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Wednesday 22 October 2014
Four Former Blackwater Employees Found Guilty of ChargesRead the Press Release
In Fatal 2007 Shootings at Nisur Square in Iraq
Jury Verdicts Follow 2 ½-Month TrialWASHINGTON – Four former security guards for Blackwater USA were found guilty today of charges stemming from the Sept. 16, 2007, shooting at Nisur Square in Baghdad, Iraq, that resulted in the killing of 14 unarmed civilians and the wounding of numerous others.
The jury verdicts, in the U.S. District Court for the District of Columbia, were announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia, and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
The defendants include Nicholas Abram Slatten, 30, of Sparta, Tenn.; Paul Alvin Slough, 35, of Keller, Texas; Evan Shawn Liberty, 32, of Rochester, N.H.; and Dustin Laurent Heard, 33, of Maryville, Tenn. Slatten, who was accused of firing the first shots, was found guilty of one count of first-degree murder. Slough was found guilty of 13 counts of voluntary manslaughter, 17 counts of attempted manslaughter, and one firearms offense. Liberty was found guilty of eight counts of voluntary manslaughter, 12 counts of attempted manslaughter, and one firearms offense. Heard was found guilty of six counts of voluntary manslaughter, 11 counts of attempted manslaughter, and one firearms offense.
“This verdict is a resounding affirmation of the commitment of the American people to the rule of law, even in times of war,” said U.S. Attorney Machen. “Seven years ago, these Blackwater contractors unleashed powerful sniper fire, machine guns, and grenade launchers on innocent men, women, and children. Today they were held accountable for that outrageous attack and its devastating consequences for so many Iraqi families. I pray that this verdict will bring some sense of comfort to the survivors of that massacre. I want to thank the prosecutors and law enforcement agents who have fought for the past seven years to bring justice to the memories of those who were gunned down in Nisur Square.”
“Today’s verdict demonstrates the FBI's dedication to investigating violations of U.S. law no matter where they occur,” said Assistant Director in Charge McCabe. “International investigations such as this one are very complex and frequently dangerous. This case took a tremendous amount of coordination to bring over a large number of foreign witnesses in support of this prosecution. I commend the FBI Special Agents, Task Force Officers, Intelligence Analysts and Language Specialists and our partners at the U.S. Attorney’s Office for working to bring those responsible to justice and conveying some measure of comfort to the victims’ families in Iraq.”
The verdicts came on the 28th day of jury deliberations and followed more than two months of trial. The Honorable Senior Judge Royce C. Lamberth ordered that the four defendants be detained pending sentencing. A sentencing date has not yet been set.
The murder charge against Slatten calls for a mandatory sentence of life in prison. Each of the voluntary manslaughter counts against the other defendants carries a statutory maximum of 15 years in prison. Each of the attempted manslaughter counts carries a statutory maximum of seven years of incarceration. The weapons offense carries a mandatory 30-year prison sentence.
Another Blackwater security guard, Jeremy P. Ridgeway, pled guilty in December 2008 to voluntary manslaughter and attempt to commit manslaughter. Ridgeway, who testified as a government witness in the trial, has not yet been sentenced.
The defendants worked for Blackwater USA, a private security contractor that was paid by the U.S. government to provide protective services to U.S. officials.
The trial began June 17, 2014. Over the next 10 weeks, the government presented testimony from 71 witnesses, including 30 from Iraq. This represented the largest group of foreign witnesses ever to travel to the United States for a criminal trial. The witnesses included 13 people who were wounded in the shootings, as well as relatives of many of those who died. The government’s witnesses also included nine members of “Raven 23,” the Blackwater team that was on the scene on the day of the shootings.
According to the government’s evidence, at approximately noon on Sunday, Sept. 16, 2007, several Blackwater security contractors, including the four defendants, opened fire in and around Nisur Square, a busy traffic circle in the heart of Baghdad. When they stopped shooting, 14 Iraqi civilians were dead. Those killed included 10 men, two women, and two boys, ages 9 and 11. Another 18 victims were injured.
The four defendants and 15 other Blackwater security contractors were assigned to a convoy of four heavily-armed trucks known as a Tactical Support Team, using the call sign “Raven 23.” Shortly before noon, Raven 23 learned that a car bomb had detonated in central Baghdad near a location where a U.S official was being escorted by a Blackwater personal security detail team. Raven 23 team members promptly reported to their convoy vehicles, and the convoy drove to a secured checkpoint between the Green Zone and Red Zone.
Once there, in disregard of an order from Blackwater’s command, the team’s shift leader directed Raven 23 to leave the Green Zone and establish a blockade in Nisur Square, a busy traffic circle that was immediately adjacent to the Green Zone. While occupying the southern part of the traffic circle, seven of the 19 members of Raven 23, including the four defendants and Ridgeway, fired their weapons, resulting in the deaths or injury of the unarmed Iraqi civilians there. While leaving the traffic circle, Slough continued to fire his weapon, resulting in additional deaths and injuries.
Finally, further away, north of the traffic circle, Slough and Ridgeway again fired their weapons, resulting in the injury of three more unarmed Iraqi civilians.
The first to be killed was Ahmed Haithem Ahmed Al Rubia’y, 21, an aspiring doctor, who was driving his mother to an appointment. His mother, Mahassin Mohssen Kadhum Al-Khazali, 44, a medical doctor, also was killed. Others who died included Ali Mohammed Hafedh Abdul Razzaq, 9, who was traveling with his family; Osama Fadhil Abbas, 52, a businessman who sold used cars and who was enroute to a business meeting; Mohamed Abbas Mahmoud, 47, a delivery truck driver, and his 11-year-old son, Qasim Mohamed Abbas Mahmoud; Sa’adi Ali Abbas Alkarkh, 52, a businessman; Mushtaq Karim Abd Al-Razzaq, 18, an Iraqi soldier who was standing at a military checkpoint; Ghaniyah Hassan Ali, 55, who was traveling with her daughter on a public bus, and who was in the area to get documentation for a trip to holy sites; Ibrahim Abid Ayash, 77, a gardener, who was traveling in another bus; Hamoud Sa’eed Abttan, 33, and his cousin, Usday Ismail Ibrahiem, 27, who were out looking for work with the Iraqi Army; Mahdi Sahib Nasir, 26, a taxi driver, and Ali Khalil Abdul Hussein, 54, a motorcyclist who was commuting to work.
The jury considered charges involving injuries to 14 men and three women. Because of travel issues, witnesses to support an 18th charge of attempted manslaughter did not appear at the trial, and the charge related to that victim’s injuries was dismissed by the government.
This case was investigated by the FBI’s Washington Field Office. The Iraqi Ministry of Interior and the Iraqi National Police provided cooperation and assistance in the investigation.
The case was prosecuted by Assistant U.S. Attorneys Anthony Asuncion, John Crabb, Jr., Christopher R. Kavanaugh, T. Patrick Martin, and David Mudd, of the National Security Section of the U.S. Attorney’s Office for the District of Columbia. The case was originally indicted by Assistant U.S. Attorneys Jonathan M. Malis and Kenneth Kohl.
14-235Founder of Detroit-Area Home Health Agencies Pleads Guilty to Health Care Fraud ConspiracyRead the Press Release
The founder of three Detroit-area home health agencies pleaded guilty today in federal court for his role in a $22 million home health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office and Special Agent in Charge Jarod Koopman of the Internal Revenue Service Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.
Tayyab Aziz, 45, of Homer Glen, Illinois, pleaded guilty today before U.S. District Judge Bernard A. Friedman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. His sentencing is scheduled for March 3, 2015.
According to admissions in his plea agreement, Aziz founded three Detroit-area home health care agencies, Prestige Home Health Services Inc. (Prestige), Royal Home Health Care Inc., and Platinum Home Health Services Inc. (Platinum). Using these companies, Aziz admitted that he orchestrated a conspiracy to defraud Medicare through fraudulent billings for home health care services.
Specifically, Aziz admitted that he and his co-conspirators submitted fraudulent claims to Medicare for services that were medically unnecessary or never performed. They also submitted claims for services purportedly provided to Medicare beneficiaries who were recruited through illegal kickbacks paid to the patients and recruiters. To conceal the fraud, Aziz admitted that he and his co-conspirators created fictitious physical therapy files to document physical therapy and other services that had not actually been provided and were not medically necessary. Aziz also created and submitted falsified records to the Michigan Community Health Accreditation Program (CHAP) in order for Prestige and Platinum to remain accredited Medicare providers.
As a result of Aziz’s fraudulent conduct, Medicare paid approximately $1,915,513. Five of six other defendants in this case have also previously pleaded guilty.
This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and James P. McDonald of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Fort Mill Woman Pleads Guilty to Lying to Federal AgentsRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Kirstie Elaine Philome Barratt, age 22, of Fort Mill, South Carolina pled guilty as charged today in federal court. Barratt plead guilty to making a false statement to a federal agent, in violation of Title 18, United States Code, Section 1001. Barratt plead straight up to the charge without a plea agreement. United States District Judge Joseph F. Anderson, Jr. accepted the plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that during the early morning hours of January 7, 2014, deputized task force agents with the Federal Bureau of Investigation’s (FBI) Charlotte Safe Streets Task Force/Violent Crime Apprehension Team were in Fort Mill, South Carolina searching for a subject (hereinafter “Subject”) who was wanted for an armed robbery of a restaurant in North Carolina. Agents, in police attire and accompanied by York County Sheriff’s Department officers in marked units, approached the residence of the Subject’s girlfriend, Barratt, in an attempt to determine if the Subject was in the residence. After approximately 15 minutes of the agents knocking on the door and announcing their presence with a loud speaker, Barratt came to the door. Barratt, who was advised by agents that it was a crime to make a false statement to federal agents, told the agents that her boyfriend was not in the home, that she had not seen him for two (2) months because they had broken up, and that the only other persons in the residence were her parents. Barratt gave the agents consent to search the residence. Upon completing a sweep of the residence, agents located Barratt’s parents asleep in one upstairs bedroom and noticed the door shut to another upstairs bedroom. Agents could hear a dog barking in that other upstairs bedroom, so they asked Barratt to secure the dog so they could search the bedroom. Barratt went into the bedroom and came out with the dog. Agents then went into the bedroom and found the Subject crouched in the corner with his weapon drawn. Gunfire ensued and an FBI task force agent, as well as the Subject, were shot. Both Barratt and the Subject were taken into custody. Barratt later advised agents that she knew her boyfriend was in the residence, that she thought he was going to hide, and that when she entered the bedroom to retrieve the dog, she saw him with the gun, but did not tell the agents before allowing them to enter the bedroom.
Mr. Nettles stated that Barratt faces a statutory maximum sentence of five (5) years, a fine of $250,000, and a term of supervised release of up to three (3) years following the term of imprisonment. Barratt also may face deportation as a result of her guilty plea.
The case was investigated by the FBI, the York County Sheriff’s Department, and the South Carolina Law Enforcement Division (SLED), and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.Former Pierce County Hard Money Lender Sentenced to Prison for Mortgage Fraud SchemeRead the Press Release
A former hard money lender who resides in University Place, Washington was sentenced today in U.S. District Court in Tacoma to five years in prison, three years of supervised release and $831,607 in restitution for his mortgage fraud scheme announced Acting U.S. Attorney Annette L. Hayes. EMIEL A. KANDI, 37, pleaded guilty in April 2014 to Conspiracy to Submit False Statements in Loan Applications and to Make False Statements to the Department of Housing and Urban Development, and Submitting False Statements in Loan Applications. The mortgage fraud scheme caused a loss of more than $800,000 to the U.S. Department of Housing and Urban Development and defrauded mortgage applicants as well. At sentencing U.S. District Judge Ronald B. Leighton said KANDI “was a predator. He took advantage of situations. He found a method to secure funds… He was aggressive, he was pushing the envelope, he was a risk-taker without humility and without empathy – those characteristics are ruinous.”
“This defendant lined his pockets at the expense of taxpayers and his own clients,” said Acting U.S. Attorney Annette L. Hayes. “His scheme diverted funds that had been set aside to help people achieve the dream of homeownership. Kandi also hid as much as $35,000 in fraudulent charges in loan documents – money he siphoned directly into his bank accounts. As the recent housing crisis demonstrated, mortgage fraud can have a devastating impact on homeowners and on the economy.”
