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Friday 24 October 2014
Pair Sentenced for Making and Passing Counterfeit BillsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Christopher Williams, age 28, from Conyers, Georgia, and David Birdsong, aged 32, from Lithia Springs, Georgia, were sentenced on October 22, 2014, to serve nearly four years (45 months) imprisonment and pay restitution in the amount of $700. The sentences were handed down by the Honorable Hugh Lawson, Senior United States District Judge, in Valdosta, Georgia.Mr. Williams and Mr. Birdsong entered guilty pleas on July 7, 2014 to manufacturing 72 counterfeit $50 Federal Reserve Notes using a scanner/copier/printer. In addition, they admitted that on February 7, 2014, they used 14 of the counterfeit $50 bills to purchased $700 in prepaid debit cards from two Family Dollar Stores in Valdosta, Georgia. The two were arrested when Mr. Birdsong attempted to use four more counterfeit bills to purchase a $200 prepaid debit card at a Family Dollar Store in Quitman, Georgia. Store employees were suspicious of the bills and contacted police, leading to the arrest. A search of their car produced more than $3000 in counterfeit $50 and $100 bills and scanner/copier/printer, which was found in the trunk of the car.
“The United States has a particular interest in bringing to justice those who seek to steal from other by making and using counterfeit Federal Reserve Notes. The sentences in this case demonstrate that those who do so will spend significant time repaying what they have tried to steal, both from the victimized businesses and the public. Thanks to the diligence of the store employees and fast action from the police, these two were caught and could not spend any more of the counterfeit money they had made.” said United States Attorney Michael J. Moore.
The case was investigated by the United States Secret Service, Valdosta Police Department and Quitman Police Department. Assistant United States Attorney Robert D. McCullers prosecuted the case for the Government.Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office (478/621-2603).
November 2014 ElectionsRead the Press Release
Follow @NDFLNewsTALLAHASSEE, FLORIDA -- Assistant United States Attorney Christopher P. Canova will lead the efforts of the United States Attorney's Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Canova has been appointed to serve as the District Election Officer 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.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls. The Department’s long-standing Election Day Program seeks to ensure public confidence in the integrity of the election process by providing local points of contact for the public to report election violations while the polls are open on Election Day. This program deters election fraud and discrimination by increasing the Department’s ability to prosecute these offenses whenever and wherever they occur.
United States Attorney Pamela C. Marsh said, “It is the mission of the Department of Justice to act promptly and aggressively to protect the integrity of the election process. Discrimination, voter interference, and election fraud will not be tolerated. I encourage anyone with knowledge of voting abuses or election fraud to immediately contact my office, the FBI, or the Department of Justice, so that we may ensure an open and fair election process."
Federal law protects against such crimes as harassing, 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. Further, federal law protects the right of voters to be assisted by a person of their choice.
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, AUSA/District Election Officer Christopher P. Canova will be on duty in this District while the polls are open. He can be reached at
(850) 942-8430.The FBI will also have Special Agents available in each field office and resident agency in the Northern District of Florida to receive and respond to allegations of election fraud, voter intimidation, voter suppression, and other election abuses. The FBI can be reached by the public at (904) 248-7000.
Complaints about possible violations of federal voting rights laws can be made directly to the Civil Rights Division=s Voting Section in Washington at (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.
North Carolina Man Sentenced to over 21 Years in Prison for Meth ConspiracyRead the Press Release
NORFOLK, Va. – Lester Keith Gunter, a/k/a “Gunner,” 45, of Hazelwood, North Carolina, was sentenced today to 262 months in prison, followed by eight years of supervised release for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
According to court documents, Gunter and his co-conspirators were a group of affiliated methamphetamine distributors operating in the Haywood County, North Carolina area who, from late 2011 through early 2013, sold large quantities of methamphetamine to a series of Norfolk-based redistributors.
Gunter was indicted in a superseding indictment filed on July 9, 2014 and was found guilty by a federal jury on July 18, 2014. Co-conspirators Rhonda Jo Raxter, John Clinton Cathey, and Jerimy Dayne Dennis pled guilty prior to the superseding indictment. Rhonda Jo Raxter, a/k/a “Rhonda Jo Aurand,” pled guilty on June 4, 2014 and was sentenced to 60 months in prison. John Clinton Cathey, a/k/a “Cat Hair,” pled guilty on July 2, 2014 and was sentenced to 36 months in prison. Jerimy Dayne Dennis, a/k/a “Worm,” pled guilty on June 12, 2014 and was sentenced to 75 months in prison.
This case was investigated by Homeland Security Investigations, the Virginia Beach Police Department and the Haywood County (NC) Sheriff’s Office. Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:13-cr-176.
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New York Man Sentenced for Selling Counterfeit GoodsRead the Press Release
United States Attorney Brendan V. Johnson announced that a New York man convicted of Trafficking in Counterfeit Goods or Services was sentenced on October 17, 2014, by U.S. Chief Judge Jeffrey L. Viken, U.S. District Court.
Samuel Ascolese, age 45, was sentenced to 12 months and 1 day of imprisonment, 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $72,652.99 in restitution.
In August 2013, during the Sturgis Motorcycle Rally, Ascolese, owner of Custom Tattoo Apparel, knowingly sold counterfeit T-Shirts. The counterfeits were from many different trademark holders including Monster Energy, Sons of Anarchy (20th Century Fox), Honda, Acura, Jack Daniels, Ford/Powerstroke, Cummins, Kawasaki, Suzuki, Dodge/Mopar/Chrysler, and Browning.
The investigation was conducted by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations. Assistant U.S. Attorney Sarah B. Collins prosecuted the case. Ascolese was immediately turned over to the custody of the U.S. Marshals Service.
Navajo Man from Arizona Sentenced to Eight Years for Aggravated Sexual Assault ConvictionRead the Press Release
ALBUQUERQUE – Vernon J. Atcitty, 29, an enrolled member of the Navajo Nation who resides in Sweetwater, Ariz., was sentenced today for his aggravated sexual assault conviction. Atcitty will serve an eight-year prison term followed by five years of supervised release. He also will be required to register as a sex offender after he completes his prison sentence.
Atcitty was arrested on Feb. 26, 2014, on a criminal complaint charging him with aggravated sexual abuse, and subsequently was indicted on that same charge on March 11, 2014. According to court filings, Atcitty sexually assaulted a Navajo woman on Feb. 22, 2014, in Shiprock, N.M., which is located within the Navajo Indian Reservation.
On May 23, 2014, Atcitty entered a guilty plea to the indictment. Atcitty admitted taking the victim to an abandoned house and refusing to let her leave until after he raped her. Atcitty admitted forcing the victim to succumb to his demands by punching and grabbing her, and by telling her that he would not let her leave the abandoned house.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety with assistance from the Farmington office of the FBI, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Muskegon Computer Professional Sentenced to Four Years in Prison for Defrauding Catholic Health SystemRead the Press Release
Creighton Goins Ordered To Repay $921,158 To Trinity Health
GRAND RAPIDS, MICHIGAN – Creighton Lonel Goins, 45, of Muskegon, was sentenced to 48 months in federal prison for fraudulently stealing technology equipment paid for by his employer and reselling those items on the Internet. Goins was ordered to pay $921,158 in restitution to the victim of the scheme, Trinity Health. He will serve three years of supervised release after his prison sentence. Goins was immediately remanded to the custody of the U.S. Marshal. The Honorable Robert Holmes Bell, U.S. District Judge, imposed the sentence.
Goins pled guilty in June 2014 to one count of wire fraud in a scheme involving his former employer, Trinity Health, one of the largest Catholic health care delivery systems in the nation. Goins committed his scheme to defraud between 2006 and 2010 while employed by Trinity as a senior information technology services manager. Goins misused his purchase authority to buy computer equipment converted the stolen items to cash by selling them at discounted prices on the Internet. At the height of the fraud, Goins used a freight service to ship an entire pallet of computer equipment to a warehouse and distribution facility in New York for delivery to one of his regular purchasers of the stolen items.
U.S. Attorney Patrick Miles, Jr. said, “Trinity Health provided Mr. Goins with a good job, promoted him to management, and entrusted him with the supervision of the information technology system for one of its subsidiaries, Mercy Health Partners. In return, Goins systematically stole more than $900,000 over four years that went undetected because of his position and deceptive conduct. This sentence will punish him for stealing from a non-profit community health organization that provides free or reduced health care services in the Muskegon area, and should deter others from committing this type of crime.”
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Christopher O’Connor..
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Montana Man Sentenced for Health Care FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Colstrip, Montana, man convicted of Health Care Fraud was sentenced on October 16, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Dean L. Hodges, age 59, was sentenced to 2 years of probation, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and restitution in the amount of $686.
Hodges was indicted for Theft in Connection with Health Care, Health Care Fraud, False Statements Relating to Health Care Matters, and Acquiring Controlled Substances by Fraud by a federal grand jury on February 19, 2014. He pled guilty to Health Care Fraud on June 30, 2014.
The conviction stems from Hodges, while employed by the Indian Health Services as the Chief Pharmacist for the Kyle Health Center, taking Hydrocodone and Codeine for his own use between January and October 2013.
This case was investigated by the Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Middleboro Man Sentenced to 13 Years on Child Assault CrimeRead the Press Release
BOSTON – Keith Gage, 43, of Middleboro, was sentenced yesterday for coercing and enticing a minor for the purpose of engaging in sexual intercourse. U.S. District Judge F. Dennis Saylor IV sentenced Gage to 13 years in prison and five years of supervised release. Gage is also required to register as a sex offender, and must refrain from contact with his victim during the period of his incarceration and supervised release. In July 2014, Gage pleaded guilty.
Gage met the 14-year-old victim on TeenSpot.com, a website designed for young teens but which has been increasingly used by predators to contact young victims. He persuaded her to meet with him and engage in sexual intercourse on multiple occasions. Gage also videotaped his victim performing sexual acts. Gage was apprehended when the victim came forward and reported his criminal acts, at which time an undercover federal agent assumed the victim’s identity online, ultimately leading to Gage’s arrest.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Easton Chief of Police Allen Krajcik, made the announcement today. This case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Miami Resident Sentenced for Identity Theft Schemes Involving Fraudulent Social Security Benefits and Income Tax Refunds After Initially Failing to AppearRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General (OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Emmanuel A. Adeife, of Miami, was sentenced today to 76 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $321,213.70.
Adeife previously pled guilty today to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and one count of failure to appear, in violation of Title 18, United States Code, Sections 3146(a)(1) and 3146(b)(1)(A)(ii).
According to court documents, from January to October 2013, Adeife filed approximately 112 Social Security Retirement Income Benefit (RIB) claims using names, dates of births, and social security numbers belonging to real people without their permission. Adeife directed that the RIB payments be paid onto prepaid debit cards in his control from which he made ATM withdrawals and conducted other transactions. He received RIB payments totaling $194,213.70 in connection with 45 of the claims.
On October 18, 2013, the grand jury returned an Indictment charging Adeife with access device fraud and aggravated identity theft (Case No. 13-20803-CR-Zloch), and Adeife was granted a bond. The Court later set a change of plea hearing for March 6, 2014 in this case, but Adeife knowingly failed to appear at the hearing, despite his attendance being required as a condition of his previous release. Adeife remained a fugitive until his second arrest on June 20, 2014.
After Adeife’s failure to appear, the law enforcement investigation into Adeife’s whereabouts revealed that he continued on the same conduct involving stolen identity fraud. Law enforcement analysis of the debit cards associated with Adeife revealed that Adeife, while on bond, filed stolen identity tax returns seeking approximately $198,000 in fraudulent refunds, of which he actually received approximately $127,000.
Mr. Ferrer commended the investigative efforts of SSA-OIG and IRS-CI. The case was prosecuted by Assistant U.S. Attorney Frank R. Maderal.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Member of FARC Terrorist Organization Sentenced to 27 Years in Prison on Hostage-Taking Charges in 2003 Capture of U.S. CitizensRead the Press Release
Alexander Beltran Herrera, 38, a commander of the Fuerzas Armadas Revolucionarias de Colombia (FARC) terrorist organization, was sentenced today to 27 years in prison on federal hostage-taking charges stemming from the 2003 capture of three U.S. citizens in Colombia. All told, members of the FARC held the Americans hostage for 1,967 days.
The sentence was announced by John P. Carlin, Assistant Attorney General for National Security, Ronald C. Machen Jr., U.S. Attorney for the District of Columbia and George L. Piro, Special Agent in Charge of the FBI’s Miami Division.
Beltran Herrera, aka Jhon Alexander Beltrain Herrera, aka Rodrigo Pirinolo, pled guilty on March 18, 2014, in the U.S. District Court for the District of Columbia, to three counts of hostage-taking. He was sentenced by the Honorable Senior Judge Royce C. Lamberth.
