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Thursday 20 November 2014
Englewood Man Sentenced to 60 Years in Federal Prison for Production of Child PornographyRead the Press Release
DENVER – Mervin Edy Wolf, age 62, of Englewood, Colorado, was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 720 months (60 years) in federal prison for production of child pornography, U.S. Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced. Based on his age, the defendant will likely die in prison. At the beginning of the pronouncement of sentence, Judge Moore said; “Mr. Wolf, you were born a free man, but I’m going to make sure you don’t die as one.”
The defendant, who appeared at the sentencing hearing in custody, was remanded following the hearing.
Wolf was arrested based on a Criminal Complaint filed on March 6, 2014. He was subsequently indicted by a federal grand jury in Denver on March 26, 2014. He pled guilty before Judge Moore on July 24, 2014. He was sentenced today, November 20, 2014.
Beginning on or about September of 2007, Wolf began producing pornographic photographs of a minor child who was a member of his extended family. Over the next seven years Wolf coerced the same minor child to perform and participate in an escalating pattern of sexual acts with him that Wolf would photograph and or video tape. During several of the molestations, Wolf’s other family members were in the room next door, but unaware of what was happening.
In January 2013, the minor child contacted Wolf via telephone and told him that she was afraid she may be pregnant due to his sexual activity with her. Wolf told the minor child he would pay for an abortion if she was in fact pregnant by Wolf. Wolf mailed two home pregnancy tests to the minor child; after she took the tests and learned she was not pregnant.
When the minor child learned that Wolf was planning to visit her in June 2014, she made the decision to disclose all of the sexual abuse by Wolf. The minor child explained she was afraid Wolf would start molesting her younger sibling. Once the minor child’s family learned of the abuse by Wolf, other family members came forward to also report abuse by Wolf. During the course of the California investigation, it was also learned that Wolf and his wife were foster parents in 2003. Two foster children who were both girls and under the age of seven, both disclosed sexual abuse by Wolf. The allegations were investigated by the Arapahoe County Department of Human Services and the Englewood Police Department. No charges were filed against Wolf. However, due to the allegations, the Wolfs’ foster care license was revoked.
On March 5, 2014, a federal search warrant was executed at the residence of Mervin Wolf in Englewood, Colorado. During the subsequent search of Wolf’s home, FBI agents seized a 8mm video camera, a digital camera, a camera tripod, and a laptop among other items. Forensic examination of the computers revealed that the Wolf had produced hundreds of images of child pornography of Minor #1 from the time that she was seven until she was fourteen. He also hid a camera in Minor #1’s bathroom and filmed her while she was nude.
“The defendant manipulated and preyed on children over the course of many years,” said U.S. Attorney John Walsh. “He poses a permanent risk to other children and the community that fully warrants Judge Moore’s severe sentence, which guarantees he will spend the rest of his life in prison.”
“The FBI will continue to aggressively seek out and investigate those who prey on children, especially those who produce and distribute child pornography,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “Crimes of this nature threaten our most precious resource, offend every sensibility, and cannot be tolerated.”
This case was investigated by the FBI with support from Minor #1’s local county Sheriff’s Office.
Wolf was prosecuted by Assistant U.S. Attorney Judith Smith, Chief, Special Prosecutions Section, Criminal Division of the Colorado U.S. Attorney’s Office.This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Eleven Northern California Real Estate Investors Indicted for Bid Rigging and Fraud at Public Foreclosure AuctionsRead the Press Release
A federal grand jury in San Francisco returned three multi-count indictments against eleven real estate investors for their role in bid rigging and fraud schemes at foreclosure auctions in Northern California, the Department of Justice announced.
The indictments, filed late yesterday in U.S. District Court for the Northern District of California in Oakland, California, charge Northern California real estate investors Michael Marr; Javier Sanchez; Gregory Casorso; Victor Marr; John Shiells; Miguel De Sanz; Alvin Florida Jr.; Robert A. Rasheed; John L. Berry III; Refugio Diaz; and Stephan A. Florida with participating in conspiracies to rig bids and schemes to defraud mortgage holders and others. The indictments allege that the defendants agreed not to compete at public auctions in return for payoffs and diverted money to themselves and others that should have gone to mortgage holders and other beneficiaries. All defendants were charged with bid rigging and fraud in Alameda County, California. Marr, Sanchez, Shiells, and De Sanz were also charged with bid rigging and fraud in Contra Costa County, California. Additionally, Shiells and De Sanz were charged with bid rigging and fraud in San Francisco County, California.
To date, 47 individuals have pleaded guilty to criminal charges as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public foreclosure auctions in Northern California. On Oct. 22, 2014, a federal grand jury in San Francisco returned an eight-count indictment against five additional real estate investors for their role in bid rigging and fraud schemes at foreclosure auctions in San Mateo and San Francisco Counties, California.
“Collusion at the foreclosure auctions created an unfair playing field where conspirators pocketed illegal payoffs at the expense of lenders and distressed homeowners,” said Brent Snyder, Deputy Assistant Attorney for the Antitrust Division’s criminal enforcement program. “The division will continue to investigate and prosecute local cartels that harm the competitive process.”
The indictments allege, among other things, that at various times between June 2007 and January 2011, the defendants conspired to rig bids to obtain numerous properties sold at foreclosure auctions in Alameda, Contra Costa, and San Francisco counties, negotiated payoffs for agreeing not to compete, held second, private auctions known as “rounds,” concealed those rounds and payoffs, and, in the process, defrauded mortgage holders and other beneficiaries.
“These charges demonstrate our continued commitment to investigate and prosecute individuals and organizations responsible for the corruption of the public foreclosure auction process,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The FBI is committed to work these important cases and remains unwavering in our dedication to bring the members of these illegal conspiracies to justice.”
Each violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. Each count of mail fraud carries a maximum sentence of 20 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the mail fraud schemes. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million.
These indictments are the latest charges filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, California. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300, or call the FBI tip line at 415-553-7400.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Eleven Alleged Universal Aryan Brotherhood Members and Associates Charged with Racketeering, Drug Conspiracy, Kidnapping, and Maiming A PersonRead the Press Release
TULSA, Okla. – Eleven alleged gang members and associates of the Universal Aryan Brotherhood (UAB) have been charged for their alleged roles in conspiring to participate in a racketeering enterprise, drug conspiracy, kidnapping, and maiming a person, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
The indictment, returned by a federal grand jury on November 5, 2014, was unsealed on November 10, 2014. The defendants charged in the indictment are Anthony Ramon Hall, 39; Ronnie Dean Haskins, 41; Aaron Clay King, 31; Matthew Brian Wagner, 32; Richard Allen Roberts, 30; Robert Allen Paul Bryan, 40; Rodney Lee Broomhall, 37; William Benton Williams, 41; Kristin Michelle Bright, 31; Carl Matthew Smith, 36; and Timothy Duane Buck, 23. All defendants are from Oklahoma.
According to court documents, the UAB is a “white only,” prison-based gang with members operating inside and outside of state prisons throughout Oklahoma. The UAB is a criminal organization whose members and associates engage in drug distribution, money laundering, and acts of violence involving kidnapping, assault, and arson throughout Oklahoma. The gang was established in 1993 within Oklahoma Department of Corrections penitentiaries and modeled itself after the principles and ideology of the Aryan Brotherhood, a California-based prison gang that formed during the 1960’s.
As alleged in the indictment, the defendants conspired in racketeering activities to advance the UAB enterprise. Racketeering activities included possessing and selling 500 grams or more of methamphetamine, and the use of threats, intimidation, violence, and destruction.
The indictment further alleges that on May 2, 2013, Haskins, King, Bryan, Broomhall, and Bright kidnapped and maimed a person for the purpose of maintaining and increasing their position within the UAB gang. Following a direct order, the defendants held down a UAB member and placed a heated knife on his neck to burn off the UAB patch-tattoo because it was believed that the member did not supply and distribute drugs to the UAB enterprise.
If convicted, the racketeering, drug conspiracy, and kidnapping charges each carry a statutory maximum penalty of life in prison and a fine of $250,000. The maiming charge carries a statutory maximum penalty of 30 years in prison and a fine of not more than $250,000.
The charges stem from an investigation by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); Tulsa Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigations Division; Tulsa County Sheriff’s Office; and the Oklahoma Department of Corrections. The case is being prosecuted by John Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma.An indictment is merely a charge and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. v. Hall, et al.
Eastern District of Oklahoma United States Attorney’s Office Collects $3,282,431 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
Muskogee, Oklahoma - Attorney General Eric Holder announced on Wednesday that the Justice Department collected approximately $24.7 billion in civil and criminal actions in the fiscal year ending September 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
United States Attorney Mark Green announced today that the Eastern District of Oklahoma collected $3,282,431 in criminal and civil actions in Fiscal Year 2014. Of this amount, $417,196 was collected in criminal actions and $2,865,235 was collected in civil actions.
Additionally, the U.S. Attorney’s office in the Eastern District of Oklahoma, working with partner agencies and divisions, collected $852,749 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“Collection of monies due the United States of America in both criminal and civil matters is a responsibility of this U.S. Attorney’s Office as well as those across our nation. We here in the Eastern District of Oklahoma are committed to fulfilling that responsibility,” said U.S. Attorney Mark Green.
Elected Guvo District Chairwoman Sentenced to 18 Months ImprisonmentRead the Press Release
TUCSON, Ariz. – Today, Angela Julene Ortiz, 58, of Menagers Dam, Ariz., was sentenced by Chief U.S. District Judge Raner C. Collins to an 18-month term of imprisonment. Ortiz had plead guilty to a single count of conspiracy to transport illegal aliens for profit. She will self- surrender on Dec 19, 2014.
The evidence showed that from 2012 to 2013, Ortiz was the elected Gu Vo District chairwoman on the Tohono O’odham Indian Nation. During the same time period, Ortiz was the leader and organizer of a conspiracy to recruit drivers to transport illegal aliens and coordinate with others to receive the illegal aliens in Phoenix. Ortiz would then split the proceeds with the transporter receiving on average $2000.00 per alien transported.
The investigation in this case was jointly conducted by the Federal Bureau of Investigation Public Corruption Task Force, and the U.S. Border Patrol. The prosecution was handled by Lawrence Lee, Assistant U.S. Attorney, District of Arizona, Tucson.CASE NUMBER: CR-13-01940 TUC RCC
RELEASE NUMBER: 2014-066_OrtizFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.- Donna Man Pleads Guilty in Hidalgo County Hacking Case
District of Maine U.S. Attorney’s Office Collects over $1.5 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that
the District of Maine collected $1,525,980 in criminal and civil actions in Fiscal Year 2014. Of
this amount, $847,901.95 was collected in criminal actions and $678,078.23 was collected in
civil actions.Attorney General Eric Holder announced yesterday that the Justice Department collected
$24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. More than
$24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated
$2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that
same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to
protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on
investment to the American people,” said Attorney General Holder. “Their diligent efforts are
enabling us to achieve justice and recoup losses in virtually every sector of the U.S.
economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing
federal laws; in protecting the American people from violent crime, national security threats,
discrimination, exploitation, and abuse; and in holding financial institutions accountable for their
roles in causing the 2008 financial crisis.”The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are
responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal
debts owed to federal crime victims. The law requires defendants to pay restitution to victims of
certain federal crimes who have suffered a physical injury or financial loss. While restitution is
paid to the victim, criminal fines and felony assessments are paid to the department’s Crime
Victims’ Fund, which distributes the funds to state victim compensation and victim assistance
programs.The largest civil collections were from affirmative civil enforcement cases, in which the
United States recovered government money lost to fraud or other misconduct or collected fines
imposed on individuals and/or corporations for violations of federal health, safety, civil rights or
environmental laws. In addition, civil debts were collected on behalf of several federal agencies,
including the U.S. Department of Housing and Urban Development, Health and Human Services,
Internal Revenue Service, Small Business Administration and Department of Education.Additionally, the U.S. Attorney’s office in Maine, working with partner agencies and
divisions, collected $484,379 in asset forfeiture actions in FY 2014. Forfeited assets deposited
into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims
and for a variety of law enforcement purposes.District Woman Sentenced to Eight Years in Prison for Stabbing Partner Repeatedly During Argument-Quick Police Work Prevented Victim from Bleeding to Death-Read the Press Release
WASHINGTON – Maya Moore, 25, of Washington, D.C., was sentenced today to eight years in prison on a charge of aggravated assault while armed stemming from an attack in which she repeatedly stabbed her girlfriend, U.S. Attorney Ronald C. Machen Jr. announced.
Moore pled guilty in September 2014 in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for the eight-year prison term. The Honorable Robert E. Morin accepted the plea and sentenced Moore accordingly. Upon completion of her prison term, Moore will be placed on five years of supervised release.
According to the government’s proffer of evidence, on Aug. 21, 2014, at approximately 11:30 p.m., Moore had been publicly arguing with her girlfriend in the 4400 block of C Street SE. In the midst of the argument Moore began to stab her girlfriend with a knife. Moore pursued her girlfriend when she tried to flee and continued to stab her until she fell to the ground. Moore did not stop stabbing her until police officers arrived on the scene. In total, Moore stabbed her girlfriend 14 times all over her body, including her chest, neck, abdomen, arm, and thigh, which required the application by police of a tourniquet to prevent her from bleeding out.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department detectives and officers who investigated the case, particularly the officers whose application of the tourniquet may have saved the victim’s life, and members of the Gay and Lesbian Liaison Unit who helped coordinate with the victim during the investigation. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Meshall Thomas and Elsa Resendiz; Victim/Witness Security Specialist Tonya Via, and Paralegal Specialist D’Yvonne Key. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Kenechukwu Okocha, who investigated and prosecuted the case.
14-262District Man Sentenced to Seven Years in Prison for Armed Robbery of University Student-Attack Took Place in Middle of Afternoon; Victim Was Headed to Class-Read the Press Release
WASHINGTON - Sterling Walton, 46, of Washington, D.C., was sentenced today to a seven-year prison term for an armed robbery of a university student that took place earlier this year in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Walton pled guilty in September 2014, in the Superior Court of the District of Columbia, to a charge of armed robbery. He was sentenced by the Honorable William M. Jackson. The judge sentenced Walton to six years in prison for the armed robbery and an additional year for committing the crime while having been released earlier on unrelated misdemeanor charges. Upon completion of the prison time, Walton will be placed on five years of supervised release.
According to the government’s evidence, at approximately 3:45 pm on Friday, Feb. 21, 2014, the 18-year-old victim, then a freshman at George Washington University, was walking to catch a shuttle to class when he was accosted at 22nd and F Streets NW. Walton demanded money, claimed he had a gun, and reached toward the waistband of his shorts as if he had a weapon. The victim gave Walton his wallet and Walton fled with the $25 contained in the wallet.
