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9 January 2015
Justice Department Intervenes in Lawsuit Involving Washington Redskins TrademarkRead the Press Release
Justice Department Will Defend Constitutionality of Trademark Statute
Earlier today, the government filed a notice of intervention in Pro-Football, Inc. v. Amanda Blackhorse, et al. notifying the court in the Eastern District of Virginia that it would defend the federal authorities of the U.S. Patent and Trademark Office’s U.S. Trademark Trial and Appeal Board (TTAB), the Justice Department announced.
In August 2006, five Native Americans, Amanda Blackhorse, Marcus Briggs, Philip Gover, Jillian Pappan and Courtney Tsotigh, sought the cancellation of six Washington Redskins trademark registrations under the Lanham Act on the grounds that the trademarks were disparaging to Native Americans at the time they were registered. A panel of the TTAB agreed and issued a June 18, 2014 decision that the registrations should be canceled.
Pro-Football Inc., the owner of the Washington Redskins, filed a complaint in U.S. District Court on Aug. 14, 2014, against the five individuals who had petitioned the TTAB for invalidation of the Redskins trademarks. Pro-Football Inc. is challenging the constitutionality of Section 2(a) of the Lanham Act, 15 U.S.C. § 1052(a) on the grounds that the act violates the First Amendment to the U.S. Constitution. The Lanham Act permits denial or cancellation of a trademark application if the trademark is disparaging or falsely suggests a connection with persons living or dead, institutions, beliefs or national symbols. The act further provides that if a private party believes that a trademark was improperly registered, the party may commence a review proceeding before the TTAB seeking to have the trademark canceled.
The United States will defend the constitutionality of the federal statute.
“The Department of Justice is dedicated to defending the constitutionality of the important statute ensuring that trademark issues involving disparaging and derogatory language are dealt with fairly,” said Acting
Assistant Attorney General Joyce R. Branda for the Civil Division. “I believe strongly in the rights of all Americans to celebrate and maintain their unique cultural heritage. Going forward, we will strive to maintain the ability of the United States Patent and Trademark Office to make its own judgment on these matters, based on clear authorities established by law.”
The United States is specifically authorized by federal statute to intervene in any federal action in which the constitutionality of an act of Congress is drawn into question. Intervention by the United States will not interfere with the timely adjudication of this action.
The case is being handled by the Justice Department’s Civil Division’s Federal Programs Branch with the assistance of the U.S. Attorney’s Office for the Eastern District of Virginia.
Justice Department Enters Settlement Agreement with State of Kansas on Topeka Correctional FacilityRead the Press Release
WASHINGTON – Today, the Department of Justice Civil Rights Division reached an agreement with the state of Kansas to reform the Kansas State Department of Corrections (KDOC) correctional practices at the Topeka Correctional Facility (TCF) to protect its women prisoners from sexual victimization. The agreement resolves allegations that the state subjects women prisoners at TCF to harm due to sexual abuse and misconduct by correctional staff and other prisoners in violation of their constitutional rights.
“This agreement will help ensure that women incarcerated at Topeka Correctional Center are safe and protected from sexual exploitation,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “As a result of this agreement, state officials will be required to protect women prisoners from sexual violence and abuse as is required under the Constitution.”
“This will go a long way toward reducing the harm women have experienced while being held at the TCF,” said U.S. Attorney Barry Grissom for the District of Kansas. “The state of Kansas and the KDOC are to be commended for working with the Justice Department to reform the state’s correctional practices.”
On Sept. 6, 2012, the Justice Department issued a findings letter concluding that women prisoners were subjected to a pattern or practice of sexual abuse. This finding was consistent with other state reports that recognized a long-standing problem of sexual assault in the prison. The findings report identified several systemic failures that led to the pattern of abuse. The state failed to employ accepted correctional practices designed to protect women prisoners from harm due to sexual abuse and misconduct. TCF did not have effective procedures to classify and manage predatory guards and prisoners. Further, TCF lacked effective investigative and grievance processes, and did not have enough officers, including female officers, to appropriately supervise and monitor prisoners.
The agreement requires numerous ways to remedy the deficiencies including the requirement that the state to abide by the Prison Rape Elimination Act National Standards. The agreement details that the state must mandate zero tolerance toward all forms of sexual abuse and sexual harassment and implement specific policies and procedures designed to prevent, detect, and respond to such conduct.
The state will work to prevent and detect sexual abuse of women prisoners by ensuring adequate levels of staffing supplemented by targeted video monitoring. The state will also implement a classification system specific to the female population at TCF, and maintain a risk assessment process that adequately identifies potential victims and predators. The state will maintain a grievance process and by provide multiple internal ways for prisoners to privately report sexual abuse and sexual harassment.
The state will also effectively respond to any allegations of sexual abuse or sexual harassment by adhering to guidelines and timeframes for initiating and concluding investigations; ensuring prompt corrective action following any administrative or criminal finding of sexual abuse or sexual harassment; and holding culpable staff accountable through disciplinary sanctions up to and including termination.
Finally, TCF will ensure that all staff are trained on their responsibilities to prevent sexual abuse, and on how to identify, detect, report, and respond to allegations of sexual abuse. The women prisoners at TFC will similarly be educated on these issues. Implementation of the agreement will be overseen by a monitor who will issue a compliance report every six months.
The Civil Rights of Institutionalized Persons Act authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison, or other correctional facility. Please visit the division website to learn more about this act and other laws enforced by the Civil Rights Division.
This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division, the U.S. Attorney’s Office for the District of Kansas and the leadership of the Governor of Kansas, the Kansas State Attorney General’s Office and the Kansas Department of Corrections.
Justice Department Enters into Settlement Agreement with the State of Kansas to Protect Prisoners at the Topeka Correctional Facility from Sexual Abuse and MisconductRead the Press Release
Today, the Department of Justice Civil Rights Division reached an agreement with the state of Kansas to reform the Kansas State Department of Corrections (KDOC) correctional practices at the Topeka Correctional Facility (TCF) to protect its women prisoners from sexual victimization. The agreement resolves allegations that the state subjects women prisoners at TCF to harm due to sexual abuse and misconduct by correctional staff and other prisoners in violation of their constitutional rights.
“This agreement will help ensure that women incarcerated at Topeka Correctional Center are safe and protected from sexual exploitation,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “As a result of this agreement, state officials will be required to protect women prisoners from sexual violence and abuse as is required under the Constitution.”
“This will go a long way toward reducing the harm women have experienced while being held at the TCF,” said U.S. Attorney Barry Grissom for the District of Kansas. “The state of Kansas and the KDOC are to be commended for working with the Justice Department to reform the state’s correctional practices.”
On Sept. 6, 2012, the Justice Department issued a findings letter concluding that women prisoners were subjected to a pattern or practice of sexual abuse. This finding was consistent with other state reports that recognized a long-standing problem of sexual assault in the prison. The findings report identified several systemic failures that led to the pattern of abuse. The state failed to employ accepted correctional practices designed to protect women prisoners from harm due to sexual abuse and misconduct. TCF did not have effective procedures to classify and manage predatory guards andand prisoners. Further, TCF lacked effective investigative and grievance processes, and did not have enough officers, including female officers, to appropriately supervise and monitor prisoners.
The agreement requires numerous ways to remedy the deficiencies including the requirement that the state to abide by the Prison Rape Elimination Act National Standards. The agreement details that the state must mandate zero tolerance toward all forms of sexual abuse and sexual harassment and implement specific policies and procedures designed to prevent, detect, and respond to such conduct.
The state will work to prevent and detect sexual abuse of women prisoners by ensuring adequate levels of staffing supplemented by targeted video monitoring. The state will also implement a classification system specific to the female population at TCF, and maintain a risk assessment process that adequately identifies potential victims and predators. The state will maintain a grievance process and by provide multiple internal ways for prisoners to privately report sexual abuse and sexual harassment.
The state will also effectively respond to any allegations of sexual abuse or sexual harassment by adhering to guidelines and timeframes for initiating and concluding investigations; ensuring prompt corrective action following any administrative or criminal finding of sexual abuse or sexual harassment; and holding culpable staff accountable through disciplinary sanctions up to and including termination.
Finally, TCF will ensure that all staff are trained on their responsibilities to prevent sexual abuse, and on how to indentify, detect, report, and respond to allegations of sexual abuse. The women prisoners at TFC will similarly be educated on these issues. Implementation of the agreement will be overseen by a monitor who will issue a compliance report every six months.
The Civil Rights of Institutionalized Persons Act authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison, or other correctional facility. Please visit the division website to learn more about this act and other laws enforced by the Civil Rights Division.
This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division, the U.S. Attorney’s Office for the District of Kansas and the leadership of the Governor of Kansas, the Kansas State Attorney General’s Office and the Kansas Department of Corrections.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Johnston in Great Falls on January 8, 2015, and entering pleas of Not Guilty were:
- JAIME GARCIA, a 29-year-old resident of California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charge contained in the indictment, GARCIA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Russell Country Drug Task Force, and Homeland Security Investigations. PACER Case Reference: 14-96
Appearing before U.S. Magistrate Judge Lynch in Missoula on January 8, 2015, and entering pleas of Not Guilty were:
- JOHN LOUIS CROSS, a 55-year-old resident of Polson appeared on charges of wire fraud and money laundering. If convicted of the most serious charge contained in the indictment, CROSS faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service. PACER Case Reference: 14-47
- SLOANE HAROLD HEATH, a 29-year-old resident of Missoula, appeared on charges of receipt of child pornography. If convicted of the count contained in the indictment, HEATH faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Plano Texas Police Department, the Federal Bureau of Investigation, and the Montana Internet Crimes Against Children Task Force. PACER Case Reference: 14-45
- WILLIAM DAVID HESELIUS, a 60-year-old resident of Helena, appeared on charges of felon in possession of firearms. If convicted of the charge contained in the indictment, HESELIUS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference: 14-08
- TRACY ANN HOHENSTATT, a 44-year-old resident of Phoenix, Arizona, appeared on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, HOHENSTATT faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-30
- ZACHARY RYAN MILLS, a 33-year-old resident of Phoenix, Arizona, appeared on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, MILLS faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-30
Appearing before U.S. Magistrate Judge Ostby in Billings on January 7, 2015, and entering pleas of Not Guilty were:
- RYAN ANTHONY CISLO, a 36-year-old resident of Billings appeared on charges of felon in possession of a firearm and possession of stolen firearms. If convicted of the most serious charge contained in the indictment, CISLO faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-125
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to,http://www.pacer.gov/register.html. To access the district court’s calendar, please go tohttps://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Individual Sentenced in Mortgage Fraud CaseRead the Press Release
Individual was sentenced for his role in illegal mortgage fraud kick-back scheme, which resulted in his and his co-conspirators fraudulently obtaining $3,000,000 in 12 fraudulent mortgage loans at Marina Oaks Condominiums.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made that announcement.
Jaime Sanchez, 43, was sentenced to 168 months in prison, followed by five years of supervised release. On October 29, 2014, Sanchez pled guilty to conspiracy to commit mail and wire fraud affecting a financial institution. Sanchez had been previously charged in connection with fraudulently obtaining mortgages for the purchase of 12 condominium units at Marina Oaks Condominiums in Fort Lauderdale, Florida.
According to the indictment from January 2007 through September 2008, in the Southern District of Florida and elsewhere, Sanchez and others conspired to recruit individuals who would be willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyer’s incentive” which in actuality was an indirect payment or “kick-back” to the buyers not disclosed to the lenders or reflected on any of the closing documents. Sanchez and others would then prepare materially false and fraudulent mortgage applications for the buyers on the Uniform Loan Application Form 1003 which contained false and fraudulent information as to material facts about the borrower’s credit worthiness in order to obtain mortgage money from lenders to fund the purchase of the Marina Oaks Condominiums. The conspirators would create false and fraudulent documents to support the mortgage applications. Once the loans closed, the conspirators would fraudulently and unlawfully divert portions of the mortgage proceeds for their own personal use and benefit.
Mr. Ferrer commended the investigative efforts of FHFA-OIG and BSO. This case was prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Houston Man Sentenced for Aggravated Bank RobberyRead the Press Release
HOUSTON - Anthony Michael Shaffer, 30, has been ordered to federal prison following his convictions of bank robbery and brandishing a weapon during the course of the bank robbery, announced U.S. Attorney Kenneth Magidson. A jury found Shaffer guilty Oct. 15, 2014, following two days of trial and less than an hour of deliberation.
