Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 31 October 2014
Tahlequah Man Pleads Guilty to Possession of a Controlled Substance by DeceptionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ROBERT JAMES KOHNE, age 24, of Tahlequah, Oklahoma pled guilty on October 29, 2014, to Obtaining Possession of a Controlled Substance by Deception, in violation of Title 21, United States Code, Section 843(a)(3).
Charges are a result of an investigation by the Oklahoma Bureau of Narcotics and was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney. The defendant was indicted in July, 2014.
The Information alleged that on or about March 21, 2013, in the Eastern District of Oklahoma, the defendant knowingly and intentionally obtained possession of Oxycodone, a Schedule II Controlled Substance, by deception, by providing a Walmart pharmacy clerk with a false prescription for Oxycodone.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 4 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Shannon Henson represented the United States.
Tahlequah Man Pleads Guilty to Drug ConspiracyRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DANIEL WAYNE MAULDIN, age 25, of Tahlequah, Oklahoma pled guilty on October 29, 2014, to Drug Conspiracy, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
Charges are a result of an investigation by the Oklahoma Bureau of Narcotics and was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney. The defendant was indicted in July, 2014.
The Indictment alleged that beginning in or about January 2010, the exact date being unknown to the Grand Jury, and continuing up to and including the date of the Indictment, in the Eastern District of Oklahoma and elsewhere, the defendant did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States by knowingly and intentionally possessing with intent to distribute and distributing a mixture or substance containing a detectable amount of Oxycodone, a Schedule II Controlled Substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 20 years imprisonment and/or up to a $1,000,000.00 fine.
Assistant United States Attorney Shannon Henson represented the United States.
Software Company CEO and Former Adjunct Columbia Business School Professor Arrested and Charged in Manhattan Federal Court in Connection with Multimillion-Dollar Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that GREGORY RORKE was arrested this morning on securities and wire fraud charges stemming from his alleged scheme to defraud investors in his company, Navagate, Inc. (“Navagate”), of approximately $3 million dollars. RORKE was presented today in Manhattan federal court before United States Magistrate Judge Gabriel W. Gorenstein.
U.S. Attorney Preet Bharara said: “As alleged, Gregory Rorke grossly misrepresented his character and financial stability to investors, whom he then defrauded of millions of dollars. I want to thank the Federal Bureau of Investigation and the Securities and Exchange Commission for their tireless work on this case.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Rorke bilked clients out of approximately $3 million based on lies and false representations of his and Navagate’s financial worth. The arrest of Rorke should serve as a reminder that lying to investors comes at a cost. The FBI will continue to aggressively pursue those who engage in securities fraud in an effort to prevent future victimization of unsuspecting investors and to protect the integrity of the financial market.”
According to the two-count Complaint unsealed today in Manhattan federal court:
From at least December 2009 through the present, RORKE engaged in a fraudulent scheme to mislead investors into making investments in a convertible debt offering (the “Navagate Offering”) in his company, Navagate. RORKE, a former adjunct professor at Columbia Business School, was the co-founder, chief executive, and principal owner of Navagate. RORKE solicited investments and was involved in the daily management and operation of Navagate.
RORKE solicited investor contributions to the Navagate Offering based on materially false and fraudulent misrepresentations. In particular, RORKE signed and provided to investors a personal guarantee supported by a financial statement. The financial statement falsely indicated that Rorke personally had at least $12 million in assets, including more than $1 million in cash, more than $5 million in “readily marketable securities” and a home worth more than $1 million. In truth, and as RORKE well knew, the majority of the pledged assets did not belong to RORKE.
In addition, in order to obtain access to funds invested by Navagate investors and maintained in an escrow account, RORKE signed a notarized affidavit indicating that he had paid monies owed to the Internal Revenue Service in satisfaction of Navagate’s tax liabilities. In truth, the tax liabilities had not been paid, remained outstanding, and were actually increasing.
Further, on November 28, 2012, after receiving multiple complaints from Navagate investors demanding repayment and/or threatening to sue RORKE, RORKE forwarded an email purporting to be from a representative of Hong Kong Shanghai Bank Corporation (“HSBC”), which falsely stated that HSBC had just signed a multimillion-dollar contract with Navagate when, in truth and in fact, the email appears to have been a complete fabrication.
As a result of his fraudulent scheme, RORKE raised approximately $3 million in investor money from more than 30 investors.
RORKE, 60, was arrested this morning at his residence in Bronxville, New York. He is charged with one count of wire fraud and one count of securities fraud, each of which carries a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against RORKE and Navagate.
Mr. Bharara praised the work of the FBI, and thanked the SEC for its assistance. He added that the investigation is continuing.
Today’s announcement is part of efforts underway 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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold and Eugene Ingoglia are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is
presumed innocent unless and until proven guilty.
U.S. v. Gregory Rorke Complaint
Slippery Rock Man Sentenced to 9 Years in Prison for Sexually Explicit Videos and Images of MinorsRead the Press Release
PITTSBURGH - A Butler County resident has been sentenced in federal court to nine years imprisonment, to be followed by a lifetime of supervised release, on his conviction of receipt and possession of materials depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Mark Beres, 54, formerly of Slippery Rock, Pa.
According to information presented to the court, on July 1, 2008, Beres knowingly received visual depictions of minors engaged in sexually explicit conduct by computer and the United States Mail. In addition, or about April 23, 2013, Beres knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Beres.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sewickley Woman Sentenced to 15 Months in Prison for Health Care FraudRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 15 months in prison on her conviction of health care fraud, United States Attorney David J. Hickton announced today.
United States District Judge Mark Hornak imposed the sentence on Mary Monica Wilson-Lefler, 64, of Sewickley, PA.
According to the information presented to the court, Wilson-Lefler was a salesperson who offered two durable medical equipment companies in the Pittsburgh area a business arrangement involving special air mattresses, known as powered pressure reducing mattresses or PPRAMS. PPRAMS are designed to reduce serious skin ulcers on patients who are essentially bedridden. She visited long term care (LTC) facilities to find patients, and handled all of the paperwork necessary to enable the DME companies to bill Highmark Blue Cross/Blue Shield's Security Blue Medicare Program. In order to qualify for Medicare coverage for these PPRAMS, a doctor must order the item in writing. In this case, Wilson-Lefler prepared and sent by fax to attending physicians requests for orders for the PPRAMS. The faxed information included patient skin condition reports that falsely reported that the patients all had serious skin ulcers. Some of these patient skin condition reports contained forged signatures of the LTC staff and some had forged signatures of physicians. In reality, none of the patients had serious skin ulcers or any other qualifying conditions that would meet the Medicare coverage requirements. There were about 83 patients from four facilities in whose names the false claims were made. The total billed was approximately $400,000, and the total paid to the two DME companies was about $200,000.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the United States Food and Drug Administration-Office of Criminal Investigations, for the investigation leading to the successful prosecution of Mary Monica Wilson-Lefler.
Sangerville Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Portland, Maine: United States Attorney Thomas E. Delahanty II announced that James
Stile, 58, of Sangerville, Maine, pleaded guilty yesterday in U.S. District Court in Portland to
pharmacy robbery.Court records and proceedings reveal that on September 12, 2011, Stile entered the E.W.
Moore and Sons pharmacy in Bingham, Maine and pulled what appeared to be a sawed off
shotgun from his pants. Stile pointed the gun at the owner and the three employees who were
behind the pharmacy counter. He then ordered the three employees to lie on the floor behind the
counter. A customer subsequently entered the store and Stile ordered the customer to go behind
the pharmacy counter with the employees. Stile told the owner of the pharmacy to fill a bag with
narcotics. As the owner filled the bag with narcotics, Stile tied the hands and feet of the
customer and the three employees. Once the bag was full of narcotics, Stile instructed the owner
to lie down on the floor. Stile then tied the hands and feet of the owner and fled the store.Stile faces up to 25 years in prison, a $250,000 fine and restitution. He will be sentenced
after the completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms, the
Somerset County Sheriff’s Office, the Piscataquis County Sheriff’s Office, the Maine State
Police and the Maine Drug Enforcement Agency.Sanford Man Sentenced to More Than Six Years for Aiding and Abetting Commercial RobberyRead the Press Release
Orlando, FL – Senior U.S. District Judge John Antoon, II today sentenced Jacques Maddox (23, Sanford) to six years and six months in federal prison for aiding and abetting the attempted robbery of a Walgreens store in Orlando. A federal jury found Maddox guilty on July 9, 2014.
According to testimony and evidence presented at trial, on the night of September 2, 2013, Maddox and his friend, Joe E. Clinton, went to the Walgreens store on South Kirkman Road. After surveilling the store for hours, Maddox and Clinton entered the store for the final time around 11:00 p.m. Maddox acted as a lookout near the center of the store, while Clinton forced the store manager inside the office at gunpoint. Clinton demanded that the manager open the store’s safe, threatening to shoot him if he failed to do so. When the manager refused to comply with Clinton’s demands, Clinton pistol whipped him, striking him several times in the head and shoulders. Clinton then ran out of the office, met up with Maddox in the middle of the store, and pulled his gun on other employees and store customers as he and Maddox fled the scene.
On March 24, 2014, Clinton pleaded guilty to one count of aiding and abetting the attempted robbery of the Walgreens on September 2, 2013, one count of robbery of a CVS store located at 1201 East Colonial Drive in Orlando on September 10, 2013, and two counts of using and carrying a firearm during and in relation to those violent crimes. He faces a maximum penalty of 20 years in prison on each of the attempted robbery and robbery counts. For the firearms convictions, Clinton faces a combined mandatory minimum sentence of 32 years’ imprisonment, to run consecutively to any other prison term imposed. His sentencing hearing is scheduled for November 14, 2014.
This case was investigated by FBI, ATF, and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.
Russian National and Three Others Charged in Kickback Scheme to Obtain Contracts to Transport Russian Nuclear Fuel to the U.S.Read the Press Release
American Defendants Allegedly Paid Over $1.6 Million in Bribes to Russian National to Obtain
Over $33 Million in Non-compete Contracts
Greenbelt, Maryland - A criminal complaint was unsealed late yesterday charging Vadim Mikerin, age 55, a Russian national residing in Chevy Chase, Maryland, with conspiring to commit extortion in connection with a scheme to obtain contracts from a Russian company without having to compete for the contracts. A separate criminal complaint charges Daren Condrey and his wife Carol Condrey, both age 49, of Glenwood, Maryland, and Boris Rubizhevsky, age 63, of Closter, New Jersey, with conspiring to commit wire fraud in connection with the scheme.The criminal complaints were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; John R. Hartman, Deputy Inspector General for Investigations, Office of Inspector General at the U.S. Department of Energy; and Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office.
“Kickbacks deprive honest competitors of the opportunity to compete for business, and they cheat a company of its right to faithful decisions by its employee,” said U.S. Attorney Rod J. Rosenstein.
In1992, the U.S. and Russia executed an agreement to dispose of Russian highly enriched uranium from disassembled nuclear warheads and for the sale of the material, once down-blended, to U.S. nuclear utility providers. JSC Techsnabexport (TENEX), based in Moscow, Russia, was responsible for the sale and transportation of this material to the United States.
Vadim Mikerin is the general director of TENAM USA, based in Bethesda, Maryland. TENAM is a subsidiary of TENEX. TENEX is a subsidiary of ROSATOM, the Russian State-owned Nuclear Corporation, which is the Russian counterpart organization of the U.S. Department of Energy.
Daren Condrey and Carol Condrey are principals of Transport Logistics International (TLI), based in Fulton, Maryland. Since 1996, TLI has contracted with TENEX to transport uranium from Russia to the U.S. Boris Rubizhevsky is the president of NEXGEN Security (NEXGEN), a New Jersey corporation. From 2011 through 2012, Rubizhevsky served as a consultant to TENAM and to Mikerin.
Beginning in 2006, Mikerin allegedly conspired with the Condreys, Rubizhevsky and others to defraud TENEX by causing contracts for the shipment of uranium from Russia to the U.S. to be awarded to the U.S. defendants and their companies without having to compete for the contracts.
According to the complaints and supporting affidavits, the Condreys and TLI bribed Mikerin to receive lucrative, non-compete contracts from TENEX. TLI has also pursued other business ventures with TENEX for transportation under separate contracts. From at least 1996 to about 2013, the Condreys and others allegedly caused TLI to pay at least $1,692,995 in kickback payments to Mikerin in exchange for receiving over $33 million in noncompetitive contracts from TENEX.
According to the affidavits, in November 2011, Mikerin required a middle man to accept kickback payments. Mikerin used Rubizhevsky and his company, NEXGEN Security, to serve as this middleman.
The affidavits allege that the kickback payments to Mikerin were disguised as consulting fees or other fictitious expenses. The defendants also entered into sham contracts with offshore shell entities knowing that the payments to these entities were in fact being made to Mikerin.
