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Monday 27 October 2014
Upper Marlboro Man Sentenced to 30 Years in Prison for Sexually Abusing A Child to Produce Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Eugene Lewandowski, age 27, of Upper Marlboro, Maryland, today to 30 years in prison followed by lifetime supervised release for sexual exploitation of a minor to produce child pornography and for transportation of child pornography. Judge Chasanow ordered that upon his release from prison, Lewandowski must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to information presented at Lewandowski’s sentencing hearing, Lewandowski took six videos of himself engaged in sexual acts with a sleeping five year old female, as well as additional videos of the child, including sexually explicit videos.
In addition, analysis of Lewandowski’s computers and other digital media revealed at least 14,000 images and videos documenting the sexual abuse of children. Lewandowski admitted using a file sharing program on his computer to distribute some of these images and videos.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore and Maryland State Police Internet Crimes Against Children Task Force for their work in the investigation, and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Union County Resident Pleads Guilty to Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn October 22, 2014, Jonathan E. Merydith, 26, of Cobden, Illinois, pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that Merydith was involved with co-defendant Rusty Smith and others in the manufacture of methamphetamine. The offense occurred between 2012 and March 2014, in Union, Williamson, and Jackson Counties. Merydith is currently being held without bond pending a February 15, 2015, sentencing hearing, at which time he will face up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000. Co-defendants Smith and Ruth Diane Wiseman have previously pled guilty and are awaiting sentencing. One co-defendant has pled not guilty and is awaiting a jury trial.
The ongoing investigation is being conducted by the Union County Sheriff’s Office, Jackson County Sheriff’s Office, Illinois State Police, Williamson County Sheriff’s Office, Marion Police Department, Carbondale Police Department, Illinois State Police Methamphetamine Response Team and Drug Enforcement Administration. The 19th Judicial District Drug Task Force (Tennessee) assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
U.S. Attorney Invites Senior Citizens to Fraud Workshop in Allen, TexasRead the Press Release
Department of Justice
Office of Public AffairsALLEN, Texas – The U.S. Attorney’s Office for the Eastern District of Texas will provide a free presentation to senior citizens on Thursday, November 20, 2014, at the Allen Public Library, announced U.S. Attorney John M. Bales.
The presentation will discuss ways to identify and prevent Medicare fraud. Seniors will be advised of common schemes used by fraudsters and given real-life examples of previous fraudulent activity. While the U.S. Attorney’s Office will not be able to advise seniors regarding their individual medical benefits or claims, seniors will be given important information on how to protect their personal information and who to contact if they suspect they are being victimized.
The event will be held from 2:00 pm to 3:00 pm on Thursday, Nov. 20, 2014, at the Allen Public Library located at 300 N. Allen Drive, Allen, Texas. While the event is free, seating is limited to approximately 40 people. To reserve a seat, or for more information, please contact Ann Williams at 972-423-3932.
U.S. Attorney Barry Grissom to Speak at Wichita State UniversityRead the Press Release
WICHITA, KAN. U.S. Attorney Barry Grissom will speak on the fifth anniversary of the Matthew Shepard and James Byrd, Jr., Hate Crime Prevention Act Wednesday, Oct. 29, at Wichita State University.
Grissom’s speech will be titled, “Protecting Our Communities Against Violence and Bigotry.” The presentation will begin at 1 p.m. in Room 209 of Hubbard Hall at Wichita State University
Five years ago, President Barack Obama signed the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act into law. Written as a response to the brutal murders of Matthew Shepard and James Byrd, Jr., the act makes it a federal crime to injure anyone because of the victim’s actual or perceived race, color, religion, national origin, sexual orientation, gender identity or disability. Grissom will talk about how the act marked a new milestone in the pursuit of the goal of equal justice for all.
The School of Community Affairs at Wichita State University is hosting the free event.
Grissom was appointed by the president and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.
Two Williamson County Residents Plead Guilty to Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn October 22, 2014, Michael A. Boyt, Sr., 42, of Marion, and Matthew S. Beers, 31, of Johnston City, pled guilty to a one-count indictment charging them with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and January 2014, in Williamson, Perry, Jackson, and Randolph Counties. Evidence at the plea hearings established that Beers and others were supplying pseudoephedrine pills to Boyt for use in the manufacture of methamphetamine. During a November 2013 traffic stop, officers located an active methamphetamine lab in Beers’ vehicle. Beers was transporting the lab for Boyt. Boyt is currently being held without bond pending a February 11, 2015, sentencing hearing. The district court allowed Beers to remain on bond pending sentencing.
The methamphetamine offense carries a penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Southern Illinois Enforcement Group, Illinois State Police/Southern Illinois Drug Task Force, Murphysboro Police Department, and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Two Inmates Sentenced in Murder Case at Terre Haute Federal Correctional FacilityRead the Press Release
Pair sentenced for their roles in murdering a fellow inmate
TERRE HAUTE – Acting United States Attorney Josh J. Minkler announced today the sentencing of two men for their roles in the murder of an inmate at the Terre Haute Federal Correctional Institute. U.S. District Judge Jane Magnus-Stinson sentenced William J. Bell, 39, to life without parole for first degree murder and Lenard Dixon, 35, was sentenced to 156 months (13 years) for one count of accessory after the fact.
“Protecting all citizens from senseless violence is important. We owe it to the employees of our federal prisons to do what we can to keep their work places as safe and secure as possible,” said Minkler.
According to evidence presented at trial, Bell entered the cell of a fellow inmate on June 18, 2011 and stabbed him to death. Bell’s cellmate, Dixon, concealed evidence of the crime, including the murder weapon.
Both Bell and Dixon had extensive criminal histories. Bell had nine prior convictions accumulated across Illinois, Arkansas, and Kansas. At the time of the murder, he was serving a nearly 8-year sentence for carjacking. Dixon had several convictions in Kansas and, at the time of the murder, was serving a 35-year sentence for robbery.
“Even those who reside in our prison system deserve a safe living environment,” said Minkler. “One person’s refusal to obey the law should not result in the end of another person’s life.”
According to Assistant United States Attorneys Will McCoskey and Matthew Brookman who prosecuted the case for the government, Dixon’s sentence will be served consecutive to his current sentence.
Topeka Man Sentenced in CarjackingRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced Monday to 70 months in federal prison on a carjacking charge, U.S. Attorney Barry Grissom said.
Shaun Lee Kendall, 29, Topeka, Kan., pleaded guilty to one count of carjacking. In his plea, Kendall admitted that on Jan. 29, 2014, he and a co-defendant threatened a driver with violence in order to steal a 1999 Dodge Dakota truck.
Co-defendant Michael Richard Wilkins is set for sentencing Dec. 15.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Three People Charged in Monroe County-Based Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the unsealing of an indictment of three Monroe County residents issued by a federal grand jury in Scranton on October 14 for participating in a conspiracy that allegedly distributed heroin between November 2011 and the date of the indictment.
According to United States Attorney Peter Smith, the grand jury alleges that Victor Tello, age 23; Jabril Greggs, age 24; and Yashmir Greggs, age 27, all of Tobyhanna, conspired with each other and with others to distribute and possess with intent to distribute heroin during a three-year time period.
The Indictment alleges that the suspects arranged to obtain heroin in New Jersey and transported it to the Monroe County area for further distribution. The indictment further alleges that the suspects communicated with each other and drug customers by cell phones.
Each defendant is also charged in separate counts with distribution and possession with intent to distribute heroin.
The indictments were sealed until today pending the defendants being taken into custody. Tello is incarcerated and is scheduled to make his initial appearance in Court on October 30. Yashmir Greggs was arrested on October 22 and is being held pending a detention hearing scheduled for October 29. Jabril Greggs surrendered on October 23 and was released on bail.
The charges stem from an investigation by special agents and task force officers of the Drug Enforcement Administration, the Pennsylvania State Police, and Pocono Mountain Regional Police.
If the defendants are convicted of the charges, they each face a possible maximum sentence of 20 years in prison.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Tampa Man Sentenced to More Than Ten Years for Tax Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Edwaldo Louis Oliveiri to 10 years and 11 months in federal prison for wire fraud and aggravated identity theft. As part of his sentence, the Court also entered a money judgment in the amount of $307,721, the proceeds obtained from the scheme. Oliveiri pleaded guilty on June 24, 2014.
According to court documents, between September 4, 2012, and September 11, 2013, Oliveiri sold marijuana and guns to an undercover officer on multiple occasions. He believed that the undercover officer worked for the Veterans Affairs hospital and solicited the officer for personal identifying information from the hospital to use as part of a tax fraud scheme. Between January 23, 2013, and September 9, 2013, Oliveiri participated in a tax fraud scheme that submitted 437 false and fraudulent tax returns to the Internal Revenue Service seeking a total of $3,511,702, and resulting in the IRS paying out $307,721.
“Today’s sentencing is the result of a successful joint law enforcement investigation to hold accountable those who use stolen veterans’ personally identifiable information to engage in identity theft,” said Special Agent in Charge Monty Stokes of the U.S. Department of Veterans Affairs Office of Inspector General - Southeast Field Office.
This case was investigated by the Internal Revenue Service; the Department of Veterans Affairs, Office of the Inspector General; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Mark E. Bini and Sara Sweeney.
- Straw Purchasing and Other Charges Sends Dallas LPR to Federal Prison
Shiprock Man Sentenced to Ten Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Gerald A. Tso, 25, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this afternoon to ten years in federal prison followed by five years of supervised release for his aggravated sexual assault conviction. Tso will be required to register as a sex offender after he completes his prison sentence.
Tso was arrested on Feb. 26, 2014, on a criminal complaint charging him with aggravated sexual abuse of a child, and subsequently was indicted on that same charge on March 26, 2014. According to court filings, Tso sexually assaulted a seven-year-old Navajo child on Feb. 26, 2014, in Shiprock, which is located within the Navajo Indian Reservation.