“In February 2003, the FARC – a Colombian terrorist organization – kidnapped three American citizens and held them captive for nearly 2,000 days,” said Assistant Attorney General Carlin. With the sentence handed down today, Alexander Beltran Herrera is being held accountable for his role in those offenses. This case underscores our resolve to pursue and bring to justice those who target our citizens with violence anywhere in the world. I want to thank all of the prosecutors, agents, and analysts who made this result possible.”
“This Colombian terrorist will spend the next 27 years in an American prison for his role in holding three U.S. citizens captive overseas,” said U.S. Attorney Machen. “Our fellow citizens were held hostage for more than five years under brutal conditions. This extradition, prosecution, and incarceration should chasten terrorists who doubt our resolve to serve justice on those who harm American citizens on foreign soil.”
“Alexander Beltran Herrera, a former terrorist commander for the Fuerzas Armadas Revolucionarias de Colombia (FARC), will now be held accountable for his role in holding three U.S. citizens hostage in Colombia for 1,967 days,” said Kelly M. Darden, Acting Special Agent in Charge of the FBI’s Miami Division. “Essential to bringing Beltran Herrera to justice was our close cooperation with the Colombian National Police.”
According to the government’s evidence, the FARC is an armed, violent organization in Colombia. Since its inception in 1964, it has engaged in an armed conflict to overthrow the Republic of Colombia, South America’s longest-standing democracy. The FARC has consistently used hostage taking as a primary technique in extorting demands from the Republic of Colombia, and hostage taking has been endorsed and commanded by FARC senior leadership. The FARC has characterized American citizens as “military targets” and has engaged in violent acts against Americans in Colombia, including murders and hostage taking. The FARC was designated as a foreign terrorist organization by the U.S. Secretary of State in 1997 and remains so designated.
Beltran Herrera, a commander in the FARC, was involved in the hostage taking of three United States citizens: Marc D. Gonsalves, Thomas R. Howes, and Keith Stansell. These three, along with Thomas Janis, a United States citizen, and Sergeant Luis Alcides Cruz, a Colombian citizen, were seized on Feb. 13, 2003, by the FARC, after their single-engine aircraft made a crash landing in the Colombian jungle.
Members of the FARC murdered Janis and Cruz near the crash site. Gonsalves, Howes, and Stansell were held by the FARC at gunpoint and were advised by FARC leadership that they would be used as hostages to increase pressure on the government of Colombia to agree to the FARC’s demands. At various times, the FARC marched the hostages from one site to another, placing them in the actual custody of various FARC fronts.
At the conclusion of one 40-day long march, in or about November 2004, the hostages were delivered to members of the FARC’s 27th Front, who imprisoned the hostages for nearly two years. During part of this period, Beltran Herrera was responsible for moving the hostages and keeping them imprisoned. Throughout the captivity of these three hostages, FARC jailors and guards used choke harnesses, chains, padlocks and wires to restrain the hostages, and used force and threats to continue their detention and prevent their escape. In July 2008, the Colombian military conducted a daring operation which resulted in the rescue of the hostages.
Beltran Herrera was indicted in February 2011 and was extradited to the United States from Colombia in March 2012.
This case was investigated by the FBI’s Miami Division. The prosecution was handled by Assistant U.S. Attorneys Anthony Asuncion and Fernando Campoamor-Sanchez from the National Security Section of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney David Cora, from the Counterterrorism Section of the Justice Department’s National Security Division. The case was indicted by Assistant U.S. Attorney Kenneth Kohl, of the National Security Section of the U.S. Attorney’s Office.
The FBI’s Miami Division partnered in the investigation with the Justice Department’s Office of International Affairs, the Department’s Judicial Attachés in Colombia, and the FBI’s Office of the Legal Attaché in Bogota, Colombia. The Directorate of Intelligence (DIPOL) and the Anti-Kidnapping Unit (GAULA) of the Colombian National Police also provided valuable support during the investigation.
Member of FARC Terrorist Organization Sentenced to 27 Years in PrisonRead the Press Release
On Hostage-Taking Charges in 2003 Capture of U.S. Citizens
Hostages Were Held in Colombia for More Than Five YearsWASHINGTON – Alexander Beltran Herrera, 38, a commander of the Fuerzas Armadas Revolucionarias de Colombia (FARC) terrorist organization, was sentenced today to 27 years in prison on federal hostage-taking charges stemming from the 2003 capture of three U.S. citizens in Colombia. All told, members of the FARC held the Americans hostage for 1,967 days.
The sentence was announced by John P. Carlin, Assistant Attorney General for National Security, Ronald C. Machen Jr., U.S. Attorney for the District of Columbia and George L. Piro, Special Agent in Charge of the FBI’s Miami Division.
Beltran Herrera, aka Jhon Alexander Beltrain Herrera, aka Rodrigo Pirinolo, pled guilty on March 18, 2014, in the U.S. District Court for the District of Columbia, to three counts of hostage-taking. He was sentenced by the Honorable Senior Judge Royce C. Lamberth.
“In February 2003, the FARC – a Colombian terrorist organization – kidnapped three American citizens and held them captive for nearly 2,000 days,” said Assistant Attorney General Carlin. With the sentence handed down today, Alexander Beltran Herrera is being held accountable for his role in those offenses. This case underscores our resolve to pursue and bring to justice those who target our citizens with violence anywhere in the world. I want to thank all of the prosecutors, agents, and analysts who made this result possible.”
“This Colombian terrorist will spend the next 27 years in an American prison for his role in holding three U.S. citizens captive overseas,” said U.S. Attorney Machen. “Our fellow citizens were held hostage for more than five years under brutal conditions. This extradition, prosecution, and incarceration should chasten terrorists who doubt our resolve to serve justice on those who harm American citizens on foreign soil.”
“Alexander Beltran Herrera, a former terrorist commander for the Fuerzas Armadas Revolucionarias de Colombia (FARC), will now be held accountable for his role in holding three U.S. citizens hostage in Colombia for 1,967 days,” said Kelly M. Darden, Acting Special Agent in Charge of the FBI’s Miami Division. “Essential to bringing Beltran Herrera to justice was our close cooperation with the Colombian National Police.”
According to the government’s evidence, the FARC is an armed, violent organization in Colombia. Since its inception in 1964, it has engaged in an armed conflict to overthrow the Republic of Colombia, South America’s longest-standing democracy. The FARC has consistently used hostage taking as a primary technique in extorting demands from the Republic of Colombia, and hostage taking has been endorsed and commanded by FARC senior leadership. The FARC has characterized American citizens as “military targets” and has engaged in violent acts against Americans in Colombia, including murders and hostage taking. The FARC was designated as a foreign terrorist organization by the U.S. Secretary of State in 1997 and remains so designated.
Beltran Herrera, a commander in the FARC, was involved in the hostage taking of three United States citizens: Marc D. Gonsalves, Thomas R. Howes, and Keith Stansell. These three, along with Thomas Janis, a United States citizen, and Sergeant Luis Alcides Cruz, a Colombian citizen, were seized on Feb. 13, 2003, by the FARC, after their single-engine aircraft made a crash landing in the Colombian jungle.
Members of the FARC murdered Janis and Cruz near the crash site. Gonsalves, Howes, and Stansell were held by the FARC at gunpoint and were advised by FARC leadership that they would be used as hostages to increase pressure on the government of Colombia to agree to the FARC’s demands. At various times, the FARC marched the hostages from one site to another, placing them in the actual custody of various FARC fronts.
At the conclusion of one 40-day long march, in or about November 2004, the hostages were delivered to members of the FARC’s 27th Front, who imprisoned the hostages for nearly two years. During part of this period, Beltran Herrera was responsible for moving the hostages and keeping them imprisoned. Throughout the captivity of these three hostages, FARC jailors and guards used choke harnesses, chains, padlocks and wires to restrain the hostages, and used force and threats to continue their detention and prevent their escape. In July 2008, the Colombian military conducted a daring operation which resulted in the rescue of the hostages.
Beltran Herrera was indicted in February 2011 and was extradited to the United States from Colombia in March 2012.
This case was investigated by the FBI’s Miami Division. The prosecution was handled by Assistant U.S. Attorneys Anthony Asuncion and Fernando Campoamor-Sanchez from the National Security Section of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney David Cora, from the Counterterrorism Section of the Justice Department’s National Security Division. The case was indicted by Assistant U.S. Attorney Kenneth Kohl, of the National Security Section of the U.S. Attorney’s Office.
The FBI’s Miami Division partnered in the investigation with the Justice Department’s Office of International Affairs, the Department’s Judicial Attachés in Colombia, and the FBI’s Office of the Legal Attaché in Bogota, Colombia. The Directorate of Intelligence (DIPOL) and the Anti-Kidnapping Unit (GAULA) of the Colombian National Police also provided valuable support during the investigation.
14-241Medical Assistant Sentenced for Stealing Patients’ Identities from the Memorial Healthcare System DatabaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that La Toya Yvette Tillman, 33, of Hollywood, was sentenced today to 36 months in prison, followed by three years of supervised release.
Tillman previously pled guilty to one count of possessing fifteen or more unauthorized access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Tillman, who worked as a medical assistant at Gastroenterology Consultants in Hollywood, confessed to accessing the Memorial Healthcare System database through her computer at work to steal patient identities, including names, dates of birth, and social security numbers, so that she could sell them. She sold an individual approximately 2,000 identities for $1 each, and the individual told her that he used the identities to file fraudulent tax returns. In addition, in her car, Tillman had a list of 114 identities that included names, dates of birth, and social security numbers. Tillman knew that the victims did not authorize her to possess their personal identifying information.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Vanessa Snyder.
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.
Massachusetts Man Sentenced to 21 Months in Prison for Role in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
Defendant Managed a “Cash-Out” Crew for Organization that Allegedly Capitalized on Information Hacked From Customers of More Than a Dozen Global Financial Institutions
TRENTON, N.J. – A member of an international cybercrime, identity theft and credit card fraud conspiracy was sentenced today to 21 months in prison for using information hacked from customer accounts held at more than a dozen banks, brokerage firms, payroll processing companies and government agencies in an attempt to steal at least $15 million from American customers, U.S. Attorney Paul J. Fishman announced.
Robert Dubuc, 41, of Malden, Massachusetts, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of wire fraud conspiracy and one count of conspiracy to commit access device fraud and identity theft. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Both Dubuc and Oleg Pidtergerya, 50, of Brooklyn, New York, were asked by leaders of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 34, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Pidtergerya managed a cash-out crew in New York for Sharapka and Yanovitsky, and defendant Dubuc controlled a cash-out crew in Massachusetts for the organization.
Conspiring hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money to other bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated “cash-out” operation, employing crews of individuals known as “cashers” to withdraw the stolen funds from the fraudulent accounts, among other ways, by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.
During their guilty plea proceedings, Pidtergerya and Dubuc admitted they were aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. Both men admitted coordinating ATM and bank withdrawals of the stolen funds. In addition they admitted to sending proceeds of the fraud to Sharapka and Yanovitsky in Ukraine.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
In addition to the prison term, Judge Sheridan sentenced Dubuc to serve three years of supervised release and pay restitution in the amount of $338,685. Sentencing for Pidtergerya is scheduled for Dec. 22, 2014.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the ongoing investigation.
The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the U.S. Attorney’s Office in Newark.
The charges contained in the indictment against Sharapka and Yanovitsky are merely allegations and the defendants are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel:
Dubuc: Angelo Servidio Esq., Nutley, N.J.Marion Man Ordered to Pay Restitution, FineRead the Press Release
A Marion man was ordered to pay restitution and a fine and was sentenced to a term of probation following his conviction on a charge of making and causing a false statement on an annual statement regarding a company 401k plan, said Steven M. Dettelbach, United States Attorney.
John Richard Blazer, 68, was sentenced by Senior U.S. District Judge James G. Carr, who also imposed a $2,800 fine.
Blazer was charged in 2013 with several felony violations. His conduct involved a company named Neo-Wood Manufacturing, Inc., located in Alvada, Ohio. Neo-Wood, which was owned by John E. Werner III, maintained a 401k profit-sharing plan for its employees. Werner was also the sole trustee of the 401k plan. The Neo-Wood plan was subject to the Employee Retirement Income Security Act (ERISA), and under that Act, Neo-Wood was required to submit an annual financial report (Form 5500), which required among other items a report of assets held by the plan, and a disclosure of prohibited transactions with parties-in-interest to the plan, according to court documents.
On or about January 28, 2008, Blazer induced Werner to remove $28,000 from the Neo-Wood plan, and send that money to Blazer. Shortly thereafter, Blazer returned to Werner personally $25,200, or 90 percent of the money removed, and Blazer kept $2,800. This transaction was done by Werner and Blazer without the knowledge or authorization of the Neo-Wood employees, and the withdrawal left virtually no funds in the plan, according to court documents.
On or about April 30, 2009, an annual Form 5500 was submitted to the U.S. Department of Labor by Werner at Neo-Wood. The Form 5500 falsely reported that the $28,000 removed by Werner and Blazer remained in the plan as an asset. The Form 5500 also falsely omitted the commission of a prohibited transaction with the transfer through Blazer to Werner personally, according to court documents.