Mikerin faces a maximum sentence of 20 years in prison for the extortion conspiracy. The Condreys and Rubizhevsky face a maximum sentence of 20 years in prison for the wire fraud conspiracy. Daren Condrey had his initial appearance Wednesday, and Carol Condrey and Mikerin had their initial appearances yesterday, in U.S. District Court in Greenbelt. The Condreys were released pending trial. Mikerin was detained pending his detention hearing today at 4:30 p.m. Boris Rubizhevsky had his initial appearance in federal court in New Jersey, and will have his initial appearance in Greenbelt today at 11:15 a.m.
A criminal complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DOE-OIG and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Adam K. Ake and James A. Crowell IV, who are prosecuting the case.
Rufus Johnson and 3 Others Indicted for Operating Fraudulent Bail Bonds Scheme in Orleans ParishRead the Press Release
U. S. Attorney Kenneth A. Polite announced that RUFUS JOHNSON, age 65, JAMES JOHNSON, age 36, PERRY BECNEL, age 38, and JOSEPHINE SPELLMAN, age 54, all of New Orleans, were indicted today by a federal grand jury for charges of conspiracy to commit honest services fraud, mail fraud, and wire fraud, and conspiracy to obstruct justice. The indictment also charges making false statements to the Federal Bureau of Investigation and a federal grand jury, as well as conspiracy to use interstate transportation in aid of a racketeering enterprise and conspiracy to commit unauthorized access to a protected computer. The defendants are charged as follows:
COUNT
CHARGE
DEFENDANT
RANGE OF PUNISHMENT
1
Conspiracy to Commit Honest Services Fraud, Mail Fraud, Wire Fraud-18 USC 1341, 1343, 1349
All Defendants
NMT 20 Years, NMT 250,000 Fine, NMT 3 Years Sup. Rel.
2
Conspiracy to Commit Use of an Interstate Facility in Aid of Racketeering Activity-18 USC 371
R. Johnson, Becnel
NMT 5 Years, NMT 250,000 Fine, NMT 3 Years, Sup. Release
3
Conspiracy to Commit Unauthorized Access to a Protected Computer-18 USC 371
R. Johnson, Becnel
NMT 5 Years, NMT 250,000 Fine, NMT 3 Years, Sup. Release
4
Conspiracy to Obstruct Justice-18 USC 1512(k)
All Defendants
NMT 20 Years, NMT 250,000 Fine, NMT 3 Years Sup. Rel.
5
False Statements-18 USC 1001
R. Johnson
NMT 5 Years, NMT 250,000 Fine, NMT 3 Years, Sup. Release
6
False Statements-18 USC 1001
R. Johnson
NMT 5 Years, NMT 250,000 Fine, NMT 3 Years, Sup. Release
7
False Statements-18 USC 1001
R. Johnson
NMT 5 Years, NMT 250,000 Fine, NMT 3 Years, Sup. Release
8
False Statements-18 USC 1001
J. Johnson
NMT 5 Years, NMT 250,000 Fine, NMT 3 Years, Sup. Release
9
False Statements-18 USC 1001
J. Spellman
NMT 5 Years, NMT 250,000 Fine, NMT 3 Years, Sup. Release
10
False Declarations before a Grand Jury-18 USC 1623
J. Johnson
NMT 5 Years, NMT 250,000 Fine, NMT 3 Years, Sup. Release
According to the indictment, RUFUS JOHNSON, JAMES JOHNSON, BECNEL, and SPELLMAN conspired to profit by releasing Orleans Parish Prison inmates through various means, including by bribing public employees of the Clerk of Court for Criminal District Court and the Orleans Parish Sheriff’s Office to release inmates on their own recognizance (“R.O.R.”) and to access and alter protected law enforcement databases; by approaching judges for R.O.R.s and bail reductions; and by acting as commercial bail bondsmen without a license through signing other bondsmen’s names and splitting premiums. The indictment also contains allegations that these defendants attempted to obstruct justice and to deny the Federal Bureau of Investigation relevant information. RUFUS JOHNSON, JAMES JOHNSON, and JOSEPHINE SPELLMAN are charged with making false statements to the FBI and the grand jury investigating this matter. The indictment further alleges that JAMES JOHNSON abused his parole power as an elected Member of the Orleans Parish Democratic Executive Committee, lied before a federal grand jury, and schemed to disguise conflicts of interest relating to his legal representation of defendants who had been bonded out of jail by his bonding business.
JAMES JOHNSON is an attorney and member of the Louisiana Bar.
“Today’s indictment shows our continued commitment to rooting out local corruption and fraud,” stated U.S. Attorney Polite., “and it also exposes some of the vulnerabilities in our local criminal justice system that can be exploited by the unscrupulous. The integrity of our local institutions depends upon the integrity of our public employees and elected officials.”
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilty of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and would like to acknowledge the assistance of the Metropolitan Crime Commission, the New Orleans Police Department and the Orleans Parish District Attorney’s Office. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
(Download Indictment )
Ronan Counselor Pleads Guilty to Fraudulently Submitting Federal ClaimsRead the Press Release
MISSOULA - A Ronan counselor who defrauded Medicaid of over $40,000 has pleaded guilty to federal charges alleging that he submitted fraudulent claims for counseling public school children whom he had never met. Stanley Fleming, a 56-year-old Licensed Clinical Profession Counselor, pleaded guilty to health care fraud. He will be sentenced on February 12, 2015 and faces 10 years imprisonment, $250,000 in fines and 3 years supervised release.
Assistant U.S. Attorney Chad Spraker told the court that for the past 19 years, Fleming has provided services for the Ronan school district, including determining whether children are eligible for an Individual Education Program under the Individuals with Disabilities Education Act. In July 2009, authorities received a complaint that Fleming had billed for services provided to a child who had never seen Fleming. Medicaid investigators conducted a review of Fleming's billings activities. Fleming told investigators that his computer hard drive and personal digital assistant were compromised by a computer virus in March 2008 which, according to Fleming, caused him to lose all records documenting the services he had rendered before that date. Fleming later produced records for some of the claims, consisting of hand-written notes written on index-card-size sheets of paper. Some of the records lacked a patient name and a date of service. Investigators were able to contact and interview 35 patients, 20 of whom denied receiving any services from Fleming.
Besides billing for non-existent sessions, investigators also determined that Fleming had defrauded the program in other ways.
Billing Medicaid for counselling services where program guidelines did not recommend counseling. In many of these cases, the student or his or her guardian also denied the counseling session took place.
Federal claims were also submitted for counselling services during months when school was not in session and no contact would have been made.
Fleming also billed Medicaid for counseling services on the same day and for the same student that the Ronan school district had billed Medicaid thereby double-billing for the same service rendered.
The case was investigated by the Health Care Fraud Investigator for the U.S. Attorney's Office, the Federal Bureau of Investigation and the Montana Department of Health and Human Services, Surveillance and Utilization Review Unit.
PACER Case Reference: 14-37
Robber Exiled to 15 Years in Prison for Armed Robbery of Oxon Hill Cell Phone StoreRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Alexander Michael Bailey, age 25, of Oxon Hill, Maryland, late on October 30, 2014, to 15 years in prison, followed by five years of supervised release, for the armed robbery of an Oxon Hill cell phone store.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
Bailey admitted that on July 3, 2013, he entered a cell phone store located in Oxon Hill, brandished a firearm, and ordered everyone on to the floor. Bailey grabbed the store manager and another employee, poked the employee with the firearm, and demanded that the employee open the register and give Bailey the money. The victims feared for their lives and gave Bailey $302 in cash. Bailey fled the store. A short time later, officers from the Prince George’s County Police Department began a lookout for Bailey. One officer saw Bailey nearby and ordered him to stop. Bailey began to run, but after a short chase he was caught and the $302 was recovered from him. During a subsequent interview by police, Bailey provided a written statement admitting that he carried and brandished a firearm during the armed robbery of the cell phone store.
United States Attorney Rod J. Rosenstein commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Kelly O. Hayes, who prosecuted the case.
Repeat Sex Offender Sentenced for Distribution of Child PornographyRead the Press Release
Christopher Troy Sullivan, 41, of Joelton, Tennessee, was sentenced yesterday, by United States District Court Judge Aleta A. Trauger, to 15 years in prison for distribution of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee.
According to court documents, from approximately December 2010 through May 2012, Sullivan possessed and distributed child pornography. Sullivan admitted that he created a fake profile on the social media website “Facebook” to initiate and maintain an online relationship with a teenage girl over the course of several months. During the relationship, Sullivan obtained hundreds of nude and sexually explicit images of the girl. He then distributed those images to others and created additional false online profiles, pretending to be the girl in order to induce other teenage girls to also send him nude images.
Law enforcement officers from the Metropolitan Nashville Police Department seized several items of electronic equipment from Sullivan’s house. Analysis of the equipment revealed that Sullivan had obtained over 1,400 images of child pornography, which were located in hidden electronic file folders.
Upon his release, Sullivan will remain on supervised release for ten years and will be required to participate in sex offender treatment, among other conditions. Sullivan is a registered sex offender who was previously convicted in 2004 of aggravated sexual exploitation of a minor in Davidson County, Tennessee.
This case was investigated by the Metropolitan Nashville Police Department, the Cheatham County Sheriff’s Department, the Davidson County Probation and Parole Office, and the Minnesota Bureau of Criminal Apprehension. The case is being prosecuted by Assistant United States Attorneys Lynne T. Ingram and Louis A. Crisostomo.Remarks by Assistant Attorney General Vanita Gupta Announcing the Agreement to Reform the Albuquerque Police DepartmentRead the Press Release
Remarks as Prepared for Delivery
ALBUQUERQUE, NEW MEXICO
Good afternoon and thank you all for joining us. Thank you, Damon, for your leadership and for your incredible work in Albuquerque and across New Mexico. Throughout this investigation and in other matters, our attorneys and staff have worked side-by-side with the U.S. Attorney’s Office to enforce our national civil rights laws, and we are grateful for your partnership and steadfast support. Thank you, Mayor [Richard] Berry, for joining us to announce this historic agreement today and for your leadership throughout this process.
I also want to thank Chief [Gorden] Eden, Council President [Ken] Sanchez, Albuquerque Police Officers Association President [Stephanie] Lopez, family members, community leaders, invited guests, and the men and women of the Albuquerque Police Department who are joining us here today. I thank you all for coming today.
We are here today to announce a landmark settlement agreement between the Justice Department and the city of Albuquerque that resolves our findings on the use of excessive force and avoids a costly and protracted legal battle on the need for reform. This agreement comes from a mutual commitment by the city and the Department of Justice to ensure that the Albuquerque Police Department works with the community and polices in a manner that respects the rights of residents and that promotes mutual confidence between law enforcement and the community. Constitutional policing is key to building trust between police departments and the communities they serve, and trust is of course key to ensuring public and officer safety.Through this agreement, the city agrees to implement comprehensive police reforms in the way that it recruits, selects, guides, trains, supervises, investigates, and disciplines officers to ensure that officers are held accountable for their use of force and are fully supported in carrying out their duties in an effective, constitutional, and professional manner.
In April, the Department of Justice found that the police department engages in a pattern or practice of excessive force in violation of the Fourth Amendment of the U.S. Constitution.
We specifically found three patterns of excessive force:
- Albuquerque officers too frequently use deadly force against people who pose a minimal threat and in situations where the conduct of the officers heightens the danger and contributes to the need to use force;
- Albuquerque officers use less lethal force, including electronic controlled weapons, on people who are passively resisting, non-threatening, observably unable to comply with orders or pose only a minimal threat to the officers; and
- Encounters between Albuquerque officers and persons with mental illness and in crisis too frequently result in a use of force or a higher level of force than necessary.
The department also found systemic deficiencies of the Albuquerque Police Department which contribute to these three patterns, including: deficient policies, failed accountability systems, inadequate training, inadequate supervision, ineffective systems of investigation and adjudication, the absence of a culture of community policing and a lack of sufficient civilian oversight.
During our investigation and following our findings letter, the Department of Justice engaged in extensive outreach to the many communities that make up Albuquerque. We met with persons who experienced the violation of their rights, concerned community, faith and business leaders, and, importantly, hundreds of rank and file officers. These meetings provided us with essential information on how the problems we identified were perceived by different communities, what the people of Albuquerque value and want in their police department and ideas on the most effective strategies for reform. These many conversations and interviews guided and informed the agreement we reached and we are grateful for every meeting and conversation.
Through these consultations and extensive, candid and productive negotiations, we were able to achieve an agreement that meets the goals of effective and constitutional policing; enhanced officer and public safety, greater trust between officers and the communities they serve, and ongoing community participation and community policing.
Since April, we have been engaged in productive conversations with the City to develop a comprehensive and sustainable blueprint for reform. We are very grateful for the hard work of the chief and his staff, other city officials and the city council for their hard work. These negotiations were serious, candid and problem-solving. They set a strong foundation for us to continue to work together for reform.
This is truly a landmark agreement for the people of Albuquerque.
