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18 December 2014
Maui Man Convicted of Methamphetamine DistributionRead the Press Release
HONOLULU – After a four-day trial in United States District Court in Honolulu, a federal jury today found James K. Tagupa, 33, of Wailuku,Maui, guilty of conspiring to distribute and possess, with intent to distribute, 50 grams or more of methamphetamine in August, 2012 as well as possessing 444 grams of methamphetamine with the intent to distribute.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the evidence presented at trial showed that Tagupa agreed with other individuals to distribute methamphetamine sent from Maui to Molokai on private vessels. The evidence established that Tagupa delivered 444 grams of pure methamphetamine which was intercepted during a traffic stop conducted by the Maui Police Department. Tagupa was also intercepted over a court authorized wiretap conducted by the Federal Bureau of Investigation (FBI) discussing how to conceal the methamphetamine for transport by boat to Molokai.
Tagupa was taken into custody immediately after the verdicts and faces up to life in prison with a mandatory minimum ten year term of imprisonment and will be sentenced by U.S. District Judge J. Michael Seabright on April 6, 2015.
The investigation which resulted in the charges in the case was conducted by the FBI and Maui Police Department. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Maryland Man Pleads Guilty to Taking Part in Conspiracy to Distribute Cocaine in the Washington, D.C. AreaAlso Pleads Guilty to Federal Firearms Offense; Judge Sentences Him to Six-Year Prison TermRead the Press Release
WASHINGTON – Timon Otis Sandidge, 38, of Temple Hills, Md., pled guilty today to federal narcotics and firearms offenses for his role in a conspiracy to distribute large quantities of cocaine in the Washington, D.C., metropolitan area, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Sandidge pled guilty in the U.S. District Court for the District of Columbia to one count of conspiracy to distribute and possess with intent to distribute cocaine. He also pled guilty to a related firearms offense. The Honorable Emmet G. Sullivan sentenced him to a six-year prison term, to be followed by five years of supervised release. The judge also ordered Sandidge to perform 100 hours of community service once he has completed his prison term.
Sandidge is among more than two dozen people charged in 2012 in connection with an investigation by the FBI/Metropolitan Safe Streets Task Force into a network that distributed cocaine in the Washington, D.C. area. According to the government’s evidence, he and other defendants conspired to carry out the drug operation from September 2010 through March of 2012, when it was broken up by law enforcement. The network operated in the District of Columbia and Maryland.
In his guilty plea, Sandidge admitted that, during the conspiracy, he purchased cocaine from a supplier on a regular basis. He accepted responsibility for at least two kilograms of cocaine powder, including amounts that he distributed and possessed with intent to distribute.
On Feb. 24, 2012, law enforcement conducted a search at Sandidge’s residence in Maryland. Law enforcement recovered a semi-automatic pistol in a dresser drawer in the bedroom. Law enforcement also recovered $3,000 in a safe in the closet of Sandidge’s bedroom, along with cocaine and other evidence. Another $564 in cash was found in the bedroom.
As part of his plea agreement, Sandidge agreed to the forfeiture of $3,564 and the gun.
This prosecution grew out of a long-term FBI/MPD alliance called the Safe Streets Task Force that targets violent drug trafficking gangs in the District of Columbia. The Safe Streets Initiative is funded in part by the Baltimore Washington High Intensity Drug Trafficking Area as well as the Organized Crime Drug Enforcement Task Force. The initiative involves more than 150 Safe Streets Task Forces across the country that combat street gangs by combining federal, state and local police resources. The task forces, which began in 1992 in Los Angeles and the District of Columbia, address gang activity, including drug-related crimes.
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier thanked those who pursued the investigation from the FBI/MPD Safe Streets Task Force and other agencies. They expressed appreciation to the Prince George’s County, Md., Police Department, the U.S. Park Police, the U.S. Marshals Service, the Drug Enforcement Administration, and the Maryland State Police for their assistance in the investigation.
They also acknowledged the efforts of those who have worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Rommel Pachoca, Regan Gibson, Starla Stolk, Kim Hall, Teesha Tobias, Mary Downing, Candace Battle, Catherine O’Neal, Jeannette Litz, Carolyn Carter-McKinley, and Crystal Barclay; Legal Assistants Latoya Wade, Candice Sisco, Diane Brashears, and Tammy Scott, and Assistant U.S. Attorneys Michelle Zamarin and Thomas A. Gillice, who indicted and handled the majority of the investigation and case-related litigation.
Finally, they commended the work of Assistant U.S. Attorneys Stephen J. Gripkey and John K. Han, of the Violent Crime and Narcotics Trafficking Section, who began trial preparation and handled plea negotiations, and Assistant U.S. Attorneys Zia Faruqui and Anthony Saler and Arvind Lal, of the Asset Forfeiture and Money Laundering Section.
14-281Manhattan U.S. Attorney Sues Thomas E. Haider, Former Chief Compliance Officer of Moneygram International, Inc., for Violating the Bank Secrecy ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Jennifer Shasky Calvery, the Director of the Financial Crimes Enforcement Network (“FinCEN”), announced today that the United States has filed a civil enforcement action against THOMAS E. HAIDER (“HAIDER”), the former Chief Compliance Officer of MoneyGram International, Inc. (“MoneyGram”), for violating the Bank Secrecy Act (“BSA”). At all times relevant to the Complaint, MoneyGram operated a money transfer service that enabled customers to transfer money from one MoneyGram location to another. The Complaint alleges that, notwithstanding his obligations as MoneyGram’s Chief Compliance Officer, HAIDER violated the BSA by failing to ensure that MoneyGram: (1) implemented and maintained an effective anti-money laundering (“AML”) program; and (2) filed timely suspicious activity reports with law enforcement when it knew, suspected, or had reason to suspect that third parties were using its money transfer service to facilitate criminal activity. The Complaint further alleges that, as a result of HAIDER’s conduct, the perpetrators of fraudulent telemarketing and other schemes were able to use MoneyGram’s money transfer system to engage in criminal activity and defraud MoneyGram customers out of substantial amounts of money.
Prior to the filing of the Complaint, FinCEN – which is responsible for enforcing compliance with the BSA – assessed a $1 million penalty against HAIDER for his above-referenced conduct. The Complaint seeks both to collect that assessed penalty and to enjoin Haider from participating, directly or indirectly, in the conduct of the affairs of any “financial institution” (as that term is used in the BSA) that is located in the United States or conducts business within the United States, for a term of years sufficient to prevent future harm to the public.
Manhattan U.S. Attorney Preet Bharara said: “Compliance officers perform an essential function in our society, serving as the first line of defense in the fight against fraud and money laundering. Unfortunately, as the Complaint alleges, Mr. Haider violated his obligations as MoneyGram’s Chief Compliance Officer. By allegedly failing to take the actions clearly required of him under the law, he allowed criminals to use MoneyGram to defraud innocent consumers and then launder the proceeds of their fraudulent schemes. As this case demonstrates, we are committed to working with FinCEN to enforce the requirements of the Bank Secrecy Act and hold individuals such as Mr. Haider accountable.”
FinCEN Director Jennifer Shasky Calvery said: “In my job, I’ve met hundreds of compliance officers and I know them to be some of the most dedicated and trustworthy professionals in the financial industry. FinCEN and our law enforcement partners greatly depend on their judgment and their diligence in our common fight against money laundering, fraud, and terrorist finance. Mr. Haider’s failures are an affront to his peers and to his profession. With his willful violations, he created an environment where fraud and money laundering thrived and dirty money rampaged through the very system he was charged with protecting. His inaction led to personal savings lost and dreams ruined for thousands of victims.”
As alleged in the Complaint, filed today in Manhattan Federal Court:
Since at least 2003, MoneyGram has operated a money transfer service that enables its customers to transfer money to and from various locations in the United States and abroad through its global network of agents and outlets. MoneyGram outlets are independently owned entities that MoneyGram has authorized to transfer money through its money transfer system. Typically, MoneyGram outlets are businesses (such as convenience stores and internet cafes) that offer money transfers through MoneyGram, but primarily provide other types of goods and services. MoneyGram agents are the individuals or entities that own and/or operate MoneyGram outlets.
As a money transmitter, MoneyGram is subject to, and must comply with, various requirements set forth in the BSA and its implementing regulations. As relevant here – and at all times relevant to the Complaint – MoneyGram was required to implement and maintain an effective AML program. MoneyGram was also required to file with FinCEN suspicious activity reports (“SARs”) identifying financial transactions that: (1) were sent by or through MoneyGram; (2) involved (individually or in the aggregate) funds of at least $2,000; and (3) MoneyGram knew, suspected, or had reason to suspect involved, among other things, the use of MoneyGram’s money transfer system to facilitate criminal activity. Such SARs were required to be filed within 30 days of MoneyGram detecting facts that may have constituted a basis for filing the SARs.
From at least 2003 through on or about May 23, 2008, HAIDER was MoneyGram’s Chief Compliance Officer. As such, HAIDER was responsible for ensuring that MoneyGram implemented and maintained an effective AML program and complied with its SAR-filing obligations.
Notwithstanding HAIDER’s obligations as MoneyGram’s Chief Compliance Officer, at all times relevant to the Complaint, HAIDER failed to ensure that MoneyGram (1) implemented and maintained an effective AML program and (2) fulfilled its obligation to file timely SARs. HAIDER’s failures included the following:
- Failure to Implement a Discipline Policy. HAIDER failed to ensure that MoneyGram implemented a policy for disciplining agents and outlets that MoneyGram personnel knew or suspected were involved in fraud and/or money laundering.
- Failure to Terminate Known High-Risk Agents/Outlets. HAIDER failed to ensure that MoneyGram terminated agents and outlets that MoneyGram personnel understood were involved in fraud and/or money laundering, including outlets that HAIDER himself was on notice posed an unreasonable risk of fraud and/or money laundering. For example, with respect to one such outlet: in 2004, HAIDER learned that the Toronto Police Department regarded the outlet as “dirty”; in 2005, 2006 and 2007, MoneyGram’s Fraud Department – which HAIDER supervised – identified the outlet as one of MoneyGram’s leading fraud outlets; in 2007, MoneyGram’s Fraud Department proposed to HAIDER (and others) that the outlet be terminated, and provided compelling evidence that the outlet was complicit in fraudulent schemes; and by the time Haider left MoneyGram in 2008, MoneyGram had received hundreds of reports from its customers linking the outlet to fraudulent activity.
- Failure to File Timely SARs. HAIDER failed to ensure that MoneyGram fulfilled its obligation to file timely SARs, including because: (1) HAIDER maintained MoneyGram’s AML program so that the individuals responsible for filing SARs were not provided with information possessed by MoneyGram’s Fraud Department that should have resulted in the filing of SARs on specific agents or outlets; and (2) HAIDER failed to provide adequate direction to MoneyGram staff regarding when to file SARs relating to fraud.
- Failure to Conduct Effective Audits of Agents/Outlets. HAIDER failed to ensure that MoneyGram conducted effective audits of agents and outlets, including outlets that MoneyGram personnel knew or suspected were involved in fraud and/or money laundering.
- Failure to Conduct Adequate Due Diligence on Agents/Outlets. HAIDER failed to ensure that MoneyGram conducted adequate due diligence on prospective agents, or existing agents seeking to open additional outlets, which resulted in, among other things, MoneyGram (1) granting outlets to agents who had previously been terminated by other money transmission companies and (2) granting additional outlets to agents who MoneyGram personnel knew or suspected were involved in fraud and/or money laundering.
As a result of HAIDER’s above-described AML failures, agents and outlets that MoneyGram personnel knew or suspected were involved in fraud and/or money laundering were allowed to continue to use MoneyGram’s money transfer system to facilitate their fraudulent schemes. The above-referenced failures continued throughout HAIDER’s employment at MoneyGram, and resulted in MoneyGram’s customers suffering substantial losses, as many were duped into using MoneyGram’s money transfer system to send significant sums of money to the perpetrators of fraudulent schemes.
