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Wednesday 26 November 2014
Columbus Man Arraigned on Federal Child Pornography ChargesRead the Press Release
Samuel Elliott Charged with Producing and Possessing Child
Pornography Involving Three Young ChildrenALBUQUERQUE – Samuel Elliott, 30, of Columbus, N.M., was arraigned in federal court in Las Cruces, N.M., on Tuesday (Nov. 24, 2014) on an indictment charging him with child pornography offenses. Elliott entered a not guilty plea to the eight-count indictment. During a detention hearing this morning, a United States Magistrate Judge ordered Elliott detained pending trial.
Counts 1 through 3 of the indictment allege that between Dec. 2012 and July 2014, Elliott enticed three young children to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. Count 1 alleges that Elliott produced child pornography depicting a child between one and five years of age; Count 2 alleges that he produced child pornography depicting a child over the age of five years; and Count 3 alleges that he produced child pornography depicting a child between one and five years of age. Counts 4 through 8 each allege that Elliott possessed child pornography on July 24, 2013. All eight crimes allegedly occurred in Luna County, N.M.
Elliott’s trial date has yet to be scheduled. If convicted, Elliott faces a federal prison term of not less than 15 years and not more than 30 years on each production of child pornography charge. If convicted, Elliott faces up to 20 years in federal prison on each of the possession of child pornography charges. Elliott also would be required to register as a sex offender. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.This case was investigated by the Las Cruces office of Homeland Security Investigations, the New Mexico State Police and the Las Cruces Police Department.
The case is being prosecuted by Assistant U.S. Attorney Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Child Pornographer Sentenced to 60 Months IncarcerationRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that on November 26, 2014, RANDY YABUT PALAGANAS was sentenced by Chief Judge Frances Tydingco-Gatewood, Chief Judge of the U.S. District Court of Guam, to 60 months incarceration and five years of supervised release.
This sentence follows Defendant PALAGANAS’s plea of guilty on November 13, 2013, to one count of Receipt of Child Pornography in violation of 18 U.S.C. § 2252A(a)(2). As part of his plea, Defendant PALAGANAS admitted to utilizing a peer-to-peer (P2P) network to receive approximately 73 movies that depicted the sexual abuse of young children. In addition to the sentence of 60 months of incarceration and five years of supervised release, Defendant PALAGANAS was ordered to register with the Sex Offender Registry in any jurisdiction in which he lives, works or attends school. He was also ordered to forfeit his computer.U.S. Attorney Limtiaco states, “Child pornography offenses involve the sexual abuse and exploitation of children. These offenses are extremely serious because they result in perpetual harm to the child victims, and normalize the sexual exploitation of children. When the Internet is utilized to obtain these images of child sexual abuse, the images can travel to offenders domestically and internationally anywhere in the world, to include into the Pacific region. The harm to victims is life-long. The U.S. Attorney’s Office remains committed to aggressively prosecuting defendants who victimize and prey on children through any means, including by computer.”
The U.S. Attorney additionally reminds defendants who have committed sexual abuse of children that, under federal and local law, all sex offenders have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction. Sex offenders who travel to Guam and who reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school. They must also periodically update their registration information. The U.S. Attorney notes that the Sex Offender Registry was created in order to protect the public by protecting victims, preventing further victimization and informing the public of the whereabouts of sex offenders. Guam’s Sex Offender Registry can be found online at www.guamcourts.org.U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.
The investigation was conducted by the Federal Bureau of Investigations. The case was handled by Assistant U.S. Attorney R. San Nicolas.Charlotte Woman Pleads Guilty to Conspiracy to Defraud Medicaid of More Than $4.3 MillionRead the Press Release
Today’s Plea is One of Four for Similar Schemes
CHARLOTTE, N.C. – A Charlotte woman appeared in federal court today and admitted to conspiring to defraud Medicaid of at least $4.3 million, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Aliya Boss, 35, of Charlotte, pleaded guilty before U.S. Magistrate Judge David C. Keesler to one count of health care fraud conspiracy.
In a separate case, Zaria Davis Humphries pleaded guilty on Tuesday, November 24, 2014, to one count of health care fraud conspiracy for attempting to steal over $850,000 from Medicaid. In a still further separate case, charging documents and plea agreements have been filed against two women also facing health care fraud conspiracy charges. Sakeenah David Davis and Kino Legette Williams are expected to enter formal guilty pleas on Thursday, December 4, 2014, for conspiring to defraud Medicaid of at least $1.6 million.
U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID), and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
Aliya Boss,,
According to filed documents and today’s plea hearing, from 2012 to June 2013, Boss participated in a scheme to defraud Medicaid of at least $4.3 million by submitting false reimbursement claims for mental and behavioral health services that she did not provide. Filed court documents indicate that Boss, a licensed social worker, is approved by Medicaid to bill for and receive reimbursement for therapy services provided to Medicaid recipients. According to court documents, Boss conspired with others and agreed to allow at least two mental health companies to submit fraudulent reimbursement claims to Medicaid using her provider number for sham mental and behavioral health services that Boss never provided. Court documents indicate that, in some instances, the fraudulent reimbursement claims submitted to Medicaid claimed that Boss had provided as many as 140 hours of therapy during a single 24-hour day. In exchange for lending her Medicaid provider number Boss received monthly payments from the companies, even though she knew she never provided those services.
In addition to “renting out” her provider number, court documents indicate that, at the assistance of one conspirator, Boss submitted false claims to Medicaid for fraudulent counseling services through her own company, “Boss Counseling and Consulting, LLC.” According to court records, Boss billed Medicaid for fraudulent therapy services using the Medicaid numbers of beneficiaries collected by another member of the conspiracy working as a “patient recruiter.” Court records indicate that the patient recruiter collected the Medicaid numbers from the recipients in exchange for cash or indirectly by paying for food and taxi rides, among other things. According to court records, the conspirators then used the beneficiaries’ numbers to file the fraudulent reimbursements, claiming, in some instances, that Boss provided therapy services to more than 200 Medicaid recipients in a single day and billing for more than 64 hours of therapy over the course of a 24-hour period. In all, court records show that Boss and her conspirators caused Medicaid pay out over $1,135,302.27 as a result of the false claims, of which $306,965.56 was paid out directly to Boss.
Boss was released on bond following her guilty plea. The maximum prison term for the health care fraud conspiracy charge is 10 years and a $250,000 fine. Boss has also agreed to pay restitution, the amount of which will be determined by the Court at sentencing, which has not been set yet.
Zaria Davis Humphries
In a separate case, on Tuesday, November 24, 2014, Zaria Davis Humphries pleaded guilty to one count of health care fraud conspiracy. Humphries, 41, of Charlotte, admitted before Judge Keesler that she participated in a similar health care fraud scheme that attempted to defraud Medicaid of over $850,000 by submitting false claims for mental and behavioral health services that were never provided. Of the claims submitted, court records indicate that Medicaid paid out a total of $222,037 directly to Humphries. Court records in this case indicate that Humphries is a licensed social worker and the owner and operator of “Life Impact Solutions, LLC” (Life Impact), a company specializing in behavioral and counseling services. Court records show that from January to June 2013, Humphries and her conspirators submitted fraudulent claims to Medicaid for non-existent services, using Humphries’ Medicaid provider number. According to court records, at the assistance of one conspirator, Humphries filed the fraudulent claims using the Medicaid number of beneficiaries collected by a patient recruiter. As part of her plea agreement, Humphries admitted that, in some instances, she claimed she personally provided more than 39 hours of therapy in a 24-hour period and that she provided therapy to more than 100 Medicaid recipients in one day. Humphries was also released on bond and is awaiting sentencing. She faces a maximum prison term of 10 years and a $250,000 fine.
Sakeenah Davis & Kino Williams
Two more women face health care fraud conspiracy charges in connection with a scheme that attempted to defraud Medicaid of at least $1.6 million. Filed court documents indicate that that Sakeenah David Davis, 37, and Kino Legette Williams, 36, both of Charlotte, each have agreed to plead guilty to one count of heath care fraud conspiracy for filing fraudulent reimbursement claims with Medicaid for outpatient behavioral services that were never provided. Court documents show that the two women owned and operated “New Choices Youth and Family Services,” (New Choices), a Medicaid-approved company that purportedly provided outpatient mental and behavioral therapy services. According to court records, from October 2012 to July 2013, Davis and Williams hired a conspirator as the director of New Choices and agreed to pay her $4,000 per month for her services. Court records show that the director-conspirator billed Medicaid for fraudulent services never provided by New Choices.
Court records show that all the claims submitted to Medicaid from New Choices listed “S.B.” as the attending clinician, even though S.B. did not provide the claimed services. In some instances, according to court records, New Choices’ billing claimed that the hours of therapy S.B. had provided over the course of a single day far exceeded a 24-hour period, in one instance claiming more than 77 hours of therapy in one day. Court records also show that the conspirators used the Medicaid numbers of beneficiaries collected by a patient recruiter and fabricated patient notes to cover up the fraud. According to court records, the defendants were aware of the scheme but did not inquire about or attempt to stop the fraud. Instead, according to court records, they used some of the stolen funds to pay for personal expenses, including jewelry and to pay for Davis’s wedding. Davis and Williams admitted that fraudulent reimbursement claims totaling $1,696,225 were submitted to Medicaid over the course of the scheme, of which $506,124 was paid out to Williams and Davis.
The defendants are expected to appear in court on Thursday, December 4, 2014, before U.S. Magistrate Judge David S. Cayer to formally accept their guilty pleas. The health care fraud conspiracy charge carries a maximum prison term of 10 years and a $250,000 fine.
The FBI conducted the investigations with the assistance of MID. The prosecution of the cases is handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Charlotte Office.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
Cedar Rapids Man Pleads Guilty to Five Federal Charges, Including Distributing Heroin Resulting in DeathRead the Press Release
A Cedar Rapids man who distributed heroin that caused a heroin overdose death pled guilty on November 24, 2014, in federal court in Cedar Rapids.
Ramon Cortez Freeman, age 35, from Cedar Rapids, Iowa, was convicted of distribution of heroin resulting in death, three counts of distributing heroin, and being a felon in possession of a firearm and ammunition.
At the plea hearing, Freeman admitted he distributed heroin to another individual in January 2014. The heroin Freeman distributed was used by an individual identified as D.L., who used the heroin and died of a heroin overdose. Freeman also admitted to distributing heroin in February and twice in July. Court documents reflect the heroin distributed by Freeman in February and July was determined to be around 70% pure. Freeman also admitted he possessed a .45 caliber pistol loaded with seven rounds of ammunition in April 2014. Freeman admitted he had previously been convicted of drug felonies in Chicago, Illinois.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Freeman remains in custody of the United States Marshal pending sentencing. Freeman faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life, $4,250,000 in fines, $500 in special assessments, and a lifetime term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-100-1-LRR.
Bridgeport Man Admits Role in Fraud SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERIC WATKINS, 26, of Bridgeport, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of mail fraud in connection with a stolen check scheme.
According to court documents and statements made in court, WATKINS was involved in a scheme with his cousin, Dayquan Jackson, also known as “Quan” and “DaeDae,” in which Jackson and others stole mail from residences in Fairfield County throughout 2013 and 2014 in order to obtain either blank checks or credit card “convenience checks.” Jackson and others then used some of the stolen checks to purchase cars, motorcycles, and all-terrain vehicles listed for sale on the Internet from unsuspecting victims in surrounding states. Some of the stolen checks also were provided to “runners” who deposited the checks into their bank accounts. Jackson and others then withdrew the funds from the accounts.
In December 2013, WATKINS sent via FedEx a fraudulent check stolen from the mail of a Connecticut victim to an unsuspecting individual in New Jersey who had posted an all-terrain vehicle for sale on Craigslist, for the purpose of obtaining the vehicle.
Judge Arterton scheduled sentencing for February 19, 2015, at which time WATKINS faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.
WATKINS was arrested on August 22, 2014. He currently is released on bond.
Jackson has pleaded guilty and awaits sentencing.
This matter is being investigated by the U.S. Postal Inspection Service, with substantial assistance from the Connecticut Financial Fraud Task Force and the Greenwich, Fairfield, Wilton and Bridgeport Police Departments, as well as law enforcement in New Hampshire. The case is being prosecuted by Assistant U.S. Attorney Marc Silverman and Special Assistant U.S. Attorney Charles L. Rombeau.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bradford County Man Charged with Possessing Child Pornography and Wire FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 68-year-old Sayre, Pennsylvania resident has been charged with possessing child pornography and wire fraud.
According to United States Attorney Peter Smith, a Superseding Information was filed today in U.S. District Court in Scranton alleging that Harold Schrader possessed child pornography on a computer in 2012, and allegedly participated through willful blindness in a fraud scheme involving soliciting overseas loans that were never repaid.
The charges against Schrader resulted from an investigation by the Department of Homeland Security (DHS), Homeland Security Investigations (HSI) and the Pennsylvania State Police.
If convicted of the charges, Schrader faces up to 30 years in prison and a $1 million fine for wire fraud, and up to 10 years in prison and a $250,000 fine for the child pornography charge.
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."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Anchorage Felon Charged with Federal Firearms CrimeRead the Press Release
Anchorage, Alaska – U.S. Karen L. Loeffler announced today that a local man was arraigned in federal court in Anchorage on one count of felon in possession of a firearm.
26 year-old Aaron Michael Sullivan was charged in a one-count indictment.
