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15 December 2014
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on December 17, 2014, and entering pleas of Not Guilty were:
• DONALD MITCHELL JOHNSON, a 48-year-old resident of Alhambra, California, appeared on charges of conspiracy to commit access device fraud and fraud and related activity in connection with access devices. If convicted of the most serious charges contained in the indictment, LIU faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the U.S. Secret Service. PACER Case Reference: 14-28
• EDWARD EARL WERNER, a 42-year-old resident of Hot Springs, appeared on charges of felon in possession of firearms. If convicted of the charge contained in the indictment, WERNER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sanders County Sheriff’s Office. PACER Case Reference: 14-46
Appearing before U.S. Magistrate Judge Strong in Great Falls on December 17, 2014, and entering pleas of Not Guilty were:
• JOSE LUIS ALVARADO, a 27-year-old citizen of Mexico appeared on charges of conspiracy to possess with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charge contained in the indictment, ALVARADO faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Russell Country Drug Task Force, and Homeland Security Investigations. PACER Case Reference: 14-96
• BRANDON MICHAEL JACKSON, a 29-year-old resident of Wolf Point appeared on charges of burglary. If convicted of the charge contained in the indictment, JACKSON faces 20 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by Fort Peck Tribes Department of Law and Justice PACER Case Reference: 14-78
Appearing before U.S. Magistrate Judge Ostby in Billings on December 17, 2014, and entering pleas of Not Guilty were:
• ZHE LIU, a 23-year-old resident of Alhambra, California, appeared on charges of conspiracy to commit access device fraud and fraud and related activity in connection with access devices. If convicted of the most serious charges contained in the indictment, LIU faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the U.S. Secret Service. PACER Case Reference: 14-119
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case. To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hudson County Gang Leader Pleads Guilty to Murder Conspiracy after Obtaining Approval from Gang’s National LeadershipRead the Press Release
NEWARK, N.J. – A Hudson County, N.J., man today admitted to trying to kill a rival gang member, U.S. Attorney Paul J. Fishman announced.
Carlos Valdez, a/k/a “Catracho,” 27, was indicted in July 2014 with numerous other top-ranking members of the international criminal street gang, Mara Salvatrucha (also known as “MS” or “MS-13”), for racketeering crimes, including conspiracy to commit murder. Valdez, who admitted to being the leader of an MS-13 set, or “clique,” operating in Hudson County, known as “Hudson Locotes Salvatruchas,” pleaded guilty today before U.S. District Court Judge Stanley R. Chesler in Newark federal court to Count One of the indictment, engaging in a racketeering conspiracy, and Count Five, conspiring to possess firearms in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
In autumn 2013, Valdez was recruited by Joel Antonio Cortez, a/k/a “Pee Wee,” a high-ranking member of Mara Salvatrucha’s national leadership, to join the “national program,” a scheme to consolidate the gang’s cliques under a single, nationwide organization devoted to violence, extortion, and drug trafficking. At the time, Cortez was incarcerated in a California state prison and used a contraband cellular phone to remain in contact with Mara Salvatrucha members on the East Coast. Cortez served as a top deputy for Jose Juan Rodriguez-Juarez, a/k/a “Sacerdote,” the leader of Mara Salvatrucha in the United States and the primary organizer of the new “national program.”
In November 2013, Valdez and other gang leaders in northern New Jersey hatched a plot to murder two brothers in Hudson County, New Jersey. Before carrying out the plot, Valdez and others sought authorization from high-ranking members in the gang’s national and international leadership, including Cortez and incarcerated members of the gang in El Salvador. Law enforcement learned of the murder plot during the course of its investigation and arrested certain gang members, including Valdez, before it could be completed.
Both of the charges to which Valdez pleaded guilty carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 16, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford. The investigation involved multiple FBI Field Offices, with substantial assistance provided by the FBI Field Office in Los Angeles. Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace Park, for their work on this case. He also acknowledged the U.S. Attorney’s Office for the Central District of California for its assistance in the ongoing investigation.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and Andrew J. Bruck of the U.S Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
14-440
Defense counsel: Scott Finckenauer Esq., Fairview, N.J.
Valdez, Carlos Indictment
Hudson County Gang Leader Pleads Guilty to Murder Conspiracy After Obtaining Approval from Gang’s National LeadershipRead the Press Release
A Hudson County, New Jersey, man today admitted to trying to kill a rival gang member, U.S. Attorney Paul J. Fishman announced.
Carlos Valdez, aka “Catracho,” 27, was indicted in July 2014 with numerous other top-ranking members of the international criminal street gang, Mara Salvatrucha (also known as “MS” or “MS-13”), for racketeering crimes, including conspiracy to commit murder. Valdez, who admitted to being the leader of an MS-13 set, or “clique,” operating in Hudson County, known as “Hudson Locotes Salvatruchas,” pleaded guilty today before U.S. District Court Judge Stanley R. Chesler in Newark federal court to Count One of the indictment, engaging in a racketeering conspiracy, and Count Five, conspiring to possess firearms in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
In autumn 2013, Valdez was recruited by Joel Antonio Cortez, aka “Pee Wee,” a high-ranking member of Mara Salvatrucha’s national leadership, to join the “national program,” a scheme to consolidate the gang’s cliques under a single, nationwide organization devoted to violence, extortion, and drug trafficking. At the time, Cortez was incarcerated in a California state prison and used a contraband cellular phone to remain in contact with Mara Salvatrucha members on the East Coast. Cortez served as a top deputy for Jose Juan Rodriguez-Juarez, aka “Sacerdote,” the leader of Mara Salvatrucha in the United States and the primary organizer of the new “national program.”
In November 2013, Valdez and other gang leaders in northern New Jersey hatched a plot to murder two brothers in Hudson County, New Jersey. Before carrying out the plot, Valdez and others sought authorization from high-ranking members in the gang’s national and international leadership, including Cortez and incarcerated members of the gang in El Salvador. Law enforcement learned of the murder plot during the course of its investigation and arrested certain gang members, including Valdez, before it could be completed.
Both of the charges to which Valdez pleaded guilty carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 16, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford. The investigation involved multiple FBI Field Offices, with substantial assistance provided by the FBI Field Office in Los Angeles. Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace Park, for their work on this case. He also acknowledged the U.S. Attorney’s Office for the Central District of California for its assistance in the ongoing investigation.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and Andrew J. Bruck of the U.S Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Hattiesburg Man Pleads Guilty to Conspiracy to Embezzle and Commit Mail FraudRead the Press Release
Hattiesburg, Miss. – Jerry Wayne Woodland, 52, of Hattiesburg, pled guilty today in U.S. District Court to conspiracy to steal food and food-related items from the Forrest County Detention Center and conspiracy to commit mail fraud to cover it up, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Don Alway.
Woodland, a former kitchen employee with the Forrest County Detention Center, was charged in a Criminal Information, filed on November 24, 2014, with conspiracy to steal over $5,000 worth of items from a local governmental agency and to commit mail fraud. Woodland worked for the Detention Center from at least 2002 through 2014. During that time, he conspired with others to embezzle food or food-related items from the jail by transporting or having such items transported to the homes or businesses of Woodland or his co-conspirators.
Woodland and others also conspired to commit mail fraud in order to accomplish their theft by ordering food from various vendors and concealing the purchase of the food by drafting and submitting Forrest County purchase requisition forms that contained fraudulent entries hiding the items. As a result, invoices were mailed and payments were made for the stolen food.
Woodland will be sentenced by U.S. District Judge Keith Starrett on March 9, 2015 at 10:15 a.m. The maximum penalty for conspiracy is five years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Mississippi State Auditor’s Office. Assistant U.S. Attorney Mike Hurst is prosecuting the case.Gloversville Man Sentenced to 18 Months for Growing MarijuanaRead the Press Release
ALBANY, NEW YORK – DAVID M. GAMBUZZA, age 41, of Gloversville, was sentenced on December 12, 2014, by U.S. District Judge Mae A. D’Agostino, to 18 months in prison for manufacturing marijuana, announced United States Attorney Richard S. Hartunian and New York State Police Bureau of Criminal Investigations Captain Scott P. Coburn.
GAMBUZZA, who pleaded guilty in July 2014, admitted to growing marijuana plants inside a two-story building that he owned in Montgomery County. GAMBUZZA had installed grow lights and sophisticated watering and ventilation systems inside the building. In September 2013, investigators searched the building and seized approximately 280 marijuana plants.
This case was investigated by the New York State Police and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Gaston Man Convicted of Trafficking in Counterfeit MedicationsRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Columbia, South Carolina ----William N. Nettles, United States Attorney for the District of South Carolina announced that Arthur Fleming Moler, age 51, of Gaston, was found guilty after a jury trial of trafficking in counterfeit goods, smuggling illegal medications and theft of government services. Facts presented during the trial showed that Moler sold and shipped counterfeit goods and medications, including illegal replicas of Viagra and Cialis, from his Columbia based business, South Carolina Liquidations
According to testimony presented during the case, United States Customs agents discovered counterfeit golf equipment being shipped from China to South Carolina Liquidations at 1215 Shop Road in Columbia, South Carolina. When investigators entered the warehouse, they discovered hundreds of counterfeit designer handbags, sunglasses, electronic equipment and over 2 million dollars’ worth of counterfeit erectile dysfunction medications. Sentencing in the case has not yet been scheduled but Moler faces a possible sentence of 20 years imprisonment and a fine of $2,000,000.
The case was investigated by the Department of Homeland Security - Immigration and Customs Enforcement and the United States Postal Service and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.Four Sentenced in Federal Student Aid Fraud RingRead the Press Release
PHOENIX – Jardon Laforcarde, 28, of Phoenix, was sentenced by U.S. District Judge Susan Bolton to 30 months’ imprisonment, followed by three years of supervised release, for his role in a federal student aid fraud ring that included three others. Laforcarde pleaded guilty to charges of conspiring to defraud the U. S. Department of Education of $369,589 in student aid funds. The three other participants pleaded guilty to the same conspiracy and were also recently sentenced: Ramon Meneses, 25, of Phoenix, received 54 months’ imprisonment, followed by three years of supervised release; his wife, Bobbie Robertson-Meneses, 31, of Phoenix, received five years of probation with 12 months of home incarceration; and Dorothy Taylor, 50, of Phoenix, received 24 months’ imprisonment, followed by three years of supervised release.
“Federal student loan programs are seriously undermined every year by fraudulently-obtained student aid funds,” said John S. Leonardo, United States Attorney for the District of Arizona. “The prison sentences imposed in this case reflect the seriousness of the offenses committed by these fraud rings and should serve as a warning to others who are contemplating the same type of fraudulent activity.”
Laforcarde, Meneses, Robertson-Meneses, and Taylor all conspired to enroll fictitious students in online college courses and submit fraudulent online applications for federal student aid in the names of those fictitious students. Laforcarde and Meneses, who were serving sentences in state prison at the time, obtained the personal identifying information of other prison inmates whose identities could then be used as the fictitious students. Robertson-Meneses and Taylor, who both have prior convictions but were not in prison at the time, used that information to complete the on-line enrollment forms. The fictitious students were awarded $369,589 in federal loan funds and Pell grants, and $254,891 was disbursed before the fraud was detected and stopped. The funds went to Robertson-Meneses and Taylor, who shared them with Laforcarde and Meneses. All four were ordered to pay restitution to the U.S. Department of Education.
The investigation in this case was conducted by the Department of Education, Office of Inspector General. The prosecution was handled by Monica Klapper, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-0291-PHX-SRB
RELEASE NUMBER: 2014-073_ Laforcarde et alFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Four Employees of Bernard L. Madoff’s Fraudulent Investment Advisory Business Sentenced in Manhattan Federal Court for Their Roles in the Massive FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANNETTE BONGIORNO, the manager of the fraudulent investment advisory business at Bernard L. Madoff Investment Securities LLC, JOANN CRUPI, a/k/a “Jodi,” who managed hundreds of millions of dollars in fictitious investments, and JEROME O’HARA and GEORGE PEREZ, who worked as computer programmers designing and maintaining the proprietary software that enabled the fraud, were sentenced in Manhattan federal court. BONGIORNO was sentenced last Tuesday to six years in prison, and ordered to forfeit more than $155 billion. O’HARA, who was sentenced last Tuesday, and PEREZ, who was sentenced on Wednesday, were each sentenced to two-and-a-half years in prison, and ordered to forfeit more than $19 billion. CRUPI, who was sentenced today, was sentenced to six years in prison, and ordered to forfeit more than $33 billion. After a nearly six-month trial before U.S. District Judge Laura Taylor Swain, BONGIORNO, CRUPI, O’HARA, and PEREZ were convicted in March 2014 of, respectively, ten, thirteen, eight, and eight counts of securities fraud, falsifying the books and records of Madoff Securities, and conspiracy; BONGIORNO and CRUPI were also convicted of tax fraud, and CRUPI was convicted of bank fraud.
Manhattan U.S. Attorney Preet Bharara said: “Earlier this year, a jury unanimously found Annette Bongiorno, Joann Crupi, Jerome O’Hara, and George Perez guilty of every crime with which they were charged as a result of their willful participation in Bernard Madoff’s historic Ponzi scheme. As the Court acknowledged today and last week, each of them knowingly agreed to defraud thousands of victims, leading to billions of dollars in losses and unspeakable hardship. Although the sentences imposed by the Court cannot adequately compensate their many, many victims, time in prison for Bongiorno, Crupi, O’Hara, and Perez is a measure of justice.”
According to the allegations in the Superseding Indictment filed in Manhattan federal court, other court documents, and the evidence presented at trial:
BONGIORNO, an employee in the investment advisory business for 40 years, managed hundreds of investment advisory accounts purportedly having a cumulative balance of approximately $8.5 billion as of November 30, 2008. BONGIORNO also supervised employees who worked for the investment advisory business, and was for many years the head of the fraudulent investment business.
