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Wednesday 19 November 2014
Central District of Illinois’ U.S. Attorney’s Office collects $30 Million in Criminal & Civil Actions in Fy 2014Read the Press Release
Springfield, Ill. - U.S. Attorney Jim Lewis announced today that the Central District of Illinois collected $30 million for taxpayers in criminal and civil actions in fiscal year 2014. Of this amount, $20,418,986 was collected in criminal actions by the Central District; an additional $13,456 was collected in criminal actions by the District with other Department of Justice entities. In civil actions, the District collected $8,049,414, and another $1,595,242 with other DOJ entities.
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.”“We hold people accountable when the law says that they should be accountable,” said U.S. Attorney Lewis. “We collect restitution for victims of crime, we collect damages if there has been fraud in government programs, we collect debts owed to the government, and we protect federal funds and the public treasury. We do our very best to make sure that justice is done.”
Examples of significant collection efforts during FY 14 include $17 million in criminal fines paid by a subsidiary of the Archer Daniels Midland Company, Alfred C. Toepfer International Ukraine Ltd. In December 2013, ACTI Ukraine entered a plea of guilty in the Central District of Illinois to one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act. The company agreed to pay $17 million in criminal fines to resolve charges that it paid bribes through vendors to Ukrainian government officials to obtain value-added tax refunds.
Another example is the $5,364,000 paid by Dowson Farms, Divernon, Ill., in an out-of-court civil settlement in January 2014, to resolve allegations that it conspired to avoid statutory caps on federal farm subsidy payments from 2002 through 2008.
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 Central District of Illinois, working with partner agencies and divisions, collected $942,073 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.
Camden Man Sentenced for Illegal Firearm after Deer Decoy used in Ray CountyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Camden, Mo., man has been sentenced in federal court for illegally possessing a firearm following an investigation that employed a deer decoy in rural Ray County, Mo.
Dewayne A. Stephens, 44, of Camden, Mo., was sentenced by U.S. District Judge Gary A. Fenner on Monday, Nov. 17, 2014, to nine years in federal prison without parole.
On Dec. 19, 2013, Stephens pleaded guilty to being a felon in possession of a firearm.
Stephens was seen in the area of Vandiver Road in rural Ray County on Nov. 11, 2012, with a bolt action rifle. The next day, Stephens and another individual were seen carrying a rifle after shots were heard in the wooded area. A Winchester .243-caliber shell casing was found in the area where the shots were heard.
On Nov. 14, 2012, conservation agents set up a deer decoy and observed Stephens exit his Dodge truck with a black and silver colored rifle with a silver scope and fire a shot at the deer decoy. Stephens then entered his truck with the rifle and fled the scene. One of the agents attempted to stop Stephens by blocking the roadway with his patrol truck, but Stephens accelerated, veered around the patrol truck (barely missing it) and left the area.
A Winchester .243-caliber shell casing was located in the area where Stephens had fired his rifle. A silver Savage Axis .243-caliber rifle with a synthetic stock and large silver scope was found along the road where Stephens had fled. Investigators confirmed that the two .243-caliber shell casings recovered were fired from the Savage Axis rifle, which was purchased by Stephens’s wife on Sept. 29, 2012.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Stephens has three prior felony convictions for receiving stolen property and prior felony convictions for driving while intoxicated, assault, armed criminal action, deviate sexual assault, burglary and stealing.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Missouri Department of Conservation, the Missouri State Highway Patrol and the Independence, Mo., Police Department.
Business Enters Plea in Grant Theft CaseRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Columbia, South Carolina ---- Brian Morin, age 47 of Greenville, SC, entered a guilty plea to theft of government funds in violation of Title 18, United States Code, Section 641 in connection with a grant administered to Morin’s former company, Innegrity LLC. According to facts presented during the guilty plea hearing, Morin was awarded a research grant from the National Science Foundation. As a grant condition, Morin was responsible for submitting grant reports certifying the hours that the company worked on grant related activities. An investigation revealed that the company’s internal records did not match the hours Morin certified to the National Science Foundation. Sentencing has not yet been scheduled, and Morin faces a maximum penalty of one year imprisonment and a fine of $5,000.
“The Small Business Innovation Research Program sets aside funds to support small companies that conduct innovative research. This plea stresses the importance of maintaining and reporting accurate time and effort expended on Federal grants, and sends a strong message to those who provide false information to the Federal Government. I commend the U.S. Attorney’s office for its strong support in this case” said Allison Lerner, the National Science Foundation Inspector General. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.Buffalo Man Convicted of Transportation of A Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Trevoen Renel Parkins, age 23, of Buffalo, New York was sentenced today by United States District Court Judge Sylvia H. Rambo to 120 months’ imprisonment, followed by 10 years of supervised release and a $1,000 fine after pleading guilty to the offense of Transportation of Minor With Intent to Engage in Criminal Sexual Activity on July 13, 2014.
According to U.S. Attorney Peter Smith, Parkins met the 12-year-old victim online and on April 12, 2013, traveled from Buffalo, New York to Franklin County, Pennsylvania, waited all day for the victim to finish school and then drove the victim to Buffalo, New York without her parents’ knowledge. While in Buffalo, Parkins statutorily raped the young girl twice. Telephone records led law enforcement to Parkins who lied to police about the girl’s whereabouts and hid the girl for three days before she was ultimately located by police in a closet inside Parkins’ girlfriend’s apartment.
This case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police and the Buffalo City, New York Police Department. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Brooklyn Woman Charged with Passing Counterfeit BillsRead the Press Release
A federal grand jury returned a one-count indictment charging Reneisha Ferguson, aka “Christine Purcell,” age 25, of Brooklyn, New York, with passing counterfeit notes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
On or about April 30, 2012, through December 9, 2012, Ferguson exchanged, transferred and delivered false, forged and counterfeited $100 Federal Reserve notes with the intent that the notes be accepted as genuine, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Secret Service and the Fairlawn Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Brookline Man Sentenced to 57 Months in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH – An Allegheny county resident has been sentenced in federal court to 57 months of imprisonment, to be followed by 15 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Eric Roller, 49.
According to information presented to the court, on or about Feb. 22, 2013, Roller possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police, and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Roller.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Brockport Man Sentenced on Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jacob Disanto, of Brockport, NY, who was convicted of participating in a conspiracy to distribute marijuana and possessing a firearm in furtherance of the marijuana distribution conspiracy, was sentenced to five years in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that the defendant and co-defendant Juan Morales were stopped for speeding by a Brockport Police Officer in a vehicle being driven by Disanto. During the search of the two men and their vehicle, officers found “dime” size bags of marijuana, and a loaded .22 caliber revolver.
The sentencing is the culmination of an investigation on the part of the Brockport Police Department, under the direction of Chief Daniel Varrenti, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins.
Bossier City Man Pleads Guilty to Possessing an Unregistered FirearmRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announcedtoday that aBossier City man pleaded guilty to possessing an unregistered firearm.
Daniel L. Dawson, 25, of Bossier City, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of possessing an unregistered firearm. According to evidence presented at the guilty plea, Bossier City Police responded to reports of gun fire on March 25, 2014. Dawson was found in possession of an H. Koon, model Snake Charmer, .410 gauge shotgun that had its shoulder stock cut down to a pistol grip. This made the shotgun less than 26 inches in length. The weapon was also found to not have been registered to Dawson through the National Firearms Registration and Transfer Record.
Dawson faces up to 10 years in prison, one year of supervised release, a $10,000 fine, and forfeiture of the firearm and ammunition. A sentencing date of January 15, 2015 was set.
The ATF and Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case as part of Project Safe Neighborhoods Program, which is a Department of Justice initiative designed to reduce the possession of unlawful firearms and the use of firearms to commit crimes.
Bangor Resident Sentenced to Almost Six Years for Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Daniel
Hines, 38, of Bangor was sentenced in U.S. District Court in Bangor by Chief Judge John A.
Woodcock, Jr. to 70 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.”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 obtained MDPV from other members of the conspiracy and traded, sold
or otherwise distributed it to others. In November 2011, following the search of a co-
conspirator’s residence in Bangor and the seizure of a large amount of MDPV, the defendant
assisted another person in removing from the residence MDPV that the police had not found
during their search. This additional quantity of MDPV was eventually distributed to another
person, who was later caught by law enforcement. Hines is one of eighteen defendants who
pleaded guilty to conspiring with Ryan Ellis and others to distribute the drug. Ellis previously
pleaded guilty and awaits sentencing.
The case was investigated by the Maine Drug Enforcement Agency with assistance from
the U.S. Drug Enforcement Administration, and the Brewer and Bangor Police Departments.Baden Man Defrauded Gas Company of $440K in Gas RoyaltiesRead the Press Release
PITTSBURGH - A resident of Baden, Pennsylvania, pleaded guilty in federal court to charges of mail fraud, United States Attorney David J. Hickton announced today.
Scott D. Hamilton, aka Art Follage, aka Michael Lewis, 37, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Hamilton defrauded CNX Gas Company of $440,216.35 by filing assignments of lease interests that contained forgeries and imaginary persons. The lease interests were located in Christian County, Illinois, and in Fayette County, WV. These lease interests entitled the owner to royalty payments for oil and gas extracted from the land. Hamilton used a fake company and a post office box to pull off the scheme.
Judge Cercone scheduled sentencing for March 25, 2015. The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service conducted the investigation leading to the indictment in this case.
Authorities Seize 413 Grams of Crack Cocaine, Dealer Sentenced to 97 Months in PrisonRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistELKINS, WEST VIRGINIA – John A. Boyles, 34, of Kerens, West Virginia was sentenced to 97 months in prison after authorities seized 413 grams of crack cocaine from his residence, United States Attorney William J. Ihlenfeld, II, announced today.
“This is one of the largest seizures of crack cocaine to date in the Northern District of West Virginia,” commented U.S. Attorney Ihlenfeld. “I applaud the dedicated efforts of investigators in this case. We remain committed to aggressively combating the pervasive drug addiction problem facing our communities.” Boyles pled guilty in May 2014 to one count of “Aiding and Abetting the Distribution of Cocaine Base” following a West Virginia State Police investigation.
In another matter, Brandon Michael Beeson, 28, of Elkins, West Virginia, was sentenced to 51 months in prison. Beeson pled guilty in July 2014 to one count of “Possession of Material used in the Manufacture of Methamphetamine” after he was discovered in possession of various materials including coffee filters, lithium batteries, airline tubing, air pump, instant cold packs, starter fluid, lighter fluid, salt, drain cleaner, plastic bottles, a pill crusher, glass and plastic bottles, which can be used to manufacture methamphetamine. The Randolph and Upshur County Sheriff’s Departments and the Buckhannon Police Department investigated.
Additionally, Natasha Jewell Biggins, 28, of Montrose, West Virginia, was sentenced to 37 months in prison for her role in manufacturing methamphetamine, She pled guilty in April 2014 to one count of “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine” after methamphetamine manufacturing materials were discovered in her residence as part of a West Virginia State Police investigation.
Assistant U.S. Attorney Steve Warner prosecuted the cases on behalf of the government.
Chief U.S. District Judge John Preston Bailey presided.