According to the information presented to the court, Sullivan possessed a Taurus .44 magnum revolver on October 6, 2014. Sullivan has two prior felony convictions from the State of Alaska for assault in the third degree and misconduct involving weapons in the third degree.
Special Assistant United States Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department conducted the investigation leading to the indictment in this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Amarillo Men Admit Aiming Laser Pointer at DPS HelicopterRead the Press Release
AMARILLO, Texas — Two residents of Amarillo, Texas, Matthew George Dodgen and Christopher Anthony Cantrell, appeared in federal court this afternoon and pleaded guilty before U.S. District Judge Mary Lou Robinson to an indictment charging each with one count of aiming a laser pointer at an aircraft and aiding and abetting, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for January 21, 2015, before Judge Robinson. Dodgen remains on bond and Cantrell is in custody.
According to documents filed in the cases, on June 1, 2014, at approximately 12:56 a.m., a Texas Department of Public Safety (DPS) helicopter was hit with a green, ground-based laser while flying over Amarillo. The DPS pilot and co-pilot traced the laser’s origin to two subjects, later identified as Dodgen, 35, and Cantrell, 34, standing near a van parked at a residence near SW 12th and Washington Street.
The helicopter’s camera recorded Dodgen and Cantrell as they ran to their van and drove away. Officers with the Amarillo Police Department, who had been called to assist, quickly located and stopped the vehicle. Dodgen was the driver and Cantrell was the passenger. A laser was located on the floorboard between Cantrell’s feet.
Both men admitted pointing the laser at the helicopter. The laser’s light hit the pilot’s eyes directly for a split second, and he had to divert his eyes to avoid another direct hit from the laser. It affected his vision for approximately 20 seconds.
The FBI led the investigation with assistance from the Texas DPS and the Amarillo Police Department. Assistant U.S. Attorney Joshua Frausto is prosecuting.
Tuesday 25 November 2014
Williamson County Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn November 24, 2014, John S. Andrews, 30, of Marion, was sentenced for his involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Andrews, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 120 months in prison, 5 years of supervised release, and fined $200. The district court granted Andrews 23 months credit for time served on a related state case. The offense occurred between August 2012 and December 2012, in Jackson County. Evidence at the plea and sentence hearings established that Andrews and others obtained pseudoephedrine for use in the manufacture of methamphetamine.
The investigation was conducted by the Jackson County Sheriff’s Office and the Murphysboro Police Department.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Western Pennsylvania U.S. Attorney’s Office Collects $52.9M in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
PITTSBURGH - U.S. Attorney David J. Hickton announced today that the Western District of Pennsylvania collected $52,907,460.41 in criminal and civil actions in Fiscal Year 2014. Of this amount, $48,907,638.51 was collected in criminal actions and $3,999,821.90 was collected in civil actions. Additionally, the Western District of Pennsylvania worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,552,124.98 in cases pursued jointly with these offices.
The U.S. Attorney’s office in Western Pennsylvania, working with partner agencies and divisions, also collected $18,795,930.00 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced last week that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“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.”
U.S. Attorney Hickton said, “The $52.9 million collected in FY 2014 is roughly five times the amount of money the federal government allocates us to operate our office, and represents a five-fold increase over the amount of money recovered in FY 2010 when we reorganized the office to improve our collections performance.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Wenatchee Man Sentenced to Five Years in Federal Prison for Distribution of Child Pornography ImagesRead the Press Release
SPOKANE – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jeremiah Dale Fuller, age 29, of Wenatchee, Washington, was sentenced after having previously pleaded guilty on August 13, 2014 to Distribution of Child Pornography. United States District Court Judge Stanley Allen Bastian sentenced Fuller to a five year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. In addition, Fuller is required to register as a sex offender.
According to court records, on March 1, 2014, Fuller distributed child pornography images using the Internet. The National Center for Missing and Exploited Children provided a cybertip to law enforcement regarding some of the images Fuller distributed. As a result of Fuller’s distribution of the child pornography images, an investigation was conducted by the East Wenatchee Police Department and the Department of Homeland Security. In April, 2014, a search warrant was executed at Fuller’s residence in Wenatchee, Washington and Fuller’s laptop computers and mobile phone were seized. A forensic examination of the laptops and mobile phone revealed that Fuller was in possession of over 2,000 child pornography images.
Michael C. Ormsby said, “The East Wenatchee Police Department and the Department of Homeland Security conducted an outstanding investigation in this case. This case is yet another example of the strong working partnership between state and federal law enforcement officers in the Eastern District of Washington. The public should be aware that the United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the East Wenatchee Police Department and the Department of Homeland Security. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-14-00090-SAB
United States Files False Claims Act Lawsuit Against Las Vegas Hospice and Related Entities for Billing Medicare and Medicaid for Ineligible PatientsRead the Press Release
The United States has filed suit against Creekside Hospice II LLC, Skilled Healthcare Group Inc. (SKG), its holding company, and Skilled Healthcare LLC (SKH), an administrative services subsidiary of SKG that operates Creekside (collectively the Creekside entities), alleging that these entities knowingly submitted ineligible claims for hospice services and inflated claims for patient visits to government health care programs, the Justice Department announced today.
“The Medicare hospice benefit is intended to provide pain management and other palliative care to patients nearing the end of life, to help make them as comfortable as possible,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “Too often, however, companies abuse this critical service by using aggressive marketing tactics to pressure patients who do not need, and may be ill-served, by these services in order to get higher reimbursements from the government. The department will take swift action to protect taxpayer dollars and make sure that Medicare benefits are available to those who truly need them.”
The Medicare and Medicaid hospice benefits are available for patients who elect palliative treatment (medical care focused on providing patients with relief from pain and stress) for a terminal illness and have a life expectancy of six months or less if their disease runs its normal course. When Medicare or Medicaid patients receive hospice services, they no longer receive services designed to cure their illnesses.
The government’s complaint alleges that the Creekside entities knowingly submitted or caused the submission of false claims for hospice care for patients who were not terminally ill. According to the complaint, the companies allegedly directed staff to enroll patients in the hospice program regardless of the patients’ eligibility for hospice benefits, sometimes by instructing staff to change records after the hospice submitted claims for payment to indicate that all requirements had been met. Management from Creekside, SKG and SKH also allegedly instructed employees to alter medical records to make it appear that doctors at the hospice had conducted personal visits with the patients, when in fact they had not occurred, in order to ensure reimbursement from Medicare and Medicaid. The complaint alleges that Creekside management aggressively discouraged staff from permitting patients or their families to revoke their elections to accept hospice benefits. The complaint also alleges that staff at Creekside were discouraged from documenting known improvements in a patient’s health in the medical record, called “Chart Killers” by the hospice, to ensure that Medicare or Medicaid would pay the hospice’s claim.
Further, the complaint alleges that the Creekside entities knowingly submitted or caused the submission of inflated claims to Medicare for services performed by the medical director. The government alleges that the companies repeatedly used billing codes that resulted in higher payment by Medicare than were justified by the services actually performed. As a result of the conduct alleged in the complaint, the government contends that the Creekside entities misspent tens of millions of taxpayer dollars from the Medicare and Medicaid programs.
“In order to protect the financial integrity of the Medicare and Medicaid programs, upon which so many of our senior American citizens rely, both the Department of Justice (DOJ) and the Department of Health and Human Services (HHS) have made combating healthcare fraud an enforcement priority,” said U.S. Attorney Daniel G. Bogden for the District of Nevada. “This type of fraud will not be tolerated and DOJ and HHS will act swiftly when it does occur to pursue False Claims Act suits against violators.”
The United States filed its complaint in two consolidated lawsuits brought under the whistleblower provisions of the False Claims Act and the Nevada False Claims Act by Joanne Cretney-Tsosie, a clinical manager for Creekside, and Veneta Lepera, a former clinical manager for Creekside. Under these statutes, a private citizen can sue for fraud on behalf of the United States and the state of Nevada, respectively, and share in any recovery. The federal and state governments are entitled to intervene in such a lawsuit, as they have done in this case.
The United States’ suit is part of the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.1 billion through False Claims Act cases, with more than $14.8 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Nevada, the Nevada Attorney General’s Office and the HHS Office of Inspector General. The claims asserted against Creekside Hospice, SKG and SKH are allegations only and there has been no determination of liability.
The lawsuit is captioned United States and State of Nevada v. Creekside Hospice II, LLC, Skilled HealthCare Group, Inc. and Skilled Healthcare, LLC. (D. Nev.)
United States Attorney Asks Court to Dismiss Remaining Counts of Indictment Against Former State Treasurer Martha ShoffnerRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, has filed a motion to dismiss the remaining counts of the Second Superseding Indictment against former Arkansas State Treasurer Martha Shoffner, age 70, of Newport, Arkansas.
Following a jury trial, on March 11, 2014, Shoffner was found guilty of six counts of extortion under color of official right, one count of attempted extortion under color of official right, and seven counts of receipt of a bribe by an agent of a state government receiving federal funds. A federal grand jury in the Eastern District of Arkansas had previously indicted Shoffner in a Second Superseding Indictment in February 2014, for ten counts of mail fraud. These additional charges were severed by the United States District Court and are set for trial on February 2, 2015.
The mail fraud charges in the Second Superseding Indictment which are the subject of the motion to dismiss alleged that Shoffner used $9,800.00 of campaign funds from her re-election campaign for Treasurer of the State of Arkansas for personal expenses, including clothing and cosmetics, on a Wells Fargo credit card from November 5, 2010, through October 9, 2011.
“As set forth in our motion, we have given this matter considerable and careful thought prior to announcing the decision today,” stated Thyer. “Based on our estimate of the anticipated sentencing guideline range that Ms. Shoffner faces as a result of the March 11th convictions and our expectation that if she was convicted on the mail fraud charges, there would be minimal, if any, impact on the sentencing guideline range, I have determined that the appropriate course for the United States is to dismiss these charges. My determination included careful consideration of the resources necessary to pursue a second trial,” Thyer went on to say. “What Ms. Shoffner did was wrong on many levels—not the least of which was the breach of the trust placed in her by the electorate. However, at this time, it is best to move forward with sentencing on the bribery and extortion convictions, and we anticipate presenting evidence related to the mail fraud at that time,” Thyer concluded.
U.S. Secret Service Makes Multiple Arrests in Scheme to Defraud the BP Oil Spill Compensation FundRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of indictments charging 27 individuals with participating in a scheme to defraud the compensation fund established as a result of the BP oil spill in 2010. Twenty-six indictments charge a single count of mail fraud, while one indictment charges Justin Kelly (33, Jacksonville) with five counts of mail fraud and one count of aggravated identity theft.
If convicted of mail fraud, each individual faces a maximum penalty of 20 years in federal prison. In the case of Justin Kelly, he faces an additional mandatory two-year term of imprisonment, which must be served consecutive to any sentence imposed for mail fraud. The indictments also notify the defendants that the United States will be seeking forfeiture money judgments for sums representing the amount of proceeds fraudulently received as a result of the charged criminal conduct.
According to the indictments, following the April 2010 explosion of the Deepwater Horizon oil rig (which was being leased by BP – formerly known as British Petroleum), the defendants misrepresented that they were employees of businesses that had been affected by the oil spill. They then filed lost income claims with the Gulf Coast Claims Facility, an independent facility established to review and pay qualified claimants, whom BP had agreed to compensate. The indictments allege that as part of the scheme to defraud, the defendants would mail documents in support of their fraudulent claims, resulting in funds being dispersed by the Gulf Coast Claims Facility. In the case of Justin Kelly, the indictment further alleges that he unlawfully used the identification of others to submit multiple claims.
The chart below reflects the individuals charged, along with the forfeiture money judgments being sought:
DEFENDANT
AGE
RESIDENCE
MONEY JUDGMENT SOUGHT
Justin Kelly
33
Jacksonville
$157,255.26
32
Jacksonville
$54,129.06
Lamar Anderson
35
Jacksonville
$26,319.92
Dwight Barber, Jr.
28
Lawtey
$44,694.08
Reggie Bates
46
Jacksonville
$38,765.58
Jameshia Bowes
44
Jacksonville
$44,206.48
Michael Bowes
27
Jacksonville
$26,830.76
Andrew Byers
35
Jacksonville
$20,851.18
Jacinto Dor
36
Jacksonville
$38,342.60
Tiffini Dor
33
Jacksonville
$44,680.40
Vincent Green
45
Jacksonville
$74,238.96
Angela Kelly
60
Jacksonville
$51,858.26
Bobby Kelly, Sr.
59
Jacksonville
$27,509.51
Anita McCorvey*
35
Pascagoula, Mississippi
$37,782.08
Arlesia McRae
43
Jacksonville
$36,886.58
Nigel Mills
32
Jacksonville
$16,117.98
Charlotte Montgomery*
58
Jacksonville
$18,578.59
Cory Morton*
27
Charlotte, North Carolina
$31,448.83
Robert Owens III
29
St. Johns
$40,062.47
Terrell Reynolds
35
Jacksonville
$11,925.94
Cheryl Richardson*
54
Jacksonville
$33,315.84
Ricky Riley, Jr.*
27
Jacksonville
$17,853.12
Veronica Robinson
32
Jacksonville
$19,722.74
Emmit Wade, Jr.
33
Jacksonville
$17,623.46
Matthew Walker
34
Jacksonville
$76,636.12
Jarrett Williams*
24
Jacksonville
$26,792.50
Louis Wordlaw
31
Atlantic Beach
$51,198.60
*individuals not in custody
$1,085,626.90
“The indictment of these 27 individuals is yet another example of how the Secret Service continues to successfully identify and combat fraudulent schemes,” said Lee Fields, Special Agent in Charge of the Secret Service Jacksonville Field Office. “The Secret Service utilized state-of-the-art investigative techniques to dismantle this criminal network which will result in significant positive impact to both the local and area wide communities. Our success in this case and other similar investigations is a result of extraordinary work of our investigators and our close work with our network of law enforcement partners.”