Mr. Bharara thanked FinCEN for its extraordinary assistance in bringing this case, and its ongoing partnership with this Office in identifying and investigating potential BSA violations.
Mr. Bharara also thanked the Asset Forfeiture and Money Laundering Section of the U.S. Department of Justice, the United States Attorney’s Office for the Middle District of Pennsylvania, and the United States Postal Inspection Service for their assistance in connection with this case.
The case is being handled by Assistant U.S. Attorney Christopher B. Harwood from the Office’s Civil Frauds Unit.
U.S. v. Thomas Haider Complaint
Man Sentenced to 17 Years in Federal Prison for Trying to Get Teen to Perform Sexual Act over WebcamRead the Press Release
Memphis, TN – Gary Robert Davis, 49, of Ft. Myers, Florida, was sentenced to 17 ½ years, or 210 months, in federal prison yesterday following his guilty plea to one count of attempted sexual exploitation of children, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
In February of this year, Davis contacted a Memphis area woman over the internet and asked her to get a teenager to masturbate on webcam so Davis could watch it live in Florida on his smartphone. Davis even wired money to the woman to pay for the requested act. The woman reported Davis to the FBI's Child Exploitation Task Force, which opened an investigation. Agents recovered video surveillance that showed Davis at a Western Union, where the money transfer initiated, and chat conversations regarding the minor. Davis is already a registered sex offender, with three 1998 convictions for attempted sexual battery in Florida.
In addition to the prison sentence, U.S. District Judge Sheryl H. Lipman ordered Davis to serve five years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation Child Exploitation Task Force. Assistant U.S. Attorney Debra Ireland represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
Man Sentenced in White Plains Federal Court to 15 Months in Prison for Reckless Assault of Baby on Grounds of West PointRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEWART DANIEL HARBIN, 30, was sentenced yesterday to 15 months in prison by United States District Judge Cathy Seibel for his 2012 reckless assault of a baby while on the grounds of West Point Military Academy (“West Point”). The sentencing followed HARBIN’S guilty plea on March 13, 2014.
According to documents filed in this case and statements made in related court proceedings:
On October 17, 2012, at approximately 10:40 p.m., emergency personnel at West Point responded to a 911 call from the defendant’s home, a residence located within West Point. The emergency personnel transported the defendant’s 10-week-old infant child (the “Baby”) from the residence to Keller Army Community Hospital (“KACH”), West Point’s hospital. After examination at KACH, the Baby, at approximately 1:30 a.m. on October 18, 2013, was transported, via ambulance, to Westchester County Medical Center (AWCMC@). There, medical personnel determined that the Baby had rib fractures and an intracranial hemorrhage. Tests, including radiological studies, revealed rib fractures in at least two stages of healing. There were eight sub-acute (healing) fractures and one acute (new) rib fracture. The healing fractures were determined to be between 10 days and six weeks old, and were determined to have occurred on multiple occasions as determined by the different stages of healing. In addition, the tests performed on the Baby revealed evidence of a prior intracranial injury.
On March 13, 2014, Harbin pleaded guilty to recklessly assaulting the Baby. During the plea proceeding, the defendant stated that, “on or about October 17, 2012, in the County of Orange, New York, on the land belonging to West Point Military Academy, I, Stewart Harbin, caused serious physical injury to the brain of my son [name omitted], who was less than five years of age, specifically, approximately ten weeks old, by slamming or throwing the child so as to impact the child’s head on a hard surface or object.” HARBIN said, “Specifically, I put [the Baby] down hard onto a hard infant seat that had no give. We used this hard infant seat to secure him on the couch and within his crib and later in which I put [the Baby] down hard, causing his head to impact the hard surface of the infant seat, causing the brain to bleed.” At the plea proceeding, the Government underscored its view that, although HARBIN had admitted that he was the actor who acted upon the Baby and caused the injuries, the Government did not accept the notion that the brain injuries were sustained by putting the Baby down hard onto an infant seat. Judge Seibel inquired of Harbin: “When you say you put the infant down hard on the hard infant seat, do you mean that you slammed the child down or threw the child down?” Harbin stated, “Yes, ma’am.”
In sentencing HARBIN to 15 months’ imprisonment, Judge Seibel described the offense conduct as “horrifying.” Judge Seibel granted the defendant’s request to enter a residential treatment program for service-related Post Traumatic Stress Disorder before he begins serving his sentence. Judge Seibel ordered HARBIN to surrender to the Bureau of Prisons in six months. The Court also imposed a term of supervised release of three years.
Mr. Bharara praised the efforts of the FBI, the West Point Military Police, and the Westchester District Attorney’s Office in connection with this investigation.
The case is being handled by the White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
Local Tattoo Artist Sentenced on Federal Firearms ChargeRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Anthony Lee Erity (33, Kenneth City) to nine years and two months in federal prison for possessing a firearm and ammunition as a convicted felon. A federal jury found him guilty on June 25, 2014.
According to testimony and evidence presented at trial, on July 11, 2013, during an undercover operation at a local tattoo shop in Pinellas County, Erity sold a firearm and ammunition out of his car to a confidential informant. As a previously convicted felon, Erity was prohibited from possessing a firearm or ammunition under federal law. As the trial date approached in this case, Erity also took steps to flee the country and retaliate against a potential witness in the case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorneys Adam M. Saltzman and Simon A. Gaugush.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Lexington Man Sentenced to 27 Months for Mail Fraud and Money Laundering ConspiracyRead the Press Release
LEXINGTON, KY - A Lexington, Ky., man, who previously admitted conspiring to defraud wireless telephone companies out of hundreds of smartphones, has been sentenced to 27 months in prison.
On Wednesday, U.S. District Judge Joseph M. Hood sentenced 56-year-old Michael Whiteside for conspiring with others to commit mail fraud and to launder the proceeds of his scheme.
Whiteside admitted that he participated in a conspiracy to defraud Verizon Wireless, and other wireless telephone companies, by using false pretenses to buy numerous smartphones, such as iPhones and Samsung Galaxies, at the discounted contract rates. Whiteside recruited and induced other individuals to buy smartphones and sign service contracts when, in fact, these individuals had no intention of honoring their contracts and paying monthly data services fees to the telephone companies. After the purchases, Whiteside took possession of the fraudulently obtained smartphones and shipped them overseas for resale, at substantially higher prices.
Whiteside’s spouse, Julia Whiteside, has also been convicted and sentenced for her role in the conspiracy. Whiteside’s son, Marques Whiteside, has pleaded guilty to mail fraud and money laundering conspiracies and is scheduled to be sentenced on January 5, 2015.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Paul R. Johnson, Special Agent in Charge, U.S. Secret Service, jointly announced the sentence.
The investigation was conducted by the Lexington Police Department and the U.S. Secret Service. Assistant U.S. Attorney Andrew T. Boone is prosecuting this case on behalf of the federal government.
Lebanon Woman Pleads Guilty to Embezzlement SchemeRead the Press Release
Bianca Thompson, 42, of Lebanon, Tenn., pleaded guilty last week in United States District Court in Nashville to two counts of wire fraud and one count of making a false statement to an agent with the U.S. Secret Service, announced David Rivera, United States Attorney for the Middle District of Tennessee.
In a hearing before U.S. District Court Chief Judge Kevin Sharp, Thompson admitted to engaging in a scheme to embezzle more than $135,000 from her employer and a client.
Thompson stated that, while an employee of Performance Food Group Customized Distribution (“PFG”) in Lebanon, she falsely told a PFG client that PFG had made a mistaken payment of more than $135,000, and instructed the client to wire that amount to Thompson’s personal bank account. Thompson then converted the funds to her own personal use, including reducing her personal debts. Thompson further admitted during the plea hearing that she concealed from her employer that she had instructed a second client to wire funds to her personal account, and that she then converted those funds to her own personal use. When confronted about her conduct by the U.S. Secret Service, Thompson falsely stated to agents that she had transferred the funds received from one PFG client to another and falsely stated that she had not spent any of the funds.Thompson faces up to 20 years in prison on the wire fraud counts, and up to 5 years for the count of making a false statement to a federal investigator. Jones is scheduled to be sentenced on March 15, 2015.
The case was investigated by the U.S. Secret Service. The United States is represented by Assistant U.S. Attorney William F. Abely.
Lathrop Man Sentenced to over 8 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Jonathan Garcia, 24, of Lathrop, was sentenced today by United States District Judge Morrison C. England, Jr. to eight years and five months in prison for possession with the intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 7, 2013, Garcia drove to a residence in Manteca to deliver methamphetamine to a buyer. When he arrived, he was met by law enforcement officers who searched his car and found approximately 103 grams of 99% pure crystal methamphetamine in the center console and a loaded gun. During a subsequent search of Garcia’s residence, officers found an additional 110.8 grams of methamphetamine.
“As this lengthy sentence makes clear, trafficking methamphetamine is a serious offense that will be punished with the full weight of the law,” said Kim Wong, resident agent in charge HSI Stockton. “Left unchecked, this highly dangerous substance destroys lives and wreaks havoc on entire communities. HSI, together with its federal, state and local law enforcement partners, is committed to using every tool and authority at its disposal to combat the menace posed by meth.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Manteca Police Department. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
Kevin Scott Thibault Sentenced for Forgery of Signature of A U.S. District Court Judge and Mail FraudRead the Press Release
KNOXVILLE, Tenn. – On Dec. 18, 2014, Kevin Scott Thibault, 49, of Maryville, Tenn., was sentenced by the Honorable Pamela L. Reeves, U.S. District Judge, to serve 60 months in prison for forgery of the signatures of a district court judge and an officer of the U.S. District Court. Additionally, Judge Reeves ordered Thibault to serve 72 months in prison for mail fraud. These sentences will run concurrently.
Thibault pleaded guilty in August 2014 to a two-count indictment charging him with the forgery counts and a one-count information charging him with mail fraud. Thibault was also ordered to pay restitution in the amount of $380,340.12. Upon his release from prison, he will be supervised by the U.S. Probation Office for three years.
Thibault admitted to falsely representing himself as an attorney and agreeing to assist two individuals with the adoption of foster children in their custody. In May 2012, Thibault presented the individuals with fake adoption papers that he claimed had been filed in U.S. District Court, signed by U.S. District Judge Thomas A. Varlan, and certified by U.S. District Court Officer Kathy Keeton. An investigation revealed that neither Judge Varlan nor Keeton signed the documents and the signatures were forged.
In October 2012, Thibault demanded that the individuals sign a power of attorney permitting him to represent their interest in the alleged adoption proceedings. However, the power of attorney actually allowed him to conduct certain financial transactions on their behalf. According to the plea agreement, through the course of this scheme, Thibault obtained at least $400,000 from the victims to further his scheme to defraud and obtain money.
This investigation was handled by the Blount County Sheriff’s Office and Federal Bureau of Investigation. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
- Katy Man Faces Federal Charges After Illegally Using Company Credit Card to Purchase Firearms
Jury Convicts St. Joseph Truck Driver, Sex Offender of Transporting a Minor for ProstitutionRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a St. Joseph, Mo., commercial truck driver who is a registered sex offender has been convicted by a federal trial jury of transporting a minor across state lines for prostitution.
Tony Eugene Wardlow, 55, of St. Joseph, was found guilty on Wednesday, Dec. 17, 2014, of transporting a minor across state lines for prostitution. Wardlow remains in federal custody until his sentencing.
Wardlow was self-employed as a commercial truck driver, doing business as Prideco, LLC. Wardlow is a registered sex offender who was convicted in 1997 in Nodaway County, Mo., of sexual abuse, endangering the welfare of a child and sexual misconduct (involving two separate child victims). Wardlow also has prior felony convictions for being a felon in possession of firearms and possessing methamphetamine.