Believing Walton had a gun, the victim called 911. A look-out was broadcast by the Metropolitan Police Department (MPD) and immediately re-broadcast by the U.S. Secret Service, which was in the area. Minutes later, uniformed Secret Service officers stopped Walton.
In announcing the sentence, U.S. Attorney Machen commended the excellent work and collaboration of the MPD and the U.S. Secret Service in quickly apprehending Walton. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Allison Daniels and Assistant U.S. Attorneys Christopher Macchiaroli and Katherine Earnest, of the Felony Major Crimes Trial Section, who prosecuted the matter.
14-261Des Moines Man Sentenced to 18 Years in Prison on Federal Charge of Manufacturing Child PornographyRead the Press Release
DES MOINES, IA - On November 17, 2014, Joshua Parsons, of Des Moines, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 18 years in prison for manufacturing child pornography, announced U. S. Attorney Nicholas A. Klinefeldt. Parsons was also sentenced to a lifetime of supervised release.
Parsons volunteered his time as a mentor to children in the Des Moines area, took pornographic photographs of a young boy, and used the internet to download hundreds of images and videos of child pornography.
“This investigation involved a quick and effective response from the Marshalltown Police Department to capture a sexual predator and identify the victims of his offenses,” said Marshalltown Police Chief Michael W. Tupper. “The eighteen-year sentence in this case justly reflects the seriousness of the crime.”
The case was investigated by the Marshalltown, Iowa, Police Department and the Polk County Sheriff’s Office as part of the Iowa Internet Crimes Against Children Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Anyone who knows of a child being sexually abused is encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
(Download Press Release)
Defendants Convicted at Trial of Conspiring to Traffick CocaineRead the Press Release
SAN FRANCISCO – Fortunato Rodelo-Lara and Jesus Wilfredo Almendares-Vasquez were convicted of two counts of engaging in a conspiracy to distribute cocaine and one count of distribution of cocaine by a federal jury on Nov. 18, 2014, announced United States Attorney Melinda Haag and Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick.
The jury found that from 2009 to 2012, the defendants worked with others to obtain cocaine from Southern California and distributing it in the Bay Area and in Seattle, Wash. Evidence at trial showed that Fortunato Rodelo-Lara, 45, of San Mateo, provided cash used to obtain cocaine on Jan. 22, 2010, and that the cocaine was then redistributed by members of the conspiracy. Rodelo-Lara also helped wrap and conceal kilograms of cocaine on other occasions as a part of the conspiracy. Evidence at trial also showed that Almendares-Vasquez, 39, of South San Francisco, distributed cocaine out of his auto detailing business in South San Francisco in 2010. The guilty verdict followed a two-week jury trial before the Honorable Edward M. Chen, United States District Court Judge.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Rodelo-Lara and Almendares-Vasquez were charged along with other co-defendants with various drug trafficking offenses. Seven other defendants have previously pleaded guilty to conspiracy to distribute cocaine, cocaine base i.e. “crack” cocaine, and methamphetamine, as well as other offenses in the case. The investigation by the Drug Enforcement Administration also resulted in cases filed in the Central District of California and the Western District of Washington.
Rodelo-Lara and Almendares-Vasquez were indicted by a federal grand jury on Jan. 17, 2012. They were charged with multiple violations of drug trafficking offenses, in violation of Title 21, United States Code, Sections 846 and 841(a)(1).
Upon conviction, Rodelo-Lara was remanded to the custody of the United States Marshal. Almendares-Vasquez is currently released on electronic monitoring with a bond amount of $200,000.
The defendants’ sentencing hearings are scheduled for Feb. 18, 2015, before Judge Chen in San Francisco. The maximum statutory penalty for each count is life imprisonment, lifetime supervised release following a term of imprisonment, and a fine of $10 million dollars. The defendants are each subject to a minimum of 5 years imprisonment and a minimum of 4 years of supervised release. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Rodelo-Lara and Almendares-Vasquez indictment
Rodelo-Lara and Almendares-Vasquez superseding indictment
Dallas Man Sentenced to 192 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A 35-year-old Dallas resident, Jeffrey Wyatt Savell, II, was sentenced this afternoon by U.S. District Judge Barbara M. G. Lynn to 192 months in federal prison on a child pornography conviction, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Savell, who is in custody, pleaded guilty in March 2014 to one count of transporting and shipping child pornography.
According to documents filed in the case, the investigation began in April 2013 when a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), working online in an undercover capacity, noticed that a computer with particular IP address traced to a location in Dallas was sharing more than 200 files, some with names indicative of child pornography.
After further investigation, a federal search warrant was obtained and executed at Savell’s residence in June 2013. Savell admitted using file-sharing networks to share files. He knew some of the videos depicted toddlers, but he was mostly interested in teens, primarily young boys.
A forensic examination of Savell’s laptop computers revealed more than 750 images and 250 videos of child pornography. That analysis also revealed that 14 of the files depicted sadism and/or masochism, and 22 files depicted infants or toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Dallas County Man Sentenced to 144 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — A Lancaster, Texas, man who admitted transporting and shipping child pornography was sentenced this afternoon in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Quincy Lamar Poole, 25, was sentenced by U.S. District Judge Barbara M. G. Lynn to 144 months in federal prison to be followed by a 5-year term of supervised release. Poole has been in custody since his arrest in July 2013 on a related federal criminal complaint.
According to plea documents filed in the case, when special agents with the FBI executed a search warrant at Poole’s home in Lancaster on July 16, 2013, they seized a laptop computer, a thumb drive and Poole’s cell phone. Email transmissions were located that showed Poole had sent two emails with a video of child pornography attached to each. In addition, five videos and one image of child pornography were located on his cell phone.
Poole admitted trading images and videos of child pornography with others he met through two Internet websites, according to the complaint filed in the case. He admitted downloading thousands of images of child pornography, adding that for the past 10 years he had an obsession with child pornography.
At today’s sentencing hearing, it was stipulated that law enforcement located more than 4000 images and 21 videos of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated the case and Assistant U.S. Attorney Camille Sparks prosecuted.
- Couple Found Guilty for Sex Trafficking of Minors in Two States
Chico Florist Shop Owner Sentenced to 3 Years in Prison for Tax Dodge and Retaliating Against Federal OfficersRead the Press Release
SACRAMENTO, Calif. — United States District Judge Troy L. Nunley sentenced James O. Molen, 70, of Chico, today to three years in prison to be followed by three years of supervised release, for dodging taxes, defying court orders, and retaliating against federal officials involved in his case, United States Attorney Benjamin B. Wagner announced.
On May 27, 2014, after a four-day trial, a federal jury returned a guilty verdict. According to evidence presented at trial, Molen ran Touch of Class Florist in Chico, and beginning in 2000, he stopped withholding and paying federal employment and unemployment taxes. After years of collection efforts by the IRS, Molen filed false liens in 2004 against people who had been involved in his case: two federal judges, the United States Attorney, two civil Department of Justice attorneys, an IRS revenue officer, and a witness. The liens claimed collateral of more than $93 billion. After a 2007 court order prohibited him from filing more false liens against federal officers, in 2010, Molen filed false liens against two revenue officers assigned to collect his taxes, claiming more than $199,000 in collateral. Molen ignored several court orders, sent a bogus tax payment to the IRS that he called an “International Bill of Exchange,” and sought to frustrate collections by placing his residence and bank accounts in trusts.
At sentencing, Judge Nunley called the filing of retaliatory false liens against federal employees “absolutely absurd.” He referred to Molen’s many frivolous filings and statements about the authority of the federal courts concluding, “The defendant has said things that are simply stupid.” Judge Nunley further noted that in light of Molen’s deteriorating health, “Thirty-six months is not a drop in the bucket. That is a significant sentence.”
“Mr. Molen thought he could evade the federal tax laws that apply to every American by objecting to federal jurisdiction, ignoring his obligations, and attempting to harass and intimidate federal officials,” said U.S. Attorney Wagner. “The sentence imposed today reflects the fact that such tactics are both ineffective and criminal.”
This case was the product of an investigation by the Internal Revenue Service –Criminal Investigation and the United States Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorneys Matthew D. Segal and Sherry D. Hartel Haus prosecuted the case.
Charlotte Hall Man Exiled to 12 Years in Prison and Second Man Pleads Guilty for the Armed Robbery of a Jewelry Store and PharmacyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Furman Troy, age 44, of Charlotte Hall, Maryland, today to 12 years in prison followed by five years of supervised release for two counts of armed commercial robbery and for brandishing a firearm in relation to a crime of violence.Co-defendant Darrell Lee, age 46, also of Charlotte Hall, pleaded guilty to the same charges on November 19, 2014.
The sentence and guilty plea were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and St. Mary’s County Sheriff Tim Cameron.
According to their plea agreements, on June 18, 2014, Troy and Lee entered a jewelry store in Charlotte Hall, Maryland in order to commit a robbery. Lee brandished a firearm at the owner of the store and Troy subsequently bound the victim with duct tape. The robbers then demanded the key to the jewelry counter from an employee of the store and stole jewelry worth more than $8,800, cash, a laptop computer and other items. On June 22, 2014, Troy and Lee robbed a pharmacy in Mechanicsville, Maryland. During the robbery Lee again brandished a gun and Troy bound the employee with duct tape. Troy and Lee stole cash and prescription bottles containing oxycodone, methadone, hydrocodone and endocet, valued at $8,897.
Judge Grimm has scheduled sentencing for Darrell Lee on March 27, 2015, at 9:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI and St. Mary’s County Sheriff’s Office for their work in the investigation and recognized the St. Mary’s County State’s Attorney’s Office for its assistance in the case. Mr. Rosenstein thanked Assistant United States Attorney Leah J. Bressack, who prosecuted the case.
Calais Man Pleads Guilty to Making False StatementsRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Clyde
Eldridge, 65, of Calais, Maine, pled guilty yesterday in U.S. District Court to making a false
statement to federal agents.According to court records, Eldridge owned C&E Feeds, a feed and pet store in
Calais. In 2010, the U.S. Environmental Protection Agency (EPA) and its Canadian counterpart,
Environment Canada, were investigating the illegal use of the pesticide cypermethrin. On
September 23, 2010, when asked by two EPA special agents to identify anyone to whom he had
sold cypermethrin and whether he had kept records of the sales, Eldridge said he sold different
amounts of cypermethrin to different people and that he did not keep track of the sales. The
investigation revealed, however, that Eldridge sold cypermethrin on 10-11 occasions to one
regional production manager employed by Kelly Cove Salmon Ltd., a subsidiary of Cooke
Aquaculture, and that on each occasion Eldridge made a note of the quantity picked up by the
manager. In April of 2013, Cooke Aquaculture pled guilty in New Brunswick Provincial Court
and paid a $490,000 fine for illegally using pesticides that killed hundreds of lobsters in waters
that were about a mile from Maine’s border.Eldridge faces up to 5 years in prison and a $250,000 fine. He will be sentenced after
completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by EPA’s Criminal Investigation Division and
Environment Canada.Butte County Couple Indicted for Drug Trafficking as Part of Silk Road 2.0 TakedownRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against David Schell, 54, and Teri Schell, 59, both of Durham, charging them with conspiracy to manufacture, distribute and possess with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced. David Schell is further charged with nine counts of distribution of marijuana.
According to court documents, law enforcement agents discovered an Internet Protocol (IP) address that was accessing “Silk Road 2.0,” an illicit network of websites that facilitated the trafficking of contraband, particularly controlled substances, until its worldwide dismantlement on November 6, 2014. On the same day the website was taken down, agents executed a search warrant at the Schells’ residence and found more than 450 marijuana plants and quantities of processed marijuana and marijuana wax, which is a highly potent marijuana-based substance made from extracting THC from marijuana leaves. Agents also found more than $12,000 in cash and packaging and shipping materials. According to court documents, David Schell mailed more than 100 packages overseas between January and September of this year, using a variety of different return addresses.
This case is the product of an investigation by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Special Assistant United States Attorney Josh F. Sigal is prosecuting the case.
The defendants are currently out of custody. They are scheduled to be arraigned on November 26, 2014, in Sacramento.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bucks County Bank Teller Charged in Fraud SchemeRead the Press Release
Tamyra Frazier, 30, of Willow Grove, PA, was charged today by indictment in a conspiracy to defraud the bank where she was employed through an identity theft scheme, announced United States Attorney Zane David Memeger. Frazier is charged with conspiracy, bank fraud and four counts of aggravated identity theft.
Between December 1, 2010 and December 28, 2010, Frazier, an employee of a Beneficial Bank branch, allegedly used her position to improperly access personal and bank account information of bank customers. According to the indictment, she provided that information to Co-Conspirator 1 who used it to create false photographic identifications in the victims’ names using the picture Timothy Garfield, charged separately. Garfield fraudulently acquired approximately $41,519.56 from Beneficial Bank using the phony identifications with checks and withdrawal slips in the names of the bank customers.
If convicted, Frazier faces a maximum possible statutory sentence of 43 years in prison, two years of which is mandatory, a fine of up to $1 million, full restitution, and a $600 special assessment.
The case was investigated by the U.S. Postal Inspection Service, the FBI, and the Secret Service. It is being prosecuted by Assistant United States Attorney K.T. Newton.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Brisco Sentenced for Aggravated Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Master Dalas Brisco, aka Paula D. Ike, age 57, from Hinesville, Georgia, was sentenced on November 20, 2014, by the Honorable C. Ashley Royal, Chief United States District Judge, in Macon, Georgia to serve four years in prison following his earlier plea of guilty to aggravated identity theft.The investigation in this case revealed that Mr. Brisco diverted the victim’s mail from California to his Post Office boxes in Georgia and took over various bank accounts, appropriating funds from them by presenting to the bank a signed fraudulent court order. In addition, Mr. Brisco presented a fraudulent letter, purported to be from the victim’s physician, to the Social Security Administration and made himself the representative payee for the victim’s Social Security benefits. Mr. Brisco admitted that the total intended loss to the victim was $36,320.90. The entire stipulated facts of the case can be found in the attached Plea Agreement.
US Attorney Moore noted that the prosecution of identity theft cases remains a high priority for his office and praised the good work of the Postal Inspector’s Office and the Social Security Administration Office of the Inspector General. He reiterated that by working together, we better serve the interests of the American people.
The case was investigated by the U.S. Postal Inspector’s Office and the Social Security Administration Office of Inspector General. Assistant U.S. Attorney Graham A. Thorpe handled the prosecution for the United States.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office (478/621-2603).