Prior to the taking of the $28,000, there had been three prior transfers totaling $140,000 in funds removed from the Neo-Wood 401k plan and given to Blazer. As a result of this investigation and prosecution, prior to Blazer’s guilty plea, $221,649 in restitution was paid by Blazer to the custodian of the Neo-Wood plan. This restitution payment, which included interest, resulted in restoring almost all of the improperly-removed funds to the Neo-Wood employee 401k accounts.
This case was investigated by the Employee Benefits Security Administration of the U.S. Department of Labor. The case was prosecuted by Assistant U.S. Attorneys Thomas Karol and James V. Moroney.
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Guilty Plea of Bank Employee to Insider Trading ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that DAVID POST pled guilty today in Manhattan federal court to one count of conspiracy to commit securities fraud and three counts of securities fraud in connection with an insider trading scheme in which POST received material, nonpublic information from a co-conspirator (“CC-1”) who worked for a pharmaceutical company (the “Pharma Company”). POST then made profitable securities trades based on the information provided by CC-1 and reaped over $700,000 in profits. The information concerned potential and actual corporate transactions, including acquisitions. POST pled guilty before U.S. District Judge Alvin K. Hellerstein.
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against POST.
According to the Information and statements made at today’s plea proceeding in Manhattan federal court:
From at least 2010 through August 2014, POST engaged in an insider trading scheme involving trading around information related to the acquisitions of certain pharmaceutical companies. POST received material, nonpublic information related to potential acquisitions from CC-1, who was a Senior Finance Analyst in the Financial Evaluation and Analysis Group of the Pharma Company. POST and CC-1 communicated with each other via disposable cellphone to disguise their communications. As part of his employment, CC-1 performed work in connection with numerous potential and actual corporate transactions, including acquisitions. CC-1 also had access to a computer directory maintained by the Pharma Company which contained material, nonpublic information related to potential acquisitions by the Pharma Company.
POST on multiple occasions received from CC-1 material, nonpublic information related to future acquisitions by the Pharma Company, including the identities of companies that were in negotiations with the Pharma Company for potential acquisitions (the “Target Companies”). POST then traded in the securities of the Target Companies. The Target Companies were subsequently acquired, in one instance by the Pharma Company, and the prices of the shares of the Target Companies increased after the acquisitions were announced publicly. POST then sold his positions in the shares of the Target Companies, thereby profiting from the movement in stock price. From this illegal trading, POST earned profits in excess of $737,000. POST gave approximately $57,000, in cash, of his illegal proceeds to CC-1, as part of CC-1’s share of the scheme’s profits.
POST, 42, of Livingston, New Jersey, pled guilty to one count of conspiracy to commit securities fraud and three counts of securities fraud. The conspiracy count carries a maximum sentence of five years in prison. The three counts of securities fraud each carry a maximum of 20 years in prison. POST also faces a maximum fine of $5,000,000, or twice the gross gain or loss from the offense on the conspiracy count, and agreed as part of his plea agreement to forfeit the proceeds he obtained as a result of the offenses. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. POST is scheduled to be sentenced by Judge Hellerstein on February 6, 2015 at 11:00 a.m.
Mr. Bharara praised the investigative work of the FBI. He also thanked the SEC for its assistance.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jessica Masella and Edward Kim are in charge of the prosecution.
U.S. v. David Post Information
Manager/Owner of Pain Clinic Convicted of Conspiracy, Distribution of A Controlled Substance and Money Laundering F0llowing Jury TrialRead the Press Release
DENVER -- Keith A. Schwartz, age 47, of Silverthorne, Colorado, was found guilty today of conspiracy, distribution of a controlled substance and money laundering following a 14-day jury trial before Senior U.S. District Court Judge John L. Kane. The jury deliberated for a day and a half before reaching their verdict. A sentencing date has not yet been set. Schwartz, who has been in custody since his indictment, was remanded following the jury verdict. This is the first case of its kind that has gone to a jury trial in the U.S. District Court in the District of Colorado.
Schwartz was indicted by a federal grand jury in Denver on May 22, 2013. He was found guilty of one count of conspiracy to distribute and dispense controlled substances, prescription drugs outside the course of usual professional medical practice, two counts of distribution and dispensing a controlled substance and aiding and abetting the same, four counts of use of a telephone to facilitate a drug crime, one count of conspiracy to commit money laundering, and 36 counts of money laundering. The defendant was found not guilty of two counts of use of a telephone to facilitate a drug crime and two counts of money laundering.According to the indictment and evidence presented at trial, Schwartz, in conjunction with co-conspirators, all of but one of whom have previously pled guilty, knowingly conspired and agreed to dispense and distribute, or facilitate the dispensing and distribution of controlled substances, to patients at times and in circumstances outside the usual course of professional medical practice. He then laundered the proceeds from the patients through bank accounts in his wife’s name. The patients didn’t have a sufficient medical necessity for the prescription of the controlled substances. The primary prescription drug involved in the case was Oxycodone, with over one half million dosage units prescribed in an 18 month period.
Specifically, Schwartz, using an alias, approached a pain doctor named Kevin Clemmer in May of 2011, who at the time was housed in the Federal Detention Center in Englewood, Colorado after his indictment for the unlawful prescription of controlled substances. Schwartz offered to purchase the list of Clemmer’s patient lists, most of whom received substantially more narcotic or other controlled substance medication than was medically necessary.
That same month, after obtaining the patient list, Schwartz, and his co-conspirators, first saw Dr. Clemmer’s patients in a Holiday Inn in Wheat Ridge, Colorado, where they enlisted and worked with co-conspirator Dr. Joseph Ferrara, who was registered with the DEA to write prescriptions for controlled substances. The pain clinic eventually moved into office space, and Schwartz, who was the owner, manager, organizer and operator, had direct communications with patients regarding Dr. Ferrara’s treatment regimen. The defendant induced Dr. Ferrara to unlawfully write opioid and benzodiazepine prescriptions in large numbers to addicted patients – the amounts of which far exceeded the amount medically necessary and safe to use. In fact, the government presented expert testimony that proved that many of the controlled substance prescriptions written were up to four times the safe medical limit. As a result of the unlawful distribution of controlled substances, medication prescribed by Schwartz’s pain clinic contributed to the death of at least three patients.
The relationship among the co-conspirators began in the summer of 2009, when Schwartz recruited and Dr. Ferrara to write medical marijuana recommendations to support Schwartz’s marijuana grow in his house. During 2009 and 2010, the medical marijuana business expanded to include travel throughout the state of Colorado, where Dr. Ferrara wrote medical marijuana recommendations. In May of 2011, the conspiracy shifted its primary focus to distribution of prescription controlled substances while also maintaining the medical marijuana recommendation business.
Schwartz laundered the money obtained by the pain clinic by placing it in bank accounts in corporations in the name of his wife. Schwartz used some of the illegally obtained money to purchase his $1.6 million house out of foreclosure.
Schwartz faces up to life in federal prison, as well as a fine of not more than $1,000,000 for his convictions.
This case was investigated by the Tactical Diversion Squad of the DEA, which includes members of the IRS Criminal Investigation and the Greenwood Village Police Department. The Arvada Police Department assisted in the investigation as well.The defendant is being prosecuted by Assistant U.S. Attorney M.J. Menendez.
Man Faces up to 10 Years in Federal Prison for Sending Obscene Material to A Lubbock Police Officer Posing Online as A 13 Year-Old Female in an Undercover OperationRead the Press Release
LUBBOCK, Texas — A 52-year-old League City, Texas, man appeared in federal court in Lubbock, Texas, this morning and pleaded guilty to a federal child obscenity offense, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Nilanjan Brahma pleaded guilty before U.S. District Judge Sam R. Cummings to one count of attempted transfer of obscene materials to a minor. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine, and three years of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Brahma remains on bond.
According to plea documents filed in the case, from approximately April 25, 2011, through February 19, 2012, Brahma engaged in a series of communications, via messaging, texting,, and telephone, with a person he believed to be a 13-year-old female, “Jane Doe,” who represented that she lived in Lubbock, Texas. In fact, Jane Doe was an undercover officer with the Lubbock Police Department.
On April 25, 2011, Brahma chatted with Jane Doe and sent her nine photographs. Five of those photographs depict an adult male engaged in sexually explicit conduct and are considered obscene.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Lubbock Police Department, the FBI, and the League City Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Louisiana Man Sentenced to Eight Months in Prison for Abusive Sexual Contact of Sleeping Woman on Flight to New JerseyRead the Press Release
Also Must Register as Sex Offender
NEWARK, N.J. - A Louisiana man was sentenced today to eight months in prison for sexually touching a sleeping woman who did not know him aboard a flight from Houston to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Devender Singh, 62, an Indian national who lives in Baton Rouge, Louisiana, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with abusive sexual contact. Judge Chesler imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Singh was seated next to a woman who occupied a window seat on a United Airlines flight from Houston to Newark. While the plane was in the air, the woman fell asleep. She awoke to find Singh kissing her face with his hand inside her shirt.
After pushing Singh off of her and telling him to get away, the woman went to the back of the plane and told a flight crew member what had happened, asking that the police be present when the plane landed.
The federal government has exclusive jurisdiction over all sexual abuse cases that occur on aircraft in flight in the United States.
In addition to the prison term, Judge Chesler sentenced Singh to serve two years of supervised release and required him to register as a sex offender.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation.
The government is represented by J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark.14-388
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Justice Department Settles Immigration-Related Discrimination Claim Against Hearing Services CompanyRead the Press Release
The Justice Department announced today that it reached an agreement with Serendipity Hearing Inc., doing business as Sonus Hearing Care (Sonus), a hearing services provider headquartered in the Los Angeles, California, metropolitan area. The agreement resolves a claim, filed with the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), that the company violated the Immigration and Nationality Act (INA) by engaging in discriminatory documentary practices during the employment eligibility verification process.
The department’s investigation found that Sonus required the complainant, a lawful permanent resident it had hired, to produce a new employment eligibility document when her Permanent Resident Card expired, even though the Form I-9 and E-Verify rules prohibit this practice because lawful permanent residents have permanent work authorization in the United States after their Permanent Resident Cards expire. When the complainant failed to present her new Permanent Resident Card, Sonus terminated her. The INA’s anti-discrimination provision prohibits employers from making additional and unauthorized documentary demands based on citizenship status or national origin when verifying or re-verifying an employee’s employment eligibility.
“The Civil Rights Division is committed to identifying and tearing down discriminatory barriers that prevent work-authorized individuals from employment,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Division commends Sonus for working to resolve this matter expeditiously.”
Under the settlement agreement, Sonus will pay $16,727 in back pay to the charging party and $400 in civil penalties to the United States, undergo training on the anti-discrimination provision of the INA, revise its employment eligibility re-verification policies and be subject to monitoring of its employment eligibility verification practices.
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation. This matter was handled by Trial Attorney Luz V. Lopez-Ortiz and Paralegal Specialist Ryan Thompson.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship status, immigration status, or national origin, or discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Joint Press Release by Arkansas United States Attorneys Relating to November 2014 ElectionsRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Connor Eldridge, United States Attorney for the Western District of Arkansas, announced today that Assistant United States Attorney (AUSA) Tricia Harris and First Assistant United States Attorney (FAUSA) Kenny Elser will lead the efforts of their Offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Harris has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Arkansas, and FAUSA Elser will serve as the DEO for the Western District of Arkansas. As DEOs, they are responsible for overseeing their District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
In a joint statement, United States Attorneys Thyer and Eldridge 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, AUSA/DEO Harris will be on duty in the Eastern District and FAUSA/DEO Elser will be on duty in the Western District while the polls are open. They can be reached by the public at the following telephone numbers: AUSA Harris- 501-340-2600; FAUSA Elser- 479-494-4071.
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. FBI special agents will be available on election day in Arkansas and can be reached by the public at 501-221-9100.
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 Attorneys Thyer and Eldridge 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.”
International Hacker SentencedRead the Press Release
ATLANTA - Sergei Nicolaevich Tšurikov has been sentenced to eleven years in prison for conspiracy to commit wire fraud and computer intrusion for his involvement in an elaborate scheme which stole over $9.4 million from a credit card processor.
“A leader of one of the most sophisticated cybercrime rings in the world has been brought to justice and sentenced,” said United States Attorney Sally Quillian Yates. “In just one day in 2008, an American credit card processor was hacked in perhaps one of the most sophisticated and organized computer fraud attacks ever conducted. Almost exactly one year later, the leaders of this attack were charged. This prosecution was successful because of the efforts of the victim, and unprecedented cooperation from various law enforcement agencies worldwide.”
According to United States Attorney Yates, the charges and other information presented in court: During November 2008, Tšurikov and others obtained unauthorized access into the computer network of RBS WorldPay, what was then the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta, Ga. The group used sophisticated hacking techniques to compromise the data encryption that was used by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM.
Once the encryption on the card processing system was compromised, the hacking ring raised the account limits on compromised accounts, and then provided a network of cashers with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan and Canada. The $9 million loss occurred within a span of less than 12 hours.