On July 24, 2014, Tso pleaded guilty to a felony information charging him with aggravated sexual abuse. In entering his guilty plea, Tso admitted engaging in a sexual act with a child. Tso further admitted that the child was under the age of 12 years at the time he victimized the child.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Return Preparer Sentenced in Identity Theft Tax Refund Scheme Involving Personal Identification Information of Miami-Dade County Public School StudentsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and J. Scott Dennis, Chief, North Miami Beach Police Department, announce that Donald Claude, 34, of Miramar, was sentenced to 40 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution of $210,120.
Claude previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Claude was the Chief Executive Officer of J&D Tax Services, LLC. Claude obtained an Electronic Filing Identification Number (EFIN) for J&D Tax Services, LLC which permitted Claude and co-defendant James Jean-Baptiste to file tax returns electronically in the names of other individuals. Claude also obtained a Preparer Tax Identification Number (PTIN) as a tax preparer that permitted him to identify himself as the preparer on tax returns electronically filed in the names of other individuals.
Claude and Jean-Baptiste obtained the personal identification information (PIl) of students from an employee of Miami-Dade County Public Schools. Claude and Jean-Baptiste used the students’ stolen identities to file false and fraudulent tax returns with the IRS to fraudulently obtain tax refunds for their personal use and benefit. Claude and his co-conspirators caused over $200,000 in false and fraudulent tax refund claims to be submitted to the IRS from 2009 through 2011 through his EFIN and PTIN.
James Jean-Baptiste was charged with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, seven counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and seven counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Jean-Baptiste remains at large.
Mr. Ferrer commended the investigative efforts of IRS-CI, USSS, and the North Miami Beach Police Department. The case was prosecuted by Assistant U.S. Attorney Gera R. Peoples.
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.
Queens Man Sentenced in Manhattan Federal Court to 15 Years in Prison for Conspiracy and Attempting to Provide Material Support to HizballahRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that PATRICK NAYYAR, 50, an Indian citizen who was residing illegally in the United States, was sentenced today in Manhattan federal court to 15 years in prison for crimes related to support he attempted to provide Hizballah, a designated foreign terrorist organization. NAYYAR was convicted in March 2012 after a seven-day jury trial, and he was sentenced today by U.S. District Judge Robert W. Sweet.
According to the Superseding Indictment filed in Manhattan federal court and the evidence presented at trial:
Between July 2009 and September 2009, NAYYAR and his co-conspirator, Conrad Stanisclaus Mulholland, agreed to provide weapons, ammunition, and vehicles to Hizballah, a U.S.-designated foreign terrorist organization based in Lebanon. During a series of meetings with a confidential informant working with the Federal Bureau of Investigation (“FBI”), who represented himself as able to deliver materials to Hizballah, NAYYAR and Mulholland agreed to sell guns, ammunition, vehicles, bulletproof vests, and night-vision goggles to the confidential informant. During these meetings, NAYYAR and Mulholland also provided the confidential informant with a handgun, a box of ammunition, and a pick-up truck, believing that the confidential informant would deliver the items to Hizballah in Lebanon.
NAYYAR’s co-conspirator Mulholland, 47, who is not a citizen of the U.S. and resides abroad, left the U.S. before charges were filed, and remains at large. The charges against Mulholland are pending, and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the FBI’s New York Joint Terrorism Task Force.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Sean Buckley and Stephen Ritchin are in charge of the prosecution.
Press Release by United States Attorney Relating to November 2014 ElectionsRead the Press Release
United States Attorney Deborah R. Gilg announced today that Assistant United States Attorney (AUSA) Laurie Kelly will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Kelly has been appointed to serve as the District Election Officer (DEO) for the District of Nebraska, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Gilg said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Gilg stated that AUSA/DEO Kelly will be on duty in this District while the polls are open. She can be reached by the public at the following telephone numbers: (800) 889-9124 or (402) 661-3700.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (402) 493-8688.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Gilg said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Parkersburg Woman Who Aided Heroin and Cocaine Dealer Enters Federal Guilty PleaRead the Press Release
CHARLESTON, W.Va. – A Parkersburg woman who disposed of heroin and cocaine at the direction of a drug dealer in October 2013 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Gerri Raye Parker, 30, pleaded guilty in federal court in Charleston to using a communication facility to facilitate heroin and cocaine trafficking.
On October 24, 2013, Parker received a call on her cell phone from a person she knew was a heroin and cocaine dealer. The drug dealer told her that the police were coming to search her apartment and that she needed to get rid of a bag that contained drugs and drug paraphernalia that he had hidden in the apartment. Parker put the bag in an outside trash can of a nearby vacant apartment so the drug dealer could pick it up. Police officers conducting surveillance on Parker’s residence watched her dispose of the bag and seized it before the drug dealer could retrieve it. The bag contained heroin, cocaine, and other drug paraphernalia.
Parker faces up to 4 years in federal prison when she is sentenced on February 2, 2015.
This case arose from the investigation of a heroin trafficking ring from Marion, Ohio, and Chicago, Illinois. Other individuals prosecuted and convicted in federal court as a part of this investigation include Mario Felder, Keith Irons, Cordaro Johnson, Zena Wakefield, and Daquarri Coates.
The Parkersburg Police Department along with the Parkersburg Narcotics and Violent Crimes Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiates and heroin in communities across the Southern District.
Oakdale Man Pleads Guilty to Possession of Child PornographyRead the Press Release
FRESNO, Calif. —Timothy Brian Werlhof, 24, of Oakdale, pleaded guilty today to possession of material involving the sexual exploitation of prepubescent minors, United States Attorney Benjamin B. Wagner announced.
According to court documents, Werlhof knowingly possessed pictures of children under the age of 12 involved in sexually explicit conduct. He possessed over 600 images, some of which were of vulnerable victims and sadomasochistic conduct. In addition to possessing the images, Werlhof made them available to others over the Internet.
The investigation in this case began when a MicroSD card was found in a parking lot in Oakdale and dropped off at the Oakdale Police Department. The card was found to contain child pornography. The police departments of Oakdale and Ceres determined that Werlhof was the owner by matching “selfies” contained on the card with a photograph of Werlhof on file with the Oakdale Police Department.
This case is the product of an investigation by the Federal Bureau of Investigation, the Oakdale Police Department, and the Ceres Police Department. Assistant United States Attorney Megan A. S. Richards is prosecuting the case.
Werlhof has been in custody since May 22, 2014. He is scheduled to be sentenced by United States District Judge Anthony W. Ishii on January 5, 2015. Werlhof faces a maximum statutory penalty of 20 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
November 2014 ElectionsRead the Press Release
LAS VEGAS, Nev. – Assistant U.S. Attorney (AUSA) Sarah E. Griswold will lead the efforts of the U.S. Attorney’s Office for the District of Nevada in connection with the Justice Department’s nationwide Election Day Program for the upcoming Nov. 4, 2014 general elections, announced U.S. Attorney Daniel G. Bogden. AUSA Griswold has been appointed to serve as the District Election Officer (DEO) for the District of Nevada, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Bogden said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to insure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.In order to respond to complaints of election fraud or voting rights abuses on Nov. 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Bogden stated that the U.S. Attorney’s Office, as part of the Nevada Election Integrity Task Force, will be working with the Nevada Secretary of State, the Nevada Attorney General, the Las Vegas Metropolitan Police Department, and the FBI to investigate complaints regarding questionable voter registration practices, potential voter fraud, and enforcement of laws regarding voter intimidation. On Election Day, there will be command posts in Carson City and Las Vegas staffed by members of the Task Force. Additionally, AUSA/DEO Griswold will be available while the polls are open on Nov. 4, 2014, to assist with the investigation of any complaints of election fraud or voting rights abuses, and to ensure that such complaints are directed to the appropriate authorities. AUSA Carla Higginbotham will be available in Reno to assist with any complaints in the northern Nevada area.
Law enforcement officials, election workers and citizens can file complaints in a number of ways.
1) By Completing the Election Law Violation Form on the NV Secretary of State's website, http://nvsos.gov/index.aspx?page=256;
2) By calling the NV Secretary of State at (775) 684-5705; or
3) By calling the FBI in Las Vegas at (702) 385-1281 and asking for Special Agent Michael B. Elliott.
4) Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at ;
North Carolina Man Convicted in Fraud Scheme Involving International Precious Metals InvestmentsRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Rondell Scott Hedrick (48, Lexington, N.C.) guilty of wire fraud. Hedrick faces a maximum penalty of 20 years in federal prison. He was indicted on December 18, 2013.
According to the testimony and evidence presented at trial, Hedrick used a website to advertise his expertise in several high yield international investment programs, including international gold transactions. He provided detailed information about the worldwide precious metals markets; mining operations in Mali, North Africa, and Accra, Ghana; and refinery operations in Dubai, United Arab Emirates. Hedrick made representations to investors and provided documents purportedly showing that he had legitimate relationships with international banks and businesses involved in mining and refinery operations. He also represented that, because of his stature in the precious metals markets, he was able to procure large returns on investments. Hedrick took money from investors and converted it to his own use. He also met with an FBI informant in March 2013 and made representations about his significant experience in traveling internationally to close lucrative gold trading deals. Hedrick stated that he was able to obtain gold at below market prices because he was willing to travel to dangerous locations in Africa to obtain the gold and then transport it to refineries in Dubai.
After Hedrick made these representations to the informant, he solicited a $500,000 investment. When FBI agents approached Hedrick after the meeting, Hedrick maintained his ability to close such large gold transactions in Dubai, and he continued to solicit investor funds. He also contacted legitimate refineries in Dubai, claiming to have gold from Mali and Ghana that he was capable of transporting if appropriate contracts could be consummated.
This case was investigated by the FBI, and is being prosecuted by Assistant United States Attorney A. Tysen Duva.
