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20 January 2015
Fort Worth Chiropractor Sentenced in Heath Care Fraud CaseRead the Press Release
FORT WORTH, Texas — The owner/operator of a chiropractic clinic in Fort Worth, Texas, was sentenced this morning on a federal felony conviction stemming from her submission of false reimbursement claims to Medicare and Medicaid, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Melva Mitchell, 35, of Fort Worth, a licensed chiropractor, was sentenced by U.S. District Judge Reed C. O’Connor to 12 months and one day in federal prison and ordered to pay $126,048 in restitution to Medicare and Medicaid for making false statements relating to health care matters. Mitchell operated Best Choice Chiropractic and Wellness Center on Oakland Boulevard in Fort Worth. She must surrender to the Bureau of Prisons on February 24, 2015.
According to documents filed in the case, Mitchell submitted claims for reimbursement to Medicare and Medicaid for chiropractic services that were not performed. She obtained the Medicare and Medicaid provider information for other individuals who were licensed Occupational Therapists, and used those persons’ provider information to obtain payments from Medicare and Medicaid for occupational therapy services that were not provided or were not provided by requisitely licensed individuals. Mitchell paid one of the individuals whose provider information she used a portion of the Medicare and Medicaid reimbursements she received.
As one example of her false statements, Mitchell submitted claims to Medicare and Medicaid indicating that she performed 25 separate chiropractic manipulations in her office from March 8, 2011 to March 10, 2011. These claims were false and fraudulent because she was on vacation in Puerto Rico at the time.
The U.S. Department of Health and Human Services – Office of Inspector General, FBI, and Texas Attorney General’s Medicaid Fraud Control Unit investigated. Special Assistant U.S. Attorney Douglas Brasher prosecuted.
Fort Thompson Man Indicted on Drug ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance, and Possession with Intent to Distribute a Controlled Substance.
Christopher Spider, age 35, was indicted on January 13, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 16, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, at least 3 years of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that commencing on or about September 1, 2014, and continuing through December 29, 2014, Spider knowingly and intentionally combined, conspired, confederated and agreed with others to distribute and possess with intent to distribute a controlled substance. The Indictment also alleges that on or about December 29, 2014, Spider knowingly and intentionally possessed with intent to distribute a detectable amount of methamphetamine.
The charges are merely accusations and Spider is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Spider was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former Vice President at Harrisburg Area Community College Sentenced to Fifteen Months for Wire FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today in Harrisburg that Nancy Rockey, age 55, of Harrisburg was sentenced by Chief U.S. District Court Judge Christopher C. Conner to 15 months in prison for wire fraud.
According to United States Attorney Peter Smith, Rockey was employed by Harrisburg Area Community College (HACC) from 1980 until her resignation in February 2012. At the time of her resignation, Rockey was Vice-President of the Harrisburg campus and Vice-President of College and Community Development.
In October 2013, Rockey was charged with using a credit card issued by HACC, to make online purchases of Target gift cards which she then used to purchase non-work-related items for herself, her family, and her friends. Rockey then created bogus invoices, later submitted to the HACC Finance Office, to conceal the unauthorized purchases.
Rockey is charged with purchasing approximately $228,000 worth of gift cards with her HACC credit card.
The investigation was conducted by the FBI and the Dauphin County Criminal Investigations Division. The case was prosecuted by Assistant U.S. Attorney Joseph J. Terz.
Former Technology Director for City of LenexaRead the Press Release
KANSAS CITY, KAN. - The former technology director for the City of Lenexa was sentenced to a year and a day in federal prison for wire fraud, U.S. Attorney Barry Grissom said. The defendant also was ordered to pay more than $103,000 in restitution.
Andrew L. Davey, 44, Overland Park, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted the crime occurred from 2010 to 2012 while he was the director of technology for the City of Lenexa. After he left the city to take another job, city officials discovered he had purchased numerous electronic devices, such as iPads, computers, digital cameras and televisions which he gave to friends, traded for other merchandise or services, or sold on eBay and kept the proceeds.
For instance, he gave iPads to members of his church, and traded an iPad to another city employee for wheels and tires. The other employee was not aware the iPad belonged to the city. He gave his mother a 50-inch television and iPad that were purchased with city funds. He told her the equipment was obsolete and the city no longer needed it.
Grissom commended the Lenexa Police Department, the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former Store Owner Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Charles Fitzgerald, 39, of Rochester, NY, pleaded guilty before U.S. District Court Judge Frank P. Geraci, Jr. to possession of a controlled substance with intent to distribute. The charge carries a maximum penalty of 30 years in prison, a fine of $2,000,000 or both.Assistant U.S. Attorney Jennifer Noto, who is handling the case, stated that the defendant admitted that on July 25, 2012, he possessed with intent to distribute various synthetic controlled substances and synthetic controlled substance analogues at both his residence in Rochester and at one of the stores that he owned, the 420 Emporium located in Batavia, NY. As part of the plea agreement, Fitzgerald will forfeit $771,109 in United States currency that was seized during the execution of a search warrant at his residence at 221 West Hills Estates on July 25, 2012.
Three employees of Fitzgerald’s, who worked at the 420 Emporium stores located in Batavia and Henrietta, NY, have also been convicted in this case and are awaiting sentencing.
“This case demonstrates how by working together, the community and law enforcement can improve the quality of life for all,” said U.S. Attorney Hochul. “In this case, a rash of emergency room visits due to overdoses of synthetic drugs was brought to our attention by concerned members of the community, including the media. Law enforcement immediately engaged, and within several months, was able to execute search warrants throughout Western New York and make arrests of those selling such illegal and highly dangerous substances. With this conviction, we are able to report that the entire investigation was a success.”
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Agency, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson
Sentencing is scheduled for April 15, 2015, at 3:00 p.m. before Judge Geraci.
Former Plymouth Finance Director Arrested; Charged with Embezzling More Than $800kRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID J. BERTNAGEL, 41, of Thomaston, was arrested today on a federal criminal complaint charging him with embezzling more than $800,000 from the Town of Plymouth.
BERTNAGEL was arrested this morning at his residence. He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and was released on a $250,000 bond.
According to the criminal complaint, from July 2014 to October 2014, BERTNAGEL was employed as the Finance Director for the Town of Plymouth. For approximately six years prior to that time he was a part-time employee in the Town’s Finance Department. From approximately October 2011 through October 2014, it is alleged that BERTNAGEL issued 207 checks totaling approximately $808,030 from the Town’s payroll account to himself. BERTNAGEL used the embezzled funds to make mortgage payments, pay credit card bills, fund home improvement projects and purchase more than $100,000 in coins, stamps and other collectibles. He also converted more than $182,000 of the stolen funds by way of cashed checks, ATM withdrawals and money orders.
The complaint also alleges that BERTNAGEL did not file a tax return with the Internal Revenue Service for the 2011 tax year and, although he did file tax returns for the 2012 and 2013 tax years, he failed to report any of his embezzled income.
Since 2011, Plymouth has received approximately $450,000 in grant awards from the U.S. Department of Health and Human Services.
The criminal complaint charges BERTNAGEL with theft from a local government receiving federal funds, which carries a maximum term of imprisonment of 10 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General and U.S. Department of Health and Human Services – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
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(203) 821-3722 [email protected]Former Mayor Charged with Wire Fraud for Using Campaign Contributions for His Own Personal BenefitRead the Press Release
A former mayor of Dunkirk, New York, was indicted today for engaging in a scheme to defraud his mayoral campaign and supporters by stealing campaign contributions for his personal benefit, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney William J. Hochul Jr. of the Western District of New York.
Richard L. Frey, 83, of Dunkirk, New York, was charged today in a 13-count indictment with 12 counts of wire fraud and one count of making a false statement to the FBI.
According to the indictment, from January 2003 through June 2012, Frey allegedly solicited and received several campaign contributions from area businesses and businesspeople and then, instead of depositing the donations into his campaign accounts, either cashed the checks for his personal use or deposited the checks into his personal bank accounts. The indictment further alleges that Frey concealed the existence of these campaign contributions by not reporting or disclosing them on his campaign disclosure reports, as was required of local candidates for public office. When asked about the scheme, Frey allegedly provided false information to the FBI.
The charges and allegations contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Buffalo Field Office and the U.S. Housing and Urban Development Office of Inspector General. The case is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John E. Rogowski of the Western District of New York.
Former Houston Banker Heads to Prison for Bank FraudRead the Press Release
HOUSTON – Carlos Lavin Ibarra, 34, of Houston, has been sentenced to federal prison following his conviction on one count of bank fraud, announced United States Attorney Kenneth Magidson. Ibarra pleaded guilty July 9, 2014.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, stated that the idea that a banker takes money out of someone else's account without authority must be sanctioned and handed Ibarra a sentence of 33 months in federal prison to be immediately followed by five years of supervised release. Defendant was not ordered to pay a fine. He was further ordered to pay $779,000 in restitution.
Ibarra worked at JP Morgan Chase Bank in Houston. He admitted that while employed there, he purchased or caused to be purchased $779,000 in cashier’s checks on accounts owned by a person from Nigeria. This person was deceased at the time of the defendant’s actions and Chase was not advised of his death. The defendant admitted he acted fraudulently and without authority.
The cashier’s checks were all made payable to “Ben Leasing.” Ibarra admitted he caused another individual to obtain a certificate of operation under the assumed name of Ben Leasing from the County Clerk of Harris County and open a bank account in that name. However, that person refused to accept the cashier’s checks and Ibarra then re-deposited the checks at Chase. He further caused eight more cashier’s checks to be purchased in various amounts, payable to different individuals with whom Ibarra had a relationship. Three of these checks were subsequently exchanged for identical Chase cashier’s checks. All of the Chase cashier’s checks were deposited into different bank accounts in Houston.Ibarra was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Secret Service and is being prosecuted by Assistant U.S. AttorneyFormer Dunkirk Mayor Charged with Wire Fraud for Using Campaign Contributions for His Own Personal BenefitRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a 13-count indictment charging former City of Dunkirk Mayor Richard L. Frey, 83, of Dunkirk, NY, with engaging in a scheme to defraud his mayoral campaign and his supporters by stealing campaign contributions for his personal benefit. Frey is charged with 12 counts of wire fraud and one count of making a false statement to the FBI. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John E. Rogowski and Department of Justice Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section, who are handling the case, state that according to the indictment, from at least January 2003 through June 2012, Frey solicited and received several large campaign contributions from a number of area businesses and businesspeople. Instead of depositing the donations into his campaign accounts, the defendant either cashed the checks for his personal use or deposited the checks into his personal bank accounts. The indictment further alleges that the defendant concealed the existence of these larger campaign contributions by not reporting or disclosing them on his campaign disclosure reports, as was required of local candidates for public office. It is further alleged that Frey provided false information to the FBI when asked about the scheme.
The indictment is the culmination of an investigation by Federal Bureau of Investigation and the U.S. Housing and Urban Development Office of Inspector General.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Former 32 Year FBI Employee and His Wife Sentenced to Prison for Bank FraudRead the Press Release
SAN FRANCISCO – A former 32 year FBI employee and his wife were sentenced on January 14, 2015, to 90 days in prison plus six months location monitoring and 200 hours of community service for bank fraud, announced United States Attorney Melinda Haag.
Charles Espinel, 61, and Jeannette Espinel, 59, of both Daly City, (the Espinels) were both originally charged in a Criminal Information on June 3, 2014, with one count of Bank Fraud, in violation of 18 United States Code Section 1344. The Espinels both pleaded guilty to the information on July 24, 2014.