Co-defendant Thomas Farrell, 49, of DeKalb, Mo., pleaded guilty on Feb. 7, 2014, to aiding and abetting Wardlow’s transportation of the minor victim to Texas for prostitution. Farrell was the owner of Farrell Trucking & Hay, LLC.
Evidence submitted during the trial indicated that Wardlow paid the minor victim for sex on multiple occasions while she was working as a prostitute on Independence Avenue in Kansas City, Mo. She was under 18 years of age at this time. Wardlow took her out of town in his truck on several occasions, including a trip to Texas in September 2011. Farrell accompanied them. During the trip, Wardlow engaged in prostitution activity with the minor victim multiple times, both in Wardlow’s truck and in hotels.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour before returning the verdict to U.S. District Judge Dean Whipple, ending a trial that began Monday, Dec. 15, 2014.
Under federal statutes, Wardlow is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Daly and David Luna. It was investigated by the FBI, the Prairie Village, Kan., Police Department, the Kansas City, Mo., Police Department, the U.S. Department of Transportation, the Missouri State Highway Patrol and the Overland Park, Kan., Police Department in conjunction with the Human Trafficking Rescue Project.Judge Fashions Long Prison Term for Sex TraffickerRead the Press Release
PHILADELPHIA – Christian Dior Womack, a/k/a “Gucci Prada,” 30, of Chester, PA, was sentenced today to life in prison for sex trafficking females, including a minor, for prostitution. Womack pleaded guilty, on July 23, 2014, during jury selection for his federal trial. He operated a prostitution venture, in Philadelphia and elsewhere, recruiting young females, one of whom was a minor, to work as prostitutes. He also engaged in acts of physical violence, coercion, and threats of physical harm to maintain the participation of the females.
U.S. District Court Judge Mitchell Goldberg sentenced Womack to life for sex trafficking of a minor, and for sex trafficking by force.
Charged with Womack was Rashidah Brice, a/k/a “Camille,” a/k/a “Milly,” 24, also of Chester, PA. As part of their venture, Womack and Brice allegedly created internet advertisements in which they advertised these females as available for purchase for purposes of prostitution. The advertisements featured pictures of the females scantily clad, and provided a phone number to call to arrange a meeting with the females. Brice previously pleaded guilty. She was sentenced in October to 185 months in prison.
The case was investigated by the FBI, the Philadelphia Police Department Special Victims Unit, and the Tinicum Township Police Department. It was prosecuted by Assistant United States Attorneys Michelle Morgan and Melanie Babb Wilmoth.
Jicarilla Apache Man Sentenced to Fifty Months in Federal Prison for Assault ConvictionRead the Press Release
Defendant Prosecuted as Part of Federal Initiative to Address the Epidemic Incidence of Violence Against Native Women
ALBUQUERQUE – Robert Yazzie, Jr., 49, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., was sentenced this afternoon for his conviction on a federal assault charge arising out of a violent attack on his intimate partner. Yazzie will serve 50 months in federal prison followed by two years of supervised release.
Yazzie was arrested on May 27, 2014, on an indictment charging him with assault resulting in serious bodily injury. The indictment alleged that Yazzie assaulted the victim on May 17, 2013, and caused her to suffer serious bodily injury.On July 24, 2014, Yazzie pled guilty to the indictment and admitted assaulting his intimate partner by hitting her in the face and head multiple times with a closed fist. Yazzie acknowledged that as a result, the victim sustained bilateral nasal bone fractures and hematomas to the head and face. The assault occurred within the Jicarilla Apache Reservation.
This case was investigated by the Jicarilla Apache Tribe Police Department and was prosecuted by Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Investment Adviser Convicted of Stealing Client FundsRead the Press Release
BOSTON – A Pennsylvania woman pleaded guilty yesterday in U.S. District Court in Boston to orchestrating a multi-million dollar investment fraud scheme that harmed scores of victims.
Patricia S. Miller, 68, pleaded guilty to five counts of wire fraud after being indicted in June 2014. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for March 10, 2015.
Miller used her position as a trusted financial adviser, as well as her association with a Massachusetts-based broker dealer, to obtain money from clients for purported investments that she never made on behalf of clients. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her “investment clubs” would be placed in fixed-income notes and other investments. Miller was able to obtain over $2.5 million from more than 50 clients for these purported investment clubs. Instead of investing the money as promised, she misappropriated client funds for her own use.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. U.S. Attorney Ortiz also expressed appreciation for the help and cooperation her office received from the U.S. Attorney’s Office for the Western District of Pennsylvania and the Federal Bureau of Investigation, Pittsburgh Field Division. The case is being prosecuted by Assistant U.S. Attorney Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
If you believe you are a victim of the crimes alleged against Patricia Miller, you may contact the United States Attorney’s Office for the District of Massachusetts at [email protected]. Identified victims will receive notification through the automated victim notification system. If you have not received notification, and believe you should be included as a victim in this case, please contact the U.S. Attorney’s Office for the District of Massachusetts at [email protected].Pittsburgh-Area Victims:
If you are a victim from the Pittsburgh, Pa. area, please contact the Victim Witness Unit at the U.S. Attorney’s Office for the Western District of Pennsylvania at (412) 644-3500. Pittsburgh victims may also find information online at http://www.justice.gov/usao/paw.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force, chaired by Attorney General Eric Holder, includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
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 Lynch in Missoula on December 17, 2014, and entering pleas of Not Guilty were:
• DONALD MITCHELL JOHNSON, a 48-year-old resident of Alhambra, California, appeared on charges of conspiracy to commit access device fraud and fraud and related activity in connection with access devices. If convicted of the most serious charges contained in the indictment, LIU faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the U.S. Secret Service. PACER Case Reference: 14-28
• EDWARD EARL WERNER, a 42-year-old resident of Hot Springs, appeared on charges of felon in possession of firearms. If convicted of the charge contained in the indictment, WERNER 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 and the Sanders County Sheriff’s Office. PACER Case Reference: 14-46
Appearing before U.S. Magistrate Judge Strong in Great Falls on December 17, 2014, and entering pleas of Not Guilty were:
• JOSE LUIS ALVARADO, a 27-year-old citizen of Mexico 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, ALVARADO 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
• BRANDON MICHAEL JACKSON, a 29-year-old resident of Wolf Point appeared on charges of burglary. If convicted of the charge contained in the indictment, JACKSON faces 20 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by Fort Peck Tribes Department of Law and Justice PACER Case Reference: 14-78
Appearing before U.S. Magistrate Judge Ostby in Billings on December 17, 2014, and entering pleas of Not Guilty were:
• ZHE LIU, a 23-year-old resident of Alhambra, California, appeared on charges of conspiracy to commit access device fraud and fraud and related activity in connection with access devices. If convicted of the most serious charges contained in the indictment, LIU faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the U.S. Secret Service. PACER Case Reference: 14-119
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 to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment: 26 Pounds of Methamphetamine Hidden in Driver’s Spare TireRead the Press Release
KANSAS CITY, KAN. – A California man was indicted Thursday on a federal charge of transporting approximately 26 pounds of methamphetamine hidden in a spare tire, U.S. Attorney Barry Grissom said.
Armondo Medina Gomez, 29, North Hollywood, Calif., is charged with one count of possession with intent to distribute methamphetamine. A criminal complaint filed in the case alleges that on Dec. 16, 2014, the Kansas Highway Patrol stopped a 2004 Ford on Interstate 70 near mile post 198 in Russell County, Kan. With the help of a dog trained to detect drugs, investigators found approximately 26 pounds of methamphetamine hidden in a spare tire in the vehicle.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Alleges Philadelphia Man Stole IdentitiesRead the Press Release
Peter Fields, also known as Charles Smith, 48, of Philadelphia, PA, was charged today by indictment with mail fraud, bank fraud, access device fraud and aggravated identity theft, announced United States Attorney Zane David Memeger. Fields obtained the personal and financial information of victims and used that information to obtain credit accounts in the victims’ names, add himself as an authorized user to victims’ credit accounts, manufacture fraudulent checks using victims’ account numbers, and fraudulently obtain utility services in the names of victims for others.
If convicted, Peter Fields faces a maximum possible sentence of 73 years in prison and a fine of $2 million.
The case was investigated by United States Postal Inspection Service, with the assistance of the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney K.T. Newton.
Illinois Man Sentenced for Obstruction of Justice and Filing False Multi-Billion Dollar Liens Against Federal Judges and Other Government EmployeesRead the Press Release
A Flossmoor, Illinois, man was sentenced to serve 46 months in prison and three years of supervised release by U.S. District Court Judge Michael M. Mihm in the Central District of Illinois for obstruction of justice and filing false retaliatory liens against government officials, the Justice Department’s Tax Division announced today.
Tyree Davis Sr. pleaded guilty on July 18, 2014, to two counts of obstruction of justice and two counts of filing false retaliatory liens. A federal grand jury in Chicago returned an eight count indictment on July 24, 2013, charging Davis with two counts of obstruction of justice and six counts of filing false retaliatory multi-billion dollar liens against government employees.
According to court documents, Davis sent correspondence threatening to arrest two federal judges, including the judge who presided over the 2010 criminal tax trial of LaShawn Littrice. A jury convicted Littrice, who Davis has referred to as his wife, in June 2010, and she was sentenced to serve 42 months in prison. Court documents also establish that Davis filed false retaliatory liens, titled Notice of Claim of Maritime Lien, against the two federal judges. Davis also filed false retaliatory liens against the U.S. Attorney and Clerk of Court for the Northern District of Illinois, and the Assistant U.S. Attorney and the special agent from the Internal Revenue Service-Criminal Investigation who investigated and prosecuted Littrice. Davis filed the liens with the Cook County Recorder’s Office claiming that each individual owed Littrice $100 billion dollars. Davis re-recorded the liens multiple times in order to add real property descriptions, then notified others, including credit bureaus, that he had filed the multi-billion dollar liens.
The case was prosecuted by the Senior Litigation Counsel Jen E. Ihlo and Trial Attorney Matthew J. Kluge of the Tax Division and was investigated by the U.S. Treasury Inspector General for Tax Administration and the FBI.
Houston Investment Manager Sentenced to 56 Months in Prison for Orchestrating $72 Million Ponzi SchemeRead the Press Release
A Houston investment manager was sentenced yesterday to serve 56 months in prison for orchestrating a $72 million investment fraud scheme resulting in approximately $40 million in losses to investors.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Carlie Christensen of the District of Utah, Special Agent in Charge Mary Rook of the FBI’s Salt Lake City Field Office and Special Agent in Charge John Collins of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Las Vegas Field Office made the announcement.
Robert Andres, 63, of Houston, Texas, pleaded guilty on Aug. 22, 2013, to wire fraud. In addition to the prison sentence, U.S. District Judge Robert J. Shelby of the District of Utah ordered Andres to pay more than $3.2 million in restitution.
According to admissions made in connection with his guilty plea, between October 2005 and 2011, Andres recruited investors for Winsome Investment Trust, where he served as the sole manager, attorney and trustee, by misrepresenting Winsome’s assets, asset allocation and the manner in which investor funds were invested. Indeed, between October 2005 and April 2007, Andres raised more than $39 million by disseminating false and misleading balance sheets and representing that he would invest all of the investors’ funds in a trading program or mostly automated trading business.
Also according to Andres’ admissions, he intentionally failed to disclose to potential investors that their money would actually be used to pay earlier investors. In addition, Andres used new investor funds to make purported “profit” payments to earlier investors to create the false impression that Winsome was profitable. During this period, Andres also misappropriated approximately $2.2 million in investor money for personal use, including to pay his hotel bills and living expenses.
This case was investigated by the FBI’s Salt Lake City Field Office and IRS-CI’s Las Vegas Field Office. The Commodity Futures Trading Commission and the Securities and Exchange Commission also provided assistance in the investigation. The case is being prosecuted by Trial Attorney Thomas B.W. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jason R. Burt and Mark Y. Hirata of the District of Utah.