“Whether fueled by greed or hubris, Emiel Kandi thought he could get away with exploiting members of our community and the federal government,” said Assistant Special Agent in Charge Carlos L. Mojica of the FBI’s Seattle field office. “He boasted about being a wolf that preyed on the weak, but today he learned that criminal activity is not a badge of honor but a disgrace. The FBI and its partners in the Puget Sound Mortgage Fraud Working Group are committed to holding people like Kandi accountable for their fraudulent schemes.”
According to records in the case, between 2008 and 2009, KANDI submitted false information to obtain home mortgage loans. Some of these fraudulent home mortgage loans were designed to let KANDI cash out of properties that KANDI owned through his hard money lending. KANDI’s lending activities were typically secured by a borrower’s home and charged a high rate of interest. The hard money loans were structured, in some instances, to allow KANDI to seize control of a home if the borrower missed a single payment. Other fraudulent home mortgage loans included an inflated and often disguised commission payment to KANDI. In at least 19 loans, KANDI and his co-schemers submitted false information regarding the borrowers’ employment, salary, and intention to live in the home. Some of the loan paperwork included inflated appraisals so that KANDI could maximize the money he obtained in the scheme. The false statements were designed to make the loans appear legitimate and ensure that they would meet federal lending standards. Many of the loans were processed by Pierce Commercial Bank and were insured by the Federal Housing Administration (FHA), a unit within the federal Department of Housing and Urban Development (HUD).
“As a result of his conduct the legislature changed the law to protect consumers who secure loans with their primary residence, even when they are characterized as a business loan,” Deborah Bortner, Director of Consumer Services at the Washington State Department of Financial Institutions (DFI) said. “Emiel Kandi was particularly predatory to some of our most vulnerable citizens.”
“In the last number of years, we have seen enormous and damaging developments in the mortgage and housing markets. Convictions such as this set an important precedent that submitting false statements and fraudulent behavior will not be tolerated and will be aggressively pursued. The United States Department of Housing and Urban Development, Office of Inspector General is deeply committed to working in partnership with other federal, state and local authorities to ensure that corrupt individuals do not use their positions to enrich themselves at the expense of the HUD and its federally-insured mortgage loan program,” said David R. Barnes, Special Agent in Charge.
False statements were made in loan applications for various properties in Western Washington, including properties in Pierce, King, and Clark County. Under the terms of the plea agreement, KANDI agreed to make restitution of $831,607 due to HUD.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being investigated by the Puget Sound Mortgage Fraud Working Group, whose members include the FBI, the Department of Housing and Urban Development – Office of Inspector General, the Washington Department of Financial Institutions (DFI), and the Washington State Department of Licensing. The case is being prosecuted by Assistant United States Attorney Brian Werner and Special Assistant United States Attorney Hugo Torres. Mr. Torres is a King County Deputy Prosecutor specially funded by the Washington Department of Financial Institutions (DFI) to handle mortgage fraud cases in state and federal court.
Former Oklahoma State University Professor Sentenced to Five Years in PrisonRead the Press Release
GREAT FALLS: The United States Attorney's Office today announced that Gary Joseph Conti, 68, of Three Forks, a former Oklahoma State University professor who was part of a multi-million dollar tribal corruption and fraud case on the Blackfeet Indian Reservation, was sentenced to five years in federal prison, $1.7 million in restitution, and three years on supervised release by U.S. District Brian Morris of Great Falls. He was also sentenced to three years of supervised release and $2700 in special assessments.
Conti was convicted of bankruptcy fraud by a federal jury in March and of 26 other felony crimes by a second federal jury in May. Conti was convicted of assisting Blackfeet Tribal officials Frances Onstad and Delyle "Shanny" Augare, and others, obtain millions of dollars in federal monies for a program for troubled and at risk Blackfeet youth called the Po'Ka Project. The federal money was provided based on fraudulent claims as to matching or "in-kind" contributions of third parties which made it appear that the project was becoming self-sufficient. Once the federal money was provided to the Po'Ka program, Onstad and Augare paid Conti $475,000 over a three year period-from August 2008 to August 2011-of which Conti kicked-back $225,000 through a children's charity bank account over which Augare and Onstad had control. Conti was a professor at Oklahoma State University - Tulsa Campus until May of 2011. An audit by the Department of Health and Human Services' Office of Inspector General found the projected loss due to fraud and mismanagement at $4.6 million out of the $9 million provided to the Po'Ka Project from 2005 to 2011.
Conti was allowed to voluntarily surrender to prison when a facility is designated.
The investigation was conducted by the Federal Bureau of Investigation, the Internal Revenue Service, and the Office of Inspector General for the Department of Health and Human Services.
@USAO_MT
Former Longshoreman Sentenced to Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former longshoreman was sentenced today to a year and a day in prison for conspiring to extort others in Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Julio Porrao, 72, of Palm Coast, Florida, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against him. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
During his guilty plea proceeding, Porrao admitted that he conspired with others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Porrao had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
Two other Genovese family associates charged in the case are former union officials: Albert Cernadas, 79, of Union, New Jersey, the president of ILA Local 1235 from approximately 1981 to 2006 and former ILA executive vice president; and Nunzio LaGrasso, 63, of Florham Park, New Jersey, the former vice president of ILA Local 1478 and former ILA representative.
In addition to the prison term, Judge Cecchi sentenced Porrao to serve two years of supervised release and pay a fine of $5,000. LaGrasso and Nicolosi still await sentencing.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.14-383
Defense counsel: Julio Porrao: Erik Hassing Esq., Flanders, New Jersey
Florence Couple Sentenced to Hundreds of Years in Prison for Producing Child PornographyRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Florence couple to hundreds of years in prison for exploiting and sexually abusing a minor child in their custody to produce images of child pornography, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.U.S. District Judge L. Scott Coogler sentenced PATRICIA ALLANA AYERS, 34, to 1,590 years in prison and her husband, MATTHEW DAVID AYERS, 42, to 750 years in prison. The government had requested those sentences, the maximums possible.
The couple pleaded guilty in June to multiple charges related to 53 pornographic images of the child produced between the summer of 2010 and January 2013, when the child was six to nine years old. The images included photographs of the adults engaged in sex acts with the child. Patricia Ayers pleaded guilty to 53 counts of producing child pornography, and Matthew Ayers pleaded guilty to 25 counts of production.
"I have been on the bench since 1998, and this is the worst case I have personally dealt with, including murders," Judge Coogler told the defendants. "You robbed this child of her childhood and her soul, and a maximum sentence is the only sentence appropriate."
"The stern sentences imposed on this couple today reflect the abhorrent nature of their abuse and exploitation of a young child in their care," Vance said. "Children must be protected from sexual exploitation, and we remain committed to prosecuting child pornography cases. I thank the FBI for its diligent work on this disturbing case," she said.
"The crimes the Ayers have admitted to are disturbing, inexcusable and sickening," Schwein said. "The Internet has a depraved and dark side which the Ayers lived in, bringing a child for whom they were responsible with them. I am proud of the work of the FBI on this case, and I applaud the sentences handed down today, as the Ayers will spend the rest of their natural lives behind prison bars," he said.
In their plea agreements with the government, both Ayers acknowledged that they took photographs of the child engaged in lewd and lascivious poses and that they each engaged in sexual acts with the child that the other adult photographed. Patricia Ayers sent pornographic images of the child by e-mail to a man in Texas and told him in e-mail messages that she would bring the child to Texas so that he could have sexual relations with the child, according to the plea agreements.
Following today's hearing, the couple was returned to custody in Lauderdale County where they face state child pornography, rape and sexual abuse charges.
Anyone with information about the potential sexual exploitation of children should report it to law enforcement immediately. The National Center for Missing and Exploited Children operates the Cyber Tip Line in partnership with the FBI and other federal authorities. If you have information, call the tip line at 1-800-THE-LOST.
The FBI investigated this case, which Assistant U.S. Attorney Mary Stuart Burrell prosecuted.
Federal Law Enforcement Officials Seek Information Regarding Two Federal FugitivesRead the Press Release
Federal law enforcement officials are seeking information regarding the location of two persons who have been charged with federal drug, money laundering, and gambling offenses.
The public’s assistance is being sought in the apprehension of Melissa Al Sharairei (also known as Melissa Schermerhorn), age 35, and her husband, Mohammad Al Sharairei, age 33, both of whom were last known to live in Pueblo, Colorado. Federal warrants have been issued for their arrests due to their failures to appear for court proceedings in the United States District Court for the Northern District of Iowa on October 20, 2014. According to court records, the two have been charged with maintaining a premises for the distribution of controlled substance analogues, money laundering, and conducting an illegal gambling business.
Anyone with information as to the whereabouts of the Al Sharaireis should call the United States Marshals Service at (319) 362-4411.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
Federal Inmate Charged with Witness TamperingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistELKINS, WEST VIRGINIA – A federal grand jury returned an indictment charging Tobias Lynn Bennett, 41, of Buckhannon, West Virginia, with witness tampering, United States Attorney William J. Ihlenfeld, II, announced today.
Bennett is charged with two counts of “Witness Tampering – Aiding and Abetting.” A West Virginia State Police investigation revealed that, while incarcerated at the Tygart Valley Regional Jail in Belington, West Virginia, Bennett discouraged two potential witnesses from testifying at a fellow inmate’s sentencing hearing.
Bennett faces up to 20 years in prison and a fine of up to $250,000 for each charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Indictment: Topeka Man Robbed Convenience StoreRead the Press Release
TOPEKA, KAN. – A Topeka man was indicted Wednesday in federal court here on a charge of robbing a convenience store, U.S. Attorney Barry Grissom said.
Wesley Lavern Harris, 25, Topeka, Kan., was charged with one count of robbery. The indictment alleges that on Sept. 25, 2014, he robbed the Kwik Shop at 102 S.W. 37th Street in Topeka. He is alleged to have stolen cash and Kansas Lottery tickets.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Ramiro Madrigal, 19, Kansas City, Kan., and Armando Rodriguez, Jr., 19, Kansas City, Kan., are charged with one count of conspiracy to possess with intent to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, and one count each of traveling from Nevada to Kansas in furtherance of drug trafficking. The crimes are alleged to have occurred Oct. 15, 2014, in Thomas County, Kan.
If convicted, they face a penalty of not less than 10 years and a fine up to $4 million on each of the first two counts and a maximum penalty of five years and a fine up to $250,000 on the third count. The Kansas Highway Patrol investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Federal Court Enters Order and $25 Million Judgment Against Los Angeles Area Work-at-Home SchemeRead the Press Release
An order of permanent injunction against The Zaken Corp. of Thousand Oaks, California, and company president Tiran Zaken, of Calabasas, California, was entered today by U.S. District Court Judge Dean D. Pregerson, finding that they made false and misleading statements in marketing work-at-home business opportunities and promising commissions to consumers, the Justice Department announced. In a written opinion entered Sept. 18, the court found that 110,000 consumers had bought the defendants’ program and “more than 99.8 percent never earned any commission whatsoever.” The court ordered the defendants to pay $25,406,781 as redress for consumer injury.
“This order reflects the Department of Justice’s commitment to protecting consumers from fraud schemes,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “Those who take advantage of Americans searching for an honest day’s work, depriving them of their savings, will be held accountable.”
The Zaken Corp. sold consumers a “Wealth Building Home Business Plan” called QuikSell. For an initial investment of $148, consumers became Associates of QuikSell Liquidations and received a manual including instructions on how to locate excess inventory. The defendants represented that once purchasers of the opportunity identified businesses interested in selling excess inventory, The Zaken Corp. would find a buyer for the inventory. If The Zaken Corp. succeeded in negotiating a sale of the inventory, it promised to give the associate a “commission” equal to half the profit on the sale.
The Zaken Corp. and Tiran Zaken lured customers with claims that purchasers of their program could expect that “two to four hours a week working this business will earn participants an average of $3,000 to $6,000.” They further claimed that “the average commission checks associates get … will be approximately $4,280!” In the court’s written decision, Judge Pregerson of the Central District of California found that “fewer than one percent of consumers ever earned any income at all.”
Once consumers purchased the QuikSell program, they were inundated with advertisements to purchase additional business “tools” costing hundreds or thousands of dollars. The court found that consumers were encouraged to spend an additional $2,300 if they were “serious about this business and … really wanted to make the kind of money others have made.” However, after making this additional investment, consumers received only a directory consisting of “largely outdated telephone numbers of companies who were out of business.”