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the United States Secret Service. The following agencies provided significant assistance in executing the arrests of the above-named individuals: U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the United States Marshals Service, the United States Social Security Administration, the Internal Revenue Service - Criminal Investigations, the Florida Department of Law Enforcement, the Florida Highway Patrol, the Jacksonville Sheriff’s Office, and the St. Johns County Sheriff’s Office. The cases will be prosecuted by Assistant United States Attorney Diidri Robinson.
U.S. Attorney Ortiz Announces <i>Your Future, Your Decision</i> Essay WinnersRead the Press Release
On October 25, the Rebecca M. Johnson Middle School in Springfield hosted U.S. Attorney Carmen Ortiz for the Youth Future, Your Decision Program. About 100 students attended the event which focused on the importance of good decision making. A resource fair and student essay contest was held in concert with the event. The following are the winners of the essay contest.
Elaysha
Demetrius
Saranaya
Two Minnesotans Charged with Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
18-year-old Somali American Stopped at Minneapolis/Saint Paul Airport before Boarding Flight to Turkey
Assistant Attorney General for National Security John P. Carlin and United States Attorney for the District of Minnesota Andrew M. Luger today announced a criminal complaint charging Abdi Nur, 20, and Abdullahi Yusuf, 18, with conspiracy to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL). Nur is additionally charged with providing material support to a foreign terrorist organization. Yusuf is expected to make an initial appearance at 2:00 p.m. today before Magistrate Judge Janie S. Mayeron in United States District Court in Minneapolis, Minnesota.
“More than 16,000 recruits from over 90 countries traveled to Syria to become foreign terrorist fighters with alarming consequences,” said Assistant Attorney General Carlin. “This is a global crisis and we will continue our efforts to prevent Americans from joining the fight and to hold accountable those who provide material support to foreign terrorist organizations. With these two defendants, we have now charged more than 15 individuals with offenses related to the foreign fighter threat in Syria.”
“As charged, these two young men conspired to join ISIL and travel from Minnesota to the Middle East to engage in a campaign of terror in support of a violent ideology,” said U.S. Attorney Luger. “Since al-Shabaab began recruiting young adults from the Twin Cities in 2007, our region has lost dozens of disaffected young people to terrorist organizations that would sooner see Somali Minnesotans die on foreign battlefields than prosper in peace and security in the United States. The law-abiding members of Minnesota’s Somali community are great partners in our fight against terror, and I am proud to work closely with community and religious leaders to lift up those Somali youth who remain vulnerable to terrorist recruiters. Unfortunately, Yusuf and Nur were not the first – and may not be the last – to conspire in support of ISIS. As we work with our many partners to improve the lives of Somali Minnesotans, we will continue to investigate and prosecute aggressively criminals who provide support for terror.”
“The FBI remains committed to both its community partners and to its law enforcement mandate concerning the detection and disruption of terrorist activity,” said FBI Special Agent in Charge Richard T. Thornton for the Minneapolis Division. “This complaint epitomizes the FBI's commitment to upholding the laws of the United States as they apply to those who would support terrorism.”
According to the criminal complaint and documents filed in court, on April 28, 2014, Abdullahi Yusuf applied for an expedited passport at the Minneapolis Passport Office. He told the passport specialist that he intended to travel to Turkey, but when asked, Yusuf could not specify his travel itinerary, travel companions, hotel location or the name or address of a friend in Turkey who he claimed to have met recently via Facebook. The passport specialist also asked Yusuf about the cost of his trip, which Yusuf reported as, “about $1,500.” However, Yusuf had no known source of income. Yusuf obtained his passport on May 5, 2014, and used it to open a checking account on the same day.
According to the criminal complaint and documents filed in court, on May 23, 2014, Yusuf deposited $1,500 in cash into his Wells Fargo checking account in four separate ATM deposits spread throughout the day. On May 24, 2014, Yusuf used a debit card associated with the same account to purchase a $1,417.05 airline ticket from Minneapolis/Saint Paul to Istanbul, Turkey. The ticket was for a flight scheduled to depart Minneapolis/Saint Paul on May 28, 2014. His parents did not know that Yusuf had obtained a passport and planned to travel to Turkey, nor did they know that he had acquired $1,500 and purchased an airline ticket.
Yusuf is associated with H.M., a former Minnesota resident now believed to be fighting in Syria, and who traveled from Minnesota to Turkey on March 9, 2014. The same debit card was used to purchase H.M.’s airline ticket as was used to purchase an airline ticket for a third man from Minnesota who later traveled to Syria to fight with ISIL. Yusuf exchanged several telephone calls and text messages with H.M. in the days before YUSUF attempted to depart for Turkey.
On the morning of May 28, 2014, Yusuf’s father drove him to school. Approximately one hour after arriving at school, Yusuf walked to a mosque near his school. Yusuf left the mosque and was driven to a light rail station from which Yusuf departed for the airport. At the airport, Yusuf was advised by agents from the Federal Bureau of Investigation (FBI) that he would not be permitted to travel to Turkey as he had planned.
According to the criminal complaint and documents filed in court, Abdi Nur departed from the Minneapolis/Saint Paul airport for Istanbul, Turkey on May 29, 2014. Prior to his departure, on April 24, 2014, Nur obtained an expedited U.S. passport. On May 24, 2014, Nur made an ATM deposit of $1,540 in cash to his checking account. On May 27, 2014, Nur purchased an airline ticket for $1,619.30, using a debit card associated with the same checking account. Like Yusuf, Nur was unemployed when he purchased his airline ticket. Nur successfully boarded a flight for Turkey on May 29, 2014. He was scheduled to return to the United States on June 16, 2014, but did not.
According to the criminal complaint and documents filed in court, Nur had become “much more religious,” in the two months preceding his departure, including talking about how his family needed to pray more and wear more traditional clothing. Nur began to talk about jihad during this time period.
According to the criminal complaint and documents filed in court, Nur has communicated via Facebook with an individual in the United States after his departure for Turkey. During those communications, Nur stated that he has gone “to the brothers,” and that we “will see each other in the afterlife inshallah,” and “im not coming back” (sic). Nur has also communicated with a separately charged defendant, Mohamed Abdullahi Hassan, aka “Miski.”
According to the criminal complaint and documents filed in court, after asking Nur if he knew “Duale” (a U.S. citizen known to have traveled to Syria), Miski advised Nur “…Being connected in Jihad make you stronger and you can all help each other by fulfilling the duties that Allah swt (sic) put over you…Like us in Somalia the brothers from mpls are well connected so try to do the same….It is something we have learned after 6 years in Jihad.”
This case is the result of an investigation conducted by the FBI. The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Minnesotans Charged with Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger today announced a criminal complaint charging ABDI NUR, 20, and ABDULLAHI YUSUF, 18, with conspiracy to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL). NUR is additionally charged with providing material support to a foreign terrorist organization. YUSUF is expected to make an initial appearance at 2:00 p.m. today before Magistrate Judge Janie S. Mayeron in United States District Court in Minneapolis, Minn.
“As charged, these two young men conspired to join ISIL and travel from Minnesota to the Middle East to engage in a campaign of terror in support of a violent ideology,” said U.S. Attorney Luger. “Since al-Shabaab began recruiting young adults from the Twin Cities in 2007, our region has lost dozens of disaffected young people to terrorist organizations that would sooner see Somali Minnesotans die on foreign battlefields than prosper in peace and security in the United States. The law-abiding members of Minnesota’s Somali community are great partners in our fight against terror, and I am proud to work closely with community and religious leaders to lift up those Somali youth who remain vulnerable to terrorist recruiters. Unfortunately, Yusuf and Nur were not the first – and may not be the last – to conspire in support of ISIS. As we work with our many partners to improve the lives of Somali Minnesotans, we will continue to investigate and prosecute aggressively criminals who provide support for terror.”
“More than 16,000 recruits from over 90 countries traveled to Syria to become foreign terrorist fighters with alarming consequences,” said John Carlin, Assistant Attorney General for National Security. “This is a global crisis and we will continue our efforts to prevent Americans from joining the fight and to hold accountable those who provide material support to foreign terrorist organizations. With these two defendants, we have now charged more than 15 individuals with offenses related to the foreign fighter threat in Syria.”
FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton said, “The FBI remains committed to both its community partners and to its law enforcement mandate concerning the detection and disruption of terrorist activity. This Complaint epitomizes the FBI's commitment to upholding the laws of the United States as they apply to those who would support terrorism.”
ABDULLAHI YUSUF
According to the criminal complaint and documents filed in court, on April 28, 2014, YUSUF applied for an expedited passport at the Minneapolis Passport Office. He told the passport specialist that he intended to travel to Turkey, but when asked, YUSUF could not specify his travel itinerary, travel companions, hotel location, or the name or address of a friend in Turkey who he claimed to have met recently via Facebook. The passport specialist also asked YUSUF about the cost of his trip, which YUSUF reported as, “about $1,500,” however, YUSUF had no known source of income. YUSUF obtained his passport on May 5, 2014, and used it to open a checking account on the same day.
According to the criminal complaint and documents filed in court, on May 23, 2014, YUSUF deposited $1,500 in cash into his Wells Fargo checking account in four separate ATM deposits spread throughout the day. On May 24, 2014, YUSUF used a debit card associated with the same account to purchase a $1,417.05 airline ticket from Minneapolis/Saint Paul to Istanbul, Turkey. The ticket was for a flight scheduled to depart Minneapolis/Saint Paul on May 28, 2014. His parents did not know that YUSUF had obtained a passport and planned to travel to Turkey, nor did they know that he had acquired $1,500 and purchased an airline ticket.
YUSUF is associated with H.M., a former Minnesota resident now believed to be fighting in Syria, and who traveled from Minnesota to Turkey on March 9, 2014. The same debit card was used to purchase H.M.’s airline ticket as was used to purchase an airline ticket for a third man from Minnesota who later traveled to Syria to fight with ISIL. YUSUF exchanged several telephone calls and text messages with H.M. in the days before YUSUF attempted to depart for Turkey.
On the morning of May 28, 2014, YUSUF’S father drove him to school. Approximately one hour after arriving at school, YUSUF walked to a mosque near his school. YUSUF left the mosque and was driven to a light rail station from which YUSUF departed for the airport. At the airport, YUSUF was advised by agents from the Federal Bureau of Investigation (FBI) that he would not be permitted to travel to Turkey as he had planned.
ABDI NUR
According to the criminal complaint and documents filed in court, ABDI NUR departed from the Minneapolis/Saint Paul airport for Istanbul, Turkey on May 29, 2014. Prior to his departure, on 2 3 April 24, 2014, NUR obtained an expedited U.S. Passport. On May 24, 2014, NUR made an ATM deposit of $1,540 in cash to his checking account. On May 27, 2014, NUR purchased an airline ticket for $1,619.30, using a debit card associated with the same checking account. Like YUSUF, NUR was unemployed when he purchased his airline ticket. NUR successfully boarded a flight for Turkey on May 29, 2014. He was scheduled to return to the United States on June 16, 2014, but did not.
According to the criminal complaint and documents filed in court, NUR had become “much more religious,” in the two months preceding his departure, including talking about how his family needed to pray more and wear more traditional clothing. NUR began to talk about jihad during this time period.
According to the criminal complaint and documents filed in court, NUR has communicated via Facebook with an individual in the United States after his departure for Turkey. During those communications, NUR stated that he has gone “to the brothers,” and that we “will see each other in the afterlife inshallah,” and “im not coming back” (sic). NUR has also communicated with a separately charged defendant, Mohamed Abdullahi Hassan, a/k/a “Miski.”
According to the criminal complaint and documents filed in court, after asking NUR if he knew “Duale” (a U.S. citizen known to have traveled to Syria), MISKI advised NUR “…Being connected in Jihad make you stronger and you can all help each other by fulfilling the duties that Allah swt (sic) put over you…Like us in Somalia the brothers from mpls are well connected so try to do the same….It is something we have learned after 6 years in Jihad.”
This case is the result of an investigation conducted by the FBI.
Defendant Information:
ABDI NUR, 20
Minneapolis, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
• Providing Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
ABDULLAHI YUSUF, 18
Inver Grove Heights, Minn.
Charges:
• Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 countYusuf and Nur Complaint
The charges contained in the indictment are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
Two Leaders of A Drug Trafficking Organization Sentenced to 25 Years and 11 Years for Methamphetamine Conspiracy and Related ChargesRead the Press Release
TULSA, Okla. – Two leaders of a drug trafficking organization were sentenced in United States District Court for drug conspiracy and possession with the intent to distribute 15 kilograms or more of methamphetamine; maintaining drug-involved premises; and possession of firearms and ammunition, announced Danny C. Williams, Sr., U.S. Attorney for the Northern District of Oklahoma.
United States District Court Judge Claire V. Eagan sentenced Samuel Garcia-Escalera, 36, to 300 months, and Joel Deloera-Escalera, 34, to 135 months in prison after guilty convictions following a five day jury trial. The defendants were charged in a second Superseding Indictment on April 14, 2014. Garcia-Escalera was also sentenced for attempted witness tampering after pleading guilty to a separate criminal Information filed August 25, 2014, for his efforts to prevent witnesses from testifying at the trial.
