. Gustafson for the SBA. “Preferences for federal contract awards must not be given to persons who lie in order to claim eligibility. This type of fraud undermines confidence in the HUBZone Program and other small business set-aside contract programs.”
The United States filed its complaint in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act. Under the act, a private citizen can sue on behalf of the United States and share in any recovery. The United States is entitled to intervene in the lawsuit, as it has done here.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida, in conjunction with the SBA’s Office of Inspector General and Office of General Counsel, the U.S. Department of Homeland Security’s Office of Inspector General and the Defense Criminal Investigative Service.
The case is U.S. ex rel. Hopson v. Air Ideal, Inc. and Kim Amkraut, No. 6:13-cv-775-Orl-37GJK (M.D. Fla.).
The claims asserted against Air Ideal and Kim Amkraut are allegations only, and there has been no determination of liability.
United States Attorney Announces Financial Recoveries of over $14 Million in Eastern Wisconsin and over $24 Billion Nationwide on Behalf of United States TaxpayersRead the Press Release
United States Attorney James L. Santelle today announced that, in Fiscal Year 2014 (October 1, 2013, through September 30, 2014), the Eastern District of Wisconsin Office collected $14,054,999.07 in criminal and civil collections and in asset forfeiture actions. This amount includes $2,530,748.94 in criminal cases, $4,581,800.13 in civil matters, and $6,942,450.00 in forfeiture proceedings.
Santelle announced further that, in its partnered work with other United States Attorneys’ Offices and litigating components of the United States Department of Justice, the Office of the United States Attorney in Eastern Wisconsin collected an additional $731,108.81. Of this amount, $16,492.71 was collected in criminal actions, and $714,616.64 was collected in civil actions. The combined, total financial recovery of more than $14 million is more than twice the annual budget for the operation of the entire office in Eastern Wisconsin.
Today’s announcement of total financial recoveries in Eastern Wisconsin follows the related announcement by Attorney General Eric H. Holder, Jr. that, in this same time period—that is, Fiscal Year 2014—the Department as a whole collected $24.7 billion in civil and criminal actions. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 United States Attorneys’ Offices nationwide and the Washington-based litigating divisions for Fiscal Year 2014.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
Joining the Attorney General in these significant announcements, Santelle commented: “I am proud of the highly professional, dedicated, and productive work of my staff—including all of our criminal and civil attorneys and our equally stellar professional support personnel—who are collectively responsible for bringing into the coffers of the United States Treasury these significant sums on behalf of our constituents—the people of the Eastern District of Wisconsin. In our daily efforts to enforce the many civil and the criminal judgments entered in favor of the United States of America, we are aggressive yet even-handed, purposeful yet fair, and creative yet balanced in meeting one of our principal missions—that is, collecting monies due and owing to the federal government.”
The Offices of the United States Attorneys, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts that are owed to the United States and that are due to victims of various types of financial crimes. Federal law contemplates that defendants convicted of crimes pay restitution to those victims who have suffered physical injuries or financial losses. While restitution is paid directly to the victims, criminal fines and related assessments are paid to the United States Department of Justice’s Crime Victims Fund, which, in turn, distributes monies to state victim compensation and victim assistance programs. Similarly, forfeited assets—the product of joint work with federal, state, and local law enforcement offices and units—are deposited into the Department’s Justice Assets Forfeiture Fund, from which they are used to restore monies to crime victims and to support a variety of equally beneficial law enforcement missions and goals.
Santelle explained further: “As in past years, our affirmative civil docket continues to generate significant sums of money which we recover in pursuing fraud and other types of misconduct in the administration of federal dollars; these sums also include fines and penalties imposed on individuals and corporations for their proven violations of federal health care, safety, civil rights, environmental, education, and other program-type laws.” These civil monetary obligations are enforced by the Office of the United States Attorney on behalf of many federal agencies—including but not limited to the United States Department of Agriculture, the United States Department of Education, the United States Department of Health & Human Services, the United States Department of the Treasury (including the Internal Revenue Service), and the United States Small Business Administration.Santelle concluded: “In their focused and effective invocation of federal civil and criminal mechanisms and administrative processes, the staff of our Financial Litigation Unit, the staff of our Asset Forfeiture Unit, and our industrious colleagues in the many federal agencies that we represent collaboratively recover and return significant amounts of money on behalf of the people of this district. Our enforcement actions not only promote the rule of law and serve the ends of justice but also confirm that investment in and support of the mission and the purpose of United States Attorneys’ Offices is sound and beneficial.”
For further information about the information and commentary in this release, please contact Public Information Officer Dean Puschnig, Office of the United States Attorney, at (414) 297-1700, or at [email protected].
Two Insurance Agents Plead Guilty in Statewide Fake Insurance Scheme Involving Underground Storage TanksRead the Press Release
The EPA and FBI disrupted the scheme in a joint undercover operation
GRAND RAPIDS, MICHIGAN – The Environmental Protection Agency and the Federal Bureau of Investigation have uncovered and disrupted a scheme involving the fabrication of insurance certificates that were sold to owners and operators of underground storage tanks (“USTs”) throughout the state of Michigan. The fake documents made it appear that certain USTs were in compliance with laws requiring owners and operators of USTs to demonstrate the ability to clean up any environmental contamination caused by a leaking tank. Two insurance agents in Lansing, Michigan, have pled guilty for their roles in creating and selling fake insurance certificates to owners and operators of USTs.