Attorney General Holder Announces in Video that the Justice Department Collects More Than $24 Billion in Civil and Criminal Cases in Fiscal Year 2014Read the Press Release
Attorney General Eric Holder announced in a video 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. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the Justice Department’s 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 Eric Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And as a result, I can report today that – during Fiscal Year 2014 – the Justice Department collected a total of $24.7 billion in civil and criminal actions.”
The complete text of the Attorney General’s video message is below:
“Every day, the Justice Department’s 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. Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And as a result, I can report today that – during Fiscal Year 2014 – the Justice Department collected a total of $24.7 billion in civil and criminal actions.
“That’s more than three times the $8 billion total the Department collected in 2013. And it’s nearly eight and a half times the combined budgets of our 94 U.S. Attorneys’ Offices and all of our main litigating divisions.
“This year’s total includes every dollar collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It comprises roughly $13 billion in payments made directly to the Justice Department, as well as $11 billion in indirect payments made to other federal agencies, states, and other recipients. 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.
“In fact, the largest single source of collections during 2014 came from civil settlements to resolve financial fraud claims, including record penalties paid by JPMorgan and Citigroup. These settlements also provide for billions of dollars of relief to struggling homeowners.
“As in past years, collections from civil and criminal health care fraud penalties – including hundreds of millions of dollars in fines from pharmaceutical companies accused of fraud, false claims, and drug safety violations – were among the largest sources of recovered funds. And all across the country – from Wall Street to Main Street – the Justice Department’s robust criminal and civil efforts, in these and many other areas, have made a tremendous, positive difference in the lives of countless people.
“These achievements owe a great deal to the leadership of dedicated career attorneys and support staff members – in Washington and throughout the U.S. Attorney community – who serve the American people every day with integrity, with professionalism, and with steadfast commitment to the highest ideals of justice. I want to thank each of them for their contributions, and their patriotic service, in securing these collections and returning stolen funds to the public coffers.
“In the days ahead, as this work goes on; as we plan for the next fiscal year; and as the new Congress begins its annual appropriations process early next year, I urge leaders from both parties to come together to increase investments in this critical work – so we can ensure that the Justice Department will continue to have the resources we need to build on these efforts, and keep serving the American people, in the months and years to come.”
The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Allenwood Inmate and Visitor Sentenced for Passing ContrabandRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that United States District Court Judge Matthew W. Brann sentenced Catherine Maione, age 29, of New Hampton, New York, to one year probation along with a $350 fine and Anthony Webb, age 28, an inmate at the Allenwood facility, to 6 months’ imprisonment consecutive to any other sentence for providing and possessing contraband consisting of balloons containing marijuana.
According to a United States Attorney Peter Smith, Maione, visited Webb at the Allenwood facility, several times between June 2013 and February 2014 and delivered marijuana to Webb on those occasions. Maione and Webb plead guilty on August 4, 2014.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons. Assistant United States Attorney Eric Pfisterer prosecuted the case.
Alabama Woman Pleads Guilty for Involvement in Identity Theft Tax SchemeRead the Press Release
An Alabama woman pleaded guilty Tuesday to one count of conspiracy to file false claims and one count of aggravated identity theft for her involvement in a stolen identity tax refund fraud (SIRF) scheme, Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced.
Charnesha Alexander and her co-conspirators filed false tax returns using stolen identities between January 2011 and December 2013, according to court documents. Alexander acquired stolen identities from various sources, including the identities of employees from a company in Columbus, Georgia. Alexander and her co-conspirators also filed the false income tax returns in question using several Electronic Filing Identification Numbers issued in the names of sham tax businesses. As a result, Alexander and her co-conspirators obtained possession of the fraudulent tax refunds in the form of U.S. Treasury checks, refund anticipation loan checks, and prepaid debit cards. Alexander and her co-conspirators cashed the fraudulently obtained checks at several businesses located in Alabama. Alexander also deposited fraudulent refund checks into a bank account that she controlled.
A sentencing date has not been scheduled for Alexander. She faces a statutory maximum sentence of 10 years in prison for the conspiracy charge and an additional statutory mandatory sentence of two-years in prison for aggravated identity theft.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Michael C. Boteler, Charles M. Edgar Jr. and Gregory Bailey of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Acoma Pueblo Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Michael Paul Cerno, 38, of Acoma Pueblo, N.M., pleaded guilty this morning to felony information charging him with sexual abuse of a child under the age of 16 but older than 12. Under the terms of his plea agreement, Cerno will be sentenced to a federal prison term of 65 months followed by a term of supervised release to be determined by the court. Cerno will also be required to register as a sex offender.
Cerno, an enrolled member of the Pueblo of Acoma, who resides in Cibola County, N.M., was arrested in Aug. 2014, on a criminal complaint alleging that he sexually abused a 14-year old girl. The indictment alleged that Cerno sexually abused the victim between July 1, 2011 and July 31, 2011, in Indian Country in Cibola County, N.M. Law enforcement authorities learned of the crime two and a half years later.
During today’s plea hearing, Cerno admitted that between July 1, 2011 and July 31, 2011, he knowingly engaged in a sexual contact with the victim at a time when she was physically incapable or unable to decline participation in the sexual act. Cerno acknowledged committing the crime in Acoma Pueblo.
Cerno has been in federal custody since his arrest. He remains detained pending his sentencing hearing which has yet to be scheduled.This case was investigated by the Albuquerque office of the FBI, the Acoma Tribal Police Department, and the Laguna/Acoma Agency of the BIA’s Office of Justice Services.
The case is being prosecuted by Assistant U.S. Attorney David M. Adams as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Tuesday 18 November 2014
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
Anchorage, Alaska – XS Platinum, Inc. and five of its officers and employees 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, 59, and Mark Balfour, 62 (both Australian citizens), James Slade, 57 (a Canadian citizen), and Robert Pate, 62 and James Staeheli, 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.
Wheeling Man Sentenced for Sale of Cocaine, PainkillersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Adam W. Barnes, 40, of Wheeling, West Virginia, was sentenced to 46 months in prison for his role in a painkiller and cocaine distribution ring, United States Attorney William J. Ihlenfeld, II, announced today.
Barnes pled guilty in September 2014 to one count of “Conspiracy to Use a Telephone System to Facilitate the Distribution of Controlled Substances” after an investigation by the U.S. Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative.
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Waterville Man Sentenced to More Than 15 Years for Cocaine and Oxycodone TraffickingRead 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 Maurice
McCray, 34, of Waterville, Maine, was sentenced today in U.S. District Court in Bangor by
Chief Judge John A. Woodcock, Jr. to 188 months in prison and six years of supervised release
for conspiracy to possess with intent to distribute and distribute oxycodone and 500 grams or
more of cocaine. McCray pled guilty on March 26, 2013.Court records reveal that between January 1, 2012 and March 17, 2012, McCray obtained
over 500 grams of cocaine and over 6500 oxycodone tablets from New York City, transported
them to Waterville himself or using numerous couriers, and distributed them in Kennebec and
Somerset Counties.
In reviewing McCray’s nearly 20 year criminal history, Chief Judge Woodcock noted
that the only time McCray was not breaking the law was when he was in jail. He added that drug
dealing was “a way of life and a business” for McCray who had some good personal qualities,
but no “moral compass.”
The case was investigated by the U.S. Drug Enforcement Administration; the U.S.
Department of Homeland Security – Office of Homeland Security Investigations; the Maine
Drug Enforcement Agency; the Maine State Police; the Police Departments of Waterville,
Augusta, Fairfield, Oakland, and Skowhegan; and the Somerset and Kennebec County Sheriff’s
Offices. The Kennebec and Somerset County District Attorney’s Offices and the Office of the
Maine Attorney General also provided assistance in the investigation.
U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies
noting that “this interstate drug trafficking organization was dismantled because local, state,
county and federal law enforcement agencies worked closely together.”Victor Man Sentenced for Failing to File Tax ReturnsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Christopher Wheeler, 47, of Victor, NY, who was convicted of willfully failing to file tax returns for 2007, 2008 and 2009, was sentenced by U.S. District Judge David G. Larimer to 10 months in prison, and ordered to pay a fine of $7,500. The defendant has paid restitution, penalties and interest to the Internal Revenue Service.
Assistant U.S. Attorney John J. Field, who handled the matter, stated that Wheeler had gross income of approximately $4.6 million in 2007, $5.6 million in 2008, and $1.6 million in 2009, but failed to file timely tax returns with the Internal Revenue Service to report this income. After search warrants were executed at his residence by the IRS, the defendant filed income tax returns for 2007, 2008 and 2009, and paid all taxes due and owing.
The sentencing is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
U.S. Attorney Presents Equitable Sharing Funds to Law Enforcement PartnersRead the Press Release
United States Attorney A. Lee Bentley, III, along with Michelle S. Klimt, Special Agent in Charge, Federal Bureau of Investigation and United States Marshal William Berger, today announce the distribution of more than $400,000 of criminally forfeited funds to seven law enforcement agencies for their participation in the successful federal prosecution of Dennis Devlin. Pursuant to the Department of Justice Equitable Sharing Program, the funds were distributed to the Volusia County Sheriff’s Office, the Daytona Beach Police Department, the South Daytona Beach Police Department, the Florida Department of Law Enforcement, the Florida Department of Financial Services, the St. Johns County Sheriff’s Office, and the Daytona Beach Shores Public Safety Department. The presentation of funds took place today at the Volusia County Emergency Operations Center in Daytona Beach.
In July 2011, Dennis Brian Devlin, of Daytona Beach, was sentenced to 15 years in federal prison for sexually exploiting a minor. According to court documents, on more than one occasion in January 2011, Devlin persuaded a 13-year-old child to engage in sexually explicit conduct at the Desert Inn in Daytona Beach. He then used an iPhone and video camera, to take sexually explicit pictures and video of the child. On February 2, 2011, agents executed a federal search warrant at the Desert Inn where Devlin lived and found several iPhones and numerous CDs and DVDs concealed in the ceiling of Devlin's bathroom that contained sexually explicit images of the child and other images depicting child pornography.
As part of Devlin's sentence, the court ordered Devlin to forfeit his interest in the Desert Inn, because he had used the hotel to facilitate the crimes for which he was convicted. The forfeited funds were obtained from the sale of the Desert Inn.
The titled owner of the Desert Inn, Deslin Hotels, Inc., filed a claim to contest the forfeiture of the hotel because it alleged that Devlin did not have an interest in the hotel. After several months of litigation, a settlement was reached wherein Deslin Hotels, Inc. conceded to the forfeiture of $1,552,588.62, which represents Devlin's interest in the proceeds obtained from the recent sale of the Desert Inn.
Under federal forfeiture laws, criminals can be stripped of assets that were used illegally or purchased with proceeds of illegal activity. The Asset Forfeiture Program takes the profit out of crime and the Equitable Sharing Program provides crime fighting resources to state and local law enforcement. Asset forfeiture and equitable sharing are valuable law enforcement tools that send a clear message that crime does not pay.This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Karen Gable. The forfeitures were handled by Assistant United States Attorney Nicole M. Andrejko. The U.S. Marshals Service was responsible for depositing and distributing the forfeited funds.