“The defendants operated a drug trafficking network, supplying methamphetamine to other traffickers, who then supplied to mid-level distributors,” said U.S. Attorney Williams. “The defendants’ activity was disrupted and dismantled by local, state, and federal law enforcement in Oklahoma.”
From April 2012 to August 2013, Garcia-Escalera and Deloera-Escalera conspired to distribute and possess with intent to distribute 15 kilograms or more of methamphetamine; maintained houses for the purpose of storing and distributing methamphetamine; and, were aliens illegally and unlawfully in the United States. In addition, Garcia-Escalera possessed a .45 caliber pistol in furtherance of a drug trafficking crime and Deloera-Escalera possessed a .40 caliber pistol, 9mm caliber semi-automatic pistol, a .22 caliber revolver, and various ammunitions.
As a part of their sentence, Judge Eagan entered a forfeiture money judgment in the amount of $1,283,620 representing proceeds obtained as a result of the methamphetamine conspiracy and also entered a preliminary order of forfeiture of seized currency.
The case was investigated by the Tulsa Police Department, Oklahoma Bureau of Narcotics and Dangerous Drugs, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted on behalf of the United States by Assistant United States Attorneys Gary L. Davis, II, Jan Reincke, and Catherine Depew.
Troy Man Sentenced to Five Years for Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – DANIEL J. KEMPROWSKI, age 26, of Troy, New York, was sentenced today to five years in prison for one count of receiving child pornography and three counts of possessing child pornography by Chief United States District Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation. KEMPROWSKI must also serve a 20 year term of supervised release and register as a sex offender.
As part of his June 9, 2014 guilty plea, KEMPROWSKI admitted that from June 2010 through September 2012, he downloaded still images and videos of child pornography through a file sharing program. On September 6, 2012, an investigator accessed the file sharing network and downloaded four video files depicting child pornography from the defendant’s computer. On January 18, 2013, investigators searched KEMPROWSKI’s residence and recovered approximately 1,300 images and 185 videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Three Members of New York Cell of International Cybercrime Organization Sentenced for Roles in $45 Million CyberattackRead the Press Release
Earlier today in federal court in Brooklyn, New York, Elvis Rafael Rodriguez was sentenced to 34 months’ imprisonment for his participation in an international cybercrime organization responsible for two cyberattacks that inflicted $45 million in losses on the global financial system in a matter of hours. Two of Rodriguez’s co-defendants were previously sentenced for their roles in the conspiracy -- on October 27, 2014, Evan Peña was sentenced to 22 months’ incarceration, and on October 24, 2014, Saul Genao was sentenced to 15 months’ incarceration. Rodriguez, Peña and Genao were also ordered to pay $2,782,597 in restitution and $2,400,000 in forfeiture. Rodriguez, Peña, Genao and their 10 co-defendants pled guilty to charges stemming from their participation in the scheme.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Robert J. Sica, Special Agent in Charge, United States Secret Service, New York Field Office.
“The defendants and their co-conspirators participated in a massive 21st century bank heist of unprecedented scale and scope using debit cards and the Internet rather than guns and masks. While the technical intrusion was highly sophisticated and the teams of cashers highly organized, law enforcement moved with even greater expertise to solve the cybercrime and bring the perpetrators to justice,” stated United States Attorney Lynch.
Secret Service Special Agent in Charge Sica stated, “Secret Service agents utilize state-of-the-art investigative techniques to identify and pursue cyber criminals around the world. This scheme involved multiple network intrusions and data thefts for illicit financial gain. Our success in this case and other similar investigations is a result of the extraordinary work of our investigators and our close work with our network of law enforcement partners.”
Rodriguez and his co-defendants were members of the New York-based cell of an international cybercrime organization that used sophisticated intrusion techniques to hack into the systems of global financial institutions, steal prepaid debit card data and eliminate withdrawal limits. The stolen card data was then instantly disseminated worldwide and used to make fraudulent ATM withdrawals on a massive scale. The defendants acted as “cashers,” who together with co-conspirators, withdrew almost $2.8 million in cash from ATMs in New York City in a matter of hours. Rodriguez and various co-defendants also laundered the proceeds of the crime by, among other things, making large cash deposits and transporting suitcases containing hundreds of thousands of dollars in cash to co-conspirators in Florida and Romania.
The cyberattacks employed by the defendants and co-conspirators are known in the cyber underworld as “Unlimited Operations” and rely upon both highly sophisticated hackers as well as organized criminal cells whose role is to withdraw the cash as quickly as possible and then launder the proceeds and repay the organizers. The defendants and co-conspirators conducted two Unlimited Operations: the first occurred on December 22, 2012 and resulted in approximately $5 million in losses worldwide. In the New York City area, over the course of just two hours and 25 minutes, the defendants and co-conspirators withdrew approximately $400,000 in fraudulent ATM withdrawals. The second Unlimited Operation occurred on February 19-20, 2013 and resulted in nearly $40 million in losses worldwide; the defendants and their co-conspirators withdrew approximately $2.4 million in the New York City area.
Ms. Lynch thanked MasterCard, RAKBANK and the Bank of Muscat for their cooperation with this investigation and expressed her gratitude for the timely and extensive assistance of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; law enforcement authorities in Japan, Canada, Germany and Romania; and authorities in the United Arab Emirates, Dominican Republic, Mexico, Italy, Spain, Belgium, France, United Kingdom, Latvia, Estonia, Thailand and Malaysia.
The government’s case is being prosecuted by Assistant United States Attorneys Hilary Jager, Brian Morris, Doug Pravda and Richard Tucker.
The Defendants:
ELVIS RAFAEL RODRIGUEZ
Yonkers, New York
Age: 25
EVAN PEÑA
Yonkers, New York
Age: 37
SAUL GENAO
Yonkers, New York
Age: 25
Three Jefferson Davis County Men Sentenced to Life in Prison for Federal Drug and Gun ChargesRead the Press Release
Hattiesburg, Miss. – Allen Haralson, 61, of Hattiesburg, a former kitchen supervisor for the Forrest County Detention Center, pled guilty to conspiracy to steal food and food-related items from the Forrest County Detention Center and conspiracy to commit mail fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Don Alway.
A Criminal Information was filed against Haralson on November 18, 2014, charging him with conspiracy to steal over $5,000 worth of items from a local governmental agency and to commit mail fraud. The maximum penalty for conspiracy is five years in prison and a $250,000 fine. Haralson will be sentenced by U.S. District Judge Keith Starrett on February 5, 2015 in Hattiesburg.
Haralson was employed as the kitchen supervisor for the Forrest County Detention Center from at least 2002 through 2014. During that time, he conspired with others to embezzle food or food-related items from the jail by transporting or having such items transported to the homes or businesses of Haralson or his co-conspirators.
Haralson and others also conspired to commit mail fraud in order to carry out their scheme by drafting and submitting Forrest County purchase requisition forms that contained fraudulent entries hiding various stolen food items.
The case was investigated by the Federal Bureau of Investigation and the Mississippi State Auditor’s Office. Assistant U.S. Attorney Mike Hurst is prosecuting the case.Third Employee of Westward Seafoods Sentenced for Clean Air Act CrimeRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Bryan Beigh, 48, a former powerhouse operator for Westward Seafoods, Inc. (Westward) was sentenced in U.S. District Court, in Anchorage, by Chief U.S. District Court Judge Ralph R. Beistline, to serve three years of probation and pay a $750 fine for tampering with the pollution control monitoring equipment required under the Clean Air Act at the Westward seafood processing facility in Dutch Harbor.
Kevin Feldis, First Assistant United States Attorney, and Karla Perrin, EPA Regional Criminal Enforcement Counsel, who prosecuted the case, argued to the court that Beigh participated in this scheme to tamper with equipment and conceal the failure to operate pollution control equipment in order to make his job easier, without any thought of the potential consequences to others.
Westward has operated a sizeable seafood processing facility in Dutch Harbor since 1999, processing approximately 250 million pounds of seafood per year. Westward is a wholly owned subsidiary of Maruha-Nichiro Holdings, Inc., a Japanese-based company, and maintains its headquarters in Seattle, Washington. The Dutch Harbor facility generates its own electricity with three diesel-fueled generators contained in its powerhouse building. Air emissions from these generators are vented through a single combined smokestack, and these emissions are regulated by a Title V Permit under the Clean Air Act. The permit was issued by the Alaska Department of Environmental Conservation (ADEC), under delegated authority from the U.S. Environmental Protection Agency (EPA).
Under the terms of its permit, Westward was required to install and use pollution control equipment to decrease the amount of nitrogen dioxide (NOx) being emitted from the powerhouse smokestack. To meet this requirement, Westward installed a Combustion Air Saturation System (CASS) for each generator unit, which uses water to saturate the air and reduce emissions from each generator. The permit also required Westward to operate each generator with a “dedicated fuel and water flow meter” and to record the fuel and water consumption “at a consistent time once per day.”
Beginning in 2009, and continuing until August 2011, Westward failed to operate the CASS pollution control equipment. The powerhouse supervisor, Raul Morales, discussed with the assistant chief engineer, James Hampton, that he and the powerhouse staff had stopped operating the CASS. Bryan Beigh, a powerhouse operator, assisted in falsifying data collection forms called “Engine Round” forms on a daily basis when it came to recording information about the operation of the CASS. The false information not only included indicating that the CASS was operating “OK” when it was off, but also included generating false water meter flow readings. Because the CASS was not being operated, no water was flowing through the system and therefore the actual water flow meter readings would have revealed no water use. Morales maintained a running calculation of what the flow meters should have indicated if the CASS had been properly operated, and Beigh went so far as to develop a system of removing the water flow meters to manually spin them using a drill and a magnet to make it appear that water had been flowing through the system.
In 2010, Westward entered into a civil consent decree with the United States and agreed to pay a civil penalty following prior allegations that the company had, among other things, violated emissions limits under the Clean Air Act. The consent decree, filed in United States v. Westward, 3:10-cv-00073-JWS, required Westward to reduce its NOx emissions by properly operating pollution prevention equipment.
While the EPA did not receive any reports of harm to human beings as a result of the emissions at Westward during this period of time, NOx can cause airway inflammation in otherwise healthy people and can cause or worsen symptoms of asthma, bronchitis, and other respiratory diseases.
Earlier this month, James Hampton was sentenced to just over two months in prison (70 days), and Raul Morales was sentenced to one and one-half months in prison (45 days). Both defendants were ordered to pay a $1,000 fine and serve a one-year term of supervision upon release from prison. Judge Beistline noted that both defendants knew what they were doing was against the law, but they did it anyway, and that the sentences imposed should deter others from committing similar crimes. During today’s sentencing hearing, Judge Beistline emphasized the need for every individual to have respect for the rule of law, and he told Beigh that it was not up to him to decide whether or not to follow the law. In fashioning a probationary sentence, Judge Beistline noted that Beigh had no criminal history, was remorseful and honest about his crime, and had cooperated with the United States from the beginning of the investigation.
This case was investigated by the U.S. Environmental Protection Agency Criminal Investigation Division.Texas Woman Sentenced for Telemarketing FraudsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on November 24, 2014, Jacqueline Enid Acevedo, 30, of Cedar Hill, TX, was sentenced in the United States District Court in East St. Louis, Illinois on two counts of conspiracy to commit mail and wire fraud in connection with telemarketing. Acevedo was sentenced to 15 months in prison, to be followed by two years of supervised release. Acevedo was also ordered to pay a $600 fine and a $200 special assessment.
The investigation determined that Acevedo was a telemarketer at C&G Marketing Associates, LLC, d/b/a Premier Timeshare Solutions (PTS), Universal Marketing Solutions (UMS), and Creative Vacation Solution (CVS). Working out of office buildings in Florida, PTS, UMS, and CVS targeted owners of timeshares throughout the United States and Canada. In various court filings related to the PTS scam, the government has alleged that the overall scam bilked consumers of $14.5 million from over 7,000 people throughout the United States and Canada, and UMS/CVS bilked over 22,000 victims of $30 million dollars including dozens of victims within the Southern District of Illinois.
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney William Coonan.
Texarkana Federal Prison Employee Guilty of Having Sex with an InmateRead the Press Release
Department of Justice
Office of Public AffairsTEXARKANA, Texas – A 38-year-old Texarkana, Texas woman has pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shelonda Chares pleaded guilty to an Information charging her with sexual abuse of a ward today before U.S. Magistrate Judge Caroline Craven.According to information presented in court, on June 1, 2014, Chares, while employed as a Bureau of Prisons Case Manager at the Federal Correctional Institution in Texarkana, engaged in a sexual act with a federal inmate detained at the facility.
Chares faces up to 15 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the U.S. Department of Justice Office of Inspector General and the Bureau of Prisons and prosecuted by Assistant U.S. Attorney Ryan Locker.Ten Indicted in Drug Distribution ConspiracyRead the Press Release
Four-Year Investigation Nets Majority of Defendants from Robertson County
A federal grand jury in Nashville last week, returned indictments charging 10 people with conspiring to distribute more than 5 kilograms of cocaine, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Armed with arrest warrants and search warrants, local, state and federal law enforcement officers, on Friday, began arresting those charged in the indictment. As of today, six are in custody and four remain at large.
“This indictment should send a clear message to the people of Middle Tennessee, particularly those in the Robertson County area, that local, state and federal law enforcement agencies will come together to rid our communities of drug dealers and violent criminals who think they can operate under the radar in rural America,” said U.S. Attorney David Rivera. “Sheriff Holt has done an excellent job of coordinating resources from law enforcement agencies in Robertson County.”