The hackers then sought to destroy data stored on the card processing network in order to conceal their hacking activity. The cashers were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to Tšurikov and his co-defendants. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.
Throughout the duration of the cashout, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.Tšurikov, 30, of Tallinn, Estonia was sentenced by United States District Judge Steve C. Jones to eleven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $8,400,000. Tšurikov pleaded guilty to these charges on September 11, 2012.
This case was investigated by Special Agents of the Federal Bureau of Investigation. Assistance was provided by international law enforcement partners. The United States Secret Service also participated in the investigation. RBS World Pay immediately reported the crime and has substantially assisted in the investigation.
Assistant United States Attorneys Lawrence R. Sommerfeld and Kamal Ghali prosecuted the case. Assistance was provided by the Justice Department Criminal Division’s Computer Crime and Intellectual Property Section and the Office of International Affairs.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Indictment Unsealed Charging Oklahoma City Attorney with Conspiracy Involving Travel from Oklahoma City to Peru to Engage in Sex with Children Under 18Read the Press Release
Oklahoma City, Oklahoma – Today, a federal grand jury indictment was unsealed charging MICHAEL DEAN BILLINGS, 59, an attorney from Oklahoma City, with conspiracy involving travel from Oklahoma City to Iquitos, Peru to engage in illicit sex with children, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the three-count indictment, for over a decade beginning on February 2, 2003, and continuing through September 2013, Billings and others conspired to commit sex trafficking of children by recruiting and obtaining children in Peru to engage in commercial sex acts and further conspired to travel from Oklahoma City to Iquitos, Peru, to engage in illicit sexual conduct with children under 18 years of age. Specifically, the indictment includes three counts: Count 1 alleges conspiracy to commit sex trafficking of children, Count 2 alleges conspiracy to travel with intent to engage in illicit sexual conduct, and Count 3 alleges conspiracy to engage in illicit sexual conduct in foreign places. Reference is made to the indictment and court record for further information.
Billings was arrested earlier today at his law office and appeared before United States Magistrate Judge Suzanne Mitchell in Oklahoma City. He was ordered to be held without bond pending a final detention hearing will be held on Monday, October 27th at 4:00 p.m. before Judge Mitchell.
If convicted, Billings faces up to life in prison, a $250,000 fine, and registration as a sex offender for life. The public is reminded that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is the result of an investigation by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Robert Don Gifford, II, and David Petermann.
Indianapolis Man Sentenced to over 7 Years in Prison and Ordered to Pay More Than $10 Million to Victims of His Ponzi SchemeRead the Press Release
ALEXANDRIA, Va. – Timothy J. Coughlin, 63, of Indianapolis, Indiana, was sentenced today to 90 months in prison, followed by three years of supervised release, for defrauding thousands of investors and impersonating an Internal Revenue Service official while operating a fictitious credit union for the purpose of soliciting online investments. He was also ordered to pay restitution of $10,084,625.56 to more than 3,500 victims.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Andrew J. Ceresney, Enforcement Director at the U.S. Securities and Exchange Commission (SEC); and J. Russell George, Treasury Inspector General for Tax Administration (TIGTA), made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Coughlin pleaded guilty to wire fraud and impersonating a federal officialon June 25, 2014. According to court documents, from around 2006 through March 2014, Coughlin operated the Oxford International Credit Union and anotheronline investment vehicle known as the Oxford International Cooperative Union. Investors from many countries paid annual dues to participate in the Oxford entities and made investments through online payment processors. As part of the scheme, Coughlin createda website through which he posted false information to investors’ online accounts indicating that their deposits were earning significant daily returns, which averaged 0.471% each trading day from January 2007 through December 2009 (equivalent to a 356% average annual rate of return). To further the fraud, Coughlin posted a fake certificate stating that each investors’ deposits were insured up to $50,000, and he also made audio recordings in which he falsely claimed that members were earning significant returns on their investments.
By the end of 2009, Coughlin had ceased approving requests for account withdrawals from investors, claiming that taxing authorities in the United States and Canada were freezing Oxford’s assets abroad. In January 2012, Coughlin falsely announced to investors that he had reached an agreement to resolve the tax issues, and he created a fictitious agreement on which he forged the signatures of an actual IRS employee in Washington, DC, and a lawyer based in New York.
This case was investigated by the FBI’s Washington Field Office, SEC, and TIGTA. Assistant U.S. Attorney Jack Hanly prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-221.
Imposter Pleads Guilty to Using False Identification at Champlain Port of EntryRead the Press Release
ALBANY, NEW YORK – WALTER ELICER LUNA CAYSEDA, 49, of Bronx, New York, pled guilty yesterday in Plattsburgh, New York, to making a false statement and aggravated identity theft before United States District Court Judge David N. Hurd announced United States Attorney Richard S. Hartunian, and U.S. Customs Director of Field Operations, Randy Howe, Buffalo, New York. On the false statement count, LUNA CAYSEDA faces up to five years in prison, supervised release of up to 3 years, and a fine of up to $250,000. He faces an additional consecutive sentence of at least two years on the aggravated identity theft count. Sentencing is scheduled for February 20, 2015 in Utica, New York.
“Given our on-going concerns for security on our borders, it is critically important we know the people entering and leaving our country are, indeed, who they say they are,” stated U.S. Attorney Hartunian. “I commend the Department of Homeland Security and the border agents for their continued vigilance.”
As part of his guilty plea, LUNA CAYSEDA admitted that on August 26, 2014, during an immigration inspection at the Champlain Port of Entry, he gave a false name and stated that he was a United States Citizen born in Puerto Rico when he was actually a citizen of Columbia who had been removed from the United States in 1997. LUNA CAYSEDA also admitted that he used a New York State Driver’s license bearing his picture and the true biographical information of the person he was pretending to be as proof of his identity and citizenship.
The case was investigated by the Department of Homeland Security, Customs and Border Protection, Champlain, New York. The case was prosecuted by Assistant United States Attorney Edward P. Grogan.
Illinois Lawyer and Internet Radio Talk Show Host Convicted in $9.7 Million Mortgage Fraud SchemesRead the Press Release
CHICAGO — An Illinois lawyer and Internet radio talk show host was convicted today on federal charges for engaging in two mortgage fraud schemes that defrauded lenders of a total of approximately $9.7 million. The defendant, WARREN BALLENTINE, schemed with others to obtain more than two dozen fraudulent mortgage loans and represented buyers at multiple closings, knowing that they were fraudulently qualified for loans to purchase homes in Chicago and various southern suburbs.
Ballentine, 43, of Durham, N. Car., and formerly of Country Club Hills, owned the Law Office of Warren Ballentine, LLC, in Country Club Hills. He was found guilty of two counts of bank fraud, two counts of making false statements to lenders, and one count each of mail fraud and wire fraud by a jury that deliberated less than an hour total late yesterday and today following a trial that began Monday in U.S. District Court.
Ballentine remains free on bond pending sentencing, which was set for Jan. 21, 2015, before U.S. District Judge Matthew Kennelly. Ballentine faces a maximum penalty on each count of 30 years in prison and a $1 million fine or an alternate fine of twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory. Ballentine is also subject to forfeiture of more than $9.7 million.
The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
According to the evidence, between December 2004 and February 2005, Ballentine schemed with others to fraudulently cause various lenders to make at least eight loans totaling approximately $3.6 million by making false statements in loan documents, including applications, HUD-1 settlement statements, and occupancy statements concerning the buyers’ intention to occupy the homes they purchased as a primary residence. Ballentine then represented buyers recruited by others at real estate closings, knowing that they had signed and submitted false documents and had been fraudulently qualified to purchase the properties in Chicago, Monee, Woodridge, and Mokena.
Between February 2005 and May 2006, Ballentine engaged in a similar, separate scheme with others to fraudulently cause various lenders to make at least 20 loans totaling approximately $6.1 million by making false statements in mortgage documents, including the buyers’ intention to occupy the homes as a primary residence. Ballentine also represented these buyers at closings, knowing that they had been fraudulently qualified for the loans based on false documents, including some that Ballentine advised them to sign at closings. These homes were scattered throughout Chicago and other suburbs, including Country Club Hills, Richton Park, and Markham.
The guilty verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government is being represented by Assistant U.S. Attorneys Jason Yonan and Andrew S. Boutros.
Illegal Alien, Twice Deported, Arrested in Nashville-Wanted for Murder in El SalvadorRead the Press Release
Cesar Cruz-Marin, 39, a citizen of El Salvador, was arrested yesterday in Nashville and charged with unlawful re-entry into the United States, after being convicted of an aggravated felony, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Cruz-Marin was arrested following an investigation by Homeland Security Investigations and the U.S. Marshal’s Fugitive Task Force. Agents had been searching for him after being notified that he was a fugitive from El Salvador, where he was wanted for aggravated homicide, which was alleged to have occurred in December 2010. At the time of his arrest, Cruz-Marin was using the name Manuel Aguirre.
According to the criminal complaint, Cruz-Marin was deported to El Salvador from California, in 1998, after being convicted of involuntary manslaughter and serving time in prison for his part in a gang-related murder.
In July 2009 Cruz-Marin was again found in a jail in the United States and was again removed from the U.S. by Immigration officials.
If convicted, Cruz-Marin faces up to 20 years in prison and a $250,000 fine. He is also subject to deportation.This case is being investigated by the U.S. Marshal’s Fugitive Task Force and Homeland Security Investigations. The case is being prosecuted by Asst. U.S. Attorney Clay Lee.
Charges brought by a criminal complaint are merely accusations. All persons are presumed innocent unless and until proven guilty in a court of law.
Identity Theft Scheme Results in over 18 Years in Collective Prison Sentences for Three Metro-Area ResidentsRead the Press Release
Oklahoma City, Oklahoma – Sanford C. Coats, United States Attorney for the Western District of Oklahoma, announced that three individuals were sentenced yesterday to serve over eighteen years in prison collectively for their involvement in an identity theft scheme. United States District Judge Robin J. Cauthron sentenced DERRICK JAY ALBERS, 39, to 120 months in prison, RACHEL LYNN HALL, 40, to 63 months in prison, and CRYSTAL DAWN TRUITT, 29, to 40 months in prison, for their involvement the scheme. Albers, Hall, and Truitt primarily resided in and around the Oklahoma City metropolitan area during the commission of the scheme.
On March 18, 2014, a federal grand jury indicted Albers, Hall, and Truitt for conspiracy to commit wire fraud. According to court records, from June 2013 until January 2014, the defendants obtained billing and financial information, including credit card numbers, for corporate and individual third parties and used these numbers, along with merchant ID numbers belonging to corporate entities, to create what appeared to be genuine credit cards. The defendants used these cards and the fraudulent IDs they had made to purchase services and merchandise both in stores and on-line. The defendants then brokered the merchandise and services on the streets for cash and drugs.
On May 7, 2014, Albers, Hall, and Truitt each pled guilty to conspiracy to commit wire fraud.
In addition to the prison terms imposed yesterday, Judge Cauthron also ordered the defendants to pay $110,814.15 in restitution and serve three years of supervised release when they are released from prison. In pronouncing the sentences, Judge Cauthron cited to the defendants’ lengthy criminal histories, the long-lasting effects borne by the victims of the scheme, and the need to adequately deter criminal conduct.
This case is the result of investigations conducted by the Oklahoma City Economic and Identity Crimes Task Force, the United States Secret Service, the Oklahoma City Police Department, and the Midwest City Police Department. The case was prosecuted by Assistant U.S. Attorney Travis D. Smith.
Georgia Residents Charged for Their Role in Subjecting Hispanics to Unlawful Traffic StopsRead the Press Release
Today, the Justice Department announced that the Grand Jury for the Middle District of Georgia charged Miguel Angel Reyes and Gloria Gallego with conspiring with former Lowndes County Sheriff’s Deputy Jason Stacks to use Stacks’ law enforcement authority to violate Hispanic motorists’ civil rights, as well as with actually carrying out the scheme. The indictment was unsealed for Reyes yesterday and for Gallego today.
The indictment charges that Reyes and Gallego conspired with Stacks to subject Hispanic motorists to unlawful traffic stops so that the conspirators could demand that the motorists pay money in order to avoid arrest and/or deportation, in violation of the motorists’ right under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of person and property. The indictment also charges Reyes and Gallego with working with Stacks to unlawfully stop motorist T.C., and to use the threat of arrest and/or deportation to take $300 from T.C.
Additionally, the indictment charges Reyes with working with Stacks to detain motorist E.B. without probable cause or reasonable suspicion, in order to facilitate a robbery of E.B.’s home, in violation of E.B.’s rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of his person.
The civil rights conspiracy charge against Reyes and Gallego carries a maximum penalty of 10 years imprisonment. The two substantive civil rights charges against Reyes each carry a maximum penalty of one year imprisonment, and the one substantive civil rights charge against Gallego carries a maximum penalty of one year imprisonment.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Lowndes County Sheriff’s Office. The matter is being prosecuted by Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division, with support from the U.S. Attorney’s Office for the Middle District of Georgia.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless and until proven guilty.