Today, U.S. District Judge Ewing Werlein Jr., who presided over the trial, handed Shaffer a sentence of 78 months for the bank robbery and a consecutive 84 months for the firearms offense for a total 162-month sentence. Shaffer was also ordered to pay restitution and a $1,000 fine and must serve a five-year-term of supervised release following completion of the prison term. In handing down the sentence, the court considered written statements submitted by the victim and upwardly departed from the U.S. Sentencing Guidelines, specifically noting that he was concerned Shaffer had committed these crimes only a short time after serving a 10-year sentence in state court also for aggravated bank robbery.
At trial, evidence proved Shaffer robbed the Woodforest National Bank inside a Pearland Walmart on Dec. 11, 2013. Two bank tellers testified Shaffer entered the bank alone, approached a teller and filled out a note demanding “loose billz.” The tellers also testified Shaffer used and brandished a 9 MM Smith and Wesson pistol during the course of the robbery.
Other witnesses also testified and identified Shaffer as the robber.
Law enforcement officers were able to obtain video footage of the robbery from both Walmart and Woodforest National Bank and testified that Shaffer’s fingerprints were also found on the demand note.
Shaffer will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI, Pearland Police Department and Brazoria County Sheriff’s Office. Assistant U.S. Attorneys Julie Searle and Douglas Davis prosecuted the case.
Goodwin thanks law enforcement officers on National Law Enforcement DayRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today made the following statement thanking law enforcement officers on National Law Enforcement Appreciation Day:
“Friday, Jan. 9, 2015, is National Law Enforcement Appreciation Day. While what our law enforcement officers do is important every day, events across the nation encourage taking the time to reflect on the service of our law enforcement officers and thanking them for the sacrifices they make.
“Law enforcement officers do it all. Whether it’s helping a victim of a car wreck, apprehending a gun-wielding robbery suspect or stopping drug traffickers from ravaging our communities, we can count on them to respond.
“The noblest thing a person can do is give up his or her own safety and comfort for the good of those around them. Law enforcement officers have chosen sacrifice as a way of life. They’ve traded what might have been an easy job behind a desk for a hard one on the streets. They’ve traded what might have been a lucrative job for one with more modest financial rewards.
“Most of all, law enforcement officers have traded what might have been a safe job for one that’s dangerous.
“The work that law enforcement officers love, and perform so well, is not just a job – it’s a calling. I will always be inspired by their selfless and devoted service. The sacrifices they make day in and day out, especially the ultimate sacrifice made by their fallen comrades, is a reminder to us of what is the very best about our country. Let’s never forget to thank them, today, and every day.”
Furniture Company Used as Front for International “Fish” Smuggling OperationRead the Press Release
A Los Angeles-based furniture business, Kaven Company, Inc. (“Kaven”) and its owner, Kam Wing Chan, were arraigned yesterday on charges related to the smuggling of millions of dollars in endangered abalone, sea cucumber, and Totoaba into San Diego from Mexico.
The indictment alleges that Chan used Kaven, which was ostensibly an importer of Asian furniture, to purchase endangered fish in Mexico, import them into the United States, and then export them to Asia. For example, as noted in the charging documents, on various occasions, Chan smuggled: (1) 37 pounds of dried abalone (including the endangered white and black abalone) and 58 Totoaba swim bladders into the United States on October 9, 2013; (2) 20,006 pounds of sea cucumber on March 23, 2012; and (3) 1,014 pounds of abalone on January 15, 2013. The seafood was allegedly purchased in violation of Mexican law because the invoices presented did not properly demonstrate the origin of the fish.
In total, Chan and Kaven are charged with illegally exporting (from September 1, 2009 through May 30, 2013) more than $3 million in seafood to China. These exports were destined primarily to companies owned by one of Chan’s relatives.
All three smuggled fish are prized in Asia where they are considered "culinary delicacies," and often adorn the buffets of festival meals and are served at formal dinners. For example, dried-out versions of the 377 known tropical species of Sea Cucumber retail between $10 and $600 per kilogram in Hong Kong and on mainland China. One species has been reported to sell on the black market for $3000 per kilo.
According to scientists, Sea Cucumbers provide an important service for reef ecosystems. Among other things, they help to keep the sand in reef lagoons and sea grass beds fresh by turning them over, and by feeding on the dead organic matter that's mixed in with the sand, the nutrients they excrete can re-enter the biological web by algae and coral. Without the sea cucumbers, that sort of nutrient recycling could not occur. It's also thought that sea cucumbers help to protect reefs from damage due to ocean acidification. Feeding on reef sand appears to increase the alkalinity of the surrounding seawater.
Totoaba macdonaldi, also known as Cynoscion macdonaldi, is the largest species within the scaienidae family of fish. It can grow to more than 6-1/2 feet in length, weigh up to 220 pounds, and can live up to 30 years. These fish are found only in the Gulf of California, the narrow inlet between Baja California and the Mexico's mainland (also called the Sea of Cortez). The fish can be identified by its dusky silver color, elongated body, sharp snout, projecting lower jaw, and a slightly convex tail. According to the indictment, a single Totoaba swim bladder, highly prized for use in soups, can sell for $1400-$4000 in Mexico and up to ten time that amount in Asia.
Totoaba macdonaldi was included in the most protected list (Appendix 1) of species covered by the Convention on International Trade in Endangered Species (“CITES”) in 1976, and was listed as endangered under the U.S. Endangered Species Act in 1979. Both Mexico and the United States are signatories to CITES. It is a violation of law in both countries to trade in Totoaba or any part of a Totoaba.
Black abalone (Haliotis cracherodii) and white abalone (Haliotis sorenseni) are also species listed as endangered pursuant to the Endangered Species Act. Black abalone was listed as endangered on January 14, 2009, and white abalone was listed as endangered on May 29, 2001.
Mexican fisheries law (the General Law on Sustainable Fishing and Aquaculture) requires that the lawful origin of fisheries products be demonstrated by means of an arrival, harvest, production, or collection notice, an import permit, or a fisheries waybill (for transport). The failure to demonstrate such lawful origin is a violation of law.
“In collaboration with our international, federal and state law enforcement partners, NOAA will do everything in its power to make sure marine resources are protected and wildlife trafficking is shut down and those who attempt to profit from the exploitation of vulnerable and threatened species are brought to justice,” said Eileen Sobeck, Assistant Administrator for NOAA Fisheries.
Kaven Company and Kam Wing Chan are scheduled to appear before United States District Court Judge Anthony J. Battaglia on February 6, 2015, at 1:30 p.m. for a hearing on all motions.
DEFENDANTS Case Number: 14CR3662-AJB Kaven Company Los Angeles, CA Kam Wing Chan Age: 61 Monterey Park, CA CHARGESCount 1
INVESTIGATING AGENCIES
Conspiracy, in violation of Title 18, United States Code, Section 371; Maximum Penalty: 5 years in custody, the greater of a $250,000 fine or twice the illegal gain or loss and a $100 penalty assessment
Counts 2, 4, 5, and 7
Unlawful Importation of Wildlife, in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(a)(1)(A); Maximum Penalty: 5 years in custody, the greater of a $250,000 fine or twice the illegal gain or loss and a $100 penalty assessment
Counts 3 and 6
Smuggling/Importation Contrary to Law, in violation of Title 18, United States Code, Section 545; Maximum Penalty: 20 years in custody, the greater of a $250,000 fine or twice the illegal gain or loss and a $100 penalty assessment
Count 8
Unlawful Trafficking in Wildlife, in violation of Title 16, United States Code, Sections 3372(a)(1)(A) and 3373(d)(1)(B); Maximum Penalty: 5 years in custody, the greater of a $250,000 fine or twice the illegal gain or loss and a $100 penalty assessment
Forfeiture
In violation of Title 16, United States Code, Section 3374 and Title 18, United States Code, Section 981.National Oceanic and Atmospheric Administration, Office of Criminal Enforcement; U.S. Fish and Wildlife Service, Office of Criminal Enforcement
*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Fugitive Arrested 37 Years after Failing to Surrender to Serve Prison SentenceRead the Press Release
Eighty-one year old fugitive arrested 37 years after failing to surrender to commence a 10-month prison sentence.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Amos Rojas, Jr., United States Marshal for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
Robert Anton Woodring, formerly of Fort Lauderdale, Boyton Beach, and Pompano Beach, Florida, was arrested on charges of failing to surrender for service of sentence. In 1984, Woodring was indicted for failing to surrender in September 1977, to commence a 10-month sentence imposed in October 1975, for removing a yacht in order to prevent seizure by authorized persons. Woodring had also been sentenced in a related case to seven year imprisonment after a jury found him guilty of mail fraud and conspiracy to conspiracy to commit mail fraud. Woodring is set to be arraigned on January 14, 2015, at 10:00 a.m.
U.S. Marshals, with the assistance of the FBI and Mexican authorities, apprehended Woodring in Guadalajara, Mexico, in December 2014. On December 22, 2014, Woodring appeared in federal court in Los Angeles, California, where a U.S. Magistrate Judge ordered him detained pending trial as a risk of flight. Woodring waived his right to an identity hearing and removal hearing and agreed to be transported to Miami for further proceedings.
Mr. Ferrer commended the efforts of the U.S. Marshals Service and FBI in apprehending the defendant. The case is being prosecuted by Assistant U.S. Attorney Robert T. Watson.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Four Charged in Connection with Portland Crack Cocaine ArrestsRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Marco
Gordon, a/k/a “D,” a/k/a “Detroit,” 34, of Detroit, Michigan; William Weston, a/k/a “Wild,”
34, of Portland; Russell Gordon, a/k/a “Murder,” a/k/a “M1,” a/k/a “Black,” a/k/a “B,” 31, of Ansonia, Connecticut and Portland were arrested in Portland today and charged in U.S.
District Court by criminal complaint with possession with intent to distribute cocaine base, also known as, crack cocaine. Kristi Lowell, 30, of Portland, was also arrested in Portland today and charged by criminal complaint with maintaining a place to make, distribute and use controlled substances.According to court records, the charges arise out of the distribution of crack cocaine in
Portland. This morning, federal, state and local agents arrested the four while executing warrants. The defendants will make their initial appearances in the U.S. District Court in
Portland today.Russell Gordon faces between five and 40 years in prison and a $5,000,000 fine. Lowell faces up to 20 years in prison and a $500,000 fine. The other two defendants face up to 20 years in prison and a $1,000,000 fine, or up to 30 years in prison and a $2,000,000 fine if they have a prior felony drug conviction.
This case was investigated by the Federal Bureau of Investigation; the Portland, Biddeford and Lewiston Police Departments; the Maine Drug Enforcement Agency; the Maine
State Police; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Drug Enforcement Administration; and the Bureau of Alcohol, Tobacco, Firearms and
Explosives. The Portland Police Department Special Reaction Team assisted federal agents with the entry and arrests.A criminal complaint is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.
Former Kentucky Doctor Pleads Guilty to Filing False Tax Returns Claiming Millions in False Business ExpensesRead the Press Release
A former London, Kentucky, doctor pleaded guilty today to filing false tax returns on which he falsely reported millions in fictitious business expenses to reduce his taxable income, announced Deputy Assistant Attorney General David A. Hubbert for the Justice Department’s Tax Division.
According to the documents filed with the court, Dr. Visa Haran Sivasubramaniam owned and operated Hematology Oncology Physicians East (HOPE), where he offered medical oncology and hematology services. During a three year period, from 2007 through 2009, Sivasubramaniam earned more than $16 million in total income from HOPE, but he reported nearly $13 million worth of false and fictitious medical supply expenses to offset that income. Sivasubramaniam admitted that for 2008 and 2009, he signed false corporate tax returns for HOPE and false personal tax returns, which reported limited taxable income and ficticious losses from HOPE when he in fact knew that his net income was millions of dollars more. According to court documents, Sivasubramaniam owes more than $4.5 million in taxes.
Sivasubramaniam faces a statutory maximum sentence of six years in prison and a $500,000 fine. His sentencing is set for July 7 before U.S. District Judge Amul R. Thapar for the Eastern District of Kentucky.