The court found that The Zaken Corp. and Tiran Zaken violated the Federal Trade Commission Act by making false claims regarding the earnings potential of QuikSell. The court also found that The Zaken Corp. and Tiran Zaken violated the Federal Trade Commission (FTC)’s Business Opportunity Rule, which requires sellers of business opportunities to provide specific, truthful information to help consumers evaluate a business opportunity prior to purchase. The FTC promulgated an updated Business Opportunity Rule in 2012, in order to protect consumers from exactly this sort of work-at-home scheme, in which sellers lure victims with false representations of substantial earnings.
Pursuant to the injunction issued by the court, The Zaken Corp. and Tiran Zaken are permanently banned from advertising or selling any work-at-home opportunity or business opportunity.
This case was brought by the Department of Justice as part of “Operation Lost Opportunity,” a sweep of business opportunity fraud cases coordinated by the FTC. Trial Attorneys Ann Entwistle and Lisa Hsiao of the Justice Department’s Consumer Protection Branch litigated this case with support from Dana Barragate of the FTC’s East Central Region, the FTC’s Division of Marketing Practices and Assistant U.S. Attorney Anoiel Korshid in the Central District of California.
Employee of Memphis City Court Clerk’S Office Indicted for Theft of Monetary Payments for Traffic CitationsRead the Press Release
Memphis, TN – Tammy Brooks Carpenter, age 41, of Memphis, TN, was indicted yesterday by a federal grand jury on the charge of embezzling monetary payments from customers who had been issued motor vehicle citations by the City of Memphis, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
“As the indictment alleges, Tammy Brooks Carpenter orchestrated a scheme to enrich herself by embezzling and converting thousands of dollars of traffic ticket payments intended for City of Memphis coffers,” stated United States Attorney Stanton. “She then allegedly took her brazen scheme one step further by targeting and preying upon vulnerable members of the Hispanic community. As today’s arrest makes clear, we will not tolerate corrupt public officials, and will do everything in our power to hold them accountable.”
The one-count indictment alleges that beginning in December 2012 and continuing until December 2013, Carpenter, an employee of the Memphis City Court Clerk’s office whose duties included accepting payments from customers who had been issued motor vehicle citations, would accept payment and enter the transactions into the Electronic Ticket Information System (ETIMS) which created a record of the payment. Carpenter would then void the original payment and enter a smaller amount into the ETIMS system, converting the remaining funds for her personal use.
During the course of one year, Carpenter allegedly voided approximately 188 citations and embezzled approximately $24,000. Of the 188 citations voided by Carpenter, approximately 183 of the victims had a Hispanic surname.
The federal statute, Title 18 United States Code, Section 666(a)(1)(A), Carpenter has been charged with violating makes it a crime to embezzle money from a local government entity that receives federal assistance in excess of $10,000 during a 12 month period. If convicted she faces up to 10 years in prison and a fine of up to $250,000.
This investigation was conducted by the Federal Bureau of Investigation, Memphis Police Department and the Tarnished Badge Task Force. This case is being prosecuted for the government by Assistant United States Attorney Brian K. Coleman.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
El Paso Couple Plead Guilty to Inducing Foreign or Interstate Travel for ProstitutionRead the Press Release
In El Paso, 45-year-old Maria Blake (aka “Jessica”, “Yvonne”) and her 45–year-old husband, Ronald, face up to 20 years in federal prison after pleading guilty to federal charges involving foreign or interstate travel for prostitution announced United States Attorney Robert Pitman, Homeland Security Investigations (HSI) Special Agent in Charge Dennis Ulrich and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist.
Appearing before United States Magistrate Judge Norbert Garney this morning, Ronald Blake pleaded guilty to one count of aiding and abetting coercion and enticement. Maria Blake pleaded guilty to the same charge yesterday. By pleading guilty, the Blakes admitted that from July 2011 until January 2013, they ran a prostitution service whereby they knowingly persuaded, or attempted to persuade, approximately five females to travel from Juarez to El Paso to engage in sexual activity for financial gain.
The Blakes are on bond pending sentencing. No sentencing date has been scheduled. The Government is also seeking the criminal forfeiture of their residence located in the 2400 block of Tierra Nueva in El Paso. Authorities allege that the residence was used to facilitate their prostitution scheme.
The Blakes were arrested based on an investigation initiated by the El Paso Anti-trafficking Coordination Team (ACT Team). The ACT Team is a human trafficking task force composed of members from the Department of Justice, Federal Bureau of Investigation, Homeland Security Investigation, and the Department of Labor.Assistant United States Attorney Rifian Newaz is prosecuting this case on behalf of the Government.
- Edcouch Woman Sentenced for Embezzling More Than $90K from Halfway House
EOIR’s Office of Legal Access ProgramsRead the Press Release
The Executive Office for Immigration Review’s (EOIR) Office of Legal Access Programs (OLAP), formerly known as the Legal Orientation and Pro Bono Program, was established in April 2000 to improve access to legal information and counseling and to increase representation rates for foreign-born individuals appearing before the immigration courts and Board of Immigration Appeals (BIA). OLAP is responsible for administering the Legal Orientation Program, the Legal Orientation Program for Custodians of Unaccompanied Alien Children, and the BIA Pro Bono Project. OLAP also coordinates EOIR’s Committee on Pro Bono, the Model Hearing Program, and other initiatives which improve access to legal services for individuals appearing before EOIR’s tribunals.
Legal Orientation Program
Since 2003, EOIR has carried out the LOP to improve judicial efficiency in the immigration courts, and to assist detained individuals and others involved in detained removal proceedings to make timely and informed decisions. Under the LOP, EOIR contracts with non-profit organizations to provide group and individual orientations, self-help workshops, and pro bono referral services for detained individuals in removal proceedings. LOP is operational mainly at detention sites, but it also serves certain sites with non-detained individuals and certain family detention centers.
Independent analysis has shown that the LOP has positive effects on the immigration court process: detained individuals make better informed and more timely decisions and are more likely to obtain representation; and cases are completed faster, resulting in fewer court hearings, less time spent in detention and cost savings.
Legal Orientation Program for Custodians of Unaccompanied Alien Children
The Trafficking Victims Protection Reauthorization Act of 2009 tasked EOIR and the Department of Health and Human Services' Office of Refugee Resettlement to offer legal orientation presentations to the adult custodians of unaccompanied alien children in EOIR removal proceedings. The goals of the legal orientations include seeking to protect children from mistreatment, exploitation and trafficking, as well as increasing the appearance rates of these children in immigration court. In 2010, EOIR launched the LOPC to meet these goals and to help increase pro bono representation rates of unaccompanied alien children in immigration proceedings.
EOIR has contracted with non-profit partners to carry out the LOPC at 14 sites nationwide. The LOPC providers offer services similar to those provided under the LOP: general group orientations, individual orientations, self-help workshops, and assistance with pro bono referrals. Additionally, LOPC providers are able to assist with school enrollment and make referrals to social services to help ensure the well-being of the child. OLAP issues guidance to LOPC providers designed to assist them in identifying victims of mistreatment, exploitation, and trafficking; protecting the victims from further harm; and connecting the victims to needed social services.
In addition, since 2013, the LOPC has operated the LOPC National Call Center to assist in making appointments for custodians at one of the LOPC provider locations, and to provide telephonic assistance to custodians who live outside the geographic areas in which LOPC is currently available. This telephonic assistance includes legal orientations on the immigration court process, as well as guidance in filing basic court forms, such as the change of address and motion to change venue.
BIA Pro Bono Project
In 2001, EOIR and non-profit agencies developed the BIA Pro Bono Project (the "Project"). Individuals in removal proceedings are generally not entitled to publicly-funded legal assistance and, as a result, many appear before the immigration courts and BIA without counsel. Agencies that provide legal services to immigrants can face many obstacles in identifying, locating and communicating with unrepresented individuals in time to write and file an appeal brief. The Project helps overcome such obstacles. Through the Project, OLAP assists in identifying certain cases based upon pre-determined criteria. Once cases are identified and reviewed, their summaries are then distributed by a non-profit agency to pro bono representatives throughout the United States. Volunteers who accept a case under the Project receive a copy of the file, as well as additional time to file the appeal brief.
A ten-year review of the BIA Pro Bono Project, completed in February 2014, demonstrated that the Project found counsel willing to accept the case for 87% of cases screened between 2002 and 2011. Additionally, those who were represented through the Project were more likely to have briefs filed with their appeals than pro se respondents. Most significantly, an analysis of the appeals before the Board between 2002 and 2011 showed those who were represented through the Project were more likely to obtain a favorable outcome in their cases than those who do not receive representation. This was particularly the case for individuals who were detained. Since the beginning of the Project, over 1,000 individuals have been represented by pro bono counsel.
Model Hearing Program
The Model Hearing Program is an educational program developed to improve the quality of advocacy before the court, as well as to increase levels of pro bono representation. Model hearings consist of small-scale "mock" trial training sessions held in immigration court and presented by immigration judges. The training sessions, carried out in cooperation with partnering bar associations and/or pro bono agencies, provide practical and relevant "hands-on" immigration court training to small groups of attorneys/law students with an emphasis on practice, procedure and advocacy skills. Participants receive training materials, may obtain Continuing Legal Education credit from the partnering organization, and commit to a minimal level of pro bono representation. Since June 2001, more than 60 model hearing training sessions have been held in immigration courts nationwide. The Model Hearing Program Training Manual contains detailed information on the content and structure of this program, as well as samples of past training sessions.
Other Initiatives
Drawing on informational pamphlets developed by non-profit partners, throughout the nation's detention facilities, OLAP makes available 11 self-help guides. These guides, posted in English and Spanish, cover the most common forms of relief, as well as information about bond and an overview of immigration proceedings. The guides are generally accessible to detainees in the facility libraries and are available on the OLAP website as well.
Additional resources:
- American Bar Association Know Your Rights video
- LOP Cost Saving Analysis report
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
EOIR Expands Legal Orientation Program SitesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced that, beginning Nov. 1, 2014, it will provide assistance to families detained at the Karnes Family Residential Center, in Karnes City, Texas, through the Legal Orientation Program (LOP). The LOP is a program in which representatives from non-profit organizations provide explanations about immigration court procedures along with other basic legal information to groups of detained individuals. This expansion is possible due to additional funds Congress provided to EOIR for the LOP. The expansion of the program to the Karnes facility marks EOIR's 32nd LOP site, and the third LOP location within a family detention center.
"The Legal Orientation Program is critical to the efficiency of our immigration court proceedings," said EOIR Director Juan P. Osuna. "By attending an LOP, individuals are better able to make timely and informed decisions in their removal proceedings and, with more information about available resources, are more likely to obtain representation."
Since the start of fiscal year 2014, the LOP has expanded to seven additional sites. In addition to the Karnes facility, LOP recently began serving the Artesia Family Residential Center, in Artesia, N.M., and will soon begin to serve the expanded Berks County Family Shelter, in Leesport, Pa. The LOP expansion also includes new detention sites in Woodstock, Ill. and Kenosha, Wis.
Since 2003, EOIR has carried out the LOP to improve judicial efficiency in the immigration courts, and to assist detained individuals and others involved in removal proceedings to make timely and informed decisions. Under the LOP, EOIR contracts with nonprofit organizations to provide group and individual orientations, self-help workshops, and pro bono referral services for individuals in removal proceedings.
Please see EOIR's fact sheet, EOIR's Office of Legal Access Programs, for more information on the LOP and EOIR's additional legal access programs.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Dutchess County Woman Sentenced in White Plains Federal Court to 51 Months in Prison for Wire Fraud, Filing False Claims, Bank Fraud, and Corruptly Interfering with the IRSRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MELANIE FERREIRA was sentenced yesterday afternoon in White Plains federal court to 51 months in prison following her conviction for engaging in a series of frauds, which included cheating the Internal Revenue Service (“IRS”) out of nearly half a million dollars, and perpetrating a bank fraud scheme. U.S. District Judge Cathy Seibel, who presided over FERREIRA’s seven-day jury trial in February 2014, imposed the sentence.
U.S. Attorney Preet Bharara said: “Melanie Ferreira thought she could enjoy the fruits of law-abiding taxpayers’ money while evading the tax laws and defrauding the government. Through yesterday’s sentence, she learned how wrong she was.”
According to the Indictment and the evidence presented at trial:
On October 15, 2009, FERREIRA filed a U.S. Individual Income Tax Return, Form 1040, for the year 2008 (“2008 Return”). In her 2008 Return, she falsely reported interest income of $661,600 from three different banks. She then falsely claimed that she had paid taxes in the amount of $661,536 to the IRS for 2008. On that basis, she claimed a refund of $440,924. In reality, in 2008 she actually earned only $17 in interest income. Further, contrary to her claim on her 2008 Return that she had already paid $661,536 in federal taxes, she actually paid only $236.