The various law enforcement agencies involved provided critical assistance during the investigation, including identifying, locating, and interviewing victims, executing federal search warrants, and processing the evidence in the case.The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Two Members of Parkersburg Heroin Ring Sentenced in Federal CourtRead the Press Release
CHARLESTON, W.Va. – Two members of a heroin distribution ring operating in Washington County, Ohio and Wood County, West Virginia were sentenced today, announced United States Attorney Booth Goodwin. Cordaro “Chops” Johnson, 23, and Zina Wakefield, 28, previously pleaded guilty in August 2014 to distribution of heroin. Johnson was sentenced to 44 months in federal prison. Wakefield was sentenced to three years of probation.
This case was prosecuted as part of an investigation by the Parkersburg Police Department into a drug trafficking organization with ties to Marion, Ohio and Chicago, Illinois. Daquarri Coats, 21, and Keith Irons, 23 of Marion, Ohio, and Marion Felder of Upper Sandusky, Ohio are currently serving, or have served federal prison sentences. Gerri Rae Parker, 30, of Parkersburg awaits sentencing in February 2015.
Assistant U.S. Attorney, Joshua C. Hanks handled the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Two Lincoln Residents Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on November 18, 2014, two Lincoln residents were sentenced to federal prison for their roles in a conspiracy to distribute 500 grams or more of methamphetamine between January of 2012 and February of 2014. Senior United States District Judge Richard G. Kopf sentenced Jose Luis Ulloa, 43, to 21 years and 10 months (262 months) and Diane Renee Holbrook, 47, to 10 years and 10 months (130 months) respectively. Each will serve five years on supervised release following their prison terms. Judge Kopf ordered Holbrook’s sentence run concurrent to (at the same time as) a ten-year state sentence imposed in March of 2014 in Lancaster County District Court on a related charge of possession of a controlled substance and being an habitual criminal.
Information provided to law enforcement indicated that between January of 2012 and February of 2014, Ulloa and Holbrook were involved together in the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine in the Lincoln area. In June and July of 2013, Ulloa sold methamphetamine to an undercover officer on four occasions and had another person deliver methamphetamine to the officer on a fifth occasion for a total of approximately ½ ounce of methamphetamine. In December of 2013, a search warrant was executed at Ulloa’s Lincoln residence. During that search, officers found small amounts of methamphetamine and three firearms which had reportedly been received in trade for methamphetamine. In July of 2013, a search warrant was executed at Holbrook’s Lincoln residence, and officers found approximately ¾ of an ounce of methamphetamine in a safe in Holbrook’s bedroom.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.Two Individuals Charged with Stealing PersonalInformation of More Than 1,400 PeopleRead the Press Release
An indictment was unsealed yesterday charging two individuals with running an identity theft and false income tax return scheme, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Jeffrey Frost, Special Agent in Charge of the U.S. Secret Service, Detroit Field Office; Jarod Koopman, Special Agent in Charge, Internal Revenue Service, Criminal Investigations; and Chief Michael Patton, West Bloomfield Police Department.
This six-count indictment charges Markitta Washington, 29, of Hampton, Georgia, and previously of Farmington Hills, Michigan, and Martez Lear, 29, of Farmington Hills, with multiple counts of identity theft-related crimes.
According to the indictment, Washington, who worked for Henry Ford West Bloomfield Hospital and DMC Harper Hospital, removed patient records, including Personal Identifying Information (PII) and used that information to file false tax returns in other people’s names. During the execution of a search warrant at a residence shared by Washington and Lear, personal information belonging to approximately 1,400 people was recovered. The information included individuals’ names, dates of birth, and Social Security numbers. Counterfeit and re-encoded credit cards and gifts cards were also recovered. The indictment alleges that at least 305 victims whose PII was stolen had false tax returns filed on their behalf for tax years 2011 and 2012, resulting in a loss to the Internal Revenue Service of approximately $489,000. Most of the refunds were sent using prepaid debit cards, some of which were recovered from the home shared by Washington and Lear.
United States McQuade, stated, "Criminals should know that while technology has made it easier than ever for them to commit identify fraud, technology is also making it easier for law enforcement to catch them. We are making enforcement of identity theft a high priority because this crime has become so pervasive and can be so damaging to victims.”
“As reflected by the indictments, United States Secret Service in Detroit—along with our federal, state and local partners—remains dedicated to the pursuit and apprehension of those responsible for these serious identity theft cases,” stated Jeff Frost, Special Agent in Charge of the Secret Service Detroit Field Office. “The continued, multi-jurisdictional collaboration between law enforcement resulted in the indictment of these individuals for their involvement in these crimes, and we will maintain our resolve as we continue to thoroughly investigate this case.”
“Investigators in this case have been relentless. It should send a powerful message to the criminals within our community that identity theft crimes will not be tolerated and will be vigorously investigated and prosecuted,” stated IRS Special Agent in Charge Jarod Koopman.
"The entire West Bloomfield community is grateful for the great law enforcement partnership that has led to the continuing federal indictments related to these very serious crimes. As the investigation continues, this partnership remains devoted to bringing everyone that played a role in these incidents to justice," said Chief Michael Patton.
Washington was arrested in Georgia, where she appeared in court and was released on a personal bond to appear in court in the Eastern District of Michigan for arraignment on the charges. Lear is currently serving a sentence in the Michigan Department of Corrections for gun related charges.
The case was investigated by the Southeast Michigan Financial and Cyber Crimes Task Force, which is based at the Novi Police Department and includes U.S. Secret Service, Homeland Security Investigations, the U.S. Postal Inspection Service, and IRS Criminal Investigations agents, as well as state and local law enforcement officers from the West Bloomfield, Novi, Royal Oak, Southfield, and Troy Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Abed Hammoud with the United States Attorney’s Office for the Eastern District of Michigan in Detroit.
An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Hospitals have notified individual victims whose personal information was compromised. Patients of the Henry Ford West Bloomfield Hospital may call (313)874-9561with any questions. Patients of DMC Harper Hospital may call (313) 966-8818.
Two Convicted of Drug Trafficking ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Two West Virginia residents were convicted of drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced today.
Eric Holt, 43, of Lumberport, West Virginia, pled guilty to one count of “Distribution of Cocaine Base - Aiding and Abetting” following an investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative. He faces up to 20 years in prison and a fine of up to $1,000,000.00.
Terry J. Sutter, 51, of Mill Creek, West Virginia, pled guilty to one count of “Manufacture and Possess with Intent to Distribute and Distribute Marijuana” following an investigation by the National Forest Service and the Randolph County Sheriff’s Office. He faces up to five years in prison and a fine of up to $250,000.00.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Shawn Morgan prosecuted Holt and Assistant U.S. Attorney Steve Warner prosecuted Sutter on behalf of the government
U.S. Magistrate Judge John S. Kaull presided.
Three Sentenced for Selling Unauthorized WV LicensesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Three men were sentenced for their role in a scheme to produce and sell unauthorized West Virginia driver’s licenses, United States Attorney William J. Ihlenfeld, II, announced today.
Jesse Antonio Garcia, 28, of Chambersburg, Pennsylvania, was sentenced to 15 months in prison. He pled guilty in July 2014 to one count of Aiding and Abetting Unlawful Production of Identification Document.”
Marcos Hernandez Hernandez, 40, of the Dominican Republic, was sentenced to eight months in prison. He pled guilty in August 2014 to one count of “Aiding and Abetting Unlawful Production of Identification Document.”
Kermit Miller, 61, of Martinsburg, West Virginia, was sentenced to three years of probation. He pled guilty in February 2014 to one count of “Conspiracy to Defraud in Connection with Identification Documents”
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The U.S. Department of Homeland Security and U.S. Immigration and Customs Enforcement investigated.
U.S. District Judge Gina M. Groh presided.
NOTE: This press release was on 11/20/2014 to reflect the fact that the driver's licenses in question were produced without authorization.
Three Sentenced for Selling Crack CocaineRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Three men were sentenced for crack cocaine distribution, United States Attorney William J. Ihlenfeld, II, announced today.
Navarre Sowell, 38, of Martinsburg, West Virginia, was sentenced to 92 months in prison for his role in selling cocaine base. He will also forfeit $7,507.00. He pled guilty in August 2014 to a criminal Information charging him with one count of “Use of Telephone Facility to Distribute Cocaine Base.”
James Willard Johnson, 39, of Martinsburg, West Virginia, was sentenced to 51 months in prison for his role in selling cocaine base. He pled guilty in August 2014 to one count of “Aiding and Abetting the Distribution of Cocaine Base.”
Adrian Nicholas Sanchez, 30, of Cumberland, Maryland was sentenced to 18 months in prison for his role in selling cocaine and cocaine base. He pled guilty in August 2014 to one count of “Conspiracy to Distribute Schedule II Controlled Substances.”
Assistant U.S. Attorney Jarod Douglas prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
The DeKalb County School District Reaches Settlement Agreement with Federal Authorities for Harassment Based on Religion and National OriginRead the Press Release
The Department of Justice and United States Attorney’s Office reached a settlement agreement today with the DeKalb County, Georgia, school district to resolve the department’s inquiry into the district’s ability to prevent and effectively respond to peer-on-peer harassment based on national origin and religion.
The agreement ensures that the more than 100,000 students in DeKalb County school district (DeKalb County) will be protected by clear and comprehensive anti-harassment policies and procedures in compliance with federal civil rights laws. It also ensures that parents and students will have access to essential information, including discipline policies and procedures, in their preferred language.
In May 2013, DeKalb County, the Department of Justice and the United States Attorney’s Office reached a settlement agreement that resolved specific allegations of religious and national origin harassment of a Sikh student. At the time of the 2013 agreement, the Department of Justice, the United States Attorney’s Office and DeKalb County agreed to continue working collaboratively to resolve the remaining concerns regarding the content and implementation of the school district’s anti-harassment policies and the training of employees and students on such policies. Since then, DeKalb County has worked with the Justice Department and the United States Attorney’s Office to develop a plan for enhancing anti-harassment protections and increasing access to information for all parents and students; today’s agreement is the result of that collaboration.The agreement requires, among other things, that the DeKalb County school district develop and implement annual age and position appropriate trainings on religious and national origin harassment for all students, staff who interact with students (including administrators, teachers, counselors, and bus drivers), and district-level administrators who interact with students or who are involved in addressing harassment or bullying in the district. The training will include topics related to post-9/11 backlash and harassment that perpetuates negative stereotypes impacting the Sikh, Muslim, Arab-American and South Asian communities.
“We commend the DeKalb County School District’s commitment to ensuring that all students – including Sikhs, Muslims, Arabs, and South Asians – can grow and learn in a safe and supportive environment free from discrimination based on religion or national origin,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “DeKalb County school district has worked hand-in-hand with the department to identify and expand those policies that are successful at protecting kids while modifying those practices that need improvement, and we are confident that the district will continue its work to eliminate harassment in its schools.”