New Haven Man Sentenced to 57 Months in Federal Prison for Distributing CrackRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RICHARD MASON, 33, of New Haven, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 57 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force, the New Haven Police Department and the Connecticut State Police into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven. During the investigation, MASON was identified over a court-authorized wiretap conducting narcotics transactions with Donald Ogman, who has been identified in court proceedings as the alleged leader of the Grape Street Crips. MASON regularly obtained quantities of crack Ogman and then sold the drug to customers in the Hill section of New Haven.
On April 9, 2012, a grand jury returned an indictment charging MASON and 17 other individuals with narcotics distribution and related offenses stemming from this investigation. Two additional individuals were later charged in the case.
All of the defendants have pleaded guilty. On March 21, 2014, MASON pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
MASON has been detained since his arrest on April 11, 2012.
Ogman awaits sentencing.
This matter was investigated by the FBI’s New Haven Safe Streets Task Force, the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
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[email protected]New Bedford Man Sentenced to Four Years in Prison for Computer Hacking and Credit Card TheftRead the Press Release
BOSTON – A New Bedford man was sentenced today for hacking into computer networks around the country, including networks belonging to law enforcement agencies and a local college.
Cameron Lacroix, 25, was sentenced by U.S. District Judge Mark L. Wolf to four years in prison, and three years of supervised release. In June 2014, Lacroix pleaded guilty to two counts of computer intrusion and access device fraud.
Between May 2011 and May 2013, Lacroix illegally obtained and possessed payment card data for more than 14,000 account holders. For some of these account holders, Lacroix also unlawfully obtained other personally identifiable information. From August 2012 through November 2012, Lacroix repeatedly hacked into law enforcement computer servers containing sensitive information including police reports, intelligence reports, arrest warrants, and sex offender information. In September 2012, Lacroix hacked into a computer server operated by a local Massachusetts police department and accessed an e-mail account belonging to the chief of police.
Additionally, between September 2012 and November 2013, Lacroix, who was a student at Bristol Community College (BCC), repeatedly hacked into BCC’s computer servers and used stolen log-in credentials belonging to three instructors to change grades for himself and two other students.
The U.S. Attorney’s Office for the Northern District of California has also filed hacking charges against Lacroix. That case has been transferred to the District of Massachusetts and is before U.S. Chief Judge Saris.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police made the announcement today. The case is being prosecuted by Senior Trial Attorney Mona Sedky from the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder of Ortiz’s Cyber Crime Unit.
Nanny Sentenced to Three Years in Prison for Stealing over $430,000 from A Montgomery County CoupleRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Kadiatu Sahid Kamara, age 50, of Gaithersburg, Maryland today to three years in prison followed by threeyears of supervised release for mail fraud and aggravated identity theft, arising from a two year scheme in which she wrote herself approximately 118 checks from her employers’ bank account. Judge Hazel also entered orders that Kamara pay $431,542 in restitution and forfeiture.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, Kamara was a nanny caring for the children of a married couple living in Montgomery County. Kamara had access to checks linked to the victims’ money market account, though she had never been authorized to write checks from this account. From May 2011 to May 2013, Kamara wrote herself approximately 118 checks from the victims’ account, totaling approximately $431,542. She forged the signature of one of the victims on each check, and deposited the checks into her own bank account. Kamara used some of the money to buy a house in Africa, to send money transfers, and to play games at a casino in Charles Town, West Virginia.United States Attorney Rod J. Rosenstein praised the U.S. Secret Service and Montgomery County Police Department for their work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Mobile Man Sentenced to Three Years Imprisonment on Cocaine Conspiracy ChargeRead the Press Release
MOBILE, AL-- The United States Attorney, Kenyen R. Brown, announces that Kevin Marion was sentenced to thirty-six months imprisonment on October 24, 2014 by United States District Court Judge William H. Steele, after pleading guilty to conspiracy to possess with the intent to distribute cocaine in violation of Title 21 USC '846. Marion’s co-defendant, David Henley, was sentenced in January. The case was investigated by the Drug Enforcement Administration.
Mercer County Man Pleads Guilty to Possessing Child PornographyRead the Press Release
Bluefield, W.Va. - A 19-year-old Mercer County man faces up to 10 years in prison after pleading guilty today to possession of child pornography, U.S. Attorney Booth Goodwin announced. Joshua Dwayne Poff, of Bluefield, West Virginia, entered a guilty plea before Senior United States District Court Judge David A. Faber.
Poff admitted that on January 10, 2014, he possessed pictures of prepubescent minors engaged in sexual acts. The images were located on his personal computer at his home. Poff also admitted to trading video files containing child pornography via the Internet to another person who had a Google email account. U.S. Attorney Booth Goodwin said, “We are committed to the fight against criminals like Joshua Dwayne Poff who contribute to the exploitation and abuse of children. We will use every available tool to track them down and prosecute them to the fullest extent allowed by law.”
The court scheduled sentencing for Poff for 11:30 a.m. on March 15, 2015, in Bluefield, West Virginia.
The West Virginia Internet Crimes Against Children Task Force, the West Virginia State Police, the Mercer County Sheriff’s Department, and United States Immigration and Customs Enforcement conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Members of Upstate Robbery Crew Plead Guilty to Federal Robbery and Firearms ChargesRead the Press Release
Contact Person: Andrew Moorman (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that Juan Manuel Hernandez, age 39, and Arturo Mendez-Gomez, age 27, pled guilty to Conspiring to Interfere with Interstate Commerce by Robbery and two counts of Brandishing, Carrying, Using, and Possessing a Firearm in Furtherance of a Crime of Violence. The Government’s evidence indicated that beginning at least on December 7, 2013, and ending on February 21, 2014, Hernandez and Mendez-Gomez, both citizens of Mexico, worked together to rob Hispanic grocery stores operating in the Upstate of South Carolina and western North Carolina. Typically, Mendez-Gomez would enter the store first and distract the clerk. Hernandez would then enter the store, walk around the counter, and point a semi-automatic pistol at the clerk, demanding money. After the clerk complied with the demand, Hernandez and Mendez-Gomez would tie up the clerk in the rear of the store and make their getaway. The investigation culminated on February 20, 2014, when law enforcement spotted a getaway car the two men had used in some of the robberies. On February 25, 2014, law enforcement arrested Mendez-Gomez while conducting surveillance on the getaway car. Hernandez fled, but was later apprehended in Columbus, Ohio. Pursuant to their guilty pleas, Hernandez and Mendez-Gomez face a minimum of 32 years in prison and a maximum of life imprisonment.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Greenville County Sheriff’s Office, the Spartanburg County Sheriff’s Office, the Greenwood County Sheriff’s Office, the Laurens County Sheriff’s Office, and the Henderson County, North Carolina, Sheriff’s Office investigated the case. Andy Moorman with the U.S. Attorney’s Office is the prosecutor assigned to the case.Massachusetts Man Sentenced to Four Years in Prison for Computer Hacking Involving Stolen Credit Card Numbers and Altered Academic RecordsRead the Press Release
A Massachusetts man was sentenced to serve four years in prison today for hacking into computer networks around the country – including networks belonging to law enforcement agencies and a local college – to obtain highly sensitive law enforcement data and to alter academic records, as well as for possessing stolen credit and debit card numbers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carmen M. Ortiz of the District of Massachusetts, Special Agent in Charge Vincent Lisi of the FBI’s Boston Division and Colonel Timothy P. Alben of the Massachusetts State Police made the announcement.
Cameron Lacroix, 25, of New Bedford, Massachusetts, pleaded guilty on June 25, 2014, to two counts of computer intrusion and one count of access device fraud. Lacroix was sentenced today by U.S. District Judge Mark L. Wolf of the District of Massachusetts.
Lacroix admitted that, between May 2011 and May 2013, he obtained and possessed payment card data for more than 14,000 unique account holders. For some of these account holders, Lacroix also obtained other personally identifiable information.
Additionally, from August 2012 through November 2012, Lacroix repeatedly hacked into law enforcement computer servers containing sensitive information including police reports, intelligence reports, arrest warrants, and sex offender information. In one such instance, in September 2012, Lacroix hacked into a computer server operated by a local Massachusetts police department and accessed an e-mail account belonging to the chief of police.
Lacroix, who was a student at Bristol Community College (BCC), also admitted that between September 2012 and November 2013, he repeatedly hacked into BCC’s computer servers and used stolen log-in credentials belonging to three instructors to change grades for himself and two other students.
The case was investigated by the FBI’s Boston Division Cyber Task Force. The case is being prosecuted by Senior Trial Attorney Mona Sedky from the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder of the District of Massachusetts.
The U.S. Attorney’s Office for the Northern District of California has also filed hacking charges against Lacroix. That case has been transferred to the District of Massachusetts and is before Chief Judge Saris.
Marion Prison Inmate Charged with Assaulting A Correctional OfficerRead the Press Release
Follow @SDILNewsErick Roman, 38, an inmate at the United States Penitentiary at Marion, Illinois, appeared today for arraignment in United States District Court in Benton on an indictment charging him with assaulting a correctional officer at that facility, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The indictment, returned by a Federal Grand Jury on October 7, 2014, alleged that the offense occurred on August 20, 2014.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
At the time of the assault, Roman was serving a 60 year sentence from the District of Maryland for conspiring to participate in a racketeering enterprise. If convicted of the assault offense, Roman faces up to an additional 8 years in federal prison, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Following his arraignment, Roman was ordered held without bond and was returned to the custody of the Attorney General to await further proceedings. Roman’s next scheduled court appearance is a final pretrial conference on December 17, 2014, at 9:30 a.m. at the United States Courthouse in Benton. A trial date of December 29th at 9:00 a.m. was also set.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Manhattan U.S. Attorney Files Healthcare Fraud Lawsuit Against Computer Sciences Corp. and the City of New York for Orchestrating A Multimillion-Dollar Medicaid Billing Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed a civil healthcare fraud lawsuit in Manhattan federal court against COMPUTER SCIENCES CORP. (“CSC”) and the CITY OF NEW YORK (the “CITY”). The Government’s Complaint seeks treble damages and civil penalties under the False Claims Act against CSC and the CITY for orchestrating billing fraud schemes that used computer programs to automatically alter billing data. Two of the schemes involved CSC and the CITY using computer programs to circumvent the requirement that Medicaid should be billed after private insurance coverage had been exhausted, and a third scheme involved the use of a defaulting program to systematically falsify diagnosis codes submitted to Medicaid. According to the Complaint, these fraud schemes caused the submission of tens of thousands of false claims to Medicaid and allowed the CITY, through CSC, improperly to obtain millions of dollars of Medicaid reimbursements.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, CSC and the City created computer programs that systematically, and fraudulently, altered billing data in order to get paid by Medicaid as quickly as possible and as much as possible. Billing frauds like those alleged undermine the integrity of public healthcare programs like Medicaid. All public healthcare program participants, whether they are healthcare providers, localities like the City, or contractors like CSC, should understand that they must comply with the applicable billing rules.”