This agreement:
- Strengthens internal review into use of force and requires continuous performance improvement;
- Requires training that emphasizes de-escalation before force is used;
- Provides officers with the training and tools they need to provide effective crisis intervention and that allows police to work with community providers and stakeholders to address the underlying needs of individuals who are in crisis or with serious mental illness who are in need of supports and services;
- Provides guidelines for the effective use of on-body recording systems;
- Re-focuses the mission of specialized units to ensure that tactical units are trained to save lives in high-risk situations and that investigative units do not stray from their intended purpose and training e trained to save lives in city has agreed to dismantle the Repeat Offender Project, a unit intended to serve investigative functions that had been allowed to become an unofficial tactical unit with special weapons;
- Removes arbitrary deadlines in the filing of civilian complaints against officers;
- Supports the city’s efforts to ensure robust, independent, and effective civilian oversight; and
- Builds on the commitments of surrounding law enforcement agencies that have agreed to investigate officer-involved shootings and other serious uses of force through a multi-agency task force that provides greater reliability and objectivity to sensitive investigations.
The community will be able to measure the success of the agreement as it implemented. For each of the critical provisions, the agreement requires both the collection of information on compliance as well as on outcomes. Much of the data will be available to the public so that the critical civilian oversight functions can be performed. Transparency is an essential component of the agreement and a critical element of reform.
This agreement comes at a time when there is much national attention on the use of deadly force by police officers and whether police departments are meaningfully accountable to the communities that they serve. Albuquerque is not alone in struggling with these difficult issues. At the Department of Justice, we are working with more than two dozen cities and towns across the nation, and we know from that experience that the provisions of this agreement will ensure that the city has an effective, accountable police department that controls crime, ensures respect for the Constitution, and earns the trust of the public it is charged with protecting. Today, effective, accountable police department that controls crime, ensures respect for the Constitution, and earns the trust of the public it is charged with protecting. Today’s agreement can and should be a model – a bright spot – for communities looking for a path forward to make their law enforcement more accountable and police practices more just.
We will continue to actively engage all stakeholders in the implementation of the agreement to ensure that Albuquerque’s policing services meets this goal. A key part of our task is to ensure that the hard work of the many men and women of the police department who serve honorably is not overshadowed by the unlawful behavior of others or by institutional deficiencies that make an already difficult job that much harder. The Department of Justice will remain actively engaged for as long as necessary to ensure sustainable reform and to help restore the community’s trust in its police department. We look forward to working with Albuquerque’s elected officials, the chief and his command staff, rank and file officers and the many, many people who have contributed to this investigation and settlement.
Thank You.Ragley Man, Elton Man Sentenced for Roles in Armed Robbery at Coushatta Tribal ReservationRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced that a Ragley man and an Elton man were sentenced Thursday for participating in a home invasion on the Coushatta Tribal Reservation.
John Harold Materne, 22, of Ragley, La., was sentenced to 37 months in prison for one count of Indian Country crime acts robbery, and 84 months in prison for one count of carrying and brandishing a firearm during and in relation to a crime of violence. The prison terms will run consecutively. He was also ordered to serve eight years of supervised release. Trevor James Simon, 21, of Elton, La., was sentenced to 24 months in prison and three years of supervised release for one count of Indian Country crime acts robbery. United States District Judge Patricia Minaldi presided over the sentencing hearings.
According to evidence presented at the guilty pleas, the defendants along with Floyd H. Martine, Chanten Keith L. Gautreaux and another suspect traveled to the home of an acquaintance on December 3, 2013 to steal illegal drugs. Simon drove the vehicle, while Materne, who was carrying a shotgun, and Martine entered the home. As they were robbing the inhabitants, Gauthreaux entered the trailer and helped take pills and marijuana. The group was arrested while fleeing the scene. Materne and two of the victims are Native American Indians and members of the Coushatta Tribe.
Martine was sentenced on September 18, 2014 to 84 months in prison and eight years of supervised release. Gauthreaux was sentenced on September 11, 2014 to 24 months in prison and two years of supervised release.
Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has extended the territorial jurisdiction of the United States to major crimes committed against Native Americans that take place in Indian Country, which includes all property that the government holds in trust or use by officially recognized Native American tribes. The U.S. Attorney’s Office prosecutes all major crimes and misdemeanor cases arising in Indian Country that are within the jurisdiction of this office. The U.S. Attorney’s Office prosecutes cases arising in Indian Country involving felonies where either the defendant or the victim is an Indian or both the defendant and the victim are Indian.
The FBI, ATF, and the Coushatta Tribal Police Department conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Press Release by United States Attorney Relating to November 2014 ElectionsRead the Press Release
United States Attorney Christopher A. Crofts announced today that Assistant United States Attorney (AUSA) Stephanie I. Sprecher will lead the efforts of her office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Sprecher has been appointed to serve as the District Election Officer (DEO) for the District of Wyoming, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Crofts said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Crofts stated that AUSA/DEO Sprecher will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: (307) 261-5434.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (307) 632-6224.
Complaints about ballot access problems or discrimination can be made directly to the Civil Rights Division’s Voting Section in Washington at 1-800-253-3931 or (202) 307-2767.
United States Attorney Crofts said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my office, the FBI, or the Civil Rights Division.”
Owner and Patient Recruiter Sentenced to Prison for Their Roles in $258.5 Million Medicare Fraud SchemeRead the Press Release
An owner and operator of two community mental health centers in Baton Rouge, Louisiana, and a patient recruiter for a community mental health center in Houston, Texas, were sentenced to prison today for their involvement in a $258.5 million Medicare fraud scheme involving partial hospitalization psychiatric (PHP) services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana, Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Office, Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division, and Louisiana State Attorney General James D. “Buddy” Caldwell made the announcement.
Roslyn F. Dogan, 53, of Baton Rouge, Louisiana, and James R. Hunter, 48, of Houston, Texas, were sentenced by U.S. District Court Chief Judge Brian A. Jackson in the Middle District of Louisiana to 90 months in prison and 60 months in prison, respectively. In addition to the prison sentences, Dogan was ordered to pay $43.5 million and Hunter was ordered to pay $3.2 million in restitution.
After six days of trial, on May 21, 2014, a federal jury found Dogan guilty of conspiracy to commit health care fraud, and two counts of health care fraud, and also found Hunter guilty of conspiracy to commit health care fraud and conspiracy to pay and receive kickbacks.
According to evidence presented at trial, Dogan was a co-owner of Serenity Center of Baton Rouge, and a manager and marketer for both Serenity Center and Shifa Community Mental Health Center of Baton Rouge. Dogan recruited Medicare beneficiaries who were living in nursing homes and assisted living facilities to attend the PHP programs at Shifa and Serenity, knowing the individuals did not need the psychotherapy programs. She then devised methods to keep the patients at the facilities for as long as possible without invoking scrutiny from Medicare, including by having patients involuntarily committed to local inpatient psychiatric hospitals and then discharged and re-admitted to one of the Shifa facilities. Additionally, Dogan directed administrators and therapists at the Shifa Baton Rouge facilities to falsify treatment records indicating that patients had received psychotherapy treatment when, in fact, the patients had not received such treatment. She further concealed the fraud by directing that patient billing statements be intercepted from the mail to prevent the patients from seeing the services that had been billed in their names, and by stealing incriminating documents seized pursuant to a search warrant from federal custody.
Evidence at trial demonstrated that Hunter agreed to recruit Medicare beneficiaries to attend the PHP program at Shifa Community Mental Health Center of Texas in Houston in exchange for $1,500 per week in cash. Hunter recruited Medicare recipients from group homes who were not appropriate for the PHP services, but who agreed to attend the program in exchange for $75 cash per week. To ensure their admittance to the program, Hunter instructed each beneficiary as what to say to physicians regarding their supposed psychiatric symptoms. As a result of the kickback scheme with Hunter, the Houston facility billed Medicare approximately $16.5 million.
According to court documents, the investigation into the three community mental health centers has resulted in the conviction of seventeen individuals, including therapists, marketers, administrators, owners and a medical director. The companies collectively submitted more than $258 million in claims to Medicare for PHP services over a period of seven years. Medicare paid approximately $43.5 million on those claims.
The case is being investigated by HHS-OIG, the FBI, and the Medicaid Fraud Control Unit of the Louisiana Attorney General’s Office, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case is being prosecuted by Trial Attorneys Abigail Taylor and Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shubhra Shivpuri of the Middle District of Louisiana.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Ocoee Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Shawn Williams (42, Ocoee) pleaded guilty today to distribution of child pornography. He faces a mandatory minimum of 5 years, up to a maximum of 20 years, in federal prison. Williams will also be required to serve a mandatory minimum of 5 years, up to a life term, of supervision, and to register as a sex offender. A sentencing date has not yet been set.
According to court documents, Williams responded to a sexually explicit Craigslist ad and began conversing online with an Orlando man, William Edward Osman. The two men discussed their mutual interest in child pornography and attempted to make arrangements to meet in person for a sexual rendezvous. On May 9, 2013, Williams used his cell phone to send Osman images of child pornography and they again discussed meeting to share their collections of child pornography. During their conversations, Osman told Williams that he had a one-year-old child. Williams then asked the man to send him “baby pics” and “adult with baby pics.”
On October 15, 2013, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) arrested Osman on charges related to the sexual exploitation of children. Agents seized his phone and identified Williams as one of the individuals with whom he had been electronically trading child pornography. Agents arrested Williams at his home on March 13, 2014, at which time he admitted to trading child pornography with Osman.
On September 3, 2014, Osman was sentenced to 60 years in federal prison for the production, distribution, and possession of child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
New York Man Imprisoned 75 Months for Heroin Trafficking That Led to Overdose Death of Rutland ManRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that yesterday Joshua Rose, 21, of New York, was sentenced by Chief United States District Judge Christina Reiss to seventy-five months imprisonment on his guilty plea to a charge of conspiracy to distribute 100 grams or more of heroin. At the sentencing hearing the government requested a sentence of 120 months. The defense sought sixty months. Chief Judge Reiss also ordered that Rose serve five years supervised release after his incarceration ends.
According to court documents, Rose trafficked 400 to 700 grams of heroin from New York City to Rutland during 2012. On September 4, 2012, Rose was arrested by the New York Police Department with 110 grams of heroin bound for Rutland. For the next six months, Devon Cruz, 29, and Charles Hercules, 23, both of New York, who had been assisting Rose, continued the heroin trafficking operation. The three New York men sold the heroin in Rutland primarily through several heroin-addicted local residents, including Alan H. Willis, II, 42, of Tinmouth, and Evan Murphy, 23, and Debra Bristol, 49, both of Rutland. On August 29, 2012, approximately one week before Rose’s arrest, David C. Blanchard III, of Rutland, died from an overdose of the heroin distributed by Rose and his associates.
During a joint investigation by the Vermont Drug Task Force (VDTF), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), and the Rutland Police Department (RPD), investigators used confidential informants to make controlled buys of the heroin from Willis and Murphy in the Rutland area. On July 24, 2013, a grand jury returned an indictment charging Rose, Cruz, Hercules, Willis, Murphy, and Jean Marie Phillips, 47, of Rutland, with conspiracy to distribute 100 grams or more of heroin. On October 2, 2013, Bristol was similarly charged in a criminal information. All of the defendants entered guilty pleas to the conspiracy charge, except Phillips, who pled guilty to aiding and abetting Rose=s possession with intent to distribute heroin. On April 28, 2014, Willis was sentenced to 37 months imprisonment. On May 9, 2014, Phillips was sentenced to 13 months imprisonment. On August 26, 2014, Murphy was sentenced to 60 months imprisonment. On August 27, 2014, Hercules was sentenced to 39 months imprisonment. On October 1, 2014, Cruz was sentenced to 69 months imprisonment. Bristol is scheduled for sentencing on November 3.
United States Attorney Tristram J. Coffin commended the joint investigation by the VDTF, DEA, FBI and RPD, and thanked the Vermont Attorney General=s Office for its cooperation. Coffin added, “The overdose death of David Blanchard is a tragedy. The distribution of heroin devastates families and communities, and too often has lethal consequences, as it did in this case. This office is committed to working with federal, state, and local law enforcement to prosecute the heroin dealers preying on Vermonters and those assisting the dealers.” Burlington attorney Karen Shingler represented Rose. The case was prosecuted by Assistant U.S. Attorney Craig S. Nolan.
New Haven Man Pleads Guilty to Marriage Fraud SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SYED NAQSHBAND, 33, of New Haven, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of conspiracy to commit marriage fraud.
According to court documents and statements made in court, between July and August 2013, NAQSHBAND persuaded a female friend, who is a U.S. citizen, to travel with him to Pakistan and marry his nephew so that the nephew, a citizen of Pakistan, could enter the U.S. NAQSHBAND offered to help pay the woman's travel expenses and assured her she would not have to live with his nephew once they returned to the U.S.
The scheme was disrupted just before the planned travel, when the woman, accompanied by NAQSHBAND, applied for a U.S. Passport and the U.S. Passport Office alerted the FBI of certain suspicious observations.
NAQSHBAND faces a maximum term of imprisonment of five years and a fine of up to $250,000 when he is sentenced by U.S. District Judge Vanessa L. Bryant. A sentencing date is not yet scheduled.
This matter is being investigated by the Federal Bureau of Investigation Joint Terrorism Task Force, the Bureau of Diplomatic Security, the U.S. Passport Office, Homeland Security Investigations and the U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Admits Role in Seymour Bank RobberyRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that DANIEL HAMLETT, JR., 28, of New Haven, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to participating in the robbery of a Seymour bank last year.