“Every child should be able to attend school without the fear of being taunted and physically assaulted based on his religion or national origin,” said United States Attorney Sally Quillian Yates for the Northern District of Georgia. “I am encouraged that DeKalb County School District has demonstrated a commitment to ensure that its schools are free of harassment.”
The enforcement of Title IV is a top priority of the DOJ’s Civil Rights Division. Additional information about the Civil Rights Division of the DOJ is available on its website at www.justice.gov/crt.
Assistant United States Attorney Aileen Bell Hughes handled this matter on behalf of the United States Attorney’s Office.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
The DeKalb County School District Reaches Settlement Agreement with Federal Authorities for Harassment Based on Religion and National OriginRead the Press Release
ATLANTA - The United States Attorney’s Office and the Department of Justice reached a settlement agreement with the DeKalb County, Ga., School District to resolve the Department’s inquiry into the district’s ability to prevent and effectively respond to harassment based on national origin and religion.
“Every child should be able to attend school without the fear of being taunted and physically assaulted based on his religion or national origin,” said United States Attorney Sally Quillian Yates. “I am encouraged that DeKalb County School District has demonstrated a commitment to ensure that its schools are free of harassment.”
“We commend the DeKalb County School District’s commitment to ensuring that all students – including Sikhs, Muslims, Arabs, and South Asians – can grow and learn in a safe and supportive environment free from discrimination based on religion or national origin,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “DeKalb County school district has worked hand-in-hand with the department to identify and expand those policies that are successful at protecting kids while modifying those practices that need improvement, and we are confident that the district will continue its work to eliminate harassment in its schools.”
The agreement ensures that the more than 100,000 students in DeKalb County School District (DeKalb County) will be protected by clear and comprehensive anti-harassment policies and procedures in compliance with federal civil rights laws. It also ensures that parents and students will have access to essential information, including discipline policies and procedures, in their preferred language.
In May 2013, DeKalb County, the Department of Justice (DOJ), and the United States Attorney’s Office reached a settlement agreement that resolved specific allegations of religious and national origin harassment of a Sikh student. At the time of the 2013 agreement, the DOJ, the United States Attorney’s Office, and DeKalb County agreed to continue working collaboratively to resolve the remaining concerns regarding the content and implementation of the school district’s anti-harassment policies and the training of employees and students on such policies. Since then, DeKalb County has worked with the DOJ and the United States Attorney’s Office to develop a plan for enhancing anti-harassment protections and increasing access to information for all parents and students; today’s agreement is the result of that collaboration.The agreement requires, among other things, that the DeKalb County School District develop and implement annual age and position appropriate trainings on religious and national origin harassment for all students, staff who interact with students (including administrators, teachers, counselors, and bus drivers), and district-level administrators who interact with students or who are involved in addressing harassment or bullying in the district. The training will include topics related to post-9/11 backlash and harassment that perpetuates negative stereotypes impacting the Sikh, Muslim, Arab-American, and South Asian communities.
The enforcement of Title IV is a top priority of the DOJ’s Civil Rights Division. Additional information about the Civil Rights Division of the DOJ is available on its website at www.justice.gov/crt.
Assistant United States Attorney Aileen Bell Hughes handled this matter on behalf of the United States Attorney’s Office.For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
- Tax Return Preparer Charged with Filing False Tax Returns
- Sugar Land Man Convicted of Possessing Child Pornography
Smith County Woman Sentenced to Prison for Student Financial Aid FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 32-year-old Flint, Texas woman has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mindy Ritch pleaded guilty on May 5, 2014, to student financial aid fraud and was sentenced to 54 months in federal prison today by U.S. District Judge Michael H. Schneider. Ritch was also ordered to pay restitution in the amount of $564,447.72.
According to information presented in court, from January 2010 to February 2013, Ritch fraudulently obtained funds from the Federal Pell Grant Program and the William D. Ford Direct Loan Program to which she was not entitled. Ritch was indicted by a federal grand jury on June 26, 2013.This case was investigated by the U.S. Department of Education – Office of Inspector General, U.S. Secret Service, U.S. Postal Inspection Service, and the Tyler Junior College Police Department. Assistant U.S. Attorney Nathaniel C. Kummerfeld prosecuted this case.
Sisters Charged in Separate Indictments for Allegedly Embezzling from Non-Profit OrganizationsRead the Press Release
Victim Non-Profits Provided Services to the Homeless, Disadvantaged Children,
and a Baltimore Community
Baltimore, Maryland - A federal grand jury has indicted Sharon Harrison, age 48, of Rosedale, Maryland, for embezzling more than $1.3 million from four non-profit organizations for which she worked and which received federal funding. Her sister, Kimberly Harrison, age 46, also of Rosedale, was charged in a separate indictment with embezzling funds from a federally funded non-profit organization she founded. She was also charged with bankruptcy fraud. Both indictments were returned today.The indictments 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; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General; and Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General.
“Non-profit organizations that receive federal funds have a legal duty to use them for the intended purpose,” said U.S. Attorney Rod J. Rosenstein. “Sharon Harrison and Kimberly Harrison allegedly helped themselves to federal funds intended to provide services for disadvantaged children and homeless families in Baltimore.”
According to her four-count indictment Sharon Harrison was a bookkeeper or fiscal manager for the following non-profit groups, all of which received federal funds to assist in their mission:
Health, Education, Advocacy, Life Inc. (HEAL) from 2005 to March 2011;
Between Friends, Inc. from September 2008 to November 2011;
Jobs, Housing & Recovery, Inc. (JHR) from May 20, 2013 to February 12, 2014; and Reservoir Hill Improvement Council (RHIC) from December 2012 to February 2014.HEAL and JHR provided services for the homeless in Baltimore City. Between Friends, founded by Kimberly Harrison, assisted disadvantaged children to find foster homes and provided services to the children and their foster families. RHIC assessed community needs, developed and implemented solutions on issues common to the Reservoir Hill Community in Baltimore.
The indictment alleges that over the course of her employment at HEAL, RHIC, JHR and Between Friends, Sharon Harrison embezzled over $1.3 million. The indictment seeks the forfeiture of $1,306,797.70, believed to be the proceeds of the scheme.
“When we learn about individuals who seek to enrich themselves at the expense of HUD programs designed to help out those who have a great need for help to survive, we vigorously investigate these individuals to ensure they are removed from a position to place the public and HUD programs at financial harm. We would like to thank our law enforcement partners from the FBI and the Inspector General's Office for the City of Baltimore for their superb investigative efforts,” said Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General, Mid-Atlantic Region.
Kimberly Harrison’s two-count indictment alleges that she embezzled over $100,000 from Between Friends, which she founded and operated from 2008 to 2012, including $60,264 which she stole from September 2011 to September 2012. Also, according to her indictment, when Kimberly Harrison filed for bankruptcy on June 28, 2012, she did not disclose the approximately $45,514 she had received from Between Friends, Inc., in the form of both checks made payable to Harrison directly, and checks made payable to her landlord for Harrison’s monthly rent payments, from June 2011 until the filing of her petition. Harrison also allegedly failed to list as an asset a 2009 Lexus RX350 that she purchased for $31,037.88 on June 23, 2012, just five days prior to filing her petition.
Sharon and Kimberly Harrison each face a maximum sentence of 10 years in prison for each count of federal program theft. Kimberly Harrison also faces a maximum penalty of five years in prison for bankruptcy fraud. An initial appearance has not been scheduled for either of the Harrisons in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, HUD-OIG and Baltimore Office of Inspector General, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Rockford Man Sentenced to 14 Years in Prison for Drug TraffickingRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced yesterday in federal court by U.S. District Judge Frederick J. Kapala on a federal drug trafficking charge. The defendant, MICHAEL CRAIG, 44, was sentenced to 169 months in federal prison, to be followed by 5 years of supervised release. Craig has been in federal custody since his arrest on March 15, 2013.
Craig pleaded guilty to the charge on March 21, 2014. According to the written plea agreement, from June 1, 2010 through January 5, 2012, Craig ran a heroin trafficking organization in Rockford and conspired with his co-defendants, Michael W. Charles, Elbert Charles Dixon, Melvin Bradley, Denise Lambert, Devon Zachary and Jose Melendez, to distribute more than 1 kilogram of heroin. The plea agreement noted that Craig and Melendez pooled their money and traveled together to obtain heroin from their suppliers in Chicago and that Craig then provided the heroin to Charles, Dixon, Zachery and others to distribute in Rockford. The plea agreement further noted that Lambert aided Craig in his heroin trafficking operation by storing Craig’s heroin and heroin trafficking proceeds at her apartment in Rockford. Craig also admitted as part of the plea agreement that he directed Charles and Dixon to distribute heroin to a witness who was secretly cooperating with law enforcement on two occasions in June 2011. Craig was also ordered to repay $2,300 in Abuy@ money used in the undercover operation.
Co-defendants Charles, Dixon, Bradley Lambert, Zachary and Melendez all previously pleaded guilty to conspiring to distribute heroin. On May 28, 2014, Charles was sentenced to 151 months’ imprisonment. On May 23, 2014, Dixon was sentenced to 70 months’ imprisonment. On May 9, 2014, Bradley was sentenced to 18 months’ imprisonment. On May 6, 2014, Zachery was sentenced to 124 months’ imprisonment. On November 13, 2014, Jose Melendez was sentenced to 135 months imprisonment. Lambert is awaiting sentencing and is facing a maximum sentence of 20 years’ imprisonment, in addition to a maximum fine of up to $1 million for her involvement in the conspiracy. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, & Explosives; Richard Meyers, Winnebago County Sheriff; Chet Epperson, Chief of the Rockford Police Department; and Hiram Grau, Director of the Illinois State Police.
The government is being represented by Assistant U.S. Attorney Joseph C. Pedersen.
Reward Money Offered for Information Leading to Arrest of Two Fugitives Charged with Multimillion Dollar International Cyber Fraud SchemeRead the Press Release
Earlier today, the U.S. State Department’s Transnational Organized Crime Rewards Program announced the offering of rewards for information leading to the arrest and/or conviction of Romanian fugitive Nicolae Popescu,1 the leader of an international organized crime syndicate that ran a multimillion dollar cyber fraud scheme, and Dumitru Daniel Bosogioiu,2 another Romanian fugitive charged with participating in the scheme. Up to $1 million is being offered for information on Popescu and up to $750,000 for information on Bosogioiu. Interpol has previously issued Red Notices to foreign law enforcement partners seeking assistance in the apprehension of these fugitives, and the FBI has also released “Wanted” posters to facilitate their arrests. Today, the FBI also announced the addition of Nicolae Popescu to the FBI’s Most Wanted Cyber Fugitive List (www.fbi.gov/wanted/cyber).
Defendants Nicolae Popescu and Dumitru Daniel Bosogioiu were originally charged in a criminal complaint with 11 other defendants for their participation in a cyber fraud conspiracy that targeted primarily American consumers on such U.S.-based websites as Cars.com and AutoTrader.com. The charges were brought by the office of Loretta E. Lynch, United States Attorney for the Eastern District of New York. Six of the defendants were arrested in a coordinated international takedown on December 5, 2012, and two other defendants subsequently voluntarily surrendered to the United States to face prosecution,3 but Popescu, Bosogioiu and others have remained at large.