On October 23, 2009, the IRS wired $440,924 to FERREIRA’s bank account. That same day, FERREIRA wired $44,100 to the individual listed on her tax return as her “tax preparer” and $88,172 to the individual who introduced her to the “tax preparer.”
The following spring, on April 15, 2010, FERREIRA tried to carry out the same type of scheme – requesting a refund of more than $332,033 – when she filed her Form 1040 for the year 2009, but this time, the IRS rejected her refund request. Thereafter, when the IRS notified FERREIRA that she was required to pay back the $440,924 plus interest and penalties, FERREIRA sent the IRS a worthless check for $759,033.05 written on a closed account.
FERREIRA also perpetrated a bank fraud scheme against the Bank of America (“BOA”), the bank that held the mortgage for her house in Dutchess County, New York (“House 1”). In May 2010, she caused a forged cashier’s check for $316,966.05, purporting to be drawn on the Federal Reserve Bank of Cleveland, Ohio (“Check 1”), to be sent to BOA in satisfaction of the mortgage on House 1. Believing that Check 1 was legitimate, BOA filed a satisfaction of mortgage. BOA subsequently determined that Check 1 was fraudulent and filed suit in New York State Supreme Court in order to have the mortgage reinstated. On June 2, 2012, FERREIRA sent a personal check in the amount of $305,000 (“Check 2”) to BOA, purporting, again, to pay off the balance of her mortgage. On the memo line of Check 2, FERREIRA wrote, in red ink, “FOR DISCHARGE OF DEBT EFT ONLY.” Check 2 was written on a bank account that had been closed two years before.
FERREIRA’s schemes – sometimes known as a 1099-OID scheme and an electronic funds transfer or “EFT” scheme – are often used by adherents to the Sovereign Citizens Movement, a group of individuals who, although they reside in the United States, assert the position that they do not have to answer to any government authority, including courts, taxing entities, motor vehicle departments or law enforcement.
In addition to the prison term, Judge Seibel sentenced FERREIRA, 62, of Lagrangeville, New York, to three years of supervised release. FERREIRA was also ordered to make restitution and to forfeit $440,924 that she had wrongfully obtained from the IRS. FERREIRA was ordered to forfeit approximately $96,000 worth of gold Krugerrands and silver coins that she had purchased with the proceeds of her crimes.
In sentencing FERREIRA, Judge Seibel noted that the defendant’s offenses involved “blatant, shameless lies” and that the defendant had “thumbed her nose” at the Government and the Court. The Judge added that FERREIRA showed “no respect for the system” and acted like she was “above the law.”
Mr. Bharara praised the outstanding investigative work of the law enforcement partners involved in the investigation, including the Federal Bureau of Investigation’s Joint Terrorism Task Force and the IRS.
This prosecution is being handled jointly by the Office’s Terrorism and International Narcotics Unit and the White Plains Division. Assistant United States Attorneys Jason P.W. Halperin and Marcia S. Cohen are in charge of the prosecution.
Dorchester Woman Sentenced for Theft of Government BenefitsRead the Press Release
BOSTON – A Dorchester woman was sentenced today for stealing more than a quarter million dollars in government benefits to which she was not entitled.
Mary Murphy, 63, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 18 months of home confinement, 10 hours per week of community service, and was ordered to pay $331,630 in restitution and a fine of $40,000. In July 2014, Murphy pleaded guilty to stealing public money in the form of Social Security and Civil Service Retirement annuity payments paid out for the benefit of her mother.
Following the death of Murphy’s mother in 1977, Murphy, who was not herself entitled to the money, continued to receive and spend the benefits for over 30 years. Murphy stole over $200,000 in Social Security benefits and $140,000 in Civil Service Retirement System annuity payments intended for her mother. Upon discovering the theft, the government reclaimed a portion of the funds from Murphy’s bank account and Murphy repaid the balance, $331,630, at her sentencing today.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.
In October 2014, Richard Oldham of Old Orchard Beach, Maine, was sentenced to four months in prison, six months of home confinement, and ordered to pay $195,862 in restitution for endorsing Social Security checks in his deceased mother’s name following her death in 1993.
In September 2014, Frances Kenney Moseley of Boston, pleaded guilty to stealing over $220,000 in Social Security benefits, which were directly deposited into her father’s bank account after his death in 2003. Moseley is scheduled to be sentenced on Dec. 22, 2014.
In August 2014, George Bergstrom of Shrewsbury, was sentenced to one year of probation and was ordered to pay $57,948 in restitution – which he paid in full in August – for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 2009.
In October 2013, John Flaherty of Newburyport, was sentenced to 10 months in prison and was ordered to pay $168,830 in restitution for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 1993.
United States Attorney Carmen M. Ortiz, Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, and Scott Rezendes, Special Agent in Charge of the Office of Personnel Management, Office of Inspector General, Field Operations, made the announcement today. The Murphy case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Doctor Sentenced to Prison for Tax EvasionRead the Press Release
A doctor was sentenced today to serve 18 months in prison by U.S. District Court Judge Rudolph T. Randa in the Eastern District of Wisconsin for committing tax evasion and making false statements, announced the Justice Department and Internal Revenue Service (IRS).
On May 22, Dr. Michael N. Mangold pleaded guilty to one count of tax evasion and one count of making false statements. According to court documents, Mangold was a medical doctor specializing in emergency medicine and urgent care who, since about 1993, had worked as a physician for various hospitals, emergency rooms and urgent care facilities. At times, he also worked as a physician in state and county correctional facilities. Mangold primarily earned income through a combination of employee wages and independent contractor payments.
In his plea agreement, Mangold admitted that from 1997 through 2007, he willfully concealed his income from the IRS. Mangold further admitted that he made false statements to the IRS. In total, Mangold owed approximately $191,577 in taxes based on his income and wages during the relevant calendar years plus interest.
Mangold also admitted that he made materially false statements during the course of a civil lawsuit concerning his failure to repay federal student loan obligations. Mangold admitted that he submitted a false financial affidavit to government officials which contained false statements about the amount of income he earned as a doctor.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Rebecca Perlmutter of the Justice Department’s Tax Division are prosecuting the case.
District Man Found Guilty of First-Degree Murder While Armed in 2012 Shooting on Crowded Southeast Washington BlockRead the Press Release
-Defendant Shot Victim Repeatedly-WASHINGTON - Demonta Chappell, 23, of Washington, D.C., was found guilty by a jury today of first-degree murder while armed and other charges stemming from a slaying that took place in 2012 in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Chappell was found guilty of the murder charge, related weapons offenses, and three counts of obstruction of justice. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Rhonda Reid Winston scheduled sentencing for Jan. 27, 2015.
According to the government’s evidence, on Saturday, Oct. 27, 2012, shortly after 9 p.m., Chappell approached the victim, Stevann Moorer, 26, who was standing in the 500 block of Parkland Place SE. The block was crowded that evening with people celebrating a local horseshoes team championship in a nearby park. When Chappell reached Mr. Moorer, he pulled out a semi-automatic pistol and shot him. Chappell then stood over Mr. Moorer and shot him several more times. Following the shooting, Chappell fled through a nearby alley.
After his arrest in the case, Chappell made several attempts to contact witnesses from the jail in an effort to persuade them to testify falsely on his behalf.
In announcing the verdict, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department (MPD) and the FBI. He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Marcia Rinker; Criminal Investigators Mark Crawford, Durand Odom, and John Marsh; Paralegal Specialists Mia Beamon and Benjamin Kagan-Guthrie; David Foster, M. Laverne Forrest, Debra Cannon, and Michael Hailey of the Victim/Witness Assistance Unit; and Information Technology Specialist Leif Hickling. He also expressed appreciation for the assistance provided by Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation, and former Assistant U.S. Attorney Mary Chris Dobbie.
Finally, he praised the work of Assistant U.S. Attorneys Jonathan Kravis and Veronica Sanchez, who investigated and prosecuted the matter.
14-236Davenport Man Sentenced on Federal Drug Trafficking OffenseRead the Press Release
DAVENPORT, IA – On October 22, 2014, Joshua Jonas Edward Miller, age 33, of Davenport, Iowa, was sentenced to 96 months in prison by United States District Judge John A. Jarvey for conspiracy to distribute at least 280 grams of cocaine base announced United States Attorney Nicholas A. Klinefeldt. He was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning about November 2011, and continuing until about October 30, 2012, Miller distributed more than 280 grams of cocaine base (“crack cocaine”) in the Davenport, Iowa, area. During October 2012, law enforcement utilized a confidential informant to complete a series of controlled purchases of crack cocaine from Miller while under law enforcement surveillance. On October 30, 2012, law enforcement executed a search warrant for Miller’s residence in Davenport and located, among other things, approximately 51 grams of crack cocaine and a digital scale that both belonged to Miller.
This case was investigated by the Davenport, Iowa, Police Department, the Iowa Department of Narcotics Enforcement, and the U.S. Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
DaVita to Pay $350 Million to Resolve Allegations of Illegal KickbacksRead the Press Release
DaVita Healthcare Partners, Inc., one of the leading providers of dialysis services in the United States, has agreed to pay $350 million to resolve claims that it violated the False Claims Act by paying kickbacks to induce the referral of patients to its dialysis clinics, the Justice Department announced today. DaVita is headquartered in Denver, Colorado and has dialysis clinics in 46 states and the District of Columbia.
The settlement today resolves allegations that, between March 1, 2005 and February 1, 2014, DaVita identified physicians or physician groups that had significant patient populations suffering renal disease and offered them lucrative opportunities to partner with DaVita by acquiring and/or selling an interest in dialysis clinics to which their patients would be referred for dialysis treatment. DaVita further ensured referrals of these patients to the clinics through a series of secondary agreements with the physicians, including entering into agreements in which the physician agreed not to compete with the DaVita clinic and non-disparagement agreements that would have prevented the physicians from referring their patients to other dialysis providers.
“Health care providers should generate business by offering their patients superior quality services or more convenient options, not by entering into contractual agreements designed to induce physicians to provide referrals,” said Deputy Assistant Attorney General for the Justice Department’s Civil Division Jonathan F. Olin. “The Justice Department is committed to protecting the integrity of our healthcare system and ensuring that financial arrangements in the healthcare marketplace comply with the law.”
The government alleged that DaVita used a three part joint venture business model to induce patient referrals. First, using information gathered from numerous sources, DaVita identified physicians or physician groups that had significant patient populations suffering renal disease within a specific geographic area. DaVita would then gather specific information about the physicians or physician group to determine if they would be a “winning practice.” In one transaction, a physician’s group was considered a “winning practice” because the physicians were “young and in debt.” Based on this careful vetting process, DaVita knew and expected that many, if not most, of the physicians’ patients would be referred to the joint venture dialysis clinics.
Next, DaVita would offer the targeted physician or physician group a lucrative opportunity to enter into a joint venture involving DaVita’s acquisition of an interest in dialysis clinics owned by the physicians, and/or DaVita’s sale of an interest in its dialysis clinics to the physicians. To make the transaction financially attractive to potential physician partners, DaVita would manipulate the financial models used to value the transaction. For example, to decrease the apparent value of clinics it was selling, DaVita would employ an assumption it referred to as the “HIPPER compression,” which was based on a speculative and arbitrary projection that future payments for dialysis treatments by commercial insurance companies would be cut by as much as half in future years. These manipulations resulted in physicians paying less for their interest in the joint ventures and realizing returns on investment which were extraordinarily high, with pre-tax annual returns exceeding 100 percent in some instances.
Last, DaVita ensured future patient referrals through a series of secondary agreements with their physician partners. These included paying the physicians to serve as medical directors of the joint venture clinics, and entering into agreements in which the physicians agreed not to compete with the clinic. The non-compete agreements were structured so that they bound all physicians in a practice group, even if some of the physicians were not part of the joint venture arrangements. These agreements also included provisions prohibiting the physician partners from inducing or advising a patient to seek treatment at a competing dialysis clinic. These agreements were of such importance to DaVita that it would not conclude a joint venture transaction without them.