This case was investigated by special agents of the Internal Revenue Service-Criminal Investigation. Trial Attorneys Yael T. Epstein and Thomas G. Voracek of the Tax Division are prosecuting the case.
Former Judge Pleads Guilty for Accepting Bribe During Campaign to be Elected to the Arkansas Court of AppealsRead the Press Release
A former state circuit judge in Arkansas pleaded guilty today for accepting a bribe in exchange for reducing a negligence jury verdict against a Conway, Arkansas, company.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and First Assistant United States Attorney Patrick C. Harris of the Eastern District of Arkansas made the announcement.
Michael A. Maggio, 53, of Conway, Arkansas, pleaded guilty to a one-count information charging him with bribery concerning programs receiving federal funds. A sentencing hearing before Chief U.S. District Judge Brian S. Miller of the Eastern District of Arkansas will be scheduled at a later date.
As part of his plea agreement, Maggio admitted that in 2013, he served as an elected circuit judge for the state of Arkansas, Twentieth Judicial District, Second Division, presiding over a civil matter in Faulkner County Circuit Court. The plaintiff in that matter, the estate of a decedent, filed a complaint alleging, among other things, that a company, its owner, and others had neglected and mistreated the decedent leading to the decedent’s death while the decedent was in their care. On May 16, 2013, a jury returned a verdict in the plaintiff’s favor, awarding damages against the sole-remaining defendant, the company, in the amount of $5.2 million. Approximately one month later, the company filed a motion for new trial or to reduce the amount of damages awarded by the jury to the plaintiff.
Maggio further admitted that he formally announced his candidacy for the Arkansas Court of Appeals on June 27, 2013, while the post-trial motions were pending. On July 10, 2013, Maggio entered an order reducing the verdict against the company to $1 million. Prior to that order, a fundraiser for Maggio’s campaign told Maggio that the company’s owner had committed money to support Maggio’s campaign. The fundraiser also communicated with Maggio regarding the pending post-trial motions. On July 9, 2013, the owner donated approximately $24,000 to Maggio’s campaign. As part of his plea, Maggio admitted that his decision to remit the judgment was improperly influenced by the donations that his campaign received from the company’s owner. Maggio further acknowledged that he attempted to delete text messages between the fundraiser and himself after the media became aware of the illicit contributions to his campaign.
The case was investigated by the FBI’s Little Rock Field Office, and is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas.
Former Judge Pleads Guilty to Bribery for Accepting A Bribe During His Campaign to Be Elected to the Arkansas Court of AppealsRead the Press Release
LITTLE ROCK - Patrick Harris, First Assistant United States Attorney for the Eastern District of Arkansas, along with Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that a former state circuit judge pleaded guilty to accepting a bribe in exchange for reducing a negligence jury verdict against a Conway, Arkansas business during his campaign to be elected to the Arkansas Court of Appeals.
Michael A. Maggio, age 53, of Conway, Arkansas, pleaded guilty before U.S. District Chief Judge Brian S. Miller to a one-count Information charging Maggio with bribery concerning programs receiving federal funds.
At his plea hearing in open court on December 9, 2015, and in his plea documents, Maggio admitted that in 2013 he served as an elected circuit judge for the State of Arkansas, Twentieth Judicial District, Second Division, presiding over a civil matter filed in Faulkner County Circuit Court. The plaintiff in that matter, the estate of a decedent, filed a complaint alleging, among other things, that a Conway business, its owner, and others had neglected and mistreated the decedent leading to the decedent’s death while he was in their care. In early May 2013, the lawsuit proceeded to trial, with the business as the only defendant. On May 16, 2013, a jury returned a verdict in the plaintiff’s favor, awarding damages against the business in the amount of $5.2 million. Approximately one month later, on June 17, 2013, the business filed a motion for new trial or remittiture, seeking, among other things, to reduce the amount of damages awarded by the jury to the plaintiff.
According to court documents, Maggio formally announced his candidacy for the Arkansas Court of Appeals on June 27, 2013, while the defendant’s post-trial motions were pending. On June 29, 2013, Maggio’s campaign fundraiser told him that the first $50,000 from the business was “on the way.” Maggio knew at the time that his money included donations from the business owner. On or about July 8, 2013, Maggio’s campaign fundraiser received approximately $24,000 in donations from the business owner. Two days later—and after the campaign fundraiser and Maggio had communicated extensively regarding the litigation and the campaign—Maggio reduced the plantiff’s verdict to $1 million.
As part of his plea, Maggio admitted that his decision to remit the judgment was improperly influenced by the donations that his campaign received from the business owner. Maggio further acknowledged that he attempted to delete text messages between the campaign fundraiser and himself after the contributions from the business owner were disclosed by the media.
The maximum potential penalty for a violation of Title 18, United States Code, Section 666(a)(1)(B) (Bribery Concerning Programs Receiving Federal Funds) is up to ten years imprisonment, up to three years supervised release, and a fine of up to $250,000 or twice the pecuniary gain or loss. The Court will set a sentencing hearing at a later date.
The case was investigated by the FBI’s Little Rock Field Office, and is being prosecuted by Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas and Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section.
Former Jersey City Police Officer Sentenced to Three Years in Prison for Cigarette Cargo Theft and ExtortionRead the Press Release
TRENTON, N.J. – A former Jersey City police officer was sentenced today to 36 months in prison for his role in stealing more than half a million cigarettes from a trailer and extorting $20,000 from a drug courier who turned out to be an undercover FBI agent, U.S. Attorney Paul J. Fishman announced.
Mario Rodriguez, 40, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of cargo theft and one count of conspiracy to commit Hobbs Act extortion under color of official right. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On July 3, 2013, Rodriguez and an individual working for the FBI as a confidential informant (CI) drove to a warehouse in Secaucus, New Jersey, to break into a trailer, steal cigarettes and sell the stolen goods to the CI’s associate. Law enforcement agents had previously parked the trailer at the warehouse and established surveillance of the area.
After using bolt-cutters to cut the lock off of the trailer, Rodriguez and the CI loaded 50 cases containing approximately 600,000 cigarettes and six televisions from the trailer into their vehicle. As they drove the stolen items to a parking lot in Staten Island, New York, Rodriguez made several phone calls seeking buyers for the TVs.
The pair met the CI’s associate – actually an undercover officer – in the parking lot to get the $5,000 payment for the cigarettes. Rodriguez kept $3,000 of the cash and three of the TVs.
On July 10, 2013, Rodriguez, the CI and an undercover law enforcement agent met in New Jersey and discussed the possibility of robbing a drug courier, who was actually another undercover officer. On July 24, 2013, the group met again in Staten Island to discuss the plan. The undercover officer told Rodriguez the courier would be delivering cocaine to them that day in exchange for a $20,000 payment. Rodriguez suggested a Jersey City mall parking lot due to an absence of surveillance cameras and called his associate, Anthony Roman, 48, of Jersey City, who was not a law enforcement officer, to help him with the robbery. Roman was charged with one count of Hobbs Act extortion.
Later that day, Rodriguez and Roman drove an SUV to the location where the CI and the drug courier were parked. Law enforcement agents had already established surveillance and staged the car containing $20,000 cash in a plastic bag. Rodriguez and Roman approached the car and identified themselves as law enforcement officers who were investigating the CI. They pretended to arrest the CI, threatened to arrest the drug courier and took the cash.
Later that day, Rodriguez, the CI and the undercover agent met in a hotel room at a Pennsylvania casino to split the cash.
In addition to the prison term, Judge Thompson sentenced Rodriguez to serve three years of supervised release and ordered him to pay a $2,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Special Investigations Unit of the Jersey City Police Department, under the direction of Acting Chief Joseph Connors; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to the charges. He also thanked the Bayonne Police Department, Waterfront Commission of New York Harbor, IRS-Criminal Investigation, U.S. Department of Labor Office of Inspector General, and the N.J. State Commission of Investigation for their significant contributions to the investigation.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges against Roman remain pending. They are merely accusations, and he remains innocent unless and until proven guilty.
15-008
Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey
Former Charter School Principal Sentenced in Connection with MCAS Cheating SchemeRead the Press Release
BOSTON – A former Springfield charter school principal was sentenced yesterday in U.S. District Court in Springfield for a federal felony in connection with assisting students to cheat on the MCAS.
Janet Henry, 42, was sentenced by U.S. District Judge Mark G. Mastroianni to one year of probation and a $500 fine. In October 2014, Henry pleaded guilty to an Information charging her with mail fraud.
According to the Information, in 2009 Henry became Principal of the Robert M. Hughes Academy Charter School in Springfield. In March and April 2009, the Massachusetts Comprehensive Assessment System (MCAS) tests were administered to the student body during which time Henry instructed teachers to give clues and other tips to students. For example, if teachers saw students entering nonsense answers, then they were to tell students to review their answers again. During preparation meetings, Henry stated to teachers that “this is where we earn our money,” and warned that the school could close or everyone would lose their jobs, if the test scores were not satisfactory. On April 16, 2009, upon the completion of the MCAS examinations, Henry falsely certified that the tests had been administered honestly.
United States Attorney Carmen M. Ortiz; Brian M. Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Northeast Region; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kevin O'Regan of Ortiz’s Springfield Branch Office.
Former California Resident Sentenced for Failing to Register as a Sex OffenderRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a former California resident was sentenced in federal court in Juneau for failing to register as a sex offender.
Jeremy Robert Reef, 39, a former resident of California, was sentenced by United States District Court Judge Timothy M. Burgess to five years of probation with the condition that he immediately registers upon release. Reef has been in custody since his arrest on July 1, 2014.
Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, stated that Reef was convicted of a misdemeanor sex offense in California in 2001. Reef was required to register for a period of 15 years as a result of the conviction. Reef previously failed to register on two occasions in California and was convicted for those offenses in 2008. Reef subsequently moved to Reno, Nevada in 2009, however, that was the last time he registered. In November 2013, Reef travelled to Alaska and failed to register with local authorities. Reef was contacted by local authorities in April 2014 and was advised of his responsibility to register. Reef again failed to register, which lead to his indictment and arrest in this case.
Judge Burgess noted the seriousness of the crime and that the sentence imposed should deter others from failing to register in the future.
This case was investigated by the U.S. Marshal Service.Former Army Sergeant Sentenced on His Guilty Plea to Money Laundering Conspiracy Resulting from Bribes Sergeant Received in AfghanistanRead the Press Release
MEMPHIS, TENN. - Earlier today at the federal courthouse in Memphis, Tennessee, a former First Sergeant with the U.S. Army was sentenced on his guilty plea to conspiracy to launder approximately $250,000 in bribe payments he received from Afghan contractors in Afghanistan.
United States Attorney for the Western District of Tennessee Edward L. Stanton III, Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division, and United States Attorney for the Eastern District of Tennessee William C. Killian made the announcement.
Jimmy W. Dennis, 44, of Olive Branch, Mississippi, and a former First Sergeant with the U.S. Army, was sentenced by U.S. District Court Judge Samuel H. Mays, Jr., to 41 months and was ordered to forfeit $115,000.
“Instead of serving his country, Jimmy Dennis betrayed it by accepting bribes and selfishly lining his pockets with hundreds of thousands of dollars,” said U.S. Attorney Stanton. “Today’s sentence should serve as a constant reminder that we and our law enforcement partners will not tolerate corruption of any kind and are determined to hold corrupt officials accountable.”
According to court filings, from March 2008 through March 2009, Dennis was an Army Sergeant assigned as a paying agent in the Humanitarian Aid Yard at Bagram Air Field, Afghanistan. Dennis was part of the team in the HA Yard that purchased supplies from local Afghan vendors for distribution as part of the Commander’s Emergency Response Program for urgent humanitarian relief requirements in Afghanistan. Dennis helped steer contracts to certain Afghan vendors in return for about $250,000 in cash bribes.
Further, according to court pleadings, Dennis smuggled the bribe money back to the U.S. hidden in packages addressed to his wife, his father, Jerry W. Dennis, and a former Army friend, James C. Pittman. Dennis sent about $80,000 to $100,000 to his father from Afghanistan in packages that contained toy “Jingle Trucks” (colorfully decorated trucks or buses used in Afghanistan and Pakistan). Dennis hid the money in the rear compartment of the trucks. Dennis also shipped a “Hope Chest” to his father, with about $100,000 in cash in a concealed compartment.