Bellingham Man Arraigned on Child Exploitation ChargesRead the Press Release
BOSTON – A Bellingham man was arraigned today on federal charges relating to the production of child pornography.
John E. Kalinowski, 26, appeared before Chief Magistrate Judge Jennifer C. Boal on a three count federal indictment charging him with production, distribution, and possession of child pornography. Kalinowski had been arrested on similar charges on Sept. 8, 2014, following the execution of a search warrant at his Bellingham home. He has been held in federal custody since September 8.
As alleged in an affidavit filed in the case, during the execution of the search warrant in September, law enforcement agents located and seized numerous digital devices including computers, hard drives, and other media storage devices. A preliminary review of the digital media revealed numerous images of children engaged in sexually explicit conduct, including images which revealed that Kalinowski was involved in the production of that material. Law enforcement officers also recovered numerous articles of children’s undergarments from Kalinowski’s home.The charging statutes provide maximum sentences ranging from 10 to 30 years in prison. The production charge provides a 15 year mandatory minimum term and the distribution charge provides a five year mandatory minimum term. Kalinowski also faces a potential lifetime of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Whitman Police Chief Scott D. Benton, and Bellingham Police Chief Gerard L. Daigle, Jr., made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crime Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Belle Chase Man Pleads Guilty to Methylone DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LYLE RUGGLES, age 23, of Belle Chase, pled guilty today to conspiracy to possess with intent to distribute methylone.
On June 26, 2014, RUGGLES was one of three defendants charged in a one-count indictment. According to the factual basis, on May 13, 2013,law enforcement was alerted that RUGGLES, who was wanted for outstanding attachments, would be driving his Chevrolet Silverado on Interstate 10 from Kenner to New Orleans between 11:30 a.m. and noon. Detectives stopped RUGGLES at Interstate 610 and Canal Boulevard, and a search incident to arrest revealed a bag containing 31 capsules of methylone, along with other drugs.
U.S. District Judge Mary Ann Vial Lemmon scheduled sentencing for February 5, 2015. RUGGLES faces 20 years imprisonment along with 3 years supervised release.
U.S. Attorney Polite praised the work of Homeland Security Investigations, the New Orleans Police Department, and the Jefferson Parish Sherriff’s Office in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Bangor Resident Sentenced to 7½ Years in Prison 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 Adam
Hathorn, 36, of Bangor was sentenced today in U.S. District Court by Chief Judge John A.
Woodcock, Jr. to 90 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.” Hathorn pled guilty to the charge on April 2, 2014.According to court records, between April and December 2011, the members of the
conspiracy illegally distributed large quantities of MDPV in Penobscot, Aroostook and Knox
counties. The defendant packaged and distributed MDPV to others in the Bangor area. He
collected payment for the drugs and used the money to purchase additional quantities from other
members of the conspiracy. Hathorn is one of eighteen defendants who pleaded guilty to
conspiring with Ryan Ellis to distribute the drug. Ellis previously pleaded guilty and awaits
sentencing.In imposing sentence, Chief Judge Woodcock noted that Hathorn was “involved in a very
bad business” and “caused a lot of harm” to his own community.
The case was investigated by the Maine Drug Enforcement Agency with assistance from
the U.S. Drug Enforcement Administration, and the Brewer and Bangor Police Departments.Ashland Man Sentenced to 15 Years in Prison for Child ExploitationRead the Press Release
Christopher D. Rarick, 35, of Ashland, was sentenced to more than 15 years in prison for exploiting children, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Rarick pleaded guilty earlier this year to two counts of child exploitation and one count of possession of child pornography. U.S. District Judge Benita Pearson sentenced him to 188 months in prison.
Rarick was stopped for a traffic violation by an Ashland police officer on Feb. 14, 2013. Rarick became agitated and noncompliant and was arrested. At one point during the encounter Rarick produced his cell phone and claimed to be recording the encounter with police. The cell phone was seized as evidence after the arrest, according to court documents.
Ashland police obtained a search warrant for the phone, seeking files related to the traffic stop. Upon searching the phone, police also found numerous pictures and videos of child pornography. Police obtained another search warrant and found images of juveniles engaged in various sex acts. Three of the videos were of what police described as an apparent rape by Rarick of a young girl who was passed out, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the FBI and the Ashland Police Department.
Albuquerque Woman Sentenced to Prison for Federal Wire Fraud and Identity Theft ConvictionRead the Press Release
ALBUQUERQUE – Lesa Howard, 52, of Albuquerque, N.M., was sentenced today for her conviction on federal wire fraud and aggravated identity theft charges. Howard will serve a prison sentence of 54 months to be followed by five years of supervised release. She also was ordered to pay $192,953.70 in restitution to Bank of America, the victim of her crimes.
Howard was arrested on Aug. 7, 2013, on a seven-count indictment charging her with two counts of wire fraud, one count of mail fraud, three counts of aggravated identity theft and one count of bank fraud. The indictment alleged that Howard committed these crimes in Bernalillo and Valencia Counties between July 2007 and July 2009.
According to the indictment, in July 2007, Howard unlawfully orchestrated the straw purchase of a house in Los Lunas, N.M., which she occupied for several years. When the mortgage holder began to foreclose on the straw purchaser in Aug. 2008, Howard unlawfully orchestrated the sale of the house to a second straw purchaser, who was living in the house with her, and unlawfully pocketed proceeds due to the original straw purchaser.
Howard pled guilty on May 13, 2014, to Counts 1 and 4 of the indictment charging her with wire fraud and aggravated identity theft, respectively. In her plea agreement, Howard admitted executing a scheme in Aug. 2008, to fraudulently induce a mortgage company to extend a $417,000 home loan for the purchase of a house in Los Lunas. She further admitted using the personal identifiers of another person, without authorization, to obtain the loan. Howard falsely represented that the homeowner had agreed to the sale of the house even though the homeowner had not agreed to the transaction. Although Howard represented that she would deliver the proceeds of the transaction to the homeowner, Howard arranged for $96,471 in proceeds to be wired into a bank account she controlled.
This case was investigated by Albuquerque office of Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Jeremy Pena.
Albuquerque Man Pleads Guilty to Illegal Possession of Firearm in Santa Ana PuebloRead the Press Release
ALBUQUERQUE – Tobias Gutierrez, 35, of Albuquerque, N.M., pled guilty this morning to being a felon in possession of a firearm and ammunition. Under the terms of his plea agreement, Gutierrez will be sentenced to a prison term within the range of 30 to 60 months followed by not more than three years of supervised release.
Gutierrez was arrested on May 21, 2014, on a criminal complaint charging him with unlawfully possessing a firearm and ammunition on April 1, 2014 on Santa Ana Pueblo in Sandoval County, N.M. At the time, Gutierrez was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses including burglary, battery and possession of a controlled substance.
During today’s proceedings, Gutierrez admitted entering the Santa Ana Star Casino while carrying a revolver and five cartridges of ammunition on April 1, 2014. Court filings reflect that while in the casino, Gutierrez took part in an altercation with a casino security officer who was attempting to disarm Gutierrez. Gutierrez then dropped the revolver and was seen on surveillance video getting into a truck in the casino parking lot. He was then pursued in the truck by Rio Rancho Police Department officers and subsequently crashed. The officers then found Gutierrez hiding in the area near the vehicle crash, and he was later identified by officers of the Santa Ana Tribal Police Department as the armed suspect from the casino’s surveillance video.Gutierrez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by Homeland Security Investigations, the Santa Ana Police Tribal Department, the Corrales Police Department and the Rio Rancho Police Department. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting this case.
"John" Who Purchased 14-Year-Old for Commercial Sex Sentenced to Two Years in Federal PrisonRead the Press Release
PORTLAND, Ore. — Senior U.S. District Court Judge Robert E. Jones yesterday sentenced Ben Allen Riggs, 64, of Oregon City, to serve 24 months in federal prison. Riggs is the first “john” to be prosecuted in the District of Oregon for violating federal sex trafficking laws.
In September 2012, co-defendant Laura Lambden drove a 14-year-old girl from Vancouver, Washington, to Riggs’ home in Oregon City, to perform commercial sex acts. Riggs paid the 14-year-old girl to perform oral sex. Throughout the case, Riggs has denied knowing that the girl was a minor, but the government alleged at the sentencing hearing that Riggs should have known from her appearance that she was a child. Riggs pleaded guilty to violating the Mann Act, which prohibits the interstate transportation of any person for the purpose of prostitution. When Riggs is released, he will be required to serve five years of supervised release, and will be required to register as a sex offender.
“Buyers beware: if you purchase sex with a minor, you will be held accountable,” stated U.S. Attorney S. Amanda Marshall. “We cannot eradicate child sex trafficking until we find a way to reduce demand, and we know that exposure to prosecution and possible imprisonment will cause buyers to think twice when a young woman shows up at their door.”
Riggs’ co-defendant, Laura Lambden, was sentenced last month to serve 48 months in federal prison.
This case stemmed from a coordinated investigation by members of the Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force, including the FBI and the Vancouver Police Department. The FBI’s Child Exploitation Task Force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims. The case was prosecuted by Assistant U.S. Attorney Stacie Beckerman.
Wednesday 19 November 2014
Xplor Energy Pleads Guilty to Felony Clean Water Act ViolationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that XPLOR Energy SPV-1, Inc. (“XPLOR”), an Oklahoma corporation residing in Southlake, Texas, pled guilty today to a one-count bill of information which charged the company with knowingly violating the Clean Water Act, Title 33, United States Code, Section 1319(c)(2)(A). These charges concern XPLOR’s oil and gas production activities in the Breton Sound Area of the Gulf of Mexico. As part of the guilty plea, the company agreed to pay a total monetary penalty of $3.1 million and serve a three-year term of probation. If accepted by the Court, the $3.1 million monetary penalty will be divided as follows: $2.5 million to the United States Treasury, and $600,000 to Louisiana Department of Environmental Quality Trust Fund.
According to the court documents, from on or about November 24, 1997 until November 18, 2011, XPLOR operated the MP 35 offshore facility (“MP 35 Platform”). XPLOR operated the MP 35 Platform for the purpose of extracting oil and natural gas.
As part of the oil and gas production, separation and processing, XPLOR was tasked with disposing of the pollutant known as “produced water” or “brine” which is produced with the extracted oil and natural gas. The MP 35 Platform was designed to dispose of this pollutant by forcing the produced water, under pump generated pressure, into disposal/injection wells located in Gulf of Mexico waters near the MP 35 Platform.
In or near November, 2011, XPLOR transferred ownership and operation to another corporation. The platform’s new owner quickly discovered the platform was continuously discharging produced water containing oil and other harmful substances into the waters of the United States. The new owner immediately contacted regulatory authorities to report the discharge.
The ensuing investigation revealed that XPLOR had knowingly discharged produced water containing oil into waters of the United States without any permit from faulty injection lines/pipes leading from the platform to the disposal wells used to store the produced water containing oil, and from produced water disposal wells which had insufficient capacity to hold the produced water. Despite knowing of this consistent discharge from the injection lines and the insufficient capacity of their disposal wells, XPLOR failed to adequately repair these faulty injection lines and disposal wells. XPLOR’s intentional failure to make these repairs resulted in the repeated discharge of produced water containing oil into the waters of the United States from in or near October, 2009, and continuing through to November 18, 2011. XPLOR’s actions resulted in a total monetary savings or gain to them in the amount of approximately $1,550,000.
“Our federal and state law enforcement partners are committed to protecting our state's environment,” stated U.S.Attorney Kenneth Polite. “Our citizens simply demand that businesses not illegally pollute the waterways that sit at the center of our culture and economy.”
“We have a responsibility to ensure that Louisiana’s waterways are protected from harmful and illegal industrial discharges,” stated Ivan Viking, Special Agent in Charge of EPA’s Criminal Enforcement Program in Louisiana. “This case will make a real difference in protecting public health and conserving the environment. The community service payment is especially impressive, bolstering the hard work that state, local and federal partners have invested to restore the Gulf of Mexico.”
“Knowingly conducting unpermitted discharges of produced water from oil and gas production platforms is a crime,” said Peggy Hatch, Secretary of the Louisiana Department of Environmental Quality. “DEQ is proud of the collaborative work of our federal and state investigators to halt these illegal practices and bring the perpetrators to justice, and will continue to enforce state and federal laws that protect our environment.”
U.S. District Judge Sarah S. Vance set formal sentencing for March 4, 2015.
U.S. Attorney Polite praised the work of the Criminal Investigation Division of the United States Environmental Protection Agency (“EPA-CID”) and the Criminal Investigation Division of the Louisiana Department of Environmental Quality (“DEQ-CID”). The case is being prosecuted by Assistant United States Attorney Matt Coman.
XS Platinum and Five Corporate Officials Indicted for Illegal Discharges from the Platinum Creek Mine and for False Statements to Federal OfficialsRead the Press Release
XS Platinum, Inc. and five of its officers and employess were indicted by a federal grand jury in Anchorage today for five felony violations, including conspiracy to violate the Clean Water Act and for submitting material false statements, announced Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division of the U.S. Department of Justice, and Karen L. Loeffler, U.S. Attorney for the District of Alaska.
The indictment charges XS Platinum, Inc. (XSP), a Delaware corporation, and five of its officers and employees, Dr. Bruce Butcher, age 59, and Mark Balfour, age 62 (both Australian citizens), James Slade, age 57 (a Canadian citizen), and Robert Pate, age 62 and James Staeheli, age 43 (both U.S. citizens residing in Washington state) with conspiracy to violate the Clean Water Act (CWA) during the defendants’ operation of the Platinum Creek Mine on the Salmon River in Western Alaska. In addition, the indictment charges XSP, Butcher, Balfour, Slade, and Pate with knowingly violating the terms of XSP’s CWA permit in 2010; and XSP, Butcher, Balfour, Slade, and Staeheli with knowingly violating the terms of XSP’s CWA permit in 2011. The indictment also charges XSP, Butcher, Balfour, Slade and Pate with submitting a false statement in violation of the CWA. Finally, the indictment charges XSP and Balfour with submitting a separate false statement.
According to the indictment, XSP held 159 placer mining claims and 36 hard-rock claims totaling more than 4,000 acres at the Platinum Creek Mine, which was situated along the Salmon River and its tributaries. The mine contains placer deposits of platinum metal, along with smaller amounts of gold and palladium. All but 21 of the claims were on land managed by the BLM, with the remaining (undeveloped) claims lying within the Togiak National Wildlife Refuge. The Salmon River is an anadromous fish stream that is important for the spawning of all five species of Pacific salmon (chinook, chum, coho, pink, and sockeye), and the rearing of coho and sockeye salmon. After flowing through BLM land, the Salmon River crosses the Togiak National Wildlife Refuge before entering the Pacific Ocean at Kuskokwim Bay.