The Espinels both admitted in their separate plea agreements that, beginning in 2006 and continuing through 2010, the two of them defrauded First California Bank and Wells Fargo Bank in connection with mortgage loans they obtained to purchase a $750,000 rental property in Daly City, and a $600,000 rental property in San Bruno. The Espinels admitted that they purchased these rental properties by jointly submitting to banks in June 2006 and April 2007 fraudulent mortgage loan applications in which they knowingly overstated their incomes and falsely claimed that it was their intention to occupy the rental properties as their primary residence. The Espinels also admitted that they subsequently obtained favorable modifications to these loans through fraud, including submitting false Individual Income Tax Returns which they had altered. The Espinels both admitted in their plea agreements that the total loss from their bank fraud was over $83,000.
Charles Espinel in his plea agreement further admitted that from May 1979 until February 2012, he worked as a Support Services Technician in the San Francisco Division of the FBI. Espinel’s professional responsibilities as a FBI Support Services Technician included records and file management technical support, telecommunications and investigative automation support, office management support, and operations security support. As an FBI employee with Top Secret clearance as well as access to sensitive information, Espinel was required annually to file a security financial disclosure form (SFDF) disclosing certain financial information (including listing all assets and liabilities). Espinel knew that his FBI supervisors and the FBI Security Division/Internal Security Section would review the financial information on his SFDFs to assess whether he had personal financial problems that might threaten his continued suitability for a Top Secret security clearance. Espinel admitted that he knew that lying on his SFDFs about his bank accounts and owned real estate would be significant issues of concern for FBI management. Espinel admitted in his plea agreement that in 2007, 2008, 2009, and 2010, he knowingly submitted SFDFs in which he made several false statements and material omissions. Espinel admitted that he knowingly failed to disclose on those SFDFs his wife’s income, and failed to disclose the real estate properties he owned or the rental income he was receiving from those properties.
The sentence was handed down by the Honorable Charles R. Breyer, United States District Court Judge. In addition to 90 days in prison, Judge Breyer also ordered both of the Espinels to serve a three year term of supervised release which will include six months location monitoring and 200 hours of community service, and also to pay $83,326.50 in restitution. Jeannette Espinel will begin serving her sentence on March 2, 2015. Charles Espinel will begin serving his sentence on September 8, 2015.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the United States Department of Justice Office of the Inspector General.
Florida Man Pleads Guilty to Role in Telemarketing ScamRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on January 20, 2015, Lev M. Derbaremdiker, 30, of Delray Beach, FL, pled guilty to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. The investigation determined that Derbaremdiker was a telemarketer at C&G Marketing Associates, LLC, a Florida corporation which, in 2009, defrauded consumers across the continent using the fictitious name, Premier Timeshare Solutions (“PTS”). Working out of an office building in West Palm Beach, Florida, PTS targeted owners of timeshares throughout the United States. In various court filings related to the PTS scam, the overall scam bilked some $14.5 million from over 7,000 consumers throughout the United States and Canada, including dozens of victims within the Southern District of Illinois. Sentencing is set for May 11, 2015, at 1:30 p.m. Derbaremdiker will face up to 25 years in prison, a fine of up to $250,000, and up to 5 years of supervised release.
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.
Ex-CEO of McAllen-Based Trucking Company Convicted in $26 Million Fraud SchemeRead the Press Release
HOUSTON – Sergio Lagos, 45, has been convicted of conspiracy to commit wire fraud and six counts of wire fraud, announced U.S. Attorney Kenneth Magidson. Lagos was the former CEO of USA Dry Van Logistics (USADV), a cross-border trucking company that services the maquiladora industry. Aurelio “Jim” Aleman and Oscar Barbosa, former chief operations officer and former controller for the company, respectively, previously pleaded guilty to conspiracy to commit wire fraud on Sept. 16, 2013.
According to records, Aleman and Lagos entered into a financing agreement with GE Capital Corporation (GECC) under which GECC would issue a revolving line of credit which was secured by USADV’s accounts receivables. By January 2010, the maximum borrowing limit under the agreement was increased to $38 million. Pursuant to the agreement, USADV justified advances on the line of credit by submitting “borrowing base certificates” to GECC.
Lagos admitted that from March 2008 through the end of January 2010, he joined in a scheme to defraud and swindle GECC, a lending company that provided capital to USADV, fraudulently obtaining funds through a revolving line of credit. At the plea hearing, Lagos admitted he schemed to conceal from GECC the truth about USADV’s declining operating performance and financial results. Rather than reveal USADV’s true condition, Lagos and his co-defendants misrepresented USADV’s true operating performance and financial results to include the nature of the USADV’s accounts receivable, against which GECC was permitting USADV to borrow hundreds of thousands of dollars on a weekly basis. This caused USADV to appear to be operating more profitably that it actually was.
Lagos signed, prepared and/or directed others to prepare certificates that falsely inflated the amount of the company’s accounts receivables and caused them to be submitted to GECC to enable USADV to obtain more funds than would otherwise have been permitted. Lagos perpetuated and concealed the scheme to defraud GECC by directing other employees to manually invoice millions of dollars of fraudulent receivables to inflate the borrowing base and to create false and forged invoices and support documentation for accounts receivables that did not exist. Lagos also admitted to submitting false financial statements to auditors and GECC.
When the truth about USADV’s operations and finances were revealed, USADV went into bankruptcy. USADV successfully re-organized under Chapter 11 bankruptcy proceedings and is currently operating with new owners. Lagos, Aleman and Barbosa are no longer affiliated with or employed by the company.
The government alleges the estimated loss to GECC is more than $26 million. U.S. District Judge Kenneth M. Hoyt, who accepted the guilty plea today, will make a final determination of that loss at the time Lagos is sentenced. At that time, he also faces up 20 years in federal prison and a possible $250,000 fine. The hearing has been scheduled for April 13, 2015.
The investigation was conducted by Homeland Security Investigations and the FBI. Assistant U.S. Attorneys Casey N. MacDonald and Grady J. Leupold are prosecuting the case.
Estill Man Sentenced to Prison for Identity Theft Tax FraudRead the Press Release
Contact Person: Rhett DeHart (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Angel Masdeu, age 52, of Estill, SC was sentenced in federal court in Charleston, South Carolina, for aggravated identify theft, a violation of Title 18, United States Code, Section 1028A. United States District Judge Richard M. Gergel of Charleston sentenced Masdeu to 24 months imprisonment and one year of supervised release.
Evidence presented in this case established that Masdeu stole the identifying information of individuals, and using this stolen identifying information, he filed fraudulent tax returns that claimed false tax refunds. After a thorough investigation, the IRS determined that Masdeu’s identify theft caused more than $260,000 in loss to the United States Treasury due to fraudulent tax refunds.
“Investigating refund fraud and identity theft is a top priority of IRS Criminal Investigation,” said IRS-CI Special Agent in Charge Thomas J. Holloman III. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s sentencing should serve as a strong warning to those considering similar conduct. Law enforcement and the US Attorney’s Office will vigorously pursue these crimes and will hold those accountable who would defraud the government.”
The case was investigated by agents of the IRS-Criminal Investigative Division. Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case.El Departameno de Justicia y la Ciudad de Albuquerque Conjutamente Selecionan a un Monitor Independiente Para Supervisar las Reformas PolicialesRead the Press Release
ALBUQUERQUE – El Departamento de Justicia anunció hoy que conjuntamente con la Ciudad de Albuquerque, ha presentado ante el Tribunal de Distrito de los Estados Unidos, el nombramiento del Dr. James R. Ginger, experto reconocido a nivel nacional en reforma policial y cambio administrativo, como monitor independiente del acuerdo de resolución logrado entre el Departamento y la Ciudad para reformar al Departamento de Policía de Albuquerque (APD, sus siglas en inglés). El Dr. Ginger y su equipo tendràn la responsabilidad de evaluar, de manera independiente, la implementación completa del acuerdo de resolución, así como de reportar sobre el estatus de su cumplimiento al tribunal, a las partes y a la comunidad; ayudar a las partes a resolver retos que se presenten en su cumplimiento y a dar orientación técnica a APD, según sea necesaria.
El Dr. Ginger ha supervisado exitosamente acuerdos similares, ejecutables ante el tribunal, que han tenido como fin aumentar la confianza comunitaria e implementar reformas policiales sostenibles. El Dr. Ginger posee experiencia de primera mano en asegurar reformas críticas en todo el país, y un récord comprobado de implementación en un tiempo óptimo. El Dr. Ginger fue nombrado monitor independiente del primer decreto por consentimiento logrado por el Departamento de Justicia en Pittsburgh, Pennsylvania, el cual tenía como meta hacer cumplir leyes de derechos civiles cuyo fin es asegurar principios policiales constitucionales y efectivos. Trabajó en estrecha colaboración con las Partes y la Agencia de Policía de Pittsburgh para implementar reformas completas, diseñadas para enfrentar el uso de fuerza excesivo, arrestos falsos, registros e incautaciones inapropiadas, fallas en el sistema disciplinario y supervisión inmediata inadecuada. También fue nombrado monitor del decreto por consentimiento que tuvo que ver con la Policía Estatal de Nueva Jersey y con los esfuerzos de la misma para erradicar pràcticas policiales discriminatorias. El Dr. Ginger ha sido líder en el desarrollo de técnicas de monitoreo y metodologías utilizadas para evaluar el cumplimiento de decretos federales de consentimiento. El Dr. Ginger ha trabajado con agencias de policía en Nueva York, Ohio, Texas, Florida, Georgia, Alabama, Indiana y otros. Actualmente es presidente de Public Management Resources, Inc. (Administración de Recursos Públicos (PMR, sus siglas en inglés) y es responsable de planeación estratégica, mercadeo, presupuesto y administración.Antes de formar PMR, el Dr. Ginger trabajó como Profesor Adjunto de Justicia Criminal, Director Ejecutivo del Center for Justice Policy (Centro de Políticas para la Justicia), Subdirector de Police Foundation (Fundación de Policía) y Director del Southern Police Institute (Instituto Sureño de Policía). Al Dr. Ginger se le acredita la planeación, el desarrollo e implementación de un proyecto a nivel nacional de ayuda técnica y entrenamiento para el Bureau of Justice Assistance (Oficina de Asistencia para la Justicia) del Departamento, y con haber desarrollado programas nacionales como parte del Southern Police Institute (Instituto Sureño de Policía).
El equipo de monitoreo encabezado por el Dr. Ginger incluye expertos quienes han demostrado conocimientos en evaluar reformas similares a las contenidas en el acuerdo de resolución de Albuquerque. Los miembros del equipo de monitoreo incluiràn entre otros a, G. Patrick Gallagher, Presidente del Grupo Gallagher-Westfall; Dan Giaquinto, especialista legal y socio de Kern, Augustine, Conroy & Schoppman, P.C.; Phil Coyne, Director de Coyne Enterprise Solutions LLC; Mary Kealoha, Vicepresidente del Grupo Gallagher-Westfall; Albert Preik, Ex Director de entrenamiento de la Oficina de Policía de Pittsburgh; Peter Sarna, experto reconocido nacionalmente como entrenador de policía en el uso de fuerza y Dave Torres, Ex Comandante de la academia de entrenamiento de la Policía Estatal de Nueva Jersey.
“Le damos las gracias a todos los individuos y firmas que sometieron cartas de interés para servir como monitores y por sus innumerables logros”, dijo Vanita Gupta, Procuradora General Interina de la División de Derechos Civiles. “La decisión de seleccionar al candidato mejor calificado de entre todos, no fue fàcil y le damos las gracias a la comunidad y a otros interesados por su aportación en este paso crítico en el proceso de implementación”.