Also according to court documents, while on leave, Dennis met with Pittman, advised him that he had obtained money through kickbacks, and asked him for help laundering the funds. Pittman, owner of a landscaping business, agreed to “run through his company” these bribery proceeds. After returning to Afghanistan, Dennis sent about $60,000 to Pittman in Jingle Trucks. Dennis also arranged for his father to send about $20,000 to Pittman, who returned it to them in the form of “salary” checks from Pittman’s company.
Jerry Dennis, 69 or Horn Lake, Mississippi, was sentenced today by Judge Mays to two years probation, including six months of home confinement and ordered to forfeit $110,000. Pittman, 45 of Rossville, Georgia, was sentenced on September 8, 2014, in Chattanooga, Tennessee, by U.S. District Court Judge Harry S. Mattice, Jr., to one year and a day and ordered to forfeit $25,000.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction, FBI, Army Criminal Investigative Division, Defense Criminal Investigative Service, and Air Force Office of Special Investigation. The government’s case was prosecuted by Western District Assistant U.S. Attorney Frederick Godwin, Eastern District Assistant U.S. Attorney James Brooks, and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section.
Spanish Version
Florissant Chiropractic Clinic Owner Sentenced on Healthcare Fraud ChargesRead the Press Release
St. Louis, MO – MALIK MUHAMMED was sentenced to 15 months imprisonment, a restitution award of $153,101 payable to three automobile insurance companies and a $10,000 fine, for making three false statements to insurance companies about providing medical services to patients when no chiropractor was working at the clinic or the clinic was actually closed.
According to the court documents, Muhammed owned and operated the Your Accident and Injury Clinic (“YAIC”) located at 7320 Florissant Road in St. Louis County. Typically, he hired one chiropractor at a time to service all of YAIC’s patients. The clinic’s chiropractor worked part-time, usually every Tuesday and Thursday. Muhammed repeatedly billed automobile insurance companies for treatments and procedures provided to patients at his clinic when, in reality, no licensed health care provider was present, including multiple bills for services occurring on Sundays when the entire clinic was closed.
Muhammed, Florissant, MO, pled guilty to three felony counts of making false statements relating to health care matters last September. He appeared today for sentencing before United States District Judge John A. Ross.
This case was investigated by the Federal Bureau of Investigation, with assistance from the National Insurance Crime Bureau.
Federal Grand Jury Indicts Mohammed Hamzah Khan for Allegedly Attempting to Support Terrorism OverseasRead the Press Release
A southwest suburban Bolingbrook man who was arrested in October, was indicted by a federal grand jury for allegedly attempting to travel overseas to join a foreign terrorist organization operating inside Iraq and Syria, federal law enforcement officials announced today. The defendant, Mohammed Hamzah Khan, 19, a U.S. citizen, was charged with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL) in a single-count indictment returned late yesterday.
The indictment was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney for the Northern District of Illinois Zachary T. Fardon and Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation Robert J. Holley. The investigation is continuing, they said.
A date for Khan to be arraigned in U.S. District Court in Chicago has not yet been determined. Khan has been detained in federal custody since he was arrested on Oct. 4, 2014, at O’Hare International Airport by members of the Chicago FBI’s Joint Terrorism Task Force before he attempted to fly to Vienna, Austria, on his way to Istanbul, Turkey.
Khan was initially charged in a criminal complaint with attempting to provide material support to a foreign terrorist organization, and the indictment formalizes that same charge. According to the indictment, between February and Oct. 4, 2014, Khan attempted to provide material support and resources, specifically, personnel, to ISIL.
Attempting to provide material support to a foreign terrorist organization carries a maximum penalty of 15 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The Chicago JTTF is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Illinois State Police also provided significant assistance in the investigation.
The government is being represented by Trial Attorney Michael Dittoe of the National Security Division and Assistant U.S. Attorneys Matthew Hiller, Angel Krull, and Sean Driscoll.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Federal Grand Jury Indicts Mohammed Hamzah Khan for Allegedly Attempting to Support Terrorism OverseasRead the Press Release
CHICAGO — A southwest suburban Bolingbrook man who was arrested in October, was indicted by a federal grand jury for allegedly attempting to travel overseas to join a foreign terrorist organization operating inside Iraq and Syria, federal law enforcement officials announced today. The defendant, MOHAMMED HAMZAH KHAN, 19, a U.S. citizen, was charged with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL) in a single-count indictment returned late yesterday.
A date for Khan to be arraigned in U.S. District Court in Chicago has not yet been determined. Khan has been detained in federal custody since he was arrested on Oct. 4, 2014, at O’Hare International Airport by members of the Chicago FBI’s Joint Terrorism Task Force before he attempted to fly to Vienna, Austria, on his way to Istanbul, Turkey.
Khan was initially charged in a criminal complaint with attempting to provide material support to a foreign terrorist organization, and the indictment formalizes that same charge. According to the indictment, between February and Oct. 4, 2014, Khan attempted to provide material support and resources, specifically, personnel, to ISIL.
Attempting to provide material support to a foreign terrorist organization carries a maximum penalty of 15 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John P. Carlin, Assistant Attorney General for National Security; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation is continuing, they said.
The Chicago JTTF is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Illinois State Police also provided significant assistance in the investigation.
The government is being represented by Assistant U.S. Attorneys Matthew Hiller, Angel Krull, and Sean Driscoll, and DOJ Trial Attorney Michael Dittoe of the National Security Division.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Federal Court Bars Texas Woman and Related Businesses from Preparing Federal Tax ReturnsRead the Press Release
A federal court in Dallas has permanently barred Ricia Daniels and Ricia Daniels doing business as Ricia’s Convenience Tax Service and Ricia’s Convenience Tax Service Inc. from preparing tax returns for others, the Justice Department announced today.
U.S. District Judge Jorge A. Solis entered the order, which the defendants agreed to, on Jan. 9.
The order requires the defendants to turn over to the United States a list of all persons for whom they prepared federal tax returns since Dec. 1, 2013. The order further authorizes the United States to monitor the defendants’ compliance with the terms of the injunction.
The complaint alleged that the defendants prepared returns for their customers that falsely claimed improper or inflated deductions of medical expenses, unreimbursed employee business expense and other deductions on the customers’ Schedule A (Itemized Deductions), improper or inflated business expense deductions on Schedule C (Profit and Loss from Business Sole Proprietorship), improper or inflated education expenses, and improper or inflated fuel taxes in order to understate income and overstate the taxpayers’ refunds. The complaint also alleged that the defendants have filed tax returns without the permission of some customers.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Ex Sargento Del Ejercito Es Condenado Por Declararse Culpable De Conspiracion Por Lavado De Dinero Como Resultado De Sobornos Recibidos En AfganistanRead the Press Release
MEMPHIS, Tennessee. - El día de hoy en la corte federal de Memphis, Tennessee, un ex primero sargento del Ejército de los Estados Unidos fue condenado por declararse culpable de conspiración por el lavado de aproximadamente $250,000 en pagos de sobornos que recibió de los contratistas afganos en Afganistàn.
El Fiscal Federal para el Distrito Oeste de Tennessee Edward L. Stanton III, Fiscal General Auxiliar Leslie Caldwell de la División Criminal del Departamento de Justicia y el Fiscal de los Estados Unidos para el Distrito Este de Tennessee William C. Killian hicieron el anuncio.
Jimmy W. Dennis, de 44 años, de Olive Branch, Mississippi, y un ex primer sargento del Ejército de Estados Unidos, fue sentenciado por el Juez de Distrito de Estados Unidos, Samuel H. Mays, Jr., a 41 meses y se le ordenó una multa de $115,000.
"En lugar de servir a su país, Jimmy Dennis lo traicionó por aceptar sobornos y alinear egoístamente sus bolsillos con cientos de miles de dólares", dijo el Fiscal Federal Stanton. "La sentencia de hoy debe servir como un recordatorio constante de que nosotros y nuestros socios de las fuerzas del orden no toleraremos cualquier tipo de corrupción y estamos decididos a hacer que los funcionarios corruptos rindan cuentas."
De acuerdo con documentos de la corte, desde marzo de 2008 hasta marzo de 2009, Dennis era un sargento del Ejército asignado como agente de pago en la Ayuda Humanitaria (AH) de la yarda en Bagram Air Field, Afganistàn. Dennis era parte del equipo en la AH yarda que compraba suministros de proveedores locales afganos para su distribución como parte del Programa de Respuesta de Emergencia del Comandante para las ayudas humanitarias de las necesidades urgentes en Afganistàn. Dennis ayudó a dirigir contratos a ciertos proveedores afganos a cambio de unos $250.000 dólares en sobornos en efectivo.
Ademàs, según informes forenses, Dennis contrabando el dinero de los soborno de vuelta a los EE.UU. oculto en paquetes dirigidos a su esposa, su padre, Jerry W. Dennis, y un antiguo amigo del Ejército, James C. Pittman. Dennis envió alrededor de $80,000 a $100,000 a su padre desde Afganistàn en paquetes que contenían juguetes “Jingle Trucks” (camiones o autobuses decorado con cascabeles y colores utilizados en Afganistàn y Pakistàn). Dennis escondió el dinero en el compartimiento trasero de los camiones. Dennis también envió un "Hope Chest" (cajón) a su padre, con cerca de $100,000 dólares en efectivo en un compartimiento oculto.
También de acuerdo con documentos de la corte, mientras estaba de permiso, se reunió con Dennis Pittman, le informó que había obtenido el dinero a través de sobornos, y le pidió ayuda para el lavado de los fondos. Pittman, propietario de un negocio de jardinería, acordó "correr a través de su empresa" estos ingresos sobornados. Después de regresar a Afganistàn, Dennis envió alrededor de $60,000 a Pittman en “Jingle Trucks”. Dennis acordó con su padre enviarle alrededor de $20,000 a Pittman, quien se los regresó a ellos en forma de cheques "sueldos" de la compañía de Pittman.
Jerry Dennis, de 69 años, de Horn Lake, Mississippi, fue sentenciado hoy por el Juez Mays a dos años de libertad condicional, incluyendo seis meses de arresto domiciliario y se le ordenó entregar $110,000. Pittman, 45 de Rossville, Georgia, fue condenado el 8 de septiembre de 2014, en Chattanooga, Tennessee, por el Juez de Distrito de Estados Unidos Harry S. Mattice, Jr., a un año y un día y se le ordenó entregar $25,000.
Este caso fue investigado por el Inspector General Especial para la Reconstrucción de Afganistàn, el FBI, la División de Investigación Criminal del Ejército, Servicio de Defensa de Investigaciones Criminales y La Oficina de Investigaciones Especiales de la Fuerza Aérea. El caso del gobierno fue procesado por el Fiscal Federal Auxiliar del Distrito Oeste Frederick Godwin, el Fiscal Federal Auxiliar del Distrito Este James Brooks y el Abogado Litigante Daniel Butler, de la Sección de Fraude de la División Criminal.
Version en Inglés
Drug Dealer Sentenced to over 10 Years in PrisonRead the Press Release
Transported Heroin and Cocaine from Chicago to Baltimore
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Garry DeJesus Rojas, age 43, of New York, New York, today to 121 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin and cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; Porter County, Indiana Sheriff David Reynolds; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Colonel Joseph R. Fuentes, Superintendent of the New Jersey State Police.
According to Rojas’ plea agreement, since at least 2012, Rojas was responsible for transporting kilograms of heroin and cocaine from suppliers in Chicago to his Baltimore-based customer, and transporting the proceeds from prior drug sales from Baltimore to Chicago. To complete the exchanges, Rojas would swap vehicles with his Baltimore-based customer, take that vehicle to Chicago to obtain narcotics and deliver proceeds from prior narcotics sales, then swap vehicles again when he returned.On December 15, 2012, investigators tracked Rojas, driving a vehicle with Maryland license plates, to a hotel in Chicago. Rojas gave the keys to the vehicle to two other individuals who loaded the vehicle on a car carrier. Law enforcement subsequently executed a traffic stop on the car carrier. Following a K-9 alert to the presence of narcotics in the vehicle Rojas had been driving, law enforcement searched the vehicle and recovered $50,000 in cash from a hidden compartment in the roof, which were the proceeds of narcotics transactions.