CRUPI, an employee in the investment advisory business for 25 years, managed several Madoff Securities investment advisory accounts purportedly having a cumulative balance of approximately $900 million as of November 30, 2008. CRUPI also, like BONGIORNO before her, tracked the daily activity of the bank account into which billions of dollars of investment advisory client money was deposited, and from which investment advisory client redemptions were paid.
During the course of managing investment advisory accounts, BONGIORNO and CRUPI “executed” trades in the investment advisory clients’ accounts only on paper, based on historically reported prices of securities that they researched in the Wall Street Journal and Bloomberg. Those trades achieved annual rates of return that had been pre-determined by Madoff. BONGIORNO and CRUPI also backdated the purchase dates of purported trades so that they could control the amount of gains reflected in the investment advisory accounts. For example, on at least one occasion, BONGIORNO back-dated a trade by more than twelve years in the account of her co-defendant, Daniel Bonventre (who was sentenced last Monday to 10 years in prison). On another occasion, in the fall of 2008, BONGIORNO back-dated sales of Lehman Brothers shares in her own investment advisory account, after Lehman Brothers had in reality filed for bankruptcy. Similarly, CRUPI caused backdated, losing trades to be placed in her own investment account for tax purposes.
Further, BONGIORNO processed exceptional gains in certain investment advisory accounts that purportedly occurred months before the investment advisory accounts had been established. BONGIORNO also asked certain investment advisory clients to return previously issued Madoff Securities account statements so that she could alter them, and often include additional backdated trades.
CRUPI handled the receipt of funds sent to Madoff Securities by its clients for investment; transferred clients’ funds between and among various Madoff Securities bank accounts; handled client requests for redemptions sent to Madoff Securities by clients; monitored, on a daily basis, funds transferred into and out of the Madoff Securities bank account that was principally used to perpetrate the fraud; and prepared and assisted in the preparation of fabricated documents designed to deceive regulators and outside auditors. Further, CRUPI provided banks with false information in connection with mortgage loans for other Madoff Securities employees.
BONGIORNO and CRUPI also filed false Income Tax Returns on their own behalf, in which they failed to report income that they received from Madoff Securities. Specifically, BONGIORNO was convicted for failing to report thousands of dollars in cash that she withdrew from two “Bernard L. Madoff Special” accounts over a period of many years. Similarly, CRUPI was convicted for failing to report thousands of dollars in personal expenditures on a corporate credit card, including for food, wine, personal travel, and home improvement projects.
O’HARA and PEREZ were employed as computer programmers at Madoff Securities beginning in 1990 and 1991, respectively. They were responsible for developing and maintaining computer programs that supported the operation of the Madoff Securities investment advisory business. For example, O’HARA and PEREZ created special programs that, among other things: created books and records for a small subset of Madoff Securities investment advisory clients to help hide the scope and nature of the investment advisory business; changed the names of account holders to help explain why the SEC would not find investment advisory client securities at the Depository Trust Company (“DTC”); altered details about the number of shares, execution times, and transaction numbers for trades reported on Madoff Securities trade blotters, by employing algorithms that produced false and random results; created false and fraudulent order entry and execution reports that included fictitious times at which orders for equities transactions purportedly were placed; generated fraudulent commission reports; and created fraudulent investment advisory client account statements in a format different from those sent to clients.
Between 2004 and 2008, Madoff Securities was subject to at least five reviews by the United States Securities and Exchange Commission (“SEC”) and a European accounting firm that was conducting a review of Madoff Securities’ operations on behalf of investment advisory clients. As part of a concerted effort overseen by Madoff to deceive both the SEC and the European accounting firm, CRUPI, O’HARA, and PEREZ participated in creating numerous false and fraudulent books and records. O’HARA and PEREZ knew that the special programs they developed contained fraudulent information and that they were used in connection with the SEC and European accounting firm reviews. Similarly, O’HARA created false books and records – including by inserting fictitious securities positions – for the Madoff Securities market making and proprietary trading businesses, in order to deceive auditors from the Internal Revenue Service and New York State taxing authorities.
In imposing the sentences, Judge Swain observed that BONGIORNO’s “work was integral to the success of the unspeakable fraud perpetrated by Bernard Madoff,” and thereby “destroyed or at least chipped away at the foundation of innocent investors’ dreams.” Similarly, Judge Swain noted that O’HARA and PEREZ’s “work kept in place the essential backbone of the infrastructure through which the [] fraud was perpetrated,” and that through their conduct, “so many innocent lives were irreversibly upended.” Judge Swain observed that CRUPI was “the reassuring voice of Madoff Securities to at least one victim” (who had written a letter to the Court) and that she caused “staggering and continuing harm.”
In addition to the six-year prison term, BONGIORNO, 66, was also ordered to forfeit more than $155 billion, including specific bank accounts and real estate, representing property traceable to the massive Ponzi scheme. Judge Swain also imposed a term of two years of supervised release following BONGIORNO’s completion of this sentence. O’HARA, 51, and PEREZ, 48, were each ordered to forfeit more than $19 billion, and each was sentenced to three years of supervised release following the completion of his sentence. In addition to her prison sentence, CRUPI, 53, was ordered to forfeit $33.9 billion, and to serve four years of supervised release.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission, the Internal Revenue Service, and the U.S. Department of Labor for their assistance.
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.
Assistant United States Attorneys Matthew L. Schwartz, John T. Zach, and Randall W. Jackson are in charge of the prosecution. Assistant United States Attorneys Matthew L. Schwartz and Paul M. Monteleoni are in charge of the forfeiture aspects of the case.
Fort Washington Man Exiled to 10 Years for Drug Distribution and Illegal Possession of a GunRead the Press Release
As a Result of Previous Felony Convictions Was Prohibited From Possessing Guns or Ammunition
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Leonard Eugene King, age 35, of Fort Washington, Maryland, today to 10 years in prison, followed by four years of supervised release, for being a felon in possession of a firearm, and for possession with intent to distribute controlled substances, including powder and crack cocaine and marijuana.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Maryland Attorney General Douglas F. Gansler.
According to King’s plea agreement, on October 9, 2013, Prince George’s County Police officers executed a search warrant at King’s residence. Officers recovered two handguns, approximately 60 grams of cocaine and crack cocaine, four grams of marijuana, scales, baggies, drug paraphernalia and approximately $6,000 in cash. Some of the cocaine was found in the pocket of a pair of King’s pants, packaged for distribution. Additional cocaine, also packaged for distribution, was found in an air duct. A 9mm pistol, loaded with 17 rounds of ammunition was located in the basement wall and a .32 caliber pistol was located in the master bedroom.
King had two previous felony convictions for drug offenses and a conviction for a crime of violence, and was prohibited from possessing guns or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.
Fort Totten Woman Sentenced for Child Abuse or NeglectRead the Press Release
FARGO – U. S. Attorney Timothy Q. Purdon announced that on Dec.15, 2014, Alesia Stana Shaw, 31, Fort Totten, N.D. was sentenced before U. S. District Judge Ralph R. Erickson to serve eight months in prison for child abuse or neglect.
On June 7, 2013, Shaw was arrested at the Spirit Lake Casino on the Spirit Lake Indian Reservation related to a search warrant executed by Bureau of Indian Affairs and North Dakota Bureau of Criminal Investigation on reports of drug activity. Shaw was found in the room with her one year old child and was observed “roughly grabbing him and placed him on the couch in a hard manner.” Shaw tested positive for several drugs. On May 30, 2014, Shaw was arrested for driving a motor vehicle while intoxicated with her child in the vehicle. Shaw had previously been convicted in 2006 of Involuntary Manslaughter for an incident in which she lost control of her vehicle while driving under the influence of alcohol and killed one of her children, a 17 month old, in the crash.
Judge Erickson sentenced Shaw to serve 36 months supervised release upon her release from confinement and pay a $100 special assessment to the Crime Victims Fund.
The case was investigated by the Bureau of Indian Affairs and North Dakota Bureau of Criminal Investigation -Drug Enforcement.
Assistant U. S. Attorney Jan Morley prosecuted the case.
Fort Mill Woman Sentenced to 24 Months Imprisonment for Lying to Federal AgentsRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Kirstie Elaine Philome Barratt, age 22, of Fort Mill, South Carolina was sentenced to 24 months imprisonment today after earlier pleading guilty to making a false statement to a federal agent, in violation of Title 18, United States Code, Section 1001. United States District Judge Joseph F. Anderson, Jr. imposed the term of imprisonment, which will be followed by a 3 year term of supervised release. In October, Barratt plead straight up to the charge without a plea agreement. Barratt also may face deportation as a result of her guilty plea. During the sentencing hearing, Judge Anderson granted the government’s motion for an upward departure from the federal guidelines sentencing range of 0 to 6 months, noting that this was a “rare” case and that Barratt “knowingly placed a law enforcement officer’s life in jeopardy” by her false statement.
Evidence presented at the earlier change of plea hearing established that during the early morning hours of January 7, 2014, deputized task force agents with the Federal Bureau of Investigation’s (FBI) Charlotte Safe Streets Task Force/Violent Crime Apprehension Team were in Fort Mill, South Carolina searching for a subject (hereinafter “Subject”) who was wanted for an armed robbery of a restaurant in North Carolina. Agents, in police attire and accompanied by York County Sheriff’s Department officers in marked units, approached the residence of the Subject’s girlfriend, Barratt, in an attempt to determine if the Subject was in the residence. After approximately 15 minutes of the agents knocking on the door and announcing their presence with a loud speaker, Barratt came to the door. Barratt, who was advised by agents that it was a crime to make a false statement to federal agents, told the agents that her boyfriend was not in the home, that she had not seen him for two (2) months because they had broken up, and that the only other persons in the residence were her parents. Barratt gave the agents consent to search the residence. Upon completing a sweep of the residence, agents located Barratt’s parents asleep in one upstairs bedroom and noticed the door shut to another upstairs bedroom. Agents could hear a dog barking in that other upstairs bedroom, so they asked Barratt to secure the dog so they could search the bedroom. Barratt went into the bedroom and came out with the dog, but did not tell agents that Subject was in the room armed with a firearm. Agents then went into the bedroom and found the Subject crouched in the corner with his firearm drawn. Gunfire ensued and an FBI task force agent, as well as the Subject, were shot. Both Barratt and the Subject were taken into custody. Barratt later advised agents that she knew her boyfriend was in the residence, that she thought he was going to hide, and that when she entered the bedroom to retrieve the dog, she saw him with the firearm, but did not tell the agents before allowing them to enter the bedroom.
The case was investigated by the FBI, the York County Sheriff’s Department, and the South Carolina Law Enforcement Division (SLED), and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.Forrester Construction Company Agrees to Pay $2.15 Million, Admits Abuse of Certified Business Enterprise ProgramCompany Also Agrees to Extensive Corporate Remediation and Compliance MeasuresRead the Press Release
WASHINGTON Forrester Construction Company has agreed to pay $2.15 million to the United States and implement internal reforms to resolve a criminal investigation into alleged fraud committed by the company in connection with the use of Certified Business Enterprises (CBEs) in the procurement of more than $145 million in District of Columbia government contracts. The internal reforms will be subject to independent review and reporting.
As part of the resolution, Forrester Construction admitted that it improperly entered into written letter agreements and “Action of Management Committee” memoranda with the CBE participants to joint ventures that were not disclosed to the District of Columbia during the contract procurement process. As a result, the company admitted, both Forrester Construction and the CBE partners failed to follow the required CBE rules and regulations.
The resolution was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Daniel W. Lucas, Inspector General for the District of Columbia, and Peggy E. Gustafson, Inspector General of the U.S. Small Business Administration (SBA-OIG).
The announcement concludes a two-year investigation into Forrester Construction, a firm based in Rockville, Md., as well as its CBE partners on the joint venture projects.
Under the terms of a non-prosecution agreement reached with the U.S. Attorney’s Office for the District of Columbia, Forrester Construction agreed to pay $2.15 million to the United States and accepted and acknowledged responsibility for its improper conduct, as described in a Statement of Facts. The company also agreed to undertake various remedial measures to ensure compliance with the requirements of the District of Columbia’s CBE program (or any such equivalent on federal government projects) and the U.S. Small Business Administration’s 8(a) program, insofar as the company undertakes projects involving CBEs or 8(a) companies in the future.
Both the District of Columbia's CBE program and SBA’s 8(a) program are meant to help small, disadvantaged businesses access government procurement markets.
The remedial measures include the hiring or designation of a CBE and 8(a) Compliance Officer, as well as an Ethics Officer; the implementation of a comprehensive training program for all company personnel regarding compliance with the CBE and 8(a) programs; maintaining an effective compliance and ethics program, and continuing cooperation with law enforcement. Significantly, individual employees directly associated with the inappropriate conduct are no longer employed by the company.
Additionally, the company agreed to undertake community service intended to develop improvements in the CBE and 8(a) programs going forward. Forrester Construction agreed to offer workshops, either individually or in collaboration with an industry trade association, aimed at providing training with respect to the rules and regulations of the CBE and 8(a) programs, among other topics relating to the construction industry.
This case is the latest example of law enforcement efforts to protect the integrity of CBE programs. Michael A. Brown, a former member of the Council of the District of Columbia, pled guilty in 2013 to a federal bribery charge stemming from an undercover investigation in which he accepted $55,000 from FBI agents posing as employees of a company that purportedly wanted CBE approval and contracting opportunities. Brown is serving a 39-month prison term.
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“Forrester won lucrative D.C. construction contracts by exploiting a program designed to help disadvantaged local businesses,” said U.S. Attorney Machen. “Forrester entered secret side deals that wrested control of those contracts away from their historically under-represented partners and undermined the purpose of the CBE program. In addition to paying $2.15 million, Forrester has agreed to implement and fund industry-leading compliance programs within the company and provide training to other participating corporations on the rules and regulations of the CBE and 8(a) programs. This prosecution, along with the investigation and conviction of former D.C. Council member Michael Brown, highlights law enforcement’s efforts to prevent fraud and abuse in programs intended to promote fairness and equality in the awarding of city government contracts.”