The CWA prohibits discharges of industrial wastewaters from mining operations in violation of CWA permits which govern those discharges. According to the indictment, beginning in 2010 and continuing through 2011, XSP and the individual defendants knowingly discharged industrial wastewaters from XSP’s mechanical placer mining operation at the Platinum Creek Mine into the adjacent Salmon River in violation of the terms of XSP’s CWA General Permit. According to the indictment, XSP told federal regulators in its mining and CWA permit applications that the operation of the mine would recycle all of its wastewater and result in “zero discharge” of mine wastewater to the Salmon River. The indictment alleges that XSP and the individual defendants conspired to violate the CWA by concealing the 2010 and 2011 mine wastewater discharge violations from federal officials, and submitting material false statements to federal agencies. The indictment further alleges that the industrial wastewaters discharged from XSP’s operation of the Platinum Creek Mine included large amounts of sediment, turbidity, and toxic metals. It is further alleged that these discharges exceeded the CWA General Permit limits for those pollutants and that the defendants failed to report the violations as they were required. According to the indictment, XSP and its corporate officers submitted an annual report in 2011 to federal and state agencies which indicated that the mine had “zero discharge” during the 2010 mining season, when XSP’s own monitoring data showed that it had numerous discharges to the Salmon River.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation is being conducted by the U.S. Department of Interior Bureau of Land Management Office of Law Enforcement and Security and the U.S. Environmental Protection Agency Criminal Investigation Division. The case is being prosecuted by First Assistant U.S. Attorney Kevin Feldis of the U.S. Attorney’s Office for the District of Alaska, Trial Attorney Todd S. Mikolop of the U.S. Justice Department’s Environmental Crimes Section, and U.S. Environmental Protection Agency Regional Criminal Enforcement Counsel Dean Ingemanson.
Woodstock, Vermont’s Clover Gift Shop and Woodstock Gallery Take Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that Woodstock Gallery and Clover Gift Shop, both located in Woodstock, Vermont, have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of Woodstock Gallery and Clover Gift Shop.
An onsite survey of Woodstock Gallery and Clover Gift Shop performed by United States Department of Justice architects revealed ADA compliance issues related to the shops’ entrances. Woodstock Gallery and Clover Gift Shop will be remedying ADA compliance issues by February 15, 2015 by constructing a ramp and improving the shops’ rear entrance.
The owners of Woodstock Gallery and Clover Gift Shop recognized the obligation to address the issues identified in the onsite survey. In addition, the owner of the building housing these businesses took a leadership role ensuring that the necessary improvements will be made. All of these individuals are to be commended for their cooperation with the Office of the United States Attorney for the District of Vermont.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa and Karen Richards of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.
Western District of Virginia U.S. Attorney's Office Collects $4,261,639 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
ROANOKE, VIRGINIA – U.S. Attorney Timothy J. Heaphy announced today that the Western District of Virginia collected $4,261,639 in criminal and civil actions in Fiscal Year 2014. Of this amount, $3,289,598 was collected in criminal actions and $972,041 was collected in civil actions.
Additionally, the Western District of Virginia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,823,978 in cases pursued jointly with these offices, all of this money was collected in civil actions.
Additionally, the U.S. Attorney’s Office for the Western District of Virginia, working with partner agencies and divisions, collected $30,689,223 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced on November 19, 2014 that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending September 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budgets for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“The lawyers and staff in the Western District of Virginia have established a long, successful track record of recovering funds for restitution and forfeiting assets obtained or used by criminals,” United States Attorney Timothy J. Heaphy said today. “We may be a small District, but our slingshot is lethal. We will continue to do all we can to deprive criminals of their ill-gotten gains and recover assets for crime victims.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Western District of Texas U.S. Attorney's Office Collected over $20 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
United States Attorney Robert Pitman announced today that the Western District of Texas (WDTX) collected $20,238,152 in criminal and civil actions in Fiscal Year 2014. Of this amount, $8,945,457.88 was collected in criminal actions and $11,292,694.70 was collected in civil actions.
Additionally, the Western District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $12,748,758.80 in civil actions pursued jointly with these offices.
“While convictions and prison terms get a lot of attention, these collections demonstrate that we vigorously pursue justice on behalf of victims and the citizens of the Western District of Texas. These collection figures, together with the asset forfeiture recoveries, show that we will make strong efforts to separate ill-gotten gains from those who violate criminal and civil laws, and hold them fully accountable,” stated United States Attorney Robert Pitman.
In San Antonio, the WDTX collected $450,000 restitution in December from Thomas Shriver. Shriver was sentenced to two years probation and ordered to pay restitution for his role in a Health Care fraud scheme.In July, the WDTX collected $311,000.00 towards defendant Sherri Lynn Brewer’s Court ordered restitution. On August 2, 2013, Brewer was sentenced to serve 15 years of probation and to pay $6,445,370 in restitution for contract procurement fraud against the United States Air Force.
In December, the WDTX collected $178,166.25 from Jimmie Fulton Gibson. Gibson was sentenced to 15 years incarceration followed by a lifetime of supervised release for receipt of child pornography. At sentencing, the Court ordered that Gibson pay a fine for his cost of incarceration at $2,000.00 per month from his military retirement.
In El Paso, the WDTX collected $223,413.80 restitution in January from Albert G. Torres who was convicted of wire fraud and deprivation of honest services and sentenced to 18 months in federal prison for defrauding the City of El Paso with respect to contracts for repairs and service to city garbage trucks.
In Midland, the WDTX collected $100,000 towards restitution in August from Jose Luis Suarez. In June, Suarez was sentenced to 21 months imprisonment and ordered to pay approximately $229,000 restitution for subscribing false tax returns.
In November 2013, the WDTX collected $84,000 from Tammie Stephens following her conviction for wire fraud. At sentencing, the Court ordered Stephens to pay $84,000 restitution for embezzling from her employer, Big Lake Service.
In April, the WDTX collected $43,872.14 towards restitution from Brantten Rhodes. Last November, Brantten was sentenced to two years in federal prison and ordered to pay $235,300 for stealing copper wire from oilfield drilling rigs.
In Austin, the WDTX collected $61,000 towards restitution in March from Christina Newsome. On April 15, 2013, Newsome was sentenced to five years probation and ordered to pay $240,132.32 in restitution for a Health Care fraud and money laundering scheme.
In August, the WDTX collected $17,924.61 towards restitution from Manuel Hernandez for defrauding FEMA. Last year, Hernandez was sentenced to five years probation and ordered to pay $30,000 restitution and a $3,000 fine for making a false claim to FEMA that his primary residence was destroyed as a result of the Labor Day 2011 wildfires in Bastrop County.
In Del Rio, the WDTX collected $61,000 restitution in July from John Andrew Cardenas who was convicted of aiding and abetting the preparation and presentation of a false and fraudulent federal tax return.
In Waco, the WDTX collected $20,157.32 towards restitution last month from Jamal and Magdalena Akhter. In August 2013, the Akhters were sentenced to 21 months and 18 months in federal prison, respectively, and ordered to pay $295,737.64 in restitution to the USDA following wire fraud convictions for fraudulently handling SNAP benefits.
In Pecos/Alpine, the WDTX collected $8,800 from Billy Wayne King this year. In August 2010, King was sentenced to 18 months imprisonment and ordered to pay a $10,000 fine for possession of marijuana with intent to distribute. The $8,800 was collected in April, June and October thereby paying off King’s debt in full.
Those cases were reflected in today’s announcement by Attorney General Eric Holder that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Western District of Texas, working with partner agencies and divisions, collected $10,925,262 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.Wernersville Resident Charged with Health Care FraudRead the Press Release
The United States Attorney for the Middle District of Pennsylvania, announced today that a criminal charge of health care fraud has been filed against Edward Evans of Wernersville, PA.
According to United States Attorney, Peter Smith, Evans, age 50, is charged in a one-count felony information with health care fraud based on the submission of false claims to the Pennsylvania Attendant Care Medicaid Waiver Program. The information alleges Evans’ billed for and received reimbursement for attendant care services which were never performed.
The investigation which is ongoing was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Pennsylvania Attorney General’s Medicaid Fraud Control Section. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is ten years imprisonment, and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.Washington Gas Energy Systems Agrees to Pay $2.5 Million in Fines and Penalties for Conspiring to Obtain Federal ContractsRead the Press Release
Washington Gas Energy Systems (WGESystems) has agreed to pay more than $2.5 million in fines and monetary penalties for conspiring to commit fraud on the United States by illegally obtaining contracts that were meant for small, disadvantaged businesses.
The court agreement was announced today by William J. Baer, Assistant Attorney General of the Antitrust Division; Principal Assistant U.S. Attorney Vincent H. Cohen Jr. of the U.S. Attorney’s Office for the District of Columbia; Robert C. Erickson, Acting Inspector General of the U.S. General Services Administration (GSA); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA), and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
WGESystems, based in Virginia, is a wholly owned subsidiary of WGL Holdings Inc. (WGL). WGL is the parent company for all of the corporations within the Washington Gas family. WGESystems plays no direct role in the delivery of natural gas, and it is not a utility. It is a design-build firm that specializes in providing energy efficiency and sustainability solutions to clients.
A criminal information was filed today in the U.S. District Court for the District of Columbia charging WGESystems with one count of knowingly and willfully conspiring to commit major fraud on the United States. WGESystems waived the requirement of being charged by way of federal indictment, agreed to the filing of the information, and has accepted responsibility for its criminal conduct and that of its employees.
In addition, as part of a deferred prosecution agreement reached with the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division, WGESystems agreed to pay a fine of $1,560,000 and a monetary penalty of $1,027,261 within five days of the approval of the agreement by the court.
According to court documents filed today, WGESystems conspired with a company that was eligible to receive federal government contracts set aside for small, disadvantaged businesses with the understanding that the business would illegally subcontract all of the work on the projects to WGESystems. In this way, WGESystems was able to capture a total of eight contracts worth $17,711,405 that should have gone to an eligible company. These contracts, awarded in 2010, were focused on making federal buildings in the Washington, D.C., area more energy efficient.
Under the illegal agreement, the company that was awarded these government contracts was allowed to keep 5.8 percent of the value of the contracts for allowing WGESystems to use the company’s small business status to win these contracts.
“Conspiracies to violate federal procurement laws will not be tolerated,” said Assistant Attorney General Bill Baer for the Antitrust Division. “Taxpayers deserve to have contracting processes that are fair and competitive, and fully comply with applicable laws and regulations.”
“Time and time again, we have seen government contractors abuse and exploit programs designed to help minority and socially disadvantaged small businesses,” said Principal Assistant U.S. Attorney Cohen. “This Washington Gas subsidiary obtained millions of dollars in federal contracts by using a small business that had no ability to actually complete the contract as a front company. Even though the subsidiary lost money on these contracts, it is required to pay $2.5 million in fines and penalties under this agreement. This resolution should cause other contractors to think twice about playing fast and loose with federal contracting rules.”
“Cases like this are important for us to maintain the integrity of the federal contracting process,” said GSA Acting Inspector General Erickson. “Companies cannot cheat to win federal contracts and expect to get away with their ill-gotten gains.”
“SBA’s 8(a) Business Development Program assists eligible socially and economically disadvantaged individuals in developing and growing their businesses,” said SBA Inspector General Gustafson. “Large businesses that fraudulently seek to gain access to contracts set aside for small businesses erode the public’s trust in this important program. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their professionalism and commitment to justice in this investigation.”
“Federal government contracting laws are in place to create a level playing field for small disadvantaged businesses whose work supports our country's diverse financial infrastructure,” said Assistant Director in Charge McCabe. “The FBI with our law enforcement partners will investigate those companies who fraudulently abuse federal contracting laws with the purpose of increasing their company's bottom line.”
According to the court documents, until 2010, GSA had an area-wide contract with WGESystems. This contract enabled GSA, without competition, to enter into contracts with WGESystems so that WGESystems could provide energy management services for federal buildings.
However, starting in 2010, the federal government changed its practices. The American Reinvestment and Recovery Act appropriated funds to make buildings in the District of Columbia and the surrounding area more energy efficient. These funds were to be awarded through the 8(a) program, which is administered by the SBA and which was created to help small, disadvantaged businesses access the federal procurement market.
To qualify for the 8(a) program, a business must be at least 51 percent-owned and controlled by a U.S. citizen (or citizens) of good character who meet the SBA’s definition of socially and economically disadvantaged. The firm also must be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits on subcontracting work from 8(a) set-aside contracts. The SBA regulations require, among other things, the 8(a) concern to agree that on construction contracts it “will perform at least 15 percent of the cost of the contract with its own employees (not including the costs of materials).”
As a result of this change, WGESystems – which was not certified to participate in the 8(a) program – faced the prospect of losing millions of dollars in revenue.
WGESystems, along with an 8(a) company it used to obtain these contracts, and others, engaged in and executed a scheme to defraud the SBA and GSA by, among other things: concealing that WGESystems, which was not eligible for the aforementioned SBA contracting preferences, exercised impermissible control over the 8(a) company’s bidding for and performance on GSA contracts; and misrepresenting that the 8(a) company was in compliance with SBA regulations pertaining to work on these contracts, including that the company’s employees had performed the required percentage of work on these contracts. Through these unlawful efforts, WGESystems and the 8(a) company with which it conspired obtained, at least, approximately $17,711,405 in U.S. government contracts related to work at eight different federal buildings. When these contracts were awarded, the 8(a) company’s registered place of business was the president of the company’s home, and the company had no employees who could provide design-build or contracting services.
WGESystems assisted the 8(a) company with identifying a project manager for the work at the eight buildings who was nominally an employee of the 8(a) company, but who, in actuality, took direction from WGESystems employees. For much of the relevant period, this project manager was the only employee of the 8(a) company performing work for any of the eight projects.
Under the agreement with WGESystems, the 8(a) company was entitled to 5.8 percent of the $17,711,405 total value of the contracts, which equals $1,027,261. To date, with all but one of the eight contracts completed or suspended, WGESystems has lost approximately $1,122,581 on the projects. WGESystems initially anticipated a profit margin that would have equaled about $1,560,000.
Since being informed of this investigation by the Justice Department, WGESystems has taken steps to enhance and optimize its internal controls, policies and procedures.
In light of the company’s remedial actions to date and its willingness to acknowledge responsibility for its actions, the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division will recommend the dismissal of the Information in two years, provided WGESystems fully cooperates with, and abides by, the terms of the deferred prosecution agreement.