As alleged in the complaint and subsequent indictment, the defendants participated in a long-term conspiracy to saturate Internet marketplace websites including eBay, Cars.com, AutoTrader.com, and CycleTrader.com with detailed advertisements for cars, motorcycles, boats, and other high-value items – generally priced in the $10,000 to $45,000 range – that did not actually exist. The defendants employed co-conspirators who corresponded with the victim buyers by email, sending fraudulent certificates of title and other information designed to lure the victims into parting with their money. The defendants also pretended to sell cars from nonexistent auto dealerships in the United States and created phony websites for these fictitious dealerships. As part of the scheme, the defendants produced and used high-quality fake passports to be used as identification by co-conspirators in the United States to open American bank accounts. After the “sellers” reached an agreement with the victim buyers, they would often email them invoices purporting to be from Amazon Payments, PayPal, or other online payment services, with instructions to transfer the money to the American bank accounts used by the defendants. The defendants and their co-conspirators allegedly used counterfeit service marks in designing the invoices so that they would appear identical to communications from legitimate payment services. The illicit proceeds were then withdrawn from the U.S. bank accounts and sent to the defendants in Europe by wire transfer and other methods.
The complaint and indictment describe the extent to which Popescu, in particular, led the conspiracy. Among other things, Popescu coordinated the roles of the various participants in the scheme – he hired and fired passport makers based on the quality of the fake passports they produced, supervised co-conspirators who were responsible for placing the fraudulent ads and corresponding with the victims, and ensured that the illicit proceeds transferred to the U.S. bank accounts were quickly collected and transferred to himself and others acting on his behalf in Europe. It is estimated that the defendants and their co-conspirators earned over $3 million from the fraudulent scheme.
According to the charging documents, Popescu and his close associate Bosogioiu demonstrated they were aware of the risks of prosecution in the United States. In a recorded conversation on October 23, 2011, Bosogioiu vowed to avoid the FBI. Popescu, meanwhile, predicted on July 28, 2011, “criminals will not be extradited from Romania to U.S.A. . . . [I]t will never happen.”
“As alleged, Popescu and his close associate Bosogioiu engaged in a pattern of pervasive criminal conduct, victimizing hard-working American consumers looking to purchase cars. They believed international borders would allow them to act with impunity. They were wrong. By now, Popescu and Bosogioiu have seen their co-conspirators brought here to account for their crimes. Today’s reward offered by the State Department makes clear that we are determined in our efforts to find these fugitives, no matter where they hide, and bring them to justice for the crimes they have committed against our citizens,” said United States Attorney Lynch. Ms. Lynch expressed her thanks to the U.S. State Department’s Transnational Organized Crime Rewards Program, under which the rewards are being offered.
FBI Assistant Director-in-Charge Venizelos said, “transnational organized crime is rooted in violence and corruption, undermines the integrity of our financial markets and puts the security of our nation at risk. As alleged, while hiding behind international borders, Popescu and Bosogioiu engaged in a systematic cyber fraud scheme targeting primarily American consumers through U.S.-based websites. Working in tandem, they jeopardized the personal security of online users who routinely conducted legitimate business on the internet. The sizeable reward money offered by the Department of State underscores the seriousness of these crimes and our joint commitment to putting these individuals behind bars where they can no longer target innocent victims. This case should serve as a reminder to those who camouflage their criminal acts behind the keyboard while preying upon unsuspecting consumers: we will continue to work with our domestic and international law enforcement partners to disrupt and dismantle criminal enterprises that pose a threat to our citizenry.”
The charges in the complaint and the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The State Department’s Transnational Organized Crime Rewards Program is responsible for offering rewards leading to the arrest and/or conviction of Popescu and Bosogioiu. More information about Popescu and Bosogioiu is available on the Transnational Organized Crime Rewards Program website at www.state.gov/tocrewards. Anyone with information on these individuals should contact the FBI via the Major Case Contact Center at 1-800-CALLFBI (225-5324), contact the nearest U.S. Embassy or Consulate, or submit a tip online at www.tips.gov. All information will be kept strictly confidential.
The offices of the FBI Legal Attachés in Romania, the Czech Republic, the United Kingdom, Canada, and Hungary were instrumental in coordinating efforts with the United States’ international partners, and the U.S. government thanks those partners in Romania, the Czech Republic, Hungary, the United Kingdom, Canada, and Germany for their close cooperation throughout this investigation. The Criminal Division’s Computer Crimes and Intellectual Property Section, Office of International Affairs and Asset Forfeiture and Money Laundering Section, as well as the International Organized Crime Intelligence and Operations Center, Internet Crime Complaint Center, Costa Mesa, Calif., Police Department, Orange County, Calif., District Attorney’s Office, and the New York City Police Department, also provided assistance in the investigation.
The government’s case is being prosecuted by Assistant U.S. Attorneys Nadia Shihata, Melody Wells and Claire Kedeshian of the U.S. Attorney’s Office for the Eastern District of New York.
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1 Popescu is also known as “Nae,” “Nicolae Petrache” and “Nicolae Stoichitoiu.”
2 Bosogioiu is also known as “Dmitru Bosogioiu,” “Dimitru Bosogioiu,” “Dmitru Busogioiu” and “Ioghi.”
3 Of these eight defendants, four have been convicted, three are engaged in criminal proceedings in the United States and one remains engaged in extradition proceedings in Canada.
popescuspanish3
popescuromanian3
bosogioiuspanish3
bosogioiuromanian3
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dumitru-daniel-bosogioiuPort Jervis, New York Man Sentenced to 57 Months' Imprisonment for Attempting to Rob A Convenience StoreRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Robert D. Mariani sentenced Jeremiah Anderson, age 32, of Port Jervis, New York, to 57 months’ imprisonment for attempting to rob a convenience store in Milford, Pennsylvania.
According to United States Attorney Peter Smith, Anderson previously pleaded guilty in federal court to entering the Hilltop Sunoco/Extra Mart, in Milford, Pennsylvania on October 5, 2011, wearing a mask, and attempted to rob it without success. Judge Mariani ordered that Anderson be placed on supervised release for two years following the service of his 57-month prison sentence.
The case was investigated by the Federal Bureau of Investigation, the Eastern Pike Regional Police Department, and the Pennsylvania State Police. Assistant United States Attorney John Gurganus prosecuted the case.
Ozark Man Sentenced to 30 Years in Prison for Child Sexual ExploitationRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ozark, Mo., man was sentenced in federal court today for using two minors to produce child pornography.
Dennis Lee Whitaker, 54, of Ozark, was sentenced by U.S. District Judge Brian C. Wimes to 30 years in federal prison without parole. The court also sentenced Whitaker to a life term of supervision following his release from prison.
On May 21, 2014, Whitaker pleaded guilty to two counts of sexually exploiting a minor in order to produce child pornography. Whitaker admitted that he used two minors, identified as “Jane Doe” and “John Doe,” to produce child pornography between Jan. 1, 2010, and Jan. 1, 2013, in Stone and Taney counties.
Whitaker also faces state charges – two counts of sexual exploitation of a minor child, two counts of child molestation and one count of statutory sodomy – related to the sexual exploitation of these victims.
On Jan. 10, 2013, law enforcement officers executed a search warrant at Whitaker’s residence. They seized three desktop computers, a laptop computer, a webcam and various computer equipment and electronic media storage devices. Investigators found sexually explicit images of the victims on the electronic media.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Stone County, Mo., Sheriff’s Department and the Ozark, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Orlando Man Convicted of Shining Laser at Orange County Sheriff’s Office HelicopterRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that a federal jury has found Joseph Parrott (31, Orlando) guilty of aiming the beam of a laser pointer at an aircraft in the special aircraft jurisdiction of the United States. Parrott faces a maximum penalty of five years in federal prison. His sentencing hearing is scheduled for February 2, 2015. Parrott was indicted on September 3, 2014.
According to testimony presented at trial, at approximately 3:00 a.m. on July 2, 2014, an Orange County Sheriff’s Office helicopter was responding to an attempted burglary in Orlando near East Colonial Drive. While flying to the scene, a bright green light, later determined to be a laser beam, repeatedly illuminated the helicopter’s cockpit. Deputies in the helicopter traced the source of the laser beam to a car on East Colonial Drive. Deputies on the ground pulled the car over. Evidence at trial proved that Parrott, a passenger in the car, knowingly aimed the laser beam at the helicopter at least four times.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Christopher LaForgia and Embry J. Kidd.
Old Orchard Beach Man Sentenced to 9 Years for Pharmacy RobberyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Billy
Schildroth, 37, of Old Orchard Beach, Maine, was sentenced today in U.S. District Court by
Judge Nancy Torresen to nine years in prison and three years of supervised release for pharmacy
robbery. He pled guilty on August 1, 2014.According to court records and evidence introduced at the plea hearing, on February 13,
2014, Kyle Desmarais drove Schildroth to a Rite Aid pharmacy located in Old Orchard Beach so
that Schildroth could rob the pharmacy. Schildroth absconded with Oxycontin (oxycodone)
and Suboxone (buprenorphine) after putting his hand inside his coat and telling the pharmacist
that he had “a gun and five bullets” and not to alert anyone or he would shoot the pharmacist in
the face.
In rendering the sentence, Judge Torresen noted the danger Schildroth’s actions posed to
both the pharmacist and the community and Schildroth’s criminal history that included a
residential burglary and two drug trafficking convictions.
On October 8, 2014, Desmarais was sentenced to 2½ years for aiding and abetting
pharmacy robbery.The investigation was conducted by the Federal Bureau of Investigation and the Old
Orchard Beach Police Department.New London Woman Sentenced to 46 Months in Federal Prison for Distributing HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HEATHER RANGHELLI, also known as “Barbie,” 24, of New London, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 46 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that Luis Ariel Capellan Maldonado received heroin from a Dominican-based source of supply through New York and then distributed the drug to his own customer base in and around New London.
During the course of the investigation, Cruz “Jay” Bonilla was identified as a heroin and cocaine customer of Luis Ariel Capellan Maldonado and Enrique Luciano. When Bonilla was incarcerated on parole charges with the state, he made arrangements from prison to have RANGHELLI, his girlfriend, take over his heroin distribution activities. RANGHELLI, who used Bonilla’s cell phone to sell heroin to Bonilla’s customers, regularly obtained 10 to 30 grams of heroin, first from Luciano and then directly from Capellan Maldonado.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
RANGHELLI was arrested on April 4, 2013. On December 13, 2013, she pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin. She has been detained since June 20, 2014, when her bond was revoked.Bonilla, Capellan Maldonado and Luciano all pleaded guilty and are serving prison terms.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal cases are being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
(203) 821-3722
[email protected]Nevada Man Sentenced to 11+ Years After Arrest with 80 Pounds of MethamphetamineRead the Press Release
WICHITA, KAN.- A man from Nevada was sentenced Tuesday to 135 months in federal prison after being stopped in June with 80 pounds of methamphetamine, U.S. Attorney Barry Grissom said.
Grissom commended the Kansas Highway Patrol and Assistant U.S. Attorney Aaron Smith for their work on the case.