“By changing the terms of joint ventures with small disadvantaged businesses and not reporting them to the D.C. government, Forrester Construction circumvented the foundation of the CBE program and used their proceeds to increase their own bottom line,” said Assistant Director in Charge McCabe. “By doing so, Forrester did a grave disservice to the D.C.-based CBE certified companies that work to support local job creation and grow our local economy. The FBI, along with the SBA, will continue to investigate companies that abuse procurement laws.”
“The agreement to settle this criminal investigation demonstrates this Office’s commitment along with our federal partners, the SBA-OIG, the FBI, and the United States Attorney’s Office, to ensure that businesses which receive District of Columbia government contracts and participate in programs designed to help small and disadvantage businesses, like the District’s CBE program and the federal SBA 8(a) program, are expected to comply fully with program requirements,” said Inspector General Lucas of the District of Columbia.
“These joint ventures principally served the interests of Forrester Construction Company to make money and to obtain contracting opportunities otherwise unavailable to them,” said SBA Inspector General Gustafson. “Joint ventures involving SBA program participants should be structured and executed to give the small business an opportunity to gain experience and technical knowledge and to further develop their business. I want to thank the U.S. Attorney’s Office for its leadership in reaching this agreement.”
According to the Statement of Facts agreed to by the company, between 2008 and 2009, Forrester Construction formed multiple joint ventures with CBEs for the purpose of bidding on construction contracts in the District of Columbia.
Three joint ventures formed by Forrester Construction and one of the CBEs, EEC of D.C., Inc., were awarded construction contracts from the District of Columbia. These contracts, including change order amounts, totaled approximately $64 million for construction of a new headquarters building for the Department of Employment Services; approximately $5.4 million for construction of a Senior Wellness Center in Ward 1, and approximately $56 million for the renovation and modernization of the existing Anacostia Senior High School building.
Forrester Construction also formed joint ventures with another CBE, and those joint ventures were also awarded construction contracts from the District of Columbia, which were, over a period of approximately three years, in an aggregated amount in excess of $20 million.
In each of these various projects, the joint venture formed by Forrester Construction and the respective CBE partner received the maximum amount of contracting preferences for which the CBE partner was eligible, which provided Forrester Construction and the respective CBE partner with a competitive advantage during the bidding process.
As part of its joint venture submissions to the District of Columbia Department of Small and Local Business Development (DSLBD), Forrester Construction and its respective CBE partner represented that the CBE partner would be the majority partner and maintain a 51% interest in the joint venture, entitling the CBE partner to 51% of the net operating profits of the joint venture. Each joint venture agreement also established a “Management Committee,” consisting of two representatives from the CBE partner and one representative from Forrester Construction, which provided the CBE partner with majority control of the joint venture.
After each joint venture for the projects was submitted to, and certified by, the DSLBD, however, Forrester Construction and the respective CBE partner signed a memorandum entitled “Action of Management Committee” or signed a letter agreement, which related to the operations of each joint venture. The memoranda and/or letter agreements effectively increased Forrester Construction’s control over the day-to-day operations of the projects and reduced the CBE partner’s share of the profits or losses in the projects -- notwithstanding the requirements of the joint venture agreements and the CBE rules and regulations. Forrester Construction and the CBE partner did not disclose these “Action of Management Committee” memoranda or the letter agreements to the District of Columbia government during the procurement process.
The “Action of Management Committee” memoranda also revised the respective scope of work and services that Forrester Construction and the CBE partner would provide to certain of the projects. In each instance, the “Action of Management Committee” memorandum applicable to the particular project identified a small scope of work for the CBE partner to complete and provided that Forrester Construction would provide all remaining general conditions, subcontract work, and all other work required to fulfill the requirements of the project.
For example, with respect to the Anacostia Senior High School joint venture, the applicable “Action of Management Committee” memorandum provided that the scope of work for the CBE equated to approximately $2.75 million, while the scope of work for Forrester Construction equated to approximately $46 million. The “Action of Management Committee” memoranda also established a pre-determined profit for the joint venture that specifically excluded any profits earned or losses sustained by either Forrester Construction or the CBE partner for their respective scope of work. Moreover, Forrester Construction and the CBE partner agreed that only the pre-determined profit, exclusive of each partner’s individual “scope of work,” would be split in the proportions agreed to in the joint venture agreement (i.e., 51% for the CBE partner and 49% for Forrester Construction). All other profits or losses generated through an individual scope of work would belong to the respective entity.
All of the work was performed under the various contracts. However, as a result of the letter agreements and “Action of Management Committee” memoranda, the CBE participant for each of the projects did not maintain majority control of the projects and did not receive 51% of the profits or losses associated with the projects, as required by the joint venture agreements and in accordance with the CBE rules and regulations.
This investigation was conducted by the FBI’s Washington Field Office; the Criminal Investigation Unit of the U.S. Attorney’s Office for the District of Columbia; the District of Columbia’s Office of the Inspector General, and the SBA Office of Inspector General.
The prosecution is being handled by Assistant U.S. Attorneys David A. Last, Richard DiZinno, and Michael K. Atkinson, of the U.S. Attorney’s Office for the District of Columbia.
Assistance is being provided by Criminal Investigators Juan Juarez and Stephen Cohen; Forensic Accountant Maria Boodoo; Paralegal Specialists Tasha Harris, Angela Lawrence, and Heather Sales; Litigation Technology Specialist Leif Hickling, and Assistant U.S. Attorney Anthony Saler, all of the U.S. Attorney’s Office for the District of Columbia.
14-275Former Wells Fargo Employee Sentenced to 24 Months for Bank Fraud ConspiracyRead the Press Release
RICHMOND, Va. – Jeannetta Matthews, 27, of Upper Darby, Pennsylvania, was sentenced today to 24 months in prison, followed by 3 years of supervised release, for conspiracy to commit bank fraud. She was also ordered to pay $457,967 in restitution to Wells Fargo Bank.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Douglas F. Mease, Special Agent in Charge of the United States Secret Service, Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.
Matthews pleaded guilty on July 31, 2014. According to court documents, Matthews was a Customer Sales and Service Representative at a Wells Fargo bank branch in Bala Cynwyd, Pennsylvania. In October 2012, she agreed to use her position at the bank to access and sell customer account and personal identifying information for a fee of approximately $7,000. Between October and December 2012, Matthews accessed the accounts of and sold information related to over 20 Wells Fargo customers, to include account numbers, social security numbers, and dates of birth. Using the information provided by Matthews, co-conspirators obtained false identification documents and credit cards in the names of the customers and impersonated the customers at Wells Fargo branches in Virginia, South Carolina, California, Georgia, and New Jersey. As a result of the scheme, co-conspirators withdrew over $450,000 from customer accounts between November 2012 and February 2013.
Two other co-conspirators, Anthony Romey Carter, of Elk Grove, California; and Jacquis Depree Nelson, of Atlanta, Georgia, were previously sentenced to 61 months and 51 months in prison, respectively, for their roles in the scheme.
This case was investigated by the United States Secret Service. Assistant U.S. Attorney Dominick S. Gerace is prosecuting the case on behalf of the United States.
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. 3:14CR00094.
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Former Utica Resident Pleads Guilty to Aggravated Identity Theft and Theft of Fraudulent Tax RefundsRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announced today that ANAS K. WILSON, 32, a former resident of Utica, New York, has pled guilty to one count of theft of government property, in violation of 18 U.S.C. § 641 and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). Mr. Wilson faces up to ten years in prison on the theft of government property count and a two-year mandatory minimum sentence on the aggravated identify theft count. Sentencing is scheduled for April 14, 2015, before Senior District Judge Frederick, J. Scullin, Jr.
At a change of plea hearing on December 4, 2014, Mr. Wilson admitted that he electronically filed fraudulent U.S. Individual Income Tax Returns on behalf of victims who were not entitled to tax refunds, and that he directed the tax refunds received to bank accounts that he had established. Mr. Wilson directed other individuals to withdraw the funds from the accounts and provide him the money, in exchange for a fee. To execute the scheme, Mr. Wilson illegally utilized personal identifying information (including Social Security numbers and names) of the victims. Mr. Wilson was responsible for submitting fraudulent tax returns to the IRS that resulted in the release of more than $400,000 in false tax refunds by the IRS.
United States Attorney Richard S. Hartunian said, “Filing fraudulent tax returns with stolen identities is one of the fastest growing crimes in the country. It is estimated our nation is losing hundreds of millions of dollars a year in bogus refunds – money that is meant to be used to make American lives safer and better. Theft of tax refunds is a crime against the American people. Our office continues to work diligently with the IRS to stop this crime.”
Shantelle P. Kitchen, Acting Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation, stated, “The investigation of tax refund schemes that involve the theft of taxpayers’ identities is a top priority for IRS-Criminal Investigation. We are committed to stopping individuals who seek to use our nation’s tax system for personal profit, especially at the expense of law abiding taxpayers.” Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service (“DCIS”) Northeast Field Office stated, “This guilty plea demonstrates the continued commitment of DCIS and fellow agencies in pro-actively identifying individuals and groups intent on perpetrating schemes which defraud the American taxpayer. The exploitation of government programs by way of identity theft or any other scheme will not be tolerated.”
This case was investigated by the IRS Criminal Investigation Division, the U.S. Treasury Inspector General for Tax Administration, and DCIS, and it is being prosecuted by Assistant United States Attorney Michael F. Perry.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315-448-0672.
Former University Professor Sentenced to Prison for Engaging in Sexual Conduct with a MinorRead the Press Release
A former university professor was sentenced today to five years in prison for traveling in foreign commerce to engage in sexual conduct with a minor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Walter Lee Williams, 66, of Palm Springs, California, was charged with engaging in sexual conduct with minors in the Philippines, and arrested in Mexico in 2013 after being placed on the FBI’s “Ten Most Wanted Fugitives” list. In connection with his guilty plea, Williams admitted that he traveled from Los Angeles to the Philippines to engage in sex acts with minor boys. Prior to his travel, Williams engaged in sexual activity via Internet webcam sessions with minors and expressed a desire to visit them in the Philippines to have sex.
In addition to the prison sentence, U.S. District Judge Philip S. Gutierrez of the Central District of California sentenced Williams to ten years of supervised release, and ordered him to pay $25,000 in restitution and to register as a sex offender for life.
The case was investigated by the FBI’s Los Angeles Field Office, and prosecuted by Trial Attorneys Ravi Sinha and Herbrina Sanders from the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Former Special Agent in Charge of the Department of Homeland Security's Office of Inspector General Sentenced to More Than Three Years in PrisonRead the Press Release
A former Special Agent in Charge of the Department of Homeland Security - Office of Inspector General (DHS-OIG) was sentenced to 37 months in prison today for a scheme to falsify records and obstruct an internal DHS-OIG inspection, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. The sentence was imposed by U.S. District Judge Andrew S. Hanen of the Southern District of Texas.
“While leading an office responsible for investigating misconduct at other government agencies, Pedraza sought to impede and obstruct the investigation of his own office,” said Assistant Attorney General Caldwell. “Pedraza’s criminal conduct resulted in the premature closing of criminal cases without resolution, potentially endangering our national security and allowing others to escape justice. We will root out and prosecute corruption wherever it may be found, including within the ranks of federal law enforcement.”
Former DHS-OIG Special-Agent-in-Charge Eugenio Pedraza, 50, of McAllen, Texas, was found guilty following a four-day jury trial on March 14, 2014, of conspiring with three other special agents to falsify criminal investigative reports to impede an internal DHS-OIG inspection and obstruct the underlying criminal investigations. The jury also found Pedraza guilty of five counts of falsifying records.
DHS-OIG is responsible for investigating alleged criminal activity by DHS employees, including corruption by Customs and Border Protection (CBP) and Immigration and Customs Enforcement personnel affecting the integrity of the U.S. borders. Pedraza headed DHS-OIG’s McAllen Field Office (MCA) from January 2009 to January 2012.
According to evidence presented at trial, in September 2011, DHS-OIG conducted an internal inspection of the MCA to evaluate whether the agency’s investigative standards and policies were being followed. In anticipation of the internal inspection, Pedraza and at least three other DHS-OIG agents, including Special Agent Wayne Ball, engaged in a scheme to falsify investigative documents to make it appear that criminal investigations were being conducted in a timely fashion and in accordance with DHS-OIG standard operating procedures. The scheme’s purpose was to conceal severe lapses in DHS-OIG’s investigative standards and policies at the MCA and Pedraza’s failure to properly supervise agents and investigations. Court documents reflect that Pedraza, Ball, and other special agents wrote and signed false criminal investigative reports. Pedraza then approved the reports for inclusion in the official investigative case files.
For example, the evidence at trial showed that, at Pedraza’s direction, a special agent drafted false memoranda of activity (MOAs) to fill gaps of inactivity in a criminal investigation to which he was assigned. The criminal investigation had been initiated in March 2010 and concerned allegations that a CBP officer was assisting the unlawful smuggling of undocumented aliens and narcotics into the United States. Because the MOAs were intended to describe investigative activities that occurred when the drafting agent was either not present at the MCA or not employed by DHS-OIG at all, Pedraza directed the agent to attribute the investigative activity to Ball. Ball then signed and backdated the false MOAs. Pedraza also signed and backdated the false MOAs, which were then placed in the investigation’s case file in advance of the internal inspection. Upon discovery of the falsified reports, the criminal investigation had to be closed without resolution. According to evidence presented at trial, Pedraza similarly directed other special agents to falsify records related to at least four other criminal investigations.
On Jan. 17, 2013, Ball pleaded guilty to one count of conspiring with Pedraza and at least two other special agents to falsify records in federal investigations and obstruct an agency proceeding. Ball is scheduled to be sentenced on Jan. 7, 2015, by U.S. District Judge Hilda G. Tagle of the Southern District of Texas.
This case was investigated by the FBI’s San Antonio Field Office and is being prosecuted by Trial Attorneys Eric Gibson, Brian Kidd and J.P. Cooney of the Criminal Division’s Public Integrity Section.