On January 22, 2013, law enforcement again tracked Rojas to Chicago. Investigators saw Rojas load a suitcase into the trunk of a car with New York license plates, then drive to several locations in Chicago. As Rojas drove out of Chicago, law enforcement executed a traffic stop. After a K-9 alerted for the presence of narcotics, law enforcement searched the vehicle and recovered bags containing approximately 4 kilograms of cocaine and 2.8 kilograms of heroin.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department, Porter County Sheriff’s Office, Maryland State Police and New Jersey State Police, for their work in the investigation and thanked Assistant U.S. Attorney Kenneth S. Clark and Special Assistant U.S. Attorney Christopher Flagg, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who prosecuted this Organized Crime Drug Enforcement Task Force case.Defendants Sentenced in Cocaine Distribution Conspiracy CaseRead the Press Release
LUBBOCK, Texas — Nine defendants convicted for their respective roles in a large cocaine distribution conspiracy that operated in Lubbock, Odessa, and Borger, Texas, have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
The last defendant to be sentenced in the case, Javier Lopez Lujan, 47, most recently of Odessa, was sentenced this morning by U.S. District Judge Sam R. Cummings to 120 months in federal prison.
Other defendants were sentenced as follows:
Manuel Carrillo Ortiz, 38, 46 months
Martin Cardona Gutierrez, 46, 168 months
Refugio Navarrete Gutierrez, 34, 70 months
Efren Fabela Lopez, 34, 6 months
Jerardo Salcedo Garcia, 27, 37 months
Ismael Velasco, 36, 48 months
Israel Velasco, 36, 70 months
During the investigation, law enforcement seized approximately 15 kilograms of cocaine, $200,000.00 in drug proceeds, and 10 firearms in Lubbock, Odessa, and Borger.
The investigation was conducted by the Lubbock County Sheriff’s Office, Ector County Sheriff’s Office, Midland Police Department, Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and the U.S. Border Patrol.
Assistant U.S. Attorney Justin Cunningham prosecuted.
Danbury Man Charged with Running Ponzi SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned a 15-count indictment charging IAN PARKER BICK, 19, of Danbury, with fraud, money laundering and false statement offenses stemming from his alleged operation of Ponzi scheme. The indictment was returned yesterday and BICK was arrested at his home this morning.
According to the indictment, BICK was a principal and/or managing member of various Danbury-based entities, including This Is Where It’s At Entertainment, LLC, Planet Youth Entertainment, W&B Wholesale, LLC, and W&B Investments, LLC. Using these entities, BICK solicited investment funds from his friends, former classmates, acquaintances, and their parents by promising high investment returns over relatively short periods of time. BICK falsely represent to victim-investors that he could generate the high investment returns by using their funds to purchase electronics and electronic devices, such as iPhones and head phones, and resell the electronics via the Internet. BICK also falsely represented to certain victim-investors that he could generate high investment returns by using their funds to organize and promote various concerts, including concerts purportedly scheduled at various venues in Connecticut and Rhode Island. BICK falsely represented that he had made significant profits organizing and promoting concerts in the past. As part of the scheme, it is alleged that BICK entered into various investment contracts, including “Loan Agreements” and “Music Venture Participation Agreements,” with his victims.
The indictment alleges that BICK was not purchasing electronics and reselling any electronics on the Internet, and that the concerts he promoted were not generating significant profits as represented. BICK failed to invest the money as represented and instead diverted invested funds for personal expenses, including hotel stays and to purchase jet skis. BICK also used invested funds to issue payments, purportedly as “interest payments” and as “return of principal,” to certain victim-investors.
It is alleged that, through this scheme, BICK defrauded more than 15 investors out of a total of nearly $500,000.
The indictment further alleges that, during a June 2014 interview with U.S. Postal Inspection Service agents, BICK falsely stated, with respect to the use of the money that a certain victim-investor invested with Planet Youth Entertainment LLC, that “70 to 80 percent of the money had been on ‘artist deposits,’” when only a minimal portion, at most, of the invested funds had been used in any way connected with any artist deposits.
At his arraignment today before U.S. Magistrate Judge Joan G. Margolis in New Haven, BICK entered a plea of not guilty and was released on a $250,000 bond. As conditions of his release, BICK was ordered not to have any contact with victims and witnesses, and not to use any social media accounts.
The indictment charges BICK with 11 counts of wire fraud, which carry a maximum term of imprisonment of 20 years on each count, three counts of money laundering, which carry a maximum term of imprisonment of 10 years on each count, and one count of making a false statement to federal law enforcement, which carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with the assistance of the Danbury Police Department and the Connecticut Department of Banking. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
This case has been assigned to U.S. District Judge Jeffrey A. Meyer in Bridgeport.
Citizens with information that may be helpful to this ongoing investigation are encouraged to contact the FBI at (203) 777-6311.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Daiichi Sankyo Inc. Agrees to Pay $39 Million to Settle Kickback Allegations Under the False Claims ActRead the Press Release
Daiichi Sankyo Inc., a global pharmaceutical company with its U.S. headquarters in New Jersey, has agreed to pay the United States and state Medicaid programs $39 million to resolve allegations that it violated the False Claims Act by paying kickbacks to induce physicians to prescribe Daiichi drugs, including Azor, Benicar, Tribenzor and Welchol, the Justice Department announced today.
“The Anti-Kickback Statute prohibits payments intended to influence a physician’s ordering or prescribing decisions,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “The Department of Justice is committed to preserving the independence and objectivity of those decisions, which are cornerstones of our public health programs.”
The Anti-Kickback Statute was enacted to ensure that physicians’ medical judgment is not compromised by improper payments and gifts by other health care providers. The statute generally prohibits anyone from offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare and Medicaid.
In this case, the government alleged that Daiichi paid physicians improper kickbacks in the form of speaker fees as part of Daiichi’s Physician Organization and Discussion programs, known as “PODs,” which were run from Jan. 1, 2005, through March 31, 2011, as well as other speaker programs that were run from Jan. 1, 2004, through Feb. 4, 2011. Allegedly, payments were made to physicians even when physician participants in PODs took turns “speaking” on duplicative topics over Daiichi-paid dinners, the recipient spoke only to members of his or her own staff in his or her own office, or the associated dinner was so lavish that its cost exceeded Daiichi’s own internal cost limitation of $140 per person.
“Drug companies are prohibited from using lavish entertainment and padded speaker program payments to induce physicians to prescribe their drugs for beneficiaries of federal health care programs,” said U.S. Attorney Carmen Ortiz for the District of Massachusetts. “Settlements like this one show that the government will continue to pursue health care companies that use kickbacks to promote their products.”
As part of the settlement, Daiichi has agreed to enter into a corporate integrity agreement with the Department of Health and Human Services-Office of Inspector General (HHS-OIG), which obligates the defendants to undertake substantial internal compliance reforms for the next five years.
“Schemes such as this are particularly abhorrent,” said Inspector General Daniel R. Levinson for the U.S. Department of Health and Human Services. “Manufacturers and physicians who engage in them are cheating Medicare and Medicaid out of millions of dollars and threatening programs upon which many elderly and disabled Americans rely. My office will take whatever steps necessary to guard against improper alliances between manufacturers of drugs and those who prescribe them. Through our corporate integrity agreement we will be closely monitoring Daiichi.”
The settlement announced today stems from a complaint filed by Kathy Fragoules, a former Daiichi sales representative, under the whistleblower provisions of the False Claims Act, which authorize private parties to sue on behalf of the United States, and to receive a portion of any recovery. Fragoules will receive $6.1 million of the federal recovery.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.3 billion through False Claims Act cases, with more than $14.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation and litigation was conducted by the Civil Division, the U.S. Attorney’s Office for the District of Massachusetts, the U.S. Department of Veterans Affairs, the Department of Defense Criminal Investigative Service, HHS-OIG and the FBI. The claims settled by this agreement are allegations only and there has been no determination of liability.
The case is captioned U.S. ex rel. Fragoules v. Daiichi Sankyo, Inc., Civil Action No. 10-10420 (D. Mass.).
Colorado Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Brighton, Colorado, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on January 8, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Miguel Aguilar, age 20, was sentenced to 36 months of imprisonment, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Aguilar will also be required to register as a sex offender.
Aguilar was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2013 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls.
The conviction stemmed from Aguilar responding to a law enforcement-generated Internet advertisement which purported to offer young girls for sex, and Aguilar negotiated the terms of a sexual encounter with a fictitious 13 year-old girl. Aguilar then met with an undercover agent, who was posing as someone who could provide the young girl for sex. The negotiated price was a quarter-ounce of marijuana, and Aguilar had the marijuana in his possession.
The investigation was conducted by the South Dakota Internet Crimes Against Children Task Force, the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, the Pennington County Sheriff’s Office, and the Meade County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Aguilar was immediately turned over to the custody of the U.S. Marshals Service.Chicopee Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Chicopee man was sentenced in U.S. District Court in Springfield yesterday for failing to register as a sex offender.
Joseph Trombley, 35, was sentenced by U.S. District Court Judge Michael A. Ponsor to 30 months in prison, and five years of supervised release. In September 2014, Trombley pleaded guilty to failure to register as a sex offender.
From February 2013 to August 2013, Trombley traveled from Massachusetts to numerous other states and eventually settled in Colorado. During that period, Trombley had outstanding arrest warrants for probation violations in a number of criminal cases from Massachusetts state court. Following a 2006 conviction for unnatural acts with a child under the age of 16 in Northampton District Court, Trombley was required to register as a sex offender; however, he failed to do so in any of the states in which he resided between May 2013 and August 2013.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal of the U.S. Marshals Service, District of Massachusetts, made the announcement. The case was prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
California Resident Pleads Guilty for Leading a $16 Million Investment and Commodities Fraud SchemeRead the Press Release
California resident pled guilty today to his leading of a commodities and investment fraud scheme that yielded an aggregate amount of over $16 million in investments from victims for the purported purchase of precious metal positions and over-the-counter stock.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, and Commissioner Drew J. Breakspear, Florida Office of Financial Regulation (OFR), made the announcement.
According to the charging and plea documents:
From 2010 to December 2011, Liberty International Financial Services, Inc. (LIFS) was an investment firm in Fort Lauderdale with brokers who solicited investors for the purchase of purported precious metals positions in gold, silver, and palladium. Christopher Anzalone, 31, was a co-founder of LIFS and was responsible for overseeing LIFS brokers. Contrary to representations made to investors by LIFS brokers, LIFS invested less than $200,000 of the approximately $4 million provided by investors for the purchase of precious metals positions.
From mid-2011 through 2013, Liberty International Holding Corporation (LIHC) was a holding corporation in Fort Lauderdale whose stock traded in the over-the-counter market. LIHC brokers solicited investors for the purchase of LIHC stock. Anzalone was the co-founder of LIHC. Anzalone represented to brokers, and had brokers represent to potential investors, that LIHC had substantial assets, including a substantial position in metals held in a Panamanian depository. In truth and in fact, as Anzalone well knew, LIHC did not hold these positons or any assets of real value. Induced by misrepresentations made by LIHC brokers, investors purchased more than $9 million in LIHC shares.
From October 2012 through October 2013, Allied Financial Strategies, Inc. (Allied) was an investment firm operating in Miami. Allied brokers solicited investors primarily for the purchase of LIHC stock. Anzalone and co-conspirators induced investors to purchase LIHC shares by falsely and fraudulently representing to investors that a hedge fund or other large investment funds intended to purchase a substantial block of LIHC shares at an over-inflated price compared to the LIHC market price of those same shares. Anzalone used co-conspirators to falsely and fraudulently pose as other investors or hedge fund representatives to induce prospective investors to invest monies. Based on these false representations by these co-conspirators, investors wired over $3 million to accounts controlled by the co-conspirators.
Anzalone is scheduled to be sentenced before U.S. District Judge Federico A. Moreno on March 27, 2015, at 9:00 a.m.
Mr. Ferrer thanked the FBI, USPIS, and OFR for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger
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.
California Man Sentenced to Ten Years for Defrauding Delta and Northwest Air Lines of More Than $36 MillionRead the Press Release
ATLANTA – Michael Yedor has been sentenced to ten years in prison for his role in orchestrating a scheme to defraud Northwest and Delta Air Lines of more than $36 million.