“El éxito demostrado por el Dr. Ginger con departamentos de policía y sistemas de justicia criminal en los Estados Unidos, ayudarà a promover el cumplimiento de la estructura crítica y las reformas sistémicas que son necesarias para reestablecer la confianza del público, y lograr pràcticas policiales constitucionales y efectivas en Albuquerque” dijo Damon Martínez, Procurador Federal de los Estados Unidos por el Estado de Nuevo México. “Nos complace haber trabajado en colaboración con la Ciudad para seleccionar al Dr. Ginger, quien creemos està en una posición única para ayudar y reportar sobre los esfuerzos de reforma del Departamento de Policía de Albuquerque”.
Los documentos de la solicitud del Dr. Ginger se pueden encontrar aqui.
Copia de la demanda y del acuerdo final se pueden encontrar en http://www.justice.gov/usao/nm/APD.html y www.justice.gov/crt/about/spl.
Eagle Butte Man Indicted on Drug ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Michael Scott Hearon, age 46, was indicted on November 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 14, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, 3 years of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about between June 22, 2013, and February 3, 2014, Hearon knowingly and intentionally combined, conspired, confederated and agreed with others to distribute and possess with intent to distribute methamphetamine, a Schedule II controlled substance. The Indictment also alleges that Hearon, on June 22, 2013, and October 18, 2013, knowingly and intentionally distributed and possessed with intent to distribute methamphetamine and marijuana.
The charges are merely accusations and Hearon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and Bureau of Indian Affairs. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Hearon was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Kenny Fiddler, age 34, was indicted on December 9, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 15, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about August 23, 2014, Fiddler unlawfully assaulted a male victim with a knife with the intent to do bodily harm.
The charge is merely an accusation and Fiddler is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Fiddler was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for February 24, 2015.
Deputy Assistant Attorney General Sung-Hee Suh Speaks at the PLI’s 14th Annual Institute on Securities Regulation in Europe: Implications for U.S. Law on EU PracticeRead the Press Release
Remarks As Prepared for Delivery
Thank you, Rob, for that kind introduction. I am honored to be invited to speak on this panel with esteemed colleagues from the SEC, FCA, SFO, and the private sector.
As brief background, I am a Deputy Assistant Attorney General in the Department of Justice’s Criminal Division. I oversee several sections, but most relevant to my remarks today is the Fraud Section, which has principal responsibility for the prosecution of complex securities and other white-collar matters for the Criminal Division.
I would like to speak briefly this morning about the Criminal Division’s white-collar criminal enforcement priorities now and in the coming year.
We are focused on fighting corruption, cyber crime, and financial fraud, all of which present unique dangers to American citizens, as well as individuals overseas.
We are prioritizing the fight against financial fraud of all stripes—particularly at publicly traded corporations and large financial institutions—and we will follow the evidence of fraud wherever it leads, be that within or outside U.S. borders.
The prosecution of individuals—including corporate executives—for criminal wrongdoing continues to be a high priority for the department. That is not to say that we will be looking to charge individuals to the exclusion of corporations.
However, corporations do not act criminally, but for the actions of individuals. And, the Criminal Division intends to prosecute those individuals, whether they are sitting on a sales desk or in a corporate suite.
It is within this framework that we are also seeking to reshape the conversation about corporate cooperation to some extent.
Corporations too often overlook a key consideration that the department has long expressed in our Principles of Federal Prosecution, which guide our prosecutorial decisions: That is a corporation’s willingness to cooperate in the investigation of its culpable executives.
Of course, corporations—like individuals—are not required to cooperate. A corporation may make a business or strategic decision not to cooperate. However, if a corporation does elect to cooperate with the department, it should be mindful of the fact that the department does not view voluntary disclosure as true cooperation, if the company avoids identifying the individuals who are criminally responsible for the corporate misconduct.
Even the identification of culpable individuals is not true cooperation, if the company intentionally fails to locate and provide facts and evidence at their disposal that implicate those individuals. The Criminal Division will be looking long and hard at corporations who purport to cooperate, but fail to provide timely and full information about the criminal misconduct of their executives.
In the past year, the Criminal Division has demonstrated its continued commitment to the prosecution of individual wrongdoers in the corporate context. I will highlight a few examples.
On the FCPA front, since 2009, we have convicted 50 individuals in FCPA and FCPA-related cases, and resolved criminal cases against 59 companies with penalties and forfeiture of almost $4 billion. Within the last two years alone, we have charged, resolved by plea, or unsealed cases against 26 individuals, and 14 corporations have resolved FCPA violations with combined penalties and forfeiture of more than $1.6 billion.
As just one example, the department unsealed charges against the former co-CEOs and general counsel of PetroTiger Ltd., a BVI oil and gas company with offices in New Jersey, for allegedly paying bribes to an official in Colombia in exchange for assistance in securing approval for an oil services contract worth $39 million.
The general counsel and one of the CEOs already pleaded guilty to bribery and fraud charges, and the other former CEO is headed for trial.
This case was brought to the attention of the department through voluntary disclosure by PetroTiger, which cooperated with the department’s investigation. Notably, no charges of any kind were filed against PetroTiger.
An example on the flip side is the Alstom case, an FCPA investigation stemming from a widespread scheme involving tens of millions of dollars in bribes spanning the globe, including Indonesia, Saudi Arabia, Egypt, and the Bahamas.
When the Criminal Division learned of the misconduct and launched an investigation, Alstom opted not to cooperate at the outset. What ensued was an extensive multi-tool investigation involving recordings, interviews, subpoenas, MLAT requests, the use of cooperating witnesses, and more.
As of today, four individual Alstom executives have been charged; three of them have pleaded guilty; Alstom’s consortium partner, Marubeni, was charged and pleaded guilty; and Alstom pleaded guilty and agreed to pay a record $772 million fine. And that only accounts for the charges in the United States.
As I have said, we want corporations to cooperate, and will provide appropriate incentives. But, we will not rely exclusively upon corporate cooperation to make our cases against the individual wrongdoers.
On the securities and commodities fraud front, protecting the integrity of our global financial markets continues to be a priority for the Criminal Division. Our investigations into the manipulation of the LIBOR and FX at global financial institutions have received substantial publicity.
So far, five banks have resolved the LIBOR investigation with the department, paying more than $1.2 billion to the department alone. And 11 individuals have been charged, two of whom have pleaded guilty. And again, that only accounts for the charges in the United States. We expect both the LIBOR and FX investigations to continue to develop, both against the financial institutions themselves, as well as culpable individual executives.
To do these complex, international investigations, we are increasingly coordinating with domestic and foreign regulators and law enforcement counterparts, some of whom are on this panel today.
In working with our foreign counterparts, we have developed growing sophistication and experience in a variety of areas, including analyzing foreign data privacy laws and corporations’ claims that overseas documents cannot be provided to investigators in the United States.
We are also building and relying upon on our relationships with our foreign counterparts to gather evidence, locate individuals overseas, conduct parallel investigations of similar conduct, and, when appropriate, coordinate the timing and scope of resolutions.
Yes, just as we are coordinating our investigations, we are likewise willing to coordinate our resolutions, including accounting for the corporate monetary penalties paid in other jurisdictions when appropriate.
This is all to say that you should expect to see these meaningful, multinational investigations and prosecutions of corporations and individuals to continue.
With that, I am looking forward to hearing the remarks of my fellow panelists and discussing these important issues with you in more detail.
Defendant Sentenced for Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A North Carolina man was sentenced today to three years of probation and ordered to pay more than $750,000 in restitution for role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever prosecuted, U.S. Attorney Paul J. Fishman announced.
Luis Martinez, 49, of Matthews, N.C., previously pleaded guilty before U.S. District Judge Claire C. Cecchi, to an information charging him with conspiracy to defraud the United States and theft of government property. The conspiracy caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds and resulted in losses to the United States of more than $12 million.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud that results in over $2 billion in losses annually to the U.S. Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico;
- SIRF participants complete Individual Income Tax Return 1040 Forms using the fraudulently-obtained information, and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 form are entitled to tax refunds – when in fact, the various tax withholdings indicated have not been paid and no refunds are due;
- SIRF perpetrators direct the U.S. Treasury Department to issue the refunds through checks to locations they control or can access, in various ways;
- SIRF perpetrators generate cash proceeds. Some sell the checks at a discount to face value. The buyers then cash the checks at banks or check cashing businesses or deposit them into bank accounts.
Federal law enforcement agencies, recognizing that SIRF was a serious problem, created a multi-agency task force in New Jersey comprised of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration (the “New Jersey Task Force”).
An investigation led by the New Jersey Task Force with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations has revealed that starting as early as 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long running SIRF scheme. The scheme has caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with losses to the U.S. Treasury of more than approximately $12 million.
Members of the conspiracy obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fake 1040s, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted them, law enforcement officers learned just a handful of IP addresses created many of the fraudulent forms that led to the issuance of tax refund checks.
Martinez and the other members of the conspiracy then gained control of checks, sometimes bribing mail carriers to intercept checks and deliver them to other members of the conspiracy.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in fraudulently-applied for refund checks before they were delivered to members of the conspiracy.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Marie Kelokates; the U.S. Secret Service, under the direction of Acting Special Agent In Charge Carl Agnelli; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, for the investigation leading to today’s sentencing.
In addition to the three-year term of probation, Judge Cecchi ordered Martinez to pay $753,041 in restitution and fined him $10,000.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman, Mala Ahuja Harker, Lakshmi Srinavasan Herman, and Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Barry Goldberg Esq., New YorkDaytona Man Sentenced to 15 Years for Federal Drug OffenseRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell today sentenced Fortune Tyrone Hill (34, Daytona Beach) to 15 years in federal prison for possessing with intent to distribute over 100 grams of cocaine base, commonly known as “crack” cocaine. He was sentenced as a career offender because he has at least two prior felony convictions. Hill was found guilty on October 15, 2014, following a bench trial.
According to court documents and evidence presented during trial, on May 20, 2014, officers from the Daytona Beach Police Department responded to a 911 call at an apartment complex, where an individual reported that her vehicle license tag had been stolen. When officers arrived at the complex, Hill attempted to flee and struck one of the officers. He was eventually arrested. Plastic bags containing a total of more than 100 grams of “crack” cocaine, two digital scales, and $1,020 were recovered during a search of Hill. Officers also recovered an additional $1,630 from his rental car.
This case was investigated by the Daytona Beach Police Department and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
Daytona Man Sentenced to 15 Years for Federal Drug OffenseRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell today sentenced Fortune Tyrone Hill (34, Daytona Beach) to 15 years in federal prison for possessing with intent to distribute over 100 grams of cocaine base, commonly known as “crack” cocaine. He was sentenced as a career offender because he has at least two prior felony convictions. Hill was found guilty on October 15, 2014, following a bench trial.
According to court documents and evidence presented during trial, on May 20, 2014, officers from the Daytona Beach Police Department responded to a 911 call at an apartment complex, where an individual reported that her vehicle license tag had been stolen. When officers arrived at the complex, Hill attempted to flee and struck one of the officers. He was eventually arrested. Plastic bags containing a total of more than 100 grams of “crack” cocaine, two digital scales, and $1,020 were recovered during a search of Hill. Officers also recovered an additional $1,630 from his rental car.
This case was investigated by the Daytona Beach Police Department and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
Convicted Tampa Sex Offender Sentenced to Four Years in Prison in Second Failure to Register as a Sex Offender CaseRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Kevin Robert Leblanc (52, Tampa) to four years in federal prison for failing to register as sex offender after absconding from supervision in Florida and traveling to Arizona. He was also ordered to serve a 15-year term of supervised release. Leblanc has been in custody for violating the conditions of his federal supervised release since his arrest in August 2014.