Former School Janitor Sentenced to Eight Years in Prison for Possession and Distribution of Child PornographyRead the Press Release
EUGENE, Ore. – Bryan Cramer, 37, of Springfield, Oregon, was sentenced to eight years in prison following his plea of guilty to distribution of child pornography. At the sentencing hearing, U.S. District Judge Michael McShane sentenced Cramer to 96 months in prison, followed by a 21-year term of supervised release. Cramer will be subject to stringent conditions of supervision and will be required to register as a sex offender.
The Federal Bureau of Investigation determined that Cramer made child pornography available for download on a file sharing site. Following the execution of a search warrant on Cramer’s residence in 2012, it was determined that he possessed over 900 images of child pornography on his computer. He carried on his possession and distribution activities while serving as a custodian in a local school, and admitted to authorities that he sexually abused two relatives many years ago.
The nature of the offense – possessing and trading images of child sexual abuse – supported the significant sentence in this case. Possession and distribution of child pornography is a serious offense involving real children who have been subject to horrific abuse.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Amy Potter.
Former Online Mortgage Broker Employee and Mortgage Broker Conspirator Sentenced to Prison for Computer TheftRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced to prison a former online mortgage broker employee and his California-based mortgage broker conspirator, for their roles involving computer theft from a nation-wide online mortgage broker (the “victim company”), announced the U.S. Attorney’s Office for the Western District of North Carolina and John A. Strong, Special Agent in Charge for the Federal Bureau of Investigation, Charlotte Division.
Jarrod Beddingfield, 38, of Waxhaw, N.C., was sentenced to 15 months in prison, followed by two years of supervised release. Steve Rosene, 43, of Newport Beach, Calif. was sentenced to 27 months in prison and three years of supervised release. Judge Conrad also entered forfeiture money judgments of $1.9 million for Rosene and $60,000 for Beddingfield. Both defendants were ordered to pay restitution to the company, the amount of which will be determined by the court at a later date.
According to filed court documents, court proceedings and today’s sentencing hearing: Beddingfield, a former employee of the victim company, sold company-employee log-in credentials to California-based Rosene. Rosene then used the stolen log-in credentials to access the victim company’s database and downloaded approximately 41,435 mortgage leads for use by two mortgage companies associated with Rosene. Rosene also sold the stolen log-in credentials to two other California mortgage brokers, Brian Rich and Marcus Avritt, co-owners of Chapman Capital, Inc., a mortgage broker firm that also did business as “Home Loan Consultants.” Rich and Avritt used their unauthorized access to the victim company’s database to steal approximately 14,137 mortgage leads. The mortgage leads were stolen in 2007 prior to the victim company’s change of all employee log-in credentials in early January 2008.
The stolen mortgage leads consisted of data on consumers who had used the victim company’s online mortgage lending exchange network to apply for new and refinanced mortgage loans. Mortgage loan consumers used the internet to access the company’s network and to complete online mortgage application forms containing contact, non-public financial data and other information necessary to complete the application process. Court records indicate that the information submitted through this online process comprised the company’s mortgage referral information, known individually as “mortgage leads.” The mortgage referral information, which contained thousands of such individual mortgage leads, was valuable information because it consisted of mortgage loan consumers who were ready, willing and financially-able to close on mortgage loans, refinancing loans and home equity loans. By obtaining this information without paying the requisite fees and dues, Rosene avoided paying the victim company an estimated $1.9 million for the stolen mortgage leads. Rich and Avritt avoided paying the victim company an estimated $745,152 for the stolen mortgage leads.
Beddingfield and Rosene pleaded guilty in July 2013 to one count of conspiracy to illegally access and use the victim company’s customer database. Rosene also pleaded guilty to an additional count of illegally accessing and using the victim company’s database. The other two co-defendants, Avritt and Rich, were sentenced to 15 months and 24 months in prison respectively for conspiracy to illegally access and use the victim company’s customer database.
Beddingfield and Rosene have been released on bond and will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI. This prosecution is handled by Assistant United States Attorneys Tom O’Malley, Ben Bain-Creed and Tiffany Mallory of the U.S. Attorney’s Office in Charlotte.
Former Newark Watershed Conservation and Development Official Indicted in Kickback Scheme, Money LaunderingRead the Press Release
One Contractor Who Paid Kickbacks Also Charged
NEWARK, N.J. – A former high ranking employee of the Newark Watershed Conservation and Development Corp. (NWCDC) and a contractor from whom he allegedly received kickbacks were indicted by a federal grand jury today in connection with a scheme to solicit and accept payments for work by outside contractors, U.S. Attorney Paul J. Fishman announced.Donald Bernard Sr., 67, of Newark, is charged in the indictment with six counts of defrauding the corporation of his honest services, four counts of violating the Travel Act, three counts of extortion under color of official right affecting interstate commerce, two counts of wire fraud and three counts of money laundering.
Giacomo (Jack) DeRosa, 58, of Clinton Township, New Jersey, was indicted separately on two counts of wire fraud, one count of violating the Travel Act and three counts of money laundering.
According to the documents filed in this case and statements made in court:
During the time that Bernard was a consultant to NWCDC (2008 through 2009), as well as when he worked there as manager of Special Projects (January 2010 through March 2013), he devised scheme to accept a stream of concealed and undisclosed bribes and kickbacks from contractors. Bernard agreed to accept, and did accept, at least $730,000 in kickbacks directly and indirectly from various contractors, including DeRosa. Bernard assisted the contractors in financing the payments to him by causing certain contractors to submit fraudulent and inflated invoices to the NWCDC, which contained materially false representations and half-truths, in many instances billing the NWCDC for work that was never performed.
For example, from August 2008 to January 2011, Bernard accepted approximately $136,000 in kickbacks from a Newark company (Company 1) that performed printing work for the NWCDC. At times, due to the physical ailments suffered by the proprietor of the company, Bernard obtained blank checks from the company signed by the proprietor, which Bernard filled out payable to himself or his consulting company, Bernard & Associates (B&A), with the proprietor’s consent.
The maximum potential penalties per count are detailed in the chart below:Counts of Indictment
Defendant
Charge
Maximum Penalty per Count
Bernard
18 U.S.C. §§ 1343 and 1346
(Wire Fraud)20 years
Counts 1 and 2
DeRosa
Counts 7 to 11
Bernard
18 U.S.C. § 1952(a)(3) (the Travel Act)
5 years
Count 3
DeRosa
Counts 12 to 15
Bernard
18 U.S.C. § 1951(a) (extortion under color of official right affecting interstate commerce)
20 years
Counts 16 and 17
Bernard
18 U.S.C. § 1343
(Wire Fraud)20 years
Counts 18 to 20
Bernard
18 U.S.C. § 1956(a)(1)(B)(i) (Money Laundering)
20 years
Counts 4 to 6
DeRosa
The maximum fines for all of the above violations except the money laundering charges are $250,000 or twice the gain or loss resulting from the offense. The maximum fines for the money laundering charges are: $500,000, or twice the value of the property involved in the money laundering transactions, or twice the gain or loss resulting from the offense, whichever is greatest.
The Bernard indictment also seeks forfeiture of $1.4 million to $1.8 million in connection with the fraudulent schemes and forfeiture of $20,000 in connection with the money laundering charges. The DeRosa indictment seeks forfeiture of between $200,000 and $360,000 in connection with the fraudulent scheme and forfeiture of at least $20,000 in connection with the money laundering charges.U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford; IRS – Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi, as well as criminal investigators of the U.S. Attorney’s Office, for the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Mala Ahuja Harker of the U.S. Attorney’s Office Special Prosecutions Division.
The charges and allegations contained in the indictments are merely accusations and the defendants are considered innocent unless and until proven guilty.
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Defense counsel: Bernard Sr.: Thomas Ashley Esq., Newark
DeRosa: Anthony Pope Esq., NewarkBernard, Donald Indictment
DeRosa, Giacomo IndictmentFormer Fed-Ex Driver Convicted in Manhattan Federal Court of Using Truck to Assist Two Separate Drug Rings, and of Witness Tampering and ExtortionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDGAR ENCARNACION, a/k/a “Edgar Encarnacion-Lafontaine,” a/k/a “Tapon,” 47, was convicted on December 11 in Manhattan federal court of conspiring to distribute marijuana, conspiring to distribute cocaine, conspiring to commit extortion, extortion, and conspiring to commit witness tampering. As a result of his conviction, ENCARNACION faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
Manhattan U.S. Attorney Preet Bharara said: “A jury convicted Edgar Encarnacion of conspiring with a massive marijuana trafficking ring, and using his FedEx truck to transport large amounts of cocaine from California to the New York City area. While he was on pretrial release for the marijuana charges, Encarnacion threatened family members of another FedEx driver. Witness tampering and extortion will not be tolerated, and the jury has properly held Encarnacion accountable for his crimes.”
ENCARNACION’s charges initially arose out of a multi-year investigation titled “Operation Green Venom,” a coordinated multi-agency investigation that was led by Homeland Security Investigations, Immigration and Customs Enforcement (“ICE HSI”), and first announced in October 2010. More than 60 defendants have been convicted in United States v. Manuel Geovanny Rodriguez-Perez, et al., 10 Cr. 905 (LTS), and related cases. Those defendants include former Rock-a-fella music founder Kareem Burke, a/k/a “Biggs,” who received a sentence of five years in prison, High Times Magazine editor Matthew Woodstock Stang, a/k/a “Magazine Guy,” and Oscar Rodriguez, the cousin of the organization’s leader, who was convicted of racketeering and marijuana related charges and sentenced to 20 years in prison earlier this year.
According to the complaints, Indictments, and the evidence at trial, in 2010, EDGAR ENCARNACION agreed to use his FedEx truck to smuggle marijuana for Manuel Geovanny Rodriguez-Perez, a/k/a “Manuel Rodriguez,” a/k/a “Shorty,” the leader of a Washington Heights-based marijuana trafficking organization. During that same period, ENCARNACION was working with a separate cocaine-trafficking organization. ENCARNACION smuggled up to multi-kilogram quantities of cocaine in the sleeper area of his truck as he drove cross-country from California to Woodbridge, New Jersey. In December 2010, a man who was assigned to drive with ENCARNACION (the “Co-Driver”) stole $30,000 of several hundred thousand dollars of drug money that ENCARNACION had agreed to transport for the cocaine organization. About a week later, ENCARNACION was arrested in connection with the marijuana-trafficking investigation, Operation Green Venom. ENCARNACION was released on bail on those charges.
In early 2012, ENCARNACION began a campaign intended to force the Co-Driver to return the drug money he had stolen. ENCARNACION employed Facebook accounts set up in women’s names – including the name of one of the Co-Driver’s family members – to reach out to the Co-Driver’s in-laws. In these messages, ENCARNACION warned that the cocaine trafficking organization was “equipped with dangerous people who will do anything for money,” and threatened that the Co-Driver’s family in the Dominican Republic was “the most vulnerable, but nobody will be spared.” ENCARNACION posted photographs of the Co-Driver and his family members, including his three young daughters, on one of the Facebook accounts. In addition to using these Facebook accounts to threaten the Co-Driver’s family members, ENCARNACION used them to send disparaging messages about his ex-wife to her current in-laws.
During the same period in which he was making the Facebook threats, ENCARNACION also caused a telephone call to be made to one of the Co-Driver’s relatives in the Dominican Republic, during which she was warned that if the Co-Driver did not return the money, “blood was going to be spilled.” When these efforts did not cause the Co-Driver to return the money, ENCARNACION then went to the Co-Driver’s mother’s house, and demanded that she tell her son to call him about the money. During this visit, ENCARNACION also showed her a photograph of her son and grand-daughters. A week later, ENCARNACION left a threatening letter in front of the Co-Driver’s mother’s door, which reported that there would be violent retaliation if the Co-Driver did not return the money and warned, “Avoid the ‘law,’ otherwise the family in the [Dominican Republic] will not be saved.”
The Co-Driver’s family used an Internet search to discover that ENCARNACION was on pretrial release in connection with Operation Green Venom, and contacted federal authorities. The Co-Driver then agreed to assist the investigation by recording telephone conversations with ENCARNACION and his associate, co-defendant Juan Peralta, a/k/a “Johnny Jay,” who pled guilty to threats-related charges. After approximately six additional weeks of investigation – during which the threats continued through Superstorm Sandy – ENCARNACION was arrested at his residence on new charges, and remanded.
ENCARNACION, 47, was convicted of one count of cocaine conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of marijuana conspiracy, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison; one count of conspiracy to commit extortion, which carries a maximum sentence of five years in prison; one count of extortion, which carries a maximum sentence of 20 years in prison; and one count of witness tampering, which carries a maximum sentence of 20 years in prison. Because the defendant was on pretrial release for all but one of the counts, he faces a potential additional penalty of 40 years – 10 years for each count. The maximum potential sentences in this case are prescribed by Congress and are provided for informational purposes only, as any sentencing of the defendant will be determined by the Court.
Mr. Bharara praised the outstanding investigative work of ICE HSI.
The prosecution of the cases arising from “Operation Green Venom” is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Amie N. Ely and Emil Bove conducted the trial.
Former Builder Sent Back to Prison for Fraud While on Federal ReleaseRead the Press Release
TOPEKA, KAN. – Former Kansas City builder F. Jeffrey Miller has been sentenced to three years in federal prison for violating the terms of his release when he became involved in a new real estate scam, U.S. Attorney Barry Grissom said.
Miller, 53, was sentenced to 72 months in federal prison in August 2012 after a jury convicted him of bank fraud, money laundering and criminal contempt. On Jan. 10, 2014, he entered supervised release.
In a 16-page order issued last month, U.S. District Judge Julie A. Robinson cited evidence that Miller lied to his probation officer about his involvement with his son, Brandon, in a company called Tri-States Holding, LLC (TSH). She cited “substantial evidence about the fraudulent practices and transactions” by the company.
During sentencing hearings, prosecutors submitted evidence that Miller began planning a new business while he was in prison. He formed the new company with his 23-year-old son, Brandon. Although Brandon Miller was represented as the owner, his father controlled the company. The Millers claimed to be in business to buy, refurbish and sell houses. In fact, Judge Robinson said in her order, the business was engaged in a “contract for deed scam.”