“The scope and magnitude of this fraudulent scheme is astounding,” said United States Attorney Sally Quillian Yates. “The millions of dollars the defendants stole hurt the honest operations of an important company and its many customers, as well as other honest vendors who play by the rules.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of Yedor represents the end of not only a complex scheme to defraud Northwest Airlines and Delta Airlines but also the resulting extensive federal investigation into those involved. The FBI remains well positioned to investigate these types of complex white collar based crimes and will continue to remain responsive to the needs of the corporate sector when these cases are uncovered.”
According to United States Attorney Yates, the charges and other information presented in court: Yedor’s co-defendant Paul Anderson had been an employee of Northwest Airlines since 1979. In 2008, Delta Air Lines purchased Northwest. The two airlines merged into a single company in December 2009, at which time Anderson became a managerial employee of Delta, working in its Minneapolis, Minn., office.
From at least 1999 through 2013, Yedor and Anderson orchestrated a scheme to defraud Northwest and, later, Delta, by submitting numerous false invoices on behalf of a company, Airborne Voice and Data, purportedly owned by Yedor. The invoices sought payment from the airlines for goods provided and services supposedly rendered by Airborne Voice and Data. In fact, as both Anderson and Yedor knew, Yedor’s company had not provided any goods or services to the airlines.
In order to receive payment for the false invoices, Yedor sent the invoices to Anderson, who had the authority to approve them for payment. Once Anderson approved the invoices, falsely indicating that the goods or services had been received, the airlines issued payments to Airborne Voice and Data. In exchange for approving each of the invoices, Anderson received a portion of the proceeds of the fraud. The defendants acknowledged that they received at least $36 million from the airlines during the scheme.
Michael Yedor, 62, of Los Angeles, Calif., was sentenced by United States District Judge Timothy Batten to ten years in prison, to be followed by three years of supervised release. He was also ordered to pay restitution of more than $36 million, in addition to a personal money judgment of more than $36 million, and forfeiture of his interest in an array of real properties and luxury goods, including a Beverly Hills mansion and a 71.9 foot yacht. Yedor was indicted on June 10, 2014, and pleaded guilty on October 20, 2014, to conspiracy to commit mail fraud.
Co-defendant Paul Anderson pleaded guilty to conspiracy to commit mail fraud on September 15, 2014. He is scheduled to be sentenced on January 23, 2015.
Delta Air Lines cooperated fully with the investigation.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Glenn D. Baker, Jamie L. Mickelson, and Jenny Turner are prosecuting the case.
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/.
Broker Sentenced in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Richard L. Pearson, 57, of Miami, was sentenced today in West Palm Beach by U.S. District Judge Kenneth A. Marra to 24 months imprisonment, to be followed by one year of supervised release. On October 16, 2014, Pearson pled guilty to conspiracy to commit wire fraud in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
In connection with his guilty plea, Pearson admitted that he agreed to act as a broker for Rothstein’s settlements. Pearson would receive a sales commission from Rothstein derived from the money paid by the investor, and would pay a portion of that sales commission to RRA attorney David Boden for his assistance in the sale of these settlement. Beginning in September 2009, a group of investors (the “Investor Group”) began investing in the confidential settlement agreements following a meeting with Rothstein. Boden and Pearson agreed that the Investor Group would pay a sales commission directly to Pearson. The Investor Group was not informed by Boden or Pearson that they were also receiving an additional undisclosed sales commission from the money paid by the Investor Group to Rothstein. Pearson further admitted that, through material misstatements and omissions made to the Investor Group, Pearson and Boden caused the Investor Group to incur a loss of approximately $2,400,000.
Mr. Ferrer commended the investigative efforts of the IRS-CI and FBI. This case was prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
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.
Brian Foley Sentenced for Violating Federal Campaign Finance LawsRead the Press Release
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The United States Attorney for the District of Connecticut and the United States Postal Inspection Service announced that BRIAN FOLEY, 63, of Simsbury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to three years of probation, the first three months of which he must serve in a halfway house, for violating federal campaign finance laws. FOLEY also was ordered to pay a fine of $30,000, and to pay the cost of his community confinement.
According to court documents and statements made in court, in 2011 and 2012, Foley’s wife, Lisa Wilson-Foley, was a candidate for election to the U.S. House of Representatives from Connecticut’s Fifth Congressional District, and competing in a primary campaign for the nomination of the Republican Party. As a candidate for federal office, Wilson-Foley and her associates formed and registered with the Federal Election Commission (“FEC”) the “Lisa Wilson-Foley for Congress” committee in order to receive contributions and make expenditures on behalf of her campaign.
Brian Foley owns a Connecticut nursing home company and a number of other related companies, including a real estate company.
During the primary campaign, Foley, Wilson-Foley, former Connecticut Governor John Rowland and others conspired to conceal from the FEC and the public that Rowland was paid money in exchange for services he provided to Wilson-Foley’s campaign. As part of the scheme, Rowland proposed to Foley and Wilson-Foley that he be hired to work on the campaign. Wilson-Foley wanted Rowland to work on the campaign, but believed that because Rowland was a previously convicted felon, public disclosure of his paid role in the campaign would result in substantial negative publicity for Wilson-Foley’s candidacy. In order to retain Rowland’s services for the campaign while reducing the risk that his paid campaign role would be disclosed to the public, Foley, Wilson-Foley and Rowland agreed that Rowland would be paid by Foley to work on the campaign.
Foley, Rowland and others created and executed a fictitious contract outlining an agreement purportedly for consulting services between Rowland and the law offices of an attorney who worked for Foley’s nursing home company. Foley made regular payments to Rowland for his work on behalf of Wilson-Foley’s campaign and routed those payments from his real estate company through the law offices of the attorney. Rowland provided nominal services to Foley’s nursing home company in order to create a “cover” that he was being paid for those nominal services when, in fact, he was being paid in exchange for his work on behalf of Wilson-Foley’s campaign.
Between September 2011 and April 2012, Rowland was paid approximately $35,000 for services rendered to Wilson-Foley’s campaign. The payments originated with Foley and constituted campaign contributions, but were not reported to the FEC in violation of federal campaign finance laws.
In sentencing FOLEY below the recommended sentencing guidelines, Judge Arterton credited FOLEY’s extensive cooperation in the investigation and prosecution of this matter.
On March 31, 2014, Foley and Wilson-Foley each pleaded guilty to conspiring to make illegal campaign contributions.
On September 19, 2014, a jury found Rowland guilty of two counts of falsification of records in a federal investigation, one count of conspiracy, two counts of causing false statements to be made to the FEC, and two counts of causing illegal campaign contributions.
Wilson-Foley and Rowland await sentencing.
This matter was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorneys Liam Brennan and Christopher Mattei.
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(203) 821-3722 [email protected]Box Elder Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on January 6, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gerald Davis, a/k/a Jerry Davis, age 55, was sentenced to time served, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Davis pled guilty to the charge on September 25, 2014. The conviction stems from Davis failing to register as a convicted sex offender between September 2013 and March 2014.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Bloods Gang Associate Sentenced to Prison in Howard County Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Bamba Omar Saine, age 24, of Columbia, today to four years in prison, followed by five years of supervised release, for conspiring to participate in a racketeering conspiracy, in connection with the Bloods gang operating primarily out of Howard County, Maryland.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary L. Gardner; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.
Saine was identified as an associate of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.According to their plea agreements, Saine and co-defendant Christopher McGann are members of “Cut Throat Committee,” or “CTC,” a Bloods set founded by Kenneth Ragan-Armstrong and others who are either associated with and/or members of the Bloods. Saine and McGann began associating with the CTC in approximately 2010, and McGann has “CTC” tattooed on his body. Among his gang activities, Saine participated in the armed robberies of drug dealers with fellow gang members, including Christopher McGann. Fellow gang members, including Ragan-Armstrong, referred McGann to others to purchase firearms on multiple occasions, and McGann then used these firearms or those belonging to other gang members during armed robberies. McGann shared his firearms with other gang members, including Saine, who used firearms belonging to McGann in several robberies. McGann and Sained shared the drug proceeds of the robberies among themselves and with other gang associates.
Beginning in at least the spring of 2011, Saine and McGann began selling marijuana, including to fellow gang members. Intercepted telephone calls reveal McGann and Saine’s marijuana sales to gang member Giovanni Wright, as well as references by other gang members to “re-upping” from Bamba or Saine. “Re-up” refers to replenishing a supply of drugs. When McGann was arrested in February 2013 for marijuana distribution, Saine retrieved McGann’s firearm from a hidden location for safe keeping.
Christopher Lloyd McGann, a/k/a “Toker,” age 23, of Columbia, Maryland, was sentenced on December 19, 2014, to eight years in prison for the racketeering conspiracy and for possession and use of firearms in furtherance of a crime of violence.
To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland was sentenced to 205 months in prison, after admitting that he committed at least three armed robberies of individuals in which drugs, cash and/or other items were stolen; assaulted others; and sold crack cocaine, oxycodone and other drugs. Johnson also prostituted females, including a minor.
Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, was sentenced to 193 months in prison after admitting that he founded “Cut Throat Committee,” or “CTC,” a gang whose members are associated with and/or members of the Bloods gang. Ragan-Armstrong committed at least two armed robberies of individuals in which drugs, cash and/or other items were stolen. During one of the robberies, a home invasion in Laurel, Maryland, he pistol whipped the victim on the head resulting in serious bodily injury. Ragan-Armstrong regularly sold drugs, primarily marijuana. During his two day sentencing hearing, witnesses also testified about Ragan-Armstrong’s participation in a sexual assault that occurred in December 2010 at an apartment in Catonsville, Maryland. The Court credited the evidence of the sexual assault when it imposed Ragan-Armstrong’s sentence.
Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, admitted that he and a co-defendant robbed a rival gang member at gunpoint. In January 2013, Wright fired a gun at a victim’s residence as he and another co-defendant drove by in a truck. Two bystanders were outside and their car was damaged in the shooting. Wright also sold firearms with and to fellow gang members who were prohibited from possessing the firearms. Wright has agreed to be sentenced to 18 years in prison at his sentencing scheduled for January 16, 2015.
Co-defendants Ryan Gladden, a/k/a "Fats," age 27, of Wilkes Barre, Pennsylvania, was sentenced on January 7, 2015, to 92 months in prison. Gladden has been a member of the Bloods gang since 2006 and became a leader of the “Swann” set, a sub-group of the Bloods. Co-defendant Rouchell Chesson, a/k/a “Black,” age 31, of Washington, D.C., was sentenced on December 12, 2014 to 10 years in prison. Chesson was a leader in the “Tree Top Piru” or “TTP” set of the Bloods.
Anthony Preston, a/k/a “40,” or “Tone,” age 27, of Laurel, Maryland, admitted to directing or participating in at least 4 assaults, including an April 20, 2013 assault of a former gang member with a knife and mace in a convenience store. Preston is seen on the store’s surveillance video hitting the girlfriend of the gang member in her face and attempting to spray her with mace. Bystanders, including a young child, were injured by the mace. Preston was later overheard by law enforcement admitting to the assault and stating that if he’d had his gun, he would have killed the man. Preston also was a leader in drug trafficking, selling drugs, including crack cocaine and oxycodone, as early as 2007. Preston, who was previously convicted of armed robbery and attempted armed robbery, has agreed to be sentenced to 20 years in prison at his sentencing scheduled on February 6, 2015.
Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.
Baton Rouge Man Convicted of Fraud against Healthcare Entities and False Representation of a Social Security NumberRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LARRY D. BUTLER, age 49, of Baton Rouge, Louisiana, has pled guilty to two counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and false representation of a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(B), contained in a Superseding Indictment that was returned this past November. BUTLER also agreed to forfeit the proceeds of his fraud.
According to the stipulated factual basis that was presented to the Court in connection with BUTLER’s guilty pleas, BUTLER engaged in a scheme to defraud two healthcare entities – the Louisiana Health Cooperative, Inc. and the Mary Bird Perkins Cancer Center – from July 2013 through August 2014. As BUTLER admitted, he used false credentials, a false social security number, and other false documentation to conceal his criminal history and obtain the pay and benefits associated with being employed by the victims. BUTLER also stole from the victims through the misuse of company credit cards for personal expenses including furniture, travel, and meals. BUTLER acknowledged today in Court that he obtained more than $70,000 through the scheme.