According to court documents, on July 29, 1999, Leblanc was convicted of committing two child sex offenses in Massachusetts. Subsequently, he traveled to Florida, failed to register as a sex offender, and was prosecuted for failure to register. Leblanc pleaded guilty to this charge and, on August 25, 2011, was sentenced to three years in federal prison, and a 15-year term of supervision.
On April 4, 2014, Leblanc was released from federal prison, established a residence in Tampa, and commenced his term of supervised release. On July 25, 2014, he absconded from federal supervision. In doing so, he failed to update his sex offender registration status with Florida authorities, as required by law. Leblanc was arrested near Flagstaff, Arizona, on August 15, 2014, by the U.S. Marshals Service. When interviewed, he acknowledged knowing that he was required to register as a sex offender, that he did not notify Florida authorities that he was leaving the state, and that he failed to notify authorities because he “got fed up” with being supervised.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the United States Marshals Service. It was prosecuted by Assistant United States Attorneys D. Rodney Brown and Kelly S. Karase.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cocaine Importing Conspiracy Lands Mexican National Five-Year Prison TermRead the Press Release
McALLEN, Texas - Mexican national Ricardo Garza-Ramirez, 55, has been ordered to prison for five years following his conviction of conspiracy to import cocaine, announced U.S. Attorney Kenneth Magidson. Garza-Ramirez pleaded guilty Sept. 3, 2014, on the day he was set to begin trial.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty plea, handed Garza-Ramirez a total of 60 months in federal prison. A legal permanent resident, he is expected to face deportation proceedings following his release from prison.
On June 17, 2014, Garza-Ramirez drove a BMW 3Series loaded with 15 kilograms of cocaine from Mexico into the U.S. through the Pharr Port of Entry. Unknown men placed the BMW under Garza-Ramirez’s name and instructed him to cross the vehicle into the country. At the time of his arrest, Garza-Ramirez admitted to crossing the vehicle in this fashion approximately seven or eight times.
Although he denied initially knowing the vehicle contained drugs, at the time of his plea, Garza-Ramirez admitted he knew or at least suspected the vehicle was loaded with some type of controlled substance.
Garza-Ramirez will remain in custody will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by Customs and Border Protection and Homeland Security Investigations. Assistant U.S. Attorneys Kristen J. Rees and David A. Lindenmuth prosecuted the case.
Civil Settlement Reached with Construction Company Falsely Claiming to be Owned by a Service Disabled VeteranRead the Press Release
NEWARK, N.J. – Veteran Construction Associates LLC (Veteran Construction), a construction company headquartered in Burlington, New Jersey, will pay $1.3 million to resolve allegations that it improperly billed the U.S. Department of Veterans Affairs on government contracts, U.S. Attorney Paul J. Fishman announced today.
Veteran Construction was formed in 2006 and listed a service-disabled veteran as its 51 percent owner. From 2008 through 2011 the company bid on and received government construction contracts that were reserved for companies that were certified as owned and operated by service disabled veterans. Veteran Construction successfully completed and invoiced the United States 68 times on those contracts for a total of $6.5 million.
The government, through the Small Business Administration and the Department of Veterans Affairs, encourages businesses that are majority owned and operated by service disabled veterans through a federal government procurement program that sets acquisitions aside for exclusive competition among service disabled veteran owned small businesses.
The settlement resolves allegations that Veteran Construction was not owned and controlled by a service disabled veteran, and thus should neither have received the government contracts, nor invoiced the government for work performed on those contracts. Veteran Construction admitted that it is liable to the United States for its conduct under the False Claims Act.In addition to the $1.3 million payment by Veteran Construction, the company has agreed that it shall never seek to obtain any government contracts set aside for veterans of the United States military and will not seek any government contracts at all for three years from the settlement. The company agreed that none of its current or former members will maintain more than a 10 percent ownership interest in any company seeking to obtain government contracts set aside for veterans of the United States military for three years.
U.S. Attorney Fishman credited Special Agent in Charge Jeffrey G. Hughes of the Department of Veterans Affairs, Office of the Inspector General, Criminal Investigation Division, and Special Agent in Charge Aaron Collins of the U.S. Small Business Administration’s Office of Inspector General, Eastern Region, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark and Assistant U.S. Attorney J. Andrew Ruymann of the U.S. Attorney=s Civil Division in Trenton.
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Defense Counsel: Michael A. Schwartz Esq., Philadelphia
Child Sex Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Memphis, TN – Osbie Antonio Sea, a/k/a “Money,” “Hard Money,” and “Mr. Money,” 32, of Memphis, TN, was sentenced Friday to 10 years in federal prison for conspiracy to commit sex trafficking of a minor, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to the criminal information and statements made in open court, in early 2013, Sea came into contact with a then-14-year-old girl, while she was shopping at a K-Mart in the Raleigh area of Memphis. Sea introduced himself to her as “Money,” handed her a flyer, and told the teenage girl to call him if she wanted to make some money.
A short time later, following an argument with a family member, the victim ran away from home and called Sea. He first took her to his apartment and later to the Extended Stay America near the intersection of Kirby Parkway and Poplar Avenue. According to the victim, Sea knew she was underage, but she was instructed to tell everyone that she was 18 because “he knew he could get in trouble.”
While at the hotel, Sea posted pictures of the victim on the internet site www.Backpage.com. The victim stated she had had intercourse with at least two individuals at Sea’s direction and that Sea had taken all the money that she had earned from the commercial sex acts.
In addition to the prison sentence, Chief U.S. District Judge J. Daniel Breen ordered Sea to serve five years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation (FBI). Assistant United States Attorney Leetra J. Harris represented the government.
# # # #Chicago Man Sentenced to 15 Months in Prison for Violating U.S. Sanctions Against Zimbabwe President Mugabe and OthersRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Zachary T. Fardon for the Northern District of Illinois, Special Agent-in-Charge Robert J. Holley of the FBI’s Chicago Office and Special Agent-in-Charge James C. Lee of the Internal Revenue Service Criminal Investigation Division in Chicago announced today that a Chicago man was sentenced today to 15 months in federal prison for his role in a conspiracy to violate U.S. sanctions by agreeing to assist Zimbabwe President Robert Mugabe and others in an effort to lift economic sanctions against Zimbabwe. Between late 2008 and early 2010, C. Gregory Turner, met multiple times in Africa with Zimbabwean government officials, including President Mugabe and Gideon Gono, governor of the Reserve Bank of Zimbabwe, who were individually subject to U.S. sanctions.
A November 2008 “consulting agreement” provided for total payment of $3.4 million in fees for Turner and his co-defendant, Prince Asiel Ben Israel, to engage in public relations, political consulting and lobbying efforts to have sanctions removed by meeting with and attempting to persuade federal and state government officials, including Illinois members of Congress and state legislators, to oppose the sanctions.
Turner, 72, also known as “Greg Turner,” of Chicago, acted out of greed, U.S. District Judge Elaine Bucklo said in imposing the sentence in Federal Court in Chicago. The judge also said she did not believe Turner’s claim that his conduct was in the name of humanitarianism and helping the people of Zimbabwe. Turner was ordered to begin serving his sentence on March 13, and he was placed on court supervision for a year after he is released from custody.
Turner was found guilty last October of violating the International Emergency Economic Powers Act (IEEPA), following a jury trial in U.S. District Court. Turner was acquitted of one count each of conspiracy and acting as an agent in the United States of a foreign government without providing prior notification to the Attorney General.
“[Turner’s] motivation was his own financial enrichment. He sought to parlay his close relationships with well-connected government officials to score a big payday,” the government argued in a sentencing memo.
Ben Israel, 73, of Chicago, was sentenced last August to seven months in prison after pleading guilty to violating the Foreign Agents Registration Act (FARA).
The sanctions against President Mugabe and other specially designated individuals in Zimbabwe ― for human rights abuses ― were initially imposed in 2003 by President George W. Bush and have been continued annually by President Obama, starting in March 2009. President Mugabe and his ruling ZANU-PF party have governed Zimbabwe since its independence in 1980. The sanctions neither bar travel to Zimbabwe nor prohibit public officials from meeting with specially designated nationals to discuss removing the sanctions, but individuals may not provide services on behalf of or for the benefit of specially designated nationals.
According to the evidence at trial, in early November 2008, Turner and Ben Israel began having discussions with Mugabe, Gono and other ZANU-PF leaders regarding the influence Turner and Ben Israel could wield to have the sanctions removed. The defendants discussed with Mugabe, Gono and others their association with many public officials who purportedly had close connections with then President-Elect Obama. Turner violated IEEPA by conspiring to engage in public relations, political consulting and lobbying efforts on behalf of President Mugabe and other Zimbabwe officials. In early December 2008, Ben Israel’s U.S. bank blocked a wire transfer of $89,970 into his account from a Zimbabwe official affiliated with ZANU-PF, and Ben Israel later traveled to Africa and personally withdrew $90,000 from the bank account of that same Zimbabwe official.
Turner and Ben Israel arranged for trips by federal and state government officials to meet with President Mugabe and other Zimbabwean officials, including in November and December 2008, and January and December 2009; attempted to have Gono and other Zimbabwean officials speak at an issues forum in Washington, D.C., sponsored by a then U.S. Representative from California, and to assist those officials in obtaining visas to travel to the U.S. to attend the event; arranged for President Mugabe to meet with federal and state government officials in New York; lobbied a caucus of state legislators on behalf of Zimbabwean officials; and failed to apply to the Treasury Department for a license to engage in transactions and services on behalf of specially designated nationals.
In early December 2008, Turner and Ben Israel arranged for a delegation to travel to Zimbabwe. After members of the delegation returned, President-Elect Obama’s transition team forwarded information about contact from a member of the delegation to the FBI based on its concerns that sanctions may have been violated.
The Justice Department’s Counterespionage Section assisted in the investigation.
The government was represented by Trial Attorney David Recker with the Justice Department’s Counterespionage Section and Assistant U.S. Attorneys Barry Jonas and Georgia Alexakis.
Chicago Man Sentenced to 15 Months in Prison for Violating U.S. Sanctions Against Zimbabwe President Mugabe and OthersRead the Press Release
CHICAGO — A Chicago man was sentenced today to 15 months in federal prison for his role in a conspiracy to violate U.S. sanctions by agreeing to assist Zimbabwe President Robert Mugabe and others in an effort to lift economic sanctions against Zimbabwe. Between late 2008 and early 2010, the defendant, C. GREGORY TURNER, met multiple times in Africa with Zimbabwean government officials, including President Mugabe and Gideon Gono, governor of the Reserve Bank of Zimbabwe, who were individually subject to U.S. sanctions.
A November 2008 “consulting agreement” provided for total payment of $3.4 million in fees for Turner and his co-defendant, PRINCE ASIEL BEN ISRAEL, to engage in public relations, political consulting, and lobbying efforts to have sanctions removed by meeting with and attempting to persuade federal and state government officials, including Illinois members of Congress and state legislators, to oppose the sanctions.
Turner, 72, also known as “Greg Turner,” of Chicago and Israel, acted out of greed, U.S. District Judge Elaine Bucklo said in imposing the sentence in Federal Court in Chicago. The judge also said she did not believe Turner’s claim that his conduct was in the name of humanitarianism and helping the people of Zimbabwe. Turner was ordered to begin serving his sentence on March 13, and he was placed on court supervision for a year after he is released from custody.
Turner was found guilty last October of violating the International Emergency Economic Powers Act (IEEPA), following a jury trial in U.S. District Court. Turner was acquitted of one count each of conspiracy and acting as an agent in the United States of a foreign government without providing prior notification to the Attorney General.
“[Turner’s] motivation was his own financial enrichment. He sought to parlay his close relationships with well-connected government officials to score a big payday,” the government argued in a sentencing memo.