The company purchased more than 40 houses at Jackson County, Mo., tax sales and then advertised the houses for sale to low-income people in the urban core of Kansas City. The company advertised home ownership for just $500 down, sweat equity of no more than $2,000 in the form of cosmetic repairs including painting and clean up, and then monthly payments of $399. The buyers signed contracts for purchase prices in the $35,000 range.
Prosecutors presented evidence the company failed to complete promised repairs, performing shoddy repairs or virtually no repairs at all and then harassed and threatened buyers who ceased to make payments.
Judge Robinson ruled Miller violated four conditions of his supervised release by:
- Controlling the new company even though he was prohibited from working in any capacity involving authority in financial matters.
- Telling his probation officer that that he was a mere laborer at the new company when in fact he controlled the company.
- Making false monthly reports to the probation office that he was not committing any federal crimes.
- Making threats of bodily harm to a woman who purchased a house from the new company.
Grissom commended the Internal Revenue Service – Criminal Investigation and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Florida Man Pleads Guilty to Structuring More Than $2.5 Million in Proceeds of Drug TraffickingRead the Press Release
FRESNO, Calif. — Chad Allen Riffle, 22, of Citrus Springs, Florida, pleaded guilty today to one count of conspiring to structure cash transactions, United States Attorney Benjamin B. Wagner announced.
According to the plea agreement and court documents, Riffle and seven co-defendants opened and maintained bank accounts for the purpose of funneling cash proceeds of drug trafficking from Florida and other states back to California. Riffle made the cash deposits in amounts of $10,000 or less to attempt to prevent Currency Transaction Reports from being filed by the banks on his cash deposits. Currency Transaction Reports are prepared by banks for any transaction involving more than $10,000 in cash. These reports are filed with the Department of Treasury and are made available to law enforcement.
Riffle also waived his interest in numerous assets seized by law enforcement, including a Land Rover, two Bentleys, two Mercedes Benzes, and a 30-foot motorboat.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney's Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorneys Grant B. Rabenn, Patrick R. Delahunty, and Jeffrey Spivak are prosecuting the case.
Riffle is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on March 9, 2015. The maximum statutory penalty for conspiracy to structure is five years in prison and a $250,000 fine. The actual sentence, however, will 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.Florida Keys Resident Sentenced for Illegally Trafficking in Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracey Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service, Office of Law Enforcement, Miami Office, announced that Charles R. Jamison, 75, of Little Torch Key, Florida, was sentenced today in Key West for conspiring with others to commit certain offenses against the United States, that is conspiracy to transport, sell, receive, acquire, and purchase any fish and wildlife, that is juvenile bonnethead sharks (Sphyrna tiburo), with a fair market value in excess of $350.00, and attempt to do the same, knowing that said fish were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3372(a)(4)and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371.
United States District Court Judge Jose Martinez sentenced Jamison to a term of probation of 18 months, a criminal fine of $2,000, and imposed a special condition precluding Jamison from engaging in the marine wildlife industry during the period of probation. The Court also ordered the forfeiture of Jamison’s vessel, engine, trailer, tackle, and gear used in the commission of the Lacey Act violations.
According to the allegations of the Information filed against him, a Joint Factual Statement filed by the parties, and statements in court, Jamison was a resident of Monroe County, active for many years in the harvest and sale of bonnethead sharks (Sphyrna tiburo). At no time did Jamison, directly or as a third party contractor, possess or hold any State of Florida special activities license to collect, harvest, or transport any shark species, nor did he possess and hold a valid federal annual vessel permit for sharks issued pursuant to 50 C.F.R. 635.4 to harvest, collect, or take shark species as required by the laws of the State of Florida.
The Information further alleges that between approximately June 2012 and October 2012, at Monroe County, Jamison and others known to the U.S. Attorney’s Office, harvested bonnethead sharks from Florida state waters in the Florida Keys, thereafter negotiating the purchase, sale, transportation, and transfer of the bonnethead sharks in interstate commerce. The bonnethead sharks would then be shipped by individuals associated with Jamison in interstate commerce by a variety of means, including rental truck and as commercial air cargo.
The Information, in a series of “overt acts”, describes multiple instances when specific numbers of sharks were harvested, the transfer of sharks from Jamison to a commercial marine life facility on Big Pine Key, and specific payments received by Jamison for sharks sold in interstate commerce.
Mr. Ferrer commended the joint investigative efforts of the NOAA Office of Law Enforcement and the Fish & Wildlife Service, Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom, and noted the assistance of Refuge Officers from the Florida Keys National Wildlife Refuges and the U.S. Customs and Border Protection Air Marine Branch in the development of the case. This matter was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
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.
Final DBSI Executive SentencedRead the Press Release
BOISE – Gary Wayne Bringhurst, 47, of Highland, Utah, was sentenced today to five years of probation, a condition of which is 60 days of intermittent imprisonment, for conspiracy to commit securities fraud, U.S. Attorney Wendy J. Olson announced. Bringhurst is the former Chief Operating Officer of DBSI Housing, Inc. Chief United States District Judge B. Lynn Winmill also ordered Bringhurst to pay restitution in an amount to be determined. Bringhurst pleaded guilty on April 8, 2013.
According to the plea agreement, in 2007 and 2008, he conspired with Douglas Swenson, Mark Ellison, David Swenson, and Jeremy Swenson to mislead DBSI investors by: (i) converting for DBSI’s use Accountable Reserve funds belonging to investors in contravention of representations that they would be used for tenant improvements, leasing improvements, and capital improvements to the investors’ properties; (ii) misrepresenting DBSI Housing, Inc.’s financial strength by “netting” millions of dollars of uncollectible accounts receivables from technology company affiliates against accounts payable that were actually paid; (iii) failing to disclose to investors that the DBSI Master Lease portfolio of properties was losing millions of dollars and was not sustainable, in contravention of representations that the Master Lease portfolio was profitable; (iv) failing to disclose that DBSI was reliant on new investor funds to make Master Lease payments and to sustain its overall operations.
Bringhurst is the final DBSI defendant to be sentenced. Previously, in August of 2014, Douglas Swenson, CEO and President of DBSI, was sentenced to 240 months in prison; Mark Ellison, General Counsel of DBSI was sentenced to 60 months in prison; David Swenson, Assistant Secretary of DBSI, was sentenced to 36 months in prison; Jeremy Swenson, Assistant Secretary of DBSI, was sentenced to 36 months in prison. All four men were convicted on April 14, 2014, after trial before a federal jury, of 44 counts of securities fraud. Douglas Swenson was convicted of an additional 34 counts of wire fraud. Their cases are pending appeal.
This case was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation.
Federal and Local Law Enforcement Along with Michigan Department of Corrections Officials Meet with State Parolees to Improve Prisoner ReentryRead the Press Release
Officials encourage parolees to take advantage of services and make smart choices in leading law abiding lives or risk returning to prison
GRAND RAPIDS, MICHIGAN – In an effort to reduce the risk and rate of repeat offenses by recently released prisoners, U.S. Attorney for the Western District of Michigan Patrick Miles launched a new program called “Facing Choices” in collaboration with the Michigan Department of Corrections (MDOC) earlier this year. As part of the Facing Choices Program, state and federal law enforcement officials met today with state parolees in the Grand Rapids area. Representatives of service providers and programs available to parolees were also in attendance. This is the second in a series of such meetings to be held throughout Western Michigan.
The program is intended to help parolees make decisions that keep them on a law-abiding path and away from offending again. “The goal of the Facing Choices program is to reduce recidivism. That means less crime which means fewer victims as well as lessening the burden on law enforcement, the judicial and prison systems, and taxpayers,” U.S. Attorney Miles stated. “Nationally, approximately two-thirds of ex-offenders are rearrested within three years of release and almost half are re-incarcerated. In Michigan, the recidivism rate is 28 percent. According to one report I read, if 93 percent of prisoners in the U.S. did not commit another offense, American taxpayers would save between $17.3 billion and $1.1 trillion.”
U.S. Attorney Miles, Grand Rapids Police Chief David Rahinsky, other law enforcement representatives and MDOC officials reminded the parolees that law enforcement, prosecutors, and the MDOC are prepared to see them sent back to jail if they make poor choices and re-offend. But, they prefer seeing them become productive members of society and succeed. A parolee who re-offends is a high priority target for law enforcement. “But the point of this meeting is not just to remind you that we’ll hold you accountable if you do wrong,” U.S Attorney Miles explained. “We’re here to remind you that parole is an opportunity for you. Take advantage of the resources and the contacts that your parole status affords you.”MDOC Deputy Administrator Brian Shipman noted: “The mission of the Department of Corrections is to hold offenders accountable while promoting their success. The MDOC envisions the placement of an offender into the community as a carefully planned process. It is guided by a case plan which is meant to prepare him or her for a legally and socially acceptable adjustment to life in the community. Supported by experienced professionals in the public and private sectors, the offender will have the resources and guidance necessary to support successful community adjustment.”
Approximately 80 parolees attended the event. Following the talks from law enforcement and MDOC representatives, the parolees were directed to the attending service providers.
Representatives of the Kent County Sheriff’s Office, Kent County Prosecutor’s Office and Federal Bureau of Alcohol, Tobacco, Firearms and Explosives also spoke and shared in the message to the parolees. U.S. Attorney Miles praised the cooperation and collaboration that are critical to the Facing Choices program, “I am pleased that local, state, and federal law enforcement as well as County Prosecutors are working together to reduce recidivism,” he said. “I believe it is the mission of law enforcement and prosecutors to protect the public and that efforts to prevent repeat offenses are part of that duty.”
END
Federal Marijuana Case UpdateRead the Press Release
FRESNO, Calif. — Baltazar Rodriguez was sentenced to 46 months in prison and Jose Cisneros Garcia was sentenced to eight months in prison today for their involvement in separate large-scale marijuana cultivation operations, U.S. Attorney Benjamin B. Wagner announced.
Sentencing in Terra Bella Cultivation Operation (1:12-cr-318 LJO)
Following his guilty plea in October, Baltazar Rodriguez, 45, of Terra Bella, was sentenced to three years and 10 months in prison for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel in Terra Bella. According to court records, law enforcement officers seized 1,313 marijuana plants from 39.6 acres of farm land in Terra Bella where Rodriguez resided with his family. Inside Rodriguez’s residence, officers found a loaded, unregistered revolver in Baltazar Rodriguez’s bedroom, a digital scale commonly used to weigh controlled substances, and documents showing wire transfers of cash to Mexico.
Rodriguez; his son, Jose Guadalupe Rodriguez, 20; Carlos Adan Lupian-Lua, 26; Jose Guadalupe Zavala-Ramos, 34; Juan Carlos Perez-Gonzales, 45, all of Michoacàn, Mexico; and Hector Quintero-Mercado, 36, of Jalisco, Mexico; were originally charged with narcotics and immigration offenses and entered guilty pleas. Baltazar Rodriguez was the last of these defendants to be sentenced. A defendant in a related case, Martin Rojas-Cuamba, 46, of Escondido, also previously pleaded guilty in a separate case to smuggling bulk cash derived from the Terra Bella operation. Rojas-Cuamba’s sentencing is set for January 20, 2015. Upon completion of his prison sentence, Baltazar Rodriguez is subject to deportation to Mexico.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the sheriff’s offices of Tulare, Kern, San Luis Obispo, and Ventura Counties, and the Escondido Police Department.
Sentencing in Modesto Cultivation Operation (1:11-cr-339 AWI)
Jose Cisneros Garcia, (Cisneros), 55, of Modesto, was sentenced to eight months in prison for smuggling bulk cash derived from a marijuana cultivation operation on two residential parcels in Modesto that Cisneros owned. In sentencing Cisneros, Senior U.S. District Judge Anthony W. Ishii considered evidence that the cultivation operation involved 549 marijuana plants weighing over 3,000 pounds. Agents of the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto, conducted the investigation and seized not only marijuana but an assault weapon with 124 rounds of ammunition from an open detached garage at one of the two residential properties.
Assistant United States Attorney Karen Escobar is handling the above prosecutions.
Federal Law Enforcement Leaders Meet to Support the U.S. Attorney's Guardians ProjectRead the Press Release
GREAT FALLS – Dozens of senior federal law enforcement officials will meet in Great Falls this week to consult with the United States Attorney about his office’s anti-corruption strike-force known as the Guardians. The Guardians Project was launched in 2011 by U.S. Attorney Mike Cotter as a collaborative law enforcement effort to investigate and prosecute public corruption and fraud involving federal grants and contracts in the aftermath of the American Recovery and Reinvestment Act—also known as the Stimulus Bill—which provided for significant increases in federal funding in Indian Country.
The Guardians Project created a partnership that merged the extensive resources of the Federal Bureau of Investigation and the Internal Revenue Service with the expertise and experience of the various Offices of Inspector General, whose departments had provided significant grants and contracts to Indian tribes for the benefit of those communities. Agents working for the Inspectors General specialize in the investigation of fraud and corruption, and other forms of abuse of taxpayer monies, and possess specialized knowledge of federal programs. This week’s meeting of senior officials seeks to review the work of the Guardians and to coordinate with federal prosecutors about the future direction of the initiative.
Department of Justice Inspector General Michael Horowitz will attend the meeting along with senior national officials from Offices of Inspector General for the Departments of Interior, Health and Human Services, Education, Housing and Urban Development, and the Environmental Protection Agency. Guardians’ case agents and regional officials from those departments will also be in Great Falls to discuss the progress and future direction of the Guardians Project. Management officials from the FBI and IRS will join the Inspectors General at the meeting on Thursday and have informal meetings with the U.S. Attorney on Wednesday afternoon.