The following allegations are based on the Complaint filed today in Manhattan federal court:
In New York State, early intervention program (“EIP”) services are available to children under the age of three who demonstrated developmental delay or have been diagnosed with medical conditions likely to cause delay. For children in New York City receiving EIP services, the CITY was responsible for processing and paying claims submitted by service providers, then seeking coverage from private insurers or Medicaid or billing New York State for its 49% share of the costs not covered by private insurance or Medicaid.
To minimize its share of the costs of the EIP services, the CITY set annual targets for Medicaid payments and made it a priority to obtain Medicaid payments as soon as possible and for as much as possible. The CITY contracted with CSC to process service provider claims and then seek coverage from private insurers, Medicaid, or the State. To ensure that CSC would focus on obtaining Medicaid payments, the CITY offered CSC financial incentives for exceeding certain targets for Medicaid payments and imposed penalties when CSC failed to meet the CITY’s goals for Medicaid payments. To meet those targets, CSC and the CITY implemented billing fraud schemes using computer programs that automatically altered billing data.
Two of these schemes were designed to circumvent Medicaid’s secondary payor requirement, which required the CITY and CSC to exhaust private insurance coverage before billing Medicaid. In the first scheme, rather than obtaining correct private insurance policy IDs for children who had missing or incomplete policy IDs, CSC developed a program to identify missing insurance policy IDs and then applied a default policy number of 999-999-999, which CSC and the CITY knew would result in denials by private insurers. This scheme enabled CSC and the CITY to submit tens of thousands of false claims to Medicaid without exhausting private insurance coverage and to obtain millions of dollars from Medicaid improperly.
In a second scheme, CSC and the CITY used defaulting programs so that they could bypass waiting for private insurance claims to be adjudicated and, instead, submit claims to Medicaid before private insurers had made a determination regarding payment. CSC developed computer programs that identified all private insurance claims that had been pending for a period of time (initially 90 days, and then 120 days) and then submitted those claims to Medicaid by improperly using a code – 0Fill – to indicate that private insurers either did not cover those services or had adjudicated the claims with zero payment. CSC and the CITY did this even where they knew that the lack of adjudication was due to the CITY’s failure to respond to the private insurers’ requests for information from the CITY in connection with adjudicating the claims. This scheme also resulted in the submission of tens of thousands of false claims to Medicaid without exhausting private insurance coverage and allowed the CITY improperly to obtain millions of dollars in Medicaid reimbursement in violation of Medicaid’s secondary payor requirement.
A third scheme was designed to enable CSC and the CITY to evade their responsibility to ensure that EIP service providers supplied accurate and complete diagnosis data, which was required before CSC or the CITY could seek Medicaid coverage on behalf of the providers. Instead of setting up procedures for validating the diagnosis data supplied by service providers, CSC and the CITY developed computer programs to identify diagnosis codes from service providers that they expected Medicaid to reject and then replace those codes with 315.9, a generic diagnosis that CSC and the CITY knew would be accepted by Medicaid. As part of this scheme, CSC and the CITY submitted tens of thousands of claims containing false diagnosis data, including diagnoses that were not accurate, to Medicaid. This enabled the CITY to obtain millions of dollars from Medicaid improperly.
The Complaint seeks treble damages and penalties under the False Claims Act for the millions of dollars in reimbursements that Medicaid paid as a result of the false claims that CSC and the CITY submitted in connection with their billing fraud schemes. In addition, the United States seeks compensatory damages under the common law theories of unjust enrichment and mistake of fact.
Mr. Bharara praised the investigative work of the U.S. Department of Health and Human Services Office of the Inspector General, and thanked it for its ongoing assistance. He also thanked the New York State Medicaid Fraud Control Unit for its active cooperation and assistance in the investigation.
The case is being handled by the Office’s Civil Frauds Unit. Mr. Bharara established the Civil Frauds Unit in March 2010 to bring renewed focus and additional resources to combating healthcare and other types of frauds. Assistant U.S. Attorneys Li Yu and Rebecca C. Martin are in charge of the case.
US v CSC and City of New York Complaint
Man Sentenced to 50 Years for Producing Child PornographyRead the Press Release
BOSTON – A Pittsfield man was sentenced today in U.S. District Court in Springfield for producing material involving the sexual exploitation of minors.
Jason Gendron, 34, was sentenced by U.S. District Judge William G. Young to 50 years in prison to be followed by 10 years of supervised release. On July 29, 2014, Gendron pleaded guilty to 16 counts of sexual exploitation of minors by producing child pornography and one count of possessing child pornography.
Between May 13, 2011 and August 24, 2012, Gendron created16 video clips of Gendron raping three girls, aged approximately three, eight, and 13 years old, and sexually explicit photographs of another girl, aged approximately two years old, all of whom were in his direct care. Gendron also possessed approximately 20,000 digital files of child pornography, including videos files depicting the rape and sexual torture of very young children.
At today’s sentencing, Judge Young told Gendron, “I have been a judge longer than you have been alive. But for cold-blooded murder, I have never seen a case that descends to the depths of depravity that this case demonstrates. You are a serial child abuser of the worst sort.”
In a related state case, on Oct. 16, 2014, in connection with this abuse, the defendant pleaded guilty to six counts of rape and abuse of a child aggravated by age difference and four counts of indecent assault and battery on a child under the age of 14, in Berkshire Superior Court. Gendron will be sentenced in the state case on Oct. 28, 2014.
United States Attorney Carmen M. Ortiz; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; Bruce M. Foucart, Special Agent in Charge of the Department of Homeland Security, Homeland Security Investigations in Boston; Chief Michael Wynn of the Pittsfield Police Department; and Berkshire District Attorney David F. Capeless made the announcement. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow.
Man Pleads Guilty to Stealing from Army's Family and Morale FundRead the Press Release
TOPEKA, KAN. - A man pleaded guilty Monday to stealing public funds from the Army’s family and morale fund at Ft. Riley, U.S. Attorney Barry Grissom said.
Michael Steffens, 59, Junction City, Kan., pleaded guilty to one count of stealing public money. In his plea, he admitted the crime occurred while he was a business manager at Ft. Riley for the U.S. Army’s Family and Morale, Welfare and Recreation program (MWR). The fund provides programs and services to soldiers and their families.
Steffens managed the change fund, which consisted of non-appropriated funds generated from MWR sponsored programs and activities. From August 2013 through August 2014, he stole approximately $62,000 in cash and coins.
Sentencing is set for Feb. 9. Both parties have agreed to recommend two years’ probation and restitution in an amount yet to be determined. Grissom commended the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Lecanto Ophthalmologist Pleads Guilty to Visa FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Ashish Sanon (51, Lecanto) pleaded guilty today to visa fraud. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set. Sanon has also agreed to forfeit assets, which specifically includes, but is not limited to, a money judgment in the amount of $250,000, representing the proceeds he obtained as a result of his offense.
According to the plea agreement, Sanon is a naturalized citizen of Canada who was born in Chandigarh, India. In 1987, Sanon obtained his Doctor of Medicine from the University of Alberta in Edmonton, Alberta, Canada. From 1998 until 2012, he was repeatedly granted temporary status in the United States, pursuant to the North American Free Trade Agreement (NAFTA). Admitted applicants, such as Sanon, receive what is known as Treaty NAFTA (TN) nonimmigrant status. All TN status professionals are prohibited from establishing a business or practice in the United States in which they are self-employed. Specifically, physicians who are granted TN status may only teach or conduct research while in the United States.
In early 2012, investigators received information that Sanon had been engaging in full medical practice for more than 10 years, in violation of the rules and regulations of his TN visa. Interviews with former employees of Sanon corroborated this information. Investigators ultimately discovered that Sanon had several provider numbers assigned to him for medical practice, which indicated that he was billing for services and practicing medicine.
"Visa fraud takes jobs away from U.S. citizens and others who are legally allowed to work in this country. Through cases like this one, HSI is helping to protect our economy and preserve job opportunities from being lost due to fraud," said Susan L. McCormick, special agent in charge of HSI Tampa.
“This case underscores the importance of applying Medicare’s rules and regulations to ensure that only qualified physicians are permitted to provide services,” stated Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s Miami Regional Office.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; U.S. Department of Health and Human Services - Office of Inspector General; and U.S. Citizenship and Immigration Services. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
Leaders of Violent Gang Convicted on All Counts in Racketeering and Murder CaseRead the Press Release
Earlier today, following three weeks of trial, a federal jury in Brooklyn, New York, returned guilty verdicts against Harvey Christian, Anthony Christian and Jason Quinn, on charges of racketeering – including murder conspiracies and, against Anthony Christian, the murder of Jerome Estella as racketeering acts – as well as firearms possession and multiple counts based on their trafficking in crack cocaine. The charges arose out of the defendants’ long-time dominance of a drug crew that operated in the Park Hill housing complex in the Clifton neighborhood of Staten Island. When sentenced by United States District Judge Eric N. Vitaliano, Harvey Christian faces a mandatory minimum sentence of 40 years’ imprisonment and a maximum sentence of life imprisonment; Anthony Christian faces a mandatory sentence of life imprisonment; and Quinn faces a mandatory minimum sentence of 65 years’ imprisonment and a maximum sentence of life imprisonment.
The verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“For all of their adult lives, the Christian brothers and their associates terrorized the residents of Park Hill, forcing them to live in fear of violence,” stated United States Attorney Lynch. “Today, their ability to earn money through crime comes to an end, and so does their rule of the streets. This verdict sends the message that that violence and drug-dealing have no place in our communities.” Ms. Lynch extended her grateful appreciation to the FBI, New York City Police Department and the Richmond County District Attorney for their outstanding assistance in this case.
For over two decades, Harvey Christian, also known as “Black,” and his brother, Anthony Christian, also known as “Nitty,” led a violent narcotics distribution ring. Jason Quinn was one of their most trusted associates. In the mid-1990s, the Christian brothers and their associates, including Quinn, sought to take control of more drug territory in Park Hill. To achieve this, the defendants engaged in massive gun battles for months. During one of the battles, in May 1995, law enforcement recovered 77 shell casings inside a residential building, outside on the street, and on the roof. In 1999, Anthony Christian ordered another member of the enterprise to murder a rival drug dealer named Corey Brooker. In the course of looking for Brooker, the enterprise member had a dispute with Brooker’s associate Jerome Estella. Anthony Christian then authorized the other enterprise member to murder Estella, and provided him with the 9 millimeter handgun he used to then murder Estella.
In the year before their arrests in 2011, multiple search warrants and arrests related to members of the organization and their associates were executed in and around Park Hill and elsewhere in New York. These searches and arrests resulted in the seizure of firearms and ammunition, including a Mac-11 pistol, as well as large quantities of crack and powder cocaine. During a search of the Christian brothers' apartment in the Park Hill housing complex in February 2010, the NYPD recovered multiple bullet-proof vests, crack-cocaine and marijuana.
The government’s case is being prosecuted by Assistant United States Attorneys Allon Lifshitz, Richard Tucker and Kevin Trowel.
The Defendants:
HARVEY CHRISTIAN
Age: 42 years
Staten Island, New York
ANTHONY CHRISTIAN
Age: 41 years
Staten Island, New York
JASON QUINN
Age: 40 years
Staten Island, New York
E.D.N.Y. Docket No. 11-CR-425
Johnston Resident Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
PROVIDENCE, R.I. – Nicholas Pislowski, 26, of Johnston, was sentenced on Friday to 18 months in federal prison for possessing more than 2,000 images of child pornography, announced United States Attorney Peter F. Neronha and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Pislowski to serve 5 years supervised release upon completion of his prison term. Pislowski pleaded guilty on May 8, 2014, to one count of possession of child pornography.
According to information presented to the court, in April 2012, members of the Rhode Island State Police Internet Crimes Against Children Task Force executed a court authorized search warrant for computers at Pislowski’s residence. A forensic examination of a laptop seized from Pislowski’s home resulted in the discovery of more than 2,200 videos and images depicting minor children engaged in sexually explicit conduct.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit along with detectives from the Coventry, Warwick, North Smithfield, Pawtucket, North Kingstown, Portsmouth, Bristol, South Kingstown and Woonsocket Police Departments, and special agents from Homeland Security Investigations and United States Postal Inspection Services.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Joel R. Levin Returns to U.S. Attorney’s Office to Succeed Retiring First Assistant U.S. Attorney Gary S. ShapiroRead the Press Release
CHICAGO — A veteran federal prosecutor rejoined the U.S. Attorney’s Office today as the second-ranking official and will succeed the office’s longest-serving prosecutor upon his retirement early next month. Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced the appointment of Joel R. Levin, who was a federal prosecutor for 28 years in Chicago, San Francisco, and Milwaukee, as First Assistant U.S. Attorney, succeeding Gary S. Shapiro, who has held the position for nearly 17 years of his 42-year career with the Justice Department.
Mr. Levin, 60, who was a trial partner with Mr. Fardon and others in the prosecution of former Illinois Gov. George Ryan, left government service in 2008 for private law practice. He returned to the office today as the No. 2 official under Mr. Fardon.
Mr. Shapiro, 68, whose distinguished career over four decades included 16 months as the U.S. Attorney before Mr. Fardon took office a year ago, is retiring effective Nov. 3.
“I am very pleased to welcome Joel, my friend and former trial partner, as a senior member of our team, knowing that we are gaining the benefit of his judgment and counsel in the critically vital role of First Assistant. This office is extremely fortunate to have Joel step into a leadership role and draw upon his breadth of experience, both in this and other U.S. Attorney’s Offices, as well as private practice,” Mr. Fardon said.
“At the same time, we are keenly aware that Gary’s retirement brings an end to his guiding influence, which has been steadfast through the tenure of five U.S. Attorneys, as well as five additional U.S. Attorneys while Gary was with, and led, the independent Organized Crime Strike Force. We in law enforcement, and the citizens of the Northern District of Illinois, owe Gary our deepest gratitude for his four decades of public service and for upholding the highest principles of justice for all. We congratulate him and wish him a wonderful retirement,” Mr. Fardon added.
Mr. Levin said: “It is humbling to replace Gary but I am honored by the opportunity of returning to public service and working with Zach, as well as the entire U.S. Attorney’s Office. I am excited to contribute to protecting our national security, attacking the violence that has plagued our neighborhoods, rooting out public corruption, prosecuting health care fraud and bringing to justice those who attempt to undermine the integrity of our markets and financial system.”
Mr. Shapiro said: “Chicago is blessed with a remarkable federal prosecutor’s office, staffed with talented and dedicated public servants. I’ve been able to investigate and try cases with some of the most creative and committed investigators imaginable, and in an atmosphere in which ‘doing the right thing’ was the only object. I’ve been very lucky to be allowed to work here.”
The First Assistant U.S. Attorney, also known as the FAUSA, plays a major role in supervising all matters, including investigations and prosecutions involving international terrorism, public corruption, corporate fraud, and organized crime, including violent crime and narcotics and gang prosecutions. The FAUSA also has significant responsibility for managing more than 300 employees, including currently 162 Assistant U.S. Attorneys in Chicago and Rockford, serving 18 counties and nine million residents in northern Illinois.
Mr. Levin returns to the U.S. Attorney’s Office from Perkins Coie in Chicago, where he was a member of the firm’s White Collar & Investigations practice since 2008. Mr. Levin was an Assistant U.S. Attorney in Milwaukee from 1980 to 1984, and an AUSA in San Francisco from 1984 to 1997, serving as chief of the Criminal Division his last two years there. In 1997, he joined the U.S. Attorney’s Office in Chicago and held supervisory positions, including chief of the Financial Fraud and Special Prosecutions Section in 2007-08. In addition to the public corruption prosecution of Ryan and other defendants in Operation Safe Road, Mr. Levin handled numerous financial fraud cases and was a member of the trial team in the prosecution of Gustavo “Gino” Colon, the leader of the Latin Kings street gang.
Mr. Levin received four Justice Department Director’s Awards for superior performance between 1990 and 2006; the Federal Bar Association’s Frank McGarr Award in 2002; and the Chicago Crime Commission’s Star of Distinction Award in 2006. He has been an adjunct professor of law at Northwestern University since 2008.
Mr. Levin graduated from Yale University in 1976 and from Harvard Law School in 1979.
Mr. Shapiro served as the United States Attorney from July 1, 2012, to Oct. 23, 2013, between the terms of Mr. Fardon and Patrick J. Fitzgerald. Former U.S. Attorney Scott R. Lassar appointed Mr. Shapiro First Assistant in January 1998, and Mr. Fitzgerald reappointed him in that position after taking office in 2001. In 2007, Mr. Shapiro received a Justice Department Director’s Award for executive achievement.
He joined the Justice Department in 1972 as a trial attorney and, in 1974, he joined the Chicago Strike Force, a field office of the Justice Department’s Organized Crime and Racketeering Section. In 1984, he became Attorney in Charge of the Chicago Strike Force, responsible for supervising all federal organized crime investigations and trials in Illinois, Indiana, and Wisconsin. In 1990, when the Strike Force field offices nationwide were merged into the United States Attorney’s offices, Mr. Shapiro became Chief of the Organized Crime Section of the Chicago U.S. Attorney’s Office. In 1992, he was appointed Chief of the Criminal Division.
Mr. Shapiro brought his considerable experience prosecuting organized crime and the Chicago “Outfit” to bear over the last decade in supervising Operation Family Secrets, which resulted in Frank Calabrese, Sr., a street crew leader, Joey “The Clown” Lombardo, and James Marcello, both Outfit capos, each being sentenced to life in prison for crimes related to more than a dozen mob murders and attempted murders, including some of Chicago’s most notorious Outfit hits, dating back to the 1960s.
Mr. Shapiro also helped oversee the decade-long civil investigation of systemic corruption nationwide in the Laborers’ International Union of North America (LIUNA), which resulted in an unprecedented out-of-court settlement and a top-to-bottom reformation of LIUNA’s election and internal policing structures designed to rid the union of decades of organized crime influence. For this achievement, in 2000, Mr. Shapiro and other members of the team received the Attorney General’s Distinguished Service Award.