This investigation was conducted by the Inspector General’s Offices of the U.S. General Services Administration and the Small Business Administration and the FBI’s Washington Field Office. The prosecution is being handled by Assistant U.S. Attorney Matt Graves of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, and Assistant Chief Craig Y. Lee and Trial Attorney Diana Kane, both of the Antitrust Division’s Washington Criminal I Section.
Washington Gas Statement of Offense
Washington Gas DPA
Washington Gas Information
Washington Gas Energy Systems Agrees to Pay $2.5 Million in Fines and Penalties for Conspiring to Illegally Obtain Federal ContractsScheme Involved Energy-Related Services at Government BuildingsRead the Press Release
WASHINGTON – Washington Gas Energy Systems (WGESystems) has agreed to pay more than $2.5 million in fines and monetary penalties for conspiring to commit fraud on the United States by illegally obtaining contracts that were meant for small, disadvantaged businesses.
The court agreement was announced today by Principal Assistant U.S. Attorney Vincent H. Cohen, Jr., of the U.S. Attorney’s Office for the District of Columbia; William J. Baer, Assistant Attorney General of the Antitrust Division; Robert C. Erickson, Acting Inspector General of the U.S. General Services Administration (GSA); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
WGESystems, based in Virginia, is a wholly owned subsidiary of WGL Holdings, Inc. (WGL). WGL is the parent company for all of the corporations within the Washington Gas family. WGESystems plays no direct role in the delivery of natural gas, and it is not a utility. It is a design-build firm that specializes in providing energy efficiency and sustainability solutions to clients.
A Criminal Information was filed today in the U.S. District Court for the District of Columbia charging WGESystems with one count of knowingly and willfully conspiring to commit major fraud on the United States. WGESystems waived the requirement of being charged by way of federal indictment, agreed to the filing of the Information, and has accepted responsibility for its criminal conduct and that of its employees.
In addition, as part of a deferred prosecution agreement reached with the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division, WGESystems agreed to pay a fine of $1,560,000 and a monetary penalty of $1,027,261 within five days of the approval of the agreement by the Court.
According to court documents filed today, WGESystems conspired with a company that was eligible to receive federal government contracts set aside for small, disadvantaged businesses with the understanding that the business would, illegally, subcontract all of the work on the projects to WGESystems. In this way, WGESystems was able to capture a total of eight contracts worth $17,711,405 that should have gone to an eligible company. These contracts, awarded in 2010, were focused on making federal buildings in the Washington, D.C., area more energy efficient.
Under the illegal agreement, the company that was awarded these government contracts was allowed to keep 5.8 percent of the value of the contracts for allowing WGESystems to use the company’s small business status to win these contracts.
**
“Time and time again, we have seen government contractors abuse and exploit programs designed to help minority and socially disadvantaged small businesses,” said Principal Assistant U.S. Attorney Cohen. “This Washington Gas subsidiary obtained millions of dollars in federal contracts by using a small business that had no ability to actually complete the contract as a front company. Even though the subsidiary lost money on these contracts, it is required to pay $2.5 million in fines and penalties under this agreement. This resolution should cause other contractors to think twice about playing fast and loose with federal contracting rules.”
“Conspiracies to violate federal procurement laws will not be tolerated,” said Assistant Attorney General for the Antitrust Division Baer. “Taxpayers deserve to have contracting processes that are fair and competitive, and fully comply with applicable laws and regulations.”
“Cases like this are important for us to maintain the integrity of the federal contracting process,” said GSA Acting Inspector General Erickson. “Companies cannot cheat to win federal contracts and expect to get away with their ill-gotten gains.”
“SBA’s 8(a) Business Development Program assists eligible socially and economically disadvantaged individuals in developing and growing their businesses,” said SBA Inspector General Gustafson. “Large businesses that fraudulently seek to gain access to contracts set aside for small businesses erode the public’s trust in this important program. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their professionalism and commitment to justice in this investigation.”
“Federal government contracting laws are in place to create a level playing field for small disadvantaged businesses whose work supports our country's diverse financial infrastructure,” said Assistant Director in Charge McCabe. “The FBI with our law enforcement partners will investigate those companies who fraudulently abuse federal contracting laws with the purpose of increasing their company's bottom line.”
According to the court documents, until 2010, GSA had an areawide contract with WGESystems. This contract enabled GSA, without competition, to enter into contracts with WGESystems so that WGESystems could provide energy management services for federal buildings.
However, starting in 2010, the federal government changed its practices. The American Reinvestment and Recovery Act appropriated funds to make buildings in the District of Columbia and the surrounding area more energy efficient. These funds were to be awarded through the 8(a) program, which is administered by the SBA and which was created to help small, disadvantaged businesses access the federal procurement market.
To qualify for the 8(a) program, a business must be at least 51 percent-owned and controlled by a U.S. citizen (or citizens) of good character who meet the SBA’s definition of socially and economically disadvantaged. The firm also must be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits on subcontracting work from 8(a) set-aside contracts. The SBA regulations require, among other things, the 8(a) concern to agree that on construction contracts it “will perform at least 15 percent of the cost of the contract with its own employees (not including the costs of materials).”
As a result of this change, WGESystems – which was not certified to participate in the 8(a) program – faced the prospect of losing millions of dollars in revenue.
WGESystems, along with an 8(a) company it used to obtain these contracts, and others, engaged in and executed a scheme to defraud the SBA and GSA by, among other things: concealing that WGESystems, which was not eligible for the aforementioned SBA contracting preferences, exercised impermissible control over the 8(a) company’s bidding for and performance on GSA contracts; and misrepresenting that the 8(a) company was in compliance with SBA regulations pertaining to work on these contracts, including that the company’s employees had performed the required percentage of work on these contracts. Through these unlawful efforts, WGESystems and the 8(a) company with which it conspired obtained, at least, approximately $17,711,405 in U.S. government contracts related to work at eight different federal buildings. When these contracts were awarded, the 8(a) company’s registered place of business was the president of the company’s home, and the company had no employees who could provide design-build or contracting services.
WGESystems assisted the 8(a) company with identifying a project manager for the work at the eight buildings who was nominally an employee of the 8(a) company, but who, in actuality, took direction from WGESystems employees. For much of the relevant period, this project manager was the only employee of the 8(a) company performing work for any of the eight projects.
Under the agreement with WGESystems the 8(a) company was entitled to 5.8 percent of the $17,711,405 total value of the contracts, which equals $1,027,261. To date, with all but one of the eight contracts completed or suspended, WGESystems has lost approximately $1,122,581 on the projects. WGESystems initially anticipated a profit margin that would have equaled about $1,560,000.
Since being informed of this investigation by the Justice Department, WGESystems has taken steps to enhance and optimize its internal controls, policies, and procedures.
In light of the company’s remedial actions to date and its willingness to acknowledge responsibility for its actions, the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division will recommend the dismissal of the Information in two years, provided WGESystems fully cooperates with, and abides by, the terms of the deferred prosecution agreement.
This investigation was conducted by the Inspector General’s Offices of the U.S. General Services Administration and the Small Business Administration and the FBI’s Washington Field Office. The prosecution is being handled by Assistant U.S. Attorney Matt Graves of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, and Assistant Chief Craig Y. Lee and Trial Attorney Diana Kane, both of the Antitrust Division.
14-259Utah U. S. Attorney’s Office Collects $4,335,105.35 Through Civil and Criminal Actions in Fiscal Year 2014Read the Press Release
SALT LAKE CITY - Acting U.S. Attorney Carlie Christensen announced Wednesday that the District of Utah collected $4,335,105.35 in Fiscal Year (FY) 2014 related to criminal and civil actions in the fiscal year ending Sept. 30, 2014. Of this amount, $1,593,778.34 was collected in criminal actions and $2,741,327.01 was collected in civil actions. The U.S. Attorney’s Office is responsible for enforcing and collecting civil and criminal debts owed to the United States and restitution owed to federal crime victims. The District of Utah also worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional $3,432.187.83 in cases pursued jointly with these offices.
One of the largest collections in Utah this year came as a part of a civil settlement with Okland Construction Co., who agreed to pay the government $928,000 to resolve allegations that it made false statements and submitted false claims under the Small Business Administration’s Section 8(a) Program for Small and Disadvantaged Businesses. Okland Construction, a large construction company, entered into a mentor-protégé agreement with Saiz Construction, a participant in the 8(a) program. The government alleged that Okland had not formed a qualifying joint venture with Saiz, and as a result, had fraudulently obtained access to contracts set aside for small businesses.
Additionally, the U.S. Attorney’s Office in Utah, working with partner agencies and divisions, collected $11,871,702 in asset forfeiture actions in FY 2014, which is used to restore funds to crime victims and for a variety of law enforcement purposes. The office also paid $1,650,252 in forfeited funds to crime victims for restitution and shared $566,684 with local law enforcement agencies who participated in the prosecution of federal cases. Asset forfeiture is an effective deterrent to crime and is used to disrupt and dismantle criminal organizations that attempt to profit from their unlawful activity and to restore property to crime victims.
“Financial recoveries are a critical part of the Department’s mission to hold those who violate the law accountable for the injury they cause to crime victims and the general public. This office takes that responsibility very seriously and will continue to aggressively pursue compensation from those who commit crimes and civil wrongs to ensure that the wrongdoers – not the public – bear the costs of unlawful conduct here in Utah,” Acting U.S. Attorney Christensen said today.
Attorney General Eric Holder announced on Wednesday that the Justice Department collected $24.7 billion in civil and criminal actions in FY 2014. This figure represents nearly eight-and- a-half times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. The amount is more than three times the $8 billion collected in FY 2013.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And it shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
U.S. Attorneys’ offices, along with Department of Justice litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or a financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections come from affirmative civil enforcements cases, in which the United States recovered government money lost to fraud, fire recovery, or other misconduct or collected fines imposed on individuals or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts are collected on behalf of federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
The largest single source of collections came from civil penalties paid by financial institutions to resolve financial fraud claims stemming from the 2008 financial crisis, including significant amounts paid by JPMorgan and Citigroup Inc, to resolve federal and state civil claims related to the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS). Both resolutions include record penalties under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and in addition, also provide billions of dollars of relief to struggling homeowners.
Used Car Salesman Pleads Guilty to Tax EvasionRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of JAMES FRANCIS VOLIN, 64, of Inver Grove Heights, for hiding income from used car sales from the Internal Revenue Service. VOLIN pleaded guilty to an Information filed on November 18, 2014, charging him with Income Tax Evasion. He pleaded guilty before Chief Judge Michael J. Davis in U.S. District Court in Minneapolis. VOLIN will be sentenced at a future date.
According to his guilty plea and documents filed in court, in 2008 VOLIN agreed to pay nearly $100,000 in outstanding taxes to the IRS. VOLIN still owed the taxes in 2012 and 2013 when he was operating an unlicensed and illegal used car dealership which generated substantial income in cash. Instead of paying the back taxes as agreed, VOLIN hid the income. VOLIN admitted that he did not report the cash income or file tax returns and that he put money into cashier’s checks and used bank accounts opened under another’s name and social security number to avoid detection.
VOLIN was originally indicted earlier this year for structuring bank deposits. “Structuring” is a way of depositing money into bank accounts in amounts less than those required by law to be reported by the financial institution to the Financial Crimes Enforcement Network (FinCEN). According to that indictment, between April 2012 and April 2013, VOLIN made structured deposits totaling more than $200,000, in amounts insufficient to trigger mandatory reporting to the government.
This case is the result of an investigation by the Internal Revenue Service – Criminal Investigations and the Minnesota State Patrol Vehicle Crimes Unit.
The case is being prosecuted by Assistant United States Attorney Robert Lewis.
Defendant Information:
JAMES FRANCIS VOLIN, 64
Inver Grove Heights, MN
Convicted:
• Income Tax Evasion, 1 count###
United States Attorney Wigginton Announces Civil and Criminal Collections Amounting to Nearly $5.5 Million Dollars in Fiscal Year 2014Read the Press Release
Follow @SDILNewsUnited States Attorney Stephen R. Wigginton, Southern District of Illinois, announced today that the Southern District of Illinois collected $5,490,994.09 in criminal and civil actions in Fiscal Year 2014. Of this amount, $1,574,414.70 was collected in criminal actions and $3,916,579.39 was collected in civil actions.
Additionally, Southern District of Illinois worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $5,174,776.44 in cases pursued jointly with these offices. Of this amount, $8,746.63 was collected in criminal actions and $5,166,029.81was collected in civil actions.
Attorney General Eric Holder also announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws, in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse, and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
United States Attorney Wigginton noted, “As I have done for the last four years, I will continue to make crime pay the honest citizens of Southern Illinois. My office will not fail to collect monies due the United States. Whether you illegally take money with a gun or with a pen, I will see that you are punished and that your ill-gotten gains are returned to the treasury of the United States. As an example, I would highlight our case where we recovered $3,300,000.00 as part of the settlement in a qui tam case filed against Kmart Corporation. The case involved Kmart improperly issuing gift cards to customers who moved their Medicare and Medicaid prescriptions to Kmart from competing pharmacies contrary to federal medicare/medicaid re-imbursement regulations.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
Additionally, the United States Attorney’s Office for the Southern District of Illinois, working with partner agencies and divisions, collected $1,745,492.00 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
United States Attorney for Western District of Oklahoma Involved in Collecting over $36 Million in Fiscal Year 2014Read the Press Release
Oklahoma City, Oklahoma -- The United States Attorney’s Office for the Western District of Oklahoma was involved in collecting a total of $36,340,329.15 in civil and criminal cases and through asset forfeiture in Fiscal Year 2014, announced Sanford C. Coats, United States Attorney.
The Western District of Oklahoma collected $30,519,863.47 in criminal and civil actions handled by the district. Of this amount, $4,579,614.84 was collected in criminal actions and $25,940,248.63 was collected in civil actions.
The Western District also worked jointly with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $362,502.68 in civil cases pursued jointly with these offices.
Finally, the U.S. Attorney’s Office also worked with partner agencies and divisions to collect an additional $5,457,963.00 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
"Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people," said Attorney General Holder. "Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis."
"These results are due to the outstanding work done by the talented women and men in the U.S. Attorney’s Office, particularly in our Asset Recovery Unit," said Coats. "Our Office is clearly dedicated to recovering funds for the federal treasury and for victims of federal crime. We will continue to hold accountable those who seek to profit from fraud and other illegal activities."