Those management officials attending the Great Falls meeting are:
Department of Justice – Office of the Inspector General
- Michael Horowitz, Inspector General
- Norman Lau, Special Agent in Charge - Denver Region
Department of Justice – Federal Bureau of Investigation
- Mary Rook, Special Agent in Charge - Salt Lake City Division
- Scott Vito, Assistant Special Agent in Charge
- Travis Burrows, Supervisory Senior Resident Agent
Department of Interior – Office of Inspector General
- Stephen Hardgrove, Chief of Staff
- Matthew Elliott, Deputy Assistant Inspector General for Investigations
- Don Crook, Special Agent in Charge - Denver Region
Department of Health and Human Services – Office of Inspector General
- Joanne Chiedi, Principal Deputy Inspector General
- Gary Cantrell, Deputy Inspector General - Investigations
- Gerry Roy, Special Agent in Charge - Kansas City Division
Department of Treasury – Internal Revenue Service
- Stephen Boyd, Special Agent in Charge - Denver Field Office
- Steven Osborne, Assistant Special Agent in Charge
Department of Education – Office of Inspector General
- Aaron Jordan, Acting Assistant Inspector general for Investigations
- Natalie Forbort, Special Agent in Charge - Long Beach Regional Office
Environmental Protection Agency – Office of Inspector General
- Patrick Sullivan, Assistant Inspector General
- Alan Mito, Special Agent in Charge - Denver Region 8
Department of Housing and Urban Development – Office of Inspector General
- David Barnes, Assistant Special Agent in Charge, Denver Field Office
Since the Guardians Project began obtaining indictments from the federal grand jury in late 2012, thirty two indictments and two informations have been filed charging 76 defendants and resulting in 35 felony convictions. The convictions are for conspiracy, bribery, fraud, embezzlement, extortion, obstruction of justice, money laundering and tax evasion.
Notable Guardians prosecutions are the convictions of six defendants associated with the Po’Ka Program for disadvantaged youth on the Blackfeet reservation, the prosecution and conviction of Tony Belcourt, Chief Executive Officer of the Chippewa Cree Construction Corporation, and former tribal Chairmen John Chance Houle and Bruce Sunchild of the Rocky Boy’s reservation. Eight members of the Dale Old Horn family were convicted in 2012 and 2013 for their role in a scheme to defraud the Crow Tribe using positions with the Crow Tribe Historic Preservation Office.
Federal Jury Finds Tampa Pill Mill Pharmacist GuiltyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Brian C. Weiler (56, Melbourne) guilty of conspiracy to distribute and dispense Oxycodone. Weiler, a pharmacist of 32 years, faces a maximum penalty of 20 years in federal prison and the forfeiture of his Florida Pharmacist License. His sentencing hearing is scheduled for March 13, 2015. Weiler was indicted in October 2011.
According to evidence presented at trial, from an unknown date through October 26, 2011, Weiler worked at two Tampa pharmacies, VIP Pharmacy on Martin Luther King, Jr. Boulevard; and New Tampa Pharmacy on Waters Avenue. During that time, he filled hundreds of prescriptions for very large doses of Oxycodone. The recipients included drug addicts and members of doctor shopping organizations who traveled from Ohio, Kentucky, and Tennessee. During the course of the conspiracy, Weiler dispensed more than 100,000 pills from the two pharmacies. Owners and operators of the VIP Pharmacy and New Tampa Pharmacy have previously been convicted of federal conspiracy charges.
This case was investigated by a joint task force, including the Drug Enforcement Administration, the Pasco County Sheriff's Office, and the Temple Terrace Police Department. It is being prosecuted by Assistant United States Attorney Maria Chapa Lopez.
Federal Contractors Eyak Technology LLC and Eyak Services LLC Resolve False Claims Act and Anti-Kickback Act AllegationsRead the Press Release
Alaska and Virginia-based technology contractors Eyak Technology LLC (EyakTek) and Eyak Services LLC (ESL) have agreed to pay $2.5 million and relinquish any rights to additional payments from the United States to resolve allegations that they submitted false claims to the U.S. Army Corps of Engineers, the Justice Department announced today. EyakTek and its sister company, ESL, provide healthcare, information technology, communications and infrastructure services to the U.S. government. Both are subsidiaries of The Eyak Corporation, headquartered in Anchorage, Alaska.
“Federal government contractors and their employees must adhere to high standards in their dealings with the government,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We will vigorously pursue those who pay kickbacks or otherwise engage in conduct that undermines the integrity of the contracting process.”
From 2005 to 2011, EyakTek held a $1 billion prime contract with the U.S. Army Corps of Engineers known as the Technology for Infrastructure, Geospatial, and Environmental Requirements contract.
The government alleged that, between Sept. 12, 2007, and Oct. 4, 2011, EyakTek’s then-director of contracts, Harold Babb, accepted kickbacks from several subcontractors of EyakTek and ESL in return for using his position to direct subcontracts to them. EyakTek and ESL allegedly submitted invoices to the Army Corps that included charges for work that was never performed by the subcontractors and lacked internal controls to detect the improper charges.
In March 2012, Babb pleaded guilty to bribery and kickback charges. The U.S. District Court for the District of Columbia sentenced him to serve 87 months in prison, to be followed by 36 months of supervised release and more than $9 million in restitution for his role in the kickback scheme.
The Army Corps stopped payments to EyakTek and ESL when the alleged scheme came to light. As part of the settlement, EyakTek and ESL will withdraw any appeals seeking the return of those funds, and relinquish all rights to any payments that have been withheld.
“This settlement demonstrates our willingness to use every tool of civil and criminal law in our arsenal to defend the American taxpayer from corruption in contracting,” said U.S. Attorney Ronald C. Machen Jr. for the District of Columbia. “The criminal investigation into this wide-ranging bribery and kickback scheme has now resulted in the convictions of 20 individuals, including EyakTek’s former contracts director. We have aggressively pursued asset forfeitures in the criminal proceedings to make the taxpayer whole and to deprive wrongdoers of their ill-gotten gains. This civil settlement sends a message to contractors who try to cheat in the competition for government funds.”
“This is yet another prime example of our commitment, along with other fellow law enforcement agencies to hold people and companies accountable for each and every detail of their contracts with the U.S. government and the U.S. Army,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “Our agents will continue to aggressively investigate and identify any potential abuses that arise in regard to the contracting process.”
“Manipulations of the Department of Defense procurement process will not be tolerated,” said Special Agent in Charge Robert Craig for the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “Today’s settlement demonstrates the commitment by DCIS and its partner agencies to hold accountable companies who attempt to bypass federal contracting laws.”
Today’s settlement is the result of a coordinated effort among the department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, the U.S. Army Corps of Engineers, DCIS, the Defense Contract Audit Agency, the Army’s Major Procurement Fraud Unit and the Small Business Administration.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Federal Contractors Eyak Technology LLC and Eyak Services LLC Resolve False Claims Act and Anti-Kickback Act AllegationsClaims Were Submitted to the U.S. Army Corps of EngineersRead the Press Release
WASHINGTON – Alaska and Virginia-based technology contractors Eyak Technology LLC (EyakTek) and Eyak Services LLC (ESL) have agreed to pay $2.5 million and relinquish any rights to additional payments from the United States to resolve allegations that they submitted false claims to the U.S. Army Corps of Engineers, the Justice Department announced today.
EyakTek and its sister company, ESL, provide healthcare, information technology, communications and infrastructure services to the U.S. government. Both are subsidiaries of The Eyak Corporation, headquartered in Anchorage, Alaska.
“This settlement demonstrates our willingness to use every tool of civil and criminal law in our arsenal to defend the American taxpayer from corruption in contracting,” said U.S. Attorney Ronald C. Machen Jr. “The criminal investigation into this wide-ranging bribery and kickback scheme has now resulted in the convictions of 20 individuals, including EyakTek’s former contracts director. We have aggressively pursued asset forfeitures in the criminal proceedings to make the taxpayer whole and to deprive wrongdoers of their ill-gotten gains. This civil settlement sends a message to contractors who try to cheat in the competition for government funds.”
“Federal government contractors and their employees must adhere to high standards in their dealings with the government,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We will vigorously pursue those who pay kickbacks or otherwise engage in conduct that undermines the integrity of the contracting process.”
From 2005 to 2011, EyakTek held a $1 billion prime contract with the U.S. Army Corps of Engineers known as the Technology for Infrastructure, Geospatial, and Environmental Requirements contract.
The government alleged that, between Sept. 12, 2007, and Oct. 4, 2011, EyakTek’s then-director of contracts, Harold Babb, accepted kickbacks from several subcontractors of EyakTek and ESL in return for using his position to direct subcontracts to them. EyakTek and ESL allegedly submitted invoices to the Army Corps that included charges for work that was never performed by the subcontractors and lacked internal controls to detect the improper charges.
In March 2012, Babb pled guilty in the U.S. District Court for the District of Columbia to bribery and kickback charges. He later was sentenced by the Honorable Emmet G. Sullivan to 87 months in prison, to be followed by 36 months of supervised release and more than $9 million in restitution for his role in the kickback scheme.
The Army Corps stopped payments to EyakTek and ESL when the alleged scheme came to light. As part of the settlement, EyakTek and ESL will withdraw any appeals seeking the return of those funds, and relinquish all rights to any payments that have been withheld.
“This is yet another prime example of our commitment, along with other fellow law enforcement agencies to hold people and companies accountable for each and every detail of their contracts with the U.S. government and the U.S. Army,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “Our agents will continue to aggressively investigate and identify any potential abuses that arise in regard to the contracting process.”
“Manipulations of the Department of Defense procurement process will not be tolerated,” said Special Agent in Charge Robert Craig for the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “Today’s settlement demonstrates the commitment by DCIS and its partner agencies to hold accountable companies who attempt to bypass federal contracting laws.”
Today’s settlement is the result of a coordinated effort among the department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, the U.S. Army Corps of Engineers, DCIS, the Defense Contract Audit Agency, the Army’s Major Procurement Fraud Unit and the Small Business Administration.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
14-276Essex County, New Jersey, Man Pleads Guilty in Multimillion-Dollar Real Estate Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man today admitted his role in a real estate investment scheme that bilked victims out of more than $5 million, U.S. Attorney Paul J. Fishman announced today.
Abbe Edelman, 50, of Livingston, New Jersey, pleaded guilty before U.S. District Judge Susan Wigenton in Newark federal court to an information charging him with wire fraud.
According to documents filed in this case and statements made in court: Beginning in 2004, Edelman operated through several companies alleged to be in the business of buying and selling real estate. He allegedly engaged in a real estate investment fraud in which he obtained millions of dollars from victims who invested in his scheme. Edelman told investors that he had significant past real estate experience, including a purported history of successfully buying and selling numerous bank-foreclosed properties, and an MBA degree from NYU in real estate finance. Edelman claimed that he had long-standing relationships with banks that provided him with unique access to purchase foreclosed properties below market prices and, in fact, already had negotiated with the banks to purchase certain properties at agreed-upon prices that would guarantee an easy resale and profit for investors.
Edelman promised investors that any investment would be used solely for the purchase and renovation of specific investment properties in, among other places, New York, New Jersey, California, and Florida. Edelman represented to his investors that he could obtain extraordinary returns – as much as 25 percent – in as little as eight to 12 months. Edelman allegedly told some victims he had received from other investors, including professional athletes and celebrities, the majority of the capital needed to purchase the investment properties. He also said he provided cash deposits to the financial institutions to secure the right to purchase the investment properties and invested his own money in the deals.
In reality, neither Edelman nor any of his real estate companies had a history of purchasing any bank-foreclosed properties. Edelman also did not possess even an undergraduate degree. He did not have any deals lined up involving any investment properties, did not have his own money invested in any such deals, and did not have any money from celebrity investors. Edelman induced investors to give him $4 million and used little, if any, of it to fund any real estate acquisitions or renovations, instead diverting the funds for his own use.
He allegedly used the funds for his home mortgage and day-to-day living expenses, such as restaurants, telephone, and gas bills, purchased merchandise from high-end retailers, such as Gucci and Neiman Marcus, repaid existing investors in Ponzi-scheme fashion and paid his legal expenses in connection with victims seeking repayment of their investment.
When investors later inquired about the status of their investments, Edelman offered additional misrepresentations, including emails sent from a fake email account he had created, falsely assuring investors that he and his company had closed on the foreclosed properties, sometimes telling them buyers for the properties already had been identified.
In some cases, to allow the scheme to continue undetected, Edelman made “lulling” payments to investors, ranging from $100 to tens of thousands of dollars, to permit the scheme to continue. When payments were made to any investors, Edelman generally represented that the money was from the sale of investment properties, when, in fact, it came from a new investor.
The wire fraud count to which he pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 23, 2015.
U.S. Attorney Fishman credited criminal investigators with the U.S. Attorney’s Office and postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s arrest.
Today’s plea 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. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky and Lakshmi Srinivasan Herman of the Economic Crimes Unit, and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
14-441Defense Counsel: William Rush Esq., Wayne, N.J.
Edelman, Abbe Information
Erie Man Sentenced to More Than 8 Years in Prison for Unlawfully Possessing A Firearm as A Convicted FelonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 43-year-old Erie, Pennsylvania resident was sentenced today in Scranton by Senior U.S. District Court Judge James M. Munley to serve 100 months in federal prison for unlawfully possessing a firearm and ammunition as a convicted felon.
According to United States Attorney Peter Smith, the defendant, James Presley, previously admitted to possessing a 9mm handgun and ammunition while driving a vehicle on Interstate 80 near Hazleton on May 15, 2014. At the time he possessed the firearm and ammunition, Presley had prior felony convictions, including a conviction for murder in 1992 in Philadelphia. Presley served 13 years in prison for the murder.
Presley was charged in an Information filed by the United States Attorney on July 15, 2014, as a result of an investigation by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pennsylvania State Police.
Judge Munley also ordered Presley to spend two years on supervised release following his prison sentence, and to pay a $100 special assessment.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Eastern District of New York U.S. Attorney’s Office Joins in Collections of over $5.3 Billion in Civil and Criminal Actions and Asset Forfeiture in Fiscal Year 2014Read the Press Release
U.S. Attorney Loretta E. Lynch announced today that the Eastern District of New York, working collaboratively with other offices as well as on its own, collected over $5.3 billion in criminal and civil actions in Fiscal Year 2014. Of this total amount, $5,311,230,858.40 resulted from cases handled in conjunction with other U.S. Attorneys’ Offices and components of the Department of Justice. Collections from criminal and civil actions filed solely by the Eastern District of New York totaled $42,505,272.81.