In the 1980s, Mr. Shapiro prosecuted Roy Williams, then president of the International Brotherhood of Teamsters; Allen Dorfman, once responsible for the management of the multi-billion-dollar Teamsters Central States Pension Fund; Joey Lombardo; and several pension fund trustees for conspiring to bribe then U.S. Sen. Howard Cannon, of Nevada, to kill proposed Senate legislation to deregulate the trucking industry. Following Williams’ conviction and sentencing, he became the highest-ranking Teamsters official ever to testify against the mobsters who then controlled the Teamsters Union, and his cooperation contributed substantially to the subsequent convictions of the leaders of the organized crime families in Chicago, Kansas City and Cleveland for skimming millions of dollars from Las Vegas casinos.
Mr. Shapiro also prosecuted Harry Aleman, the notorious Chicago mobster and hitman, for operating a violent home invasion crew, and he oversaw the racketeering investigation and trial of Aleman, mob capo Ernest “Rocky” Infelise, and other Chicago Outfit members, as well as the prosecution of then-Cicero Town President Betty Loren Maltese. Mr. Shapiro is also credited with helping turn Robert Cooley, a corrupt former Chicago lawyer, into a government cooperating witness, who testified in several Operation Gambat trials involving organized crime and judicial corruption in the early 1990s.
In the late 1970s, Mr. Shapiro headed the investigation and trials of Charles Nicosia, former mayor of East Chicago, Ind., and other East Chicago public officials and local contractors for significant bribery schemes involving the payment of millions of dollars to obtain and then skim the public works contract to revamp East Chicago’s water treatment and sewer system.
Mr. Shapiro graduated from Rice University in 1968 and from the University of Texas School of Law in 1971.
Jefferson City Man Pleads Guilty to Attempted Sex Trafficking of a ChildRead the Press Release
Project Safe Childhood
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man pleaded guilty in federal court today to the attempted sex trafficking of a child as the result of an undercover investigation in which he thought he was meeting a 12-year-old victim for illicit sex.
Jeremy Ryan Bappert, 30, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a Nov. 7, 2013, federal indictment.
According to today’s plea agreement, a confidential informant received a text from Bappert and notified the Columbia, Mo., Police Department. Bappert asked the confidential informant to find a young girl, “around 9 to 11 years old,” and asked what $100 would get him. A police detective instructed the informant to send a response to Bappert that a person named “Julie” had a child available.
The police detective assumed the role of “Julie” and had a number of text conversations with Bappert. Bappert asked how old the child would be and said he was looking for “very young.” The undercover detective told Bappert that “Julie’s” daughter was 12 years old.
On July 19, 2013, Bappert sent a text to “Julie” seeking to arrange a meeting. He offered to pay $150 and provide a gram of hash in exchange for meeting at a hotel room in Jefferson City. Bappert, whose driver’s license was suspended, wasn’t able to find a ride on that day. He sent another text on July 24, 2013, saying that he had arranged a ride to Columbia but would have to pay $50 to the driver. He offered to pay “Julie” $100 but promised to pay $200 the next time. He also offered to bring “Julie” a gram of hash.
On July 25, 2013, Bappert agreed to meet at a restaurant in Columbia. When Bappert entered the restaurant, he was arrested. Investigators searched Bappert’s cell phone and recovered 246 images and six videos of child pornography.
Under federal statutes, Bappert is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to life in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Boone County, Mo., Sheriff’s Department and the Columbia, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."- Importing Methamphetamine Lands Mexican National 11-Year Prison Term
Government Resolves False Claims Act Allegations Against Advanced Professional Home Health CareRead the Press Release
Company agrees to pay penalty and implement compliance program to resolve claims arising from alterations to physician orders for home healt care services
GRAND RAPIDS, MICHIGAN – Advanced Professional Home Health Care, a home health agency based in Troy, with offices in Grand Rapids and Flint, has entered into an agreement with the U.S. Attorney’s Office for the Western District of Michigan that requires the agency to pay $57,000 and to implement a compliance program relating to its documentation of physician orders for home health services. The settlement resolves allegations that Advanced Professional Home Health Care violated the False Claims Act by altering physician signature dates and other information on certain physician orders for home health care services that the government examined during its investigation.
Under the terms of the settlement agreement, Advanced Professional Home Health Care has agreed to implement and maintain a compliance program for at least two years. This compliance program requires the company to provide training to its staff regarding medical records and documentation requirements, including those relating to signature and retention requirements for home health care orders. In addition, the company is required to hire an independent firm to perform unscheduled and unannounced reviews for each of the next two years to evaluate the company’s physician orders for home health care services and its billings, claims, and reimbursements based on these orders.
This case resulted from a civil lawsuit filed by a whistleblower who worked in one of Advanced Professional Home Health Care’s offices. The lawsuit, known as a qui tam action, was filed under the False Claims Act, which allows private whistleblowers to bring lawsuits on behalf of the United States and receive a share of any recoveries. In this case, the United States intervened in the whistleblower’s lawsuit. The whistleblower will receive a portion of the settlement proceeds, as well as additional amounts from the company for attorney’s fees and costs.
The U.S. Attorney’s Office for the Western District of Michigan investigated this case. Assistant U.S. Attorney Ryan D. Cobb represented the United States.
END
Fremont Man Sentenced to 5 years in Prison for Possession with the Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Rodrigo Delacruz, 27, of Fremont, Nebraska, was sentenced on October 27, 2014, to 5 years in prison by United States District Judge Laurie Smith Camp. Delacruz had previously pled guilty after Fremont police officers responded to a domestic assault call on May 2, 2014. The investigation led to contact with Delacruz at a Fremont gas station. Delacruz was found in possession of over 10 grams of actual methamphetamine , a scale, drug paraphernalia, and $1,797 in his coat.
During a post arrest interview, Delacruz admitted to using and selling methamphetamine in the past. Because Delacruz possessed more than 5 grams of actual methamphetamine, he faced a mandatory minimum sentence of 5 years. After serving his sentence Delacruz will be required to serve a Term of Supervised Release of 4 years.
This case was the result of an investigation by the Fremont Police Department and III CORPS Drug Task Force.
Franklin Man Pleads Guilty to Possessing Child PornRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Franklin man pleaded guilty to charges that he downloaded and stored images of child pornography on a hard drive.
Tommie Joseph Beason, 37, of Franklin, La., pleaded guilty before U.S. District Judge Richard T. Haik to one count of possession of child pornography. According to evidence presented at the guilty plea, law enforcement agents detected Beason downloading child pornography. Law enforcement agents then searched Beason’s residence on June 3, 2014 and found 230 images and 88 videos of hardcore child pornography on an external hard drive. The illegal files found included prepubescent child pornography with very young children and sadistic material.
Beason faces 10 years in prison, five years to life of supervised release, and a $250,000 fine. A sentencing date has not been set.
Homeland Security Investigations and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.
Four Men Sentenced to Federal Prison for Robbery of Jewelry CourierRead the Press Release
Four members of a robbery crew that targeted jewelry couriers were sentenced to federal prison for their roles in conspiracy to commit a Hobbs Act robbery and related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Sally Quillian Yates of the Northern District of Georgia made the announcement.
Honorio Sanchez-Valenica, 46, of Gwinnett, Georgia, John Rodriguez, 37, of Los Angeles, Ali Alejandro Godoy-Maximo, 25, of Los Angeles, and Michael Alejandro Tovar-Vargas, 37, of Los Angeles, were sentenced to serve 137 months in prison, 63 months in prison, 68 months in prison and 87 months in prison respectively for their involvement in the Jan. 31, 2013, robbery of a jewelry courier at a gas station in Buford, Georgia. In addition to the prison sentences, the defendants were ordered to pay $122,398 in restitution. U.S. District Judge Steve C. Jones of the Northern District of Georgia imposed the sentences. Jose Vicente Ramirez-Rodriguez, 38, of Los Angeles, also pleaded guilty for his role in the robbery and will be sentenced on Dec. 10, 2014.
Court records show that on Jan. 31, 2013, the defendants robbed a jewelry courier while he was putting gas in his car. Two of the defendants approached the victim, one restrained him with a knife, and the other smashed the car’s window and took a briefcase containing over $125,000 in assorted jewelry.
In his plea agreement, Sanchez-Valencia also admitted to his involvement in a similar robbery in Dallas on Aug. 27, 2012. In that robbery, Sanchez-Valencia conducted surveillance of two jewelry couriers at a restaurant. Within minutes after Sanchez-Valencia left, three masked men with a gun came into the restaurant and robbed the jewelry couriers, taking two briefcases containing over $500,000 in jewelry. Some of that jewelry was later recovered by law enforcement during the execution of a search warrant at a storage unit rented by Sanchez-Valencia.
This case was investigated by the FBI, Immigration and Customs Enforcement, and the Gwinnett County Police Department, with assistance from the Dallas Police Department. This case is being prosecuted by Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kim Dammers of the Northern District of Georgia.
Former Technology Director for City of Lenexa Pleads Guilty to Wire FraudRead the Press Release
KANSAS CITY, KAN. - The former technology director for the City of Lenexa pleaded guilty Monday to a federal wire fraud charge, U.S. Attorney Barry Grissom said.
Andrew L. Davey, 44, Overland Park, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted the crime occurred from 2010 to 2012 while he was the director of technology for the City of Lenexa. After he left the city to take another job, city officials discovered he had purchased numerous electronic devices, such as iPads, computers, digital cameras and televisions which he gave to friends, traded for other merchandise or services, or sold on eBay and kept the proceeds.
For instance, he gave iPads to members of his church, and traded an iPad to another city employee for wheels and tires. The other employee was not aware the iPad belonged to the city. He gave his mother a 50-inch television and iPad that were purchased with city funds. He told her the equipment was obsolete and the city no longer needed it.
Sentencing is set for Jan. 20. Both parties have agreed to recommend a sentence of 12 months and a day in prison and restitution of approximately $103,677. Grissom commended the Lenexa Police Department, the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former Rowan County Resident Found Guilty of Federal Fraud ChargesRead the Press Release
GREENSBORO, N.C. – Sandy Wade Parsons was found guilty of forty-three federal fraud charges, announced Ripley Rand, United States Attorney for the Middle District of North Carolina. He will be sentenced by United States District Judge Thomas D. Schroeder in Winston-Salem on February 18, 2015.