The Government’s complaint identifies a joint venture with a physicians’ group in central Florida as one of several examples illustrating DaVita’s scheme to improperly induce patient referrals. The group had previously been in a joint venture arrangement involving dialysis clinics with Gambro, Inc., a dialysis company acquired by DaVita in 2005. Prior to the acquisition, Gambro had entered into a settlement with the United States to resolve alleged kickback allegations that, among other things, required Gambro to unwind its joint venture agreements. As a consequence, Gambro purchased the group’s interest in the joint venture clinics and agreed to a “carve-out” of the associated non-competition agreement which allowed the group to open its own dialysis clinic nearby, which it did. After acquiring Gambro, DaVita bought a majority position in the group’s newly established dialysis clinic, and sold a minority position in three DaVita-owned clinics. Despite the fact that each of the clinics involved were roughly comparable in terms of size and profits, DaVita agreed to pay $5,975,000 to acquire a 60 percent interest in the group’s clinic, while selling a 40 percent interest in the three clinics it owned for a total of $3,075,000. As part of this joint venture, the group agreed to enter into new non-compete agreements.
“This case involved a sophisticated scheme to compensate doctors illegally for referring patients to DaVita’s dialysis centers. Federal law protects patients by making buying and selling patient referrals illegal, so as to ensure that the interest of the patient is the exclusive factor in the referral decision,” said U.S. Attorney John Walsh. “When a company pays doctors and/or their practice groups for patient referrals, the company’s focus is not on the patient, but on the profit to be extracted from providing services to the patient.”
In conjunction with today’s announcement, the U.S. Attorney’s Office noted that after extensive review, it is closing its criminal investigation of two specific joint ventures.
As part of the settlement announced today, DaVita has also agreed to a Civil Forfeiture in the amount of $39 million based upon conduct related to two specific joint venture transactions entered into in Denver, Colorado. Additionally, DaVita has entered into a Corporate Integrity Agreement with the Office of Counsel to the Inspector General of the Department of Health and Human Services which requires it to unwind some of its business arrangements and restructure others, and includes the appointment of an Independent Monitor to prospectively review DaVita’s arrangements with nephrologists and other health care providers for compliance with the Anti-Kickback Statute.
“Companies seeking to boost profits by paying physician kickbacks for patient referrals – as the government contended in this case – undermine impartial medical judgment at the expense of patients and taxpayers,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services. “Expect significant settlements and our continued investigation of such wasteful business arrangements.”
The settlement resolves allegations originally brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The suit was filed by David Barbetta, who was previously employed by DaVita as a Senior Financial Analyst in DaVita’s Mergers and Acquisitions Department. Mr. Barbetta’s share of the recovery has yet to be determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the United States Attorney’s Office for the District of Colorado, the Civil Division of the United States Department of Justice, and the U.S. Department of Health and Human Services, Office of Inspector General.
The lawsuit is captioned United States ex rel. David Barbetta v. DaVita, Inc. et al., No. 09-cv-02175-WJM-KMT (D. Colo.). The claims settled by this agreement are allegations only; there has been no determination of liability.
DaVita to Pay $350 Million to Resolve Allegations of Illegal KickbacksRead the Press Release
WASHINGTON –DaVita Healthcare Partners, Inc., one of the leading providers of dialysis services in the United States, has agreed to pay $350 million to resolve claims that it violated the False Claims Act by paying kickbacks to induce the referral of patients to its dialysis clinics, the Justice Department announced today. DaVita is headquartered in Denver, Colorado and has dialysis clinics in 46 states and the District of Columbia.
The settlement today resolves allegations that, between March 1, 2005 and February 1, 2014, DaVita identified physicians or physician groups that had significant patient populations suffering renal disease and offered them lucrative opportunities to partner with DaVita by acquiring and/or selling an interest in dialysis clinics to which their patients would be referred for dialysis treatment. DaVita further ensured referrals of these patients to the clinics through a series of secondary agreements with the physicians, including entering into agreements in which the physician agreed not to compete with the DaVita clinic and non-disparagement agreements that would have prevented the physicians from referring their patients to other dialysis providers.
“Health care providers should generate business by offering their patients superior quality services or more convenient options, not by entering into contractual agreements designed to induce physicians to provide referrals,” said Deputy Assistant Attorney General for the Justice Department’s Civil Division Jonathan F. Olin. “The Justice Department is committed to protecting the integrity of our healthcare system and ensuring that financial arrangements in the healthcare marketplace comply with the law.”
The government alleged that DaVita used a three part joint venture business model to induce patient referrals. First, using information gathered from numerous sources, DaVita identified physicians or physician groups that had significant patient populations suffering renal disease within a specific geographic area. DaVita would then gather specific information about the physicians or physician group to determine if they would be a “winning practice.” In one transaction, a physician’s group was considered a “winning practice” because the physicians were “young and in debt.” Based on this careful vetting process, DaVita knew and expected that many, if not most, of the physicians’ patients would be referred to the joint venture dialysis clinics.
Next, DaVita would offer the targeted physician or physician group a lucrative opportunity to enter into a joint venture involving DaVita’s acquisition of an interest in dialysis clinics owned by the physicians, and/or DaVita’s sale of an interest in its dialysis clinics to the physicians. To make the transaction financially attractive to potential physician partners, DaVita would manipulate the financial models used to value the transaction. For example, to decrease the apparent value of clinics it was selling, DaVita would employ an assumption it referred to as the “HIPPER compression,” which was based on a speculative and arbitrary projection that future payments for dialysis treatments by commercial insurance companies would be cut by as much as half in future years. These manipulations resulted in physicians paying less for their interest in the joint ventures and realizing returns on investment which were extraordinarily high, with pre-tax annual returns exceeding 100 percent in some instances.
Last, DaVita ensured future patient referrals through a series of secondary agreements with their physician partners. These included paying the physicians to serve as medical directors of the joint venture clinics, and entering into agreements in which the physicians agreed not to compete with the clinic. The non-compete agreements were structured so that they bound all physicians in a practice group, even if some of the physicians were not part of the joint venture arrangements. These agreements also included provisions prohibiting the physician partners from inducing or advising a patient to seek treatment at a competing dialysis clinic. These agreements were of such importance to DaVita that it would not conclude a joint venture transaction without them.The Government’s complaint identifies a joint venture with a physicians’ group in central Florida as one of several examples illustrating DaVita’s scheme to improperly induce patient referrals. The group had previously been in a joint venture arrangement involving dialysis clinics with Gambro, Inc., a dialysis company acquired by DaVita in 2005. Prior to the acquisition, Gambro had entered into a settlement with the United States to resolve alleged kickback allegations that, among other things, required Gambro to unwind its joint venture agreements. As a consequence, Gambro purchased the group’s interest in the joint venture clinics and agreed to a “carve-out” of the associated non-competition agreement which allowed the group to open its own dialysis clinic nearby, which it did. After acquiring Gambro, DaVita bought a majority position in the group’s newly established dialysis clinic, and sold a minority position in three DaVita-owned clinics. Despite the fact that each of the clinics involved were roughly comparable in terms of size and profits, DaVita agreed to pay $5,975,000 to acquire a 60 percent interest in the group’s clinic, while selling a 40 percent interest in the three clinics it owned for a total of $3,075,000. As part of this joint venture, the group agreed to enter into new non-compete agreements.
“This case involved a sophisticated scheme to compensate doctors illegally for referring patients to DaVita’s dialysis centers. Federal law protects patients by making buying and selling patient referrals illegal, so as to ensure that the interest of the patient is the exclusive factor in the referral decision,” said U.S. Attorney John Walsh. “When a company pays doctors and/or their practice groups for patient referrals, the company’s focus is not on the patient, but on the profit to be extracted from providing services to the patient.”
In conjunction with today’s announcement, the U.S. Attorney’s Office noted that after extensive review, it is closing its criminal investigation of two specific joint ventures.
As part of the settlement announced today, DaVita has also agreed to a Civil Forfeiture in the amount of $39 million based upon conduct related to two specific joint venture transactions entered into in Denver, Colorado. Additionally, DaVita has entered into a Corporate Integrity Agreement with the Office of Counsel to the Inspector General of the Department of Health and Human Services which requires it to unwind some of its business arrangements and restructure others, and includes the appointment of an Independent Monitor to prospectively review DaVita’s arrangements with nephrologists and other health care providers for compliance with the Anti-Kickback Statute.
“Companies seeking to boost profits by paying physician kickbacks for patient referrals – as the government contended in this case – undermine impartial medical judgment at the expense of patients and taxpayers,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services. “Expect significant settlements and our continued investigation of such wasteful business arrangements.”
The settlement resolves allegations originally brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The suit was filed by David Barbetta, who was previously employed by DaVita as a Senior Financial Analyst in DaVita’s Mergers and Acquisitions Department. Mr. Barbetta’s share of the recovery has yet to be determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the United States Attorney’s Office for the District of Colorado, the Civil Division of the United States Department of Justice, and the U.S. Department of Health and Human Services, Office of Inspector General.
The lawsuit is captioned United States ex rel. David Barbetta v. DaVita, Inc. et al., No. 09-cv-02175-WJM-KMT (D. Colo.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Cybercriminal Sentenced to Two Years for Hacking the U.S. Navy and Geospatial-Intelligence Agency Computer SystemsRead the Press Release
TULSA, Okla. — Daniel Trenton Krueger, one of two leaders of the computer hacking group known as Team Digi7al, was sentenced today to serve twenty-four months in federal prison for hacking the U.S. Navy, National Geospatial-Intelligence Agency, and over 50 public and private computer systems, U.S. Attorney Danny C. Williams Sr. announced.
Krueger, 20, of Dix, Illinois, previously pleaded guilty before U.S. District Judge James H. Payne on May 20, and was initially charged in a single-count information on May 5, 2014. At the time of the hacking Krueger was a student. The co-defendant, Nicholas Paul Knight, 27, of Chantilly, Virginia, will be sentenced on November 21, 2014. Knight was an active-duty enlisted member of the Navy aboard the USS Harry S. Truman at the time of the hacking.
“Cybercrime is one of the most serious national security challenges we face as a nation, and it is one of the Department of Justice’s highest priorities,” said U.S. Attorney Williams. “We will vigorously investigate and prosecute cybercrimes. I commend the Naval Criminal Investigative Service and the Defense Criminal Investigative Service for their quick actions to identify and investigate the computer intrusions.”
According to court documents, in June 2012, the Naval Criminal Investigative Service (NCIS) detected a breach of the U.S. Navy’s Smart Web Move (SWM) database, which stored personal records, including Social Security numbers, names, and dates of birth, for approximately 222,000 service members. The servers that stored these records were located in Tulsa. At the time of the hacking attacks, Knight, Krueger, and other Team Digi7al conspirators posted links to the stolen information on a Team Digi7al Twitter account.
Investigators with the NCIS and the Defense Criminal Investigative Service (DCIS) identified Knight and Krueger as the hackers after a sting operation aboard the USS Harry S. Truman.
Victims of the conspiracy included the following organizations:
- U.S. Navy
- U.S. National Geospatial-Intelligence Agency
- U.S. Department of Homeland Security
- MobiTv
- Autotrader.com
- Harvard University
- Johns Hopkins University
- Kawasaki
- Library of Congress
- Los Alamos National Laboratory
- Louisville University
- MeTV Network
- Montgomery Police Department (Alabama)
- Peruvian Ambassador’s email (in Bolivia)
- San Jose State University
- Stanford University
- Toronto Police Service (Canada)
- Ultimate Car Page
- University of Alabama
- University of British Columbia (Canada)
- University of Nebraska-Lincoln
- World Health Organization
The case was investigated by the NCIS Atlantic Cyber Operations office in Norfolk, Virginia, with the cooperation and assistance of the DCIS Cyber Field Office, and other federal, state, and local agencies. The case was prosecuted by Assistant U.S. Attorney Joel-lyn A. McCormick on behalf of the United States.
- Corpus Christi Man Sentenced on Child Pornography Charges
Convicted Tampa Sex Offender Pleads Guilty to Second Federal Charge of Failure to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Kevin Robert Leblanc (52, Tampa) has pleaded guilty to failing to register as sex offender after traveling from Florida to the State of Arizona. He faces up to ten years in federal prison. A sentencing date has not yet been set. Leblanc has been in custody for violating the conditions of his federal supervised release since his arrest on August 15, 2014.
According to court documents, on July 29, 1999, Leblanc was convicted of committing two child sex offenses in Massachusetts. Subsequently, he traveled to Florida, failed to register as a sex offender, and was prosecuted for failure to register. Leblanc pleaded guilty to this charge and, on August 25, 2011, was sentenced to three years in federal prison, and a 15-year term of supervision.