Significant Cases in the Western District of Oklahoma
In May of 2014, the U.S. Attorney’s Office recovered $23,981,669.78 in the bankruptcy of Stelera Wireless, LLC, a rural internet broadband service provider in Texas, Colorado, Kansas and New Mexico. Stelera had received loans from the Rural Utilities Service of the U.S. Department of Agriculture to promote distance learning, telemedicine initiatives and rural broadband access. Stelera defaulted on its note and sought bankruptcy protection. During the bankruptcy case, the United States recovered the loan amounts owed after defeating arguments that the loan was not properly secured and that the debt should be reclassified and written down.
In January of 2014, Wildcat Concrete Services, Inc., a Kansas corporation, paid $372,750 to the North American Wetlands Conservation Fund as part of a non-prosecution agreement with the United States arising from the destruction of cliff swallow nests during a bridge repair project that were protected by the Migratory Bird Treaty Act.
In October of 2013, SSM Health Care of Oklahoma, Inc., which owns and operates St. Anthony Hospital in Oklahoma City, agreed to pay $475,000 to the United States to settle civil claims relating to SSM’s billing Medicare for inpatient services that should have been billed as outpatient services.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney’s Office Collects More Than $367 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
Tampa, FL - U.S. Attorney A. Lee Bentley, III announced today that the Middle District of Florida had its strongest financial year ever. In Fiscal Year 2014, which ended September 30th, the Office’s Civil, Criminal, and Asset Forfeiture Divisions collected over $367 million for taxpayers.
The Office’s Civil Division, led by Lacy R. Harwell, recovered $152,950,505 in affirmative civil fraud cases, most alleging health care fraud. In many of these cases, Middle District of Florida Assistant U.S. Attorneys worked closely with attorneys from the Department of Justice Civil Division. The total civil recovery amount was the result of settlements reached in the affirmative civil fraud cases set forth below, as well as an installment payment of approximately $20 million made as part of a settlement in an earlier case (United States ex rel. Hellein v. Wellcare Health Plans).
The Office’s Criminal Division, led by Rachelle DesVaux Bedke and Karen Gable, recovered another $19,705,136 in criminal cases, most of which was in the form of criminal fines, special assessments, and restitution. Providing restitution for the victims of crime is a top priority of the Middle District of Florida.
Finally, the Office’s Asset Forfeiture Division, led by Anita Cream, had its best year ever. Working with its partner agencies, the Middle District of Florida’s Asset Forfeiture Division collected more than $195 million in criminal and civil forfeitures. Depending on the type of case, forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund or the Department of Treasury’s Assets Forfeiture Fund. Almost all of the monies recovered through asset forfeiture in Fiscal Year 2014 will be used to restore funds to crime victims. In addition, approximately $3.5 million in forfeited funds was shared with state and local law enforcement agencies. The Middle District of Florida’s most significant asset forfeiture cases are detailed below.
“Recovering monies from convicted criminals and others who have defrauded the government is critical in enforcing our nation’s laws,” said U.S. Attorney A. Lee Bentley, III. “Working in partnership with our law enforcement partners, and other federal, state, and local agencies, our efforts ensure that criminals and others committing fraud are held fully accountable for their offenses. Through these coordinated efforts, we are able to help victims recover from their losses, wherever possible, and replenish public resources.”
U.S. Attorney Bentley further stated, “In Fiscal Year 2014, the budget for our Office was approximately $23 million. That means that for every dollar we spent, the Assistant U.S. Attorneys working here recovered about $16.”
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending September 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Middle District of Florida Affirmative Case Highlights
United States ex rel. Baklid-Kunz v. Halifax Hospital
This whistleblower case was filed under the False Claims Act by a management hospital employee who alleged that her hospital had implemented compensation agreements with its employee physicians that violated federal law. Specifically, the whistleblower contended that the hospital had created a staffing company to employ the majority of hospital employees, and had paid the staffing company an amount equal to the exact cost of the employees= salary and benefits. In addition to a base salary, physicians also received a bonus based upon a percentage of their billings and, in some instances, upon the hospital=s profits from particular departments. These compensation agreements allegedly violated the Stark Act. The whistleblower also alleged that the defendant’s neurosurgery practice group had performed medically unnecessary spine surgery procedures that were billed to Medicare, and also had upcoded its bills for patient admissions that should have been properly billed at a lower level of service. The USAO/MDFL intervened on the Stark Act claims and filed its own complaint to address those issues. The whistleblower pursued the medical necessity and upcoding claims on her own. The Court granted our motion for partial summary judgment on the Stark claims and set the case for trial in March 2014. On the morning trial was to commence, after months of difficult negotiations over the defendant’s claimed inability to pay, the government settled the Stark Act claims for $85 million. At the time it was announced, this was the largest civil settlement ever reached under that statute. With the government’s consent, the whistleblower subsequently settled the medical necessity and upcoding claims for $1 million.
United States ex rel. Fuentes et al.v. Genzyme Corp.
Genzyme Corp. manufactures a product known as Seprafilm, which is approved by the FDA to prevent adhesions from forming during surgeries. Two former Genzyme employees filed a complaint under the False Claims Act alleging that Genzyme had illegally promoted off label use of the product in unapproved slurry form. Shortly thereafter, a second case was filed in the MDFL by a third whistleblower, making virtually identical allegations against Genzyme. Parallel proceedings were opened in response to the complaints and the USAO/MDFL comprehensively investigated the prevalence of Genzyme’s sales practices at a number of hospitals around the country. The investigation corroborated the whistleblowers’ allegations, and we confronted the defendant with our findings. Settlement negotiations led to an agreement that resolved the civil claims in these cases for $22.8 million.
United States ex rel. Wells v. Baptist Health System, et al.
A former administrator of the Baptist Health hospital chain filed a complaint against the hospital under the False Claims Act, claiming that a neurologist employed by the hospital intentionally misdiagnosed his patients with various neurological disorders and then billed government healthcare programs for medically unnecessary services, tests, and treatments. In addition, she alleged that the defendant hospital chain did not return overpayments it had received as a result of the misdiagnoses, after discovering the neurologist’s scheme. The USAO/MDFL investigated these allegations thoroughly and corroborated them. Settlement discussions led to an agreement that resolved our civil claims against the hospital for $2.5 million, amounting to treble damages on the most egregious claims in question, and double damages on the rest. Our claims against the defendant neurologist, Dr. Sean Orr, remain pending.
United States ex rel. Stone v. Hospice of the Comforter
This case was filed by a former employee of the defendant hospice provider, who alleged that the hospice agency had submitted claims for reimbursement of hospice services rendered to patients that did not qualify for the services. To be reimbursed by Medicare, a hospice patient must suffer from a terminal condition that will result in death within six months of diagnosis. The whistleblower contended that the provider had offered hospice care to patients for periods far exceeding six months, often for years. After a lengthy investigation, the USAO/MDFL negotiated an agreement in principle with the defendant to resolve our claims for $3 million, which was approved by the Department of Justice. The whistleblower objected to the reasonableness of the settlement, but the Court overruled the objection and upheld the agreement after an evidentiary hearing.
United States ex rel. Valenti v. Tai Shan Golden Gain Aluminum Products, Inc.
This case was filed by the CEO of an exporter of aluminum extrusion products, who alleged that a number of individuals and entities had avoided paying antidumping and countervailing duties owed on aluminum extrusions by misrepresenting the country of origin for the products as Malaysia, rather than the People’s Republic of China. The USAO/MDFL investigation into these allegations confirmed them as to five of the defendants (Robert Wingfield, Northeastern Aluminum Corporation, William Ma, Southeastern Aluminum Products, Basco Manufacturing Company, Waterfall Group, LLC, and C.R. Laurence Co.), as well as revealed other deceptive practices. The USAO/MDFL intervened and filed our own complaint against these five defendants, and declined to pursue the claims against the rest of the named defendants. Settlement discussions were eventually opened with one defendant, Basco Manufacturing Company, which led to a resolution that will pay the government $1.1 million on the claims against this exporter. This represents a recovery of double damages for the United States. The litigation over our claims against the other four defendants remains pending.
United States ex rel. Thomas v. Sarasota Pain Associates, et al.
Two former employees of a Sarasota pain management clinic filed a whistleblower complaint that alleged the clinic had systematically billed Medicare for services not rendered, and had sought reimbursement for other procedures as though they were performed by a physician, when in fact they had been performed by a registered nurse. The whistleblowers further alleged that the defendant had upcoded bills for reimbursement of evaluation and management services by several levels of care. After investigating these claims, the USAO/MDFL intervened in the case and actively litigated it against the clinic and its proprietor, Dr. Steven Chun. The case was settled at mediation for $750,000, which amounted to a recovery of roughly double the Government’s claimed single damages.
United States ex rel. Lovell v. Sharma
This case was filed by a former office manager of a local vascular surgeon, Dr. Ravi Sharma. The whistleblower alleged that she had been instructed to perform injection procedures on patients without a supervising doctor present, even though she had no medical training. She also alleged that the defendant billed Medicare for reimbursement of these injections as though he had performed them. In addition, she claimed that the defendant had submitted false claims for services rendered at his weight loss center. The whistleblower stated that she had exclusively seen patients at the center, and that the defendant had never gone into the facility, but that he nonetheless had billed her sessions with patients as office visits with a physician. The USAO/MDFL investigated these claims and corroborated them, ultimately negotiating a settlement that paid the government $400,000 (double the amount of damages suffered as a result of the conduct in question).
Middle District of Florida Asset Forfeiture Case Highlights
United States v. Assets Described in Attachment A (262 gold bars, etc.)
As detailed in the civil forfeiture complaint, a Spanish citizen based in Spain and Panama, operated Evolution Market Group (EMG), which did business as FinanzasForex. FinanzasForex was an on-line multi-layer marketing scheme that purported to provide an investment opportunity in the Foreign Exchange (Forex) market. However, only a small portion of the money received from investors was invested in Forex, and those investments resulted in losses. Instead, investor money was used to pay back prior investors, and to support the Orlando-based associates’ lifestyles and to pay their business expenses, including the use of $1 million in investor funds to purchase luxury vehicles and more than $50 million to pay off properties they owned. Due to the quick work of law enforcement, more than $180 million in assets purchased or funded with investor funds were seized, including gold bars valued at over $100 million, luxury vehicles, and bank accounts.
The gold bars were purchased with investor funds that had previously been held in a bank account controlled by a business in Oregon that specialized in brokering precious metal purchases. The Oregon company, for a large fee, had allowed its accounts to be used to accept FinanzasForex investor payments and transfer money back to investors. Because of the voluminous number of incoming deposits by foreign investors into its accounts, banks ceased doing business with the company. As a result, in order to get the funds back to Cardona, the Oregon company purchased 294 gold bars with the funds in its accounts. In order to make some additional money from the transaction, the company then attempted to obtain a 20% fee to deliver the gold bars to Cardona. When the United States liquidated the gold bars, they were sold on the open market.
The United States has hired a claims administrator to help distribute the forfeited funds back to the victims of the fraud. It is believed that there are more than 15,000 victims located in over 50 countries.
United States v. David Smith
In fiscal year 2014, we completed the criminal forfeiture of $1,662,715 from David Smith. Smith operated four successive “investment clubs” in which he claimed investors’ funds would be used to engage in foreign currency trading. In 2005, Smith established Overseas Locket International Corporation in Panama and OLINT Corporation in Jamaica. In April 2006, Jamaican authorities issued a cease and desist order which barred Smith from obtaining new clients. Within weeks, Smith relocated and established two new companies, OLINT TCI and TCI FX Traders. He told investors that he traded on two foreign currency platforms, Oanda in Canada and New York, and I-Trade in Lake Mary, Florida. Evidence established that Smith had a little more than $100,000 in an account at Oanda. Smith deposited over $128 million into 4 trading accounts at I-Trade, but he engaged in little to no trading with those accounts. Most of the money was laundered through accounts opened by co-conspirators at other financial institutions, then wired back to Smith as he needed it to pay investors. Smith pleaded guilty to a wire fraud conspiracy and multiple money laundering violations. In prior years, we had criminally forfeited $3,695,905 from another trading account and obtained a $50,000 payment towards the $128 million forfeiture money judgment.
United States v. Gene Tyrell
According to court documents, Gene Tyrell and his co-defendants participated in an $18.4 million fraud scheme from late 1996 through August 2000, utilizing a succession of unregistered securities offerings to defraud hundreds of investors. The defendants were convicted and sentenced in 2005 for their roles in the fraud scheme. In FY 2013, we completed the forfeiture of Tyrell’s interest in Woodbridge International, Inc., and Woodbridge International Management, LLC, companies created by Tyrell and used by him and his co-defendants in unregistered fraudulent securities offerings that post-dated the fraud charged in the original indictment. More than a decade after his indictment, we pursued the forfeiture of these companies as substitute assets because, by virtue of their ownership, the companies were entitled to approximately $1 million in proceeds from the sale of that stock. When he was sentenced on September 22, 2005, Tyrell was ordered to serve 136 months’ imprisonment, and among other financial penalties, a $2.5 million forfeiture money judgment was included in his Judgment. By his own admission, Tyrell had small bank balances, minimal liquid assets, and significant debt; consequently, there did not appear to be any assets to forfeit.
However, after Tyrell’s sentencing the United States was contacted by an individual interested in purchasing shares of stock in iCrossing, Inc. held by the Woodbridge entities, indicating that Gene A. Tyrell was the President of Woodbridge. Following up on that tip, the United States learned that a law firm in Arizona was handling the sale of iCrossing to Hearst. After contacting the law firm, the United States confirmed that, according to the Common Stock Ledger, Tyrell, through the Woodbridge entities, had purchased three stock certificates (for a total of nearly 118,000 shares) for more than $350,000, and that those shares were worth approximately $1 million when acquired by Hearst. Therefore, the United States forfeited the Woodbridge entities in order to take title to the stock.
United States v. Paul Robert Gunter, et al.
On March 10, 2009, a federal grand jury returned a superseding indictment charging Paul Robert Gunter, Zibiah Joy Gunter, Lawrence S. Hartman, Richard Sinclair Pope, Simon Andrew Odoni, Roger Lee Shoss, and Nicolette Loisel with conspiracy to commit mail fraud and wire fraud, and conspiracy to commit wire fraud and money laundering, and other substantive counts of money laundering, mail fraud, and wire fraud. In the superseding indictment, the government provided the conspirators with notice of our intent to seek forfeiture. According to the evidence and testimony presented at trial, from at least as early as July 2004 through at least March 13, 2008, Gunter, Odoni, Pope, and others engaged in a sophisticated investment fraud and money laundering scheme in which worthless stock in hijacked dormant, publicly-traded companies in the United States was sold to victim-investors, primarily in the United Kingdom. The scheme used boiler room telemarketers, mostly in Spain, who employed high pressure and misleading sales techniques. The victim-investors wired more than $127 million to Gunter's bank accounts in the Middle District of Florida. The conspirators bilked victim-investors out of another $10 million via a FOREX currency trading scheme, which also utilized the boiler rooms in Spain. On April 19, 2013, Paul Gunter and Simon Odoni were found guilty by a federal jury following a 19-day trial. Specifically, the jury returned verdicts of guilty on three counts of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as 19 counts of mail and wire fraud, and 14 counts of money laundering. Prior to trial, on March 10, 2011, Richard Pope pleaded guilty to one count of conspiracy to commit wire and mail fraud. Pope cooperated with the government and testified at trial.