Sandy Parsons, 40, was found guilty of one count of conspiracy to defraud the government, which carries a maximum sentence of five years in prison and a $250,000 fine; one count of aggravated identity theft, which carries a mandatory sentence of two years, consecutive to any other sentence, and a $250,000 fine; one count of false statement to a government agency, which carries a maximum sentence of two years in prison and a $250,000 fine; twenty counts of theft of government funds which carries a maximum sentence of five years in prison and a $250,000 fine; and twenty counts of mail fraud which carries a maximum sentence of twenty years in prison and a $250,000 fine.
Casey Stone Parsons, Sandy Parsons's co-defendant, pleaded guilty on October 1, 2014. Her sentencing is scheduled for February 10, 2015.
The Casey and Sandy Parsons case was investigated by the Rowan County Sheriff’s Office, the Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigations, and the Social Security Administration. The Casey Parsons and Sandy Parsons cases are being prosecuted by Assistant United States Attorney Anand Ramaswamy.
Former President and Owner of Rehabilitation Clinic Pleaded Guilty in Health Care Fraud and Money Laundering SchemeRead the Press Release
The former president and owner of a rehabilitation therapy services clinic pleaded guilty in Tampa today to health care fraud and money laundering charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Laura Leyva, 45, of Miami Lakes, Florida, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiracy to commit health care fraud and conspiracy to commit money laundering. Her sentencing date will be set by the court.
According statements made in court, from June 2007 through November 2009, Leyva was the president and owner of American Rehab of Kissimmee Inc., aka American Rehab of South Florida Inc., a comprehensive outpatient rehabilitation facility located in Kissimmee, Florida, and Hialeah, Florida. During that time period, American Rehab submitted approximately $2,543,368 in false and fraudulent claims for reimbursement to Medicare seeking payment for rehabilitation therapy services that were not legitimately prescribed and not provided. Medicare paid approximately $1,074,278 on those claims. Co-conspirators falsified and forged medical records were used to give the appearance that therapy services were rendered to Medicare beneficiaries at American Rehab when, in fact, they were not. Leyva admitted that she destroyed falsified medical records in order to conceal evidence of the health care fraud and money laundering scheme.
This case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Former Political Operative Convicted in Million Dollar Fraud SchemeRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that RAYMOND CHRISTOPHER REGGIE, age 52, of Mandeville, Louisiana, pled guilty this morning before U.S. District Judge Shelly D. Dick to all five counts of mail fraud charged against him. REGGIE had been scheduled for trial today and pled guilty without the benefit of a plea agreement. REGGIE faces incarceration, fines, restitution orders, and the forfeiture of assets. His sentencing date has not yet been set.
This morning, REGGIE pled guilty to a Superseding Indictment which charged him with engaging in a scheme to defraud various car dealerships in southeast Louisiana from January 2009 through July 2012. During the relevant period, REGGIE owned and operated Nexlevel Group, an advertising firm that purchased and managed advertising for the car dealerships. REGGIE submitted fictitious advertising expenses for payment by the dealerships, falsely representing that such expenses were actually incurred. Once the dealerships issued payments for the bogus expenses, REGGIE diverted the payments to his personal use and enjoyment. As a result of REGGIE’S submission of fictitious advertising expenses for payment, the car dealerships issued 138 checks totaling approximately $1,217,657.36 for advertising services which had not been received by the dealerships. REGGIE diverted all of the fraudulently obtained funds to a bank account which he controlled.
According to government filings in the case, REGGIE also allegedly engaged in tax and bank fraud during the relevant period. If proven, such activities could be considered at his sentencing in this matter.
United States Attorney Green stated: “Being articulate, smart, charming, and connected are often characteristics seen in successful con artists, like this defendant. The audacity of his fraud schemes is only outdone by his desperate attempts to deflect blame to others. This defendant only accepted responsibility after realizing that his efforts to smear and blame others would not save him from the harsh reality of the law and facts. I greatly appreciate the tremendous work of the prosecutors and agents who handled this matter. My office will continue to work with IRS-CI, the Fraud Section, and our other partners to ensure that such fraudsters are brought to justice.”
Acting Special Agent-in-Charge Jerome R. McDuffie of the Internal Revenue Service, Criminal Investigation, stated: “We are pleased with the guilty pleas entered today by Raymond Reggie. IRS-CI and the U. S. Attorney’s office will not ignore illegal business practices and remain fully committed to prosecution of those who engage in these practices for personal gain.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Criminal Fraud Section of the U.S. Department of Justice, and the Criminal Investigations Division of the Internal Revenue Service. It is being prosecuted by Assistant U.S. Attorneys Rene Salomon and Ryan Crosswell and Senior Litigation Counsel Jack Patrick of the Criminal Fraud Section.
Former Orange County Teacher Named in Federal Sex Tourism CaseRead the Press Release
SANTA ANA, California – A former teacher with the Santa Ana School District has been charged with traveling to the Philippines to engage in sex with an underage girl and producing a video of the encounter.
Robert Ruben Ornelas, 63, of Santa Ana, was taken into federal custody Friday afternoon after being named in a criminal complaint filed in United States District Court.
The three-count complaint accuses the onetime school teacher and girl’s softball coach of engaging in sexual conduct in a foreign place, producing child pornography, and possessing child pornography.
Ornelas also faces state charges of lewd acts with a child, but the defendant was turned over to federal custody on Friday after the new complaint was filed.
The federal complaint details allegations that Ornelas traveled in March 2012 to the Philippines, where he engaged in sexual conduct with a girl who was approximately 14. According to the affidavit in the case, Ornelas took video of his encounter with the girl and brought the images with him when he returned the U.S. the following month. The third count in the complaint accuses the defendant of knowingly possessing the child pornography.
While Ornelas is charged with conduct related to one victim, the affidavit discusses evidence linking him to the sexual molestation of additional victims.
The federal case is based on information and images found on Orenelas’ computer and digital media seized by investigators when they executed a search warrant at his residence. On the seized media, investigators discovered communications between Ornelas and several underage girls in the Philippines dating back to 2007. Investigators also found numerous sexually explicit photos and videos of underage girls.
The Orange County District Attorney’s Office previously charged Ornelas with two counts of lewd conduct with a child for allegedly molesting a relative. While those charges remain pending at this time, Ornelas was transferred to the custody of the U.S. Marshals Service Friday afternoon to facilitate the federal prosecution.
At his initial court appearance Friday afternoon in federal court, Ornelas was ordered held without bond and was ordered to appear at an arraignment on November 10.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The three charges in the criminal complaint carry a cumulative maximum sentence of 80 years in federal prison. The charge of producing child pornography carries a mandatory minimum sentence of 15 years.
The federal charges are the product of an ongoing probe by the Orange County Child Exploitation Task Force, which includes special agents from the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Newport Beach Police Department and the Orange County Sheriff’s Department.
Release No. 14-141
Former IRS Employee Sentenced for Tax Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of the Internal Revenue Service was sentenced in federal court today for leading a conspiracy to steal taxpayers’ identity information in order to receive fraudulent tax refunds.
Taylor S. Knight, 33, of Kansas City, Mo., was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered Knight to pay $5,000 in restitution to the IRS.
Knight, who pleaded guilty on July 25, 2014, worked as an employee of the IRS at the office at 333 W. Pershing Rd., Kansas City, from March 2009 to January 2012. Knight admitted that she abused her position of trust when she inappropriately accessed the information of three taxpayers as part of a conspiracy to defraud the United States by using the stolen identity information to fraudulently induce the IRS into issuing tax refund payments.
On Sept. 30, 2011, Knight used the information from two of the victim taxpayers (who were married) to submit a bogus online application for three prepaid debit cards. These debit cards were issued and mailed to the residence of the grandmother of her boyfriend and co-conspirator, Michael J. Moore, 28, of Kansas City, Mo. Moore monitored the mail sent to his grandmother’s address and retrieved the three prepaid debit cards. Knight and Moore agreed to use his grandmother’s address rather than use an address associated with Knight in an effort to conceal her role in this conspiracy to defraud the United States. Moore has pleaded guilty to his role in the conspiracy and awaits sentencing.
On Oct. 17, 2011, Knight submitted a 2010 tax return for the same two married victim taxpayers. The IRS approved a $46,572 refund, of which $5,000 was deposited on a debit card that had been obtained by Knight. The IRS attempted to deposit the remaining $41,572 refund on the other debit cards obtained by Knight, but the receiving banks rejected the deposits.
Moore telephoned the IRS on Dec. 7, 2011, and falsely claimed to be the victim taxpayer. He provided the IRS representative with pertinent personal identification information for both victims and requested the IRS to send the remaining tax refund to a new address located in Independence, Mo. He identified this address because it was his former residence and he knew it was unoccupied.
In August 2011, the victim taxpayers filed legitimate amended tax returns. A $46,734 refund check was sent to the Independence address and was obtained by Moore and Knight. Knight agreed to pay $500 to co-defendant Michael Stalcup, 43, of Farley, Mo., to help her cash the refund check. Knight obtained false identification documents – including Social Security cards, credit cards and driver’s licenses – so that they could assume the identity of the victim taxpayers. Knight and Stalcup attempted to cash the stolen Treasury check at a local convenience store. The clerk was concerned about cashing such a large check and he went to his immediate supervisor for guidance. Stalcup told the clerk and his supervisor that, if they would cash the check, they could keep $6,000 of the proceeds. The supervisor decided not to cash the check, but he told them to come back later.
When Knight and Stalcup returned, the owner reported the incident to law enforcement. Police officers arrived about 10 minutes later. When Stalcup saw the police officers he attempted to flee, but was apprehended; both Knight and Stalcup were arrested. Stalcup has pleaded guilty to his role in the conspiracy and awaits sentencing.