Tomas Serrato-Jaimes, 31, Las Vegas, Nev., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted the Kansas Highway Patrol stopped his car June 20, 2014, on Interstate 70 near Hays, Kan. Investigators found 80 pounds of methamphetamine and 11 pounds of cocaine in the car.Miami-Area Hospital Chief Operating Officer Pleads Guilty in $67 Million Mental Health Care Fraud SchemeRead the Press Release
The former chief operating officer of a Miami-area hospital pleaded guilty today for his role in a mental health care fraud scheme that resulted in the submission of more than $67 million in fraudulent claims to Medicare by a state-licensed psychiatric hospital located in Hollywood, Florida, that purported to offer both inpatient and outpatient mental health services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.
Christopher Gabel, 61, of Davie, Florida, the former Chief Operating Officer (COO) of Hollywood Pavilion LLC (HP), pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay and receive health care kickbacks. Gabel was charged in an indictment returned on May 8, 2014.
According to Gabel’s admissions in connection with his guilty plea, between April 2003 and September 2012, HP submitted false and fraudulent claims to Medicare for treatment that was not medically necessary or not provided to patients. As COO during that time, Gabel supervised HP’s staff at both its inpatient and outpatient facilities, where Medicare beneficiaries were admitted to HP regardless of whether they qualified for mental health treatment, and were often admitted before seeing a doctor.
Gabel admitted that HP obtained Medicare beneficiaries from across the country by paying bribes and kickbacks to various patient brokers. Gabel instructed the patient brokers to falsify invoices and marketing reports in an effort to hide, and cover up the true nature of the bribes and kickbacks they were receiving from HP. From 2003 through August 2012, HP billed Medicare approximately $67 million for services that were not properly rendered, for patients that did not qualify for the services being billed, and for claims for patients who were procured through bribes and kickbacks. Medicare reimbursed HP nearly $40 million for those claims.
Karen Kallen-Zury, Daisy Miller, Michele Petrie and Christian Coloma were convicted at trial in June 2013 for their roles in this scheme. Kallen-Zury, HP’s former chief executive officer, was sentenced to 25 years in prison. Miller, the clinical director of HP’s inpatient facility, was sentenced to 15 years in prison; and Petrie, the head of HP’s intensive outpatient program, was sentenced to six years in prison. Coloma, the director of physical therapy for an entity associated with HP, was sentenced to 12 years in prison. Kallen-Zury, Miller and Petrie were ordered to pay nearly $40 million in restitution, and Coloma was ordered to pay more than $20 million in restitution.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Trial Attorneys Nicholas E. Surmacz, Andrew H. Warren and L. Rush Atkinson of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Miami-Area Hospital Chief Operating Officer Pleads Guilty in $67 Million Mental Health Care Fraud SchemeRead the Press Release
The former chief operating officer of a Miami-area hospital pleaded guilty today for his role in a mental health care fraud scheme that resulted in the submission of more than $67 million in fraudulent claims to Medicare by a state-licensed psychiatric hospital located in Hollywood, Florida, that purported to offer both inpatient and outpatient mental health services.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.
Christopher Gabel, 61, of Davie, Florida, the former Chief Operating Officer (COO) of Hollywood Pavilion LLC (HP), pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay and receive health care kickbacks. Gabel was charged in an indictment returned on May 8, 2014.
According to Gabel’s admissions in connection with his guilty plea, between April 2003 and September 2012, HP submitted false and fraudulent claims to Medicare for treatment that was not medically necessary or not provided to patients. As COO during that time, Gabel supervised HP’s staff at both its inpatient and outpatient facilities, where Medicare beneficiaries were admitted to HP regardless of whether they qualified for mental health treatment, and were often admitted before seeing a doctor.
Gabel admitted that HP obtained Medicare beneficiaries from across the country by paying bribes and kickbacks to various patient brokers. Gabel instructed the patient brokers to falsify invoices and marketing reports in an effort to hide, and cover up the true nature of the bribes and kickbacks they were receiving from HP. From 2003 through August 2012, HP billed Medicare approximately $67 million for services that were not properly rendered, for patients that did not qualify for the services being billed, and for claims for patients who were procured through bribes and kickbacks. Medicare reimbursed HP nearly $40 million for those claims.
Karen Kallen-Zury, Daisy Miller, Michele Petrie and Christian Coloma were convicted at trial in June 2013 for their roles in this scheme. Kallen-Zury, HP’s former chief executive officer, was sentenced to 25 years in prison. Miller, the clinical director of HP’s inpatient facility, was sentenced to 15 years in prison; and Petrie, the head of HP’s intensive outpatient program, was sentenced to six years in prison. Coloma, the director of physical therapy for an entity associated with HP, was sentenced to 12 years in prison. Kallen-Zury, Miller and Petrie were ordered to pay nearly $40 million in restitution, and Coloma was ordered to pay more than $20 million in restitution.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Trial Attorneys Nicholas E. Surmacz, Andrew H. Warren and L. Rush Atkinson of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manhattan U.S. Attorney Announces Charges Against Kentucky Resident for Maintaining Secret Swiss Bank AccountsRead the Press Release
U.S. Attorney Preet Bharara for the Southern District of New York and Acting Special Agent in Charge Shantelle P. Kitchen of the Internal Revenue Service-Criminal Investigation (IRS-CI) New York Field Office announced today the unsealing of an indictment against Peter Canale, a U.S. citizen and resident of Kentucky, for conspiring to defraud the IRS and evade taxes by establishing and maintaining secret, undeclared bank accounts in Switzerland. Canale was arrested this morning at his residence in Jamestown, Kentucky, and is expected to be presented later today in the U.S. District Court for the Eastern District of Kentucky. Canale is scheduled to be arraigned before U.S District Judge Katherine B. Forrest in Manhattan federal court on Dec. 3, 2014, at 3:00 p.m.
According to the allegations in the indictment unsealed today in Manhattan federal court:
Canale conspired with others – including Michael Canale, his brother, Beda Singenberger, a Swiss citizen who ran a financial advisory firm, and Hans Thomann, a Swiss citizen who served as a client adviser at UBS and certain Swiss asset management firms – to establish and maintain undeclared bank accounts in Switzerland and to hide those accounts from the IRS. Canale used a sham entity to conceal from the IRS his ownership of the undeclared accounts and deliberately failed to report the accounts and the income generated in the accounts to the IRS.
In approximately 2000, a relative of Canale’s who held an undeclared bank account in Switzerland died and left a substantial portion of the assets in the undeclared account to Canale and Michael Canale. Canale and his brother met with Thomann and Singenberger and determined they would continue to maintain the assets in the undeclared account for the benefit of Canale and his brother.
Thereafter, in approximately 2005, Canale, with Singenberger’s assistance, opened an undeclared account at the Swiss bank Wegelin. The account was opened in the name of a sham foundation formed under the laws of Lichtenstein to conceal Canale’s ownership. As of Dec. 31, 2009, the account held assets valued at approximately $789,000.
For each of the calendar years from 2007 through 2010, Canale willfully failed to report on his tax returns his interest in the undeclared accounts and the income generated in those accounts. For each of these years, Canale also failed to file a Report of Foreign Bank and Financial Accounts (FBAR) with the IRS, as the law required him to do.
Canale, 61, is charged with one count of conspiracy to defraud the United States, evade taxes, and file a false and fraudulent income tax return, which carries a statutory maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Bharara praised the outstanding investigative work of IRS-CI and also thanked the U.S. Department of Justice’s Tax Division for their assistance.
The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jason Cowley and Sarah Paul and Special Assistant U.S. Attorney Jorge Almonte of the Tax Division are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Announces Charges Against Kentucky Resident for Maintaining Secret Swiss Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations Division (“IRS-CI”), announced today the unsealing of an Indictment against PETER CANALE, a U.S. Citizen and resident of Kentucky, for conspiring to defraud the IRS and evade taxes by establishing and maintaining secret, undeclared bank accounts in Switzerland. CANALE was arrested this morning at his residence in Jamestown, Kentucky, and is expected to be presented later today in the United States District Court for the Eastern District of Kentucky. CANALE is scheduled to be arraigned before U.S District Judge Katherine B. Forrest in Manhattan federal court on December 3, 2014, at 3:00 p.m.
According to the allegations in the Indictment unsealed today in Manhattan federal court:
CANALE conspired with others – including his brother Michael Canale, Beda Singenberger, a Swiss citizen who ran a financial advisory firm, and Hans Thomann, a Swiss citizen who served as a client adviser at UBS and certain Swiss asset management firms – to establish and maintain undeclared bank accounts in Switzerland, and to hide those accounts from the IRS. CANALE used a sham entity to conceal from the IRS his ownership of the undeclared accounts, and deliberately failed to report the accounts and the income generated in the accounts to the IRS.
In approximately 2000, a relative of CANALE’s who held an undeclared bank account in Switzerland died and left a substantial portion of the assets in the undeclared account to CANALE and Michael Canale. CANALE and his brother met with Thomann and Singenberger and determined they would continue to maintain the assets in the undeclared account for the benefit of CANALE and his brother.
Thereafter, in approximately 2005, CANALE, with Singenberger’s assistance, opened an undeclared account at the Swiss bank Wegelin. The account was opened in the name of a sham foundation formed under the laws of Lichtenstein to conceal CANALE’s ownership. As of December 31, 2009, the account held assets valued at approximately $789,000.
For each of the calendar years from 2007 through 2010, CANALE willfully failed to report on his tax returns his interest in the undeclared accounts and the income generated in those accounts. For each of these years, CANALE also failed to file with the IRS a Report of Foreign Bank and Financial Accounts, or FBAR, as the law required him to do.
CANALE, 61, of Jamestown, Kentucky, is charged with one count of conspiracy to defraud the United States, evade taxes, and file a false and fraudulent income tax return, which carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of IRS-CI. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for their assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Jason Cowley and Sarah Paul and Special Assistant United States Attorney Jorge Almonte of the DOJ’s Tax Division are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
US v Peter Canale Indictment
Manhattan U.S. Attorney Announces Charges Against Inside Man Arrested in Connection with Daytime Armed Robbery of Diamond District StoreRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James Higgins, Acting Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a complaint charging RONDU FRISBY, a/k/a “Reef,” for his role in an armed robbery of a store in the Diamond District of Manhattan on November 11, 2014. FRISBY was arrested yesterday and was presented today in Manhattan federal court before the Honorable Ronald L. Ellis and detained on consent.
Manhattan U.S. Attorney Preet Bharara said: “Thanks to the dogged detective work of the NYPD and the ATF, and the determined efforts of career prosecutors in my Office's Violent and Organized Crime Unit, one of the people allegedly responsible for a brazen armed robbery is in custody. As alleged, the defendant and his accomplices used deceit to gain entry to a Diamond District jewelry store in broad daylight last week, but once inside, the tactics turned violent. With the arrest of Rondu Frisby we are closer to apprehending the other two men willing to use a pistol for profit.”