On April 4, 2014, Leblanc was released from federal prison, established a residence in Tampa, Florida, and commenced his term of supervised release. On July 25, 2014, he absconded from federal supervision. In doing so, he failed to update his sex offender registration status with Florida authorities, as required by law. Leblanc was arrested near Flagstaff, Arizona, on August 15, 2014, by the U.S. Marshals Service. When interviewed, he acknowledged knowing that he was required to register as a sex offender, that he did not notify Florida authorities that he was leaving the state, and that he failed to notify authorities because he “got fed up” with being supervised.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders. This case was investigated by the United States Marshals Service. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Clermont Woman Sentenced for Tax Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton, Jr. has sentenced Tanya Fox to 20 years in federal prison for conspiracy to defraud the federal government, wire fraud, theft of government property, and aggravated identity theft. Fox was immediately taken into custody. The Court also entered a money judgment in the amount of $4,055,735, which relates to the amount of fraudulent tax refunds that Fox and her co-conspirators had received.
On July 24, 2014, following a four-day trial, a federal jury found her guilty of one count of conspiracy, five counts of wire fraud, ten counts of theft of government property, and ten counts of aggravated identity theft.
During the trial, evidence was introduced to show that Fox had orchestrated a scheme to file fraudulent tax returns using identities that had been stolen from a variety of sources. Fox directed other individuals to open business bank accounts in the name of a fraudulent tax preparation business and to have the tax refunds deposited into those accounts. She then worked with those individuals to withdraw the funds and spend the money. Fox attempted to receive approximately $5.8 million in fraudulent tax returns and was successful in receiving more than $4 million during the course of the scheme.
According to the testimony at trial, Fox spent the money received from the fraudulent tax returns to purchase several luxury and other vehicles. The United States has seized each of these vehicles. She also used proceeds from these offenses to have cosmetic surgery on two occasions and to open a restaurant in the Orlando area.
Previously, Shanterica Smith, Gerald Williams, and Delray Duncan pleaded guilty and were sentenced for providing approximately 2,400 names from the Orange County Health Department to Fox so that she and her co-conspirators could file the fraudulent tax returns. Smith was sentenced to five years in prison, Williams was sentenced to four years and six months in prison, and Duncan was sentenced to three years and six in prison. A fifth co-defendant, April Cuyler, also pleaded guilty for her role in this scheme; she was sentenced to two years and six months in prison.
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, the United States Postal Inspection Service, and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Citrus County Man Arrested on Federal Firearms, Ammunition, and Explosives ChargesRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces the arrest yesterday of Michael Paul Watkins (41, Citrus Springs) on a criminal complaint alleging the possession of firearms and ammunition by a previously convicted felon, and the possession and manufacturing of unregistered destructive devices. Each offense carries a maximum penalty of ten years in federal prison.
According to court documents, Watkins was previously convicted, in state court, of felony offenses involving the handling and fondling of a child under the age of 16, and two escapes from custody. As a convicted, felon he is prohibited from possessing firearms and ammunition under federal law. In early October 2014, law enforcement officers received information that Watkins was using a third party to illegally acquire firearms and ammunition. Federal agents subsequently obtained search warrants for Watkins’s home, business, and a nearby property.
Yesterday, law enforcement agents executed the search warrants and recovered approximately 134 firearms (including AK-47 rifles) from Watkins’s home, along with numerous rounds of ammunition. They also discovered several fully assembled pipe bombs and the components to manufacture more.
A criminal complaint is an allegation by the United States that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Citrus County Sheriff’s Office, with assistance from the Tampa Police Department Bomb Squad. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy to reduce violent crime in communities.
California Man Pleads Guilty to Possessing Methamphetamine and Firearm in Wayne CountyRead the Press Release
Follow @SDILNewsThomas Gregory Lilley, 36, of Fontana, California, pled guilty today in United States District Court in Benton to charges that he possessed methamphetamine with intent to distribute it and that he possessed a loaded semi-automatic pistol during and in relation to that crime, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The offenses occurred on April 24, 2014, in Fairfield, Illinois.
Sentencing was set for February 18, 2015, at 10:00 a.m. at the United States Courthouse in Benton. At that time, Lilley faces up to 20 years in federal prison, a $1 million fine, and 3 years to life on supervised release following his incarceration on the methamphetamine charge and a consecutive 5 years to life, a $250,000 fine, and 5 years supervised release on the firearm charge.
Lilley has been held in the custody of the United States Marshal since his arrest on federal charges in May. He was returned to the custody of the Marshal to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Wayne County Sheriff’s Department with the assistance of the Bureau of Alcohol, Tobacco, and Firearms.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Brooklyn Fish Dealer Sentenced to Four Months for Wire FraudRead the Press Release
WASHINGTON – Alan Dresner, a federally-licensed fish dealer from Brooklyn, New York, was sentenced today in federal court in Central Islip, New York, for violations stemming from his role in systematically underreporting fluke (summer flounder) that was being harvested as part of the federal Research Set-Aside (RSA) Program, the Justice Department’s Environment and Natural Resources Division announced.
On April 23, 2014, Alan Dresner pleaded guilty to one count of wire fraud. The scheme involved his personal falsification and internet submission of at least 120 fisheries dealer reports from July 2009 to December 2011, as part of a scheme to defraud the United States of 246,376 pounds of overharvested and underreported fluke valued at $510,000.
As part of his sentence, Dresner will serve four months in prison followed by three years of supervised release. The defendant was fined $6000 and ordered to make a $15,000 community service payment to the Cornell Cooperative Extension of Suffolk County in order
to pay for the enhancement of fluke habitat in the waters of Long Island through the C.C.E.’s Marine Meadows Program. Dresner was ordered to pay $510,000 in restitution to the Marine Resources Account of the New York State Conservation Fund. Dresner was also ordered to surrender his federal dealer license and was banned from accessing the National Oceanic and Atmospheric Administration’s (NOAA) SAFIS computer system.“Today, Dresner was held accountable for his role in defrauding a federal research program, a program whose purpose is to help ensure the long-term sustainability of Long Island’s fisheries,” said Acting Assistant Attorney General Sam Hirsch for the Justice Department’s Environment and Natural Resources Division. “We are committed to protecting the natural resources that the American people depend on today and for future generations as well.”
“This scheme to land tremendous amounts of overages for profit was not only detrimental to the RSA program, but also to the law abiding fishermen who will not be able to participate in this program in 2015,” said NOAA Special Agent Logan Gregory. “The Office of Law Enforcement will continue to focus on ensuring a level playing field by investigating these types of environmental crimes.”
Alan Dresner is “Fish Dealer X” as that person is identified in the related case of U.S. v. Anthony Joseph. As a federal fish dealer, Dresner had a NOAA permit to purchase fish directly from commercial fishing vessels without having to go through an intermediary. In July 2009, Dresner learned that Anthony Joseph, captain of the F/V Stirs One, was consistently overharvesting fluke through Joseph’s abuse of the RSA Program. By July 2009, Dresner was making regular purchases of illegal fluke from Joseph at the Point Lookout, New York, waterfront.
In order to cover-up his illegal fishing, Joseph would mail falsified fishing logs, known as FVTRs, to NOAA. However, falsified FVTRs were just one side of the coin. This is because fish dealers are required to report their purchases to NOAA on an electronic form known as a dealer report. The dealer reports include information such as date of landing, port of landing, catch vessel, corresponding FVTR numbers, commercial grade, species, price, and weight. NOAA utilizes the data in the dealer reports to set quotas and implement other management measures designed to ensure a sustainable fisheries. The dealer reports also serve as a check on the information that is submitted in FVTRs. In other words, for their scheme to work, the false data on the FVTRs had to match the false data on the dealer reports. A mismatch would have indicated a serious error or fraud, and would have been a red flag for fisheries managers. Accordingly, during July 2009 to December 2011, the defendant schemed with Anthony Joseph to file at least 120 false dealer reports with NOAA, representing a loss of 246,376 pounds of fluke valued at $510,000.
Theft of domestic marine resources has far-reaching consequences beyond illicit financial gain. Fisheries managers operate on the basic assumption that fishers and dealers make accurate and honest reports to NOAA. When harvested fish is misreported or unreported, the integrity of fisheries statistics and associated mathematical models are jeopardized. Recently, based in large part on the recently quantified illegal fluke harvesting revealed by the guilty pleas in the Jones Inlet Seafood, Charles Wertz Jr., Anthony Joseph, and Dresner cases, on Aug. 12, 2014, the Mid-Atlantic Fisheries Management Council voted to suspend the RSA Program for 2015 in order analyze the effect illegal fishing has had on the soundness of the RSA Program.
Anthony Joseph pleaded guilty to wire fraud, mail fraud, and falsification of federal records on April 11, 2014, for his fisheries fraud crimes related to Alan Dresner and Jones Inlet Seafood. He is scheduled to be sentenced on May 20, 2015.
The case was investigated by agents of NOAA’s National Marine Fisheries Service, with assistance from the New York State Department of Environmental Conservation Police. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division.
Bank Employee Charged with Stealing More Than $100k from Customer AccountsRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEXANDER ALVAREZ, 32, of East Lyme, was arrested today on federal charges related to his alleged theft of more than $100,000 from customers of the bank where he was employed.
On October 21, 2014, a grand jury in New Haven returned an indictment charging ALVAREZ with two counts of bank fraud. ALVAREZ appeared this afternoon before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and is currently detained. A detention hearing is scheduled for October 24.
As alleged in the indictment, from January 2012 to February 2013, ALVAREZ was employed as a Financial Service Representative for a bank in Newington. While employed at the bank, ALVAREZ identified accounts that had little banking activity. He then caused the mailing address for the accounts he targeted to be changed from the owner’s address to a fraudulent address so that transactions in the accounts would not be immediately discovered by the account owner. ALVAREZ then created fraudulent transfer slips causing the funds to be transferred to another account that he believed was dormant, or to an account that he directly controlled, or to be issued in a bank check. Once the funds were transferred from the owner’s account, ALVAREZ withdrew the funds from the bank in cash or via an ATM card, or transferred them to his personal banking account.
The indictment alleges that ALVAREZ stole $100,806.85 from one bank customer and $11,137.01 from a second bank customer.
The charge of bank fraud carries a maximum term of imprisonment of 30 years and a fine of up to $1,000,000.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case has been assigned to U.S. District Judge Michael P. Shea in Hartford.
This matter is being investigated by the Connecticut Financial Crimes Task Force, the Stratford Police Department and the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Air Force Staff Sergeant Sentenced to 11 Years for Child EnticementRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew yesterday sentenced Steven Richard Romel (32, Kissimmee) to 11 years in federal prison for enticement of a child for sex. The Court also ordered Romel to forfeit a phone and an iPad, that he had used to commit the offense. Romel pleaded guilty on July 8, 2014.
According to court documents, between November 21, 2013, and January 18, 2014, a special agent with the Air Force Office of Special Investigations in Tampa conducted an online investigation into adults using computers to communicate with, and arrange for sex with, minors. Specifically, the agent posed as the 15-year-old daughter of a deployed military soldier. On November 21, 2013, the “child” posted an online personal advertisement to which Romel responded. During subsequent conversations, Romel discussed meeting the “child” and inquired when she could sneak away to meet with him. The “child” repeatedly mentioned that she was 15 years old.
Romel, who was stationed at Barksdale Air Force base in Shreveport, Louisiana at the time, offered to buy the “child” a roundtrip ticket from Tampa so that she could meet with him. On several occasions, he also requested that photos be sent to him online. When the “child” mentioned that she would be off from school on January 20, 2014, Romel purchased a plane ticket for the “child” to visit him in Shreveport.
On January 18, 2014, the agent flew from Tampa to Shreveport, on the same flight as the supposed “child.” Romel was at the airport waiting and was arrested. A search of Romel’s residence later showed that he had purchased numerous items discussed with the “child” during their chats, including the “Plan B” pill.
This case was investigated by the Air Force Office of Special Investigations. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Tuesday 21 October 2014
Vienna Investment Adviser Pleads Guilty to Defrauding Numerous Elderly and Widowed ClientsRead the Press Release
ALEXANDRIA, Va. – Ismail Elmas, 49, of Vienna, Virginia, pleaded guilty today to defrauding more than 10 of his investment advisory clients—many of whom were seniors and widows—of more than $1 million in funds they entrusted to him to invest on their behalf.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga.