Knight also admitted that she submitted a bogus online application for a prepaid debit card in the name of another victim taxpayer. The debit card was approved and mailed to an address in Oak Grove, Mo.; this debit card was never used. Knight admitted that she submitted this false online application to test whether her scheme to defraud the IRS was viable.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by the Treasury Inspector General for Tax Administration.Former Boeing Procurement Officer and Two Subcontractors Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – Former Boeing Procurement Officer DEON ANDERSON was sentenced to 20 months in prison in connection with a bribery/kickback scheme involving Boeing military aircraft parts, as well as structuring currency transactions to conceal his receipt of the cash bribes. Co-defendants WILLIAM P. BOOZER, Hacienda Heights, California, was sentenced to 18 months in prison and fined $10,000; and ROBERT DIAZ, JR., Alta Loma, California, was sentenced to 15 months in prison and was fined $2,000.
Boeing Company Defense Space and Security Division is a defense contractor providing military- style aircraft to the United States Department of Defense and the United States armed services, with offices and procurement operations located in St. Louis. Deon Anderson was a Procurement Officer for Boeing, residing in the St. Louis area.
J. L. Manufacturing of Everett, Washington, is an aerospace job machine shop specializing in hard metals, with the capability of producing small to medium sized complex parts of ferrous and non-ferrous materials, and was a sub-contractor to Boeing on numerous United States government contracts. Jeffrey Lavelle, owner and operator of J. L. Manufacturing, directed the day-to-day operations of the company, and oversaw all financial aspects of the company.Inland Empire and Associates, Inc., Las Vegas, Nevada, is engaged in consulting to defense aircraft manufacturers and parts suppliers, including consulting for J. L. Manufacturing. Robert Diaz, Jr. was the owner and operator of Inland Empire, and personally consulted to J. L. Manufacturing and Jeffrey Lavelle relative to numerous Boeing sub-contracts.
Globe Dynamics International, Inc., Santa Ana, California, is a leader in producing small to large, close tolerance precision machined parts and the assembly of complex components. Globe Dynamics was a sub-contractor to Boeing on numerous United States government contracts. William Boozer, owner and operator of Globe Dynamics, directed the day-to-day operations of the company, including the submission of contract bids.
According to court documents and statements made in court, between November 2009 and February 2013, Boozer requested the Procurement Officer for Boeing, Deon Anderson, provide him with non-public competitor bid information and historical price information in connection with Boeing military aircraft part purchase order requests for quotes. They communicated by telephone and e-mail between California and St. Louis in code on a regular basis, Boozer frequently requesting “Isle 5," a coded reference to a “price check on aisle 5," understood by Anderson to be a request for historical price information and competitor bid information. Anderson gave the information to Boozer to be used in preparing and submitting bids on behalf of Globe Dynamics in response to approximately sixteen different Boeing requests for quotes relative to those various purchase orders, in exchange for cash payments. Of the sixteen bids Globe Dynamics was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of $1,500,000. The net benefit to Globe Dynamics on those seven purchase orders was approximately $116,339.
Beginning in May 2011 and continuing through April 2013, Deon Anderson provided J.L. Manufacturing, through Lavelle and Diaz, non-public competitor bid information and historical price information in connection with one and more Boeing military aircraft part purchase order requests for quotes. Lavelle used that information in preparing and submitting bids on behalf of J.L. Manufacturing to Boeing for approximately nine different Boeing requests for quotes relative to those various purchase orders. Of those nine, J.L. Manufacturing was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling approximately $2,052,746. In exchange for that information, they made cash payments to Anderson in St. Louis and in California.
Relative to the cash bribe payments he received, on more than one occasion Deon Anderson structured cash deposits into his personal checking account to conceal his bribe scheme.
Deon Anderson, St. Louis, Missouri, pled guilty to three felony counts of mail fraud, one felony count of wire fraud, and one felony count of currency structuring in June. Co-defendants William P. Boozer, Hacienda Heights, California, and Robert Diaz, Jr., Alta Loma, California, also previously pled guilty to related charges. The defendants appeared today in St. Louis for sentencing before United States District Judge Henry Autrey.
Co-defendant Jeffrey Lavelle, Mukilteo, Washington, is scheduled for sentencing November 17, 2014.
This case was investigated by Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service and Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney’s Office.
Former American Airlines Pilot Sentenced to 21 Years for Child Pornography OffensesRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Donald Edwin Gallagher, Jr. (52, St. Petersburg) to 21 years in federal prison for production, distribution, and possession of child pornography. The court also ordered Gallagher to forfeit computers and electronic media that he had used to commit the offenses, and to pay restitution to the victims of his offenses. He was found guilty by a federal jury on March 13, 2014.
According to court documents, in January 2013, an undercover detective with the St. Petersburg Police Department downloaded approximately 15 files depicting child pornography from an Internet protocol address that traced back to Gallagher’s residence. Based upon an investigation into the origin of these images, the FBI and other local law enforcement agencies executed a federal search warrant at the residence. During the search, agents located and seized a laptop computer belonging to Gallagher, as well as hard drives and other digital media on which agents located thousands of images and hundreds of videos depicting child pornography. Upon further investigation and review of Gallagher’s digital media, law enforcement officials determined that Gallagher had used two minor victims to produce images and videos of them engaged in sexually explicit conduct.
This case was investigated by the FBI and members of the FBI’s Child Exploitation Task Force, including the Largo Police Department and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorneys Josephine W. Thomas and Stacie B. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Florida Couple Plead Guilty to Federal Drug ChargesRead the Press Release
Husband also pleads guilty in money laundering conspiracy
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Lester Taylor, 45, and Ali Weinberg, 32, both of Daytona Beach, Florida, entered guilty pleas today in federal court in Charleston to conspiracy to distribute oxycodone. Taylor also pleaded guilty to his role in a money laundering conspiracy.
Beginning in January 2010 and continuing until May 2014, Taylor acquired oxycodone pills in Florida and had them transported to Lincoln County, West Virginia, for distribution. Taylor shipped the pills via a common carrier, made personal trips from Florida to West Virginia, and used associates to carry the drugs from Florida to West Virginia. Taylor supplied pills to his associates for distribution, and once the pills were sold, the associates deposited the drug proceeds in Taylor’s bank accounts in Barboursville and Huntington. From January 2010 through May 2014, more than $700,000 in drug proceeds were deposited into Taylor’s bank accounts. Taylor retrieved the cash from Florida through ATM withdrawals, counter withdrawals or cashed checks made payable to him or his associates.
Ali Weinberg, Taylor’s fiancée, admitted that from approximately February 2013 through May 2014, she and Taylor obtained monthly prescriptions for oxycodone and hydromophone from doctors in Florida. They took the Florida prescriptions to A+ Pharmacy in Barboursville to be filled. The pills from these prescriptions were later distributed in Lincoln County. Weinberg admitted that from February 2013 through May 2014, she and Taylor obtained approximately 4,772 oxycodone 30 mg pills, approximately 630 hydromorphone 4 mg pills, and approximately 1,080 hydromorphone 8 mg pills through this scheme.
Taylor and Weinberg are scheduled to be sentenced on January 27, 2015, by United States District Court Judge John T. Copenhaver Jr.
The Drug Enforcement Administration, the Internal Revenue Service, and the West Virginia State Police conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiates and heroin in communities across the Southern District.
Fishing Vessel Master Pleads Guilty and Is Sentenced for Sleeping While Vessel UnderwayRead the Press Release
HONOLULU – Kevin Lam, age 43, a resident of Oahu, pled guilty to eight charges of operating a commercial fishing vessel in a grossly negligent manner on Friday, October 24, and received a sentence of one-year probation and 60 hours of community service from Magistrate Judge Barry M. Kurren. The offenses occurred from September 7 through 14, 2011, one on each day. During the probationary period, Lam may not serve as Master or Person in Charge of any commercial vessel. Further, in order to serve as Master of any commercial vessel in the future, Defendant Lam must attend Coast Guard approved training.
Florence T. Nakakuni, United States Attorney for Hawaii, said that according to information produced in court, on multiple occasions, Lam, while Master of the commercial fishing vessel, the Lady Ann Margaret, slept for extended periods of time while the vessel was underway, with no other lookout or helmsman on watch. The prosecution alleged that Lam’s behavior risked the lives not only of his crew and a National Oceanic and Atmospheric Administration observer on board, but also other mariners at sea.
Judge Kurren remarked to Lam, "You are pretty fortunate that this didn't result in some catastrophe." Captain Shannon Gilreath, Commander, U.S. Coast Guard Sector Honolulu, supported the observation, saying “Mariners who intentionally sleep while on watch or abandon the wheelhouse after setting the helm on autopilot put the lives of their crews and other mariners at risk.”
The Coast Guard previously assessed a civil penalty of $2,500 against Lam within the year preceding the charged offenses for negligent operation of his vessel because he was asleep with no other watch. During that incident Lam’s vessel actually collided with another vessel.
This case was investigated by the Coast Guard Investigating Service (CGIS). Assistant United States Attorney Thomas J. Brady and Special Assistant United States Attorney Angela A. Cook prosecuted this case.
Federal Inmate Sentenced for Possessing A KnifeRead the Press Release
Bluefield, W.Va. – United States Attorney Booth Goodwin announced today that Senior United States District Judge David A. Faber sentenced a federal inmate for possessing a weapon in the Federal Correctional Institution at McDowell. Antonio Uribe Quintero, 36, was sentenced to 30 additional months in prison. Quintero pled guilty on June 23, 2014, admitting that on March 7, 2014, he possessed a hand-crafted knife in the prison. The sentence will run consecutively to the ten-year sentence Quintero is serving for illegally reentering the United States after having been deported and for violating the terms of his supervised release in a prior case. The case was investigated by the Federal Bureau of Prisons and the prosecution was handled by Assistant United States Attorney John File.