In addition, working with partner agencies and divisions within the Department of Justice, the Eastern District forfeited another $39,521,538.00 in assets tainted by crime. Of this amount, $28,475,720 was forfeited in criminal cases and matters, and $11,045,818 was forfeited in civil cases and matters. Forfeited assets are deposited into the Department of Justice Assets Forfeiture and the Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. The combined joint collections and asset forfeiture recoveries for the Eastern District total over $5.35 billion, which exceeds the $2.91 billion operating budget for U.S. Attorney’s Office nationwide.
Attorney General Eric Holder announced on November 19, 2014, that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ Offices and the main litigating divisions in that same period.
“The Eastern District of New York, in partnership with its colleagues in offices throughout the nation, is privileged to be part of a sweeping effort to address the harms caused by the financial crisis of 2008 and a multi-billion dollar resolution that includes provisions for relief to struggling and underwater homeowners as they seek to rebuild their lives and communities,” stated U.S. Attorney Lynch. “We stand firm in our ongoing collection and asset forfeiture efforts to protecting the public and recovering funds for the federal treasury and victims of crime and financial frauds.”
FY 2014 Collection Highlights
Financial Fraud
This past year, as part of President Obama’s Financial Fraud Residential Mortgage Backed Securities (RMBS) Working Group, and working with colleagues in the District of Colorado, the Eastern District of New York collected $ 4.2 billion in civil penalties from Citigroup, Inc., the largest penalty ever under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), to resolve claims related to Citigroup’s conduct in the packaging, securitization, marketing, sale and issuance of RMBS prior to January 2009. Citigroup acknowledged it made serious misrepresentations to the public, including the investing public, about the mortgage loans it securitized in RMBS. In addition to paying the historic penalty of $4.2 billion, Citigroup agreed to pay out $2.5 billion to provide relief to consumers in the form of loan modifications for underwater homeowners, refinancing for distressed borrowers, down payment and closing cost assistance to homebuyers, donations to organizations assisting communities in redevelopment and affordable rental housing for low-income families in high-cost areas.
Health Care Fraud
Working with the Department’s Civil Frauds Branch, the Eastern District of New York recovered $3,510,245.94 to resolve claims under the federal False Claims Act and New York False Claims Act against Enzo Biochem., Inc., and one of its subsidiaries, Enzo Clinical Laboratories. The settlement resolves allegations that Enzo was falsifying information in the claim submission process in order to inflate and secure reimbursements from the Centers for Medicare & Medicaid Services (“CMS”).
Collections Overview
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
In the Eastern District of New York as well as nationwide, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Eagle Butte Man Sentenced for Assault by Striking, Beating, and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on December 8, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Diego Ramon Lara, age 22, was sentenced to 1 year in custody, 1 year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
Lara was indicted for Assault with a Dangerous Weapon on August 19, 2014. He pled guilty to Assault by Striking, Beating, and Wounding on November 13, 2014.
The conviction arose from an incident on May 24, 2014, when Lara got into a verbal argument with attendees at a graduation party in Cherry Creek. Lara left the party, but returned to the area later that evening in his pickup. He stopped at an intersection in front of the party attendees, and after exchanging words and gestures with the victim, he put his pickup in gear, hit the accelerator and struck the victim, injuring his leg and ankle.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Lara was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Drug Runner Sentenced to 18 YearsRead the Press Release
TOPEKA, KAN. – A driver stopped in western Kansas with more than five pounds of methamphetamine was sentenced Monday to 18 years in federal prison.
Javier Vega, 38, Los Angeles, Calif., pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, he admitted that on April 27, 2013, he was stopped by the Kansas Highway Patrol while driving a 2005 Jeep Grand Cherokee on I-70 in Russell County, Kan. Troopers found more than five kilograms of methamphetamine hidden in a false battery in the engine compartment.
During a jury trial for Vega’s co-defendants, prosecutors presented evidence that after Vega was arrested he made phone calls from jail in which he gave another conspirator detailed instructions on how to transport methamphetamine from Los Angeles to Kansas City without getting caught.
Co-defendants include:
Karmin Salazar, who was sentenced to 10 years in federal prison.
Raymond Alcorta, who is set for sentencing Feb. 9.
Adrienne Lopez, who is set for sentencing Feb. 9.
Angela Marie Lopez, who is set for sentencing Feb. 9.
Grissom commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Tony Mattivi for their work on the case.
Drug Dealer Convicted AgainRead the Press Release
PITTSBURGH - A convicted drug dealer pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Frank Louis Ober, III, 34, pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on or about Sept. 9, 2014, Ober possessed with the intent to distribute approximately 14 pounds of marijuana, a Schedule I controlled substance. Ober had been released from federal prison shortly before his new arrest as a result of previously possessing more than two kilograms of cocaine with the intent to distribute it.
Judge Conti placed Ober on Electronic Home Monitoring (house arrest) pending the sentencing scheduled for July 31, 2015, at 11 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Munhall Police Department conducted the investigation that led to the prosecution of Frank Louis Ober, III.
District Man Found Guilty of 1997 Murder of Woman in Northwest WashingtonDNA Linked Defendant to CrimeRead the Press Release
WASHINGTON – John F. General, 50, formerly of Washington, D.C., was found guilty by a jury today of second-degree murder for the 1997 murder of a woman in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for Feb. 27, 2015.
According to the government’s evidence, on the morning of Nov. 26, 1997, the partially clothed body of the victim, Deborah McKinney, was discovered in a stairwell of an apartment building in the 900 block of M Street NW. The District of Columbia’s Office of the Chief Medical Examiner determined that Ms. McKinney, 38, was killed by means of asphyxiation.
Although there were no eyewitnesses to this murder, the government’s evidence showed that Ms. McKinney encountered the defendant and that a violent encounter ensued.
General was identified as a suspect in January 2010 through the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. General’s DNA was in the system as a result of an earlier conviction in a case in the District of Columbia. DNA testing confirmed that his blood and semen were on the scene of Ms. McKinney’s attack.
He was arrested in May of 2010 and is in custody pending his sentencing.
This case is among a series of successful prosecutions of older homicide cases following investigations by the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office. Working with the MPD and other law enforcement partners, the U.S. Attorney’s Office has a specially designated Cold Case Unit that prosecutes these older cases. All told, more than 20 defendants have been convicted of older homicides since 2009.
In announcing the verdict, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the District of Columbia’s Office of the Chief Medical Examiner and the District of Columbia Department of Forensic Services. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Amanda Haines; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Litigation Technology Specialist Leif Hickling; Paralegal Specialists Sandra Lane, Mia Beamon, and Paralegal Specialists Jason Manuel and Benjamin Kagan-Guthrie, and Victim/Witness Security Specialists David Foster and Katina Adams.
Finally, he commended the work of Assistant U.S. Attorneys Sharon Donovan and Adrienne Dedjinou, who prosecuted the case.
14-277Czar Entertainment Founder James Rosemond Convicted in Manhattan Federal Court for Ordering the Murder of Lowell FletcherRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAMES ROSEMOND, a/k/a “Jimmy the Henchman,” was found guilty on December 11 of murder-for-hire, conspiracy to murder-for-hire, and firearms offenses for ordering the murder of Lowell Fletcher. The jury convicted ROSEMOND on all counts in the controlling indictment following a two-week re-trial before U.S. District Judge Colleen McMahon.
According to court papers and the evidence admitted at trial:
JAMES ROSEMOND was the founder of Czar Entertainment, a rap music management company, and also the head of a large-scale cocaine trafficking organization. In 2007, members and associates of a rival rap group known as “G-Unit” – including Marvin Bernard, a/k/a “Tony Yayo,” and his associate Lowell Fletcher, a/k/a “Lodi Mac” – assaulted ROSEMOND’s son. ROSEMOND’s son was not seriously injured in the assault, and Fletcher ended up serving prison time for his involvement in the assault. Nevertheless, ROSEMOND recruited a crew of men to murder Fletcher upon his release from prison by promising the men at least $30,000 in payment for killing Fletcher. ROSEMOND had developed criminal relationships with these men through his involvement in the cocaine trade. At ROSEMOND’s direction, members of the murder crew selected a dark and quiet location for the murder in the vicinity of Mount Eden and Jerome Avenues in the Bronx, and lured Fletcher to that spot. When Fletcher arrived there in the evening on September 27, 2009, a member of the murder crew stepped out of the shadows and fired five bullets into Fletcher’s back using a .22 caliber handgun with a silencer. Fletcher died later that night. On October 2, 2009, ROSEMOND had a trusted employee of his cocaine organization provide a kilogram of cocaine – worth about $30,000 in street value – as payment for the murder.
At the conclusion of ROSEMOND’s first trial earlier in 2014, a mistrial was declared because the jury was not able to reach a unanimous verdict on the counts against ROSEMOND and a co-defendant relating to the Fletcher murder. ROSEMOND’s co-defendant in that trial, Rodney Johnson, was convicted of narcotics and firearms counts, and is scheduled to be sentenced in January 2015 before Judge McMahon. ROSEMOND was retried on the murder-for-hire, conspiracy to murder-for-hire, and firearms offenses, resulting in yesterday’s conviction on all the counts against ROSEMOND arising from the Fletcher murder.
For his role in ordering, planning, and paying for the murder of Lowell Fletcher, ROSEMOND was convicted of one count of substantive murder-for-hire, one count of conspiracy to murder-for-hire, and two firearms counts. ROSEMOND faces a mandatory minimum sentence of life in prison. ROSEMOND is scheduled to be sentenced in March 2015 before Judge McMahon.
U.S. Attorney Bharara thanked and praised the U.S. Drug Enforcement Administration, the New York City Police Department, the U.S. Department of Homeland Security, and the U.S. Marshals Service for their outstanding work in this investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. The trial was conducted by Assistant U.S. Attorneys Samson Enzer and Ryan P. Poscablo.
Costa Rican Woman Sentenced to Prison for Role in Human Smuggling ConspiracyRead the Press Release
A citizen and resident of Costa Rica was sentenced Friday to 30 months in prison for her leadership role in a conspiracy to smuggle undocumented migrants to the United States.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE- HSI) Washington, D.C., Field Office made the announcement. U.S. District Judge Ursula M. Ungaro of the Southern District of Florida imposed the sentence.
Mercedes Morera Roche, 49, of Costa Rica, was extradited to the United States from Panama on Aug. 21, 2014, to face human smuggling charges. Roche pleaded guilty on Oct. 6, 2014, to conspiracy to smuggle more than 25 undocumented migrants from Cuba to the United States.
According to her plea agreement, Roche admitted that between 2004 and 2011, she was an organizer of a human smuggling network that provided instructions, fraudulent identity and travel documents, escorts, transport, safe house locations, and other assistance to facilitate the illicit travel of undocumented migrants to the United States. Roche admitted that in some cases, she provided fraudulent passports so that undocumented migrants could fly to the United States with the help of corrupt foreign airline and immigration officials. Roche directed the migrants to destroy the fraudulent documents during the flights to the United States, and instructed the migrants about what to do and say to U.S. immigration authorities upon landing. In other cases, Roche coordinated the smuggling of undocumented migrants over land routes through Latin America and Mexico into the United States. Roche solicited payments of up to $10,000 for each undocumented migrant.
The investigation was pursued under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates with and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The investigation was conducted by ICE- HSI’s Washington, D.C. Field Office with support from the Human Smuggling Trafficking Center and U.S. Customs and Border Protection’s National Targeting Center. Critical assistance was also provided by HSI’s Miami Field Office and the ICE Attaché Office in Panama. Extradition assistance was provided by the Criminal Division’s Office of International Affairs, INTERPOL Washington and the United States Marshals Service. The Justice Department is grateful for the significant assistance provided by the Panamanian Ministry of Foreign Affairs. This case was prosecuted by Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Robert Emery of the Southern District of Florida.
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.
Corporation Sentenced for Safety Violations That Caused Employee DeathRead the Press Release
MISSOULA – A Montana corporation specializing in residential and commercial asphalt paving services was sentenced today for violating of a safety standard that caused the death of one of its employees. MR Asphalt and its President, Martin Romano, were sentenced to three years’ probation and $7,500 in fines. In addition, $12,500 was ordered to the victim’s spouse.
Assistant U.S. Attorney Kris McLean told the court that on September 13, 2012, the MR Asphalt employee was checking the asphalt tank located thirteen (13) feet from ground level. Another employee found the victim lying face down on the ground next to the asphalt tank. Police reports and medical records confirm the victim’s death was consistent with a fall from the asphalt tank. The investigation specifically noted the lack of guardrails or handrails on the asphalt tank, as well as the absence of any type of personal fall protection on the victim’s body.
After the incident, Martin Romano met with MR Asphalt employees and asked them to falsify safety records, specifically to back date records of safety meetings that did not occur. In addition, a safety harness and lanyard were placed in the control shack after the incident, and Romano told others that the equipment was always present at the worksite. The investigation revealed that no one had ever been trained or certified in fall protection or fall arrest systems, or that safety equipment was ever available prior to the fatal fall.
“Although nothing will restore the victim to family and loved ones, prosecution of the case by the U.S. Attorney’s Office, and the defendant's plea of guilty, will send a clear message that no employee’s life should be sacrificed for a day’s wages,” said Gregory Baxter, Regional Administrator for OSHA’s Region VIII Office in Denver.
The case was investigated by the Occupational Safety and Health Administration.
Convicted Ponzi Schemer Eliyahu Weinstein Sentenced to Additional 24 Months in Prison on New Fraud and Money Laundering ChargesRead the Press Release
Already Serving 22 Years for Previous Fraud Scheme
TRENTON, N.J. – A man already serving 22 years in prison for a real estate Ponzi scheme was sentenced today to an additional 24 months in prison for defrauding investors in connection with the Facebook IPO and several additional real estate deals and laundering the proceeds of the scheme, U.S. Attorney Paul J. Fishman announced.