At the conclusion of today’s hearing, the Court accepted BUTLER’s guilty pleas and remanded BUTLER to the custody of the United States Marshal. BUTLER’s sentencing hearing has not been scheduled.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Secret Service, and the East Baton Rouge Parish Sheriff’s Office, along with the cooperation and assistance of the District Attorney’s Office for the Nineteenth Judicial District. It is being prosecuted by Assistant United States Attorney Ryan Crosswell.
Ayer Massachusetts Man Sentenced to 51 Months in PrisonRead the Press Release
CONCORD, NEW HAMPSHIRE – Luis Pavao, 60, a citizen of Portugal and most recently a resident of Ayer, Massachusetts, has been sentenced in United States District Court for the District of New Hampshire to 51 months in prison after a jury found him guilty in an investment fraud scheme that involved the use of the mails and interstate travel, announced United States Attorney John P. Kacavas.
Pavao secured the trust of three couples who live in New Hampshire by pretending to be a licensed stockbroker. He then duped the victims into giving him more than $32,000 by falsely promising to invest their money in the stock market. While assuring the victims that their respective investments were earning substantial profits, Pavao used their money for his personal benefit.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Robert Kinsella.Armed Career Offender Sentenced to Fifteen Years in Federal PrisonRead the Press Release
BATON ROUGE, LA—United States Attorney Walt Green announced that yesterday U.S. District Judge Shelley Dick sentenced Joseph D. Melancon, age 45, to fifteen years imprisonment, five years of supervised release, restitution of approximately $42,200, and forfeiture of $40,975.
Melancon was sentenced following his conviction by a jury for conspiracy to steal firearms, possess and sell stolen firearms, and to possess firearms by a convicted felon; stealing firearms from a licensed federal firearms dealer; and possession of firearms by a convicted felon.
In April 2013, Melancon concocted a plan to steal firearms from the Hunter’s Run Gun Club, in Port Allen, Louisiana. He solicited Dustin Ray’s assistance to help him carry out this design. On April 13, 2013, Melancon and Ray traveled together from New Iberia to Port Allen, broke into the Hunters Run Gun Club, and stole approximately thirty-four (34) firearms. The Gun Club was approximately five hundred (500) yards from the West Baton Rouge Parish Sheriff’s Office and the West Baton Rouge Parish Prison. On their return to New Iberia, Melancon sold one of the stolen firearms and used the cash to purchase an amount of cocaine, which he and Ray consumed later.
A short time following their return to New Iberia, Melancon and Ray obtained Jeremy Smothers’ assistance in finding someone willing to purchase the firearms they had stolen from the Gun Club. Later that day, they drove to a location in New Iberia where Melancon and Ray sold most of those firearms to that individual.
On August 21, 2013, Ray pled guilty to conspiracy to steal firearms, possess and sell stolen firearms, and to possess firearms by a convicted felon; stealing firearms from a licensed federal firearms dealer; and possession of firearms by a convicted felon. Ray had an earlier felony conviction for possession of methamphetamine. On October 23, 2014, Judge Dick sentenced Ray to serve forty-eight (48) months in prison, a fine of $1000, and $42,200 in restitution.
On May 29, 2014, Smothers pled guilty to conspiracy to possess, sell, and dispose of stolen firearms. On October 27, 2014, Judge James J. Brady sentenced Smother to serve forty-eight (48) months in prison and pay restitution of $36,775.
U.S. Attorney Green stated: “Today’s sentencing will result in another criminal offender being taken off the streets for a significant amount of time. Convicted felons who steal and possess firearms pose a danger to every one of us. I appreciate all the efforts by the prosecutors and the agents to ensure justice was done and our communities were made safer.”
The investigation in this matter was conducted by the Bureau of Alcohol, Tobacco and Firearms, the West Baton Rouge Sheriff’s Office, and the Lafayette Parish Sheriff’s Office. The matter was prosecuted by Assistant U.S. Attorneys Reginald Jones and Robert W. Piedrahita who serves as Litigation Counsel.
Appalachian Community Bank Vice President Convicted of Bank FraudRead the Press Release
GAINESVILLE, Ga. - William R. Beamon, Jr., a/k/a “Rusty” Beamon, has been convicted by a federal jury of carrying out a scheme to defraud Appalachian Community Bank, in Ellijay, Ga.
“Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates. “Georgia leads the nation in bank failures since 2008, with 88 banks failing—including Appalachian Community Bank, the bank this defendant defrauded. These failures have significantly affected the economy, making these cases important to safeguard the nation’s financial health.”
“The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join our law enforcement colleagues in announcing the conviction of Mr. Beamon for his role in a fraudulent scheme that caused harm to Appalachian Community Bank,” said Fred W. Gibson, Principal Deputy Inspector General, Federal Deposit Insurance Corporation. “One of our top priorities is to investigate and prosecute cases where trusted insiders abuse their positions to undermine the integrity of the financial services industry. We are committed to preventing and addressing such threats to the safety and soundness of FDIC-insured banks throughout the country.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Bank fraud comes in many forms but when it comes in the form of the bank’s own vice president, it becomes all the more intolerable. Mr. Beamon, as a banking executive, should have protected his bank and its assets from fraud but instead he saw an opportunity to enrich his own bank account. The federal sentencing handed down to Mr. Beamon will be not only the closing note to one man’s banking career but also to the bank that he caused to fail.”
“Beamon was convicted after a jury found him guilty of using his position at TARP-applicant Appalachian Community Bank to defraud the bank in order to line his own pockets,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Beamon’s greed and self-dealing at the expense of the bank left holes in the bank’s books that the bank tried to fill when it applied for TARP funds. SIGTARP and our law enforcement partners will ensure that justice is served for perpetrators of fraud related to TARP.”
According to United States Attorney Yates, the charges and other information presented in court: Beamon was Vice President of Appalachian Community Bank in Ellijay, Ga. Due to its poor financial condition, Appalachian was forced to close on March 19, 2010, and the FDIC was appointed receiver.
Beamon was in charge of the Appalachian’s foreclosure liquidation department. In 2009, he represented to a real estate agent that he personally owned a house in Cumming, Ga. Beamon hired that agent to market and lease the property on his behalf. In truth, however, the property was owned by Appalachian and was part of the bank’s foreclosure inventory. Beamon’s real estate agent found someone to lease the property and negotiated a lease on Beamon’s behalf. Beamon then deposited into his personal bank account more than $20,000 in rent payments and security deposits that he obtained by leasing out the bank’s property as if he were the owner. Beamon also caused Appalachian to sell bank-owned properties to his wife and to a shell company that he owned—all at prices that were substantially below what other buyers were ready, willing, and able to pay the bank.
William R. Beamon, Jr., a/k/a “Rusty” Beamon, 54, of Atlanta, Ga., was convicted on five counts of bank fraud. Sentencing has not yet been scheduled.
This case is being investigated by the FDIC Office of Inspector General; the Department of Treasury, Special Inspector General Troubled Asset Relief Program; and the Federal Bureau of Investigation.
Assistant United States Attorneys J. Russell Phillips and Douglas W. Gilfillan are prosecuting the case.
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 Gainesville Division is http://www.justice.gov/usao/gan/.
Andrew Weissmann Selected as Chief of Criminal Division's Fraud SectionRead the Press Release
Andrew Weissmann has been selected as the Chief of the Criminal Division’s Fraud Section, announced Assistant Attorney General Leslie R. Caldwell.
“Andrew Weissmann is an extraordinary attorney with an incomparable dedication to the pursuit of justice,” said Assistant Attorney General Caldwell. “As his deep experience demonstrates, many of the top officials throughout the Department of Justice have come to rely upon his wise counsel over the years, and I am pleased to welcome him back to the Criminal Division.”
Weissmann has dedicated the majority of his 30-year professional career to public service and the Department of Justice. He returns to the Criminal Division after serving as the FBI’s general counsel under former Director Robert S. Mueller and, most recently, teaching criminal procedure and national security law courses and seminars at NYU School of Law. Before his tenure at the FBI, Weissmann was a partner at Jenner & Block in New York for five years, a member of its Management Committee, and co-chair of the firm’s White Collar Practice Group, where he worked on a broad range of matters including ones involving securities fraud, antitrust, health care fraud and the Foreign Corrupt Practices Act.
Prior to joining that law firm, Weissmann served as special counsel to the Director of the FBI. Before that he was the deputy director and then the director of the Enron Task Force from 2002 through 2005, where he oversaw the investigations and prosecutions of more than 30 individuals, including Jeffrey Skilling, Kenneth Lay, and Andrew Fastow, as well as the corporate prosecutions of Merrill Lynch and CIBC.
Weissmann began his career with the Department of Justice in 1991 at the U.S. Attorney’s Office in the Eastern District of New York, where he served in various leadership positions, including as chief of the Criminal Division, until joining the Enron Task Force. While at the U.S. Attorney’s Office, Weissmann tried more than 25 cases and was instrumental in bringing to justice high-ranking members of the Genovese, Colombo and Gambino crime families and combating the infiltration of organized crime on Wall Street.
During his tenure with the Department of Justice, Weissmann received many honors, including the Attorney General’s Award for Exceptional Service in 2006, Director’s Awards for Superior Performance in 1994, 1996, 1999 and 2000, and Special Achievement Awards in 2003 and 2004.
Weissmann joined the U.S. Attorney’s Office after working as an associate at Cleary Gottlieb Steen & Hamilton LLP. He served as a law clerk for the Hon. Eugene H. Nickerson in the U.S. District Court for the Eastern District of New York. He graduated magna cum laude from Princeton University, was awarded a Fulbright Fellowship to study at the University of Geneva, and graduated from Columbia Law School, where he served on its law review. Weissmann has also taught at Fordham Law School and Brooklyn Law School.
2nd Defendant Sentenced to 5 Years in Prison for Role in Crack Cocaine Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Adalberto Negron, 31, of Woonsocket, on Thursday, became the second person sentenced to 60 months in federal prison for their role in a crack cocaine distribution conspiracy which operated in Central Falls from January to November 2013, announced United States Attorney Peter F. Neronha, Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI, and Colonel James J. Mendonca, Central Falls Police Chief.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Negron to serve 4 years supervised release upon completion of his prison term. Negron pleaded guilty on September 12, 2014, to one count each of conspiracy to possess with the intent to distribute cocaine base, possession with the intent to distribute cocaine and possession with intent to distribute cocaine base in excess of 28 grams, and two counts of possession with the intent to distribute cocaine base.
Negron, his brother Angel Vigo, 21, of Central Falls, and a 3rd defendant, Edwin Nieves, 24, of Pawtucket, were arrested on November 8, 2013, by FBI agents, Central Falls Police, and officers and agents assigned to the FBI RI Safe Streets Task Force following a 10-month investigation into the crack cocaine distribution conspiracy.
According to court documents and information presented to the court, on at least ten occasions an individual operating at the direction of law enforcement arranged for the purchase and accepted delivery of varying amounts of crack cocaine from Vigo, Negron and Nieves. Telephone calls to arrange the purchases and the deliveries of the drugs were monitored by law enforcement. The deliveries took place in Central Falls and Pawtucket.
During the course of the investigation, including the execution of search warrants authorized by a federal court magistrate judge, law enforcement seized more than 200 grams of crack cocaine, 836 grams of cocaine powder and $70,000 in cash.
“As the large amounts of cash and illegal drugs involved in this case make clear, Rhode Island remains open for business when it comes to drug trafficking. It is therefore no surprise that Rhode Island is among the top states in the nation for its residents’ abuse of illegal and prescription drugs, with disastrous results. This is as much a public health issue as it is a law enforcement one. It is thus imperative that we continue, with our local, state and federal partners, to target those whose endanger our residents and devastate the quality of life in our neighborhoods,” said United States Attorney Peter F. Neronha.
Colonel James J. Mendonca, Central Falls Police Chief added, “The arrest and subsequent sentencing of these lawless individuals is yet another shining illustration of how federal and local law enforcement agencies can work together and share resources in support of one collective goal – safer communities.”
“The collaboration between the Central Falls Police Department and the FBI was a key factor in the successful dismantlement of this criminal enterprise, noted Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.”