Ben Israel, 73, of Chicago, was sentenced last August to seven months in prison after pleading guilty to violating the Foreign Agents Registration Act (FARA).
The sanctions against President Mugabe and other specially designated individuals in Zimbabwe ― for human rights abuses ― were initially imposed in 2003 by President George W. Bush and have been continued annually by President Obama, starting in March 2009. President Mugabe and his ruling ZANU-PF party have governed Zimbabwe since its independence in 1980. The sanctions neither bar travel to Zimbabwe nor prohibit public officials from meeting with specially designated nationals to discuss removing the sanctions, but individuals may not provide services on behalf of or for the benefit of specially designated nationals.
According to the evidence at trial, in early November 2008, Turner and Ben Israel began having discussions with Mugabe, Gono, and other ZANU-PF leaders regarding the influence Turner and Ben Israel could wield to have the sanctions removed. The defendants discussed with Mugabe, Gono, and others their association with many public officials who purportedly had close connections with then President-Elect Obama. Turner violated IEEPA by conspiring to engage in public relations, political consulting, and lobbying efforts on behalf of President Mugabe and other Zimbabwe officials. In early December 2008, Ben Israel’s U.S. bank blocked a wire transfer of $89,970 into his account from a Zimbabwe official affiliated with ZANU-PF, and Ben Israel later traveled to Africa and personally withdrew $90,000 from the bank account of that same Zimbabwe official.
Turner and Ben Israel arranged for trips by federal and state government officials to meet with President Mugabe and other Zimbabwean officials, including in November and December 2008, and January and December 2009; attempted to have Gono and other Zimbabwean officials speak at an issues forum in Washington, D.C., sponsored by a then U.S. Representative from California, and to assist those officials in obtaining visas to travel to the U.S. to attend the event; arranged for President Mugabe to meet with federal and state government officials in New York; lobbied a caucus of state legislators on behalf of Zimbabwean officials; and failed to apply to the Treasury Department for a license to engage in transactions and services on behalf of specially designated nationals.
In early December 2008, Turner and Ben Israel arranged for a delegation to travel to Zimbabwe. After members of the delegation returned, President-Elect Obama’s transition team forwarded information about contact from a member of the delegation to the FBI based on its concerns that sanctions may have been violated.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John Carlin, Assistant Attorney General for the National Security Division; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The Justice Department’s Counterespionage Section assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Barry Jonas and Georgia Alexakis, and David Recker, a trial attorney with the Justice Department’s Counterespionage Section.
Chelsea Man Sentenced for Role in Fraudulent Drivers License SchemeRead the Press Release
BOSTON – A Chelsea man was sentenced today for his role in a scheme to produce fraudulent identification documents.
Leonel Sanchez, 52, was sentenced to a total of 26 months in prison and three years of supervised release. In October 2014, Sanchez pleaded guilty before U.S. District Court Judge Douglas P. Woodlock to conspiracy to produce false identification documents and aggravated identity theft. From December 2012 through January 2013, Sanchez bribed an employee of the Massachusetts Registry of Motor Vehicles in connection with a scheme to issue Massachusetts driver’s licenses to individuals who presented fraudulently obtained Puerto Rican identification documents.
This sentencing is the most recent development in the ongoing investigations involving identity theft and public corruption relating to the Massachusetts Registry of Motor Vehicles.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; Celia J. Blue, Registrar of the Massachusetts Registry of Motor Vehicles; Colonel Timothy P. Alben, Superintendent of the Massachusetts States Police; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, New York Regional Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Cannonball N.D. Man Sentenced on Two Counts of AssaultRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on Jan. 20, 2015, Ryan Maurice Thunderhawk, 24, Cannonball, N.D., was sentenced before U. S. District Judge Daniel L. Hovland to serve six years in prison for assault with a dangerous weapon and assault resulting in serious bodily injury. Thunderhawk was also ordered to serve three years supervised release and pay a $200 special assessment to the Crime Victims Fund.
On July 6, 2014, assaulted an adult female with the intent to do bodily harm, and which resulted in serious bodily injury. Thunderhawk was in a relationship with the female victim at the time of the incident which occurred on the Standing Rock Indian Reservation.
This case was investigated by Bureau of Indian Affairs -Standing Rock Agency
Assistant U. S. Attorney Gary Delorme prosecuted the case.
CEO and Chairman of International Pulp Mill Company Pleads Guilty in Manhattan Federal Court to Hiding over $8.4 Million in Secret Swiss Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas E. Bishop, the Acting Special Agent-in-Charge of the New York Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that GEORGE LANDEGGER pled guilty on January 16, 2015, to willfully failing to file Reports of Foreign Bank and Financial Accounts (“FBARs”) with the IRS regarding secret Swiss bank accounts that he maintained and controlled at a Swiss private bank headquartered in Zurich, Switzerland (the “Swiss Bank”). LANDEGGER, the Chairman and CEO of an international pulp mill company, maintained his undeclared accounts at the Swiss Bank from at least the early 2000s up until 2010. During that time, LANDEGGER’s undeclared assets reached a high value of over $8.4 million. LANDEGGER entered his guilty plea before U.S. Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Preet Bharara said: “As he admitted, George Landegger maintained secret Swiss bank accounts he repeatedly failed to declare to the IRS, and he took steps to conceal his ownership of the accounts. The benefits of citizenship or residency in the United States come with certain obligations, including, as George Landegger well knew, the legal requirement to report foreign bank accounts. He will now pay for his illegal conduct.”
IRS Acting Special Agent-in-Charge Thomas E. Bishop said: “The Internal Revenue Service has made uncovering hidden offshore accounts and income a top priority and, working with the Department of Justice, we continue to demonstrate our success in doing so. The prosecutions of individuals who decide to keep their foreign assets concealed and of those who advise and assist them serve as clear warnings to anyone who doubts the U.S. Government’s resolve.”
According to the Information filed today in Manhattan federal court:
From at least the early 2000s, up until 2010, LANDEGGER maintained undeclared bank accounts on his own behalf at the Swiss Bank. In 2005, a representative of the Swiss Bank (“Swiss Bank Representative-1”) recommended to LANDEGGER that for the protection of LANDEGGER and the Swiss Bank, LANDEGGER utilize the services of an attorney based in Zurich, Switzerland, to form a sham entity to hold LANDEGGER’s undeclared accounts at the Swiss Bank. Thereafter, a sham trust was formed to hold LANDEGGER’s undeclared accounts at the Swiss Bank and further conceal LANDEGGER’s ownership of those accounts from the IRS. The sham trust, which was organized under the laws of Lichtenstein, was named “Onicuppac,” which is the word “Cappucino” in reverse.
In April 2009, LANDEGGER, Swiss Bank Representative-1, and another individual had a meeting in Switzerland, the purpose of which was to discuss the future of LANDEGGER’s undeclared accounts at the Swiss Bank, in light of the public news that another Swiss bank, UBS AG, had been investigated by United States law enforcement authorities for helping U.S. taxpayers maintain undeclared accounts. During that meeting, LANDEGGER and Swiss Bank Representative-1 discussed the possibility of LANDEGGER disclosing his undeclared accounts to the IRS, including by entering the IRS’s offshore voluntary disclosure program (the “OVDP”). LANDEGGER affirmatively rejected the possibility of disclosing his undeclared accounts to the IRS, whether by entering the OVDP or by any other method. Instead, LANDEGGER and Swiss Bank Representative-1 determined to empty the accounts of their assets by slowly moving the undeclared assets out of Switzerland. Thereafter, between May 2009 and July 2010, LANDEGGER, with the assistance of Swiss Bank Representative-1 and others at the Swiss Bank, emptied the assets from his undeclared accounts at the Swiss Bank by transferring a portion of those undeclared assets to a new, declared account in Canada, and by transferring the remainder of the undeclared assets to an account maintained by another individual in Hong Kong.
During the time LANDEGGER maintained his undeclared accounts at the Swiss Bank, capital gains and losses were generated in the account from LANDEGGER’s investments in foreign securities. Between 2007 and 2010, the high value of LANDEGGER’s undeclared assets was over $8.4 million. For each of the calendar years from at least the early 2000s through 2010, LANDEGGER failed to file FBARs with the IRS, as he was required to, disclosing his signatory or other authority over his undeclared accounts at the Swiss Bank.
LANDEGGER, 77, of Ridgefield, Connecticut, faces a maximum sentence of five years in prison. As part of his plea, LANDEGGER has agreed to pay a civil penalty of over $4.2 million and back taxes of over $71,000. He is scheduled to be sentenced by U.S. District Judge Richard J. Sullivan on May 12, 2015, at 10:00 a.m. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding efforts of IRS-CI in the investigation. Mr. Bharara also thanked U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul and Jason H. Cowley are in charge of the prosecution.
Buffalo Man Sentenced on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jose R. Ramos, 36, of Buffalo, NY, who was convicted of attempted possession with intent to distribute cocaine, was sentenced to 30 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney John M. Alsup, who handled the case, stated that on April 20, 2012, the defendant attempted to accept delivery of a package mailed form Puerto Rico that contained approximately 2.5 kilograms of cocaine. The package was delivered initially to an address in Niagara Falls, NY. Shortly after taking the package from the residence where it was delivered, Ramos was apprehended by agents of the Drug Enforcement Administration.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office and Special Agents of the U.S. Postal Inspection Service, Boston Division, under the direction of Inspector in Charge, Shelly A. Binkowski.
Broward Real Estate Broker Sentenced in Three Cases for over $5 Million FraudRead the Press Release
A Broward real estate broker was sentenced today to 41 months in prison, three years supervised release and ordered to pay $4,029,892, in restitution to victims in three separate fraud cases by U.S. District Judge William P. Dimitrouleas.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Drew J. Breakspear, Commissioner, Florida’s Office of Financial Regulation, and Scott Israel, Sheriff, Broward Sheriff’s Office, made the announcement.
Christopher Wayne White, 44, of Fort Lauderdale, Florida, pled guilty on November 21, 2014 in Case No. 14-60283-CR-Dimitrouleas to one count of wire fraud. According to documents filed with the court, White made numerous false statements to the mortgage lender in connection with the purchase of a luxury home on Sea Island Drive in Fort Lauderdale. According to court records, White inflated his bank account balances, income, deposit and assets to fraudulently induce the mortgage lender to issue a mortgage loan in excess of $4.9 million dollars. The property was subsequently foreclosed by the lender resulting in substantial losses.
In Case No. 14-60282-CR-Dimitrouleas, White pled guilty on November 21, 2014 to six counts of wire fraud. According to court documents, White was a licensed real estate broker and owner and operator of the Christopher White Group in Fort Lauderdale. White obtained multiple real estate deposits in excess of $750,000 via wire transfers involving properties in Broward County from individuals and refused to return the escrow deposits. Subsequently, the Secretary of Florida’s Department of Business and Professional Regulation ordered an emergency suspension of White’s real estate broker’s license.
In Case No. 14-60216-CR-Dimitrouleas, White pled guilty on November 21, 2014 to three counts of making material false statements to U.S. Citizenship and Immigration Services. According to documents filed with the court, these statements were included on White’s April 16, 2014, application for naturalization submitted to the U.S. Department of Homeland Security, U.S. Citizenship and Immigration Services. White made the following material false statements in his naturalization application: (1) that he had never claimed to be a U.S. Citizen; (2) that he had never committed, assisted in committing or attempted to commit a crime or offense for which he was never arrested; and (3) that he had never failed to support his dependents.