Elmas was charged by criminal information on October 21, 2014, on wire fraud charges. Elmas faces a maximum penalty of 20 years in prison when he is sentenced on January 16, 2015. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, Elmas admitted to having worked as an investment adviser at Apple Financial Services (AFS), an affiliate of Apple Federal Credit Union (AFCU), during the time of his offense. Elmas also was registered with the Financial Industry Regulatory Authority (FINRA) as an investment adviser. In addition, he owned and operated a bank account in the name of “I.E. Financial Solutions.” From at least 2012 through in or around August 2014, Elmas misappropriated client funds given to him for legitimate investments in his capacity as an investment adviser, and he used those funds for his own purposes by way of his I.E. Financial Solutions bank account at NFCU. Elmas misappropriated these client funds in different ways. For example, he materially withheld the fact that I.E. Financial Solutions was his own bank account, never telling his clients that they were giving their money to his own purported investment vehicle. In other instances, Elmas falsely described I.E. Financial Solutions to clients as a particular investment vehicle (e.g., a Certificate of Deposit or a Real Estate Investment Trust). And for other clients, Elmas simply transferred the funds to his I.E. Financial Solutions account without providing truthful disclosures about the use and disposition of the funds. As a result of Elmas’ scheme, more than 10 victims lost more than $1 million but less than $7 million.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Chad Golder is prosecuting 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-328.Tweet
United States Attorney Stephen R. Wigginton Announces Election Day Anti-Fraud EffortsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, reminded everyone today of the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. An Assistant U.S. Attorney is designated as the District Election Officer for the Southern District of Illinois, and, in that capacity, is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Wigginton 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 of voting 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.” noted United States Attorney Wigginton. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Wigginton will have Assistant United States Attorney, and District Election Officer, Norman R. Smith on duty in this District while the polls are open. Smith may be reached by the public at the following telephone numbers: (618) 628-3700, (618) 628-3743 or (618) 799-8775.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (618) 397-4401.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at: http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Wigginton concluded by reminding all of us that, “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. In so doing, all of our citizens may enjoy the benefits of our free and fair election system.”
U.S. Department of Justice Announces Collaborative Reform Initiative with Fayetteville Police DepartmentRead the Press Release
FAYETTEVILLE, NORTH CAROLINA—Today the U.S. Department of Justice Office of Community Oriented Policing Services (COPS) announced the beginning of a review of the Fayetteville Police Department’s use of force policies and practices. The scope of the work announced today will include an assessment of policies, training, and operations as they relate to use of force, deadly force investigations, and interactions with citizens, taking into account national standards, best practices, current and emerging research, and community expectations. Following the assessment, COPS will issue a report detailing the findings along with specific recommendations for improvement. COPS will assess progress made at the 6-month and 12-month marks issuing follow up reports.
Ronald L. Davis, Director of the Office of Community Oriented Policing Services said, “The Collaborative Reform Initiative we embark on today is just that—a collaboration—and everything this partnership entails will be done in an open and transparent fashion.”
Davis continued, “I applaud Chief Medlock for taking this proactive step to review his agencies policies and practices to ensure that they are current with the latest national standards. Often times police departments seek help too late when the only remedy available is a pattern and practice investigation, consent decree and federal monitor costing millions of dollars. The process we begin today has no cost to the city.”
The U.S. Department of Justice, Office of Community Oriented Policing Services developed the Collaborative Reform Initiative for Technical Assistance in 2011 as an independent and objective way to transform a law enforcement agency through an analysis of policies, practices, training, tactics, and accountability methods around key issues facing law enforcement today.
The goal of the Collaborative Reform Initiative is to help change the ways that law enforcement agencies build community partnerships and enhance transparency; transform agencies through decision making and policies; and institutionalize reforms with integrated accountability measures.
U.S. Attorney Booth Goodwin, Law Enforcement and Treatment Professionals Announce New Initiative to Help Heroin AddictsRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin, Prestera Center for Mental Health Services CEO Karen Yost, Charleston Police Chief Brent Webster, Kanawha County Sheriff John Rutherford, and other law enforcement representatives today announced a unique intervention program through which certain heroin addicts are being referred to treatment. The collaborative initiative is part of ongoing efforts in the Kanawha Valley to address the opiate abuse epidemic. The Kanawha County Commission provided funding earlier this year for an anti-heroin initiative known as HEAT: Heroin Eradication Associated Task Force. As a result, a roundup was conducted by area law enforcement agencies on October 16th, netting approximately 34 arrests. During the law enforcement operation, law enforcement officers referred three low-level, nonviolent offenders to treatment services instead of sending them to jail. Treatment services will be provided by Prestera. If one of these individuals deviates from the caseworker’s plan or treatment program, criminal charges will be filed and the individual would then be subject to the normal judicial process.
U.S. Attorney Booth Goodwin said, “While we in law enforcement will continue to aggressively arrest and prosecute heroin dealers and traffickers, we also know that we cannot arrest our way out of this epidemic. Opiate addiction is powerful – addicts will continue to use until they get treatment. This is not being soft on crime but rather being smart on crime.”
Karen Yost, CEO of Prestera, said, “We are excited to be a partner with law enforcement in this innovative initiative to combat drug addiction.”
Timonium Man Sentenced to 18 Months in Prison for Stealing More Than $680,000 from an NIH Research GrantRead the Press Release
Stole Money Intended for Research Conducted at the
National Institute for Drug Abuse Facilities in Baltimore
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jason Dietz, age 34, of Timonium, Maryland, today to 18 months in prison, followed by three years of supervised release, for theft of funds from a federal program, in connection with the theft of $683,705 in grant money from the National Institute for Drug Abuse for research conducted at its facilities in Baltimore. Chief Judge Blake also ordered Dietz to pay restitution of $683,705.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.
The National Institute for Drug Abuse (“NIDA”) is part of the National Institutes of Health and is located at Johns Hopkins Bayview Center in Baltimore. NIDA also operates the Archway Treatment Clinic, also in Baltimore. NIDA and its grantees conduct research on the science of addiction and treatment and publish that research in scientific and medical peer-reviewed journals. For each of the years 2006-2013, NIDA conducted from 26 – 31 studies at Bayview and the Archway Clinic.
According to Dietz’s plea agreement, from 2006 until June 2013, Dietz worked for Matthews Media Group (MMG), which was contracted by NIDA to recruit, screen, and compensate participants in NIDA’s clinical research studies conducted at Bayview and Archway. Dietz’ job was to compensate study participants, typically with cash or gift cards, obtain receipts from study participants, and keep a spreadsheet of participants’ compensation with supporting documentation—chiefly signed receipts from the study participants. Dietz was a signatory on an MMG bank account from which he withdrew cash to pay study participants; in addition, he provided cash to Archway Clinic for the clinic employees to pay study participants. MMG invoiced NIDA each month and included in its invoice amounts taken directly from the spreadsheet prepared by Dietz.
Dietz admitted that, beginning in 2007, he embezzled funds from MMG in several ways. For example, Dietz paid study participants and obtained a signed receipt from them, then logged a higher amount on the spreadsheet and pocketed the difference between the two amounts. In addition, Dietz created fictitious receipt numbers and amounts which he placed on his spreadsheet, then pocketed all the cash from these fictitious payments. Finally, Dietz listed on his spreadsheet higher amounts than were actually paid to Archway Clinic employees for them to pay Archway participants and pocketed the difference.
In 2013, MMG was responding to questions from NIDA employees when discrepancies were discovered between the signed receipts and Dietz’ spreadsheet. MMG then conducted an audit that looked at every entry on every spreadsheet which was used to bill NIDA and the back-up documentation. For the time period October 2006 through May 2013, the MMG auditor found that Dietz overstated the expenses on the spreadsheet compared to the actual receipts by $571,205, and that he deposited $586,083 into his personal bank account during that same time period. In addition, the MMG auditors discovered that Dietz had cashed $112,500 in checks from the MMG bank account on which Dietz was a signatory and that the funds were unaccounted for. Dietz admitted that in addition to depositing embezzled funds into his personal bank account, he also embezzled cash that he spent.
United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.
- Three Defendants Guilty of Tax Fraud Charges
Thomas W. Faircloth Sentenced for Distribution of Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Thomas W. Faircloth, aged 37, of Cairo, Georgia, was sentenced by the Honorable W. Louis Sands, U.S. District Court Judge, in Albany, Georgia on October 20, 2014, in connection with receiving, distributing and possessing child pornography.Mr. Faircloth was sentenced to 151 months in federal prison, to be followed by lifetime supervision. He will also be required to register as a sex offender under the Sex Offender Registration and Notification Act (“SORNA”).
Mr. Faircloth admitted that on November 13, 2012, he distributed 22 still images and 17 video files, containing depictions of child pornography, to an undercover FBI agent, using the program Gigatribe. During the execution of a search warrant on February 18, 2013, many thousands of images and video files of child pornography, including those of very young children, were found on a laptop computer in Mr. Faircloth’s possession. The images were transported in interstate and foreign commerce using the internet. When interviewed by FBI agents, Mr. Faircloth admitted to receiving, distributing and possessing child pornography.
“As we strive every day to protect our children from even the slightest harm, we must remain mindful of those individuals who victimize innocent children over and over again distributing horrific depictions of child pornography by way of the internet. We will continue to use our law enforcement resources to make sure that we catch these offenders and bring them to the justice they deserve,” said U.S. Attorney Michael Moore.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The children depicted in these images are re-victimized each time those images are re-distributed by individuals such as Mr. Faircloth. The FBI will continue to provide significant investigative resources toward identifying and presenting for prosecution those individuals who would exploit our nation’s children in such a manner.”
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Tennessee Man, John Nutter, Sentenced for Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN NUTTER, age 32, resident of Knoxville, Tennessee, was sentenced today after having previously pleaded guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base and misprision of a felony.
U.S. District Judge Jay C. Zainey sentenced NUTTER to a 38-month term of imprisonment and 3 years of supervised release.
On February 6, 2014, NUTTER was one of 15 defendants charged in an 8-count indictment. According to court documents, the indictment was based on court-authorized wiretaps that recorded conversations between STEVEN HAYNES, who has pled guilty in this case, and NUTTER, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes. NUTTER was arrested on July 3, 2013, in possession of approximately 400 grams of cocaine that he obtained from HAYNES.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Louisiana State Police, and Washington Parish Sherriff’s Office in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Statement by United States Attorney Robert Pitman Concerning the November 2014 General ElectionRead the Press Release
Today, United States Attorney Robert Pitman announced the appointment of Assistant United States Attorney (AUSA) Tom Moore as the District Election Officer. AUSA Moore will lead the efforts of the United States Attorney’s Office for the Western District of Texas in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Moore will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Pitman 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.
In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Pitman stated that AUSA/DEO Moore will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (210) 384-7188.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The San Antonio FBI field office can be reached by the public at (210) 225-6741. The El Paso FBI field office can be reached by the public at (915) 832-5000. Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.United States Attorney Pitman 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.”
Southern California Man Gets 21 Months in Federal Prison for Income Tax Return Fraud in NevadaRead the Press Release
LAS VEGAS, Nev. – A Huntington Beach, Calif. man who defrauded the IRS of almost $800,000 in a false income tax refund scheme, was sentenced today to 21 months in prison and ordered to pay restitution to the government, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge John Collins of IRS Criminal Investigation for Nevada.
Judas Godina, 39, was sentenced by U.S. District Judge Kent J. Dawson. Godina was indicted in July 2013 and pleaded guilty on July 15, 2014, to one count of conspiracy to defraud the IRS. He must report to federal prison by Jan. 16, 2015.
“This type of tax crime harms every U.S. citizen and resident,” said U.S. Attorney Bogden. “We will aggressively work with the IRS to prosecute these cases, and will also recommend prison sentences in order to deter others from this type of fraud.”
“The substantial sentence of imprisonment and restitution handed down today on this case makes it clear that filing false claims for tax refunds is a serious crime,” said Special Agent in Charge Collins. “IRS Criminal Investigation, with the assistance of our law enforcement partners and federal prosecutors, will aggressively pursue these violations of the law and protect the integrity of the tax system and honest taxpayers.”
According to the guilty plea agreement, from about January through December 2010, Godina conspired with Felix and Walter Guzman to defraud the IRS through a false income tax refund scheme. Godina recruited customers in Las Vegas into the tax return scheme by telling them that he could prepare their individual income tax returns and generate large refunds for them. Godina requested their identification information and tax returns from prior years, and then prepared the fraudulent tax returns using the information they provided, along with fraudulent W-2’s and Schedule E’s for business losses that he created. Godina transmitted or caused to be submitted the fraudulent forms to the IRS and monitored the status of the refunds. When the customers received the refunds, Godina arranged to meet them and demanded payment of approximately one-half of the refund. Godina also offered to pay a finder’s fee to customers who referred other paying customers to him and prepared fraudulent tax returns for customers recruited by co-defendants Felix and Walter Guzman. Using this fraudulent scheme, Godina admitted that his conduct resulted in $791,666 in fraudulent refunds being issued by the IRS. The Guzman’s are currently fugitives and the charges against them are unresolved.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Kathryn C. Newman.