Houston Investment Manager Sentenced to 56 Months in Prison for Orchestrating $72 Million Ponzi SchemeRead the Press Release
SALT LAKE CITY - A Houston investment manager was sentenced late Wednesday afternoon to 56 months in prison for orchestrating a $72 million investment fraud scheme resulting in approximately $40 million in losses to investors. U.S. District Judge Robert J. Shelby imposed the sentence in federal court in Salt Lake City.
Robert Andres, 63, of Houston, Texas, pleaded guilty on Aug. 22, 2013, to wire fraud. In addition to the prison sentence, Judge Robert J. Shelby also ordered Andres to pay more than $3.2 million in restitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Carlie Christensen of the District of Utah, Special Agent in Charge Mary Rook of the FBI’s Salt Lake City Field Office and Special Agent in Charge John Collins of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Las Vegas Field Office made the announcement.
According to admissions made in connection with his guilty plea, between October 2005 and 2011, Andres recruited investors for Winsome Investment Trust, where he served as the sole manager, attorney and trustee, by misrepresenting Winsome’s assets, asset allocation and the manner in which investor funds were invested. Indeed, between October 2005 and April 2007, Andres raised more than $39 million by disseminating false and misleading balance sheets and representing that he would invest all of the investors’ funds in a trading program or mostly automated trading business.
Also according to Andres’ admissions, he intentionally failed to disclose to potential investors that their money would actually be used to pay earlier investors. In addition, Andres used new investor funds to make purported “profit” payments to earlier investors to create the false impression that Winsome was profitable. During this period, Andres also misappropriated approximately $2.2 million in investor money for personal use, including hotel bills and living expenses.
This case was investigated by the FBI’s Salt Lake City Field Office and IRS-CI’s Las Vegas Field Office. The Commodity Futures Trading Commission and the Securities and Exchange Commission also provided assistance in the investigation. The case is being prosecuted by Trial Attorney Thomas B.W. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jason R. Burt and Mark Y. Hirata of the District of Utah.
Houma Man Sentenced After Pleading Guilty to Cocaine Possession ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALTON CELESTINE, age 35, of Houma, was sentenced after having pled guilty to two counts of possession with intent to distribute cocaine. CELESTINE pled guilty to one count of possession with intent to distribute twenty-eight grams of cocaine base (“crack”) and one count of possession with intent to distribute twenty-eight grams of crack and a quantity of cocaine hydrochloride.
U.S. District Judge Helen G. Berrigan sentenced CELESTINE to time served after having served 41 months in jail, and 4 years of supervised release.
The plea and sentencing of CELESTINE followed an investigation by the Terrebonne Parish Narcotics Division and the Drug Enforcement Administration who identified CELESTINE as a distributor of cocaine.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Terrebonne Parish Narcotics Division in investigating this matter. Assistant United States Attorney Andre Jones was in charge of the prosecution.
Honduran Nationals Charged with Drug Trafficking Arrived in South Florida after being ExtraditedRead the Press Release
Two Honduran nationals were extradited from Honduras to the United States as a result of their alleged participation in a large-scale drug trafficking organization that operates in the western portion of Honduras. These individuals allegedly knew that the large amounts of cocaine they were trafficking would end up in the United States. They arrived in South Florida this afternoon.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and A.D. Wright, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
On December 3, 2013, the Southern District of Florida charged Miguel Arnulfo Valle-Valle, 43, Luis Alonso Valle-Valle, 45, Gerson Stanley Ortega-Valle, 35, and Digna Asusena Valle-Valle, 48, with conspiring to traffic large amounts of cocaine from Colombia, through Honduras, with the eventual destination being the United States. On July 20, 2014, Digna Asusena Valle-Valle was arrested at Miami International Airport, and is scheduled to commence trial in the Southern District of Florida before U.S. District Judge William P. Dimitrouleas, on February 17, 2015. Miguel Arnulfo Valle-Valle and Luis Alonso Valle-Valle were arrested in Honduras on October 5, 2014.
These defendants have been identified as members of a group known as Los Valles, who use the department of Copan as the base of their operations, but have a strong influence in the area containing San Pedro Sula, located in the department of Cortes. Los Valles consists of several individuals; however, the primary leaders of the organization are the two brothers, Miguel Arnulfo Valle-Valle and Luis Alonso Valle-Valle. On August 20, 2014, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) identified the Los Valles drug trafficking organization as one of the most prolific Central American narcotics trafficking organizations. OFAC described the group, led by Miguel Arnulfo Valle-Valle, as being responsible for the distribution of tens of thousands of kilograms of cocaine per month directly into the United States. The Los Valles organization employs a combination of brutal violence and public corruption in order to keep a stronghold on their base of operations in Copan.
The charges against the Valle-Valle brothers and the other two Honduran nationals are the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the DEA Miami Field Division. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of the DEA and the significant assistance provided by the Office of International Affairs, Criminal Division, U.S. Department of Justice, in the apprehension and extradition of the Valle-Valle brothers. Mr. Ferrer also commended the efforts of President of the Honduran Republic Juan Orlando Hernàndez Alvarado and other Honduran officials for their cooperation and support during the extradition of the Valle-Valle brothers. This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler.
An indictment is only an accusation and each 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.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALFREDO VARELA-HERNANDEZ, age 35, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of a removed alien.
According to the Bill of Information, on or about September 12, 2014, VARELA-HERNANDEZ was found in the United States after having been officially deported and removed on or about December 30, 2013.
ALFREDO VARELA-HERNANDEZ faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Martin L. Feldman set sentencing for April 22, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Guatemalan National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ISIDRO OROZCO-LOPEZ, age 34, a citizen of Guatemala, was charged today in a one-count Bill of Information with illegal reentry of a removed alien.
According to the bill of information, ISIDRO OROZCO-LOPEZ reentered the United States on or about November 8, 2014, after having been previously removed therefrom on or about November 25, 2013.
If convicted, ISIDRO OROZCO-LOPEZ faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Polite reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Customs and Border Protection in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Guatemalan Man Indicted, Charged with Being in the United States After DeportationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Josue Joel Castaneda-Cuyuch, 31, a citizen of Guatemala, has been indicted and charged with being found in the United States after having been previously deported.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that the defendant is an alien previously been deported and removed from the United States in August 2010. According to the indictment, on September 11, 2014, Castaneda-Cuyuch was found in the United States without having obtained the consent of the Attorney General of the United States.
The defendant was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy. Castaneda-Cuyuch pleaded not guilty and is due back in court on June 2, 2015.
The indictment is the culmination of an investigation by the United States Border Patrol, under the direction of under the direction of Patrol Agent in Charge Tom Pocorobba.
Group of Four Philadelphians Charged with Counterfeiting Gift CardsRead the Press Release
Robert Durandis, 24, Donald Charles, 25, Gilbert Pierre-Charles, 22 and Manuel Reyes-Gonzalez, 21, all of Philadelphia, Pennsylvania were charged today by superseding indictment with conspiracy, access device fraud and aggravated identity theft, announced United States Attorney Zane David Memeger. The defendants traveled throughout Pennsylvania and other locations and used counterfeit credit, debit and gift cards, encoded with stolen account numbers, to purchase numerous cartons of cigarettes, gift cards and other items.
If convicted, Robert Durandis faces a maximum possible sentence of 84 years in prison and a fine of $3.25 million; Donald Charles faces a maximum possible sentence of 42 years in prison and a fine of $2.25 million; Gilbert Pierre-Charles faces a maximum possible sentence of 69 years in prison and a fine of $3.25 million; and Manuel Reyes-Gonzalez faces a maximum possible sentence of 67 years in prison and a fine of $3 million.
The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attorney K.T. Newton
Gretna Man Sentenced for Illegal use of A Social Security NumberRead the Press Release
ANDRES VILLALVA-GUADARRAMA, age 53, a Mexican citizen living in Gretna, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal use of a Social Security Number.
U.S. District Judge Eldon E. Fallon sentenced VILLALVA-GUADARRAMA to time served and a $100 special assessment.
According to court documents, VILLALVA-GUADARRAMA, for the purpose of obtaining employment and for other purposes, knowingly and with intent to deceive, did falsely represent on an U.S. Citizenship and Immigration Services Employment Eligibility Verification Form that a Social Security Number not issued to him, was assigned to him.
U.S. Attorney Polite praised the work of the Department of Homeland Security/ICE in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Godfrey Man Indicted for Receiving Child PornographyRead the Press Release
Follow @SDILNewsA federal grand jury sitting in East St. Louis has indicted Adam B. Hill, 35, of Godfrey, Illinois, for Receipt of Child Pornography, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The indictment alleges that between July 1, 2013, and July 1, 2014, Hill knowingly received visual depictions containing child pornography using a facility of interstate commerce.
A trial date has not yet been set. If convicted of Receipt of Child Pornography, Hill faces a jail term of not less than five (5) years up to twenty (20) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
An Indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This investigation was conducted by the Madison County Sheriff’s Department and the case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Former Wackenhut Security Officer Indicted for Theft of Public FundsRead the Press Release
KNOXVILLE, Tenn. - A federal grand jury in Knoxville returned a three-count indictment on Dec. 16, 2014, against Sarah Parker, 52, of Dandridge, Tenn., for theft of U.S. Government property and money laundering. Parker appeared in court on Dec. 18, 2014, before U.S. Magistrate Judge C. Clifford Shirley, Jr. and pleaded not guilty to the charges in the indictment. She was released pending trial, which has been set for Feb. 17, 2015, in United States District Court, Knoxville.
The indictment alleges that Parker, who was employed as a Security Protective Officer with Wackenhut Services Inc. at the ETTP facility in Oak Ridge, Tenn., converted $214,022.59 to personal use, in the form of checks that came into her possession as a result of her employment. The indictment further alleges that Parker illegally engaged in financial transactions with those funds, including the purchase of a vehicle for $39,608.97 and payment of $74,327.12 to Bank of America.
If convicted, Parker faces a term of 10 years in prison for each count. The indictment also states that Parker, upon conviction, may be required to forfeit any property that is traceable to the alleged offenses.
This indictment is the result of an investigation by the U.S. Department of Energy, Office of the Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Former Rite Aid Vice President and New Jersey Businessman Charged in $14.6 Million Fraud & Kickback SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Rite Aid Corporation Vice President and a New Jersey businessman have been charged in connection with a $14.6 million, surplus inventory sales/kickback scheme.
According to United States Attorney Peter Smith, Jay Findling, age 54, of Manalapan, New Jersey, is charged in a Criminal Information filed today in the United States District Court in Harrisburg with conspiracy to commit wire fraud. Former Rite Aid Vice President Timothy P. Foster, 65, of Portland, Oregon, is charged in the same criminal information with making false statements to authorities.
The charges are based upon Foster’s and Findling’s alleged nine year conspiracy to defraud Rite Aid, a publicly-owned national drug store chain with its headquarters located in Camp Hill, Pennsylvania, via a surplus inventory sales scheme that took place between 2001 and 2010. As the Vice President for Quality Assurance, Foster’s primary responsibilities at Rite Aid involved the liquidation of surplus Rite Aid inventory across the United States. During the time period in question, Foster worked for Rite Aid in Oregon. According to the criminal information, Findling’s and Foster’s scheme succeeded by making Rite Aid believe its surplus inventory had been sold to Findling’s company, J. Finn Industries LLC, for amounts reported by Foster when, in fact, the inventory had been sold to third parties for greater amounts. Findling would then kick back a portion of his profits to Foster.
The scheme allegedly started in 2001 and continued until February of 2010 when Foster resigned from Rite Aid. According to the criminal information, Findling established a bank account in New Jersey under the name of “Rite Aid Salvage Liquidation.” The account was used by the two conspirators to collect the payments submitted by the real buyers of the surplus Rite Aid inventory. After the payments were received, Findling sent lesser amounts dictated by Foster to Rite Aid for the goods, thus inducing Rite Aid to believe the inventory had been purchased by J. Finn Industries, not the real buyers. According to the criminal information, Findling received at least $87.4 million from the real buyers of the surplus Rite Aid inventory but, with Foster’s help, only had to tender $72.8 million of that amount to Rite Aid, leaving Findling approximately $14.6 million in profits from the scheme.