“This investigation is another example of DEA and our state and local partners working cooperatively to target and dismantle major drug trafficking organizations, operating in both urban and rural areas of Middle Tennessee,” said Michael J. Stanfill, Assistant Special Agent in Charge of DEA in Tennessee. “While these rurally based organizations believe they can operate with impunity due to a smaller presence of law enforcement, DEA and our partners will investigate these organizations with the same type of resources and manpower as those operating in major metropolitan areas.”
In a joint statement, Robertson County Sheriff Bill Holt and Springfield Police Chief David Thompson stated, “The people of Robertson County can rest assured that our local law enforcement agencies will continue to work together with state and federal law enforcement agencies and the U.S. Attorney’s Office, to ensure the safety and quality of life for our citizens. Through or continued efforts, violent criminals and drug dealers will come to learn that Robertson County is not a safe haven for criminal activity.”
The charges and those indicted include:
Conspiracy to distribute 5 kilograms or more of cocaine:
Jose Arias Jurado, 55, of Springfield, Tenn;
Felipe Esquirel, age unknown, of Springfield, Tenn;
Abel Conejo, 29, of Springfield, Tenn;
Brian Reeves, 35, of Pleasant View, Tenn;
Phillip Goosetree, 43, of Cross Plains, Tenn;
Marcus Cantrell, 32, of Springfield, Tenn;
James Thomas Johnson, Jr., 34, of Springfield, Tenn;
Antonio Witherspoon, 41, of Nashville, Tenn;
Rene Orozco-Pineda, 44, of Greenbrier, Tenn; and
Salvador Maurico, aka Young Salvador, 23, of Springfield, Tenn.Possession with intent to distribute 500 grams or more of cocaine:
Felipe Esquirel;
Jose Arias Jurado.
Possession with intent to distribute cocaine:
Felipe Esquirel;
Salvador Maurico.Possession of a firearm in furtherance of a drug crime:
Felipe Esquirel
Salvador Maurico.Conspiracy to commit money laundering:
Jose Arias Jurado;
Felipe Esquirel;
Abel Conejo; and
Rene Orozco Pineda.Those currently not in custody and considered fugitives are Felipe Esquirel, James Thomas Johnson, Antonio Witherspoon and Rene Orozco-Pineda. These individuals are currently being sought by law enforcement.
If convicted, those charged with the conspiracy to distribute 5 kilograms or more of cocaine face a minimum of 10 years and up to life in prison. The firearm possession charges carry a mandatory minimum of five additional years in prison. Conspiracy to commit money laundering carries a penalty of up to 20 years in prison.
This investigation was conducted by the Drug Enforcement Administration, the 19th Judicial District Drug Task Force, the Robertson County, Tenn. Sheriff’s Office and the Springfield, Tenn. Police Department. Asst. U.S. Attorney Lynne T. Ingram is prosecuting the case.
An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty in a court of law.
Statement by Attorney General Holder on the Ongoing Situation in Ferguson, MissouriRead the Press Release
Attorney General Eric Holder made the following statement today on the ongoing situation in Ferguson, Missouri.
“Good afternoon. I have been briefed by members of the Justice Department and I wanted to provide a brief update of the Justice Department’s ongoing efforts arising from the events in Ferguson, Missouri. I’ve been briefed today by the COPS director, Ron Davis, Principal Deputy Associate Attorney General Molly Moran, Deputy Assistant Attorney General Mark Kappelhoff and members of my staff, all of whom are here with me now.
“They are overseeing the federal investigations into the shooting of Michael Brown as well as the investigation that we are doing of the Ferguson Police Department. I want to emphasize that we have two investigations that are ongoing. As I’ve said many times before and reiterated in my statement last night, the department's investigations will continue to be thorough, they will continue to be independent and they remain ongoing. They will be conducted rigorously and in a timely manner so we can move forward as expeditiously as we can to restore trust, to rebuild understanding and to foster cooperation between law enforcement and community members.
“Last night and throughout the day, I have been briefed on events in and around Ferguson. I was disappointed that some members of the community resorted to violence rather than respecting what I thought were the really heartfelt words of Michael Brown Sr. and the wishes he expressed about how he wanted his son's memory to be honored with nonviolence. It is clear that acts of violence threaten to drown out those that have legitimate voices, legitimate demonstrators and those acts of violence cannot and will not be condoned.
“By contrast, I’m very encouraged that some of the more peaceful demonstrations last night as well as today have occurred and have been in keeping with Mr. Brown's request. I would remind demonstrators of our history that those, the way in which we have made progress in this country is when we have seen peaceful, nonviolent demonstrations that has led to the change that has been the most long lasting and the most pervasive.
“I’ve asked the COPS director, Ron Davis, to continue to confer with local law enforcement and to conduct an after action review so we can develop strategies for identifying and isolating the criminal elements from peaceful protesters. Additionally, I have instructed department officials to continue to make contact with leaders of the peaceful protesters and to seek their assistance in isolating those individuals who are inclined towards violence. We’ve had a good ongoing dialogue with peaceful demonstrators in Ferguson. I’ve been very heartened to hear about the good work that our community relations service has done as well as people under Mark in particular. And I’ve instructed them to maintain those levels of communications and keep those avenues of communications open.
“I really embrace those who have been proactively intervening to stop acts of violence within their midst and I encourage them to continue to exercise this important leadership. I know that that is not an easy thing to do but it was very heartening to hear about people last night trying to stop those other people who were trying to loot and trying to destroy businesses and burn things. Those people who took it upon themselves to try to stop those kinds of things are in fact heroes in my mind.
“Michael Brown's tragic death has revealed a deep distrust between some in the Ferguson community and its police force. It also developed a need to develop and widely disseminate law enforcement best practices for responding to public demonstrations. The Department of Justice has begun this work and will continue to work with communities around the country in this regard. The reality is that what we see in Ferguson is not restricted to Ferguson. There are other communities around this country that have these same issues that have to be dealt with and we at the Justice Department are determined to do all that we can to bridge those divides. We launched in September our Building Communities of Trust initiative to provide training to law enforcement and communities on bias reduction and procedural fairness and we plan to apply evidence-based strategies in the five pilot sites around the country. This is all designed to bridge those divides, bridge those gaps between law enforcement and the communities that they serve. These gaps, these divides exist in other parts of the country beyond Ferguson and our focus will be nationally in its scope to try to deal ultimately with these issues. We will continue to advance this work, as I said, around the country in the coming weeks and months by bringing together elected officials, law enforcement officials and community leaders both to ensure dialogue but also action. This isn't just about talking. We want to ensure that concrete steps are taken to address these underlying barriers to trust.
“I briefed the president today in the Oval Office about the situation in Ferguson, shared with him the perspectives of people in law enforcement and Justice Department officials who are there on the ground. We talked about programmatic issues that we want to announce relatively soon and also about the need to bring our people together. This is a difficult time for people in Ferguson. It’s a difficult time for people in our country. It’s an opportunity for us to find those things that bind us as a nation, to be honest with one another about those things that continue to divide us and come up with ways in which we make this union even more perfect. So that’s what I talked about with the president. He is committed to this effort as are the men and women of the United States Department of Justice. Thanks very much.”
St. Michael, ND Man Sentenced for Felony Child Abuse and NeglectRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on November 24, 2014, Nathan Jones, Jr., 42, St. Michael, N.D., was sentenced by U.S. District Judge Ralph Erickson on a charge of felony child abuse and neglect. Jones pled guilty to the charge on August 27, 2014.
Judge Erickson sentenced Jones to serve one year in federal custody, to be followed by two years of supervised release. Jones was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
Between May 14, 2010 and continuing through April 4, 2013, on the Spirit Lake Indian reservation, Nathan Jones, Jr., who is the parent of six children aged 2, 3, 4, 6, 7, and 8 years, did willfully fail to provide proper parental care or control, subsistence, education as required by law, or other care or control necessary for the children’s physical, mental, or emotional health, or morals. Specifically, Jones was physically incapable of exercising proper parental care and control due to extreme intoxication which resulted in the children wandering unsupervised outdoors. Jones admitted to three specific incidents of leaving his children unsupervised due to his intoxication. Additionally, Jones admitted to neglecting the health care of three of his children by failing to bring a child to dental appointments resulting in the removal of his teeth, failing to bring a child to a follow-up appointment after a critical respiratory hospitalization, and failing to provide necessary medical attention a child’s severe skin condition resulting in bleeding wounds.
The case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigations.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Sallisaw Man Pleads Guilty to Wire Fraud, Identity Theft and CounterfeitingRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CHRISTOPHER JACOB FROEHLICH, age 28, of Sallisaw, Oklahoma, pled guilty to three counts of Wire Fraud, in violation of Title 18, United States Code, Sections 1343, two counts of AGGRAVATED IDENTITY THEFT, in violation of Title 18, United States Code, Section 1028A(a)(1) and one count of UTTERING A COUNTERFEIT SECURITY WITH INTENT TO DECEIVE, in violation of Title 18, United States Code, Section 513(a).
The charges arose from an investigation by the United States Postal Inspector and the United States Secret Service.
The Indictment, filed on September 10, 2014, alleged that from December 25, 2013 to March 24, 2014, within the Eastern District of Oklahoma and elsewhere, the defendant devised a scheme and artifice to defraud and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises. It was part of the scheme that the defendant used his computer to create fraudulent accounts at various financial institutions. The defendant created these fraudulent accounts using the identities of other persons without their permission. The defendant also created and uttered counterfeit checks.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty pleas, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion. The defendant remains in the custody of the United States Marshal pending sentencing.
Assistant United States Attorney Chris Wilson represented the United States.
Registered Sex Offender Pleads Guilty to New Sex CrimesRead the Press Release
BOISE - William Clarence Brower, 51, of Hazelton, Idaho, pleaded guilty today in United States District Court to two counts of transfer of obscene images to minors, and to possession of child pornography, U.S. Attorney Wendy J. Olson announced. United States Magistrate Judge Ronald E. Bush scheduled sentencing for February 18, 2015, at the United States Courthouse in Boise. Brower is detained pending sentencing.
According to the plea agreement, the investigation began in February 2014, when the Idaho Internet Crimes Against Children Task Force (ICAC) received a request for assistance from the Massachusetts State Police regarding an unknown adult male using the social media website “Kik” messenger to send sexually explicit photographs to a 10-year-old female in Massachusetts. An undercover detective took over the child’s online identity and made the suspect aware that “she” was 10 years old. The suspect replied, “C00000l. I don't mind that you are so young,” followed by sexually explicit comments. After having learned he was communicating with a ten-year-old, the suspect continued to send similar pictures and sexual comments directed at the child.
Meanwhile, in an unrelated investigation, sheriff’s deputies in Maricopa County, Arizona received a complaint from a family in Mesa, Arizona that their 13-year-old daughter had been receiving unsolicited sexually explicit text messages from an unknown individual using “Kik” messenger. The messages were accompanied by similar sexually explicit images. The investigators in Massachusetts and Arizona independently developed information suggesting that an individual with last name Brower in Hazelton, Idaho was responsible.
Idaho ICAC investigators learned that the suspect, William Clarence Brower, of Hazelton is a registered sex offender. He was convicted in 2008 of felony indecent exposure in Twin Falls County. They obtained a search warrant for Brower’s residence which was served on February 21, 2014. Brower was interviewed that day, and took responsibility for using his cell phone to send hundreds of sexually explicit photos of himself to random persons, most of whom he knew were under age 18, via “Kik” messenger. Brower also admitted that he possessed images and videos of child pornography.
According to the plea agreement, a forensic examination of a cell phone found at Brower’s home identified more than 24,000 digital images considered relevant to the investigation. These included pictures depicting child pornography, child erotica, images of a male subject wearing female undergarments, numerous images of a male exposing himself, and non-pornographic images of numerous young females that appear to have been obtained through a social media application or web site.
The charge of transfer of obscene images to a minor is punishable by up to ten years imprisonment, a fine of up to $250,000.00, and up to three years supervised release per count. The charge of possession of child pornography is punishable by up to ten years imprisonment, a fine of up to $250,000.00, and at least five years up to lifetime supervised release.
The case was investigated by the Idaho Attorney General’s Office, Internet Crimes Against Children Task Force, the Boise Police Department, the Maricopa County Sheriff’s Department, the Department of State Police of the Commonwealth of Massachusetts and the Jerome County Sheriff’s Department.
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.”
Pennsylvania Man who Robbed LaVale Bank Twice in Six Days Sentenced to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced William Carl Miller, Jr., age 53, of Shade Gap, Pennsylvania, today to 151 months in prison, followed by five years of supervised, release for bank robbery. Judge Bennett also ordered Miller to pay restitution of $1,710.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Cumberland Police Chief Charles H. Hinnant; Allegany County Sheriff Craig Robertson; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg.
According to Miller’s plea agreement, on August 28, 2013, Miller robbed the Susquehanna Bank in LaVale, Maryland. Miller entered the bank, pointed what looked like a black semi-automatic handgun at the teller and demanded money. The teller removed approximately $1,710 from the drawer and placed it on the counter. Miller put the money in his shoulder bag and fled through the bank’s rear door.On September 3, 2013, Miller again robbed the Susquehanna bank in LaVale, this time with co-defendant Chelsea May Morrison acting as a lookout. Prior to the robbery, Miller and Morrison applied “superglue” to their fingers to avoid leaving fingerprints at the bank. Miller and Morrison drove to the bank and parked in an adjacent parking lot. They entered the bank and as Morrison stood by and acted as a lookout, Miller approached three separate tellers demanding money. Miller threatened at least one teller, saying, “I want all your money. I have a gun in my duffle bag so don’t make me use it.” Miller took a total of $20,096 from the various teller drawers.