HAMLETT JR. pleaded guilty to one count of aiding and abetting bank robbery, which carries a maximum term of imprisonment of 20 years. Judge Thompson scheduled sentencing for January 23, 2015.
On April 9, 2013, an individual wearing a mask and brandishing a black handgun entered the Webster Bank on New Haven Road in Seymour, ordered everyone to get on the floor, jumped over the teller counter and forcibly took $5,594 in cash from two teller drawers. He then jumped back over the teller counter and walked out of the front door of the bank. In pleading guilty, HAMLETT JR. admitted that he entered the bank shortly before the robbery and thereafter was in telephone contact with his father, Daniel W. Hamlett, Sr. After the robbery, HAMLETT JR. picked up Hamlett Sr. in his father’s red Toyota Prius and eluded law enforcement.
On March 13, 2014, a grand jury returned an indictment charging HAMLETT JR. and Hamlett Sr. in connection with this bank robbery. HAMLETT JR. was arrested on March 14, 2014, and his trial was scheduled to begin on November 3, 2014.
Daniel W. Hamlett, Sr. is being sought by law enforcement, and the FBI is offering a reward of up to $5,000 for information leading to his arrest. Citizens with information concerning this case can contact the New Haven Division of the FBI at (203) 777-6311.
As to Hamlett Sr., U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI and the Seymour Police Department. The case is being prosecuted by Assistant U.S. Attorney’s Douglas P. Morabito and Sarala V. Nagala.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Miami-Dade Resident Convicted in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Wisly Toussaint, of Miami, Florida, was convicted by a federal jury of one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b), two counts of access device fraud, in violation of Title 18, United States Code, Section 1029(a), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for January 8, 2015 before U.S. District Judge Joan A. Lenard. Toussaint faces a maximum term of 25 years in prison for the conspiracy and access device charges, and at least one mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charges.
According to evidence presented during the five-day trial, Toussaint possessed and trafficked in personal identifying information (PII), that is names, dates of birth and social security numbers, stolen from a mental health facility in Philadelphia, Pennsylvania. In October of 2013, Toussaint was approached by two individuals cooperating with law enforcement and agreed to sell the cooperators the stolen PII, which Toussaint stated he obtained from a partner in Sarasota, Florida. Toussaint later sold the cooperators hundreds of identities stolen from the mental health facility in two separately recorded meetings.
Toussaint was also recorded discussing his plans to make $50,000 during the first week of the 2014 tax filing year and the ability to also file for unemployment compensation with the stolen identities.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Frank R. Maderal.
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.
Memphis Resident Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
A Memphis man pleaded guilty yesterday to the sex trafficking of a 16 year-old girl, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Edward L. Stanton III of the Western District of Tennessee and Special Agent in Charge Todd McCall of the FBI’s Memphis Division.
During his plea hearing, Laron Matlock, 33, of Memphis, admitted that he purchased a bus ticket for a 16-year-old girl to travel from Chicago to Memphis on July 28, 2012, for the purpose of engaging in prostitution. Matlock further admitted to transporting the victim from Memphis to Nashville for the purpose of prostitution. Matlock was arrested on Aug. 1, 2012, after he returned to Memphis with the victim and attempted to take her to a customer’s house for the purpose of prostitution.
Sentencing is scheduled for Jan. 30, 2015, before U.S. District Judge Jon Phipps McCalla of the Western District of Tennessee.
This case was investigated by the Civil Rights Human Trafficking Taskforce, the FBI’s Memphis Division and the Shelby County Sheriff’s Department. This case is being prosecuted by Trial Attorney Mi Yung Park of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Brian K. Coleman of the Western District of Tennessee.
Memphis Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Memphis, TN – A Memphis man pleaded guilty yesterday to the sex trafficking of a 16-year-old girl, announced U.S. Attorney Edward L. Stanton III of the Western District of Tennessee, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Todd McCall of the FBI’s Memphis Division.
“This office will utilize every available resource to ensure our children are protected from those who seek to exploit them through the unspeakable act of sex trafficking,” said U.S. Attorney Stanton. “Laron Matlock’s guilty plea should send a clear message that we have zero tolerance for any form of sex trafficking, and those who engage in it will be aggressively prosecuted and ultimately brought to justice.”
During his plea hearing, Laron Matlock, 33, of Memphis, admitted that he purchased a bus ticket for a 16-year-old girl to travel from Chicago to Memphis on July 28, 2012, for the purpose of engaging in prostitution. Matlock further admitted to transporting the victim from Memphis to Nashville for the purpose of prostitution. Matlock was arrested on Aug. 1, 2012, after he returned to Memphis with the victim and attempted to take her to a customer’s house for the purpose of prostitution.
Sentencing is scheduled for Jan. 30, 2015, before Senior U.S. District Judge Jon Phipps McCalla of the Western District of Tennessee.
This case was investigated by the Civil Rights Human Trafficking Taskforce, the FBI’s Memphis Division and the Shelby County Sheriff’s Department. This case is being prosecuted by Assistant U.S. Attorney Brian K. Coleman of the Western District of Tennessee and Trial Attorney Mi Yung Park of the Criminal Division’s Child Exploitation and Obscenity Section.
Man Sentenced for Assaulting & Resisting A Federal OfficerRead the Press Release
U.S. Attorney Christopher A. Crofts announced that on October 30, 2014, thirty-six year old Delray Quiver of the Wind River Indian Reservation was sentenced by United States District Court Judge Scott Skavdahl, to 70 months imprisonment, three years of supervised release, and a $100.00 special assessment. Mr. Quiver previously pled guilty to this offense, which occurred in January 2013, and stemmed from Mr. Quiver’s actions when a Bureau of Indian Affairs Police Officer attempted to arrest him. This case was investigated by the Federal Bureau of Investigation.
Man Faces up to 10 Years in Federal Prison on Obscenity ConvictionRead the Press Release
LUBBOCK, Texas — A Johnson County man appeared in federal court in Lubbock, Texas, this afternoon and pleaded guilty to a federal child obscenity offense, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Christopher Wayne Howard, 26, of Joshua, Texas, pleaded guilty to one count of transferring obscene material to a minor. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine, and three years of supervised release. U.S. District Judge Sam R. Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Howard remains on bond.
According to plea documents filed in the case, in March 2014, Howard engaged in a series of online and telephone texting communications with “Jane Doe,” a person he knew to be a 13-year-old-female. During the communications, Howard often turned the subject to sexually explicit matters. On March 13, 2014, Howard chatted with “Jane Doe” and used an online application to send her an obscene, sexually explicit photograph of an adult male.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the San Angelo Police Department’s Special Operations Division investigated. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Lubbock and Lamb County, Texas, Men Sentenced on Federal Child Pornography ConvictionsRead the Press Release
LUBBOCK, Texas — Three defendants, convicted on child pornography offenses in unrelated cases, were sentenced this morning by U.S. District Judge Sam R. Cummings, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Rocky Joe Williams, 37, of Littlefield, Texas, was sentenced to 10 years in federal prison following his guilty plea in July 2014 to one count of transportation of child pornography. Williams admitted that he used his cell phone and the Google Picasa web photo-sharing site on the Internet to transport numerous images of child pornography. Judge Cummings remanded Williams into custody.
Parker James Chapman, 23, of Lubbock, was sentenced to 30 months in federal prison following his guilty plea in July 2014 to one count of attempted possession of child pornography and aiding and abetting. Chapman admitted that he used his cell phone to communicate with a person he believed to be a minor, under age 18, after responding to an online personal ad. That person, however, was an undercover police officer posing as a 15-year-old female. Chapman requested a photograph of the minor, but after he received a non-sexual image of a minor, Chapman requested something “more interesting.” Chapman admitted that in making this request, it was his intent to receive an image of child pornography. Chapman must surrender to the Bureau of Prisons on December 3, 2014.
Christopher Anthony Lovato, 30, of Lubbock, was sentenced to 10 years in federal prison. He pleaded guilty in July 2014 to one count of possession of child pornography and aiding and abetting. Lovato admitted that he used his cell phone to possess numerous images of child pornography that had been received from the Internet. Lovato was remanded into custody.
The cases were brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Lubbock Police Department Internet Crimes Against Children (ICAC) Task Force and the FBI investigated the cases, and the Littlefield Police Department and the Texas Department of Public Safety also assisted in the investigation of the Williams case. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Livingston Convenience Store Owner Indicted for USDA Benefits FraudRead the Press Release
FRESNO, Calif. — Bharpur Singh, 39, of Ceres, was indicted Thursday by a federal grand jury for defrauding the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, United States Attorney Benjamin B. Wagner announced.
According to the indictment, Singh owns and operates Dollar Mart, a convenience store in Livingston that was authorized to accept SNAP benefits from customers to pay for eligible food items through the electronic benefits transfer (EBT) card program. EBT cards, similar to debit cards, are swiped at the point of sale and the cardholder enters a Personal Identification Number. The amount of the purchase is immediately deducted from the customer’s SNAP account and the retailer’s bank account is credited dollar for dollar. Retailers are not permitted to trade cash for SNAP benefits or accept SNAP benefits as payment for ineligible items.
According to the indictment, from October 2008 until May 2014, Singh traded the benefits for cash rather than for eligible food products as required under the program. Singh would swipe a SNAP benefit recipient’s EBT card for a certain amount, give the benefit recipient cash for approximately half the amount of the “transaction,” and keep approximately one-half for himself. On numerous occasions, Singh accepted SNAP benefits as payment for ineligible items, including beer, cigarettes, toilet paper, toys and diapers.
This case is the product of an investigation by the U.S. Department of Agriculture’s Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Christopher Baker is prosecuting the case.
If convicted of the charges, Singh faces a maximum statutory penalty of twenty years in prison and a $250,000 fine for each wire fraud count, and five years in prison and a $10,000 fine for each count of unauthorized use of USDA benefits. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Latest Participant in OID-1099 Tax Fraud Scheme Sentenced to 18 Months in PrisonRead the Press Release
The latest participant in a well-known fraudulent tax refund scheme will spend 18 months in prison for four counts of filing fraudulent tax returns, announced Acting U.S. Attorney Annette L. Hayes. CHARLES SCOTT BROWN, 54, of Camas, Washington, was sentenced last week and ordered to pay more than $1.2 million in restitution to the Internal Revenue Service. At the sentencing hearing U.S. District Judge Robert J. Bryan told him, “This is a huge tax theft, not a nickel and dime deal. This is a serious, serious offense. I don’t know how someone can do this and not expect to get jail time.”
“This defendant is the latest in a line of U.S. and Canadian scammers illegally claiming huge tax refunds at the expense of law abiding Americans,” said Acting U.S. Attorney Annette L. Hayes. “Now he is paying with his freedom, and with a share of his future earnings for the money he stole.”
Between December 2007, and February 2008, BROWN submitted four fraudulent tax returns, claiming he was owed more than $1.2 million in tax refunds. When the refund checks came in, BROWN used the money for travel to Mexico and Hawaii, shopping sprees at Nordstrom and Zappos.com, and luxury hotel stays with expensive dinners out.
“At IRS Criminal Investigation, our top priority is protecting the integrity of our nation’s tax system,” said Special Agent in Charge Teri Alexander. “Together with the Department of Justice, we have a long history of identifying and prosecuting those who promote and use abusive tax schemes. The 1099 OID scheme that was used by this defendant and others sentenced in this district is particularly troublesome. These individuals not only evaded their legal tax obligation, they took their fraud a step further and attempted to blatantly steal millions from the U.S. Treasury. Our Special Agents are dedicated to ensuring that our tax laws are administered fairly under the law. When unscrupulous individuals such as this defendant seek to take advantage of the taxpaying public, we will be there to bring them to justice.”
Examples of other defendants prosecuted in the Western District of Washington for 1099 OID fraud include:
Franzie F. Colaco,
Nine years in prison
$6 million tax loss
Ronald L. Brekke,
12 years in prison
$6 million tax loss
33 months in prison
$360,000 tax loss
John Chung
One year in prison
$370,000 tax loss
Wonita Chung
18 months in prison
$612,237 tax loss
Raymond Jarlik-Bell
Eight years in prison
$705,276 tax loss
Peter Gibney
One year in prison
$465,136 tax loss
Debra Aaron
Five years in prison
$723,275 tax loss
The IRS has more information on 1099 OID fraud here: http://www.irs.gov/uac/Newsroom/IRS-Releases-the-“Dirty-Dozen”-Tax-Scams-for-2014;-Identity-Theft,-Phone-Scams-Lead-List.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). BROWN was prosecuted by Assistant United States Attorney Marci Ellsworth.KC Business Owner among Three Sentenced for $1 Million Scheme to Defraud the ArmyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three co-defendants were sentenced in federal court today for their roles in a $1 million wire fraud scheme to sell counterfeit and modified computer equipment to the U.S. Army.