Mr. Ferrer commended the investigative efforts of the FBI, ICE-HSI, Florida’s Office of Financial Regulation, and the Broward Sheriff’s Office. Mr. Ferrer also thanked the Florida Department of Business and Professional Regulation for their assistance. The case was prosecuted by Assistant U.S. Attorneys Randy Katz and Thomas P. Lanigan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brooklyn Man Sentenced in Manhattan Federal Court to 15 Years in Prison for Providing Material Support to Al QaedaRead the Press Release
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara for the Southern District of New York announced that Wesam El-Hanafi was sentenced today in Manhattan federal court to 15 years in prison for his extensive efforts to support al Qaeda – including financial support and facilitating surveillance of a New York City landmark for an attack – that spanned nearly three years. El-Hanafi was arrested in the United Arab Emirates in April 2010 and transferred to United States custody. On June 10, 2012, El-Hanafi pleaded guilty to one count of providing and attempting to provide material support and resources to al Qaeda, and one count of conspiring to provide material support and resources to al Qaeda, before U.S. District Judge Kimba M. Wood, who also imposed today’s sentence.
“Wesam El-Hanafi was deeply involved in supporting al Qaeda both financially and by facilitating surveillance of a New York landmark to bring an attack to our homeland in our city,” said U.S. Attorney Bharara. “Today’s sentence is a fitting punishment for these crimes and we will continue, with our law enforcement partners, to pursue punishment for those who provide and conspire to provide material support for terrorists.”
According to various public filings and statements made during public proceedings, including today’s sentencing:
From 2007 through late 2009, El-Hanafi supported al Qaeda in a variety of ways. In 2007, El-Hanafi and his co-defendant Sabirhan Hasanoff developed contact with individuals whom they understood to be affiliated with al Qaeda. After a period of providing financial support to these individuals, in February 2008, El-Hanafi traveled to Yemen to meet with two terrorist operatives who El-Hanafi understood were members of al Qaeda. While in Yemen, El-Hanafi swore an oath of allegiance, called bayat, to al Qaeda and delivered money and other items, including a laptop computer, to the terrorist operatives. El-Hanafi also taught the terrorist operatives in Yemen covert Internet communications techniques and supplied them with encryption tools that would facilitate communicating without detection. El-Hanafi and Hasanoff additionally sent other items, including remote-controlled devices capable of use in an explosives attack, to El-Hanafi’s terrorist contacts in Yemen.
El-Hanafi and Hasanoff together funneled approximately $67,000 to terrorist operatives overseas. El-Hanafi and Hasanoff collected some of this money from a third individual who resided in the United States. During this time, both El-Hanafi and Hasanoff used aliases to disguise the source of their money when making cash donations to their terrorist contacts.
Moreover, at the direction of his Yemen-based terrorist contacts, El-Hanafi assigned Hasanoff to perform surveillance of locations in the United States, including the New York Stock Exchange in Manhattan, as potential targets of a terrorist attack by al Qaeda. El-Hanafi received Hasanoff’s report of his surveillance of the New York Stock Exchange, and sent that report to the terrorist operatives in Yemen.
El-Hanafi and Hasanoff also undertook efforts to enable their own travel to engage in jihad in Somalia, Afghanistan, and Iraq. Their al Qaeda contacts would not facilitate El-Hanafi’s and Hasanoff’s travel for jihad, however, because al Qaeda viewed the two men as more valuable for potential attacks on U.S. soil.
* * *
In addition to his prison term, El-Hanafi, 39, of Brooklyn, New York, was sentenced to 3 years of supervised release. El-Hanafi was also ordered to pay a $200 special assessment fee and forfeiture in the amount of $70,000.
Hasanoff pleaded guilty on June 4, 2012, to one count of providing and attempting to provide material support and resources to al Qaeda, and one count of conspiracy to provide material support and resources to al Qaeda. On Sept. 30, 2013, Hasanoff was sentenced to a total term of 18 years in prison, to be followed by a three-year term of supervised release, and was ordered to pay forfeiture in the amount of $70,000.
Assistant Attorney General Carlin is grateful for the outstanding investigative work of the FBI’s New York-based Joint Terrorism Task Force (JTTF) – which principally consists of special agents of the Federal Bureau of Investigation and detectives of the New York City Police Department. Assistant Attorney General Carlin would also like to thank the Department of Justice’s National Security Division and Office of International Affairs, the Kansas City-based JTTF, and the United States Attorney’s Office for the Western District of Missouri for their extraordinary assistance in this matter.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys John P. Cronan, Aimee Hector, Michael Lockard, and Brendan R. McGuire are in charge of the prosecution, with assistance from Trial Attorney Joseph Kaster of the Counterterrorism Section in the Justice Department’s National Security Division.
Brooklyn Man Sentenced in Manhattan Federal Court to 15 Years in Prison for Providing Material Support to Al QaedaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that WESAM EL-HANAFI was sentenced today in Manhattan federal court to 15 years in prison for his extensive efforts to support al Qaeda – including financial support and facilitating surveillance of a New York City landmark for an attack – that spanned nearly three years. EL-HANAFI was arrested in the United Arab Emirates in April 2010 and transferred to United States custody. On June 10, 2012, EL-HANAFI pled guilty to one count of providing and attempting to provide material support and resources to al Qaeda, and one count of conspiring to provide material support and resources to al Qaeda, before U.S. District Judge Kimba M. Wood, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara stated: “Wesam El-Hanafi was deeply involved in supporting al Qaeda both financially and by facilitating surveillance of a New York landmark to bring an attack to our homeland in our city. Today’s sentence is a fitting punishment for these crimes and we will continue, with our law enforcement partners, to pursue punishment for those who provide and conspire to provide material support for terrorists.”
According to various public filings and statements made during public proceedings, including today’s sentencing:
From 2007 through late 2009, EL-HANAFI supported al Qaeda in a variety of ways. In 2007, EL-HANAFI and his co-defendant Sabirhan Hasanoff developed contact with individuals whom they understood to be affiliated with al Qaeda. After a period of providing financial support to these individuals, in February 2008, EL-HANAFI traveled to Yemen to meet with two terrorist operatives who EL-HANAFI understood were members of al Qaeda. While in Yemen, EL-HANAFI swore an oath of allegiance, called bayat, to al Qaeda and delivered money and other items, including a laptop computer, to the terrorist operatives. EL-HANAFI also taught the terrorist operatives in Yemen covert Internet communications techniques and supplied them with encryption tools that would facilitate communicating without detection. EL-HANAFI and Hasanoff additionally sent other items, including remote-controlled devices capable of use in an explosives attack, to EL-HANAFI’s terrorist contacts in Yemen.
EL-HANAFI and Hasanoff together funneled approximately $67,000 to terrorist operatives overseas. EL-HANAFI and Hasanoff collected some of this money from a third individual who resided in the United States. During this time, both EL-HANAFI and Hasanoff used aliases to disguise the source of their money when making cash donations to their terrorist contacts.
Moreover, at the direction of his Yemen-based terrorist contacts, EL-HANAFI assigned Hasanoff to perform surveillance of locations in the United States, including the New York Stock Exchange in Manhattan, as potential targets of a terrorist attack by al Qaeda. EL-HANAFI received Hasanoff’s report of his surveillance of the New York Stock Exchange, and sent that report to the terrorist operatives in Yemen.
EL-HANAFI and Hasanoff also undertook efforts to enable their own travel to engage in jihad in Somalia, Afghanistan, and Iraq. Their al Qaeda contacts would not facilitate EL-HANAFI’s and Hasanoff’s travel for jihad, however, because al Qaeda viewed the two men as more valuable for potential attacks on U.S. soil.
In addition to his prison term, EL-HANAFI, 39, a citizen of the United States, who formerly resided in Brooklyn, New York, was sentenced to three years of supervised release. EL-HANAFI was also ordered to pay a $200 special assessment fee and forfeiture in the amount of $70,000.
Hasanoff pled guilty on June 4, 2012, to one count of providing and attempting to provide material support and resources to al Qaeda, and one count of conspiracy to provide material support and resources to al Qaeda. On September 30, 2013, Hasanoff was sentenced to a total term of 18 years in prison, to be followed by a three-year term of supervised release, and was ordered to pay forfeiture in the amount of $70,000.
Mr. Bharara praised the outstanding investigative work of the FBI’s New York-based Joint Terrorism Task Force (“JTTF”) – which principally consists of special agents of the Federal Bureau of Investigation and detectives of the New York City Police Department. Mr. Bharara thanked the Department of Justice’s National Security Division and Office of International Affairs, the Kansas City-based JTTF, and the United States Attorney’s Office for the Western District of Missouri for their extraordinary assistance in this matter.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys John P. Cronan, Aimee Hector, Michael Lockard, and Brendan R. McGuire are in charge of the prosecution.
Bogalusa Chiropractor Pleads Guilty to Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID LEE KILLEN, age 43, a resident of Covington, pled guilty today to a one-count Bill of Information for health care fraud. KILLEN admitted to fraudulently billing health care insurance plans for chiropractic and other services that were not rendered or were otherwise unauthorized.
According to court documents, KILLEN was a chiropractor who owned and operated Back on Track Clinic, LLC in Bogalusa. KILLEN billed insurers for chiropractic services, back braces, and X-rays that he did not provide. KILLEN also billed insurers for an expensive allergy test, the antigen leukocyte antibody test, otherwise known as an “ALCAT.” KILLEN either did not render the ALCATs or used it to incentivize his patients, bartering for reductions in co-payments or erasing co-payment balances if the patient would agree to the test. KILLEN also fraudulently billed insurers for services using physician provider numbers without authorization, or on days when the physicians were not working in his clinic.
KILLEN faces a maximum term of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release following any term of imprisonment. U.S. District Judge Sarah S. Vance set sentencing for April 29, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, the United States Department of Health and Human Service’s Office of Inspector General for investigating this matter. Special Assistant United States Attorney Juliana A. Etland is in charge of the prosecution.
Bitcoin Exchanger Sentenced in Manhattan Federal Court to Four Years in Prison for Selling Nearly $1 Million in Bitcoins for Drug Buys on Silk RoadRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ROBERT M. FAIELLA, a/k/a “BTCKing,” an underground Bitcoin exchanger, was sentenced today to four years in prison for his role in knowingly transmitting nearly $1 million in Bitcoins intended to facilitate drug trafficking on “Silk Road,” a black-market website designed to enable users to buy and sell illegal drugs anonymously and beyond the reach of law enforcement. FAIELLA pled guilty in September 2014 before U.S. District Judge Jed S. Rakoff, who also imposed today’s sentence.
According to the allegations contained in the Complaint, the Indictment, the Superseding Information, and statements made in other documents filed in Manhattan federal court and related court proceedings:
From about December 2011 to October 2013, FAIELLA ran an underground Bitcoin exchange on the Silk Road website, a website that served as a sprawling and anonymous black market bazaar where illegal drugs of virtually every variety were bought and sold regularly by the site’s users. Operating under the username “BTCKing,” FAIELLA sold Bitcoins – the only form of payment accepted on Silk Road – to users seeking to buy illegal drugs on the site. Upon receiving orders for Bitcoins from Silk Road users, he filled the orders through BitInstant, a company based in New York, New York. BitInstant was designed to enable customers to exchange cash for Bitcoins anonymously, that is, without providing any personal identifying information, and charged a fee for its service. FAIELLA obtained Bitcoins with BitInstant’s assistance, and then sold the Bitcoins to Silk Road users at a markup.
With the knowledge and active assistance of Charles Shrem, the Chief Executive Officer of BitInstant, FAIELLA exchanged nearly $1 million in cash for Bitcoins for the benefit of Silk Road users, so that the users could, in turn, make illegal purchases on Silk Road.
In addition to the prison sentence, FAIELLA, 55, of Fort Myers Beach, Florida, was sentenced to three years of supervised release and was ordered to forfeit $950,000, representing the amount of funds involved in the offense that were intended to promote illegal activity.