Federal and state law requires owners and operators of certain underground storage tanks to obtain proof of financial assurance in the event of a release into the environment. Most owners and operators comply with the law by obtaining an annual insurance policy that would cover up to $1 million in clean-up costs and damages. The fake document scheme, which ran from 2011 to 2013, primarily involved gas stations with underground storage tanks that were either uninsurable due to age or condition, or were expensive to insure due to their age. Rather than replace the aging tanks, UST owners and operators purchased fake insurance certificates created by two Lansing insurance agents that made it appear to federal and state UST inspectors that the USTs were in compliance with the law. In reality, those gas stations had no insurance in the event of a leak.
The scheme was disrupted after undercover operations conducted by the EPA and FBI in the Lansing area successfully infiltrated the fraudulent creation and sale of fake documents by Allen P. Chadderdon, of Williamston, Michigan, and Dean P. Tucker, of Lansing, Michigan. Immediately upon disrupting the scheme, the EPA and State of Michigan sought to identify which USTs were not in compliance with the financial assurance requirements to mitigate the risk of harm to the environment. Gas stations that failed to present a genuine insurance policy were shut down until the owner or operator demonstrated compliance with the law.
Chadderdon and Tucker pled guilty in federal court to fabricating insurance certificates that they sold to UST owners and operators. Federal law prohibits altering or fabricating documents with the intent to impede, obstruct, or influence the proper administration of any matter that is within the jurisdiction of a federal agency. Both defendants face a maximum of 20 years in prison for the offense, but the Court will determine the sentence after considering the federal sentencing guidelines and the statutory sentencing factors. Chadderdon will be sentenced on December 3, 2014, and Tucker will be sentenced on March 5, 2015.
U.S. Attorney Patrick Miles, Jr. said, “This fraud scheme presented a serious risk of harm to many communities across Michigan. Residents of more than 30 different cities — including Battle Creek, Lansing, Ann Arbor, and Detroit — were exposed to the risk of leaking underground storage tanks where no insurance was available to pay for clean-up costs or injuries. Fuel and oil that leaks from underground storage tanks threatens not only the land surrounding the tank, but can harm drinking water and our state’s rivers and lakes. This investigation and criminal case helps ensure that owners and operators of USTs comply with the law and those who knowingly help others evade the law will be brought to justice.”
“About half of the nation’s population gets its drinking water from groundwater supplies,” said Randall K. Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Michigan. “Leaking underground storage tanks pose a significant threat to the quality and safety of that groundwater. To protect human health and the environment, EPA must receive accurate and honest documents. These recent pleas demonstrate that insurance agents who callously place the American people at risk by falsifying official certificates will be held accountable for their actions.”
“The perpetrators’ fraudulent scheme to mislead federal and state inspectors placed several Michigan communities in harm’s way and exposed these areas to the risk of leaking fuel and oil from underground storage tanks throughout the state,” said Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The FBI, along with our federal, state and local partners, remains vigilant in its efforts to bring to justice those who actively assist others in evading the law and expose our communities to potential harm.”
The underground storage tank cases are being prosecuted by Assistant U.S. Attorney Christopher O’Connor.
END
Toxic Marijuana Grow Nets 10-Year Prison TermRead the Press Release
FRESNO, Calif. — Hernan Cortez Villasenor (Cortez), 40, of Michoacàn, Mexico, was sentenced today to 10 years in prison for his involvement in a toxic marijuana cultivation operation in the Greenhorn Creek area of the Sequoia National Forest in Kern County, United States Attorney Benjamin B. Wagner announced. Cortez was also ordered to pay $3,328 in restitution to the U.S. Forest Service for the damage caused by his marijuana cultivation operation.
On July 7, 2014, Cortez pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute marijuana and distributing unregistered pesticides, in violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). According to court documents, Cortez supplied toxic rat poison and other chemicals and materials to support the 8,876 marijuana plants growing on public land. The site sustained extensive damage as a result of the cultivation activities. Native oak trees and other vegetation were cut down or otherwise killed to make room for the marijuana plants. The soil was tilled, and fertilizers and pesticides, including Fosfuro de Zinc, a common Mexican rat poison containing zinc phosphide, were spread throughout the site. Law enforcement officers also found 30 containers of Fosfuro de Zinc at Cortez’s residence in Arvin, California.
The EPA has designated zinc phosphide as a restricted-use pesticide, which means that it may only be purchased and used by, or under the supervision of, a certified applicator. Zinc phosphide is banned for residential sale due to its acute toxicity. A single swallow can be fatal to a small child.
Upon completion of his prison sentence, Cortez is subject to deportation to Mexico.
This case was the product of an investigation by the U.S. Forest Service, U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.