The criminal information also alleges that Foster knowingly and willfully lied when he was interviewed by FBI agents in January 2014 and denied he conspired with Findling to defraud Rite Aid. Foster later recanted his false statements when he was re-interviewed by the FBI in May 2014. During that interview Foster not only admitted he conspired to defraud Rite Aid with Findling, he voluntarily surrendered $2,941,940 in cash kickbacks Findling had paid Foster over the life of the conspiracy.
The Criminal Information was filed pursuant to plea agreements with the two defendants. Both agreements, which are subject to approval by the court, require the defendants to cooperate with the government and to pay restitution to Rite Aid as ordered by the court. Findling’s plea agreement also obligates him to make a $11.6 million lump sum forfeiture payment to the government at the time he enters his guilty plea. No date has been scheduled as yet for the entry of Foster’s or Findling’s guilty plea.
The case was investigated by the Harrisburg Office of the FBI. Both defendants are being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Indictments and criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the judge after consideration of the applicable federal sentencing statutes and the federal sentencing guidelines.
Both the false statement and the conspiracy count are punishable by up to 5 years imprisonment and a $250,000 fine. Under the federal sentencing guidelines, the judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Rite Aid Vice President and New Jersey Businessman Charged in $14.6 Million Fraud & Kickback SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Rite Aid Corporation Vice President and a New Jersey businessman have been charged in connection with a $14.6 million dollar, surplus inventory sales/kickback scheme.
According to United States Attorney Peter Smith, Jay Findling, age 54, of Manalapan, New Jersey, is charged in a Criminal Information filed today in the United States District Court in Harrisburg with Conspiracy to commit Wire Fraud. Former Rite Aid Vice President Timothy P. Foster, age 65, of Portland Oregon, is charged in the same Criminal Information with making False Statements to Authorities.
The charges are based upon Foster’s and Findling’s alleged 9 year conspiracy to defraud Rite Aid, a publicly-owned national drug store chain with its headquarters located in Camp Hill, Pennsylvania, via a surplus inventory sales scheme that took place between 2001 and 2010. As the Vice President for Quality Assurance, Foster’s primary responsibilities at Rite Aid involved the liquidation of surplus Rite Aid inventory across the United States. During the time period in question, Foster worked for Rite Aid in Oregon. According to the Criminal Information, Findling’s and Foster’s scheme succeeded by making Rite Aid believe its surplus inventory had been sold to Findling’s company, J. Finn Industries, LLC, for amounts reported by Foster when, in fact, the inventory had been sold to third parties for greater amounts. Findling would then kick back a portion of his profits to Foster.
The scheme allegedly started in 2001 and continued until February of 2010 when Foster resigned from Rite Aid. According to the Criminal Information, Findling established a bank account in New Jersey under the name of “Rite Aid Salvage Liquidation.” The account was used by the two conspirators to collect the payments submitted by the real buyers of the surplus Rite Aid inventory. After the payments were received, Findling sent lesser amounts dictated by Foster to Rite Aid for the goods, thus inducing Rite Aid to believe the inventory had been purchased by J. Finn Industries, not the real buyers. According to the Criminal Information Findling received at least $87.4 million from the real buyers of the surplus Rite Aid inventory but, with Foster’s help, only had to tender $72.8 million of that amount to Rite Aid, leaving Findling approximately $14.6 million in profits from the scheme.
The Criminal Information also alleges that Foster knowingly and willfully lied when he was interviewed by FBI agents in January 2014 and denied he conspired with Findling to defraud Rite Aid. Foster Later recanted his false statements when he was re-interviewed by the FBI in May 2014. During that interview Foster not only admitted he conspired to defraud Rite Aid with Findling, he voluntarily surrendered $2,941,940 in cash kickbacks Findling had paid Foster over the life of the conspiracy.
The Criminal Information was filed pursuant to plea agreements with the two defendants. Both agreements, which are subject to approval by the court, require the defendants to cooperate with the government and to pay restitution to Rite Aid as ordered by the court. Findling’s plea agreement also obligates him to make a $11.6 million dollar, lump sum forfeiture payment to the government at the time he enters his guilty plea. No date has been scheduled as yet for the entry of Foster’s or Findling’s guilty plea.
The case was investigated by the Harrisburg Office of the FBI. Both defendants are being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Both the False Statement and the Conspiracy count are punishable by up to 5 years imprisonment and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Former Police Officer Indicted for Multiple Incidents of AssaultRead the Press Release
The Justice Department announced that a federal grand jury in Shreveport, Louisiana, returned an indictment against former Homer Police Department Officer Willie Fred Knowles, 64, charging him with violating the civil rights of multiple individuals during three different incidents, as well as with making false statements to the FBI.
Knowles was charged with one count of willfully depriving a person of her civil rights when he pushed her down and struck her about her face and body, without justification. Knowles is also charged with making false statements to the FBI about this incident. In addition, Knowles is charged with depriving the rights of two other individuals during two separate incidents in which he tased them without justification.
If convicted, Knowles faces a maximum punishment of 10 years imprisonment on the civil rights charges; and five years in prison for making false statements to the FBI.
This case was investigated by the FBI. The case was referred to the FBI by the Louisiana State Police. The case is being prosecuted by Trial Attorney Christine M. Siscaretti from the Justice Department’s Civil Rights Division and Assistant United States Attorney Mary J. Mudrick of the Western District of Louisiana.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
Former Non-Profit Director Sentenced for Defrauding Government AgenciesRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that MARCIA PETERSON, of Gretna, was sentenced yesterday for defrauding several federal and state agencies.
U.S. District Judge Martin L.C. Feldman sentenced PETERSON to 15 months imprisonment, to be followed by 36 months of supervised release. Additionally, PETERSON was ordered to pay $91,492.41 in restitution.
According to court documents, PETERSON was sentenced after having pled guilty in August to two counts of theft of government funds and one count of wire fraud. PETERSON was the executive director and accountant for CDC 58:12, a non-profit with a stated mission of transforming communities by creating opportunities in housing, education, health, and economic development. From 2011 through 2013, PETERSON improperly withdrew approximately $87,000 in federal grant funds from CDC’s bank account and spent the money on gambling and other personal expenses. Additionally, from August 2012 to December 2012, while working for CDC, PETERSON falsely claimed to the Louisiana Workforce Commission that she was out of work in order to receive $4,199 in unemployment insurance benefits.
U.S. Attorney Polite praised the work of the U.S. Department of Housing and Urban Development - Office of Inspector General, the U.S. Department of Education - Office of Inspector General, the U.S. Department of Labor - Office of Inspector General, and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Chandra Menon was in charge of the prosecution.
Former Midamar Operations Manager ChargedRead the Press Release
Philip G. Payne, 50, of Ryan, Iowa, has been charged with one count of conspiracy to make and deliver false certificates and writings; one count of conspiracy to defraud the United States; and one count of conspiracy to commit mail and wire fraud. The charges are contained in an Information filed today in United States District Court in Cedar Rapids.
According to the Information, Payne was the former Operations Manager for Midamar Corporation in Cedar Rapids, Iowa. Midamar was indicted on related charges in the Northern District of Iowa on December 5, 2014.
If convicted on all counts, Payne could be sentenced to eleven years’ imprisonment and fined up to $600,000. A term of supervised release could also be ordered upon conviction on any of the counts.
Payne is scheduled to first appear in court at 4:00 pm on January 5, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Department of Agriculture Office of Inspector General, and the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00143-LRR.Former Homer Police Officer Indicted for Civil Rights ViolationsRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced that a grand jury indicted a former Homer Police Officer Wednesday for depriving three people of their civil rights by attacking them and also for lying to FBI agents.
Former Homer Police Officer Willie Fred Knowles, 64, of Homer, was charged with three counts of deprivation of civil rights and one count of lying to a federal agency. According to the indictment, while acting as a police officer, Knowles violated a victim’s civil rights on October 29, 2012 by attacking the victim. He pushed the victim to the floor and struck the victim in the face and body causing bodily injury. He then lied to the FBI on March 1, 2013 about the incident. Knowles told agents that he was attacked and never struck the victim. In two other incidents on January 14, 2012 and July 5, 2012, Knowles deployed his TASER without justification on two victims, which caused physical injury and violated the victims’ civil rights.
Knowles faces 10 years in prison for each civil rights count and five years in prison for lying to a federal agency. He also faces three years of supervised release and a $250,000 fine.
The FBI and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick and Trial Attorney Christine M. Siscaretti from the Justice Department’s Civil Rights Division are prosecuting the case.An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former Federal Law Enforcement Agent Pleads Guilty to Theft of Agency's AmmunitionRead the Press Release
A former special agent with the Department of Health and Human Services-Office of Inspector General (HHS-OIG) pleaded guilty today to theft of government property for stealing thousands of rounds of law enforcement ammunition, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Elton Malone of HHS-OIG’s Special Investigations Branch.
Josef A. Riekers, 44, of Rockwall, Texas, pleaded guilty before Chief U.S. District Judge Jorge A. Solis of the Northern District of Texas, who set a sentencing hearing for April 8, 2015.
According to admissions in his plea agreement, Riekers, who had served as a federal law enforcement agent for over 15 years, stole ammunition from the armory at HHS-OIG’s Dallas regional office. Riekers then traded the stolen ammunition on Internet forums for other, non-government-issued ammunition that he used for his own personal benefit.
This case was investigated by HHS-OIG’s Special Investigations Branch, with assistance from the Dallas Police Department’s Criminal Intelligence Unit. The case is being prosecuted by Trial Attorneys Kevin Driscoll and Justin Weitz of the Public Integrity Section.
Former Executive Director of Gallup Housing Authority and Accomplice Sentenced to Federal Prison for Convictions on Fraud and Theft ChargesRead the Press Release
ALBUQUERQUE – The former Executive Director of the Gallup Housing Authority and an accomplice were sentenced this morning to federal prison for their convictions arising out of a scheme to defraud the United States and the U.S. Department of Housing and Urban Development (HUD) of more than $100,000.00.
Danny Garcia, 39, formerly of Gallup, N.M., and now residing in Snowflake, Ariz., was sentenced to 20 months in prison followed by three years of supervised release. His co-defendant, Michael Virruso, 62, of Gallup, N.M., was sentenced to 18 months in prison followed by three years of supervised release. Garcia also was ordered to pay $105,000.00 in restitution, including $75,000.00 that must be paid jointly by Garcia and Virruso.
The sentences were announced by U.S. Attorney Damon P. Martinez, Phyllis Robinson, Special Agent in Charge of Region 6, HUD Office of Inspector General, and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
Garcia and Virruso were indicted in Aug. 2013, on one count of conspiracy and eight counts of making false claims against the United States. Garcia also was charged with three counts of theft from programs receiving federal funds. According to the indictment, between June 2010 and Oct. 2012, Garcia and Virruso engaged in a scheme to steal federal funds provided by HUD to the Gallup Housing Authority (GHA). HUD is a federal agency whose core mission is to make quality, affordable housing accessible to all Americans. HUD oversees and funds programs designed to provide affordable housing for low-income Americans. One such program, the Capital Fund Program (CFP), provides grants to public housing agencies for the purpose of making improvements to public housing developments. GHA is a public housing agency that receives approximately $400,000.00 in CFP grants each year and Garcia was the Executive Director of GHA at the time of the offenses charged in the indictment.