FAIELLA’s co-defendant, Shrem, was sentenced to two years in prison by Judge Rakoff on December 19, 2014.
Mr. Bharara praised the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the U. S. Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement - Homeland Security Investigations, the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, the U.S. Marshals Service, New York National Guard, Office of Foreign Assets Control, and the New York Department of Taxation and Finance. Mr. Bharara also thanked the FBI’s New York Field Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Serrin Turner is in charge of the prosecution, and Assistant United States Attorney Andrew Adams of the Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
Bangor Resident Sentenced to over Three Years for Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Elizabeth Mikotowicz, 26, Bangor, Maine was sentenced today in U.S. District Court in Bangor to 37 months in prison and three years of supervised release for conspiracy to possess with the intent to distribute and to distribute MDPV, a chemical compound commonly referred to as “bath salts” or “monkey dust.” Mikotowicz pleaded guilty to the charge on May 12, 2014.According to court records, between April and December 2011, the defendant illegally distributed MDPV in Penobscot County and elsewhere. The defendant distributed MDPV to others who were using and selling the drug in the Bangor area. Mikotowicz is one of eighteen defendants who pleaded guilty to conspiring with Ryan Ellis to distribute the drug. Ellis previously pleaded guilty and awaits sentencing.
The case was investigated by the Maine Drug Enforcement Agency with assistance from the U.S. Drug Enforcement Administration.Bakersfield Man Pleads Guilty to Shining Laser at Law Enforcement AircraftRead the Press Release
FRESNO, Calif. — Timothy Earl Wilson, 46, of Bakersfield, pleaded guilty today to aiming a laser pointer at an aircraft, United States Attorney Benjamin B. Wagner announced.
According to court documents, on March 2, 2014, Wilson pointed a powerful green laser two times at Air-1, a Kern County Sheriff’s Office helicopter while it was flying 500 feet above the ground. As a result of the laser strikes, the tactical flight officer experienced a feeling of pressure, throbbing, and irritation in his eyes that lasted 30 minutes and the flight crew was forced to divert attention away from its law enforcement responsibilities.
The federal statute that makes it a federal crime to knowingly aim the beam of a laser pointer at an aircraft was signed into law in 2012 by President Obama in response to increasing threats posed by laser illuminations of aircraft. Last year, there were 3,894 reported laser strikes in the United States, or 10.67 incidents per day.
Wilson is scheduled for sentencing on March 30, 2015, before Senior United States District Judge Anthony W. Ishii. Wilson faces a maximum penalty of five years in prison and a $250,000 fine, along with forfeiture of the seized lasers. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Aurora Drug Dealer Sentenced to 147 Months in Federal Prison for Intent to Distribute Cocaine While Possessing A FirearmRead the Press Release
DENVER – Korian Kenny Bascombe, age 31, of Aurora, Colorado, was sentenced late last week by U.S. District Court Judge Christine M. Arguello to serve 147 months (over 12 years) in federal prison for possession with intent to distribute cocaine and possessing a firearm in furtherance of a drug trafficking crime, federal and state law enforcement authorities announced. Following his prison sentence, Bascombe was ordered to serve 4 years of supervised release. Bascombe was also ordered to forfeit $7,746.00, a firearm and a 2000 Cadillac DeVille.
Bascombe was originally charged by indictment on February 26, 2013, followed by a superseding indictment on June 18, 2013. He then pled guilty before Judge Arguello on September 9, 2014. Other defendants charged in the superseding indictment include Robert Bellender (aka Ghost), Victor Rivas-Pinzon, Andrew T. Sorensen, and Bruce Thomas. Bellender, Rivas-Pinzon and Thomas pled guilty and were sentenced to 54, 42, and 38 months in prison, respectively.
According to information contained in court documents, including the stipulated facts contained in Bascombe’s plea agreement, Bascombe was arrested after a traffic stop on February 24, 2013. During a search of Bascombe’s car subsequent to his arrest, 28 grams of crack cocaine and a .22 caliber semi-automatic pistol with ammunition was found in the vehicle.
Based on the investigation by the Front Range Task Force, Bellender began purchasing distribution quantities of powder cocaine and crack cocaine from Bascombe for $1,200 per ounce when Bellender’s initial supplier stopped distributing to him. Bascombe and Bellender were converting or “cooking” powder cocaine to convert it into the crack form.
Between October of 2011 and his arrest, Bascombe sold a crack cocaine to Bellender and his co-conspirators. Twenty kilograms is the equivalent of approximately 705 ounces.
This case was investigated by agents of the Front Range Task Force which include the Drug Enforcement Administration, IRS Criminal Investigation (IRS CI), Denver Police Department, Aurora Police Department, Arapahoe County Sheriff’s Office, Douglas County Sheriff’s Office, Colorado Bureau of Investigation, Colorado National Guard, and the Mountain Police Department.
This case is being prosecuted by Assistant U.S. Attorney James R. Boma.
Aplington Man Sentenced to Nine Years in Federal Prison for Unlawfully Possessing FirearmsRead the Press Release
Contact: Steve Young
A man who unlawfully possessed three rifles, two handguns, and 161 rounds of ammunition was sentenced today to nine years in federal prison.
Mark Harken, 32, from Aplington, Iowa, received the prison term after an August 29, 2014, guilty plea to one count of being a felon and unlawful user of methamphetamine in possession of firearms and ammunition.
At the guilty plea, Harken admitted he was a felon and unlawful user of methamphetamine, and that on April 11, 2014, he possessed five firearms, including a semi-automatic rifle. Evidence at sentencing showed that Harken, after being pulled over by an Aplington police officer on April 11, 2014, was in possession of the firearms. Following the traffic stop, Harken assaulted the officer by punching him multiple times and by pulling a handgun and pointing it at the officer. Harken fled from the police in his truck, reaching speeds of up to 95 mph, before eventually driving off road into a wooded area. Harken was eventually taken into custody after a struggle, during which officers had to use a Taser on him.
Harken was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Harken was sentenced to 108 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Harken is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Aplington Police Department and the Butler County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-3028.Americus Man Pleads Guilty to Producing Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Douglas Roseth, 23, of Americus, Georgia entered a plea of guilty on January 20, 2015 to one count of production of child pornography before the Honorable Clay D. Land, U.S. District Court Judge, in Columbus, Georgia.Mr. Roseth admitted that he posed as a teenage girl on social media chats and enticed young boys to masturbate and expose themselves to him. Sexually explicit screenshots of these chats were found by the United States Secret Service after they assumed the investigation and forensically examined Mr. Roseth’s computers. Secret Service agents were able to track down several of the boys who identified sexually explicit screen shots of themselves that had been taken during social media chats. Each boy stated they had been enticed to do so by what they presumed to be a teenage girl while on a social media site.
The plea agreement carries a mandatory minimum statutory penalty of 15 years imprisonment up to a maximum of 30 years imprisonment, a maximum fine of $250,000, or both. Mr. Roseth will also be required to register as a sex offender upon his release from prison.“This case reminds us that child predators will use whatever they can to entice child victims into their traps. As parents, we must be vigilant about monitoring our children’s use of computers, and as law enforcement we must remember that people like Mr. Roseth use deceit to lure their prey, requiring us to spare no resource or effort to find and catch producers of child pornography,” said U.S. Attorney Michael Moore.
The case is being investigated by the United States Secret Service, as well as the Harris County Sheriff’s Office, the Georgia Bureau of Investigation, the Columbus Police Department, and the National Center for Missing and Exploited Children. Assistant United States Attorney Crawford Seals is prosecuting the case for the GovernmentQuestions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Air Force Sergeant Sentenced to Ten Years for Attempting to Meet Children for SexRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore today sentenced Nicholas Darwin Yancey (30, Melbourne) to 10 years in federal prison for attempted child enticement. The Court also ordered him to forfeit two cellphones and a computer that he had used to commit the offenses. Yancey pleaded guilty on October 2, 2014.
According to court documents, on February 10, 2014, Yancey, a Staff Sergeant on active duty in the U.S. Air Force, posted an advertisement on Craigslist soliciting individuals for “texting/sexting.” An undercover law enforcement officer with the U.S. Air Force Office of Special Investigations, posing as a 14-year-old child, responded to the ad. Yancey and the “child” communicated over the Internet for months, during which time Yancey told the “child” that he wanted to engage in sexual intercourse with her and solicited nude photographs of her. He also stated that he had a crush on her, and invited her to a sleepover at a hotel on MacDill Air Force Base.
On June 26, 2014, the undercover officer observed several additional postings from Yancey on Craigslist. The officer responded to one of the advertisements posing as a second “child.” Yancey and the second “child” communicated using an Internet messaging application. Yancey told the second “child” that he wanted to engage in sexual intercourse with her, and possibly one of her friends. He arranged to meet the second “child” for sex on July 3, 2014, but later attempted to change the meeting. When the second “child” declined, Yancey informed her that he would simply go down the list, referring to his ability to find another person to meet. On June 27, 2014, Yancey contacted the first “child” and arranged to meet her later that week for sex. On June 29, 2014, he traveled to the Ballast Point area in Tampa, where they had arranged to meet, and was arrested.
This case was investigated by the U.S. Air Force Office of Special Investigations. It was prosecuted by Assistant United States Attorney Amanda Kaiser.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Air Force Sergeant Sentenced to Ten Years for Attempting to Meet Children for SexRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore today sentenced Nicholas Darwin Yancey (30, Melbourne) to 10 years in federal prison for attempted child enticement. The Court also ordered him to forfeit two cellphones and a computer that he had used to commit the offenses. Yancey pleaded guilty on October 2, 2014.
According to court documents, on February 10, 2014, Yancey, a Staff Sergeant on active duty in the U.S. Air Force, posted an advertisement on Craigslist soliciting individuals for “texting/sexting.” An undercover law enforcement officer with the U.S. Air Force Office of Special Investigations, posing as a 14-year-old child, responded to the ad. Yancey and the “child” communicated over the Internet for months, during which time Yancey told the “child” that he wanted to engage in sexual intercourse with her and solicited nude photographs of her. He also stated that he had a crush on her, and invited her to a sleepover at a hotel on MacDill Air Force Base.
On June 26, 2014, the undercover officer observed several additional postings from Yancey on Craigslist. The officer responded to one of the advertisements posing as a second “child.” Yancey and the second “child” communicated using an Internet messaging application. Yancey told the second “child” that he wanted to engage in sexual intercourse with her, and possibly one of her friends. He arranged to meet the second “child” for sex on July 3, 2014, but later attempted to change the meeting. When the second “child” declined, Yancey informed her that he would simply go down the list, referring to his ability to find another person to meet. On June 27, 2014, Yancey contacted the first “child” and arranged to meet her later that week for sex. On June 29, 2014, he traveled to the Ballast Point area in Tampa, where they had arranged to meet, and was arrested.
This case was investigated by the U.S. Air Force Office of Special Investigations. It was prosecuted by Assistant United States Attorney Amanda Kaiser.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
19 January 2015
Qualcomm Sales Director Admits Insider TradingRead the Press Release
SAN DIEGO –Derek Montague Cohen, a former Sales Director at Qualcomm, Inc (NASD: QCOM) pled guilty today to insider trading and admitted netting almost $200,000 in fraudulent proceeds by trading ahead of Qualcomm’s 2011 acquisition of Atheros Communications. At the time of his illegal trade, Cohen was a director in Qualcomm’s North America Sales Department. Two of his former colleagues in the Sales Department -- Robert Herman and Michael Fleischli -- have already been charged and taken responsibility for their misconduct.