As Miller and Morrison ran from the bank, the dye packs in the money exploded. Miller and Morrison ran back to their vehicle, with Miller driving and Morrison in the front passenger seat, and fled the area. When officers responding to the bank robbery saw them, the officers attempt to conduct a traffic stop. Miller refused to pull over, accelerated the vehicle, and led officers on a high-speed pursuit. Officers were eventually able to get the vehicle to slow to a near stop, at which time Miller fled. Miller was chased by numerous officers and stopped only after being struck by a taser and tackled by officers.
Morrison was arrested in the passenger seat of the vehicle. Seized from the vehicle, among other items, was cash from the robbery and an air pistol, which was a realistic replica of a semi-automatic handgun.
Chelsea May Morrison, a/k/a Chelsea Maye Morrison-Mikolajczyk, age 27, of North East, Maryland, previously pleaded guilty and was sentenced to 51 months in prison for her role in the robbery.
United States Attorney Rod J. Rosenstein praised the FBI and the members of the Allegany County Combined Criminal Investigations Task Force (C3I), comprised of the Maryland State Police, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Frostburg University Police Department and Allegany County State’s Attorney’s Office for their work in the investigation and thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.Palmer Man Sentenced to 50 Years Imprisonment for Sexually Exploiting ChildrenRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Palmer, Alaska man was sentenced in Federal Court in Anchorage on six counts of child sexual exploitation crimes. Robert Cunningham, 49, was convicted of producing child pornography, using two children under his control. Cunningham’s victimization of the children occurred between September 5, 2002 and May 8, 2003, in Palmer.
Cunningham was sentenced today by U.S. District Court Judge Sharon L. Gleason, to the maximum sentences allowable on each of the charges: 600 months (50 years) in prison on two of the convictions, and 360 months (30 years) on four of the convictions. Those sentences were to run concurrently to each other, and to Cunningham’s 88 year sentence in Alaska State Court. If Cunningham is ever released from prison, Judge Gleason ordered that he be on supervised release for the rest of his life.
According to Assistant U.S. Attorney Audrey J. Renschen, the two children were approximately eight and 12 years old when the child pornography was produced. Cunningham coerced the children by his physical presence – 6’5” tall and over 300 pounds – when he pressed the children up against the ceiling and the wall to impress upon them that they were powerless against him. He also used nitrous oxide to make them compliant with his sexual abuse. A 56 gallon tank of nitrous oxide was found in Cunningham’s home, and exhibited in court during the sentencing, along with the mask that Cunningham placed over the children’s noses and mouths.
Cunningham, who was previously convicted in Federal Court of Possession of Child Pornography in 2001, was also recently convicted in State Court for sexually abusing the children. In imposing the 50 year sentence on Cunningham, Judge Gleason commented that the most important factor she considered in imposing the sentence was the need to protect the public: if Cunningham were ever to be released from prison, children would be at risk of sexual exploitation. Judge Gleason further noted that, “There is no feasible way to protect the public at whatever age [Cunningham] might be.” Judge Gleason noted that Cunningham’s use of nitrous oxide on the children bordered on torture, and required life-long incarceration.
U.S. Attorney Loeffler stated, “The lengthy sentence in this case reflects the horrendous victimization perpetrated on innocent victims by Cunningham. Working with our law enforcement partners to protect children is a top priority and a constant mission.”
Assistant U.S. Attorney Renschen was careful throughout the sentencing to avoid using the children’s names, initials, or their relationship to Cunningham, so that the public would not try to seek out their identities, or use their victimization to cause them further pain or embarrassment. The media is thus encouraged in this press release to continue to protect the identity of the child victims who are now adults, and trying to move forward with their lives.
Ms. Loeffler commends the FBI and Alaska State Troopers for the investigation of this case.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood (PSC) initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.Owner of Virginia-Based Company Pleads Guilty to Providing Gratuities to Federal Contracting OfficialCompany Agrees to Pay $300,000 Criminal Penalty for Its ConductRead the Press Release
WASHINGTON – Harry I. Martin, Jr., the owner, president, and chief executive officer of a Virginia-based information technology company, Intelligent Decisions, Inc., pled guilty this week to a federal charge stemming from gratuities that he and his company provided to a former contracting official with the U.S. Department of the Army in return for preferential treatment and government contracts.
In a related action, the company, Intelligent Decisions, Inc., has agreed to pay a $300,000 criminal penalty for its conduct. The company was charged in a criminal information with one count of paying a gratuity to a public official. Intelligent Decisions, Inc. agreed to the filing of the information, and is to make the payment and strengthen its internal controls as part of a deferred prosecution agreement with the government. In light of that payment, and the company’s willingness to acknowledge responsibility for its actions, the U.S. Attorney’s Office for the District of Columbia will recommend the dismissal of the information in 24 months, provided Intelligent Decisions, Inc. fully cooperates and abides by the agreement.
The developments were announced today by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General of the U.S. Small Business Administration (SBA-OIG); Robert E. Craig, Jr., Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS), and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
Martin, 56, of Great Falls, Virginia, and Intelligent Decisions, Inc., agreed to fully cooperate in an ongoing federal investigation. Martin entered the guilty plea on Nov. 24, 2014, before the Honorable Emmet G. Sullivan in the U.S. District Court for the District of Columbia. He is to be sentenced on March 6, 2015.
Martin is the 20th individual to plead guilty in an investigation into domestic bribery, bid-rigging, and federal contracting. His business colleague, Chae Shim, the Director of Acquisition Accounts, Asia/Pacific, for Intelligent Decisions, pled guilty on Nov. 6, 2014, to the same federal charge as Martin stemming from gratuities that Shim and others at Intelligent Decisions, including Martin, provided to the former Army contracting official in return for preferential treatment and government contracts. Shim, 47, of Reston, Va., is to be sentenced on March 20, 2015.
In addition to those individuals, one corporation, Nova Datacom, LLC, pled guilty to federal charges. Also, a South Korean-based corporation, Saena Tech Corporation, has entered into a deferred prosecution agreement and agreed to pay a $500,000 criminal penalty as part of the investigation.
In the overall investigation, to date, the United States has seized for forfeiture or recovered over $9 million in bank account funds, cash, and repayments, as well as 19 real properties, nine cars, and multiple pieces of fine jewelry.
The guilty plea and deferred prosecution agreement involve gratuities provided to In Seon Lim, a former contracting official for the U.S. Department of the Army. Lim pled guilty in July 2014, in the U.S. District Court for the Eastern District of Virginia, to federal charges stemming from a scheme in which he accepted over $490,000 worth of benefits, including cash payments and vacations, from favored contractors, including Intelligent Decisions, Inc. In return, he helped these businesses obtain millions of dollars in federal contracts and subcontracts. Lim, 48, who pled guilty to bribery and two other federal offenses, was sentenced on Oct. 24, 2014 to a four-year prison term.
“A corporate CEO has now become the 20th person to plead guilty in this bribery and bid-rigging investigation,” said U.S. Attorney Machen. “He joins a long list of public officials and government contractors held accountable for corrupting the integrity of the federal contracting system. This CEO and his company rigged the competition for military contracts by plying an Army official with meals, drinks, entertainment, and golf outings. The fate of this CEO and his company should encourage other contractors to steer clear of crooked dealings.”
“This plea demonstrates that those who engage in illegal gratuities will be held accountable for their actions,” said Assistant Director in Charge McCabe. “Both the company and the public official benefited when contracts were steered and increased almost $4 million. The FBI and our partner agencies will continue to investigate those who abuse the American taxpayer’s money and protect federal funds.”
“The defendant’s actions to pay and authorize the payment of illegal gratuities to a government official are an attack on the integrity of our system of government,” said Inspector General Gustafson of the U.S. Small Business Administration. “With our law enforcement partners, the SBA OIG will guard against such attacks and bring to justice those responsible for such despicable acts. I want to thank the U.S. Attorney's Office for its dedicated leadership and professionalism in bringing forth this guilty plea.”
“It is one of the highest priorities of the Defense Criminal Investigative Service (DCIS) to protect the integrity of the government procurement process so that taxpayer money is spent properly,” said Special Agent in Charge Craig. “As this case has again demonstrated, DCIS and our law enforcement partners will work together to uncover and fully prosecute any and all individuals and companies who are not willing to follow government contract and procurement laws.”
“This case should send a very loud and clear message to all who do business with the Department of the Army that if you intend on committing illegal acts for your own greed and personal gain, especially while our nation is at war, we will surely catch you and help bring you to justice,” said Director Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit “We have a very robust group of highly-trained special agents in our fraud unit who are masters at combating and uncovering fraud, deception, bribery and other criminal acts associated with government contracting and purchasing.”
According to the government’s evidence, Martin, Shim, and the company provided Lim with thousands of dollars in meals, drinks, entertainment, golf outings, and golf equipment, in return for preferential treatment and the direction of Army subcontracts to the firm.
All told, Intelligent Decisions spent over $10,000 on a variety of expenses, including dinners, golf outings, and other events attended by Lim, who was joined by company officials and others, while one of its employees agreed to pay for a Lexus ES350 automobile worth over $30,000 for Lim.
At the time of this conduct, Lim was an assistant project manager and product director with the Program Executive Office Enterprise Information Systems, a part of the Army that provides infrastructure and informational management systems. Working in South Korea, Lim’s primary duties were to oversee and implement communications systems upgrades for the U.S. forces there, which included approximately 10 communications centers and various other special projects at military sites throughout the country. Among other things, Lim coordinated work on a major contract, which, in turn, had numerous sub-contracts.
According to the government’s evidence, prior to the awarding of the sub-contracts, Martin and Shim traveled to South Korea in January 2009 to meet with Lim. They provided him with a dinner, drinks, and entertainment. They followed up on the meeting with e-mails expressing their desire for Intelligent Decisions, Inc., to work with him.
Later in January 2009, with Lim’s assistance, the company was awarded two subcontracts. One had an initial value of $525,000, and the other had a value of $67,294.
Over the ensuing months, Martin, Shim, and the company provided Lim with additional meals, entertainment, golf outings, and other benefits. Meanwhile, modifications were made to the sub-contracts increasing their value. The lengths of the two sub-contracts were expanded, along with their value. The $525,000 contract eventually climbed to a value of $3.2 million, and the $67,294 contract later became worth $1.3 million.
This investigation is being conducted by the FBI’s Washington Field Office; the Washington Field Office of the Internal Revenue Service-Criminal Investigation; the Inspector General’s Office of the U.S. Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency, and the Army Criminal Investigation Command. It is being prosecuted by Assistant U.S. Attorney Michael K. Atkinson of the Fraud and Public Corruption Section and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia.
14-264Office Manager Pleads Guilty to Embezzling from Employer’s Benefit PlanRead the Press Release
PITTSBURGH - A resident of Springdale, Pa., pleaded guilty in federal court to a charge of theft from an employee benefit plan, United States Attorney David J. Hickton announced today.
Jennifer Gent, 39, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that, during a two-year period while she was employed as the office manager for the Journeyman-Apprentice Training Fund (JATF) for the Sheet Metal Industry of Western Pennsylvania, Gent embezzled from her employer by writing and cashing approximately $30,297.70 in unauthorized JATF checks.
Judge Bissoon scheduled sentencing for March 5, 2015, at 10 a.m. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant’s bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Department of Labor, Office of Labor-Management Standards and the Employee Benefit Security Administration conducted the investigation that led to the prosecution of Gent.
North Charleston Automobile Dealer Charged with Money LaunderingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- Today United States Attorney Bill Nettles filed an Information charging Huger resident John Nick, age 59, with Money Laundering in violation of 18 U.S.C. §1956 . The Information alleges that in 2010, Nick took payment of $40,000 in cash from an individual, who claimed to be a drug dealer, to purchase a new car and then covered up the transaction by titling the car in the name of a nominee to make it appear as if the car was purchased with an $8,500 cash down payment and the balance financed.
The case was investigated by Special Agents with the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Eric Klumb is prosecuting the case.
The United States Attorney stated that the charges alleged in the Information are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Ninth Defendant in Massive International Credit Card Fraud Conspiracy Pleads Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Robert J. Sica, the Special Agent-in-Charge of the New York Office of the United States Secret Service, announced today that ALI REZA KANUGA pled guilty yesterday in Manhattan federal court to conspiracy to commit access device fraud and aggravated identity theft. KANUGA is the ninth defendant to plead guilty as part of an international investigation into a massive credit card fraud ring, which was responsible for stealing the personal financial information of hundreds of thousands of consumers, and using it to steal tens of millions of dollars worldwide. KANUGA, who was extradited from the United Kingdom in February 2012, pled guilty yesterday before U.S. Magistrate Judge Michael H. Dolinger.
Manhattan U.S. Attorney Preet Bharara said: “Ali Reza Kanuga and his co-conspirators stole sensitive bank account information around the globe, travelling from one country to the next to victimize consumers and financial institutions alike. Because of the wide-ranging investigation conducted by this Office and the U.S. Secret Service, together with our international partners, this global criminal organization has been dismantled, and its leaders are either behind bars or are fugitives from justice.”