As Executive Director of GHA, Garcia was responsible for selecting contractors to carry out GHA projects, reviewing and approving invoices payable by GHA, and requesting HUD funds to pay for GHA projects. According to the indictment, in summer 2010, Garcia awarded a contract to remove and replace sidewalks in a GHA housing development to a construction company that employed Virruso and appointed Virruso to act as safety inspector. While working on the project, Virruso submitted invoices to GHA for work performed by the company and for which the company received payment. Garcia used GHA funds to pay Virruso’s invoices and then obtained reimbursement from HUD’s CFP. Virruso and Garcia then formed a company together, MCL Construction. Virruso submitted a fraudulent invoice from MCL to Garcia, who approved the invoice for payment from HUD funds, and both men collected a share of the proceeds. Virruso fraudulently received more than $75,000.00 through this scheme. In addition, Garcia embezzled more than $15,000.00 of HUD funds by misusing a GHA debit card.
On July 8, 2014, both men entered guilty pleas to Counts 1 and 9 of the indictment charging them with conspiracy to commit false claims against the United States and false claims against the United States. Garcia also pleaded guilty to Count 10 of the indictment charging him with theft from a program receiving federal funds. In their respective plea agreements, Garcia and Virruso each admitted participating in the unlawful scheme described in the indictment. Garcia also admitted embezzling GHA funds by making personal purchases exceeding $5,000.00 per year using a debit card linked to a GHA bank account.“The sentencing today of Danny Garcia and Michael Virruso should send a strong message to anyone who serves in a position of public trust that abuses for the purpose of personal enrichment will be vigorously investigated to ensure they are brought to justice and debarred from future participation in government programs,” said Phyllis G. Robinson, Special Agent in Charge, Office of Inspector General, U.S. Department of Housing and Urban Development.
U.S. Attorney Damon P. Martinez commended Region 6, HUD Office of Inspector General and the Albuquerque Division of the FBI, who investigated the case, and Assistant U.S. Attorney Jeremy Peña, who prosecuted the case.
Former Defense Department Employee Sentenced to 40 Months in Prison for $2.5 Million Health Care FraudRead the Press Release
Jonathan M. Hargett, a former civilian employee of the Department of Defense, was sentenced today to serve 40 months in prison on a charge of health care fraud stemming from a scheme in which he collected over $2.2 million after submitting fraudulent claims for federal health care benefits.
The sentencing was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Robert E. Craig Jr., Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); Patrick E. McFarland, Inspector General for the Office of Personnel Management (OPM); Gregg Hirstein, Special Agent in Charge of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Central Field Office of Investigations; and Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.
Hargett, 42, formerly of Germany, pleaded guilty on Sept. 8, 2014, in the U.S. District Court for the District of Columbia. He was indicted in October 2013, extradited from Germany, and returned to the United States in July 2014. He was sentenced by the Honorable Senior Judge Paul L. Friedman. Upon completion of his prison term, Hargett will be placed on three years of supervised release. The plea agreement also calls for Hargett to pay over $2.2 million in restitution to the United States. He also is subject to a forfeiture money judgment in the same amount. The government has seized more than $704,000 from Hargett’s bank accounts, and German authorities have seized or frozen over $500,000.
“Jonathan Hargett is headed to prison because he ripped off more than $2 million from the American taxpayer,” said U.S. Attorney Machen. “His bogus medical claims drained resources from a program designed to serve wounded veterans. Defending the integrity of federal health care programs is a top priority because it protects the funds needed to provide medical services to our veterans and other deserving citizens.”
“Protecting the integrity of the Department of Defense's programs and resources, to include health care funding, is of critical importance to the Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Craig. “When government personnel display a blatant disregard for the law and intentionally divert taxpayer money to enrich themselves, DCIS and our law enforcement partners will aggressively investigate, work to ensure prosecution to the fullest extent possible, and seek to recover all available funds so they may be returned to proper use.”
“The purpose of the Federal Employees Health Benefits Program is to provide for the health and well-being of federal employees, retirees, and their families,” said Inspector General McFarland of the OPM. “Through his unscrupulous actions, Mr. Hargett not only stole from enrollees and the American taxpayers, he also violated their trust. We are all gratified to see that he will be held accountable.”
“The VA's Foreign Medical Program is extremely important to veterans who need medical care while residing or traveling abroad,” said Special Agent in Charge Hirstein. “Today's sentencing reaffirms the VA Office of Inspector General's commitment to bring to justice those who steal from such programs which promote the health and well-being of our nation's deserving veterans.”
“We applaud Mr. Hargett's sentencing and are pleased that he has been brought to justice for fraud and stealing from the American taxpayer,” said Director Robey. “We cannot emphasize enough that if you attempt to steal and commit fraud against the DOD and U.S. Army, you will be caught and brought to justice. Mr. Hargett is a prime example.”
According to a statement of offense submitted to the Court at the time of the guilty plea, Hargett worked from 1996 through 2012 in various positions as a civilian employee for the Department of Defense in Germany. From January 2011 through May 2012, he was an intelligence analyst stationed in Heidelberg. Previously, he had served in the U.S. Army from 1992 to 1996.
As a federal employee stationed overseas, Hargett was enrolled since 2002 in the Foreign Service Benefit Plan (FSBP), a health care benefit program. Because of his service in the Army, he also was eligible for health care coverage from the U.S. Department of Veterans Affairs. For veterans working or residing abroad, the VA provides this coverage through its Foreign Medical Program (VA-FMP).
From January 2007 through April 2012, according to the statement of offense, Hargett carried out a scheme to submit fraudulent claims and invoices to the FSBP and the VA-FMP. The claims falsely represented that Hargett bought prescription medications and other pharmaceutical items from a pharmacy in Germany. They also falsely represented that he had received and paid for various health care items and services from a doctor in Germany. Hargett also created and submitted forged invoices and other fraudulent paperwork, and admitted creating many of the false invoices on his government computer at the U.S. Army base in Heidelberg, Germany.
All told, Hargett submitted more than $2.5 million in false claims to the two government health care programs, for items and services Hargett never received and never paid for. As a result, Hargett wrongfully obtained more than $2.2 million, including about $943,519 from the FSBP and $1,261,512 from the VA-FMP.
This case was investigated by the Defense Criminal Investigative Service, the Office of the Inspector General for the Office of Personnel Management, the Office of the Inspector General for the Department of Veterans Affairs, and the U.S. Army Criminal Investigation Command. Assistance was provided by the Office of International Affairs in the Justice Department’s Criminal Division; the Department of Defense; U.S. Army Europe (USAREUR) Legal Office; former Assistant U.S. Attorney Courtney G. Saleski; Paralegal Specialist Donna Galindo, and former Paralegal Specialist Nicole Wattelet.
The case was prosecuted by Assistant U.S. Attorneys Ted Radway and Peter Lallas, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Assistant U.S. Attorney Diane Lucas, of the office’s Asset Forfeiture and Money Laundering Section.
Former Defense Department Employee Sentenced to 40 Months in Prison for $2.5 Million Health Care Fraud-Veteran Admits Submitting Fraudulent Claims for Medical Expenses-Read the Press Release
WASHINGTON – Jonathan M. Hargett, a former civilian employee of the Department of Defense, was sentenced today to 40 months in prison on a charge of health care fraud stemming from a scheme in which he collected over $2.2 million after submitting fraudulent claims for federal health care benefits.
The sentencing was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Robert E. Craig, Jr., Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); Patrick E. McFarland, Inspector General for the Office of Personnel Management (OPM); Gregg Hirstein, Special Agent in Charge of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Central Field Office of Investigations; and Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.
Hargett, 42, formerly of Germany, pled guilty on Sept. 8, 2014, in the U.S. District Court for the District of Columbia. He was indicted in October 2013, extradited from Germany, and returned to the United States in July 2014. He was sentenced by the Honorable Senior Judge Paul L. Friedman. Upon completion of his prison term, Hargett will be placed on three years of supervised release. The plea agreement also calls for Hargett to pay over $2.2 million in restitution to the United States. He also is subject to a forfeiture money judgment in the same amount. The government has seized more than $704,000 from Hargett’s bank accounts, and German authorities have seized or frozen over $500,000.
“Jonathan Hargett is headed to prison because he ripped off more than $2 million from the American taxpayer,” said U.S. Attorney Machen. “His bogus medical claims drained resources from a program designed to serve wounded veterans. Defending the integrity of federal health care programs is a top priority because it protects the funds needed to provide medical services to our veterans and other deserving citizens.”
“Protecting the integrity of the Department of Defense's programs and resources, to include health care funding, is of critical importance to the Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Craig. “When government personnel display a blatant disregard for the law and intentionally divert taxpayer money to enrich themselves, DCIS and our law enforcement partners will aggressively investigate, work to ensure prosecution to the fullest extent possible, and seek to recover all available funds so they may be returned to proper use.”
“The purpose of the Federal Employees Health Benefits Program is to provide for the health and well-being of Federal employees, retirees, and their families,” said Inspector General McFarland of the OPM. “Through his unscrupulous actions, Mr. Hargett not only stole from enrollees and the American taxpayers, he also violated their trust. We are all gratified to see that he will be held accountable.”
“The VA's Foreign Medical Program is extremely important to veterans who need medical care while residing or traveling abroad,” said Special Agent in Charge Hirstein. “Today's sentencing reaffirms the VA Office of Inspector General's commitment to bring to justice those who steal from such programs which promote the health and well-being of our nation's deserving veterans.”
We applaud Mr. Hargett's sentencing and are pleased that he has been brought to justice for fraud and stealing from the American taxpayer,” said Director Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “We cannot emphasize enough that if you attempt to steal and commit fraud against the DOD and U.S. Army, you will be caught and brought to justice. Mr. Hargett is a prime example.”
According to a statement of offense submitted to the Court at the time of the guilty plea, Hargett worked from 1996 through 2012 in various positions as a civilian employee for the Department of Defense in Germany. From January 2011 through May 2012, he was an intelligence analyst stationed in Heidelberg. Previously, he had served in the U.S. Army from 1992 to 1996.
As a federal employee stationed overseas, Hargett was enrolled since 2002 in the Foreign Service Benefit Plan (FSBP), a health care benefit program. Because of his service in the Army, he also was eligible for health care coverage from the U.S. Department of Veterans Affairs. For veterans working or residing abroad, the VA provides this coverage through its Foreign Medical Program (VA-FMP).
From January 2007 through April 2012, according to the statement of offense, Hargett carried out a scheme to submit fraudulent claims and invoices to the FSBP and the VA-FMP. The claims falsely represented that Hargett bought prescription medications and other pharmaceutical items from a pharmacy in Germany. They also falsely represented that he had received and paid for various health care items and services from a doctor in Germany. Hargett also created and submitted forged invoices and other fraudulent paperwork, and admitted creating many of the false invoices on his government computer at the U.S. Army base in Heidelberg, Germany.
All told, Hargett submitted more than $2.5 million in false claims to the two government health care programs, for items and services Hargett never received and never paid for. As a result, Hargett wrongfully obtained more than $2.2 million, including about $943,519 from the FSBP and $1,261,512 from the VA-FMP.
This case was investigated by the Defense Criminal Investigative Service, the Office of the Inspector General for the Office of Personnel Management, the Office of the Inspector General for the Department of Veterans Affairs, and the U.S. Army Criminal Investigation Command. Assistance was provided by the Office of International Affairs in the Justice Department’s Criminal Division; the Department of Defense; U.S. Army Europe (USAREUR) Legal Office; former Assistant U.S. Attorney Courtney G. Saleski; Paralegal Specialist Donna Galindo, and former Paralegal Specialist Nicole Wattelet.
The case was prosecuted by Assistant U.S. Attorneys Ted Radway and Peter Lallas, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Assistant U.S. Attorney Diane Lucas, of the office’s Asset Forfeiture and Money Laundering Section.
14-279Former College Bookstore Director Pleads Guilty to Fraud and False Tax Return ChargesRead the Press Release
A former director of the Clarke University bookstore in Dubuque, Iowa, who used a fictitious book supply company to falsely bill the University for more than $300,000.00, pled guilty today in federal court in Cedar Rapids.