Four Men Indicted in $1.6 Million FraudRead the Press Release
Charges Include SNAP (food stamp) Fraud, Tax Fraud, and Sale of Counterfeit Goods
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Qais Hussein, 43, and Majdi Odeh, 45, both of Swansea, Illinois, were charged on October 22, 2014, with Conspiracy to Unlawfully Acquire Supplemental Nutrition Assistance Program (SNAP) Benefits (formerly known as Food Stamp benefits), Aiding and Assisting in the Preparation and Presentation of False Tax Returns, and Trafficking in Counterfeit Goods in an Indictment returned by a Federal Grand Jury sitting in East Saint Louis, Illinois. The Indictment also charges Hossam Ahmed, 24, of Saint Louis, Missouri, and Elsayed Hassan, 24, of Belleville, in the offense of Conspiracy to Unlawfully Acquire SNAP Benefits.
For the SNAP benefit conspiracy charge, all four men face up to 5 years in federal prison, up to a $250,000 fine, and three years of supervised release. For the two tax fraud counts, Hussein and Odeh face up to 3 years in federal prison, up to a $100,000 fine, and one year of supervised release as to each of the two counts. For the trafficking in counterfeit goods charge, Hussein and Odeh face up to 10 years in federal prison, up to a $2,000,000 fine, and three years of supervised release. Each man also faces $100 special assessment for each count.
The indictment alleges that Hussein and Odeh owned and operated Garden Grill Market, Inc. and Garden Grill Market, II, Inc. in East St. Louis, Illinois. The indictment further alleges that along with Elsayed Hassan and Hossam Ahmed they conspired to illegally pay cash at about fifty-cents on the dollar for SNAP benefit funds. This conspiracy allowed Hussein and Odeh to fraudulently receive over $1.6 million in electronic transfers to their bank accounts. The indictment also alleges that they filed false tax returns based upon the unreported fraudulent SNAP payments. Finally, the Grand Jury charged that both Hussein and Odeh in operating Garden Grill Market, II, Inc. illegally trafficked in counterfeit items from Casio, Major League Baseball, the Motion Picture Association, Prada, Coach, Fendi, Gucci and Juicy Couture.
United States Attorney Stephen R. Wigginton stated, “This indictment is another step in my efforts to aggressively investigate and prosecute those who defraud the government programs which try to help those most in need. My office, the attorneys who prosecute these cases, and the agents who work tirelessly to investigate them, simply will not stop. For those who continue to steal from this country and from those of our communities most in need, I warn you - We are coming!”
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.
The investigation in this case was conducted by the United States Department of Agriculture – Office of Inspector General – Investigations, the Internal Revenue Service – Criminal Investigation, and the United States Department of Homeland Security – Homeland Security Investigations. The case is being handled by Assistant United States Attorneys Ranley R. Killian and Liam E. Coonan.
Four Defendants Charged in Conspiracy to Distribute Testosterone and Human Growth Hormones to Underage High School and Professional AthletesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announce the filing of a superseding indictment charging Yuri Sucart, 52, of Miami, FL, Juan Carlos Nuñez, 48, of Fort Lauderdale, FL, Lazaro Daniel Collazo, a/k/a “Lazer,” “Laser,” 50, of Hialeah, FL, and Paulo Berejuk, a/k/a “Pablo Berejuk,” “Paolo Berejuk,” 50, of Cutler Bay, with conspiring to distribute testosterone and human growth hormone to underage high school and professional athletes. The charges stem from a DEA investigation, which focused on the illegal distribution of testosterone by the charged defendants in Miami-Dade County, and elsewhere. In August 2014, seven defendants, including Sucart, Nuñez, and Collazo, were charged with conspiracy to distribute testosterone. Defendants Anthony Publio Bosch, Carlos Javier Acevedo, Jorge Augustine Velazquez, and Christopher Benjamin Engroba have entered guilty pleas and are pending sentencing in connection with this conspiracy.
The charges, filed in August 2014, focused on the illegal distribution of testosterone by the operators of several anti-aging clinics in Miami, Florida, recruiters for these clinics, and a black market distributor of testosterone. These anti-aging clinics were incorporated under several different corporate names: Biogenesis of America, LLC; Biokem, LLC; Revive Miami, LLC; and others by the same group of people who occasionally worked together in the time period 2008 through 2012. One of the original founders of these clinics was Anthony Bosch.
The superseding indictment charges Sucart, Collazo, Nuñez, and Berejuk with one count of conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846; and one count of conspiracy to distribute human growth hormone, in violation of Title 21, United States Code, Sections 333(e)(1) and (e)(2). Additionally, Sucart has been charged with five counts of distribution of testosterone, in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 2; and Collazo has been charged with one count of distribution of human growth hormone, in violation of Title 21, United States Code, Sections 333(e)(1) and (e)(2).
If convicted, the defendants face a maximum possible statutory sentence of 10 years in prison on each count.
Mr. Ferrer thanked the DEA for their work on this investigation. This case is being prosecuted by Senior Litigation Counsel Michal P. Sullivan and Assistant U.S. Attorney Sharad A. Motiani.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Mayor of Río Grande, Puerto Rico, Pleads Guilty to Soliciting and Accepting Bribes from ContractorRead the Press Release
The former mayor of the municipality of Río Grande, Puerto Rico, pleaded guilty today to soliciting and receiving approximately $39,000 in cash bribes from a contractor who sought to be awarded three construction inspection contracts with the municipality of Río Grande.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
According to his plea agreement, Eduard Rivera-Correa, 61, while mayor of Río Grande in early 2010, requested that a contractor make regular kickback payments in exchange for the award of three construction inspection contracts worth a total of $329,000. After the contracts were awarded and while payments were being disbursed by the municipality, the contractor delivered envelopes containing approximately $39,000 in cash to Rivera-Correa’s office and placed them in his drawer.
Rivera-Correa pleaded guilty before U.S. Magistrate Judge Marcos E. López to one count of bribery. Rivera-Correa was arrested on July 10, 2014, after being indicted by a federal grand jury. His sentencing will be scheduled at a later date.
In his plea agreement, Rivera-Correa admitted to obstructing justice by threatening the contractor who paid him bribes. On or about April 16, 2012, in a recorded conversation, Rivera-Correa threatened the contractor in an effort to intimidate him and dissuade him from cooperating with law enforcement.
This case was investigated by the FBI and is being prosecuted by Trial Attorney Charles R. Walsh of the Criminal Division’s Public Integrity Section and Criminal Chief Jose Ruíz of the District of Puerto Rico. The Puerto Rico Office of Government Ethics provided assistance in the investigation.
Former Defense Contractor Convicted in Scheme to Sell Defective Machine Gun Components to Department of DefenseRead the Press Release
Colorado Resident Howard Cahn, Who Tried to Save His Michigan Manufacturing Business by Selling Defective Machinegun Components to DoD in 2009, Convicted of Four Felonies
GRAND RAPIDS, MICHIGAN – United States Attorney Patrick A. Miles, Jr. announced today the conviction, on October 23, of Colorado resident Howard “Jack” Cahn, on four felony charges following a four-day jury trial in Kalamazoo, Michigan. The charges stem from Cahn’s conduct during 2009 when, as the owner of a manufacturing company that was under contract with the U.S. Department of Defense (DoD) to produce critical replacement parts for several machinegun weapons systems used by the U.S. Armed Forces, he tried to sell DoD parts that were defective and that did not meet contract specifications.
“Defense-procurement fraud is a serious offense,” said U.S. Attorney Miles. “When it involves misconduct that also can endanger U.S. troops in the field, it is outrageous as well. Mr. Cahn tried to save his company and make a dollar even if it meant sending U.S. troops into battle with defective weapons during the height of combat operations in Iraq and Afghanistan. He will now be held accountable.”
In 2008, Cahn purchased a machining shop in Michigan and began doing as “Aerospace Manufacturing Services (AMS),” producing components for various weapons systems under contracts with components of DoD. These contracts included ones for the production of internal components for the M-249 5.56 mm Squad Automatic Weapon (SAW) and the “Mark 19”40 mm grenade-machinegun. Both weapons systems are in wide use by all branches of the U.S. Armed Forces, and the components in question are essential to the reliable and safe functioning of those weapons. By April 2009, AMS was in serious financial trouble and Cahn was desperate to ship on the contracts so that he could receive payments from DoD. In early April, Cahn coerced employees of his to add defective M-249 “feed pawls,” which had failed dimensional testing during production and had been designated as scrap, to a shipment of good parts that was awaiting DoD acceptance. At the same time, and in an attempt to receive DoD approval to go into full production on his contract for Mark 19 “lever drives,” he coerced an employee to alter testing documents related to a sample of lever drives, that had been produced by a company in Colorado, to make it appear as though the sample had been produced by AMS. In addition, he personally prepared false certification documents claiming that the levers had been produced by AMS.
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Former Army Private Sentenced for Hobbs Act Armed RobberyRead the Press Release
Case is one of many brought as a result of United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
Follow @SDILNewsDenzell D. Grant, 20, a former resident of South Carolina, who was an Army Private stationed at Fort Hood, Texas, at the time he committed the offenses, was sentenced on October 24, 2014, for Interference with Commerce by Robbery (Hobbs Act Robbery) and Possession of a Firearm in Furtherance of a Crime of Violence, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The Armed Robbery count is a federal “Hobbs Act Robbery.” The Hobbs Act makes it a crime to obstruct, delay, or affect interstate commerce by robbery, and is used by United States Attorney Wigginton’s office as a way to combat armed robbery in the Southern District of Illinois.
Grant was sentenced to a total of 180 months in federal prison, consisting of 30 months on Count 1 and 150 months on Count 2, each sentence to run consecutively. Grant’s sentence of imprisonment is to be followed by a three year term of supervised release on each count, to run concurrently. Grant was also ordered to pay $10,500 in restitution to R.B., the victim of the armed robbery, and ordered to pay a $100 special assessment on each count, for a total special assessment of $200. Because of the amount of the restitution imposed, the Court waived the imposition of a fine.
“Since I announced this initiative [the anti-armed robbery initiative], I have been warning people of the serious consequences of their acts. This case illustrates my point – if you want to be locked away, far from family and friends, keep doing these senseless acts. This is a well-deserved prison sentence for someone who simply should have had better sense. Thank God that no one lost their life over a few dollars.” said United States Attorney Wigginton.
The offense occurred on October 13, 2013, when Grant drove to Swansea with other individuals stationed at Fort Hood, Texas, one of whom had family in Swansea. While in Swansea, Grant and the other individuals developed a plan to rob Max’s One Stop in Swansea. Grant, wearing a mask and armed with a loaded gun, entered Max’s One Stop, and jumped over the counter which led to the area where the lone clerk, R.B., was sitting. Grant put the gun to R.B.’s head and told R.B. to give Grant all of the money. Grant held the gun on R.B. as Grant followed R.B. to the cash register. As R.B. was giving Grant the cash from the register, R.B. stated that Grant told him that Grant was “here to kill him (R.B.).” Hearing this, R.B. decided to grab the gun and the two began struggling over the gun. During the struggle, the firearm discharged, injuring R.B.’s left hand and striking Grant in the right arm.
After being shot, Grant tried to escape by jumping over the counter into the customer area. At the same time, a customer who knew R.B. walked into the convenience store and heard R.B. call for help. The customer and R.B., who now had possession of Grant’s gun, helped prevent Grant from escaping until police arrived.
The case was investigated by the Swansea Police Department, the Illinois State Police Crime Scene Investigation Unit, and the Federal Bureau of Investigation. The case was assigned to Assistant United States Attorney Angela Scott.
Former Army Contracting Official Sentenced to Four Years in PrisonRead the Press Release
In Bribery and Kickback Scheme
Defendant Accepted Over $490,000 in Benefits
From Companies He Helped Win Favorable Treatment and Government ContractsWASHINGTON – In Seon Lim, a former contracting official for the U.S. Department of the Army, was sentenced today to four years in prison for his role in a scheme in which he accepted over $490,000 worth of benefits, including cash payments and vacations, from favored contractors. In return, he helped these businesses obtain millions of dollars in federal contracts.
The sentencing was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); Robert E. Craig, Jr., Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS), and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
Lim, 48, of Fairfax Station, Va., also known as InSeon Lim, pled guilty in July 2014 in the U.S. District Court for the Eastern District of Virginia to three offenses: conspiracy to commit bribery and honest services wire fraud; bribery; and attempting to interfere with and impede tax laws. He was sentenced by the Honorable Leonie M. Brinkema.
Upon completion of his prison term, Lim will be placed on three years of supervised release. He also must pay restitution, including $250,000 to the Department of Defense and nearly $125,000 to the IRS. In addition, he must pay a forfeiture money judgment of $490,262.