Virgie Dillard, 71, of Lee’s Summit, Mo., the owner of Missouri Office Systems and Supplies, Inc., and an employee, Roland Evans, 45, of Lee’s Summit, and Mark Morgan, 47, of Newport Coast, Calif., were sentenced in separate appearances before U.S. District Judge Gary A. Fenner. Evans was sentenced to 37 in federal prison without parole. Morgan was sentenced to 30 months in federal prison without parole. Dillard was sentenced to five years of probation. The court also ordered Dillard, Evans and Morgan to pay $1,073,022 in restitution to the U.S. Army, for which they are jointly and severally liable.
Dillard, Evans and Morgan have each pleaded guilty to their roles in the conspiracy to commit wire fraud.
Missouri Office Systems and Supplies, Inc. (MOSS), in Kansas City, Mo., sold all types of office machines, including computers, software and other office furniture and supplies. In August 2010, MOSS received a $2.1 million contract from the Army Recreation Machine Program (ARMP) for more than 2,500 Cisco parts – including network hardware, such as transceivers and switches, which allow computers to communicate with other computers. The network hardware was shipped to numerous locations, including ARMP headquarters at Fort Carson in Colorado Springs, Colo., as well as approximately 19 other ARMP locations in the United States and three international ARMP locations.
After receiving that contract, MOSS provided more than $1 million worth of counterfeit products and Cisco products that were used and modified post-manufacture and were obtained outside Cisco’s authorized distribution channels.
Evans handled all of the contracts MOSS had for Cisco products, including all of the contracts MOSS had with ARMP for Cisco products. MOSS provided 2,013 computer products that were improperly sourced, for which ARMP paid $1,073,022. Due to the products being improperly sourced, they were not eligible for Cisco warranties nor were the SMARTnet contracts legitimate. The products were unusable for ARMP and cannot be used in any portion of its computer network.
Dillard and Evans admitted they solicited equipment bids from Morgan’s firm, PRM Technology Equipment, LLC, knowing that it was outside of Cisco’s authorized distribution channels. Between August and December 2010, Dillard and Evans caused 46 purchase orders for products under ARMP contract to be sent to Morgan and PRM. Morgan obtained counterfeit Cisco products and Cisco products which were used and modified post-manufacture outside of Cisco authorized distribution channels. Morgan shipped these products to ARMP, which paid MOSS $1,073,022. Dillard signed the 14 checks that were paid to PRM for those products from the fraudulent proceeds, totaling $856,651.
Between September 2010 and August 2011, Dillard, Evans and Morgan continued to insist to ARMP and to Cisco – in emails, phone conferences and meetings – that MOSS had supplied new, genuine Cisco goods and services which were sourced from Cisco authorized distribution channels and protected by full Cisco warranties as required by the contract. They altered purchase orders and invoices, which they sent to Cisco to make it appear that the products were sourced properly.
This case was prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI, the Department of Defense – Office of Inspector General and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).Justice Department Reaches Agreement with the City of Albuquerque to Implement Sweeping Reforms on Use of Force by the Albuquerque Police DepartmentRead the Press Release
ALBUQUERQUE – The Justice Department today announced it has reached a comprehensive settlement agreement with the city of Albuquerque that will bring wide-ranging reforms to the Albuquerque Police Department (APD) and its use of force against civilians. The Justice Department and the city have agreed to enter into a court-enforceable settlement agreement that will overhaul the way in which APD handles use of force by its officers following a year-long investigation into the department’s practices and letter of findings released by the Justice Department in April, 2014. Once the Albuquerque City Council considers the settlement agreement in a special session scheduled for the week of November 3, the Justice Department and the city will file the settlement agreement with the United States District Court for approval and entry as an order.
“The overwhelming majority of our nation’s law enforcement officials perform their duties with exceptional courage, integrity, and professionalism – risking their lives every day to keep their communities safe. But whenever a pattern of troubling conduct is uncovered, or that high standard is not met, the Department of Justice must and will take action,” said Attorney General Eric H. Holder Jr. “The far-reaching agreement we have secured in this case will transform the culture and practices of the Albuquerque Police Department. And I am confident that, with the cooperation of city leaders and brave law enforcement officials, we will take significant steps to restore trust with local citizens and build for Albuquerque’s residents the stronger, safer, and more secure communities that all Americans deserve.”
In addition to use of force practices, the Justice Department’s investigation found that officers routinely use deadly force and less lethal force in an unreasonable manner and that systemic deficiencies in policies, training, supervision, and oversight contributed to the pattern or practice. Following the release of the investigative findings, the Justice Department engaged in extensive community outreach to solicit feedback and recommendations on reform from a wide variety of stakeholders, including police officers, community leaders, mental health advocates, family members, and other Albuquerque residents. The feedback played a critical role in tailoring the settlement agreement to the unique needs of the Albuquerque community and APD.
“Today’s landmark settlement agreement will begin the process of restoring trust and cooperation between the Albuquerque community and law enforcement. Constitutional policing is key to building trust between police departments and the communities they serve, and trust is of course key to ensuring public and officer safety,” said Vanita Gupta, Acting Assistant Attorney General for the Civil Rights Division. “The settlement agreement provides a blue print for sustainable reform that will foster continued collaboration and participation from the community. We thank Mayor Berry, Chief Eden, and all of the individuals who came forward to share their experiences concerning APD to make this historic settlement agreement possible.”
“We are extremely proud of our community and police department for coming together in a time of serious challenges to the City to offer their advice and recommendations on a path forward,” said Damon P. Martinez, United States Attorney for the District of New Mexico. “Reform will not take place overnight and it will take time to heal our community, but we are well on our way. Through the settlement agreement reached today, the City agrees to implement fundamental reforms in a transparent manner that will ensure that force is used in accordance with constitutional rights and that promotes greater trust among the hard working men and women of the Albuquerque Police Department and the residents they are sworn to protect.”Under the settlement agreement, the city and APD will implement comprehensive reforms in nine substantive areas. An independent monitoring team will be selected jointly and will oversee the reforms, which are expected to be implemented within four years. The areas covered by the settlement agreement are:
- Use of force: including requiring supervisors to report to the scene of uses of force; providing medical care to subjects of force immediately after an incident; improving the quality of force investigations; developing a force review board to detect and correct patterns and trends, and utilizing surrounding law enforcement agencies as part of a multi-agency task force to investigate officer-involves shootings to provide greater objectivity and accountability;
- Specialized units: including measures that require clearly defined missions and duties for specialized tactical and investigative units; ensuring that officers are sufficiently trained to save lives in high-risk situations; and dismantling APD’s repeat offender project to restore its core mission as an investigative, rather than tactical, unit;
- Crisis intervention: including establishing a mental health response advisory committee; providing behavioral health training to all officers, police dispatchers, and 9-1-1 operators; and maintaining groups of specially-trained first responders, detectives, and mental health professionals that provide crisis intervention and ongoing support to individuals with serious mental illness or who are chronically homeless;
- Policies and training: including developing clear and comprehensive policies on use of force, preventing retaliation, supporting officers who report misconduct, and improving the field training program to ensure that officers develop the necessary technical and practical skills required to use force in a lawful and effective manner;
- Internal and civilian complaint investigations: including measures to eliminate arbitrary deadlines for the submission of civilian complaints; standards for conducting objective, thorough, and timely investigations; steps to ensure that the disciplinary system is fair and consistent; and protocols to protect officers’ rights against self-incrimination;
- Staffing and supervision: including completing a staffing and resource study to determine the appropriate allocation of resources; holding supervisors accountable for close and effective supervision; and providing guidance on the effective use of on-body recording systems to promote accountability and strengthen public trust;
- Recruitment and promotions: including developing a strategic recruitment plan that includes clear goals, objectives, and action steps for attracting qualified applicants from a broad cross section of the community and ensuring that fair and consistent promotion practices are implemented;
- Officer assistance and support: including measures to ensure that APD personnel have ready access to mental health services and that supervisors are trained in making referrals in a manner that minimizes stigma; and
- Community engagement and oversight: including measures to strengthen the City’s civilian oversight process; public information programs that keep members of the public informed of APD’s progress toward reform; requirements on fostering community policing at all levels of APD; and establishing community policing councils throughout the City to ensure that meaningful feedback is obtained from the community.
The independent monitoring team will oversee the implementation of reforms, provide technical assistance, and report on the city’s compliance through periodic and public reports. The monitoring team will have access to all documents, personnel, facilities and information related to the settlement agreement and will engage with officers and community members on an ongoing basis. The monitoring team will also be responsible for conducting outcome assessments to determine whether the goals of the settlement agreement are being met through compliance indicators and objective measures. The settlement agreement requires two years of sustained compliance with the agreement before the agreement may be terminated.
For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt. For more information about the United States Attorney’s Office for the District of New Mexico, please visit http://www.justice.gov/usao/nm.Justice Department Reaches Agreement with the City of Albuquerque to Implement Sweeping Reforms on Use of Force by the Albuquerque Police DepartmentRead the Press Release
The Justice Department today announced it has reached a comprehensive settlement agreement with the city of Albuquerque that will bring wide-ranging reforms to the Albuquerque Police Department (APD) and its use of force against civilians. The Justice Department and the city have agreed to enter into a court-enforceable settlement agreement that will overhaul the way in which APD handles use of force by its officers following a year-long investigation into the department’s practices and letter of findings released by the Justice Department in April 2014. Once the Albuquerque City Council considers the settlement agreement in a special session scheduled for the week of Nov. 3, the Justice Department and the city will file the settlement agreement with the United States District Court for approval and entry as an order.
"The overwhelming majority of our nation’s law enforcement officials perform their duties with exceptional courage, integrity, and professionalism—risking their lives every day to keep their communities safe,” said Attorney General Eric H. Holder Jr. “But whenever a pattern of troubling conduct is uncovered, or that high standard is not met, the Department of Justice must and will take action. The far-reaching agreement we have secured in this case will transform the culture and practices of the Albuquerque Police Department. And I am confident that, with the cooperation of city leaders and brave law enforcement officials, we will take significant steps to restore trust with local citizens and build for Albuquerque’s residents the stronger, safer, and more secure communities that all Americans deserve.“
In addition to use of force practices, The Justice Department’s investigation found that officers routinely use deadly force and less lethal force in an unreasonable manner and that systemic deficiencies in policies, training, supervision, and oversight contributed to the pattern or practice. Following the release of the investigative findings, the Justice Department engaged in extensive community outreach to solicit feedback and recommendations on reform from a wide variety of stakeholders, including police officers, community leaders, mental health advocates, family members, and other Albuquerque residents. The feedback played a critical role in tailoring the settlement agreement to the unique needs of the Albuquerque community and APD.
“Today’s landmark settlement agreement will begin the process of restoring trust and cooperation between the Albuquerque community and law enforcement,” said Vanita Gupta, Acting Assistant Attorney General for the Civil Rights Division. “Constitutional policing is key to building trust between police departments and the communities they serve, and trust is of course key to ensuring public and officer safety. The settlement agreement provides a blue print for sustainable reform that will foster continued collaboration and participation from the community. We thank Mayor Berry, Chief Eden, and all of the individuals who came forward to share their experiences concerning APD to make this historic settlement agreement possible.”
“We are extremely proud of our community and police department for coming together in a time of serious challenges to the city to offer their advice and recommendations on a path forward,” said Damon P. Martinez, United States Attorney for the District of New Mexico. “Reform will not take place overnight and it will take time to heal our community, but we are well on our way. Through the settlement agreement reached today, the city agrees to implement fundamental reforms in a transparent manner that will ensure that force is used in accordance with constitutional rights and that promotes greater trust among the hard working men and women of the Albuquerque Police Department and the residents they are sworn to protect.”
Under the settlement agreement, the city and APD will implement comprehensive reforms in nine substantive areas. An independent monitoring team will be selected jointly and will oversee the reforms, which are expected to be implemented within four years. The areas covered by the settlement agreement are:
-
Use of force: including requiring supervisors to report to the scene of uses of force; providing medical care to subjects of force immediately after an incident; improving the quality of force investigations; developing a force review board to detect and correct patterns and trends, and utilizing surrounding law enforcement agencies as part of a multi-agency task force to investigate officer-involves shootings to provide greater objectivity and accountability;
-
Specialized units: including measures that require clearly defined missions and duties for specialized tactical and investigative units; ensuring that officers are sufficiently trained to save lives in high-risk situations; and dismantling APD’s repeat offender project to restore its core mission as an investigative, rather than tactical, unit;
-
Crisis intervention: including establishing a mental health response advisory committee; providing behavioral health training to all officers, police dispatchers, and 9-1-1 operators; and maintaining groups of specially-trained first responders, detectives, and mental health professionals that provide crisis intervention and ongoing support to individuals with serious mental illness or who are chronically homeless;
-
Policies and training: including developing clear and comprehensive policies on use of force, preventing retaliation, supporting officers who report misconduct, and improving the field training program to ensure that officers develop the necessary technical and practical skills required to use force in a lawful and effective manner;
-
Internal and civilian complaint investigations: including measures to eliminate arbitrary deadlines for the submission of civilian complaints; standards for conducting objective, thorough, and timely investigations; steps to ensure that the disciplinary system is fair and consistent; and protocols to protect officers’ rights against self-incrimination;
-
Staffing and supervision: including completing a staffing and resource study to determine the appropriate allocation of resources; holding supervisors accountable for close and effective supervision; and providing guidance on the effective use of on-body recording systems to promote accountability and strengthen public trust;
-
Recruitment and promotions: including developing a strategic recruitment plan that includes clear goals, objectives, and action steps for attracting qualified applicants from a broad cross section of the community and ensuring that fair and consistent promotion practices are implemented;
-
Officer assistance and support: including measures to ensure that APD personnel have ready access to mental health services and that supervisors are trained in making referrals in a manner that minimizes stigma; and
-
Community engagement and oversight: including measures to strengthen the city’s civilian oversight process; public information programs that keep members of the public informed of APD’s progress toward reform; requirements on fostering community policing at all levels of APD; and establishing community policing councils throughout the city to ensure that meaningful feedback is obtained from the community.