James Spaulding, age thirty-five, from Longmont, Colorado, was convicted of one count of mail fraud and two counts of filing false tax returns.
In a plea agreement, Spaulding admitted he was the director of the Clarke University Bookstore between 2011 and 2012. Spaulding and his friend, T.D., created a fictitious corporation called RVP Wholesale Books (“RVP”), then caused RVP to issue false invoices to Clarke University purporting to show that RVP supplied the Clarke University bookstore with books. In truth, RVP never supplied the Clarke University bookstore with any books. Spaulding and T.D. split the proceeds of the fraud, totaling more than $302,000.00. Spaulding filed false tax returns for 2011 and 2012 in which he failed to disclose the illegal proceeds he obtained from the fraud. Spaulding later lied to a federal grand jury in Cedar Rapids, Iowa, by claiming RVP supplied the Clarke University bookstore with books.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Spaulding was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Spaulding faces a possible maximum sentence of twenty-six years’ imprisonment, a $750,000 fine, $300 in special assessments, seven years of supervised release following any imprisonment, and must pay the costs of prosecution.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Internal Revenue Service-Criminal Investigation and the Dubuque Police Department. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-cr-1022.
Former Beaumont Physician Sentenced for Health Care Fraud ViolationRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 75-year-old Beaumont doctor has been sentenced to federal prison for health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
John Q. A. Webb, Jr., now living in Houston, pleaded guilty on July 23, 2014 to conspiracy to commit health care fraud and was sentenced to 15 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, from January 2008 to December 2011, Webb, while he owned, operated and managed Beaumont Medical Clinic on Eastex Freeway in Beaumont, conspired with his office manager to have unlicensed individuals treat patients and then bill health care providers as if Webb had personally provided the services. To execute the scheme, Webb would allow unlicensed staff to prescribe controlled substances to patients when he was not on the premises and allowed his office manager to distribute the controlled substances directly to patients. Investigators have determined that the total amount of loss in this case for which Webb is responsible is $328,238.41. Programs suffering losses as a result of this scheme are Medicare, Medicaid, Blue Cross Blue Shield, and Aetna. Webb was indicted by a federal grand jury on Dec. 5, 2013.
This case was investigated by the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services, Federal Bureau of Investigation, and the U.S. Drug Enforcement Administration. This case was prosecuted by Special Assistant U.S. Attorney Catherine Levacy Cockrell.
Former Bank of the West Employee Arraigned on Federal Embezzlement and Identity Theft ChargesRead the Press Release
Defendant Charged with Embezzling Money from Bank of the West, Two Indian Tribal Organizations and Several Individual Account Holders
ALBUQUERQUE – Angela Giddings, 37, of Albuquerque, N.M., was arraigned this morning on a 22-count indictment charging her with embezzlement by a bank employee, embezzlement from Indian tribal organizations, and aggravated identity theft. Giddings entered a not guilty plea during today’s arraignment hearing and was released on conditions of release and pretrial services supervision pending trial, which has yet to be scheduled.
The indictment charges Giddings with 12 counts of embezzlement by a bank employee; six counts of embezzlement from Indian tribal organizations; and four counts of aggravated identity theft. The indictment alleges that Giddings committed these crimes in Bernalillo County, N.M., between Feb. 2, 2013, and July 18, 2014. At the time, Giddings was employed as a customer services manager for Bank of the West.
According to the indictment, Giddings embezzled funds entrusted to the bank by withdrawing and transferring funds from the accounts of customers without authorization and for her own use. The indictment alleges that Giddings’ allegedly unlawful withdraws and transfers ranged from $15,000.00 to $60,000.00. It also alleges that the victims of Giddings’ criminal conduct included the To’hajilee Community School Board and the Cañoncito Band of Navajos. The aggravated identity theft charges allege that Giddings used the names, addresses, and personal identifiers of individuals to commit felony offenses.
If convicted, Giddings faces a statutory maximum penalty of 30 years in prison on each of the 12 embezzlement by a bank employee charges; a statutory maximum penalty of five years in prison on each of the six embezzlement from an Indian tribal organization charges; and a mandatory two-year term of imprisonment on each of the four identity theft charges that must be served consecutive to any sentence imposed on the embezzlement charges. The indictment also includes forfeiture provisions that seek forfeiture to the United States of money and property constituting, or derived from, the proceeds of Giddings’ alleged criminal activity.
Charges in indictments are merely accusations. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Office of Inspector General of the Federal Deposit Insurance Corporation, and is being prosecuted by Assistant U.S. Attorney Jeremy Peña.
Florida Man Guilty in Mortgage Relief ScamRead the Press Release
Earlier today, a criminal information was filed charging Jonathan L. Herbert, of Lighthouse Point, Florida, with wire fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. The information charged Herbert, 36, with conducting a home loan modification scam that targeted individuals who were having difficulties making their mortgage payments. During a hearing this afternoon before United States District Judge David R. Herndon, Herbert pleaded guilty to the fraud charge contained in the criminal information.
According to the information, Herbert conducted his fraud scheme from a strip mall office located in Fort Lauderdale, Florida. Herbert usually contacted his victims through unsolicited telephone calls, introducing himself as a “federal loan officer” with the “Federal Debt Commission,” the “Federal Mortgage Marketplace,” or the “Federal Assistance Program.” Herbert used these names and titles in order to deceive the victims into believing that his fraudulent program was operated and approved by the federal government. Herbert told his victims that they qualified for a loan modification because of financial hardship or some type of illegal conduct engaged in by their lenders.
The information further charges that, after the initial phone calls, Herbert mailed letters to the victims who expressed interest in his bogus loan modification programs. These letters congratulated the victims on their acceptance into the program, quoted a new monthly mortgage payment rate, and directed the victims to begin sending their monthly mortgage payments to one of two addresses located in Washington D.C. The Washington D.C. addresses were for mailboxes which Herbert had rented at UPS Stores. Pursuant to forwarding orders Herbert put in place with these UPS stores, the victims’ payments were then re-routed to Herbert in Florida.
According to the information, Herbert did not apply any of the money he received from the victims to reduce their home loan debt. Instead, he used the money he received from the victims for his own personal expenses and to continue his fraudulent operation. The total amount of losses sustained by the victims as a result of Herbert’s fraud scheme is approximately $750,000.
One of Herbert’s victims resides in Troy, Illinois. The information charges that during a telephone call in September 2013, Herbert falsely told this victim that the Federal Debt Commission had selected her to benefit from a new federal mortgage assistance program instituted by President Obama.
“The criminal conduct involved in this case is truly despicable,” said United States Attorney Wigginton. “Herbert preyed upon people who were already vulnerable due to financial hardship. By pretending that he was acting on behalf of the government and calling to help them, he stole their money and made their situations worse. The United States Attorney’s Office for Southern Illinois will aggressively prosecute individuals who commit these types of frauds.”
“Herbert was convicted today of operating a nationwide mortgage modification fraud scheme that he falsely claimed was affiliated with federal housing aid programs, including Home Affordable Modification Program (HAMP),” said Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP). “Fraud perpetrated at the expense of struggling homeowners and under the guise of HAMP or other TARP program is reprehensible, and SIGTARP and our law enforcement partners will ensure that justice is served for perpetrators of these crimes.”
Herbert’s sentencing hearing has been scheduled for March 27, 2015, at 11:00 AM, at the Federal Courthouse in East St. Louis, Illinois. Wire fraud that involves telemarketing and victimizes persons over the age of 55 is punishable by up to 30 years’ imprisonment, and/or a $250,000 fine, and up to five years of supervised release. Herbert’s actual sentence will be determined by the court and will be guided by the advisory federal Sentencing Guidelines. After his plea, Herbert was taken into custody and will be held without bond awaiting sentencing.
In July of this year, the Federal Trade Commission (“FTC”) took legal action to shut down Herbert’s business. The FTC has cooperated with, and provided assistance to, the United States Attorney’s Office, the USPIS, and SIGTARP.
The investigation is being conducted by the United States Postal Inspection Service (“USPIS”) and the Treasury Department’s Special Inspector for the Troubled Asset Relief Program (“SIGTARP”). The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Florida Man Guilty in Mortgage Relief ScamRead the Press Release
Follow @SDILNewsEarlier today, a criminal information was filed charging Jonathan L. Herbert, of Lighthouse Point, Florida, with wire fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. The information charged Herbert, 36, with conducting a home loan modification scam that targeted individuals who were having difficulties making their mortgage payments. During a hearing this afternoon before United States District Judge David R. Herndon, Herbert pled guilty to the fraud charge contained in the criminal information.
According to the information, Herbert conducted his fraud scheme from a strip mall office located in Fort Lauderdale, Florida. Herbert usually contacted his victims through unsolicited telephone calls, introducing himself as a “federal loan officer” with the “Federal Debt Commission,” the “Federal Mortgage Marketplace,” or the “Federal Assistance Program.” Herbert used these names and titles in order to deceive the victims into believing that his fraudulent program was operated and approved by the federal government. Herbert told his victims that they qualified for a loan modification because of financial hardship or some type of illegal conduct engaged in by their lenders.
The information further charges that, after the initial phone calls, Herbert mailed letters to the victims who expressed interest in his bogus loan modification programs. These letters congratulated the victims on their acceptance into the program, quoted a new monthly mortgage payment rate, and directed the victims to begin sending their monthly mortgage payments to one of two addresses located in Washington D.C. The Washington D.C. addresses were for mailboxes which Herbert had rented at UPS Stores. Pursuant to forwarding orders Herbert put in place with these UPS stores, the victims’ payments were then re-routed to Herbert in Florida.
According to the information, Herbert did not apply any of the money he received from the victims to reduce their home loan debt. Instead, he used the money he received from the victims for his own personal expenses and to continue his fraudulent operation. The total amount of losses sustained by the victims as a result of Herbert’s fraud scheme is approximately $750,000.
One of Herbert’s victims resides in Troy, Illinois. The information charges that during a telephone call in September 2013, Herbert falsely told this victim that the Federal Debt Commission had selected her to benefit from a new federal mortgage assistance program instituted by President Obama.
In commenting on today’s conviction, United States Attorney Wigginton stated: “The criminal conduct involved in this case is truly despicable. Herbert preyed upon people who were already vulnerable due to financial hardship. By pretending that he was acting on behalf of the government and calling to help them, he stole their money and made their situations worse. The United States Attorney’s Office for Southern Illinois will aggressively prosecute individuals who commit these types of frauds.”
“Herbert was convicted today of operating a nationwide mortgage modification fraud scheme that he falsely claimed was affiliated with federal housing aid programs, including Home Affordable Modification Program (HAMP),” said Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP). “Fraud perpetrated at the expense of struggling homeowners and under the guise of HAMP or other TARP program is reprehensible, and SIGTARP and our law enforcement partners will ensure that justice is served for perpetrators of these crimes.”
Herbert’s sentencing hearing has been scheduled for March 27, 2015, at 11:00 AM, at the Federal Courthouse in East St. Louis, Illinois. Wire fraud which involves telemarketing and victimizes persons over the age of 55 is punishable by up to 30 years’ imprisonment, and/or a $250,000 fine, and up to five years of supervised release. Herbert’s actual sentence will be determined by the court and will be guided by the advisory federal Sentencing Guidelines. After his plea, Herbert was taken into custody and will be held without bond awaiting sentencing.
In July of this year, the Federal Trade Commission (“FTC”) took legal action to shut down Herbert’s business. The FTC has cooperated with, and provided assistance to, the United States Attorney’s Office, the USPIS, and SIGTARP.
The investigation is being conducted by the United States Postal Inspection Service (“USPIS”) and the Treasury Department’s Special Inspector for the Troubled Asset Relief Program (“SIGTARP”). The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Five Illegal Aliens Charged with Immigration ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced that separate criminal charges were filed yesterday in U.S. District Court in Harrisburg against five illegal aliens.