Lim is among 18 individuals and one corporation, Nova Datacom, LLC, to plead guilty to federal charges in an investigation that uncovered the largest domestic bribery and bid-rigging scheme in the history of federal contracting cases. Overall, participants in the scheme stole over $30 million in government money through inflated and fictitious invoices.
According to a statement of offense, signed by Lim as well as the government, Lim was a public official until April 2012. The charges involve his activities as an assistant project manager and product director with the Program Executive Office Enterprise Information Systems, a part of the Army that provides infrastructure and informational management systems.
Until June 2010, Lim resided and worked in Seoul, South Korea. While in South Korea, his primary duties were to oversee and implement communications systems upgrades for the U.S. forces there, which included approximately 10 communications centers and various other special projects at military sites throughout the country. Among other things, Lim coordinated work on a major contract, which, in turn, had numerous sub-contracts.
From June 2010 until his resignation in April 2012, Lim worked as a product director at Fort Belvoir, Va.
In the statement of offense, Lim admits that he secretly used his official position to enrich himself by soliciting and accepting gifts, payments and other things of value from government contractors – totaling more than $490,000 -- in return for favorable official action. Among other things, the statement of offense notes, Lim received payments personally and to accounts that he controlled; payments for travel, vacation, vehicles, cellphones and cellular service for himself and family members; ownership interests in two companies, and other benefits.
In exchange, Lim now admits, he provided favorable official action on subcontracts obtained and retained by the favored government contractors as requested and as opportunities arose. He also disclosed confidential bid information to the favored government contractors.
**
“This Army official sold the public trust for a half-million dollars in bribes,” said U.S. Attorney Machen. “Lim is now headed to prison along with many other corrupt officials and government contractors brought down in this sweeping investigation. His fate is a warning shot for other government officials tempted to sell out the American people to line their own pockets that they should think twice. The prison sentences handed out in this case make clear that government officials and business people who corrupt the contracting process put their own freedom at risk.”
“In his role as a federal contracting officer, In Seon Lim betrayed the trust that was placed in him by fellow citizens by taking bribes in exchange for providing favorable action on government contracts,” said Assistant Director in Charge McCabe. “The FBI, with our partners, will continue to investigate and expose fraudulent kickback schemes that tarnish the good and ethical work that procurement officers carry out on behalf of the U.S. government each and every day.”
“The kickback scheme in which In Seon Lim participated disrespected the hard work and dedication of thousands of government employees who are committed to providing honest services in the federal contracting process,” said Special Agent in Charge Kelly. “IRS-Criminal Investigation stands committed to weeding out individuals, who abuse the privilege of their positions as a public official, for their personal gain.”
“Today’s sentencing is a reminder that public servants are accountable for their actions, and individuals who violate the public’s trust will be brought to justice,” said Small Business Administration Inspector General Gustafson. “The actions of In Seon Lim and his conspirators grossly undermine the honest work being done every day by Federal employees and government contractors. I want to thank the U.S. Attorney's Office for its dedicated leadership and professionalism in pursuit of justice served today.”
“As a contracting official for the Department of Defense, In Seon Lim disregarded his duty, lived a lie at the expense of the American taxpayers, and completely violated the trust placed in him by his position,” said Special Agent in Charge Craig. “The Defense Criminal Investigative Service and our law enforcement partners are fully committed to aggressively investigating and prosecuting this kind of illegal activity within the federal procurement process.”
“Mr. Lim admitted that he secretly used his official position to 'enrich himself' when committing these selfish criminal acts,” said Director Robey, of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “That attitude and the related criminal actions will not be tolerated in the Department of the Army. Let this again be a warning to all who work with and for the U.S. Army: if you commit contract fraud, we will catch you and do everything within our power to see you brought to justice, just like Mr. Lim.”
**
The court documents provide details about numerous contracts and payments. For example:
-Nova Datacom: According to the statement of offense, two former employees of the Northern Virginia company - Alex N. Cho, also known as Young N. Cho, and Nick Park - paid Lim $40,000 in cash in 2007. In addition, Park paid for Lim’s travel, lodging, meals and entertainment during a trip to the Philippines in 2007, and Cho paid for Lim’s lodging, $10,000 cash, and a $1,000 casino chip during a trip later that year to Las Vegas. Lim, meanwhile, agreed to use his official position to recommend the company for a contract valued at nearly $330,000.
-Avenciatech: According to the statement of offense, former officials of Avenciatech, Inc., a government contractor based in Annandale, Va., provided Lim with cash payments; payments for hotel stays for Lim and family members, including a trip to the Atlantis resort in the Bahamas; payments to finance the purchase of a 2010 Lexus automobile, and payments for other things of value. One of the officials, Oh Sung Kwon, also known as Thomas Kwon, also assisted Lim in obtaining financing for the purchase of a home in Fairfax Station, Va., where Lim resided following his reassignment in 2010 to a position at Fort Belvoir. Lim, meanwhile, assisted the company in obtaining more than $3 million in contracts.
-UEI:Nick Park left Nova Datacom in 2007 and co-founded another government contractor, Unisource Enterprise Inc. (UEI), based in Annandale, Va. According to the statement of offense, in exchange for favorable treatment, Lim was given a secret ownership in UEI. Among other things, Lim provided Park with sensitive procurement information. He also assisted the company in obtaining a government sub-contract worth over $1.1 million.
Cho, Park, and Kwon are among those who earlier pled guilty to charges in the case.
In addition to pleading guilty to the conspiracy and bribery charges, Lim admitted that he failed to report the bribes he received on tax returns for the years 2007 through 2011. He also failed to keep records that would allow him to file accurate records for 2012 and 2013.
**
In announcing today’s sentence, U.S. Attorney Machen, U.S. Attorney Boente, Assistant Director in Charge McCabe, Special Agent in Charge Kelly, Inspector General Gustafson, Special Agent in Charge Craig, and Director Robey thanked those who investigated the case from the FBI’s Washington Field Office; the Washington Field Office of the Internal Revenue Service-Criminal Investigation, the Office of the Inspector General for the Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency, and the Army Criminal Investigation Command. They also expressed thanks to the U.S. Marshals Service for its assistance on the forfeiture matter.
They also praised the efforts of those who prosecuted the case, including Assistant U.S. Attorney Michael K. Atkinson of the Fraud and Public Corruption Section and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section, of the U.S. Attorney’s Office for the District of Columbia, and Assistant U.S. Attorney Jack Hanly, of the U.S. Attorney’s Office for the Eastern District of Virginia.
Finally, they expressed thanks for assistance provided by former Assistant U.S. Attorney Bryan Seeley; former Special Assistant U.S. Attorney Christopher Dana; Forensic Accountant Maria Boodoo; Paralegal Specialists Tasha Harris, Krishawn Graham, and Taryn McLaughlin; and Legal Assistant Jessica McCormick, all of the U.S. Attorney’s Office for the District of Columbia.
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First RF Corporation Agrees to Pay $10 Million to Resolve False Claims Act AllegationsRead the Press Release
The Justice Department announced today that First RF Corporation (First RF), an antenna and radio system company located in Boulder, Colorado, has agreed to pay $10 million to settle allegations that it violated the False Claims Act by submitting inflated claims for electronic warfare antennas sold to the U.S. Army to combat Improvised Explosive Devices.
“Misrepresentations during contract negotiations undermine the integrity of the government procurement process,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The Justice Department will take action where contractors make false statements to inflate the price of goods or services sold to the government.”
The settlement announced today resolves the United States’ investigation into First RF’s conduct in connection with a 2005 Army contract for the sale of electronic warfare antennas. Specifically, the United States alleged that First RF knowingly submitted false data to the Army that misrepresented First RF’s cost to manufacture the antennas, and thereby inflated the price for the antennas and the payments First RF received for them.
“When defense contractors supply our armed forces with equipment, those contractors must be absolutely truthful in their price negotiations,” said U.S. Attorney John Walsh for the District of Colorado. “It is no excuse for dishonesty that the military equipment was urgently needed. Defense contractors that fail to act with integrity in such negotiations should know that they will face consequences.”
“The Defense Criminal Investigative Service (DCIS) is committed to ensuring the integrity of the Defense Department’s procurement process,” said Special Agent-in-Charge Janice M. Flores of the DCIS Southwest Field Office located in Arlington, Texas. “Contractors such as FRF are expected to comply with their statutory obligations and act in good faith when dealing with the U.S. government and this settlement demonstrates that companies will be held accountable for their actions.”
“Our men and women in uniform are putting their lives on the line daily around the world, and the U.S. Army relies heavily on the contracting process to bring the very best to our service men and women,” said Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Shortchanging our troops or the American taxpayers in any way, shape or form will not be tolerated and we are committed to investigating all allegations of possible fraud or misrepresentation of costs with great interest.”
This settlement was the result of a coordinated effort by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Colorado and the Defense Criminal Investigative Service.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Federal Jury Convicts Tarrant County Tax Preparers on Conspiracy, Tax and Wire Fraud ChargesRead the Press Release
FORT WORTH, Texas — A federal jury in Fort Worth, Texas, has convicted a husband and wife on multiple felony offenses stemming from their operation of a tax return preparation business in Tarrant County, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The trial began Monday morning before U.S. District Judge John McBryde.
Jacqueline Morrison and Gladstone Morrison, who operated Jacqueline Morrison & Associates (JMA) on North Collins in Arlington, Texas, and on James Street in Fort Worth, Texas, were convicted on all 18 counts of conspiracy, tax offenses and wire fraud as charged in a second superseding indictment returned by a federal grand jury in September 2014. Following the verdict late yesterday, Judge McBryde remanded them into federal custody.
The government presented evidence that Jacqueline, who is a Certified Public Accountant, and Gladstone Morrison conspired to willfully aid and assist in and advise the preparation and presentation to the Internal Revenue Service (IRS) of false and fraudulent individual income tax returns.
Many of the tax returns were false and fraudulent because to increase client refunds, the returns claimed Schedule C business losses from income for which the Morrisons knew the taxpayers were not entitled. The Morrisons and JMA tax return preparers, who the Morrisons trained, would use the substantial losses reported on the false Schedules C to offset wage income, resulting in clients recovering all or most of their tax withholding. The Morrisons benefitted from this practice by charging higher fees for additional schedules, creating client loyalty and increasing their business through client referrals.
As part of the conspiracy, the Morrisons, according to evidence presented, developed a series of forms for the client to sign at the time the return was prepared. These forms were intended to protect the Morrisons by placing all the responsibility for any false information on the client, no matter how transparently implausible or unsubstantiated the information on the return.
During the time of the conspiracy, the Morrisons collected more than $2 million in fees from clients. They also attempted to profit by using JMA’s fraud to build a large client list, which they then leveraged into a lucrative franchise agreement with Express Tax Services, a subsidiary of H&R Block. However, after they entered the franchise agreement, the IRS terminated the Morrisons’ Electronic Filing Identification Numbers (EFINs) because of their fraudulent activities. To conceal that fact and perpetuate the continuation of the franchise agreement, the Morrisons provided Express Tax Services EFINs that belonged to a business associate.
Regarding the wire fraud offenses that occurred during the time of the conspiracy, the government presented evidence that the franchise agreement provided for the payment of $750,000 from Express Tax to the Morrisons. To secure the agreement, the Morrisons falsely represented to Express Tax that JMA was not under investigation, when in fact, they well knew JMA was the subject of a federal criminal investigation by IRS-Criminal Investigation.
Unbeknownst to Express Tax, the Morrisons entered into a separate agreement to sell JMA to an individual named V.H. Gladstone Morrison misled V.H. about the true nature of JMA’s relationship with Express Tax by telling V.H. that the arrangement was nothing more than a “co-branding” or “co-marketing” agreement.” Gladstone Morrison also tried to prevent Express Tax from learning they had executed an agreement to sell JMA to V.H. by falsely telling Express Tax that V.H. was only the Morrison’ office manager. By entering into parallel agreements with separate entities — Express Tax and V.H., the Morrisons received payments from both entities for the same asset.
When the Morrison’s agreements with both Express Tax and V.H. fell apart, they again tried to profit by selling JMA to RealTex Ventures LLC, owned by “D.A.” for $425,000. Again, the Morrisons represented that JMA was not under investigation, when it was.
Specifically, Jacqueline and Gladstone Morrison were each convicted on one count of conspiracy to aid and assist in the preparation and presentation of false and fraudulent tax returns. Jacqueline Gladstone was also convicted on 13 counts, and Gladstone Morrison on 12 counts, of aiding and assisting in the preparation and presentation of false and fraudulent tax returns. Jacqueline was convicted on three counts, and Gladstone on four counts, of wire fraud.
The conspiracy count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. Each count of aiding and assisting in the preparation and presentation of a false and fraudulent return carries a maximum statutory penalty of three years in federal prison and a $250,000 fine. Each count of wire fraud carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Restitution could also be ordered. Sentencing is set for February 6, 2015, before Judge McBryde.
The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorneys Douglas Allen and Chris Wolfe are prosecuting.