The independent monitoring team will oversee the implementation of reforms, provide technical assistance, and report on the city’s compliance through periodic and public reports. The monitoring team will have access to all documents, personnel, facilities and information related to the settlement agreement and will engage with officers and community members on an ongoing basis. The monitoring team will also be responsible for conducting outcome assessments to determine whether the goals of the settlement agreement are being met through compliance indicators and objective measures. The settlement agreement requires two years of sustained compliance with the agreement before the agreement may be terminated.
For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt. For more information about the United States Attorney’s Office for the District of New Mexico, please visit http://www.justice.gov/usao/nm.
APD Commitment Letter
DOJ-ABQ Agreement Fact Sheet
DOJ-ABQ Settlement Agreement
SPL Police Accomplishments
-
Justice Department Files Suit Against Pima Community College for Violating the Employment Rights of an Arizona Army National GuardsmanRead the Press Release
The Department of Justice announced today the filing of a complaint in U.S. District Court for the District of Arizona against Pima Community College (PCC) in Tucson, Arizona, for violating the employment rights of Army National Guardsman Timothy Stoner under the Uniformed Services Employment and Reemployment Rights Act (USERRA).
The department’s complaint alleges that Pima Community College violated USERRA by failing to promote Stoner to the position of police corporal in 2010 and again in 2013. USERRA prohibits employment discrimination based on a service member’s past, current or future military status, service or obligation. Stoner, a PCC police officer, is a veteran of active duty military deployments in Afghanistan and Iraq. He is currently a Sergeant First Class in the Army National Guard with 21 years of total military service, including three years on active duty.
According to the department’s complaint, PCC created the supervisory position of police corporal in 2010. Prior to that position being created, Stoner effectively performed his assigned duties as a lead police officer, an assignment that was replaced by the creation of the police corporal position. In 2010 and 2013, Stoner applied for promotion to police corporal, but both times he was not selected. The lawsuit alleges that, in each of the two years, Stoner’s military service was a motivating factor in PCC’s decision to deny him promotion to police corporal. According to the lawsuit, for both promotions, one of the two PCC officials who made the decision not to select Stoner exhibited anti-military bias against Stoner that was directly related to his military obligations. According to the suit, PCC conducted an investigation of Stoner’s internal complaint that his denial of promotion in 2013 was the result of anti-military bias by PCC selecting officials, and the college found that his complaint was substantiated. As a result, the PCC investigator recommended that remedial action be taken, including placing Stoner in an acting corporal position.
The department’s lawsuit seeks remedial relief for Stoner for the USERRA violations in 2013, as well as an earlier violation of the statute in 2010. The suit also alleges that PCC’s demonstration of anti-military bias was willful and warrants the award of liquidated damages to Stoner, as well as compensation for his loss of earnings and other benefits of employment.
“Employers have a legal obligation to respect and honor the rights of our uniformed service members to be fairly considered for promotions and other employment opportunities and not to subject them to unlawful discrimination because of their service in defense of our country,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.
Stoner initially filed a complaint with the Labor Department’s Veterans’ Employment and Training Service, which investigated this matter and, after resolution failed, referred it to the Justice Department. The Department’s Civil Rights Division, through its Employment Litigation Section, then filed suit on Stoner’s behalf. The Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s Web sites at http://www.usdoj.gov/crt/emp and http://www.servicemembers.gov, as well as on the Labor Department’s website at http://www.dol.gov/vets/programs/userra/main.htm.
Stoner v. Pima Community College Complaint
- Houston Man Handed Massive Sentence on Firearm Convictions
Honduran National Sentenced to 30 Months in Prison for Reentering the U.S. IllegallyRead the Press Release
LAKE CHARKES, La. –United States Attorney Stephanie A. Finley announced that a Honduran man was sentenced Thursday to 30 months in prison for reentering the United States illegally.
Felipe Mercado-Veliz, 39, of Honduras, was sentenced Thursday by U.S. District Judge Patricia Minaldi to one count of reentry of a deported alien. He was also sentenced to three years of supervised release. According to evidence presented at the July 24, 2014 guilty plea, Louisiana State Police stopped a vehicle on December 31, 2013 for a traffic violation. All three occupants did not have their identification, and U.S. Border Patrol was called. Records showed that Mercado-Veliz had been previously convicted of illegal reentry in 2008 and 2011. He was last removed on May 22, 2013.
United Stated Border Patrol and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Holyoke, Massachusetts Man, Sentenced to 40 Years Imprisonment for the Murder of Melissa Barratt and Drug Distribution ConspiracyRead the Press Release
The United States Attorney's Office for the District of Vermont stated today that Chief Judge Christina Reiss in U.S. District Court in Burlington sentenced Frank Caraballo, 32, of Holyoke, Massachusetts, to 40 years imprisonment on his conviction for firearm and drug conspiracy charges, including a firearm charge relating to the murder of Melissa Barratt. The United States sought a term of life imprisonment and argued that such a term was fair and just sentence for Caraballo’s execution style murder of Melissa Barratt, who was 32 at the time. Chief Judge Reiss also sentenced Caraballo to a lifetime of supervised release which will follow Caraballo’s service of the 40-year term of imprisonment.
Melissa Barratt's body was discovered in a wooded area off East West Road in Dummerston, Vermont on July 29, 2011. Caraballo was eventually charged in federal court with various drug and firearm offenses, including using a firearm during a drug trafficking offense and causing the murder of Melissa Barratt. The drug conspiracy charge involved crack cocaine, cocaine powder, and heroin. According to witness testimony at trial, immediately after Caraballo was released from jail in Hampden County Massachusetts in mid-March 2011 and continuing to July 29, 2011, when he was arrested by Vermont State Police, Caraballo regularly traveled from Holyoke, Massachusetts to southern Vermont with substantial amounts of narcotics and distributed them. Melissa Barratt assisted Caraballo in the sale of some of these drugs. On July 28, 2011, Caraballo accused Barratt of stealing a significant amount of drugs from his room at the Super 8 motel in Brattleboro. When Barratt did not return the drugs, Caraballo took her to Dummerston and shot her in the head.
After a three week trial beginning in mid-September 2013, the jury convicted Caraballo on the firearm and drug conspiracy counts. Though the jury found that Caraballo caused the death of Melissa Barratt, they did not find beyond a reasonable doubt that Caraballo discharged the weapon that caused Barratt’s death. This distinction, however, did not change the maximum sentence of life that Caraballo could potentially receive. In its sentencing memorandum, the government argued that Caraballo was an “unrepentant criminal” who “deserves life for a cold blooded murder while being a career drug trafficker.”
This case was jointly investigated by the Vermont State Police, the Southeast Vermont Drug Task Force, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The United States is represented by Assistant U.S. Attorneys Paul Van de Graaf and Joseph Perella. Caraballo is represented by Mark Kaplan, Esq. of Burlington and Natasha Sen, Esq. of Brandon.
The United States Attorney commends the exemplary work of the state and federal law enforcement agencies jointly investigating this matter. In addition, the United States Attorney stated that the investigation was greatly facilitated by the assistance of the office of Windham County State=s Attorney Tracy Kelly Shriver and Deputy State’s Attorney Steven Brown.Hitachi Metals Ltd. Agrees to Plead Guilty for Fixing Prices and Rigging Bids on Automobile Parts Installed in U.S. CarsRead the Press Release
Hitachi Metals Ltd., an automotive parts manufacturer based in Tokyo, Japan, and successor in interest to Hitachi Cable Ltd. (collectively Hitachi), has agreed to plead guilty and to pay a $1.25 million criminal fine for its role in a conspiracy to fix prices and rig bids for automotive brake hose installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court for the Northern District of Ohio in Toledo, Hitachi conspired to fix the prices of automotive brake hose sold to Toyota Motor Corporation and certain of its subsidiaries, affiliates and suppliers, in the United States and elsewhere (collectively Toyota). In addition to the criminal fine, Hitachi has agreed to cooperate in the department’s ongoing investigation. The plea agreement will be subject to court approval.
“Today’s guilty plea demonstrates the Antitrust Division’s commitment to hold companies accountable for engaging in illegal anticompetitive conduct,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The division is dedicated to its mission to protect U.S. consumers and businesses.”
According to the charge, Hitachi and its co–conspirators conspired through meetings and conversations in which they discussed and agreed upon bids and price quotations to be submitted to Toyota, and to allocate the supply of automotive brake hose to Toyota. In furtherance of the agreement, Hitachi sold automotive brake hose at non–competitive prices to Toyota in the United States and elsewhere. Hitachi’s involvement in the automotive brake hose conspiracy lasted from at least as early as November 2005 until at least September 2009.
Hitachi manufactures and sells a variety of automotive parts, including automotive brake hoses, which are flexible hoses that carry brake fluid through the hydraulic brake system of automobiles. The charges against Hitachi are the latest in the department’s on-going investigation into anticompetitive conduct in the automotive parts industry. These are the first charges filed relating to automotive brake hose sold to automobile manufacturers.
To date, 44 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Including Hitachi, 30 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of nearly $2.4 billion in fines.
Hitachi is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty for corporations of a $100 million criminal fine for each violation. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, Lima Resident Agency, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at 216-522-1400.
Hitachi Information
Gun Defendants Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Aundre Devon Holifield, 24, and his brother Akeem Orlando Holifield, 21, both of Marion, Alabama, were sentenced in federal court today for selling a firearm to a convicted felon. The brothers pled guilty to the charge in July of 2014.
United States District Court Judge Kristi K. Dubose imposed sentences of time served for each defendant, and placed them on three years’ supervised release. She instructed each of the brothers to get a job within the next 60 days or bring a doctor’s note excusing them from employment. Judge Dubose ordered that each brother would pay a $100 special mandatory assessment, but she did not impose a fine.
The case was investigated investigated by the 4th Judicial Drug Task Force, the Alabama Attorney General’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Four Connected to “River Otter Preppers” SentencedRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced four individuals with connections to the “River Otter Preppers” organization. They each pleaded guilty on August 14, 2014.
James Bruce Beebe (57, Valrico) was sentenced to 18 months in federal prison for being a felon in possession of a firearm. The court also ordered Beebe to forfeit the firearm involved in the offense. Desiree Nikkole Beebe (23, Lithia) was sentenced to three years’ probation for making a false written statement to a federally licensed firearms dealer during the purchase of a firearm - the same .22 caliber rifle that James Beebe later possessed.
Jason Michael Swain (33, Wauchula) was sentenced to three years in federal prison for being a felon in possession of a firearm (Bushmaster .223 caliber AR-15 type semi-automatic rifle). The court also ordered Swain to forfeit the firearm involved in the offense.
Nicholas Ryan Hall (23, Valrico) was sentenced to one year and one day in federal prison for making a false written statement to a federally licensed firearms dealer during his purchase of a firearm (M+M 7.62x39 mm AK-47 semi-automatic rifle), which he was buying on behalf of an individual he believed to be a convicted felon.
According to testimony and court documents, the four individuals were arrested on June 16, 2014, as the result of an investigation involving Martin Winters and his “River Otter Preppers” organization. The investigation related to the manufacturing and possession of destructive devices. Winters pleaded guilty on August 28, 2014, to making destructive devices and possessing unregistered destructive devices. A sentencing hearing is scheduled for December 4, 2014.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Marshals Service. It is being prosecuted by Assistant United States Attorney Donald L. Hansen.
Former Virginia Lawyer Sentenced to Six Years in Prison for Stealing Client Funds and Several Other Fraud SchemesRead the Press Release
ALEXANDRIA, Va. – Michael Eisner, 32, of Mastic, New York, was sentenced today to 72 months in prison, followed by three years of supervised release, for conducting a variety of fraud schemes, including stealing cash from his clients and fraudulently abusing credit cards in the name of his mother and wife. Eisner also was ordered to pay over $1.1 million in restitution to his victims, and he was remanded immediately into the U.S. Marshal’s custody after today’s hearing to begin serving his sentence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee.