On September 9, 2014, Edwin Nieves was sentenced by U.S. District Court Judge John J. McConnell, Jr., to 60 months in federal prison to be followed by 3 years supervised release. Nieves pleaded guilty on May 28, 2014, to conspiracy to distribute and possess with the intent to distribute cocaine base; possession with the intent to distribute cocaine; and two counts of possession with the intent to distribute cocaine base.On April 22, 2014, Angel Vigo, who had been detained in federal custody since his arrest on November 8, 2013, was sentenced by U.S. District Court Judge John J. McConnell, Jr., to time served to be followed by three years supervised release. Vigo pleaded guilty on January 29, 2014, to one count of conspiracy to distribute and possess with the intent to distribute cocaine base and 6 counts of possession with the intent to distribute cocaine base.
The cases were prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the FBI, FBI RI Safe Streets Task Force and Central Falls Police Department, with the assistance of officers from the Cranston, Providence and Norton, Mass., Police Departments and the Massachusetts State Police.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
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8 January 2015
Woman's Sentence for Refusing to Testify to Run Concurrent with Drug Conviction Prison TimeRead the Press Release
PITTSBURGH -A Pittsburgh resident has been sentenced in federal court to 21 months imprisonment to run concurrently with the 120 months imprisonment on a prior federal drug conviction and three years supervised release on her conviction of criminal contempt of court, United States Attorney David J. Hickton announced today.
Senior United States District Judge Allen N. Bloch imposed the sentence on Marquetta Lavelle Mitchell, 41.
According to information presented to the court, Mitchell disobeyed and resisted the lawful process, order and command of a Court of the United States, that is, she refused to testify at the October 16-22, 2012, trial of her boyfriend, Andre Williams, for charges that included conspiracy to possess with intent to distribute five kilograms or more of cocaine, at Case Number 11-116, despite: the subpoena that required her to do so; an instruction from Senior United States District Court Judge Alan N. Bloch that her Fifth Amendment rights had been extinguished; and a written order compelling her to testify pursuant to a grant of immunity from Senior United States District Court Judge Alan N. Bloch.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Homeland Security Investigations and the 21st Judicial District Drug Task Force in Tennessee for the investigation leading to the successful prosecution of Marquetta LavelleMitchell.
Woman Convicted of Methamphetamine DistributionRead the Press Release
HONOLULU – After a six-day trial in United States District Court, a federal jury today found Malia Elena Arciero, age 33, guilty of one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, two counts of distribution and possession with intent to distribute 50 grams or more of methamphetamine, and one count of distribution of some quantity of methamphetamine. Arciero faces up to life in prison with a mandatory minimum ten-year term of imprisonment on the first three counts and up to 20 years imprisonment on the fourth count when she is sentenced on May 4, 2015, before Chief U.S. District Judge Susan Oki Mollway.
United States Attorney Florence T. Nakakuni said that according to the evidence presented at trial, on April 30, 2013, Arciero had approximately one pound, four ounces of methamphetamine in her vehicle, one pound of which she was then in the process of delivering to one of her customers. Earlier in April, Arciero had provided a methamphetamine sample, which was later distributed by another person on April 20, and also supplied two ounces of methamphetamine on April 24, which was then sold by another person.
The investigation which resulted in the charges in the case was conducted by Homeland Security Investigations. Assistant U.S. Attorney Michael Kawahara prosecuted this case.
Wayne County Pharmacy Tech Pleads Guilty to Conspiring to Distribute Thousands of Pain PillsRead the Press Release
Brunswick, GA: Buffy Bradford, 37, of Wayne County, Georgia, pled guilty earlier this week before Chief United States District Court Judge Lisa Godbey Wood for her role in a conspiracy to distribute thousands of highly addictive pain pills.
According to information outlined in court and in court documents, Buffy Bradford worked as a pharmacy technician at Wayne Memorial Hospital, located in Wayne County, Georgia. Between September 2013, and March 2014, Bradford stole over 48,000 units of highly addictive controlled substances from Wayne Memorial so they could be unlawfully sold on the streets. The pills stolen included Hydrocodone and Alprazolam (Xanax). Bradford now faces up to 10 years in federal prison. A sentencing hearing will be held after the U. S. Probation Office completes a presentence investigation. There is no parole in the federal system.
The case was investigated jointly by the Georgia Drugs and Narcotics Agency and the DEA. Assistant United States Attorney E. Greg Gilluly, Jr. is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Villanova Man Charged with Money LaunderingRead the Press Release
PHILADELPHIA - Nathan Isen, 61, of Villanova, PA, was charged today by information with one count of money laundering, announced United States Attorney Zane David Memeger. According to the information, Isen sold 12 pieces of art work in exchange for $20,000 in cash, for the purpose of laundering the $20,000 which he understood to be proceeds from the sale of marijuana.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, three years of supervised release, a $250,000 fine and a $100 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (“HSI”), and is being prosecuted by Assistant United States Attorneys Andrew J. Schell and Judy Goldstein Smith.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tonawanda Man Indicted on Charges of Production and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a six count indictment charging Jason M. Smith, 34, of Tonawanda, NY, with production of child pornography and possession of child pornography. The charges carry a maximum penalty of 30 years in prison, a fine of $250,000, or both.Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to a complaint filed in September 2014, on April 11, 2014, the Lancaster Police Department executed a search warrant at Smith’s residence on Byron Avenue in Tonawanda. During the search, officers seized external hard drives. Subsequent examination by the Western New York Regional Forensic Laboratory determined that the defendant was producing child pornography at his residence. Some of the images depicted Smith engaged in sexual contact with what appears to be a child under the age of 10.
Investigation also determined that the defendant possessed other items of child pornography.
Smith is scheduled to be arraigned on January 12, 2015 at 11:00 a.m. before U.S Magistrate Judge Jerimiah J. McCarthy. The defendant has been in custody since his arrest in September 2014.
The indictment is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Lancaster Police Department, under the direction of Chief Gerald J. Gill, Jr., and the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Toledo Woman IndictedRead the Press Release
Aan indictment was filed charging Jewel A. Washington, 50, of Toledo, with two counts of unauthorized access of a computer for private financial gain and one count of unauthorized disclosure of tax return information, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Treasury Inspector General for Tax Administration, Detroit, Michigan. The case is being handled by Assistant United States Attorney Noah P. Hood.
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.
Toledo Man Charged with Negligent Operation of a VesselRead the Press Release
A criminal information was filed charging Mark T. Vandeilen, 58, of Toledo, with grossly negligent operation of a vessel, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Coast Guard. The case is being handled by Special Assistant United States Attorney Benedict S. Gullo of the United States Coast Guard and Assistant United States Attorney Noah P. Hood.
Three-Time Convicted Sex Offender Convicted of Possession of Child PornographyRead the Press Release
United States Attorney Laura E. Duffy announced that today Norman Paul Felts, a United States citizen who had been living in Mexico, was convicted after a bench trial before U.S. District Judge Cathy Ann Bencivengo of possession of child pornography with a prior sex offense. Felts has been in custody since his arrest by Special Agents with Homeland Security Investigations in June 2013.
According to the evidence presented to the Court, between January 2010 and May 28, 2013, Felts possessed a loose hard drive that contained several images of child pornography. On May 28, 2013, Felts entered the United States and was found in possession of a loose hard drive which was later found to have contained several images of minors engaged in sexually explicit conduct concealed in a folder called “One Million Recipes.”
Felts’ arrest was a result of an investigation stemming from a Cybertip to the National Center for Missing and Exploited Children (NCMEC). NCMEC referred the tip to the HSI Representative for the Office of the Assistant Attaché in Tijuana, Mexico for further investigation. Authorities located a male minor who worked on Felt’s boat in Mexioc, and Felt stipulated at trial that he took sexually-explicit pictures of the boy, knowing the boy was underage. When Felts was contacted at the Tecate Port of Entry on May 28, 2013, Special Agents from the Cyber Crimes and Computer Forensics Group assigned to the Office of the Special Agent in Charge in San Diego, California became involved with the investigation. Felts has three prior sex offense convictions as far back as 1972, when he was convicted of oral copulation. Felts was also convicted for child molestation in Georgia in 1977. Felts’ most recent sex offense conviction was in 1999 for procurement of a minor under 16 for a lewd act.
“The U.S. Attorney’s Office commends the CBP officers and HSI Special Agents who work diligently to prevent purveyors of child pornography from continuing to exploit these children both here in the United States and abroad,” said United States Attorney Laura E. Duffy.
Felts faces a mandatory minimum sentence of 10 years and up to 20 years in prison, a lifetime of supervised release and a $250,000 fine. Sentencing is scheduled for March 27, 2015.
DEFENDANTS Case Number: 13CR2296-CAB Norman Paul Felts Age: 70 Ensenada, Mexico CHARGESTitle 18, United States Code, Section 2252(a)(4) and (b) – Possession of Matters Containing Images of Minors Engaged in Sexually Explicit Conduct
INVESTIGATING AGENCIESHomeland Security Investigations
*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Three Former Correctional Officers at Angola Prison Sentenced for Abusing an Inmate and Cover-UpRead the Press Release
Three former correctional officers with the Louisiana State Penitentiary in Angola, Louisiana, were sentenced today before United States District Judge James J. Brady for the Middle District of Louisiana for abusing an inmate and engaging in conduct to cover up the criminal conduct. Mark Sharp, 33, received 73 months. Kevin Groom, 47, was sentenced to one year probation and a $500 fine. Matthew Cody Butler, 29, received two years probation and a $3,000 fine.
According to court documents filed in connection with their guilty pleas, on January 24, 2010, defendants Groom, Sharp and Butler were on duty as correctional officials when they learned that an inmate had escaped from his assigned location. Shortly after the defendants joined the search for the escapee, the inmate surrendered to prison officials. The inmate was handcuffed behind his back and placed in the back of a pick-up truck to be transported to the medical unit. Groom, Butler, and Sharp escorted the inmate on the back of that truck. During the drive to the medical unit, Sharp repeatedly struck the inmate with a baton. During the investigation of the inmate’s complaint that officers had abused him, Groom and Butler engaged in various conduct to cover up the assault.
Sharp pleaded guilty to violating the civil rights of the inmate and to making false statements to the FBI. Groom pleaded guilty to falsifying records in a federal investigation and making false statements to the FBI. Butler pleaded guilty to misprision of a felony.
Another former officer, Jason Giroir, also pleaded guilty on May 29, 2013, to falsifying a report and making a false statement to the FBI. He will be sentenced separately on January 29, 2015.
“The vast majority of American law enforcement officers conduct themselves with honor,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “But when law enforcement officers abuse inmates and attempt to cover-up their misconduct, the Department of Justice stands ready to hold those officers accountable for their conduct.”
“It is unfortunate that the defendants’ criminal activities threaten to overshadow the courageous and outstanding work performed every day by the vast majority of law enforcement officers, both inside and outside the penal system,” said U.S. Attorney J. Walter Green for the Middle District of Louisiana.
“This thorough and patient investigation not only resulted in the full accountability of all correctional officers involved, but also demonstrated unwavering adherence to the procedural rights of the victim and accused,” said Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Office.
The investigation in this matter was conducted by Special Agent Taneka Harris of the Federal Bureau of Investigation and prosecuted by Civil Rights Division Trial Attorney AeJean Cha and Assistant U.S. Attorney Robert W. Piedrahita.
Three Cleveland Men Accused of Defrauding States out of $233,000 in Unemployment InsuranceRead the Press Release
A 22-count federal indictment was filed charging three individuals with conspiring to defraud states out of $233,000 in unemployment insurance benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Arthur Obleton, 62, Oltheus Hill, 53, and James Smith, 32, all of Cleveland. The charges include conspiracy to commit mail and wire fraud, mail fraud, wire fraud, and aggravated identity theft.
The indictment alleges that the defendants executed a “fictitious employer” scheme from about October 2011 to August 2013. Under this scheme, the defendants submitted false paperwork to states’ unemployment-insurance offices in which the defendants registered employers that did not actually exist and reported non-existent earnings for fictitious employees. The defendants then submitted false claims for unemployment-insurance benefits of the purported employees. In doing so, the defendants stole and used actual individuals’ personal identifying information that the defendants had obtained through misrepresentations.
The indictment charges that as a result of this scheme, approximately $233,830 in fraudulent unemployment benefits were paid from Illinois ($134,383), Iowa ($80,781) and and California ($18,666).
The case is being prosecuted by Assistant United States Attorneys Robert W. Kern, M. Kendra Klump, and James Morford following an investigation by the Department of Labor’s Office of the Inspector General and the Internal Revenue Service Criminal Investigation Division.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.