Chart of Defendants
Secret Service Special Agent-in-Charge Robert J. Sica said: “The arrest of Ali Reza Kanuga is yet another example of how the Secret Service continues to successfully combat data theft and financial crimes. The Secret Service utilized state-of-the-art investigative techniques to dismantle this criminal network. Our success in this case and other similar investigations is a result of the extraordinary work of our cyber investigators and our close work with our extensive network of law enforcement partners.”
According to the allegations contained in the Indictment filed on November 15, 2012, and other court documents:
From at least 2007 until at least the summer of 2011, the Khan Family Organization was an international criminal organization principally in the business of stealing credit card, bank account, and related financial information from consumers at retail establishments; using the stolen account information to extract cash from automated teller machines (“ATMs”) using counterfeit ATM cards; and laundering the proceeds of the scheme back to its organizers. The Khan Family Organization (or the “Organization”) – which has at various times been based out of the United Kingdom, the United Arab Emirates, and the Netherlands – developed an especially sophisticated method of fraudulently obtaining customer account data from retail locations. At the time of the arrest of its leader, Irfan Khan, a/k/a “Superman,” in or about March 2010, the Organization was one of the largest, if not the single largest, credit card skimming syndicates throughout the world. As described below, members and associates of the Organization were dispatched throughout the United Kingdom, mainland Europe, and elsewhere to install credit card reader devices that had been customized to steal users’ account information, through the addition of particularly advanced “skimmers.”
The Organization’s leadership then dispatched members and associates throughout the world – including to New York City, the United Kingdom, mainland Europe, Southeast Asia, the Middle East, Africa, the Caribbean, South America, Australia, and elsewhere – to create counterfeit ATM cards using the stolen account information and fraudulently to withdraw cash from victims’ accounts. Members and associates of the Organization then laundered the proceeds of the fraud back to its leadership through various means, including by physically carrying cash internationally; through structured Western Union or similar transactions; and through the informal system of banking known as hawala or its functional equivalent.
Using extraordinarily sophisticated technology, the Organization began to mass produce its skimmers for installation into bank-card readers (also known as PIN Entry Devices, or “PEDs”) in retail locations throughout Europe. The Organization operated on a massive scale:
● In 2008, a member of the Organization’s leadership contacted various electronics and software purveyors in Britain to source component parts to manufacture the Organization’s skimmers, ordering, for example, 900 modems and 1,300 circuit boards.
● Between April 2008 and March 2009, a secure FTP site used by the Organization to receive text messages containing stolen accounts and PINs received approximately 350,000 transfers of data, representing approximately the number of accounts compromised by the Organization over that period.
● In early 2009, a pair of police seizures from the Organization’s premises in London resulted in the seizure of almost a thousand PEDs in various stages of alteration.
● In early 2010, two co-conspirators were arrested in the Netherlands carrying a memory device that contained, among other things, approximately 186,000 unique stolen bank account numbers and their associated PINS.
● In April 2011, three co-conspirators were arrested in the Netherlands carrying a laptop computer that contained, among other things, approximately 15,000 unique stolen bank account numbers and their associated PINS.
KANUGA was responsible for leading a group of conspirators – including co-defendants Ujval Jethwa and Michaela Jo Berney – in installing the Organization’s custom-made PEDs in at least 15 retail locations in the Netherlands. In March 2010, data stolen from the Dutch skimmers was disseminated to members and associates of the Organization throughout the world, who used it to create counterfeit ATM cards, which they then used at local banks and other ATM locations. For instance, Jethwa, co-defendant Asif Khan, and another co-conspirator travelled from the United Kingdom to New York City. On just two days, March 6-7, 2010, Jethwa and other co-conspirators, including Timothy Guvercin, engaged in at least 1,110 transactions at approximately 95 locations in Manhattan, resulting in the theft of approximately $260,000 in cash. During the same two days, different co-conspirators were using the same stolen data in at least 18 other countries. Asif Khan then assisted with laundering those fraud proceeds back to the Organization’s leadership in Europe and the Middle East through the use of hawala bankers.
At around the same time, Irfan Khan and another co-conspirator, Zeshan Mian, were arrested in Amsterdam, the Netherlands, and were charged with possession of stolen bank data. They had, among other things, a memory card containing approximately 186,000 unique stolen bank card numbers and their associated PINS, along with an illustrated, step-by-step manual to creating the Organization’s skimming device, which Irfan Khan and Mian had created.
While in prison, Irfan Khan continued to run the Organization. For example, in April 2011, co-defendants Mohammed Shabaz Khawar, Abdul Qayam Durrani, Fassel Azim, and David Ashley Smith travelled to the Netherlands from the United Kingdom to install additional PEDs at retail outlets in and around Rotterdam. Khawar, Durrani, and Smith were arrested by Dutch authorities, in possession of a laptop computer that contained financial information about more than 15,000 back accounts, as well as skimmers built to the Organization’s specifications. The group also possessed a “top up” card to add credit to an illicit pre-paid cellphone that Irfan Khan was using in his Dutch prison to direct the Organization.
KANUGA, 32, of London, England, pled guilty to one count of conspiracy to commit access device fraud and one count of aggravated identity theft. The conspiracy count carries a maximum sentence of seven and a half years in prison, a maximum fine of $250,000, or twice the gross gain or loss from the offense, and forfeiture of the proceeds of the offense. The aggravated identity theft count carries a mandatory two-year sentence, which must run consecutively to any other sentence imposed. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. A chart reflecting the status of the other charged defendants is attached. KANUGA is scheduled to be sentenced in February 2015.
Mr. Bharara praised the investigative work of the United States Secret Service. He also thanked the Politie Amsterdam Amstelland, the Arrondissementsparket Amsterdam, the Metropolitan Police Service, the City of London Police, and the Dedicated Cheque and Plastic Crime Unit for their help in the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Matthew L. Schwartz and Negar Tekeei are in charge of the prosecution.
New York Women Sentenced for Trafficking HeroinRead the Press Release
The United States Attorney=s Office for the Middle District of Pennsylvania announced today that Merisol Merry, age 40, Brooklyn, New York was sentenced in federal court in Scranton on a charge of trafficking in excess of 100 grams of heroin.
United States District Court Judge Robert D. Mariani sentenced Merry to 18 months imprisonment followed by two years of supervised release. Merry originally waived indictment and was charged by way of Information on April 18, 2013. The Information filed in the Middle District of Pennsylvania charged that between September 2011 through May 2012 in the Southern District of New York, Merry distributed and possessed with intent to distribute at least 100 but less than 400 grams of heroin, a Schedule I controlled substance.
This case involved the prosecution of seven other defendants involved in a conspiracy to possess and distribute heroin from New York to Scranton and Wilkes-Barre, Pennsylvania. The prosecution arose from the efforts of a joint investigation conducted by the Drug Enforcement Agency in Scranton, the Lackawanna County District Attorney’s Office – Detective Division, the Pennsylvania State Police, as well as both the Scranton and Wilkes-Barre Police Departments. Assistant United States Attorney Michelle Olshefski prosecuted the case.
****Mateo B. Sardoma, Jr. and Rudy P.H. Sablan Sentenced to 11 Years Imprisonment on Federal Firearms & Narcotic ChargesRead the Press Release
(Hagatna, Guam), ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Mateo B. Sardoma, Jr. and Rudy P.H. Sablan, defendants in the Organized Crime Drug Enforcement Task Force (OCDETF) case United States v. Sardoma, et al., Criminal Case No. 12-000010 (D. Guam), were sentenced today by the Honorable Frances
Tydingco-Gatewood, Chief Judge, District Court of Guam. The Defendants were sentenced to serve eleven years of incarceration followed by three years of supervised release.In considering the evidence presented at trial, both Sablan and Sardoma were sentenced to ten years of prison for being felons in possession of a firearm, in violation of Title 18, United States Code, Section
Both defendants were jointly and severally ordered to pay $18,000 to the victim of an assault in the case.
922(g)(1) and to an additional year to run consecutively for possession of methamphetamine in violation of Title 21, United States Code, Section 844(a).Sardoma was also ordered to forfeit $51,136, which will be applied toward a $200,000 money judgment issued against him. He was also ordered to forfeit a 2008 Toyota Pick Up and a 2003 Toyota Highlander.
U.S. Attorney Limtiaco stated, “Our community is not immune from the poison of methamphetamine. These cases illustrate the hard work our partners in law enforcement do every day to stop the distribution of methamphetamine into Guam.” This conviction resulted from the concerted efforts of law enforcement partners in the OCDETF investigation, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
The investigating agencies include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Department of Homeland Security/U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI), U.S. Coast Guard Investigative Service (USCGIS), U.S. Postal Inspection Service (USPIS), Guam Police Department (GPD) and Guam Customs & Quarantine Agency (GC&QA). The case was prosecuted by Assistant United States Attorneys Frederick Black and Stephen Leon Guerrero.
Man Sentenced to 64 Months in Prison for Tax Fraud ConspiracyRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Tendayi Mandere, a 36 year old citizen of Zimbabwe, was sentenced today by the Honorable Richard G. Andrews, United States District Judge for the District of Delaware, to 64 months imprisonment and full restitution. The defendant pleaded guilty to violations of 18 USC § 286 (False Claims Conspiracy) and 18 USC § 1028A(a)(1) (Aggravated Identity Theft), in April 2014.
The defendant participated in a tax fraud conspiracy involving the filing of more than 130 false individual federal income tax returns with the Internal Revenue Service. The defendant obtained the names and social security numbers of real individuals from his co-conspirators, and he used them to electronically file false tax returns via the Internet. The defendant fabricated the wage and withholding information on the returns, which sought refunds of more than $600,000. Most of these fraudulent returns were rejected by the Internal Revenue Service. The defendant was ordered to pay restitution to the Internal Revenue Service in the amount of $114,000, the amount obtained by the defendant and his co-conspirators during the course of the scheme.
U.S. Attorney Oberly gave the following comments: “This case should send a clear signal that individuals who conspire with others to file false claims against the United States Treasury will face significant penalties. My office is committed to working with the Internal Revenue Service to prosecute these cases, and I will seek incarceration wherever possible and appropriate.”
This sentence exemplifies IRS Special Agents' intense focus on the rigorous pursuit of identity theft and refund fraud," said Richard Goss, Acting Special Agent in Charge, IRS Criminal Investigation. "Mr. Mandere perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. Be assured that IRS Criminal Investigation, together with our law enforcement partners and the U.S. Attorney's Office, will hold those who engage in similar behavior fully accountable."
This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Social Security Administration, Office of the Inspector General. The case is being prosecuted by Assistant United States Attorneys Lauren Paxton.
Man Pleads Guilty for Selling "StealthGenie" Spyware App and Ordered to Pay $500,000 FineRead the Press Release
A Danish citizen today pleaded guilty in the Eastern District of Virginia and was ordered to pay a fine of $500,000 for advertising and selling StealthGenie, a spyware application (app) that could remotely monitor calls, texts, videos and other communications on mobile phones without detection. This marks the first-ever criminal conviction concerning the advertisement and sale of a mobile device spyware app.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement after a hearing before U.S. District Judge Leonie M. Brinkema in the Eastern District of Virginia.
“Spyware is an electronic eavesdropping tool that secretly and illegally invades individual privacy,” said Assistant Attorney General Caldwell. “Make no mistake: selling spyware is a federal crime, and the Criminal Division will make a federal case out if it. Today’s guilty plea by a creator of the StealthGenie spyware is another demonstration of our commitment to prosecuting those who would invade personal privacy.”
“The defendant advertised and sold a spyware app that could be secretly installed on smart phones without the knowledge of the phones owner,” said U.S. Attorney Boente. “This spyware app allowed individuals to intercept phone calls, electronic mail, text messages, voicemails and photographs of others. The product allowed for the wholesale invasion of privacy by other individuals, and this office in coordination with our law enforcement partners will prosecute not just users of apps like this, but the makers and marketers of such tools as well.”
“Mr. Akbar is the first-ever person to admit criminal activity in advertising and selling spyware that invades an unwitting victim’s confidential communications,” said FBI Assistant Director in Charge McCabe. “This illegal spyware provides individuals with an option to track a person’s every move without their knowledge. As technology evolves, the FBI will continue to evolve to protect consumers from those who sell illegal spyware.”
According to the statement of facts accompanying the plea agreement in the case, Hammad Akbar, 31, is the chief executive officer of InvoCode Pvt. Limited and Cubitium Limited, the companies that advertised and sold StealthGenie online. StealthGenie could be installed on a variety of different brands of mobile phones, including Apple’s iPhone, Google’s Android, and Blackberry Limited’s Blackberry. Once installed, it could intercept all conversations and text messages sent using the phone. The app was undetectable by most users and was advertised as being untraceable.
Akbar was arrested on Sept. 27, 2014, in Los Angeles and pleaded guilty today to sale of an interception device and advertisement of a known interception device. After accepting the guilty plea, the court immediately sentenced Akbar to time served and ordered him to pay a $500,000 fine. He was also ordered to forfeit the source code for StealthGenie to the government.
On Sept. 26, 2014, the court issued a temporary restraining order authorizing the FBI to temporarily disable the website hosting StealthGenie, which was hosted from a data center in Ashburn, Virginia. The court later converted the order into a temporary injunction, and the website remains offline.
According to Akbar’s admissions, StealthGenie had numerous functions that permitted it to intercept both outgoing and incoming telephone calls, electronic mail, text messages, voicemail, and photographs from the smartphone on which it was installed. The app could also turn on the phone’s microphone when it was not in use and record sounds and conversations that occurred near the phone. All of these functions could be enabled without the knowledge of the user of the phone.