Eisner pleaded guilty to wire fraud and conspiracy to commit wire fraud on July 15, 2014. According to court documents, prior to losing his law license in 2013, Eisner was a member of the Virginia Bar. He owned and operated the Northern Virginia Law Group, a law practice located in McLean, Virginia. In 2011 and 2012, Eisner committed a variety of fraud schemes, including stealing more than $250,000 in funds from his law clients. These clients had entrusted this money to him during the course of bankruptcy proceedings, and they were under the false impression that Eisner was keeping this money in escrow to pay for bankruptcy-related expenses. In reality, Eisner was using their money for his own personal benefit and enjoyment.Eisner also defrauded several financial institutions during various credit card and check fraud schemes. For instance, Eisner conducted a “credit card kiting” scheme, where he illegally abused a Citibank credit card account that was in his wife’s name. Eisner submitted fraudulent electronic payments to Citibank to reduce the balance on his cards in order to transact new charges exceeding his wife’s credit limit before his phony payments to Citibank were dishonored. Before Citibank caught on, Eisner amassed a balance that exceeded 300 percent of his wife’s credit limit. Eisner’s wife was not aware that he was using her credit card in this manner, and she did not authorize him to do so. In addition to using his wife’s credit card, Eisner also illegally used credit cards in his mother’s name during the course of this scheme without her knowledge or permission.
Eisner also conspired with Mark Head, who was sentenced to four years in prison on August 14, 2014, to conduct several other fraud schemes. In one such scheme, Head opened an account in his friend’s name without his knowledge or permission. Eisner and Head then used that account to issue several large checks to Eisner’s law firm. In reality, the account never had more than $20 in it. Eisner nonetheless deposited the checks written to his company at various Bank of America branches, and he immediately withdrew funds prior to Bank of America learning that the checks Head caused to be issued to Eisner were fraudulent. In total, Eisner and Head’s criminal conduct during this scheme caused actual losses to Bank of America of nearly $350,000.
Eisner, either working alone or with Head, conducted many other schemes that are described in court documents. As a result of his actions, Eisner caused more than $1.1 million in actual losses to his victims. If he had been as successful as he intended and certain victims had not uncovered his fraud, Eisner would have stolen more than $3.6 million from clients, banks and other victims.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Chad Golder prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-167.Former Director Sentenced for Stealing $300,000 from Home for Disabled PersonsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the former director of a program that provided a home for disabled persons in Higginsville, Mo., has been sentenced in federal court for embezzling more than $300,000 from the organization.
Terri Arlene Marr, 51, of Warrensburg, was sentenced by U.S. District Judge Dean Whipple on Thursday, Oct. 30, 2014, to three years and one month in federal prison without parole. The court also ordered Marr to pay $317,544 in restitution. Marr must surrender to begin serving her sentence on Dec. 15, 2014.
On April 23, 2014, Marr pleaded guilty to two counts of theft in connection with a health care benefit program.
Marr was the director of the Progressive Alternative Living, Inc. (PAL) from 1991 through 2013. PAL is an organization that operates a home in Higginsville for disabled persons in need of assistance. PAL receives reimbursement for many of these individuals from Medicaid. Marr was responsible for keeping strict and accurate accounts of all money received by and disbursed for and on behalf of PAL.
Marr admitted that she used PAL credit cards to pay personal expenses. Marr also made payments on her personal credit cards out of the PAL bank account from 2001 through 2013.
Marr also admitted that, from 2001 through 2013, she issued payroll checks to an individual who was not an employee of PAL. These payroll checks total approximately $186,038.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the Higginsville, Mo., Police Department.
Felon Sent to Federal Prison for Firearm ChargeRead the Press Release
A Renwick, Iowa, man was sentenced October 28, 2014, to over four years in federal prison for his illegal possession of a firearm.
Daniel Reames, age 49, from Renwick, Iowa, received the prison term after a January 16, 2014, guilty plea to felon in possession of a firearm.
Information provided by the United States at the sentencing and change of plea hearings revealed that Reames has a 1995 conviction in the Iowa District Court for Humboldt County for a felony offense which precluded him from lawfully possessing firearms. Despite being a prohibited possessor of firearms, on April 16, 2013, Reames possessed a stolen rifle. Reames had stolen the firearm during a burglary and later sold it to another person.
Reames was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Reames was sentenced to 57 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Reames is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3020.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun crimes. This case was investigated by the Bureau of Alcohol Tobacco, Firearms, and Explosives; and the Humboldt County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Federal Charges: Employee Dragged by Her Hair During Bank Robbery in Overland ParkRead the Press Release
TOPEKA, KAN. - A bank employee was dragged by the hair during an armed robbery at a bank in Overland Park, according to a federal criminal complaint filed Friday.
Clifton B. Cloyd, 53, and Steven A. Watts, 54, were charged with one count of bank robbery and one count each of brandishing a firearm during the robbery.
A criminal complaint and affidavit filed in U.S. District Court in Kansas City, Kan., alleged Cloyd and Watts were arrested Oct. 29 as they fled with money they stole from the Bank of America at 9500 Mission in Overland Park, Kan.
The affidavit alleges that during the robbery:
- Five bank employees and a customer where held at gunpoint.
- Cloyd, who was carrying a handgun, grabbed one of the bank employees and pulled her by the hair and scarf to the teller station. He struck her in the face three times with a handgun.
- Cloyd struck a customer so hard her glasses flew off and she was knocked to the floor.
- Cloyd struck a male bank employee with such force that his head started bleeding.
- Watts pointed a handgun at an employee and demanded she open the safe.
Elmora, Pa., Man Sentenced for Role in Lowmaster Drug Distribution NetworkRead the Press Release
JOHNSTOWN, Pa. - A Cambria County resident has been sentenced in federal court to five years probation, the first 18 months of which must be served by conditions of home confinement, and 750 hours of community service on his conviction of violating various federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Paul X. Strittmatter, 32, of Elmora, Pa.
According to information presented to the court, from March 2009 to May 9, 2011, Strittmatter conspired to distribute and possess with the intent to distribute 100 kilograms or more of marijuana; from July 2008 to May 9, 2011, he conspired to distribute and possess with the intent to distribute five kilograms or more of cocaine; and from Sept. 30, 2010, to May 9, 2011, he conspired to manufacture and possess with the intent to distribute 1,000 or more marijuana plants. In addition, evidence presented to the Court at the time of Strittmatter's guilty plea reflected that Strittmatter conspired with George M. Lowmaster and others in order to facilitate and promote Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Strittmatter. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
El Departamento De Justicia Llega A Un Acuerdo Con La Ciudad De Albuquerque Para Implementar Reformas Amplias Sobre El Uso De Fuerza Por El Departamento De Policia De AlbuquerqueRead the Press Release
El Departamento de Justicia anunció hoy que ha logrado un acuerdo de resolución detallado con la Ciudad de Albuquerque, el cual traerá amplias reformas al Departamento de Policía de Albuquerque (“APD” sus siglas en inglés) y su uso de fuerza contra civiles. Tras un año de investigaciones del uso de fuerza por parte de oficiales del APD y la publicación de la carta de hallazgos en abril, 2014, El Departamento de Justicia y la Ciudad han acordado entrar en un acuerdo ejecutable ante los tribunales el cual cambiará la manera en que oficiales del APD usan fuerza. Una vez que el Consejo de la Ciudad de Albuquerque considere el acuerdo de resolución en una sesión especial programada para la semana del 3 de noviembre, el Departamento de Justicia y la Ciudad presentarán el acuerdo de resolución ante el Tribunal de Distrito de los Estados Unidos para su aprobación e introducción como una ordenanza.
“La gran mayoría de los oficiales de policía de nuestra nación llevan a cabo sus labores con valor, integridad y profesionalismo excepcionales-arriesgando su vida a diario para mantener sus comunidades seguras. Pero cuando un patrón preocupante de mala conducta es revelada, o no se cumple con los estándares, el Departamento de Justicia tiene que tomar acción”, dijo el Procurador General Eric H. Holder Jr. “El acuerdo de amplio alcance que hemos logrado en este caso, transformará la cultura y las prácticas del Departamento de Policía de Albuquerque. Y confío que, con la cooperación de los líderes de la ciudad y los valientes oficiales de la policía, tomaremos pasos importantes para restaurar la confianza de los ciudadanos locales y construiremos para los residentes de Albuquerque comunidades más fuertes y seguras que es lo que todos los americanos se merecen”.
Además del uso de prácticas de fuerza, la investigación del Departamento de Justicia encontró que los oficiales utilizan fuerza mortal y fuerza menos letal de manera irrazonable y que deficiencias sistémicas en políticas, entrenamiento y supervisión han contribuido al este patrón o práctica. Después de la publicación de los hallazgos investigativos, el Departamento de Justicia solicitó información y recomendaciones para la reforma de la comunidad; así como de una variedad de interesados, incluyendo oficiales de policía, líderes comunitarios, defensores de salud mental y de otros residentes de Albuquerque. La información recibida tuvo un papel significante en la creación del acuerdo de resolución para que fuera algo positivo para las necesidades de la comunidad de Albuquerque y del APD.
“Este acuerdo de resolución sin precedentes, comenzará el proceso de restaurar confianza y cooperación entre la comunidad de Albuquerque y los oficiales de policía. Prácticas policiales constitucionales son la clave para construir confianza entre los departamentos de policía y las comunidades a las cuales sirven y por supuesto, la confianza es clave para asegurar la seguridad del público y de los oficiales”, dijo Vanita Gupta, Procuradora General Asistente Interina de la División de Derechos Civiles. “Este acuerdo de resolución provee el modelo para una reforma sostenible que proporcionará una colaboración y participación continua por parte de la comunidad. Agradecemos al Alcalde Berry, al Jefe de Policía Eden y a todos los individuos que compartieron con nosotros sus experiencias referentes al APD, para que este histórico acuerdo de resolución fuera una realidad”.
“Estamos verdaderamente orgullosos de nuestra comunidad y de nuestro departamento de policía por haber trabajado juntos durante un tiempo cuando la Ciudad enfrentaba serios desafíos, y ofrecer sus consejos y recomendaciones para seguir adelante,” dijo Damon P. Martínez, Procurador Federal por el Distrito de Nuevo México. “La reforma no pasará de la noche a la mañana y tomará tiempo para que nuestra comunidad sane, pero ya estamos en camino. A través del acuerdo de resolución que se logró hoy, la Ciudad está de acuerdo en implementar reformas fundamentales de una manera transparente, las cuales asegurarán que la fuerza será usada de acuerdo a derechos constitucionales y que generará más confianza entre los dedicados hombres y mujeres del Departamento de Policía de Albuquerque y los residentes a quien han jurado proteger”.
Bajo el acuerdo de resolución, la Ciudad y el APD implementarán reformas detalladas en nueve áreas sustantivas. Un equipo de monitoreo independiente será seleccionado conjuntamente y supervisará las reformas las cuales se espera será implementadas durante los próximos cuatro años. Las áreas que cubre el acuerdo de resolución son:
-
Uso de fuerza: incluirá que los supervisores acudan a la escena dónde se usó fuerza; proveer cuidados médicos a los sujetos, objetos de la fuerza, inmediatamente después del incidente; mejorar la calidad de las investigaciones del uso de fuerza; desarrollar un comité de revisión del uso de fuerza para detectar y corregir patrones y tendencias, utilizando agencias de policías circundantes como parte de un equipo poli-agencia que investigará tiroteos que involucren a oficiales de la policía para así obtener mayor objetividad y sentido de responsabilidad.
-
Unidades especializadas: incluyendo medidas que requieran de trabajos y deberes bien definidos para las unidades tácticas especializadas y de investigación; asegurarse que los oficiales estén suficientemente entrenados para salvar vidas en situaciones de alto riesgo; y el desmantelamiento del proyecto de reincidentes del APD, y así restaurar su misión esencial investigativa en lugar de unidad táctica.
-
Intervención en situaciones de crisis: incluyendo el establecimiento de un comité asesor de salud mental; proveer entrenamiento sobre la salud del comportamiento a todos los oficiales, despachadores y operadores del 911; y mantener grupos especialmente entrenados de proveedores de primeros auxilios, detectives y profesionales de salud mental, los cuales proveerán intervención en situaciones de crisis y darán apoyo a individuos con enfermedad mental grave o que están crónicamente sin hogar.
-
Políticas y entrenamiento: incluyendo el desarrollo de políticas claras y detalladas sobre el uso de fuerza, prevención de represalias, apoyo a oficiales que reportan la mala conducta y mejorar el programa de entrenamiento para asegurar que los oficiales desarrollen la habilidades técnicas y prácticas requeridas para usar fuerza de una manera legal y efectiva.
-
Investigaciones internas y a quejas de civiles: incluyendo medidas para eliminar fechas límites arbitrariamente impuestas para la presentación de quejas por parte de civiles; estándares para llevar a cabo investigaciones de manera objetiva, profunda y a tiempo; medidas para asegurar que el sistema de disciplina sea justo y consistente; y protocolos para proteger los derechos de los oficiales contra la autoincriminación.
-
Personal y supervisión: incluyendo un estudio de personal y recursos para determinar la distribución de recursos; hacer a los supervisores responsables de una supervisión cercana y efectiva; y proveer orientación sobre los sistemas de grabación colocados en el cuerpo para promover responsabilidad y aumentar la confianza pública.