Federal Grand Jury Indicts Three in Alleged Sex Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence returned a seven-count indictment on Thursday charging three individuals with allegedly participating in a conspiracy to traffic young females from Boston to Rhode Island with the intent to force them to participate in commercial sexual activity, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; Pawtucket Police Chief Paul King; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; United States Marshal Jamie A. Hainsworth; and Arlington, Mass., Police Chief Frederick Ryan.
According to the indictment, it is alleged that on separate occasions between August 18, 2014, and August 25, 2014, Ricky Wallace, a/k/a Justice, 33, of Pawtucket, recruited two females, one of them under the age of 17, at the direction of Kemont Bowie, a/k/a Daddy, 34, of Providence, and, along with Raechyl Spooner, a/k/a Kitty, 20, of Pawtucket, against the will of the females, drove them to Spooner’s Pawtucket residence where they were forced into prostitution.
The indictment charges Wallace and Bowie with conspiracy; sex trafficking of a child; transportation of a minor for sexual activity; sex trafficking by force, fraud or coercion; and transportation an individual for prostitution. Additionally, the indictment charges Spooner with conspiracy.
Arraignment dates have not yet been scheduled by the court.
Ricky Wallace was arrested on August 29, 2014, on a bench warrant issued from the Providence Superior Court, and is detained at the ACI; Kemont Bowie was charged in this matter by way of a federal criminal complaint and arrested on August 26, 2014, and is detained in federal custody; Raechyl Spooner will be summonsed to appear in federal court for arraignment.
The cases are being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
The ongoing investigation is being conducted by the FBI, United States Marshals Service, Rhode Island State Police, Pawtucket Police and the Arlington, Mass. Police Department.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Federal Court Sentences Former University of Iowa Hospital Employee on Mail Fraud ChargesRead the Press Release
DAVENPORT, IA - On October 23, 2014, Jennifer Robyn Whitmore-Meier, age 37, of Avon, Colorado, was sentenced by United States Chief District Court Judge James E. Gritzner to three years of probation, after pleading guilty to three counts of mail fraud, announced United States Attorney Nicholas A. Klinefeldt. Whitmore-Meier was also ordered to pay $300 to the Crime Victim Fund and restitution.
Whitmore-Meier worked for the University of Iowa Hospitals and Clinics as an IT consultant from 2002 to 2011. Between February 8, 2003, and November 2, 2011, Whitmore-Meier purchased at least 567 items with University funds without approval or notice by the University, and then sold the items on eBay for gross proceeds of $122,374.87. Whitmore-Meier also used University funds to pay for accessories, shipping materials, and shipping costs affiliated with the items that she sold on eBay and also used University funds for personal eBay purchases. Over this same time period, Whitmore-Meier electronically transferred $118,553 in proceeds to her personal bank account. Whitmore-Meier admitted that she acted with the intent to defraud in executing this scheme.
This case was investigated by the Federal Bureau of Investigation and the State of Iowa Auditor's Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Fairbanks Man Indicted for Child Exploitation CrimesRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that a federal grand jury returned a two-count indictment against Clint Michael Landry, 57, of Fairbanks, Alaska, charging him with attempted production of child pornography, and attempted coercion and enticement of a minor.
According to court documents, between May 18, 2014, and May 19, 2014, Landry attempted to coerce a minor into engaging in sexually explicit conduct for the purpose of producing a visual depiction of that conduct.
The case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon is prosecuting the case.
If convicted of attempted production of child pornography, Landry faces a maximum statutory penalty of not less than 15 and up to 30 years imprisonment. If convicted of attempted coercion and enticement, Landry faces a maximum statutory penalty of not less than 10 years and up to life. Both counts carry fines of up to $250,000, as well as the possibility of a lifetime period of supervised release following any sentence of imprisonment. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood (PSC) initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
El Paso Man Sentenced to over 17 Years for Online Enticement of A MinorRead the Press Release
Brunswick, GA: Aaron Flores, 26, of El Paso, Texas, who was more recently stationed at Kings Bay, Georgia, was sentenced earlier this week by United States District Court Chief Judge Lisa Godbey Wood to over 17 years in prison, followed by 20 years of supervised release, for the Online Enticement of a Minor to Engage in Sexual Activity. He will also be required to register as a sex offender. Flores pled guilty to the crime on May 20, 2014.
United States Attorney Edward Tarver said, “The defendant’s predatory behavior warrants the significant sentence imposed. The U. S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in such destructive acts towards our children.”
Evidence presented during the guilty plea and sentencing hearings revealed that Flores, then 25, but posing as a 15-year-old on a social media profile page, engaged in numerous online communications through “Tagged.com” and “Kik” in an effort to meet with minors to engage in illicit sexual conduct, and to receive illicit images from the minors. In early September 2013, Flores contacted a 13-year-old girl living in Camden County and, through a series of chats, convinced her to sneak out of her home during the night and travel with him to his on-base apartment to engage in sexual activity. A short time later, a concerned neighbor alerted the girl’s parents that the girl had snuck out, which led to law enforcement involvement. Images and chats on Flores’s phone, as well as further investigative efforts in other jurisdictions, revealed efforts to solicit other minors. The Court cited to Flores’s “ruinous acts” of sneaking a 13-year-old girl onto a military base and engaging in oral sex in support of the lengthy sentence.
This prosecution was the result of a cooperative investigation conducted by the U. S. Naval Criminal Investigative Service, Kingsland Police Department, and St. Mary’s Police Department. Assistance was also provided by the Denver Police Department and Royal Canadian Mounted Police. This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Doctor Charged with Illegally Writing Prescriptions for Addictive Narcotics and Laundering Proceeds of His Drug DealingRead the Press Release
LOS ANGELES – A San Gabriel Valley doctor has pleaded not guilty to federal drug trafficking charges that allege he illegally distributed drugs that include the powerful and addictive painkiller oxycodone.
Dr. Daniel Cham, 47, was arraigned on a 31-count indictment late Thursday afternoon, at which time a trial was scheduled for December 16. Cham was arrested Wednesday afternoon at his residence in Covina. At yesterday’s arraignment, bond was set at $140,000, and Cham was ordered to serve home detention while free on bond and was prohibited from practicing medicine.
The indictment, which was returned by a federal grand jury on October 7 and unsealed when the defendant was arrested, charges Cham with drug trafficking, money laundering, fraud and making false statements to federal authorities. The indictment focuses on prescriptions Cham wrote at various locations, including his medical offices in La Puente and Artesia. The drugs involved in the allegedly illegal prescriptions include oxycodone (a powerful narcotic painkiller best known under the brand name OxyContin), hydrocodone (a narcotic painkiller often sold under the brand names Vicodin and Norco), alprazolam (commonly known by the brand name Xanax), and carisoprodol (as muscle relaxer best known as Soma).
“The problem of pharmaceuticals being diverted to the black market continues to grow, which feeds drug addiction and leads to additional criminal acts by addicts,” said Acting United States Attorney Stephanie Yonekura. “Unscrupulous doctors who prescribe controlled substances without a legitimate medical purpose are simply fueling a black market of narcotics. These doctors are the same as street dealers who face lengthy sentences in federal prison.”
In May 2014, investigators executed federal search warrants at 13 locations, including Cham’s residence and medical offices. According to the affidavit in support of the search warrants, which was unsealed at Cham’s arraignment, the doctor often saw patients between 8 p.m. and 2 a.m. on Fridays, Saturdays and Sundays, and he post-dated prescriptions to make them appear to have been written on weekdays. In the year that ended in March 2014, Cham issued more than 5,500 prescriptions for controlled substances – primarily for oxycodone, hydrocodone, alprazolam and carisoprodol – and he issued more than 42,000 such prescriptions since July 2010, according to the affidavit.
The affidavit also discussed how an undercover officer made three visits to Cham’s La Puente office earlier this year, and how Cham wrote prescriptions for controlled substances in exchange for $200 or $300 in cash or money orders. As discussed in the affidavit, Cham issued a prescription for oxycodone even though the undercover operative said he “had been high and drunk while receiving controlled substance prescriptions” previously from Cham. On another occasion, Cham prescribed oxycodone even though the undercover law enforcement officer presented, in lieu of photo identification, a written notice that his license had been suspended for driving under the influence.
“Daniel Cham's arrest sends a clear message to doctors who violate their sworn public duty by selling prescriptions for highly addictive opioids – the DEA will shut down your operation and put you behind bars,” said Anthony D. Williams, Special Agent in Charge of the DEA’s Los Angeles Field Division. “Along with our law enforcement partners, we continue to aggressively target medical professionals who act as drug traffickers cloaked in a white lab coat.”
In addition to counts related to the undercover operation, the indictment charges Cham with fraudulently issuing prescriptions for controlled substances to Tracy Townsend, who used at least five false identities. Townsend, 51, of Studio City, is also charged in the indictment, but his whereabouts are currently unknown.
An investigation by IRS - Criminal Investigation and the Drug Enforcement Administration’s Financial Investigation Group showed that Cham used at least four bank accounts to launder the proceeds of his illegal prescriptions. The indictment charges Cham with concealing proceeds derived from the undercover visits by depositing them into an account held in the name of a separate business.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
If convicted of the 31 counts in the indictment, Cham would face a statutory maximum sentence of 339 years in federal prison.
The investigation into Cham was conducted by the Drug Enforcement Administration, IRS - Criminal Investigation, the Los Angeles County Sheriff’s Department’s Health Authority Law Enforcement Task Force, the Federal Bureau of Investigation, the California Medical Board and the Los Angeles Police Department.
Release No. 14-139
Dix Hills Man Sentenced to Twenty-Five Years’ Imprisonment for Child ExploitationRead the Press Release
Earlier today, Thomas J. Carey, Jr., a 36-year-old Dix Hills resident, was sentenced to a term of imprisonment of twenty-five years and lifetime supervised release following his conviction for sexual exploitation of a child. The proceeding was held before United States District Judge Denis R. Hurley at the United States Courthouse in Central Islip, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
Carey was arrested in June 2009, after HSI agents obtained a search warrant for his residence based upon a lead from the Swiss National Police and Interpol. Computer equipment and digital cameras belonging to Carey which were seized pursuant to that warrant contained 161 images of Carey molesting the minor victim between 2007 and 2009, when the victim was 8 to 10 years old.
“This sentence is fitting for a predator who destroyed the innocence of an eight-year-old child,” stated United States Attorney Lynch. “This sentence stands as a strong warning to those who would abuse children that we will prosecute them to the full extent of the law.” Ms. Lynch expressed her grateful appreciation to Homeland Security Investigations for its assistance in this case.
The government’s case was prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
THOMAS J. CAREY, JR.
Dix Hills, New York
Age: 36
District Woman Sentenced to Four Years in PrisonRead the Press Release
For Death of Her Infant Son
Defendant Admitted Drug Use, Also Pled Guilty to Insurance FraudWASHINGTON – Tisheena Louise Brown, 32, of Washington, D.C., was sentenced today to four years in prison on a charge of voluntary manslaughter in the death last year of her seven-week-old son, U.S. Attorney Ronald C. Machen Jr. announced.
In a related matter, Brown was sentenced to three months in prison on a charge of second-degree insurance fraud. That sentence will run concurrently with the manslaughter term.
Brown pled guilty to both charges in May 2014 in the Superior Court of the District of Columbia. She was sentenced by the Honorable Lynn Leibovitz. Upon completion of her prison term, Brown will be placed on five years of supervised release. Judge Leibovitz ordered that Brown receive mental health treatment and drug treatment while she is incarcerated and then while she is on supervised release.
According to a proffer of facts presented at the plea hearing, Brown has a history of prescription drug abuse, which began in 2007 or 2008. Her reported prescription drugs of choice were Percocet (Oxycodone) and Dilaudid (Hydromorphone), both of which are Schedule II controlled prescription drugs. She also used Promethazine (a non-controlled prescription drug).
Brown admitted frequenting local hospitals in an effort to unlawfully obtain drug prescriptions (including Oxycodone, Dilaudid, and Promethazine) while using fraudulent identifiers. She would also go to multiple hospitals, using her own name and obtaining prescriptions, which would then be filled and paid by Medicaid. While using her own name, Brown secured prescriptions for drugs without advising the doctor that she had obtained the same prescription on the same date for the same medicine from another doctor and hospital. When purchasing her drugs, she used Medicaid to pay for the drugs.
In a four-month period from September 2013 through December of 2013, Brown had over 1,700 pills prescribed to her from a variety of doctors.
On Sept. 17, 2013, Brown was at her home in the 2900 block of Akron Place SE. She reported that, around 10:30 p.m., her seven-week old son, Hakeem, was fussy and so she provided him Promethazine, a drug which had been prescribed for her. She provided the infant with this drug even though the label warned that it was not to be administered to children under the age of two. Sometime after 2 a.m., on Sept. 18, 2013, Brown looked over at her son and noticed that he was “blue and wasn’t breathing.” She then called 911. The District of Columbia Fire and Emergency Medical Services Department arrived at her home, where they found the infant unconscious and not breathing. Hakeem was taken by ambulance to a hospital, and pronounced dead at about 3:20 a.m. Brown initially told police the only thing she gave her son was an “over the counter” gas relief medication, which was not true.