In addition to sentencing the defendants to serve terms of imprisonment, the Court ordered all three individuals to forfeit their interests in real property and bank accounts in the U.S. and abroad, an airplane, vessels, and vehicles purchased with proceeds of the fraud scheme and imposed forfeiture money judgments against them. As part of the investigation, federal agents seized nearly $5 million in domestic bank accounts. At the sentencing hearing, the court agreed with the government that entry of an order of restitution would be impracticable because considerable additional resources were needed to notify potential victims and determine the amount of their losses; therefore, the court agreed that the United States should be permitted to use forfeited funds to compensate victims through the remission process. The United States has retained a claims administrator to assist in this process. The last defendant to be sentenced was Lawrence S. Hartman, an American lawyer who was residing in Costa Rica, who conspired with Gunter, Odoni, Pope and others. In May 2013, Hartman was arrested on an immigration violation by Nicaraguan authorities. After being expelled and deported from Nicaragua, Hartman entered a guilty plea and was sentenced to 10 years in prison. Pursuant to his plea agreement, he has consented to the forfeiture of significant assets and has agreed to provide assistance in locating and liquidating those assets. Because most of his assets are in foreign countries, the forfeiture process is likely to be lengthy. Funds obtained from the forfeiture of his assets will also be distributed by the claims administrator.
In a related trial that took place in May 2012, American lawyers Roger Lee Shoss and Nicolette Loisel were convicted of one count of conspiracy to commit wire fraud in connection with their participation in the corporate identity theft aspect of the scheme. A $800,000 forfeiture money judgment was entered against both defendants and Shoss’s home is the subject of a Final Order of Forfeiture.U.S. Attorney’s Office Collects More Than $13 Million in Fiscal Year 2014Read the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Through a combination of civil and criminal actions, the United States Attorney’s Office for the Northern District of West Virginia collected more than $13 million during Fiscal Year 2014, United States Attorney William J. Ihlenfeld, II, announced today.
The office collected $5,378,951.98 from civil actions, $957,890.18 from criminal actions, and $1,521,711.40 from civil and criminal asset forfeitures for a total of $13,095,953.31.
“My office has many talented and hardworking people dedicated to recovering funds for victims of crimes and for the federal treasury,” said U.S. Attorney Ihlenfeld. “We’ll remain aggressive in 2015 to prosecute and hold accountable all those who seek to profit from illegal activities.”
Large criminal collections from 2014 include:
• $333,787.32 paid by Joseph Yurigan, D.C. of New Alexandria, PA as a result of his conviction for submitting fraudulent claims to Medicare and Medicaid. Yurigan was convicted in 2013, and paid a total of $836,265.95 in Fiscal Years 2013 and 2014. In addition to restitution paid to the Centers for Medicare and Medicaid, individual victims included Ohio Bureau of Workers’ Compensation, the WV Offices of the Insurance Commissioner, and Brickstreet Insurance.
Large civil collections for FY 2014 include:
• $2,000,000.00 paid by Judy’s Drug Store as a result of a civil settlement with Judy’s Drug Store, Inc., Darin Judy, Emily Judy, Kimberly Arbaugh and Casey Watts. The defendants paid to settle accusations that Judy’s Drug Store repeatedly filled prescriptions for controlled substances, such as oxycodone and hydromorphone, not written for legitimate medical purposes. The pharmacists filled these prescriptions outside the scope of professional practice. The federal investigation into Judy’s Drug Store arose after the U.S. Attorney’s Office prosecuted and obtained a conviction against Hardy County, West Virginia physician, Rajan Masih, in 2011. Dr. Masih was convicted of distributing controlled substances for other than legitimate medical purposes and outside the scope of professional practice. Dr. Masih wrote many of the prescriptions for controlled substances improperly filled by Judy’s Drug Store.
• $1,600,000.00 paid by Chesapeake Appalachia for civil violations of the United States Clean Water Act and West Virginia’s Water Pollution Control Act and West Virginia’s requirements governing water quality standards, by discharging pollutants, including dredged or fill material, and/or controlling and directing the discharge of pollutants, including dredged or fill material, into waters of the United States and/or the State, without authorization, at various locations in Boone, Kanawha, Lewis, Marshall, Mingo, Preston, Upshur and Wetzel counties of West Virginia.
• $1,000,000.00 civil penalty paid by Devender Batra, M.D. and Belmont Cardiology, Inc., after causing East Ohio Regional Hospital and Ohio Valley Medical Center to submit fraudulent claims to Medicare from January 2009 to August of 2010, for prohibited referrals for various health services in violation of the Federal False Claims Act.
• $660,000.00 paid by the Ohio Valley Health Education & Services Corporation (OVHS&E), Ohio Valley Medical Center (OVMC), and East Ohio Regional Hospital (EORH) in Fiscal Year 2014 on a case that was settled in FY 2012. Since settlement, these entities have paid over $2.0 million and still owe $1.7 million dollars to the federal government for violations of the Stark Act and improper compensation arrangements with physicians.
Large criminal asset forfeitures for FY 2014 include:
• $192,325.00 in forfeited assets from Anita Ambler, a former bookkeeper at the Mountaineer Racetrack, who was convicted by a federal jury trial in April of 2013 on eleven counts of “Mail Fraud”, ten counts of “Wire Fraud”, and four counts of “Transacting in Criminal Proceeds.” In addition to the forfeiture, Ambler was required to pay a money judgment of $1,305,090.15.
• $76,625.00 in assets seized from Kimberly Mull, who entered a guilty plea to the offense of “Conspiracy to Distribute Schedule I and Schedule II Controlled Substances,” which included the sale and distribution of heroin, cocaine, and oxycodone pills. The source state for most of the heroin referenced in the Mull indictment was Pennsylvania, while the pain pills came from Pennsylvania, Ohio, and West Virginia. As part of her sentence, Mull was ordered to pay $11,000 to the Ohio Valley Drug Task Force as reimbursement for funds that were paid to her during the controlled purchases of narcotics. She must also pay a money judgment of $50,000 to the United States of America.
• $75,000.00 in forfeited assets seized from David Tamm, a former vice-president at Fairmont State University, who was convicted of stealing funds from the school through the use of state-issued purchasing cards as well as funds from federal education grants. In addition to the forfeiture, the Court also imposed a money judgment in the amount of $639,174.33.
U.S. Attorneys’ Offices throughout the country are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion though civil and criminal actions in the fiscal year ending September 30, 2014.
U.S. Attorney's Office Indicts 14 for Acadiana Methamphetamine Distribution ConspiracyRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that a federal grand jury indicted 14 people in a methamphetamine distribution conspiracy in Lafayette, New Iberia and the surrounding areas.
Those named in the 20-count indictment are:
Gary Hunt, 58, of Spendora, Texas;
Elliot Jolet, 34, of New Iberia, La.;
Anita Desormeaux, 42, of New Iberia;
Ko Chanhkongshinh, 37, of Youngsville, La.;
Jenee Lynn Hargrave, 29, of Scott, La.;
David Lowery, 32, of New Iberia;
Everette Dupuis, 39, of New Iberia;
Michael Guidry, 44, of Erath, La.;
Tyrone Howard, 42, of Youngsville;
Kevin Jefferson, 31, of New Iberia;
Nared Souphannavong, 29, of New Iberia;
Brandi Boullion, 27, of New Iberia;
Dewey Migues, 35, of New Iberia; and
Corey Freyou, 37, of New Iberia.According to the indictment, the defendants conspired to distribute and possess with intent to distribute methamphetamine in New Iberia, Lafayette, and the surrounding areas. Jolet and Desormeaux purchased methamphetamine from Hunt in Texas and other sources and then transported it to the South Central Louisiana area. It was then sold or distributed in reduced quantities among the other conspirators. The investigation also resulted in the seizure of crystal methamphetamine, more than $5,400, a vehicle, and several firearms. Of the defendants, 12 have been arrested. Dupuis and Hargrave still remain at large. If you have information on the location of the defendants who are still at large, please call the DEA at 337-706-3940 or the U.S. Marshal’s Service at 337-262-6666.
The defendants face various possible penalties depending on the drug quantity involved and their drug histories. Some defendants face up to 20 years in prison, and some face up to life in prison, and up to 10 years of supervised release, for the conspiracy to possess and distribute methamphetamine count. The defendants also face up to 40 years in prison, and some up to life, and up to eight years of supervised release, for the distribution of methamphetamine count; they face up to eight years in prison and up to three years of supervised release for the use of a communication facility in causing or facilitating a drug trafficking crime count; and defendant Migues faces up to 10 years in prison and up to three years of supervised release for the possession of firearms and ammunition by a convicted felon count. They also face a fine of up to $20 million and forfeiture of the money and property seized in the case.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation. The DEA, Iberia Parish Sheriff’s Office, Lafayette Parish Sheriff’s Office, Vermilion Parish Sheriff’s Office, and the Lafayette Police Department participated in this OCDETF investigation. The U.S. Marshal’s Service, U.S. Department of Homeland Security and the Lafayette City Marshal’s Office assisted in the arrests. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorneys Myers P. Namie, Daniel J. McCoy and Robert F. Moore are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney's Office in Kansas Collects $11.4 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
KANSAS CITY, KAN. - U.S. Attorney Barry Grissom announced today that the District of Kansas collected more than$11.4 million in criminal and civil actions in Fiscal Year 2014. Of this amount, $5 million was collected in criminal actions and $6.4 million was collected in civil actions
“We work very hard to be good stewards of the taxpayers’ money,” said U.S. Attorney Barry Grissom. “Our collections in Fiscal Year 2014 almost equaled our office’s total direct budget of $11.9 million.”
On the national level, Attorney General Eric Holder announced today that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending Sept. 30, 2014.The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
Grissom said an investigation of a cancer clinic in Kansas this year was a good example of how his office recovers money for taxpayers. In April 2014, the Hope Cancer Institute, and Dr. Raj Sadasivan, agreed to pay $2.9 million to resolve allegations that they violated the False Claims Act by submitting claims to Medicare, Medicaid and the Federal Health Benefits Program for drugs and services that were not provided to the beneficiaries.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.U.S. Attorney's Office Collects $9,437,113 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
St. Louis, MO – Assistant United States Attorney Nicholas Llewellyn, Chief of the Civil Division, announced today that the Eastern District of Missouri collected $9,437,113 in criminal and civil actions in Fiscal Year 2014. Of this amount, $7,293,407 was collected in criminal actions and $2,143,706 was collected in civil actions
Additionally, the Eastern District of Missouri worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional$1,877,106 in cases pursued jointly with these offices. Of this amount, $5,457 was collected in criminal actions and $1,871,649 was collected in civil actions.
Attorney General Eric Holder announced on November 19, 2014 that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending September 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period."Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources and to provide a valuable return on investment to the American people," said Attorney General Holder. "Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis."
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney's office in the Eastern District of Missouri, working with partner agencies and divisions, collected $4,393,864 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney Collects more than $44 Million in Civil and Criminal PenaltiesRead the Press Release
ALBANY, NEW YORK – Albany, NY - U.S. Attorney Richard S. Hartunian announced today that the U.S. Attorney’s Office for the Northern District of New York collected more than $44 million in civil and criminal penalties this past fiscal year. Of this amount, $17,655,763 was collected from criminal prosecutions and $2,319,703 was collected in civil cases in Fiscal Year 20141. Additionally, the U.S. Attorney’s Office, working in conjunction with other U.S. Attorney’s Offices and agencies in the Department of Justice, collected an additional $2,050,000 in civil cases.
On top of this amount, the U.S. Attorney’s Office worked with partner agencies to make substantial recoveries of money and forfeited assets. These typically represent proceeds of criminal conduct which can be forfeited under federal law. $22,034,435 was collected and deposited into the Department of Justice Assets Forfeiture Fund. These moneys are used to make restitution to crime victims and for a variety of other law enforcement purposes.
Nationally, Attorney General Eric Holder announced this morning that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“This year’s collections far exceed last year’s amounts for our office,” said U.S. Attorney Richard S. Hartunian. “We have doubled our criminal, civil and administrative forfeitures over the past year. Additionally, approximately $15 million more was collected this year in criminal cases. These are ill-gotten funds and profits from criminal activities. We take great satisfaction in knowing we’ve taken them back from the hands of lawbreakers.”
Some notable cases in which funds were recovered by the U.S. Attorney’s Office during fiscal year 2014 include the following:
Forfeited bank accounts in illegal gambling business:
Forfeiture of nearly $10 million was ordered for the government in an illegal gambling business, run by multiple co-defendants2, which used internet websites that allowed bettors to place thousands of wagers from the Capital District, Florida, Indiana, California, Texas, and Nevada. The wager money was transferred to offshore accounts in Panama, Andorra, and the Cayman Islands, all of which were forfeited.
Forfeited property in bath salts case:
In February of this year, an RV and cash, together worth nearly $300,000, were among assets forfeited in the U.S. v John Tebbetts case which focused on the illegal distribution of bath salts.
Small Business Administration loan recovery:
A civil complaint was filed against Clifton Park LLC, and 3 individuals (Chetan Patel, Magan Patel, and Dalpat Patel) who were guarantors on an SBA loan for $ 1,367,000. The purpose of the loan was the purchase/rehab of a Comfort Inn in Clifton Park, NY. The complaint was settled for a total amount of $ 609,208.00 spread out over 8 months. To date, $442,104.00 has been collected.
Forfeited and returned artifacts:
Two Italian artifacts, the Attic Red-Figure Skyphos, valued at $35,000, and the Apulian Red-Figure Bell Krater, valued at $20,000, were subject to forfeiture pursuant to federal law which pertains to stolen, smuggled, and clandestinely imported or introduced merchandise. The two artifacts smuggled into the U.S. were forfeited and will be returned to the Italian Ministry of Cultural Heritage and Tourism.