-
Reclutamiento y promociones: incluyendo el desarrollo de un plan de reclutamiento estratégico que incluya metas y objetivos bien definidos y tomar los pasos necesarios para atraer a solicitantes cualificados quienes vengan de todos los sectores de la comunidad y asegurar que prácticas de promoción sean justas y consistentes.
-
Asistencia y ayuda a oficiales: incluyendo medidas para asegurar que personal del APD tenga acceso inmediato a servicios de salud mental y que supervisores estén entrenados para enviar a un especialista de tal manera que minimice el estigma; y
-
Participación comunitaria y supervisión: incluyendo medidas que refuercen el proceso de supervisión por parte de civiles de la Ciudad; programas de información pública que mantengan al público informado del progreso del APD hacía la reforma; requisitos para fomentar prácticas policiales comunitarias en todos los niveles del APD; y poner en sitio comités para establecer prácticas policiales comunitarias a lo largo de la ciudad para asegurar que se obtenga información significativa de la comunidad.
Un equipo independiente de monitoreo supervisará la implementación de las reformas, dará asistencia técnica y reportará sobre el cumplimiento por parte de la ciudad a través
de reportes que se harán periódicamente y serán públicos. El equipo de monitoreo tendrá acceso a todos los documentos, personal, instalaciones e información relacionada con el acuerdo de resolución y se relacionará con oficiales y miembros de la comunidad continuamente. El equipo de monitoreo también será responsable de asesorar los resultados para determinar si las metas del acuerdo de resolución se están cumpliendo. Esto se hará a través de indicadores de cumplimento y medidas objetivas. El acuerdo de resolución requiere dos años sostenidos de cumplimiento antes de que pueda ser finalizado.
Para más información sobre la División de Derechos Civiles, por favor visite www.justice.gov/crt. Para más información sobre la Oficina del Procurador Federal por el Distrito de Nuevo México, por favor visite http://www.justice.gov/usao/nm.
APD Commitment Letter
DOJ-ABQ Agreement Fact Sheet
SPL Police Accomplishments
-
Duquesne Teen Pleads Guilty to Violating Federal Drug LawsRead the Press Release
PITTSBURGH - An Allegheny County resident pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Rahde Williamson, 19, of Duquesne, pleaded guilty to two counts before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around January of 2014, and continuing thereafter to in and around April of 2014, Williamson conspired with others to possess with intent to distribute and distribute one kilogram or more of heroin and of possession with intent to distribute less than 100 grams of heroin.
Judge Conti scheduled sentencing for Feb. 20, 2015 at 3 p.m. The law provides for a total sentence of up to life in prison, a fine of up to $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, and the Pittsburgh Police Department conducted the investigation that led to the prosecution of Williamson.
Dubuque Man Pleads Guilty for Second Time to Distributing Heroin Resulting in Overdose DeathRead the Press Release
A man who sold heroin to a person who overdosed and died from using the heroin pled guilty for the second time on October 30, 2014, in federal court in Cedar Rapids.
Alvin Stanley Briggs, Jr., age 50, from Dubuque, Iowa, was convicted of distribution of heroin resulting in death. At the plea hearing, Briggs admitted that on July 3, 2012, he sold $100 worth of heroin to an individual identified as S.R., and that S.R. died as a result of using that heroin. Briggs initially pled guilty to the charge in June 2013, and was sentenced to 30 years’ imprisonment in September 2013. His conviction was overturned after the United States Supreme Court ruled in Burrage v. United States that individuals could not be convicted of distributing drugs where death resulted unless the government proved the drugs were the “but for” cause of the death. Briggs had previously admitted only that the drugs were a contributing factor in the death of S.R., but at the plea hearing this week, he admitted that S.R. would have lived but for using the heroin distributed by Briggs.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Briggs remains in custody of the United States Marshal pending sentencing. Briggs faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime term of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Dan Chatham and was investigated by the Platteville, Wisconsin, Police Department, and the Dubuque, Iowa, Drug Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 2:13-CR-01004-LRR.
Defendant Sentenced for Theft of Government Property, Possession of Unauthorized Access Device, and Aggravated Identity TheftRead the Press Release
Follow @NDFLNewsTALLAHASSEE, FLORIDA–Jamahl Hurley, 27, of Tallahassee, Florida, was sentenced to a total of 48 months in federal prison yesterday. United States District Judge Robert Hinkle sentenced Hurley to serve 24 months in federal prison for theft of government property and possession of fifteen or more unauthorized access devices, and to serve a consecutive term of 24 months for aggravated identity theft. Hurley was also ordered to pay $208,337.00 in restitution. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Hurley’s charges stem from a traffic stop that occurred on May 17, 2013, during which officers recovered a black bag that contained several notebooks with personal identifying information (PII) belonging to other persons. Officers also recovered debit cards in other peoples’ names from the bag. During the investigation, agents discovered that the PII had been used to file multiple fraudulent income tax returns for tax years 2011 and 2012, seeking approximately $865,931.00 in refunds, of which $208,337.00 was actually paid out.
U.S. Attorney Marsh credited the successful prosecution of this case to the excellent investigative work and cooperative efforts of the United States Secret Service, the Internal Revenue Service, and the Florida Highway Patrol. The case was prosecuted by Assistant United States Attorney Herbert Lindsey.
Defendant Charged in Massive Internet Fraud Scheme That Infected Millions of Computers Worldwide Extradited from Estonia to the Southern District of New YorkRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the extradition of VLADIMIR TSASTSIN from Estonia to face charges of computer intrusion, wire fraud, and money laundering, among other offenses. The charges relate to the alleged operation of a massive and sophisticated Internet fraud scheme that infected with malware more than four million computers located in over 100 countries. The malware secretly altered the settings on infected computers, enabling TSASTSIN and the six other charged defendants –Timur Gerassimenko, Dmitri Jegorov, Valeri Aleksejev, Konstantin Poltev, Andrey Taame, and Anton Ivanov – to digitally hijack Internet searches and re-route computers to certain websites and advertisements. TSASTSIN, an Estonian citizen, was arrested in Estonia on November 8, 2011, when the Indictment against him was unsealed. He arrived in the Southern District of New York yesterday, and was presented today before U.S. Magistrate Judge Gabriel W. Gorenstein.
Manhattan U.S. Attorney Preet Bharara said: “Now that Vladimir Tsastsin has been delivered to the Southern District of New York, he can answer for his alleged role in a scheme in which he and others manipulated Internet advertising techniques and reaped at least $14 million in ill-gotten gains in the process.”
The following allegations are based on the Indictment and other court documents previously filed in Manhattan federal court:
From 2007 until October 2011, TSASTSIN, Gerassimenko, Jegorov, Aleksejev, Poltev, Taame, and Ivanov controlled and operated various companies that masqueraded as legitimate publisher networks (the “Publisher Networks”) in the Internet advertising industry. The Publisher Networks entered into agreements with ad brokers under which they were paid based on the number of times that Internet users clicked on the links for certain websites or advertisements, or based on the number of times that certain advertisements were displayed on certain websites. Thus, the more traffic that went to the advertisers’ websites and display ads, the more money the defendants earned under their agreements with the ad brokers. The defendants fraudulently increased the traffic to the websites and advertisements that would earn them money and made it appear to advertisers that the Internet traffic came from legitimate clicks and ad displays on the defendants’ Publisher Networks when, in actuality, it had not.
To carry out the scheme, the defendants and their co-conspirators used what are known as “rogue” Domain Name System (“DNS”) servers, and malware (“the Malware”) that was designed to alter the DNS server settings on infected computers. Victims’ computers became infected with the Malware when they visited certain websites or downloaded certain software to view videos online. The Malware altered the DNS server settings on victims’ computers to route the infected computers to rogue DNS servers controlled and operated by the defendants and their co-conspirators. The re-routing took two forms that are described in detail below: “click hijacking” and “advertising replacement fraud.” The Malware also prevented the infected computers from receiving anti-virus software updates or operating system updates that otherwise might have detected the Malware and stopped it. In addition, the infected computers were also left vulnerable to infections by other viruses.
When the user of an infected computer clicked on a search result link displayed through a search engine query, the Malware caused the computer to be re-routed to a different website. Instead of being brought to the website to which the user asked to go, the user was brought to a website designated by the defendants. Each “click” triggered payment to the defendants under their advertising agreements. This click hijacking occurred for clicks on unpaid links that appeared in response to a user’s query as well as clicks on “sponsored” links or advertisements that appeared in response to a user’s query – often at the top of, or to the right of, the search results – thus causing the search engines to lose money. For example, when the user of an infected computer clicked on the domain name link for the official website of Apple-iTunes, the user was instead taken to a website for a business unaffiliated with Apple Inc. that purported to sell Apple software.
Advertising Replacement Fraud
Using the DNS Changer Malware and rogue DNS servers, the defendants also replaced legitimate advertisements on websites with substituted advertisements that triggered payments to the defendants. For example, when the user of an infected computer visited the home page of the Wall Street Journal, a featured advertisement for the American Express “Plum Card” had been fraudulently replaced with an ad for “Fashion Girl LA.”
The defendants earned millions of dollars under their advertising agreements, not by legitimately displaying advertisements through their Publisher Networks, but rather by using the Malware to fraudulently drive Internet traffic to the websites and ads that would earn them more money. As a result, the defendants and their co-conspirators earned at least $14 million in ill-gotten gains through click hijacking and advertisement replacement fraud. The defendants laundered the proceeds of the scheme through numerous companies including, among others, Rove Digital, an Estonian corporation, and others listed in the Indictment.
TSASTSIN, 34, of Estonia, is charged with one count of wire fraud conspiracy, which carries a maximum sentence of 30 years in prison; one count of wire fraud, which carries a maximum sentence of 30 years in prison; one count of computer intrusion conspiracy, which carries a maximum sentence of 10 years in prison; one count of computer intrusion furthering fraud, which carries a maximum sentence of five years in prison; one count of computer intrusion by transmitting information, which carries a maximum sentence of 10 years in prison; one count of money laundering, which carries a maximum sentence of 30 years in prison; and 21 counts of engaging in monetary transactions of value over $10,000 involving fraud proceeds, each of which carries a maximum sentence of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Estonian nationals Gerassimenko, Jegorov, Aleksejev, Poltev, and Ivanov were also arrested in November 2011, and were all previously extradited to the United States. The last defendant, Taame, who is a Russian national, remains at large. Aleksejev pleaded guilty to conspiracy to commit unauthorized computer intrusion and computer intrusion on February 1, 2013, and was sentenced to 48 months in prison. Ivanov pleaded guilty to all charges on February 21, 2013, and was sentenced to time served.
The case against TSASTSIN and the remaining co-defendants is pending before U.S. District Judge Lewis A. Kaplan. The next conference is scheduled for November 5, 2014 at 2:30 p.m.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, National Aeronautics and Space Administration-Office of the Inspector General, and the Estonian National Police and Border Guard Board. He also thanked the Office of International Affairs in the U.S. Department of Justice’s Criminal Division for its assistance with the extradition.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah Lai and Alexander Wilson are in charge of the prosecution.
The charges and allegations contained in the Indictment against TSASTSIN and the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Costa Rica Based Telemarketing Fraud Results in Prison Terms for TwoRead the Press Release
Two employees of a Costa Rica based telemarketing call center that defrauded thousands of victims of more than $4 million have been sentenced to serve 300 months in prison and 144 months in prison.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Anne M. Tompkins of the Western District of North Carolina made the announcement after U.S. District Judge Robert J. Conrad Jr. of the Western District of North Carolina imposed the sentences.
On Oct. 30, 2014, Glen Adkins Jr., 43, of San Diego, California, was sentenced to serve 300 months in prison and Warren F. Tonsing Jr., 43, of St. Paul, Minnesota, was sentenced to serve 144 months in prison. They were both ordered to pay $2.4 million in restitution, joint and several with their co-defendants.
Both defendants were convicted on Aug. 8, 2013, following a jury trial, of wire fraud and money laundering stemming from a scheme to defraud United States residents, most over the age of 55, out of millions of dollars by deceiving them into believing that each had won a large monetary prize in a “sweepstakes contest.” According to evidence presented at trial, both defendants worked in a Costa Rica-based call center that used computers to make telephone calls over the Internet to victims in the United States. This process allowed the defendants and their co-conspirators to disguise the originating location of the calls. Victims were informed that the callers were from a Federal agency, such as the Federal Trade Commission, and that to receive their “prize” they had to wire thousands of dollars to Costa Rica for a purported “refundable insurance fee.” As long as the victims continued to pay, the co-conspirators continued to solicit more money from them in the form of purported fees.
To date, 46 defendants have been convicted in the Western District of North Carolina for their participation in similar Costa Rican telemarketing schemes.
These cases were investigated by a multi-agency task force composed of the U.S. Postal Inspection Service, FBI, Internal Revenue Service, Federal Trade Commission and Department of Homeland Security. These cases are being prosecuted by Senior Litigation Counsel Patrick M. Donley and Trial Attorneys William H. Bowne of the Criminal Division’s Fraud Section.
- Corpus Christi Man Admits to Possessing More Than 5 Million Pornographic Images