According to United States Attorney Peter Smith, Delfino Garcia-Arroyo, age 38, was charged in a one-count indictment by a federal grand jury in Harrisburg alleging that Garcia-Arroyo, a Mexican citizen, who was previously arrested and deported from the United States on February 14, 2012, reentered the United States unlawfully and was found in Dauphin County, Pennsylvania.
If convicted, Garcia-Arroyo faces a maximum sentence of up to 2 years’ imprisonment and a $250,000 fine.
Luis Torres-Escalantes, age 31, was charged in a one-count indictment by a federal grand jury alleging that Torres-Escalantes, a Mexican citizen, who was previously arrested and deported from the United States on November 5, 2012, reentered the United States unlawfully and found in York County, Pennsylvania.
If convicted, Torres-Escalantes faces a maximum sentence of up to 10 years’ imprisonment and a $250,000 fine.
Nicolas Antonio Huc-Moo, age 34, was charged in a one-count indictment by a federal grand jury alleging that Huc-Moo, a Guatemalan citizen, who was previously arrested and deported from the United States on August 27, 2008, reentered the United States unlawfully and was found in York County, Pennsylvania.
If convicted, Huc-Moo faces a maximum sentence of up to 10 years’ imprisonment and a $250,000 fine.
Alfredo Hernandez-Sanchez, age 24, was charged in a one-count indictment by a federal grand jury alleging that Hernandez-Sanchez, a Mexican citizen, who was previously arrested and deported from the United States on April 14, 2011, reentered the United States unlawfully and was found in Franklin County, Pennsylvania.
If convicted, Hernandez-Sanchez faces a maximum sentence of up to 2 years’ imprisonment and a $250,000 fine.
Cresencio Vazquez-Munoz, age 30, was charged in a one-count indictment by a federal grand jury alleging that Vazquez-Munoz, a Mexican citizen, who was previously arrested and deported from the United States on December 17, 2012, reentered the United States unlawfully and was found in Dauphin County, Pennsylvania.
If convicted, Vazquez-Munoz faces a maximum sentence of up to 10 years’ imprisonment and a $250,000 fine.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and are being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Five Employees, Including the Former President of Premier Links, Inc. Charged with Alleged $9 Million Microcap Stock FraudRead the Press Release
New York residents Margaret Amatulli, Frederick Anderson, Darnell Jackson, and Nicholas Spinelli were arrested today on charges that they engaged in a wire and mail fraud conspiracy to steal over nine million dollars from over 300 investors. A fifth charged defendant, Christopher Damon, is being sought for arrest by the Federal Bureau of Investigation. The five defendants worked at Premier Links, Inc., a Staten Island-based company that operated as an unregistered broker-dealer between 2006 and 2012. As alleged in the criminal complaint unsealed today in federal court in Brooklyn, the defendants targeted elderly investors to steal their money through a fraudulent microcap stock scheme and then used the investors’ money for personal expenses. To date, investigators have identified at least $9.3 million in investor losses from the scheme. If convicted, each defendant faces up to 20 years’ imprisonment, as well as a fine equal to double the investors’ losses, and mandatory restitution to the victims.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“As alleged, the defendants conned elderly investors to steal their savings to fund their own personal expenses. Now, their day of reckoning has arrived. We are committed to protecting the investing public from the acts of fraudsters,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation, and thanked the Securities and Exchange Commission for its assistance.
FBI Assistant Director-in-Charge Venizelos stated, “What was intended as a get-rich-quick scheme was, in fact, a cowardly plan to deceive some of society’s most vulnerable victims, luring them into a false sense of security by promising unrealistic returns on their investments. Unlike those arrested today, the FBI and our partners intend to keep the promises we make to those who invest their faith in us. Those who employ schemes to capitalize on the pain and suffering of others will most certainly be brought to justice.”
According to the complaint unsealed this morning, Premier Links operated from a Staten Island office purportedly to sell stock to investors. However, the defendants and others at Premier Links were never registered as broker-dealers with the Securities and Exchange Commission. Instead, Premier Links operated as a “boiler room,” using “cold callers” and other means to entice victims into investing their money in securities with promises of outsized returns. The defendants located their victims by using a printed list, which one of the defendants referred to as “the suckers list.” Once the victims wired or mailed money to Premier Links, the defendants and other co-conspirators typically stole the funds for their personal use. Bank records show that the defendants converted the investors’ money into cash through over 900 ATM and teller withdrawals. They also wrote checks to themselves and made purchases at Bloomingdales, the Gap, Macy’s, various restaurants, gas stations, and Party City, among other places.
Three defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Roanne L. Mann at the federal courthouse in Brooklyn. Darnell Jackson is expected to be presented before a United States Magistrate Judge in the Northern District of New York later today for removal proceedings to the Eastern District of New York.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney Jack Dennehy.
This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendants:
MARGARET AMATULLI
Age: 45
Brooklyn, New York
FREDERICK ANDERSON
Age: 28
Far Rockaway, New York
CHRISTOPHER DAMON
Age: 45
Queens, New York
DARNELL JACKSON
Age: 48
Hudson, New York
NICHOLAS SPINELLI
Age: 30
Staten Island, New York
E.D.N.Y. Docket No. 2014 M 1082
Five Defendants Charged in Fraudulent Life Insurance Policies SchemeRead the Press Release
SAN FRANCISCO – Behnam Halali, Ernesto Magat, Kraig Jilge, Karen Gagarin, and Alomkone Soundara, a/k/a Alex Soundara, were charged in an indictment unsealed yesterday in federal court in connection with a scheme involving fraudulent life insurance policies while each was employed at the American Income Life Insurance Company (AIL), announced U.S. Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Andrew Toth, and Commissioner Dave Jones of the California Department of Insurance.
According to the indictment, the defendants participated in a scheme involving the submission of applications for life insurance policies on behalf of people who did not know that a policy was applied for or issued in their name and/or did not want a life insurance policy. The defendants then shared the commissions and bonuses issued by AIL in connection with the fraudulent policies. The indictment alleges that the defendants paid recruiters to find people willing to take medical exams in exchange for approximately $100, and then took the personal information associated with those people and submitted applications for life insurance in their names, in many cases without the individuals’ knowledge. The defendants also allegedly paid people to participate in a fictitious survey of a medical exam company, and took the personal information associated with those people and submitted applications for life insurance, in many cases without the individuals’ knowledge. In some cases, the defendants allegedly created phony driver’s licenses so that they and their co-conspirators could take medical exams purporting to be the applicants. The defendants opened hundreds of bank accounts to fund the premiums on the fraudulent policies, and typically paid one to four months of premiums before letting the policies lapse, according to the Indictment. The defendants and their co-conspirators also returned verification calls to AIL purporting to be the applicants on the fraudulent applications from telephones set up exclusively for the fraudulent scheme. In an effort to avoid detection, the defendants listed addresses of gas stations and apartment complexes on many of the fraudulent applications, and fabricated the names of the beneficiaries of the policies.
Halali, 29, of San Jose; Magat, 32, of Hayward; Jilge, 30, San Jose; Gagarin, 29, of San Jose; and Soundara, 33, of Oakland, are charged with conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349; substantive wire fraud counts, in violation of Title 18, United States, Code, Section 1343; and aggravated identity theft, in violation of Title 18, United States Code, § 1028A(a)(1). Halali, Magat, and Jilge are also charged with money laundering, in violation of Title 18, United States Code, § 1957.
The maximum statutory penalties for conspiracy to commit wire fraud and for wire fraud charges in violation of 18 U.S.C. §§ 1349 and 1343 are a prison term of 20 years, and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. The maximum statutory penalty for aggravated identity theft in violation of 18 U.S.C. § 1028A is a mandatory prison sentence of 2 years. The maximum statutory penalties for money laundering in violation of 18 U.S.C. § 1957 is a prison term of 10 years, and a fine of $250,000 or twice the value of the criminally derived property.
All of the defendants appeared before Magistrate Judge Laurel Beeler for their initial appearances yesterday morning, and the case has been assigned to the Honorable Susan Illston, United States District Judge. The defendants are scheduled to have a follow-up appearance before Judge Beeler for ID of counsel and to finalize the defendants bail conditions tomorrow, Dec.19, 2014, at 9:30 a.m. All five defendants are also scheduled to appear before Judge Illston on Jan. 23, 2015, at 11:00 a.m.
Kim A. Berger is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Bridget Kilkenney. This prosecution is the result of an investigation by the FBI, the IRS, Criminal Investigation Division, and the California Department of Insurance.
Please note that an indictment contains only allegations. As with all defendants, Behnam Halali, Ernesto Magat, Kraig Jilge, Karen Gagarin, and Alomkone Soundara, must be presumed innocent unless and until they are proven guilty.
Federal Charges Filed in Two Separate Hash Oil ExplosionsRead the Press Release
PORTLAND, Ore. – Federal prosecutors charged three people in connection with two separate explosions tied to the illegal and dangerous practice of extracting hash oil from marijuana, announced U.S. Attorney S. Amanda Marshall.
“Manufacturing hash oil poses a significant risk to families, neighbors and the general public and is illegal under federal law,” said U.S. Attorney Marshall. “An explosion and fire caused by hash oil production at a Portland apartment complex and a Tigard 76 gas station could have caused serious injuries to unaware bystanders. We will not allow this dangerous conduct to endanger the public.”
Hash oil is produced by extracting the cannabinoids from plant material with a solvent. The explosions are caused by the chemical extraction process in which butane gas is used to extract the tetrahydrocannabinol or THC from the marijuana plant. During the extraction process, the gas can quickly fill an enclosed space, and be ignited by something as ordinary as a pilot light, a spark from an electrical outlet, or someone lighting a cigarette or joint.
Two people were charged in connection with an explosion and fire at a Tigard, Oregon 76 gas station on November 23, 2014. Police and Fire were called to the 76 station at 10775 SW Greenburg Road, in response to an explosion in the bathroom of the gas station. Jose Rios-Soto and Dennis Tapia-Garcia are charged with endangering human life while manufacturing controlled substances, and manufacturing hash oil.
One person was charged in connection with an explosion and fire at a Portland apartment complex on December 8, 2014. Police were called to a disturbance at the complex and found damage from an explosion. The explosion occurred when the defendant lit a cigarette while using butane gas to manufacturing hash oil. The explosion was severe enough to blow out an exterior wall one to two feet. Edwin Stacy is charged with endangering human life while manufacturing controlled substances, and manufacturing hash oil.
“These incidents present a very real danger to the public. In our most recent case one man suffered serious burns and several people were displaced from their homes because of damage created by the explosion,” said Portland Fire Investigator Rick McGraw.
Endangering human life while manufacturing controlled substances is punishable by up to ten years in prison and three years of supervised release, and manufacturing hash oil is punishable by up to five years in prison and three years of supervised release.
The charges in the indictment are only allegations and a person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
These two cases were investigated by Tigard Police Department, Tualatin Valley Fire & Rescue, Portland Police Bureau and Portland Fire & Rescue. Assistant U.S. Attorneys Pamala Holsinger and Scott Kerin are handling the prosecution.
Fairport Woman Sentenced for Lying to Federal InvestigatorsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Ann Marie Laurini, 48, of Fairport, N.Y., who was convicted of making false statements to Special Agents of the Internal Revenue Service, was sentenced to one year probation by U.S. District Judge Frank P. Geraci.Assistant U.S. Attorney John J. Field, who handled the case, stated that Laurini repeatedly lied to IRS agents in connection with an investigation of Kenneth Griffin and others into financial fraud and money-laundering crimes. The defendant was employed by Griffin from March 2006 to May 2008, and engaged in acts that furthered the financial fraud. Laurini was interviewed by federal agents on several occasions concerning her knowledge and involvement in the fraud and during those interviews she falsely stated that she had not engaged in various acts of deception in furtherance of the fraud. The investigation ultimately resulted in charges against Kenneth Griffin, Brian Campbell, and two others, all of whom have been convicted.
The sentencing is the culmination of an investigation by the Internal Revenue Service Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.