Eliyahu Weinstein, 39, of Lakewood, New Jersey, was previously sentenced to 22 years in prison for running a real estate investment fraud scheme that caused $200 million in losses. Today, U.S. District Judge Joel A. Pisano sentenced Weinstein to 135 months in prison, 111 months of which will be served concurrently with his previous sentence and 24 months to be served consecutively. His total sentence for the two schemes is 24 years in prison. Weinstein previously pleaded guilty before Judge Pisano to an indictment charging him with one count of conspiracy to commit wire fraud, one count of committing wire fraud while on pretrial release, and one count of money laundering.
According to documents filed in this case and statements made in court:
In February 2012, Weinstein and his fellow conspirators offered a pair of investors (referred to in the indictment as the “Facebook victims”) the opportunity to purchase large blocks of Facebook shares prior to the company’s initial public offering, or IPO, in May 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get and were expected to increase in value at the time of the IPO. Weinstein and his conspirators did not actually have access to the shares.
Based on misrepresentations by Weinstein and his conspirators, the Facebook victims wired millions of dollars between February and March of 2012 to an account that Weinstein and a conspirator controlled. Weinstein and another conspirator provided investors with false documents showing companies owned by various conspirators held assets, which would secure the Facebook victims’ investment.
The conspirators did not use any of the Facebook victims’ money to purchase Facebook shares, instead misappropriating it for their own use. Weinstein used some of the money to pay lawyers and experts representing him in his earlier – and at that time, still pending – criminal case and in related civil matters. Weinstein and his conspirators also used the Facebook victims’ money to make investments in businesses unrelated to Facebook and to make loans for their own benefit.
Around the same time, Weinstein and his conspirators also persuaded the Facebook victims to invest in the purported purchase of an apartment complex, “Belle Glade Gardens,” in Florida. They told the Facebook victims that Weinstein had the opportunity to purchase Belle Glade Gardens at a discounted price and immediately flip it at a substantial profit. Weinstein and his conspirators further told the Facebook victims that Weinstein had already placed $2.5 million in the trust account of a Miami law firm for the transaction; that if the Facebook victims contributed another $2.5 million toward the transaction, those funds would remain in escrow at the Miami law firm until the deal closed; and that the Facebook victims would be repaid within 60 days. The Facebook victims wired $2.83 million to the Miami law firm in order to complete the Belle Glades Gardens transaction. Weinstein and his conspirators did not use the money to purchase Belle Glades Gardens. Instead, they redirected the money from the law firm to accounts that they controlled, returned $1.8 million to the Facebook victims as a purported return on their Facebook investment, and used the remaining money for their own purposes.
In July 2012, Weinstein approached another group of investor victims (referred to in the indictment as the “Florida condominium victims”) and told them he had the opportunity to purchase the notes on seven condominiums in Florida at a discounted price of $3 million. Weinstein and his conspirators falsely represented that they had already paid $1.5 million toward the deal, and that they needed only $1.5 million to complete the transaction. They claimed that the properties had an annual rental income of approximately $780,000 and provided to the Florida condominium victims fraudulent documentation purporting to verify this fact. The victims transferred $1.5 million to Weinstein and his conspirators between August 2012 and December 2012. Weinstein did not use this money to purchase the notes on the Florida condominiums – many of which he himself had previously owned and lost to foreclosure. Instead, Weinstein and his conspirators converted the money to their own use.
Throughout the scheme, Weinstein was already under indictment and on pretrial release, and was prohibited from engaging in any monetary transaction for more than $1,000 without the approval of court-appointed special counsel. Weinstein pleaded guilty on Jan. 3, 2013, before Judge Pisano to two counts of that indictment, admitting he ran a Ponzi-style real estate investment fraud scheme that caused $200 million in losses and then laundered the proceeds of the scheme. Judge Pisano sentenced Weinstein on Feb. 25, 2014, to 264 months in prison and ordered him to pay more than $200 million in restitution and forfeiture to the victims of his scheme.
In addition to the prison term, Judge Pisano today ordered Weinstein to pay $6.2 million restitution and forfeiture.
Two co-defendants, Alex Schleider, 49, of Lakewood, and Aaron Glucksman, 41, of Brooklyn, New York, have already pleaded guilty to charges related to the scheme. On Dec.8, 2014, Judge Pisano sentenced Schleider to serve on year and one day in prison, three years of supervised release, and ordered him to pay restitution of $613,200 and forfeiture of $363,200. Judge Pisano sentenced Glucksman on May 5, 2014, to 52 months in prison, three years of supervised release, and ordered him to forfeit $1.2 million. Judge Pisano ordered Glucksman’s sentence to run partially concurrently with a 36-month sentence recently imposed by U.S. District Judge Raymond J. Dearie of the Eastern District of New York in an unrelated case.
Charges against another conspirator, Aaron Muschel, 64, of Brooklyn, NY, who was charged in the criminal complaint filed against Weinstein and Schleider in May 2013, remain pending. The charges against him are merely accusations and he is presumed innocent until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Aaron T. Ford in Newark, for the investigation leading to today’s sentencing. He also thanked special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for their role in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig; Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit; Assistant U.S. Attorneys Zach Intrater of the Economic Crimes Unit; and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack 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. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
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Defense counsel: Eric Creizman Esq., New YorkChief Financial Officer of Pain Management Clinics Admits to Receiving $459,245 in KickbacksRead the Press Release
Negotiated a Deal to Submit Patients’ Urine Samples to a Testing Lab That Paid Over $1.3 Million in Kickbacks to His Employer
Baltimore, Maryland – Vic Wadhwa, age 38, of Frederick, Maryland, pleaded guilty today to soliciting and receiving kickbacks in return for referrals at lab tests from a medical practice.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to his plea agreement, Wadhwa was the chief financial officer of a group of pain management clinics located in central Maryland. The group’s clinics required its patients who have been prescribed pain relief medications to submit urine samples for testing in order to monitor the levels of pain medication or other narcotics in their bodies. The group’s clinics generated hundreds of urine samples each month, which were sent to an outside lab for testing.
In March 2011, Wadhwa and others at the group’s clinics decided to shift the group’s testing business to a laboratory testing company in New Jersey, after learning that the lab testing company was willing to pay a kickback for every urine sample that the group of clinics submitted for testing. Wadhwa negotiated the arrangement, whereby the lab company promised to pay kickbacks equal to half of its profit, after accounting for expenses, for every urine sample that the group of clinics submitted for testing.
The group of clinics submitted urine samples for testing to the lab company from approximately March 2011 to August 2012. During this time, the lab company received total reimbursement payments of $4,033.846.70 from private insurers, Medicare and the Federal Employees Health Benefit Program for lab tests ordered by the group of clinics.
Between the time the kickback payments commenced in July 2011 and the end of the scheme in July 2012, the lab company paid the group of clinics a total of $1,376,540.85 in kickbacks. Out of this amount, Wadhwa received approximately $459,245.
The investigation is ongoing.
Wadhwa faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge Marvin J. Garbis has scheduled sentencing for April 2, 2015 at 2:30 p.m.
United States Attorney Rod J. Rosenstein commended the FBI and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jefferson M. Gray and Sean R. Delaney, who are prosecuting the case.
Charles Town, WV Man Convicted of Heroin TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Steven Woodward, 34, of Charles Town, West Virginia, was convicted on heroin trafficking charges, United States Attorney William J. Ihlenfeld, II, announced today.
Woodward was discovered in possession of heroin in May 2014 during an investigation by the Jefferson County Sheriff’s Office and the U.S. Drug Enforcement Administration. He pled guilty to one count of “Possession with Intent to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000.00.
In another matter, Larry Franklin Gregory, 39, of Delray, West Virginia, pled guilty to one count of “Distribution of Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. Gregory was discovered selling methamphetamine in January 2013 during an investigation by the Potomac Highlands Drug and Violent Crime Task Force.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Paul Camilletti is prosecuting Woodward and Assistant United States Attorney Jarod Douglas is prosecuting Gregory on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Canadian Man Pleads Guilty to Conspiracy to Distribute Approximately 20 Kilograms of CocaineRead the Press Release
FRESNO, Calif. —Donald Lancer, 47, of Saskatchewan, Canada, pleaded guilty today to conspiracy to distribute and possess to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 17, 2013, Heather Lynn Necheff, 47, of Regina, Saskatchewan Canada, was stopped for a traffic violation by a California Highway Patrol officer in Kern County in the Buttonwillow area. While conducting a search of her vehicle, officers found approximately 20 kilograms of cocaine wrapped in duct taped packages inside a suitcase. Necheff said she was transporting the suitcase from Los Angeles to Seattle to be given to Donald Lancer. Necheff agreed to assist law enforcement by continuing on to Seattle to deliver the suitcase. To eliminate the risk of losing the suspected drugs, agents replaced them with 20 kilograms of “sham” cocaine. On December 19, 2013, under agents’ supervision, Necheff delivered the suitcase to Lancer. Lancer was subsequently stopped while driving a semi-truck in Seattle, Washington. Officers found the suitcase delivered by Necheff. Lancer admitted that he believed it contained narcotics and that he received it from another person who transported it to him from Southern California.
According to his plea agreement, Lancer also admitted that he had earlier agreed with an individual in Canada to become a commercial truck driver and to comingle narcotics within legitimate commercial loads. Lancer stated that on this particular trip he was paid by individual in Canada to pick up narcotics in Seattle and drive them into Canada. Lancer said this was the third time that he was to transport what he knew to be narcotics into Canada from the United States and that although he never opened the items that he commingled with his legitimate loads, he knew the packages contained narcotics.
This case is the product of an investigation by the Drug Enforcement Administration and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Necheff pleaded guilty on April 29, 2014, to the conspiracy and on July 21, 2014, was sentenced to 13 months in prison.
Lancer is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on March 2, 2015. Lancer faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will 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.
- CBP Officer Arrested for Allowing Drugs Through Port of Entry
Burlington, Vermont’s Redstone, Owner of Chace Mill, Takes Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that Redstone of Burlington, Vermont, has completed specific modifications at the Chace Mill, also in Burlington, Vermont, to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following receipt of a complaint regarding the accessibility of the Chace Mill.
An onsite survey of the Chace Mill revealed ADA compliance issues related to the building’s entrances, parking lot, and internal ramps. Redstone, the owner of the Chace Mill has remedied these issues by reconfiguring the parking areas, installing automatic door openers and ADA compliant ramps. Redstone is to be commended for its cooperation with the Office of the United States Attorney for the District of Vermont.
Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.
Buffalo Woman Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Fannie Long, 53, of Buffalo, NY, pleaded guilty to conspiracy to distribute fentanyl before Chief U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between January 2009 and September 26, 2013, the defendant conspired with co-defendant Sherylrica Quisenberry to distribute controlled substances. Long obtained fentanyl prescriptions from medical professionals which were then filled and sold by the defendant. In addition, Long obtained fraudulent prescriptions which were not written by medical professionals. The prescriptions were made out in the names of individuals engaged by the defendant. These individuals would fill the fraudulent prescriptions and then turn the controlled substances over to Long for further distribution. The controlled substances included Lortab, Xanax and Soma.
Similar charges are pending against Sherylrica Quisenberry. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office.
Sentencing is scheduled for April 15, 2015 at 9:00 a.m. before Judge Skretny.
Buffalo Man Pleads Guilty to Marijuana ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Charles Palmer, Jr. 31, of Buffalo, NY, pleaded guilty to possession with intent to distribute, and to distribute, marijuana before Chief U. S. District Judge William M. Skretny. The charge carries a maximum penalty of five years in prison.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between January 2011 and June 2011, the defendant conspired with his father, co-defendant Charles Palmer, Sr., to possess and distribute marijuana. The investigation utilized a court authorized wiretap which included multiple phone calls regarding the distribution of marijuana between Charles Palmer, Jr. and Charles Palmer, Sr.
The defendant was arrested on June 17, 2011. Law enforcement officers seized from his person quantities of marijuana and cocaine.
Charges against Charles Palmer, Sr. are pending. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by the Federal Bureau of Investigation.
Sentencing is scheduled for April 8, 2015 at 9:00 a.m. before Judge Skretny.
Bradenton Man Sentenced to 15 Years for Attempting to Meet A Minor for SexRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth Kovachevich has sentenced Erasmo Aguinaga (36, Bradenton) to 15 years in federal prison for attempted child enticement. A federal jury found him guilty on September 19, 2014.
According to evidence presented during the trial, on March 23, 2014, Aguinaga communicated online with an individual he believed was a 14-year-old girl, but who was actually an undercover agent. The agent was conducting an undercover investigation to identify and apprehend individuals who were attempting to sexually exploit children over the Internet. After having chatted online with the “child” for less than an hour, Aguinaga inquired about the “child’s” sexual history and used graphic and explicit language to ask if the “child” would engage in sexual acts with him. Later that same day, Aguinaga asked for the “child’s” address and drove to her purported home, where he was immediately arrested.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Boy Scout Leader Charged with Child PornographyRead the Press Release
BOSTON – A Boy Scout leader and YMCA employee was charged today with possessing child pornography.
Patrick Lynch, 22, of Peabody, was arrested on Dec. 12, 2014, and made his initial appearance today in U.S. District Court in Boston on charges that he received and possessed child pornography.
The criminal complaint alleges that Lynch received emails containing child pornography beginning in May 2013. An investigation by Homeland Security Investigations revealed that Lynch was affiliated with the Boy Scouts, including a position as a Scout leader at the Philmont Training Center for the Boy Scouts of America. Lynch had also been employed at the Greater Beverly YMCA and had recently begun employment with Beanstalk Adventure Ropes Course in Reading.
The charge of receipt of child pornography provides for a mandatory minimum term of five years and no greater than 20 years in prison. The charge of possession of child pornography provides for no greater than 20 years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by the Massachusetts State Police and the Peabody Police Department. The case was prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.