According to Cohen’s plea agreement, he and Herman were part of an informal stock trading group that occasionally shared tips and opinions with each other about the stock market. Beginning in December 2010, their immediate supervisor notified them that Qualcomm was contemplating a major acquisition of a public company, and emphasized that this information was secret. Because of his access to inside information at Qualcomm, Cohen knew there were a limited number of companies that could potentially be considered as acquisition targets by the company.
As detailed today in court, by the morning of January 4, 2011, Cohen had learned from his position at Qualcomm that the identity of the acquisition target was Atheros. Cohen then engaged in a series of stock and options trades to take advantage of this inside information at the expense of ordinary shareholders. Over the span of just a few hours, Cohen purchased 10,400 shares of Atheros stock, and 375 call options in Atheros, at a cost of over $430,000. Less than an hour after Cohen’s last illegal trade, the New York Times reported on the planned acquisition by Qualcomm, which caused Atheros’s stock price to rocket upward. Defendant sold his stock and stock options later that month for an illegal profit of just under $200,000 – an amount that he agreed to forfeit to the United States as part of his plea agreement.
Cohen was the fourth former Qualcomm executive charged with insider trading in connection with the company’s Atheros acquisition. Jing Wang, Qualcomm’s former Executive Vice President and President of Global Business Operations, pled guilty in July 2014 to insider trading and money laundering based on three separate instances in which he misused Qualcomm’s confidential information to trade in a secret brokerage account in the name of a British Virgin Islands entity. Wang – who reaped over $240,000 from his insider trading and then attempted to obstruct federal investigations into his misconduct – is to appear in federal court on February 20, 2015, at which time his sentencing hearing will be scheduled. Cohen’s co-defendant Robert Herman – who made just under $30,000 in proceeds and pled guilty in late 2014 – was sentenced earlier this month to three years of probation, fined $50,000, and ordered to complete 1,500 hours of community service. The fourth insider trading defendant, Michael Fleischli, was charged in May 2014 with making approximately $3,000 from insider trading on the Atheros acquisition, and is currently on a three-year period of supervision pursuant to a deferred prosecution agreement.
Wang’s stock broker, former Merrill Lynch vice president Gary Yin, has also been convicted of conspiring with Wang to launder the proceeds of Wang’s insider trading and obstruct the investigation into his misconduct. Yin is also scheduled to appear in federal court on February 20, when it is expected that his sentencing hearing will be set.
United States Attorney Laura E. Duffy complimented the Federal Bureau of Investigation for its exemplary work on this matter and expressed appreciation for the Los Angeles office of the U.S. Securities and Exchange Commission, Division of Enforcement (“SEC”), which worked collaboratively with prosecutors while conducting separate civil investigations of the same securities fraud offenses.
Cohen’s sentencing is set for May 22, 2015 at 9:00 a.m. before the Honorable Janis L. Sammartino.
DEFENDANT Case Number: 14CR1202-JLS Derek Montague Cohen Age: 52 San Diego, California CHARGESTitle 15, U.S.C., Secs. 78j(b), 78ff – Securities Fraud (Insider Trading). Maximum penalties include 20 years in prison, $5 million fine and three years of supervised release.
DEFENDANT Case Number: 13CR3487-WQH Jing Wang Age: 52 Del Mar, California CHARGESTitle 15, U.S.C., Secs. 78j(b), 78ff – Securities Fraud (Insider Trading). Maximum penalties include 20 years in prison, $5,000,000 fine, three years of supervised release, and restitution.
Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) – Money Laundering. Maximum penalties include 20 years in prison, $500,000 fine, and three years of supervised release.
DEFENDANT Case Number: 13CR3488-WQH Gary Yin Age: 56 San Diego, California CHARGESTitle 18, U.S.C., Sec. 371 – Conspiracy to obstruct proceedings and commit money laundering. Maximum penalties include 5 years in prison, $250,000 fine, three years of supervised release, and restitution.
INVESTIGATING AGENCIESFederal Bureau of Investigation
16 January 2015
Woman Sentenced in Federal Court for Committing Bankruptcy FraudRead the Press Release
Pocatello - RaeLeigh Day, 42, of Burley, Idaho, was sentenced today in United States District Court to three years of probation for bankruptcy fraud, U.S. Attorney Wendy J. Olson announced. Day pleaded guilty to the charge on October 29, 2014.
According to the plea agreement, Day filed for bankruptcy in December 2009 and omitted from the filed petitions, schedules, and statement of financial affairs a Honda four-wheeler and a Honda ATV. Day’s electronic signatures verified the truthfulness of the filed documents under penalty of perjury. After a meeting of creditors, Day filed amended paperwork listing a 2005 Honda four-wheeler worth $480 and a 2004 Honda ATV worth $860, describing both vehicles as being in need of “major work.” Day again verified the information under penalty of perjury. When the Chapter 7 trustee requested information about the ATVs, Day provided a letter stating that the ATVs were wrecked and attached photographs of wrecked ATVs. The ATVs in the photographs, however, were not the ATVs in question in the bankruptcy proceeding. The chapter 7 trustee obtained possession of the actual ATVs and confirmed they were not the ATVs in the pictures. Day’s ATVs were in good condition, and the trustee sold them for $3,500. Day admitted in court that she provided the photographs and other false information with the intent to mislead and conceal the assets from the chapter 7 trustee, in order to influence or prevent the trustee from seizing and selling the ATVs in the course of the bankruptcy proceedings.
“Those who seek the protection of the U.S. bankruptcy court have a firm obligation to be truthful and to make appropriate disclosures,” said Olson. “This office is committed to seeking appropriate penalties for those who instead choose to conceal and mislead.”
The case was investigated by the Internal Revenue Service, Criminal Investigations.
William I. Jackson Sentenced for Drug and Guns OffensesRead the Press Release
GREENEVILLE, Tenn. – On Jan. 15, 2015, William Isaac Jackson, 26, of Elizabethton, Tenn., was by the Honorable Leon Jordan, U.S. District Judge, to serve 150 months in prison for conspiracy to possess a quantity of crack cocaine and possession of firearms in furtherance of drug trafficking. Upon his release from prison Jackson will supervised by the U.S. Probation Office for four years. There is no parole in the federal system.
Jackson’s wife, Latari Jackson, also pleaded guilty to conspiracy to distribute crack cocaine. She will be sentenced at a later date.
Law enforcement agencies participating in the joint investigation included the Elizabethton Police Department, Drug Enforcement Agency Task Force, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Wilcox County Man Sentenced for Possession with the Intent to Distribute Crack CocaineRead the Press Release
MOBILE, AL-- United States Attorney Kenyen R. Brown announces that Isiah Smith was sentenced on January 16, 2015 to twenty four months confinement by United States District Court Judge Kristi K. DuBose. Smith was sentenced for the federal felony offense of Possession with the Intent to Distribute Crack Cocaine. Court papers revealed that undercover officers purchased small amounts of crack cocaine from Smith on six separate occasions. Smith also received an additional twelve month term of confinement, to run consecutive with the twenty four month sentence, as he was on federal supervised release from a prior federal felony drug conviction when he committed the current offense.
The case was investigated by the Alabama Alcoholic Beverage Control Board and the Wilcox County Sheriff’s Office.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- James D. Garcia, Jr., 32, of South Bend, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of a Bureau of Alcohol, Tobacco, Firearms and Explosives investigation. Sentencing has been set for April 20, 2015. This case is being prosecuted by Assistant United States Attorney Kenneth M. Hays.
- Usbaldo Martinez, 33, of Logansport, Indiana pled guilty to the felony offense of possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of a Drug Enforcement Administration investigation. Sentencing has been set for April 16, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Darius Williams, 30, of South Bend, Indiana pled guilty to the felony offense of possession of heroin with intent to distribute. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of a Drug Enforcement Administration investigation. Sentencing has been set for April 24, 2015. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Milton Bell, 51, of Gary, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for April 23, 2015. This case is being prosecuted by Assistant United States Attorney Thomas M. McGrath.
- Crescencio Lozano Romero, 37, of Connell, Washington, pled guilty to the felony offense of possession with intent to distribute heroin. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has been set for April 16, 2015. This case is being prosecuted by Assistant United States Attorney Jennifer Chang.
- Jose Ruiz, 37, of Illinois, pled guilty to the felony offense of distribution of cocaine. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Sentencing has been set for April 14, 2015. This case is being prosecuted by Assistant United States Attorney Jennifer Chang.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Laquintin Abbey, 26, of East Chicago was sentenced to 15 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of aiding and abetting the straw purchase of a firearm. According to documents filed in this case, on March 22, 2014, Abbey fraudulently represented to an employee of Cabela’s Retail, a licensed firearms dealership in Hammond, Indiana, that she was the actual purchaser of a firearm when in fact she was purchasing the firearm for someone else. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant United States Attorney Thomas M. McGrath.
- Robert Barker, 29, of Calumet City, Illinois was sentenced to 35 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, Barker coerced an individual who later cooperated with law enforcement to purchase guns on his behalf. Barker utilized this individual to purchase or attempt to purchase 10 guns between October and December 2013. During this time, Barker was prohibited from possessing firearms because he was a convicted felon. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jennifer Chang.
- Dexter Eugene Howard, 36, of Gary, Indiana was sentenced to 120 months imprisonment with 3 years supervised release after pleading guilty to two felony offenses of Bank Robbery. According to documents filed in this case, Howard robbed the 5/3 Bank located at 6760 Broadway in Merrillville, Indiana on March 13, 2014. He stole $2,000 cash during this robbery and was ordered by the Court to pay restitution in that amount. Howard also robbed the 5/3 Bank located at 8477 Broadway in Merrillville, Indiana on March 20, 2014. He stole $2,813 cash during this robbery; because the money was recovered , the court did not order restitution. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Jennifer Chang.
- Andy Mitchell, 55, of Chicago was sentenced to 24 months’ probation after pleading guilty to the felony offense of conspiracy to commit insurance fraud. According to documents filed in this case, on December 18, 2013, the defendant was part of a group who staged automobile accidents in Northwest Indiana and Chicago and subsequently submitted false and fraudulent police reports and insurance claims for property damage. This case was the result of an investigation by the United States Postal Inspection Service. This case was prosecuted by Assistant United States Attorney Toi Denise Houston.
- Linda Rosenberg, 60, of Chicago, Illinois was sentenced to 46 months imprisonment with 1 year of supervised release after pleading guilty to a three count information charging the following: Count 1, conspiracy to receive kickbacks for the referral of Medicare and Medicaid patients to service providers; Count 2 dispensing a controlled substance without legitimate medical purpose and; Count 3, misbranding. This case was the result of an investigation by the Federal Bureau of Investigation, Drug Enforcement Administration, Federal Drug Administration and Indiana Medicaid Fraud Control Unit. This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION
- Hayley VanDurmen, 22, of Fort Wayne, Indiana was sentenced to one year probation after pleading guilty to the felony offense of knowingly selling a firearm to a convicted felon and aiding and abetting. According to documents filed in this case, on or about April 26, 2013, VanDurmen knowingly aided and abetted in the selling of a firearm to a convicted felon. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
Warren Pair Indicted for False Statements to a Firearms DealerRead the Press Release
A federal grand jury returned a one-count indictment charging Pamela E. Vincent, 43, and William Roberts, 40, both of Warren, with false statements to a federally licensed firearms dealer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about October 9, 2014, Roberts aided, abetted, and counseled Vincent in connection with the acquisition of a Ruger, model 9E, 9mm pistol, from J & D Firearms, Inc., 3323 Parkman Road, Warren, in that Vincent knowingly made a false and fictitious written statement which was intended to deceive J & D Firearms, Inc., as to a fact material to the lawfulness of the sale of the firearm, in that Vincent represented that she was the purchaser of the firearm, when in fact, she was purchasing said firearm for another individual.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.