In order to install the app, the purchaser needed at least temporary possession of the target phone. During the installation process on an Android smartphone, for example, the person installing the app was required to grant a series of permissions that allowed the app to access privileged information on the device. Once the app was activated, it was started as a “background” (i.e., hidden) service and set up to launch automatically when the phone was powered on. The only time that the app interacted with the screen was during activation, and the icon for the app was removed from the phone’s menu. Akbar admitted that because of these characteristics, a typical smartphone user would not know that StealthGenie had been installed on his or her smartphone.
Akbar also admitted to distributing an advertisement for StealthGenie through his website on Nov. 5, 2011, and to selling the app to an undercover agent of the FBI on Dec. 14, 2012.
This case was investigated by the FBI’s Washington Field Office, and was prosecuted by Senior Trial Attorney William A. Hall Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Jay V. Prabhu and Alexander Nguyen of the Eastern District of Virginia.
The FBI’s Internet Crime Complaint Center (IC3) has published an advisory for consumers related to the app located at: http://www.ic3.gov/media/2014/140930.aspx.
Louisville Residents Charged in Conspiracy to Distribute More Than One Kilogram of Heroin in A Drug Trafficking OperationRead the Press Release
LOUISVILLE, Ky. – Louisville residents charged in a conspiracy to distribute more than one kilogram of heroin were arraigned in U.S. District Court today, before Magistrate James D. Moyer, announced United States Attorney for the Western District of Kentucky, David J. Hale.
According to the single count indictment and a criminal complaint, beginning in December of 2012 and continuing to October 21, 2014 the defendants conspired to traffic heroin from multiple residential homes located in Pleasure Ridge Park, Okolona, Parkland and Chickasaw neighborhoods, with a stash house located in Smoketown, where the heroin was packaged for sale as part of this drug trafficking operation.
The criminal complaint further alleges that at least one of the defendants utilized a rental car company in Clarksville, Indiana, to travel to destinations outside the Louisville area including Chicago, Illinois, to procure multiple ounce quantities of heroin for distribution in the Louisville area. On August 2, 2014, video surveillance recorded one defendant place a large black bag in the trunk of a rental vehicle. Later that day, the vehicle was stopped, by Indiana State Police, due to an alleged traffic violation on I-65 in Columbus, Indiana between Louisville and Chicago. Due to the presence and odor of marijuana, police searched the vehicle and located $40,000 in U.S. currency in a black bag located in the vehicle’s trunk. It’s alleged in the criminal complaint that the money was intended for a purchase of heroin from a source located in Chicago.
The eight defendants charged in the single count indictment are Charles Marlo Coleman, Ronald Coleman, Joseph Clinton Coleman, Latonya Gentry, Benjamin Montez Brame, Donnell Parker, Joshua P. Hill, Reginald Grider. All defendants are Louisville residents and all are currently in the custody of the U.S. Marshals Service.
If convicted at trial, the defendants face no less than 10 years in prison a 1,000,000 fine and a 5 year period of supervised release. The sentence includes up to life in prison with notice of prior felony drug convictions and could include a fine of up to $20,000,000.
This case is being prosecuted by Assistant United States Attorney J. Scott Davis and is being investigated by the U.S. Drug Enforcement Administration (DEA) and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Leader of Interstate Cocaine Smuggling Organization Sentenced to More Than Ten Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Jose Perez-Osorio (46, Michoacàn, Mexico) to 10 years and 1 month in federal prison for conspiring with others to distribute five kilograms or more of cocaine. He pleaded guilty on July 29, 2014.
According to court documents, Perez-Osorio worked through others to recruit and manage drug and money couriers. In 2010, he attempted to recruit an undercover Pasco County Sheriff’s Office detective (UC) to work for him as a drug courier. Perez-Osorio’s plan was for the UC to first register a vehicle in Alabama, and then drive to Houston and pick up multiple kilograms of cocaine. The operation never took place.
On June 29, 2011, deputies from the Jefferson County (Texas) Sheriff’s Office conducted a traffic stop on a vehicle bearing an Alabama license plate. The car was occupied by two women. During the traffic stop, deputies received consent to search and located and seized 7.5 kilograms of cocaine, which was hidden in an after-market compartment. The two women had been recruited in Hillsborough County by a co-conspirator to work as drug and money couriers for Perez-Osorio. When stopped, the women were attempting to transport the cocaine from Texas to the Middle District of Florida.
On October 28, 2013, deputies from the Orange County (Florida) Sheriff’s Office conducted a traffic stop on a vehicle Perez-Osorio was driving. Perez-Osorio did not have a valid driver’s license and was arrested. A subsequent search of the vehicle revealed a hidden compartment behind the passenger side airbag containing one kilogram of cocaine and approximately $221,250. Perez-Osorio admitted to owning the car.
This case was investigated by the DEA and the Pasco County Sheriff’s Office as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation. 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. This case was prosecuted by Assistant United States Attorney Christopher F. Murray.
Largo Woman Sentenced to 10 Years in Prison for Stealing $470,000 from her EmployerRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Mercy Coffie-Joseph, age 41, of Largo, Maryland, today to 10 years in prison followed by three years of supervised release for wire fraud, money laundering, passport fraud and aggravated identity theft. Judge Titus also entered an order that Coffie-Joseph pay restitution of $472,148.52.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service.
According to evidence presented at her four day trial, from 2010 to February 2013, Coffie-Joseph used her position as an accounting manager at a Maryland company to fraudulently access the company’s bank accounts and transfer approximately $470,000 to bank accounts she controlled. She then used about $120,000 of those funds to buy a home in Ghana.
Coffie-Joseph also stole an individual’s identity and obtained a passport in the victim’s name, using her own picture, and then traveled to Ghana on the fraudulent passport, during which trip she visited the home she had purchased there with the fraudulently obtained money.
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.
United States Attorney Rod J. Rosenstein praised the FBI and State Department’s Diplomatic Security Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P. Windom, and Special Assistant United States Attorney Margaret Moeser, of the U.S. Justice Department’s Asset Forfeiture & Money Laundering Section, who prosecuted the case.- Laredoan Faces Federal Child Pornography Charges
Justice Department Settles Lawsuit Against California Bakery over Discrimination Against Foreign-Born WorkerRead the Press Release
The Justice Department announced today that it reached a settlement with La Farine Bakery, a bakery with two stores in the San Francisco Bay Area. The settlement resolves allegations that the bakery violated the Immigration and Nationality Act (INA) by engaging in discriminatory documentary practices. Specifically, the Justice Department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) found that La Farine improperly rejected a worker’s valid work authorization documents because of the worker’s citizenship status.
Under the settlement agreement, La Farine Bakery will pay $26,000 in back pay and other compensation to an individual who was allegedly harmed by the discriminatory. The bakery also agreed to change its hiring policies and be subject to monitoring of its hiring practices for two years.
“Employers should not make assumptions about the validity of their workers’ employment documents based on sterotypes or unfounded assumptions,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The department encourages employers to use the Civil Rights Division’s resources, including OSC’s hotline, if they have questions about accepting Form I-9 documentation in a non-discriminatory manner.”
OSC is responsible for enforcing the anti-discrimination provision of the Immigration and Nationality Act. The statute prohibits employers from placing additional documentary burdens on work-authorized applicants or employees during the employment eligibility verification process because of their citizenship status or national origin. The statute also prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee, as well as retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Information Charges Florida Woman with Stealing Dead Mother's BenefitsRead the Press Release
Elena DiMaggio, 71, of Key Largo, Florida, and formerly of Drexel Hill, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant received retirement benefits intended for her mother, after her mother’s death in January 1998 until the defendant’s fraud was discovered in the summer of 2012. The defendant’s alleged actions resulted in a loss to the government of approximately $174,366.
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, a three year period of supervised release, restitution to the government of $174,366, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the information.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Hernando County Woman Indicted for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Bertha Hart with four counts of theft of government property. If convicted, she faces a maximum penalty of 10 years in federal prison for each count. The indictment also notifies Hart that the United States is seeking a money judgment in the amount of $34,859.00, the proceeds of the charged criminal conduct.
According to the indictment, from at least February 2012 through May 2012, Hart participated with others in a scheme to steal money from the U.S. government using stolen identities.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Hernando County Sheriff’s Office, the Internal Revenue Service – Criminal Investigation, and the United States Secret Service. It will be prosecuted by Assistant United States Attorney Sara C. Sweeney.
Fort Yates Man Convicted of Aggravated Sexual Abuse by Use of ForceRead the Press Release
BISMARCK – First Assistant U.S. Attorney Christopher C. Myers, announced that on November 21, 2014, Donald Clark Luger, Age 63, of Fort Yates ND, was convicted for Aggravated Sexual Abuse by Use of Force.
Luger was convicted of using force to sexually assault a 12 year old minor female on Fort Yates in 1997. A jury of twelve convicted Luger after a 4 day trial, which included testimony from individuals that had been previously sexually assaulted by Luger. Sentencing for luger has not yet been set.
The case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigations.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Former Suburban Chicago Home Builder Sentenced to 30 Months in Prison for Failing to Pay $1.27 Million in Federal Income TaxesRead the Press Release
CHICAGO — A former west suburban home builder was sentenced to 2½ years in federal prison for failing to pay more than $1.27 million in federal income taxes and concealing certain business interests in his personal bankruptcy case. The defendant, DENNIS WEISS, was sentenced after pleading guilty last year to one count each of filing a false federal income tax return and making false statements in a bankruptcy petition.
Weiss, 64, of South Elgin and formerly of St. Charles, owned Custom Homes by D. R. Weiss, Inc., and Reliable Home Solutions, Inc., both formerly located in St. Charles. He was sentenced to 30 months in prison and was ordered to begin serving his sentence in January. He was also ordered to pay $296,643 in restitution to the Internal Revenue Service by U.S. District Judge John Z. Lee, who imposed the sentence yesterday in Federal Court.
According to court documents, Weiss filed false individual federal income tax returns for 2005 through 2009, and he failed to file corporate tax returns for both of his companies. Although he filed corporate tax returns on behalf of Custom for 1999 through 2004, he filed none starting in 2005. Reliable was formed in 2006 and dissolved in 2008, and Weiss never filed a corporate return on its behalf and concealed the company’s existence from his tax preparer.
Between 2005 and 2009, Weiss paid personal expenses from Custom’s business bank account, accepted cash payments from Custom and Reliable customers, and failed to record the receipt of these funds on the books and records of the corporations, resulting in a total federal tax loss of $1,271,280.
On March 10, 2009, Weiss filed a personal bankruptcy petition and intentionally concealed the existence of Melrose Currency Exchange, Inc., which he had owned for several years. In fact, Weiss had reported income from the currency exchange on his individual tax returns for 2005-2009. Court documents also state that Weiss also falsely declared that he had no interest in any partnerships or joint ventures when, in fact, he held interests in three family held entities: Royal Fox Country Club LP, Royal Fox Country Club LP II, and Weiss Private Equity LP. His false bankruptcy petition resulted in the discharge of his debts to approximately 43 trade creditors. (In re Dennis R. Weiss, 09 B 08028.)
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government was represented by Assistant U.S. Attorney Patrick King.
In addition to criminal penalties, defendants convicted of tax offenses remain responsible for any taxes and interest due, as well as civil penalties of up to 75 percent of the tax owed.
Former Parkland Hospital Employee Admits Stealing Patient Information to Market His Home Health Agency in Garland, TexasRead the Press Release
DALLAS — A former employee at Parkland Hospital in Dallas appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Renée Harris Toliver, to a federal felony offense stemming from his theft of patient information from the hospital, announced U.S. Attorney Sarah R. Saldaña.
Viju Mathew, 49, of Garland, Texas, pleaded guilty to one count of fraud and related activity in connection with identification documents, authentication features and information (identity theft). He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. He will remain on bond pending sentencing before U.S. District Judge Jane J. Boyle.
According to plea documents filed in the case, as a registration specialist at Parkland Hospital, Mathew entered patient information into Parkland’s computer system. Mathew used his position to obtain confidential patient information, including patients’ names, telephone numbers, dates of birth, participation in the Medicare program, and government-issued health insurance claim numbers.
Mathew admitted that he knowingly removed the confidential information intending to use it to gain an economic benefit by contacting prospective patients for his home health care business.
The FBI, Department of Health and Human Services Office of Inspector General, and the Texas Attorney General’s Medicaid Fraud Control Unit investigated. Special Assistant U.S. Attorney Brian Portugal is in charge of the prosecution.
Former Manager Ordered to Pay $173,000+ for Embezzling from A Lawrence Credit UnionRead the Press Release
TOPEKA, KAN. – A former manager of a credit union in Lawrence was sentenced Tuesday to three years on supervised release for embezzling from the company, U.S. Attorney Barry Grissom said. She was ordered to pay more than $173,600 in restitution.
Karolyn J. Stattelman, 43, Topeka, pleaded guilty to one count of theft from a credit union. In her plea, she admitted the crime took place while she was manager of the Jayhawk Federal Credit Union at 2901 Lakeview Road in Lawrence, Kan. She manipulated credit union accounts for money orders, share drafts, ATM and returned checks in order to conceal the thefts.
She also allowed co-defendant Christi Marie Hout, who was a teller, to write checks on Hout’s personal and business accounts when Hout did not have sufficient funds to cover them. Hout pleaded guilty to one count of theft of credit union funds. She is set for sentencing Jan. 7.
Grissom commended the Lawrence Police Department, the U.S. Secret Service and Assistant U.S. Attorney Christine Kenney for their work on the case.