Marketing of prescription drugs for unapproved uses:
The U.S. Attorney’s Office for the Northern District of New York, in conjunction with its colleagues in the Eastern District of Pennsylvania and at the Department of Justice, resolved criminal and civil investigations arising from Endo Pharmaceuticals’ marketing of the prescription drug Lidoderm for uses not approved as safe and effective by the Food and Drug Administration, including payment by Endo of $192.7 million. In a deferred prosecution agreement to resolve the criminal Information filed in the Northern District of New York, Endo admitted that it intended that Lidoderm be used for unapproved indications and that it promoted Lidoderm to health care providers for those unapproved indications, agreed to pay a total of $20.8 million in monetary penalties and forfeiture, and agreed to implement enhanced compliance measures. Endo also agreed to civil false claims settlements with the United States and the states totaling $171.9 million. This settlement emphasized that public health is protected by compliance with FDA’s drug approval process and requirement that product labeling be based on performance, rather than profitability.
Restitution secured through pension benefit:
On May 16, 2001, Paul Ryan was sentenced by U.S. District Judge Lawrence E. Kahn to pay restitution in the amount of $2,881,662.90 to Albany Savings Bank in connection with his securities fraud conviction covering the period of 1993-1998. During the course of the investigation it was discovered that the defendant was entitled to a 401(k) pension benefit distribution from Integra Networks, Inc. in the amount of $65,000. A Writ of Execution was issued on Integra Networks, Inc. on October 29, 2013. As a result, a check in the amount of $54,473.34 was issued to the United States District Court Clerk on November 5, 2013, which was applied to the court-ordered restitution. Efforts to enforce the remaining restitution continue.
Violations of the Recovery Act’s “Buy American” requirement:
The U.S. Attorney’s Office recently resolved, for $500,000, a case involving allegations that Jett Industries, a Colliersville-based general contractor, had falsely certified compliance with the American Recovery and Reinvestment Act’s “Buy American” provision. Jett purchased key project components in France, and then created and submitted paperwork in an effort to mislead the government into believing that the cheaper, French-made products were produced in the United States.
City acknowledges that it mismanaged federal funds:
Another recent case that involved a seven-figure monetary recovery, an admission of wrongdoing, and other forward-looking (non-monetary) components was a settlement reached last month with the City of New York. This settlement resolved allegations, brought to our attention by a whistleblower, that the New York City Human Resources Administration (HRA) violated the False Claims Act by causing various managed care organizations to provide health care coverage to individuals that HRA knew, or should have known, were ineligible to receive benefits through New York State’s Medicaid program. As part of the settlement, HRA accepted responsibility for failing to timely review and close Medicaid cases after being provided information that the beneficiaries moved outside of New York City, and it admitted that its inaction caused one or more MCOs to receive payments to insure individuals who were ineligible for benefits through New York State’s Medicaid program. HRA also agreed as part of the settlement to establish a process to investigate and close Medicaid cases whenever it learns that a beneficiary no longer resides within its coverage area.
Unlawful physician compensation arrangements:
A settlement was reached in August 2014 with the New York Heart Center. In that case, a group of upstate New York cardiologists agreed to pay $1.34 million to resolve allegations that its physicians’ compensation was determined using a formula that took into account the volume or value of each physician’s ordering of designated health services from other physicians in the practice, in violation of the Stark Law.
Attached is a chart showing how the Northern District of New York’s FY2014 $44,064,710 collections were distributed to the victims, government agencies serving the public and state and local law enforcement agencies.
All U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
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1 The federal fiscal year runs from October 1st to September 30th.
2 U.S. v. Any and All Funds on Deposit in Bank of America, N.A. in the name of Jay Goldman, et al case 1:13-CV-765, U.S. v. $65,000.00 in U.S. Currency case 1:13-CV-776, and U.S. v. Michelle Lasso case 1:13-CR-413
Two People Charged in A Scheme to Defraud Their Former Employers of Millions of DollarsRead the Press Release
NEWARK, N.J. – Two Bergen County, New Jersey, residents were charged today in a scheme to defraud two international companies out $3 million by fraudulently billing them for services that were never completed, U.S. Attorney Paul J. Fishman announced.
Barbara Brown, 64, and Philip Charles de Gruchy, 61, both of Park Ridge, New Jersey, surrendered to federal agents this morning and were charged by complaint with one count of conspiracy to commit mail fraud. The defendants made their initial appearances this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Each was released on $250,000 unsecured bond.
According to the complaint filed in this case:
From August 2007 through April 2, 2010, Brown was employed by “Company A,” a toy and juvenile products retailer headquartered in Wayne, New Jersey, first as director of customer relationship management and then as director of global customer relations management. As part of her position, she had authority to hire and pay contractors. Brown caused Company A to enter into a business relationship with CEM, a company that Brown and de Gruchy secretly controlled. From Nov. 5, 2007, through March 4, 2010, CEM submitted more than 60 invoices to Company A for alleged marketing consulting work. The purported work was either copied from other vendors’ work, was related to other businesses or did not correspond to items on CEM’s invoices.
The net amount that CEM billed and collected from Company A was $2.855 million. Although each of the checks that Company A issued to CEM was mailed to various Canadian addresses, the checks were ultimately deposited at bank branches located in White Plains, New York. Checks were written out of the CEM account payable directly to either de Gruchy or Brown or to Silk Farm and Ontario LLC, companies affiliated with de Gruchy. Monies obtained from the scheme were used for personal purposes, including home renovations and mortgage payments on the Park Ridge residence that Brown and de Gruchy shared, and credit card bills.
From July 2010 through Nov. 11, 2011, de Gruchy was employed as the director of global relations management for “Company B,” an international manufacturer and retailer of luxury travel suitcases and accessories, headquartered in South Plainfield, New Jersey. As part of his job, de Gruchy was responsible for a data migration project designed to assist Company B with identifying customer purchasing patterns. De Gruchy obtained verbal approval from Company B to hire Brown to assist on the migration project. At no time did de Gruchy reveal his personal or business relationship with Brown.
From Nov. 4, 2010, through Sept. 22, 2011, Company B mailed $216,835 in checks to a Canadian address purporting to belong to Brown or BI Insights, an alleged Canadian company engaged in marketing consulting services and controlled by Brown. De Gruchy approved all of the invoices submitted by Brown and BI Insights. An examination of documents that purported to support the invoices to Company B revealed that no meaningful work product was furnished. Additional invoices submitted by Brown to Company B, totaling $124,150, were not paid after the scheme to defraud was uncovered.
The counts of conspiracy to commit mail fraud with which the defendants are charged carry a maximum penalty of 20 years in prison.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.
- Two Convicted in Separate Cases Involving the Robbery or Attempted Robbery of Armored Cars
Three Men Sentenced for Federal Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLEMMON BRIDGES, age 56, of Houston, Texas, and DARIN FIELDS, age 32, of Bogalusa, Louisiana, were sentenced today after having previously pled guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base. In addition, WALTER VAUGHN, age 49, of Amite, Louisiana, was sentenced today after having previously pled guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base and possession with the intent to distribute cocaine base.
U.S. District Judge Jay C. Zainey sentenced BRIDGES to a 30-month term of imprisonment and 3 years of supervised release, FIELDS to a 151-month term of imprisonment and 3 years of supervised release, and VAUGHN to a 37-month term of imprisonment and 3 years of supervised release.
On February 6, 2014, BRIDGES, FIELDS, and VAUGHN were three of 15 defendants charged in an 8-count indictment. According to court documents, the indictment was based on court-authorized wiretaps that recorded conversations between STEVEN HAYNES and the defendants, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Louisiana State Police, and Washington Parish Sherriff’s Office in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Three Charged in Eagle Ford Shale Oil Theft CaseRead the Press Release
In Laredo, TX, today, federal authorities arrested 37-year-old Victor Manuel Guerra, Jr., in connection with an alleged theft of Eagle Ford Shale oil announced United States Attorney Robert Pitman; Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division; and William Cotter, Internal Revenue Service (IRS) Criminal Investigation Acting Special Agent in Charge.
Last month, a federal grand jury in Del Rio, TX, indicted the Laredo resident and two others--49-year-old Juan Martin Bernal of Eagle Pass, TX, and 25-year-old Carlos Samuel Pena of Del Rio--on charges of theft of oil from interstate shipment, wire fraud, and money laundering. Guerra is charged with two counts of theft from interstate shipment, sixty-nine counts of wire fraud and fifty-eight counts of money laundering. Bernal and Pena, who were arrested earlier this month, are both charged with one count of theft from interstate shipment and sixty-nine counts of wire fraud.
The indictment alleges that between January 2011 and August 2014, the defendants devised a scheme to steal oil from energy companies operating in the South Texas’ Eagle Ford Shale, including a company Bernal worked for, Newfield Exploration Company, and Anadarko Petroleum Corporation, a company that employed Pena. Guerra, who owned Las Lomas Vacuum Services and AVG Vacuum Services, provided wastewater removal services from oil field well sites. According to the indictment, Guerra’s trucks had no authority from the Texas Railroad Commission to receive or transport oil. Further, the wastewater trucks were not designed to safely carry and transport oil.
The indictment further alleges that although Guerra’s company had no contract or permission to be on Newfield or Andranko property, Pena and Bernal covertly allowed the wastewater trucks onto the victims’ properties. Instead of removing wastewater from the oil field storage tanks, the drivers, in collusion with Pena and Bernal, would take oil. The pilfered oil was then transported to Guerra’s property where Guerra would sell the stolen product for financial gain to third-party buyers who would pay for the oil via wire transfer.
The indictment also includes a notice of criminal forfeiture wherein the Government is seeking proceeds derived from the fraudulent scheme as well as funds totaling more than $1.5 million, which represents the amount of proceeds obtained, directly or indirectly, as a result of the criminal scheme.
“The vast expanse of the Eagle Ford Shale and the high level of oil and gas drilling and production in the area provide many opportunities for those inclined to cheat and steal. This indictment gives notice that this office will work closely with federal and state law enforcement agencies to vigorously investigate and prosecute those who perpetrate unlawful schemes to exploit the financial opportunities presented in the oil field,” stated United States Attorney Robert Pitman.
“While the theft the defendantsallegedly engaged inresulted in significant losses for two publicly traded companies, this type of criminal activity often harms the American public as well by hindering the creation of new jobs, raising prices for consumers, and depriving communities of tax revenue needed to fund infrastructure and other vital projects,” said Christopher Combs, Special Agent in Charge of the San Antonio Division of the Federal Bureau of Investigation. “The FBI will continue to work side-by-side with our law enforcement partners to investigate and prosecute those who put their greed above the law.”
IRS Criminal Investigation Acting Special Agent in Charge William Cotter said: “No matter how slick a criminal thinks he is, there’s always a trail to follow. In this case, IRS CI Special Agents employed their financial investigative expertise to separate the oil from the water, leading them to Guerra Jr., Bernal, and Pena.”
Upon conviction, the theft and money laundering counts are punishable by imprisonment up to ten years and a fine of $250,000 and the wire fraud counts are punishable by imprisonment up to 20 years and a fine of $250,000.
This indictment resulted from an investigation conducted by agents with the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) Criminal Investigation, Texas Attorney General’s Special Investigations Unit, Bexar County District Attorney’s Office, Texas Department of Public Safety, Texas Rangers, Dimmit County Sheriff’s Office, and the Texas Railroad Commission. Assistant United States Attorneys Bryan Nathan Reeves and Timothy Adam Duree are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Third Defendant Pleads Guilty to Second Degree Murder Charge in Case Arising from Kidnapping and Murder of Navajo WomanRead the Press Release
Justin Benally to Serve 22-Year Prison Sentence for Aiding and Abetting Murder
ALBUQUERQUE – Justin Benally, 26, of Farmington, N.M., pled guilty today to a second degree murder charge arising out of the kidnapping and brutal murder of a 28-year old Navajo woman. Two co-defendants, Mariah Benally, 22, and LaSheena Jacquez, 27, both of Kirtland, N.M., entered similar guilty pleas last month.
Justin Benally, Mariah Benally and Jacquez are three of five individuals, all of whom are enrolled members of the Navajo Nation, who were indicted in Jan. 2014, on criminal charges arising from the kidnapping and murder of the victim on Oct. 23, 2013. The five defendants previously had been arrested in Dec. 2013, on a criminal complaint that was filed after law enforcement authorities received information that the victim, who had been reported as missing in Nov. 2013, had been murdered. The victim’s remains were recovered on Dec. 9, 2013.
In addition to charging Justin Benally, Mariah Benally and Jacquez, the four-count indictment also charged Patrick Benally, 26, of Kirtland, and Scott Thompson, 28, of Farmington, with first degree murder, kidnapping, and conspiracy to kidnap. It also charged Justin Benally, Mariah Benally, Jacquez and Thompson with harboring Patrick Benally to prevent his arrest on a warrant for an unrelated crime. The indictment alleges that the crimes charged occurred on the Navajo Indian Reservation within San Juan County, N.M.
This morning, Justin Benally pled guilty to a felony information charging him with second degree murder. In entering his guilty plea, Justin Benally admitted aiding and abetting the victim’s murder by participating in her kidnapping and taking actions that ultimately resulted in the victim’s death. Under the terms of his plea agreement, Justin Benally will be sentenced to a 22-year term of imprisonment. He remains in custody pending his sentencing hearing, which has yet to be scheduled.
On Oct. 29, 2014, Mariah Benally also pled guilty to a second degree murder charge. Mariah Benally admitted causing the victim’s death by throwing rocks at her, and aiding and abetting others who also caused the victim’s death. She also admitted throwing rocks at the victim after the victim had been repeatedly stabbed by three of her co-defendants and thrown off a cliff by one of the co-defendants. Mariah Benally also aided her co-defendants in restraining the victim and transporting her to the murder site, and destroying evidence of their crimes.
Jacquez pled guilty to a second degree murder charge on Oct. 16, 2014, and admitted causing the victim’s death on Oct. 23, 2013, by repeatedly stabbing the victim with a knife, throwing rocks at the victim, and aiding and abetting others who also caused the victim’s death. Jacquez also admitted that she destroyed evidence and aided and abetted others in the destruction of evidence in an effort to evade prosecution.
Mariah Benally and Jacquez have been in federal custody since they were arrested and remain detained pending their sentencing hearings, which have yet to be scheduled. Each faces a maximum statutory penalty of life imprisonment.
The two remaining co-defendants have entered not guilty pleas to the indictment and are detained pending trial, which has not yet been scheduled. If convicted of the charges in the indictment, each faces a maximum statutory penalty of life imprisonment. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
This case was investigated by the Farmington office of the FBI, the Farmington Police Department and the San Juan County Sheriff’s Office. Assistant U.S. Attorneys Niki Tapia-Brito and David Adams are prosecuting the case.