ATF Acting Special Agent in Charge James Higgins said: “I am extremely gratified that the investigators involved have swiftly apprehended and arrested at least one of the perpetrators in this investigation. This arrest stems from the investigative efforts of the newly formed ATF/NYPD robbery task force. Yesterday's arrest demonstrates the effectiveness of combining federal and local law enforcement resources and expertise in targeting violent offenders.”
Police Commissioner William J. Bratton said: “Through coordinated efforts with our law enforcement partners, Rondu Frisby’s role was quickly uncovered, and he was tracked down and charged. We will continue to pursue the remaining fugitives until they too are brought to justice.”
According to the Complaint unsealed today in Manhattan federal court, it is alleged that:
On November 11, 2014, two men carried out an armed commercial robbery of a jewelry store (the “Store”) on the 8th Floor of a building on 47th Street in the Diamond District of Manhattan. The Store is not open to the public but is a space where clients can view and purchase jewelry. RONDU FRISBY, the defendant, is a friend of the owner of the store (the “Owner”). FRISBY arrived at the Store moments before the robbery after having told the Owner that he was going to come by to help a friend pick out jewelry for the friend’s girlfriend. Just after FRISBY arrived, at approximately 2:20 in the afternoon – in broad daylight as the Veteran’s Day Parade proceeded nearby – one man (“Perpetrator-1”), dressed in a suit, carrying a bag, and appearing to be a messenger, came to the door of the store, while a second man (“Perpetrator-2”) served as a lookout in the hallway. FRISBY let Perpetrator-1 into the Store. After entering, Perpetrator-1 first said that he was there to serve the Owner of the Store with papers, and took two envelopes out of his bag before placing them on a desk. Perpetrator-1 then took out a black semiautomatic gun and pointed it at the Owner, FRISBY, and two others present and demanded that they give him all the jewelry in the Store. FRISBY and the others emptied more than $600,000 worth of jewelry from a safe and other locations and placed it into Perpetrator-1’s bag, before he and Perpetrator-2 left the scene. FRISBY, among others, was interviewed after the robbery and provided an account of what happened but did not state that he knew Perpetrator-1 or Perpetrator-2.
Perpetrator-1 was identified based on fingerprint analysis of the envelopes left in the store, and a cellphone number for Perpetrator-1 was then obtained. Cellphone analysis shows 25 phone communications between FRISBY and Perpetrator-1 on the day of the robbery, both before and after the robbery but not during it. In addition, surveillance footage from 47th Street just before the robbery shows FRISBY walking toward the Store, with Perpetrator-1 20 feet behind him, and Perpetrator-2 30 feet behind FRISBY. In particular, at 2:14 p.m., both FRISBY and Perpetrator-1 can be seen talking on their phones. Cellphone records show a call between FRISBY and Perpetrator-1 at that time.
A search of FRISBY’s apartment pursuant to a search warrant uncovered in excess of $100,000 in cash.
FRISBY, 37 of New York, New York, is charged with one count of conspiracy to commit robbery, which carries a maximum sentence of 20 years in prison, and one count of aiding and abetting the brandishing of a firearm in connection with the robbery conspiracy, which carries a maximum sentence of life in prison, with a seven-year mandatory minimum sentence. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the investigative work of the NYPD and the Joint Robbery Task Force, consisting of members of the NYPD, ATF, and the United States Marshals Service.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Russell Capone is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
US v. Rondu Frisby Complaint
Manhattan U.S. Attorney and FBI Assistant Director Announce Charges and Arrests in Multimillion-Dollar Debt Collection Scam That Targeted More Than 6,000 Victims in All 50 StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging WILLIAMS, SCOTT & ASSOCIATES (“WSA”), a debt collection company based in Norcross, Georgia, its owner JOHN TODD WILLIAMS, and six of its employees – BENITA CANNEDY, RUDY JAMES, ARTHUR COOK, CHRISTOPHER LENYSZYN, CLARK SMITH, and TITUS MCDOWELL – with conspiracy to commit wire fraud in connection with a nationwide debt collection scheme that targeted more than 6,000 victims throughout the United States. As alleged, the defendants contacted consumers whose debt WSA had purchased, and tried to trick and coerce them into making payments to WSA by making false threats and telling a host of lies. Among those lies were that WSA was part of a federal task force and that warrants would be issued for the consumers’ arrests if they failed to make immediate payment to WSA. In total, WSA obtained more than $4.1 million from its victims. Each of the individual defendants was arrested this morning in Georgia and will be presented later today in federal court in Atlanta.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants –third-party debt collectors acting under the guise of government authority– illegally and repeatedly threatened arrest, prosecution, and prison for countless Americans. Now, after years of threatening false arrest, these defendants are the ones who now find themselves in handcuffs, facing the loss of their own liberty. We are far from finished looking at the seedy side of debt collection. It affects too many people.”
FBI Assistant Director-in-Charge Venizelos said: “As alleged, this was nothing but a scam of total fabrication in order to coerce thousands into paying debts. This scheme took advantage of our poorest and most vulnerable citizens from all fifty states, including right here in New York City. The defendants were nothing more than bullies with bogus badges.”
According to the allegations contained in the Complaint unsealed today in Manhattan federal court:
Between approximately 2009 and May 2014, employees working for WSA routinely attempted to trick and coerce thousands of victims throughout the United States into paying millions of dollars in consumer debts through a variety of false statements and false threats. Employees of WSA typically used aliases, sometimes referring to themselves as “Detective” or “Investigator,” falsely advised consumers they had committed purported crimes such as “check fraud” or “depository check fraud,” and told consumers that if they failed to make an immediate payment to WSA to resolve the matter, a warrant would be issued for their arrest. WSA employees also falsely claimed that WSA had contracts with, or was otherwise affiliated with, certain federal or local law enforcement agencies, including the Department of Justice and the United States Marshals Service, as well as non-existent government agencies such as the “Federal Government Task Force” and the “DOJ Task Force.” To further create the appearance that it was affiliated with the federal government, WSA at times sent victims correspondence containing the seal of the United States Department of State and the following language: “Warrant Services Association, A Division of the Federal Government Task Force.”
When victims expressed doubt or sought more information, WSA employees intensified the pressure and created a heightened sense of urgency by imposing false deadlines. In one case, for example, a WSA employee told a victim he/she had 15 minutes to decide whether to make payment to WSA, and that if the victim elected not to, an arrest warrant would be issued for the victim’s spouse. In another instance, a defendant told a victim who advised that she was eight-months pregnant that she had two hours to pay WSA, or else the case would be forwarded to Los Angeles County and a warrant would be issued for her arrest.
Among other false statements, WSA employees claimed that WSA was a law firm, and that they would have the victims’ driver’s licenses suspended if those victims did not make payment to WSA. To falsely create an appearance of legitimacy, and further trick their victims into making payments, WSA employees routinely used legal terminology to invent legitimate-sounding, but completely bogus, explanations for the supposed imminent arrest of the victims, including for example, that the “statute of limitations” on the victims’ “civil legal rights” had expired and therefore the matter was now a criminal matter that could be resolved only by voluntary payment to WSA, or arrest. To frighten their victims, WSA employees warned that the arrest could take place at any time and any place, including at their homes and places of work.
In total, from approximately 2009 through approximately April 2014, WSA obtained more than $4.1 million dollars from over 6,000 victims in all 50 states.
After the FBI conducted a search of WSA’s office in Norcross, Georgia in May 2014, WILLIAMS shut down WSA and opened a new debt collection business. Based on victim complaints, employees of that debt collection business have been making the same threats and false statements to victims.
Scripts Recovered From the WSA Office
When FBI agents searched the WSA Office in May 2014, they recovered, among other things, scripts for calls with victims that contained numerous misrepresentations, including false threats of criminal charges and arrests, and false associations with the government. For example, the scripts included the following language:
“Who are we? We are a government task force set up to investigate and collect info on individuals involved in Depository Account Fraud and theft by deception.”
“This is investigator _____ I calling [sic] in reference to a complaint that has been filed through the national check fraud center were [sic] that stated that they have sent correspondents [sic] to ________ as well _______ and you have not responsed [sic] which has made your statue [sic] of limitations for your civil legal rights exhaust. That means that you are being pursued for one count of theft by deception and can be forwarded over to the local county for proceedings to start.”
“This message is for _______. My name is _______ from the investigation services of WSA. Currently there is a criminal complaint pending against you for theft of services. We are going ahead with legal proceedings today therefore we do need to speak with you immediately. Contact our office as soon as possible at [a particular telephone number] Ext ____. Thank you. Failure to respond will lead to criminal charges persude [sic] against you being forwarded over to your county.”
Recorded Calls Between The Defendants and Their Victims
During the search of WSA’s office, FBI agents also recovered computers containing recordings of thousands of calls between WSA employees and victims. Those recorded calls included the following:
- A call in which CANNEDY identified herself as “Chief Investigator Sharon Wright” and stated that she was investigating a criminal complaint against the victim for a payday loan the victim had taken out. When the victim told CANNEDY she was not currently working, CANNEDY responded that she had no choice but to forward the case to Los Angeles County and that Los Angeles County would issue a warrant for her arrest for “depository check fraud” and “theft by deception.” When the victim asked for customer service, CANNEDY responded: “Customer service? Ma’am you’re on the way to jail.” Later, the victim asked to see information to ensure that everything was legitimate, and CANNEDY responded, “Don’t take care of it, and you’ll see just how legit it is.” The victim said that she wanted to take care of the debt, was eight months pregnant, and did not want to go to jail. CANNEDY then responded, “I’m not going to go back and forth. I wouldn’t care if you were nine months pregnant. I have a job to do here.” CANNEDY told the victim she had two hours to pay WSA, and after that, the case would be forwarded to Los Angeles County for the issuance of an arrest warrant.
- A call in which JAMES told a victim he had an outstanding “restitution” of over $2,000, and when the victim said he had already paid it with a credit card, JAMES claimed the victim still had to pay WSA because “when you file for an ADR, you can’t use a debt instrument to pay a debt.” The victim said he did not have enough money to pay immediately and asked for documentation of the debt since he believed he had paid it already. JAMES told the victim that sending documentation would not stop the warrant from being processed. JAMES said that once he hung up the phone, he would put the case into “refusal status” and that the victim should have his attorney contact the office to set up an arraignment.
- A call in which COOK told a victim that her husband was being pursued for a “theft by receiving” charge to be forwarded to the local county and processed for a warrant. COOK advised that if her husband was “detained by county sheriffs, he would have to sit in reformatory” until he was tried.
- A call in which LENYSZYN told a victim that he was an investigator for “WSA” and was investigating “theft of services.” LENYSZYN explained that “what we do is we issue warrants and we do the suspension of driver’s license over here.” When the victim asked whether a warrant would be issued if he could only pay half the money, LENYSZYN said it could be a suspension of the victim’s driver’s license or a warrant and that “you don’t want any surprises either at the house or work, especially when it comes to that, your business your family and all that.