On Sept. 19, 2013, the District of Columbia’s Office of the Chief Medical Examiner conducted an autopsy. The cause of death was ruled a homicide and the manner of death was a lethal dose of Promethazine. In October 2013, the D.C. Office of the Chief Medical Examiner’s Forensic Toxicology Unit determined that the autopsy drug screen was positive for Promethazine. Promethazine, commonly referred to by the brand name Phenergan, is a non-controlled prescription medication which is prescribed for allergy, motion sickness, nausea, vomiting, nighttime sedation, pain relief following surgery, and to help certain narcotic pain relievers work better. It is prescribed with the warning that it should not be used in children younger than two years old because it may cause serious (possibly fatal) slow/shallow breathing.
Brown has been in custody since her arrest in January 2014.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department, as well as an agent from the FBI who assisted with investigation of the insurance fraud. He also expressed appreciation to the District of Columbia Office of the Medical Examiner and the District of Columbia Department of Forensic Sciences for assistance in the investigation. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kelly Blakeney and Mia Beamon, Victim/Witness Advocate Marcia Rinker, and Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
14-242District Man Sentenced to 20 Years in PrisonRead the Press Release
For Attacking Woman Inside Her Northwest Washington Home
-Defendant Approached Victim as She Was Locking Outside Security Gate-WASHINGTON – Omar Rimmer, 39, of Washington, D.C., was sentenced today to 20 years in prison for an early-morning attack in which he forced his way into a woman’s residence and attempted to sexually assault her, U.S. Attorney Ronald C. Machen Jr. announced.
Rimmer was found guilty by a jury in August 2014 of assault with intent to commit first-degree sexual assault, attempted first-degree sexual assault, first-degree burglary, and kidnapping. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, Rimmer will be placed on 10 years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, on Feb. 5, 2011, at about 3:15 a.m., the victim was walking home in the 500 block of Florida Avenue NW. Rimmer approached her from behind and began making small talk. When she reached her home, Rimmer continued walking. The victim unlocked the security gate and door. When she turned to close the security gate, Rimmer reappeared and asked the victim if he knew her. She did not.
As the victim turned the key to lock the security gate, Rimmer pulled the gate open, breaking the key off in the lock. Rimmer then forced his way inside the residence and pushed the victim to the floor. He got on top of the victim and began choking her while trying to remove her clothing. The victim was able to scream her male roommate’s name, which caused Rimmer to hesitate. The victim seized that opportunity to escape and lock herself in an upstairs bathroom and call 911.
In his haste to flee, Rimmer left behind a cigarette butt and a scarf inside the residence. These items contained his DNA, which led to his arrest.
In announcing the sentence, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Elsa Resendiz; Criminal Investigator Nelson Rhone; Paralegal Specialist Jason Manuel; David Foster and La June Thames, of the Victim/Witness Assistance Unit; and Information Technology Specialist Anisha Bhatia. Finally, he praised the work of Assistant U.S. Attorney Jeff T. Cook, who investigated and prosecuted the matter.
14-243Des Plaines Man Sentenced to More Than 17½ Years in Federal Prison for Murder-For-Hire of Estranged Wife and Her FriendsRead the Press Release
CHICAGO — A former Des Plaines man who solicited two undercover law enforcement officers to kill his estranged wife and her friends was sentenced today to 17 years and 7 months in federal prison. The defendant, ZENON GRZEGORCZYK, has been in federal custody since he was arrested and charged in May 2012, following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. He pleaded guilty this past July in U.S. District Court.
Grzegorczyk, 51, was sentenced to serve 151 months in prison for murder-for-hire, consecutive to 60 months for possession of a firearm while arranging the murders. He must serve at least 85 percent of his 211-month sentence and there is no parole.
“Other than actually committing the murders, it doesn’t get much more serious than this,” U.S. District Judge Elaine Bucklo said in imposing the sentence.
Grzegorczyk’s conduct posed a real risk to several potential victims and to the community at large, Assistant U.S. Attorneys Jennie H. Levin and Matthew M. Schneider argued at sentencing. Grzegorczyk met with undercover officers on three occasions in April and May 2012 to discuss the murder of his estranged wife and her friends. Initially, Grzegorczyk met with the officers to discuss the sale and shipment of firearms to Poland when he turned the conversation to murder-for-hire.
Grzegorczyk told the officers that he wanted the proposed victims to be burned alive and said, “grab them, go some quiet place ― then burn them. Believe me, I want to see those faces, I want to see those faces ― but can’t”
Later, Grzegorczyk showed the officers several photos of intended victims and said he was willing to pay $5,000 for each person killed. He then identified the address of his estranged wife’s residence and told the officers that they should conduct surveillance because the intended victims spent time there. He said the number of victims could change depending on who was present because he did not want any witnesses, and he agreed to pay them a $3,000 deposit for the murders.
At their third meeting, Grzegorczyk gave the officers several additional photos of intended victims and opened a brief case containing $45,000 in cash and a 9mm semi-automatic handgun with two magazines of ammunition. Grzegorczyk said that he intended to leave for Poland in early June.
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Carl J. Vasilko, Special Agent-in-Charge of the Chicago Office of ATF.
Deli Shop Worker Pleads Guilty to Food Stamp FraudRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr., announced today that Nasser Ali Ghanem, 34 of Buffalo, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to unauthorized acquisition of food stamp benefits. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that the defendant participated in the operation of a deli shop known as Hollywood Nights Prime Shop on Jefferson Avenue in Buffalo. From October 2008 through January 2011, Ghanem purchased food stamp benefits from food stamp recipients for cash at less than their full value. The total loss amount to the United States Department of Agriculture is estimated at $67,139.00.
Sentencing is scheduled for February 26, 2015 at 1:00 p.m. before Judge Arcara.
The plea was the culmination of an investigation on the part of Special Agents of the United States Department of Agriculture, Office of Inspector General, under the direction of William G. Squires Jr., Special Agent in Charge, Northeast Region.Delaware, Ohio Man Sentenced to 180 Months for Production of Child PornographyRead the Press Release
COLUMBUS, OHIO – Jeremy L. Wallace, 38, of Delaware, Ohio was sentenced in U.S. District Court to 180 months in prison and lifetime supervised release for producing child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS) announced the sentence handed down today by U.S. District Court Judge Algenon L. Marbley.
According to court documents, Wallace caused the creation of videos and images of a minor engaged in sexually explicit conduct. Between August and September 2013, Wallace met a minor female on a social networking site and communicated with her via KIK messenger and Skype. He coerced the victim to send him numerous images and videos of her engaged in sexually explicit activity.
Investigators discovered hundreds of child pornography files and online sexual communications on Wallace’s computer.
“The forensic analysis of the defendant’s computer revealed that the defendant’s communications progressed to outright coercion and manipulation,” Assistant U.S. Attorney Heather Hill told the court. “The defendant consistently urged the victim to engage in sexually explicit acts, directed her to engage in specific acts and made promises or threats of what he would do if she did or did not comply with his directions.”
Wallace pleaded guilty on January 29 to one count of production of child pornography. Wallace has been in custody since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by the USPIS, as well as Assistant United States Attorney Heather Hill, who is representing the United States in this case.
Dallas Woman Sentenced to 41 Months in Prison for Cocaine ConspiracyRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that a Dallas woman was sentenced to 41 months in prison for her role in a cocaine conspiracy in Northwest Louisiana and Texas.
Ericka M. Ruffins, 41, of Dallas, was sentenced by U.S. District Judge Elizabeth E. Foote for one count of conspiracy to possess with intent to distribute cocaine. She was also sentenced to three years of supervised release. According to evidence presented at the June 12, 2014 guilty plea, Ruffins would transport cocaine for co-defendant Renando Johnson from Dallas to Shreveport for distribution in the Shreveport area. Ruffins was recorded in early 2013 discussing cocaine transactions and plans to transport cocaine. The investigation also revealed that Renando Johnson obtained 4 to 6 ounces of powder cocaine from Ruffins a week. It is estimated that she delivered approximately 1.7 kilos of powder cocaine from January to May of 2013.
Ruffins is the last of six defendants to be sentenced in this case. Renando Johnson was sentenced to 38 months in prison, Elijah Johnson was sentenced to 42 months in prison, Emmitt Williams IV was sentenced to 24 months in prison, and Eady J. Horton was sentenced to time served for one count of conspiracy to possess with intent to distribute cocaine in June and July of 2014. Tracy Russell was sentenced to 15 months in prison on June 13, 2014 for one count of unlawful use of a communication facility. They were all sentenced to three years of supervised release.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation code named “Hustle Hard.” The DEA, Louisiana State Police, Caddo Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office, Shreveport Police Department and Bossier City Police Department conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Coos County Tax Protestors Convicted of Tax CrimesRead the Press Release
EUGENE, Ore. – Amanda Marshall, U.S. Attorney for the District of Oregon, announced that a federal jury in Eugene, Oregon has returned verdicts convicting Ronald Joling, 71, and Dorothea Joling, 72, both of Coquille, Oregon, of federal criminal tax violations. Ronald Joling was found guilty of conspiracy to defraud the United States by obstructing the Internal Revenue Service (IRS), tax evasion, and filing false income tax returns. Dorothea Joling was likewise convicted of conspiracy to defraud the United States by obstructing the IRS. Chief U.S. District Judge Ann Aiken presided over the trial and will sentence the Jolings on February 11, 2015.
U.S. Attorney Marshall noted, “Most citizens pay their taxes as part of being responsible members of society. When people like the Jolings refuse to pay their fair share, and then threaten, harass, and file liens against people who are just trying to do their jobs, my office will aggressively prosecute them and work with the IRS to hold them accountable.”
Evidence at trial detailed the Jolings’ illegal efforts over close to twenty years to keep the IRS and the Oregon Department of Revenue from collecting almost $2 million they owed in back taxes, penalties and interest. The Jolings’ efforts to thwart the IRS included their use of sham trusts, a corporation, sole bank accounts in the names of nominees, a warehouse bank, bogus money orders, bills of exchange, bonds, and filing false tax returns with the IRS. When those efforts failed, the Jolings resorted to intimidation tactics and threats. Witnesses testified that in response to attempts to collect taxes owed, the Jolings threatened them with arrest, criminal prosecution and lawsuits. In one instance, the Jolings took out a newspaper advertisement in the Coquille Valley Sentinel accusing a local government employee of malfeasance just for performing her job. The Jolings also filed retaliatory bogus liens against federal judges, the federal court clerk’s office, and federal prosecutors who were involved in the criminal case.
Rather than pay their taxes, the Jolings spent about $750,000 on a motel and restaurant in Coquille and tracts of land in Linn County. They attempted to conceal their interest in these properties from the IRS by placing them in sham trusts.
“Every American who pays his or her taxes is harmed by those who use abusive trusts and other schemes to avoid paying their fair share,” said Special Agent in Charge Teri Alexander, IRS Criminal Investigation. “We owe it to every American taxpayer to use all lawful means to identify and prosecute those who evade their taxes.”
This case was investigated by the Internal Revenue Service, Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Scott E. Bradford and Chris Cardani.
Columbia Violent Gangs Task Force Arrests 24 Gang Cocaine SuppliersRead the Press Release
Contact Person: JD Rowell (803) 929-3000
Columbia, South Carolina ---- Twenty four (24) defendants made initial appearances in Federal Court today on Indictments charging them with conspiracy to traffic cocaine/crack cocaine and money laundering offenses based on those defendants supplying local street gangs with illegal drugs. The defendants were arrested over the past two days by members of the Columbia Violent Gangs Task Force. The investigation began in early 2013, and has continued up through the arrests yesterday and today.
U.S. Attorney Bill Nettles said, “The aim of the Violent Gangs Task Force is to take the criminal network out of operation – from the top supplier to the street corner operative - and in so doing hand the streets back over to the law-abiding citizens. These kinds of cases take time to build and FBI Special Agent Dave Thomas and I want to thank the law enforcement agencies that worked to put the case together, particularly the City of Columbia Police Department, Richland County Sheriff’s Department and the South Carolina Law Enforcement Division, for the time put in.”
Federal Bureau of Investigation Special Agent in Charge David Thomas stated, “Dismantling violent gangs is a continuing priority for the FBI. We share a long commitment with our law enforcement partners to address the dangerous threat facing our communities today. The arrests demonstrate our focus and determination to strike at gang related enterprises and to eliminate the terror these groups inflict on our neighborhoods.”
This case is being investigated by the Columbia Violent Gangs Task Force (CVGTF), led by agents with the Federal Bureau of Investigation. The CVGTF is part of the FBI’s Safe Streets Task Force initiative. The CVGTF is an investigative and enforcement partnership between the FBI, Richland County Sheriff’s Department (RCSD), Columbia Police Department (CPD), and the South Carolina Law Enforcement Division (SLED).Archie Indictment
Alexander Indictment