WILLIAMS, 48, of Norcross, Georgia, CANNEDY, 36, of Duluth, Georgia, JAMES, 32, of Lithonia, Georgia, COOK, 31, of Duluth, Georgia, LENYSZYN, 46, of Acworth, Georgia, SMITH, 39, of Norcross, Georgia, and MCDOWELL, 38, of Avondale Estates, Georgia, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked the Consumer Financial Protection Bureau (“CFPB”) for referring this case to this Office, and the Federal Trade Commission (“FTC”) for its assistance in this investigation. The FTC separately filed earlier this year a complaint against WSA and WILLIAMS. Mr. Bharara also acknowledged with appreciation the extraordinary partnership between this Office and both the FTC and CFPB in the Office’s ongoing effort to combat consumer fraud.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to:
http://www.usdoj.gov/usao/nys/victimwitness.html.
If you wish to report a crime by another debt collector, you may contact the FTC at 1-877-FTC-HELP. For guidance on coping with debt, and information about dealing with debt collection companies in particular, consider the following link to publications issued by the Federal Trade Commission:
http://www.consumer.ftc.gov/articles/0149-debt-collection.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Daniel Tehrani and Jennifer Gachiri are in charge of the prosecution, and Assistant United States Attorney Jonathan Cohen is in charge of the forfeiture aspects of the case.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. WSA, et al Complaint
Leader of A Long Island Chapter of the Ñetas Gang Sentenced to 37 Years’ Imprisonment in Connection with the Murders of Two 17-Year-Old Rival Gang MembersRead the Press Release
Earlier today, the leader of a Long Island chapter of the Ñetas street gang, Jason Cabral, also known as “J-Live,” was sentenced to a term of imprisonment of 37 years to be followed by five years of supervised release as a result of his guilty plea to the 2004 murders of Anthony Marcano and Fabian Mestres. The sentence was imposed in federal court in Central Islip, New York, by United States Senior District Judge Joanna Seybert.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“Ten years ago Jason Cabral ordered the robbery and murder of two 17-year-old young men. His minions carried out that order, binding the victims, wiping their bodies of forensic evidence, stuffing them into the trunk of car and driving them to their executions,” stated United States Attorney Lynch. “For eight years Cabral thought he had outsmarted law enforcement and gotten away with murder. From one slender lead, and with the tenacity of the FBI and NYPD, these horrific murders were solved and the killers brought to justice. We hope today’s proceedings bring some measure of relief to the victims’ families.” Ms. Lynch expressed her grateful appreciation to the Tampa Division of the FBI and United States Attorney’s Office, Middle District of Florida, for their cooperation and assistance in the investigation.
Police Commissioner William J. Bratton said, “This investigation illustrates the unwavering commitment of the law enforcement community who swore to protect and serve the people of this city from criminals like Jason Cabral. This common goal shared between the NYPD, FBI and the Department of Justice was the reason this criminal is now held accountable for these appalling murders. We hope that this sentence will bring some consolation to the victims’ families.”
As detailed during the plea proceeding and other court filings, Cabral targeted one of the victims, Anthony Marcano, because of his affiliation with a rival gang, the Latin Kings. On August 10, 2004, Cabral ordered his fellow gang members to rob and kill 17-year-old Marcano. As part of the plan, the defendant and his co-conspirators lured Marcano to a house in Brentwood. Marcano arrived at that house with 17-year-old Fabian Mestres, a fellow “Pee Wee” member of the Latin Kings street gang. Once inside the house, the victims were restrained with duct tape and their drugs, money and jewelry were stolen. The two victims were stuffed into the trunk of a car and driven to a warehouse in Queens where one of the defendant’s co-conspirators shot them with a shotgun. Mestres was shot once in the head, and Marcano was shot once in the head and once in the back of the neck. Marcano’s and Mestres’s dead bodies were found behind a warehouse in Queens the following day.
The government’s case was prosecuted by Assistant United States Attorneys Nicole Boeckmann and Christopher C. Caffarone.
The Defendant:
JASON CABRAL
Age: 37
Riverview, Florida
Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Armando Conrad Gonzales, 33, of Las Cruces, N.M., pleaded guilty this morning in federal court in Las Cruces to drug trafficking and firearms charges. Under the terms of his plea agreement, Gonzales will be sentenced to 100 months in federal prison followed by a term of supervised release to be determined by the court.
Gonzales was charged in July 2014, with two co-defendants who previously had been arrested. Charles Douglas Notbohm, Jr., 50, of Tucson, Ariz., was arrested in Lordsburg, N.M., on Feb. 21, 2014, after officers executed a search warrant on the vehicle in which he were traveling and found more than 116 grams of methamphetamine. On May 21, 2014, Notbohm and James Richard Reeves, 46, also of Tucson, were indicted and charged with conspiracy and possession of methamphetamine with intent to distribute. On July 16, 2014, Notbohm, Reeves and Gonzales were charged in a superseding indictment with conspiracy and possession of methamphetamine with intent to distribute. The superseding indictment also charged Gonzales with being a felon in possession of a firearm
Today, Gonzales pled guilty to Counts 1 and 3 of the superseding indictment, charging him with a methamphetamine distribution conspiracy and being a felon in possession of a firearm. In entering his guilty plea, Gonzales admitted making an agreement with Reeves to purchase four ounces of methamphetamine from Reeves which Reeves and Notbohm were to transport from Tucson to Las Cruces. Gonzales further admitted that on April 11, 2014, he possessed a firearm and ammunition even though he was prohibited from doing so based on his status as a convicted felon.
On Sept. 18, 2014, Reeves pled guilty to the two methamphetamine trafficking charges in the superseding indictment without the benefit of a plea agreement. At sentencing, Reeves faces a sentence of not less than five years and not more than 40 years in prison.
Notbohm pled guilty on Oct. 7, 2014, to a felony information charging him with conspiracy and possession of methamphetamine with intent to distribute. In entering his guilty plea, Notbohm admitted that on Feb. 21, 2014, he and Reeves were driving from Tucson to Las Cruces for the purpose of delivering methamphetamine to Gonzales. He further admitted that as the two men were driving through Lordsburg, they were stopped by a police officer who found more than 116 grams of methamphetamine in their vehicle. At sentencing, he faces a prison sentence of not more than twenty years.
All three men have been in federal custody since their respective arrests. They remain detained pending their respective sentencing hearings, which have yet to be scheduled.
This case was investigated by Deming office of Homeland Security Investigations and the Lordsburg Police Department, and is being prosecuted by Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office.
KCK Man Sentenced to 27 Years in Prison for Drug-trafficking Conspiracy, Fatal Shooting of Independence ManRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man was sentenced in federal court today for his role in a drug-trafficking conspiracy that resulted in the shooting deaths of three persons during a home invasion in Independence, Mo., and the shooting of a 12-year-old boy in the home.
Victims of the fatal shootings were Maria Hernandez, her son, Antonio Hernandez, and her boyfriend, Martin “Tomas” Dominguez-Gregorio. Maria Hernandez’s then-12–year-old son, Miguel Hernandez, was wounded in the shooting.
Raul Soto, also known as “Choch,” 23, of Kansas City, Kan., was sentenced by U.S. District Judge Beth Phillips to 27 years in federal prison without parole.
On July 29, 2014, Soto pleaded guilty to one count of participating in a conspiracy to possess 50 grams or more of methamphetamine with the intent to distribute, and one count of using a firearm during the drug-trafficking conspiracy, resulting in the death of Antonio Hernandez.
Soto admitted that he and several co-conspirators planned to rob Dominguez-Gregorio of as much as three pounds of methamphetamine. They traveled to his apartment in Independence in the early morning hours of Nov. 16, 2012. Soto carried a 9mm pistol. He and a co-conspirator entered a shed behind the house and bound and beat two occupants inside the shed, one of whom was Antonio Hernandez. They dragged Antonio Hernandez into the main house. They demanded drugs and money from the occupants, but the victims denied having any drugs or money.
Soto admitted that he shot and killed Antonio Hernandez. Soto also admitted that conspirators removed a motorcycle and a TV from the apartment.
Nine of Soto’s co-defendants have pleaded guilty: Antonio Cervantes, III, also known as “Taz,” 24, and Bobbi Jo Phillips, 39, both of Independence; Carlos Zambrano, Jr., also known as “Los,” 39, Amber R. Hart, 28, Martin Medrano, 24, and Paula K. Deardorff, 33, all of Kansas City, Mo.; Clayton J. Deardorff, 36, of Columbia, Mo., and Ryan J. Clayton, 32, and Stephanie K. Allinder, 21, addresses unknown.
This case is being prosecuted by Assistant U.S. Attorneys Charles E. Ambrose and Patrick C. Edwards. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Kansas City, Mo., Police Department.KC Man Sentenced to Life in Prison for Heroin Trafficking, Resulting in DeathRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced a Kansas City, Mo., man was sentenced in federal court today for his roles in a 10-year long drug-trafficking conspiracy that resulted in the death of one individual and the distribution of more than three kilograms of heroin in the Kansas City area.
Timothy L. Kirlin, also known as “Jim Curlon,” 34, was sentenced by U.S. District Judge Gary A. Fenner to life in federal prison without parole. The court also ordered Kirlin to pay $17,000 in restitution for funeral costs.
On April 1, 2014, Kirlin and co-defendant Matthew Davis, 48, of Kansas City, Mo., were each found guilty at trial of participating in a conspiracy to distribute 1,000 grams or more of heroin, as well as cocaine, from Jan. 1, 2002, to Feb. 3, 2012. Kirlin traveled to Dallas, Texas, to procure wholesale amounts of heroin and other drugs for resale in the Kansas City area. Davis was among the conspirators who received heroin and cocaine from Kirlin and distributed it to others.
On March 5, 2002, Kirlin distributed heroin to Joshua Webb, and the use of this heroin by Webb resulted in his death.
Kirlin traveled to Dallas at least once a month to purchase heroin. The usual amount that Kirlin would purchase in Dallas was four ounces of heroin, although he bought more on occasion. He sometimes transported the heroin back to Kansas City by hiding it in his rectum.
Co-defendant Patrick Holmes, 34, of Dallas, was Kirlin’s source for six years. Holmes, who was sentenced to seven years in federal prison for his role in the conspiracy, admitted that Kirlin purchased more than three kilograms of cocaine from him for resale in the Kansas City area during the time he was involved in the conspiracy.
Because Kirlin had been shot in the head, he was unable to drive himself, and would ride the bus to Texas and frequently enlist the aid of others in the conspiracy to drive him from place to place.
In addition to the conspiracy, Kirlin was found guilty of being a felon in possession of explosives. Kirlin, who has two prior felony convictions for possession of a controlled substance, was in possession of four sticks of explosives (along with manuals on how to build explosive devices) on Feb. 2, 2012.
Kirlin was also convicted of six counts of distributing heroin and one count of possessing heroin with the intent to distribute. Kirlin must also forfeit to the government $200,000, which represents the proceeds of his illegal drug trafficking, and $1,425 that was seized by law enforcement officers.
Davis’s sentencing hearing began today and was continued to Monday, Nov. 24, 2014. Nine co-defendants have pleaded guilty and been sentenced.
This case is being prosecuted by Assistant U.S. Attorneys Charles E. Ambrose, Jr., and Patrick Edwards. It was investigated by the Kansas City, Mo., Police Department.