Science Applications International Corporation Agrees to Pay $1.5 Million to Resolve Alleged False Claims Act Violations for Undisclosed Organizational Conflicts of InterestRead the Press Release
The Justice Department announced today that Science Applications International Corporation (SAIC), now known as Leidos Holdings Inc., has agreed to pay $1.5 million to resolve a False Claims Act lawsuit alleging that it knowingly engaged in prohibited conflicts of interest as a contractor for the U.S. Nuclear Regulatory Commission (NRC) between 1992 and 2000. SAIC provides scientific, engineering and other technical services for government and commercial customers and is headquartered in Reston, Virginia.
“Organizational conflicts of interest undermine the integrity of the federal procurement process,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Even more importantly, where the conflicts relate to a government program aimed at protecting the public health, work biased by conflicts of interest can put the public’s health at risk. This resolution, reached after a long and difficult litigation, demonstrates that the Justice Department will ensure that contractors who put their financial interests above the good of the American public will be held accountable.”
Between 1992 and 2000, SAIC held two contracts with the NRC to provide scientific and technical services, including assisting the NRC in its consideration of a rule that could have permitted the release or recycling of certain types and quantities of material with very low levels of radioactivity below regulatory safety limits. The NRC decided in 2005 not to proceed with such a rule. The United States alleged that, under these contracts, SAIC was required to avoid conflicting business relationships that could bias SAIC’s work for the NRC. The United States alleged that SAIC repeatedly and falsely certified that it had no such conflicting business relationships, when SAIC actually engaged in multiple business relationships with entities that had a financial interest in the outcome of the NRC’s rulemaking effort.
“The NRC’s unique status as an independent agency dedicated to the protection of public health, safety, and the environment means that decision-making must be free from even the potential for bias,” said Mark A. Satorius, Executive Director for Operations at the NRC. “This resolution shows that the NRC and Justice Department will work together to ensure that contractors who undermine the NRC’s commitment to decision-making that is free from bias will be held accountable.”
In July 2008, after a five-week jury trial, the jury returned a verdict in favor of the United States that SAIC violated the False Claims Act and breached its contract with the NRC by engaging in undisclosed conflicts of interest. On appeal, in December 2010, the U.S. Court of Appeals for the District of Columbia Circuit affirmed judgment for the United States on the breach of contract claim, but partially reversed the judgment on the False Claims Act claims based on two instructions given to the jury and remanded the case for a new trial on those claims.
This matter was handled by the Civil Division in cooperation with the NRC. The False Claims Act claims resolved by this settlement are allegations only, and there has been no determination of liability with respect to those claims.
The case is captioned U.S. v. SAIC, 04-cv-1543 (D.D.C.).
Santa Rosa Tax Return Preparer Pleads Guilty to Tax Fraud and Failing to Report Foreign Bank AccountsRead the Press Release
SAN FRANCISCO – Efrain Arturo Jovel pleaded guilty today to filing two false tax returns and failing to report his financial interest in foreign bank accounts, U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez, announced.
According to the plea agreement, Jovel owned and operated a tax return preparation business for over 30 years, first out of his home, then out of offices on Guerneville Road, both in Santa Rosa, Calif. On average, Jovel prepared approximately 1,800 tax returns per year. Jovel admitted that for the tax years 2009 and 2010, he filed personal U.S. Individual Income tax returns that were false in that he did not disclose his foreign bank accounts in Guatemala and El Salvador. In addition, Jovel did not disclose interest income of $35,104 earned in 2009 and 2010 on the funds held in these foreign bank accounts. Jovel additionally admitted that he willfully underreported gross receipts from his tax preparation service of $244,120 and $307,846, respectively. This resulted in a tax loss of $175,023.
Jovel, 64, of Santa Rosa, was charged on September 9, 2014, with one count of willfully violating foreign bank account reporting requirements and two counts of subscribing to false tax returns. He pleaded guilty to all counts.
Jovel’s sentencing hearing is scheduled for January 20, 2014 before the Honorable Richard Seeborg, U.S. District Court Judge, in San Francisco. The maximum penalty for filing a false tax return, in violation of Title 26 U.S.C. § 7206(1), is three years in prison and a fine of $250,000. The maximum penalty for willfully violating foreign bank account reporting requirements, in violation of Title 31 U.S.C. §§ 5314 and 5322(a), is five years in prison and a fine of $250,000.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the IRS Criminal Investigation.
Professed Church Director and "Enforcer" Pleads Guilty to Racketeering and Bribery Related ChargesRead the Press Release
BOSTON – Edward J. MacKenzie, Jr., a self-professed "enforcer" for James "Whitey" Bulger, pleaded guilty today to charges relating to his decade-long scheme to siphon off the considerable financial assets of the Boston Society of the New Jerusalem Church.
MacKenzie, 56, of Weymouth, pleaded guilty before U.S. District Court Judge F. Dennis Saylor IV to 13 counts, including Rico conspiracy, racketeering, mail fraud, wire fraud, and money laundering. Sentencing is scheduled for Jan. 23, 2015 at 2:00 p.m.
In September 2002, MacKenzie became a member of the Church, which was one of the first Swedenborgian churches in Massachusetts, and in 2003, he became the “Director of Operations,” a position that had not previously existed and paid him a starting salary of over $100,000 per year. With the purpose of draining the church of its assets, he began voting himself and his associates into positions of authority within the Church, and consolidating and fortifying his control by, among other things, changing the Church’s by-laws for his own benefit. MacKenzie was able to gain control over substantial church assets, including an 18 story apartment building in downtown Boston, because the Church had a small number of voting members, many of whom were elderly.
After obtaining control, MacKenzie began to steal Church funds through a combination of fraud, deceit, theft, and bribery. Moreover, MacKenzie intimidated and threatened individuals who were employed by and did work at the Church by, among other things, providing them with signed copies of his 2003 autobiography, Street Soldier: My Life as an Enforcer for Whitey Bulger and the Boston Irish Mob. In the autobiography, MacKenzie admitted to a lengthy criminal history, including burglary, robbery, armed assault, and narcotics trafficking.
As MacKenzie admitted in Court today, a goal of the conspiracy was to obtain power and influence within the Church so that he and his co-conspirators could defraud the Church of its considerable financial holdings and profit from transactions involving the Church. MacKenzie’s fraud cost the Church millions of dollars.
“The defendant preyed on the elderly and unsuspecting congregation of a well-established Boston church for more than a decade,” said United States Attorney Carmen M. Ortiz. “Posing as a director with the best interests of the church as a guise, he was in fact just the opposite: a criminal bent on personal gain who siphoned the considerable income of the charitable institution that he had an obligation to protect.”
The charging statutes provide a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of twice the gross proceeds from the racketeering offense. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Zachary Hafer and Dustin Chao of Ortiz’s Public Corruption and Special Prosecutions Unit.
Pre-Trial Conference HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- The United States Attorney’s Office advises that there will be a pre-trial conference hearing tomorrow (October 22, 2014) in United States v. James William Lewis and Kirstie Elaine Philome Barratt. The hearing will be held at 9:30 am on October 22, 2014, before United States District Judge Joseph F. Anderson, Jr. (courtroom # 4) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
Portsmouth Man Sentenced to 35 Years in Prison for Heroin and Crack DistributionRead the Press Release
NORFOLK, Va. –Antwan Black, a/k/a “Twizzy,” 31, of Portsmouth, Virginia, was sentenced today to 30 years in prison, followed by 8 years of supervised release for the distribution of heroin and crack cocaine. He was further sentenced to an additional consecutive 5 years in prison for possessing a firearm in furtherance of drug trafficking.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after sentencing by Senior United States District Judge Robert G. Doumar.
According to court documents, Black was the leader of a drug trafficking organization out of Portsmouth, Virginia. Between 2009 and July, 2013, Black sold heroin, cocaine-base and cocaine in the Portsmouth area. In 2012 and 2013, Black began using other individuals to man hotel rooms in the downtown Portsmouth area to sell drugs. Black furnished the room with ounces of heroin and crack cocaine daily. He paid for the hotel rooms, cell phones and other costs for his dealers. At the end of the day, Black retrieved the money from sales and would re-supply the room. Black carried a firearm with him during most of his drug deliveries. He and his co-conspirators also used homes of drug users to sell their narcotics. Drug users were given free drugs for access to their homes. As part of the investigation, authorities recovered two loaded firearms – a 9 mm semi-automatic handgun and a MK99 assault rifle – from residences used by Black. Both firearms were loaded.
Black was indicted by a federal grand jury on January 10, 2014 and pleaded guilty to conspiracy to distribute 100 grams or more of heroin and 28 grams or more of crack cocaine on March 17, 2014.
This case was investigated by the Federal Bureau of Investigation and the Portsmouth Police Department. Special Assistant U.S. Attorney Amy Cross 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 EasternDistrict 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. 2:14-cr-15.
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Pineville Woman Sentenced to 15 Months in Prison for Stealing Money from Former EmployerRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. handed down a 15-month prison sentence to a Pineville woman today for stealing money from her former employer, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Joan Elliott, 69, of Pineville, was also ordered to serve three years under court supervision and to pay $406,929 as restitution.
Russell F. Nelson, Special Agent in Charge of the United States Secret Service, Charlotte Field Division joins U.S. Attorney Tompkins in making today’s announcement.
According to court to documents and today’s sentencing hearing, Elliott was employed as a bookkeeper by a Charlotte-based association representing the lumber and building material industry. Court records show that among Elliott’s responsibilities were issuing company checks to pay business expenses and depositing to the company’s bank account check payments for administrative fees from the insurance company used by members of the association. According to court filings, from 2006 to 2009, Elliott used company checks to pay for personal expenses, falsely representing that the funds were used as payment of legitimate business expenses.
Court records indicate that during the same time period, Elliott further defrauded her employer by failing to deposit to her employer’s bank account checks sent by the company’s insurance company. Instead, records show, Elliott used those checks to pay for personal expenses, by taking the checks to the bank and directing the bank to rewrite official bank checks for the same amounts that Elliott then used toward personal expenditures. Elliott fraudulently obtained between $200,000 and $400,000 from her former employer, court records indicate. According to today’s sentencing hearing, Elliott used some of the stolen funds to pay for, among other things, a car, furniture, and spa visits. Elliott pleaded guilty in January 2013 to one count of forged securities.
Elliott has been released on bond and will be allowed to self-report to begin serving her prison term once the Federal Bureau of Prisons has designated a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the U.S. Secret Service. The case was prosecuted by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Penobscot Man Convicted of Possessing Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Kevin
Lee Ross, 52, of Penobscot, Maine, was found guilty today after a one-day jury trial in U.S.
District Court of possessing child pornography.Court proceedings revealed that in July 2011 a search warrant was executed at the
defendant’s residence in Penobscot. The defendant was the only person at the residence at that
time. Agents found a child pornography video playing on one of the defendant’s computers. A
forensic examination of computers seized from the residence revealed thousands of images and
hundreds of videos of child pornography.Ross faces 10 years in prison and a $250,000 fine, or both. He agreed to forfeit the
computers. He will be sentenced after the completion of a presentence investigation report by
the U.S Probation Office.The investigation was conducted by the U.S. Postal Inspection Service and the Maine
State Police Computer Crimes Unit.Officials Take Down Alleged Gang-Affiliated Drug Traffickers in Imperial County; Take Drugs and Guns Off the StreetRead the Press Release
EL CENTRO – Thirty alleged members of a large-scale methamphetamine and heroin drug trafficking organization in Imperial County are charged in federal grand jury indictments unsealed today with conspiring to import and distribute the illicit drugs.
Early this morning, a contingent of federal, state, and local law enforcement officials arrested 43 people – including those under federal indictment plus others who will be charged by the state - and seized drugs, cash, vehicles and 14 firearms in connection with the year-long investigation. During the predawn raids, agents also served 38 search warrants in Calipatria, El Centro and Brawley. The firearms ranged from handguns to assault rifles.
The arrests were based on two grand jury indictments. The charges include conspiracy to import and distribute methamphetamine and heroin and possession of methamphetamine and heroin with intent to distribute. So far, authorities have seized more than 30 pounds of methamphetamine with an estimated street value of 1 million dollars.
“With these arrests and charges, we have taken the first step in wiping out a major connection to methamphetamine in the valley,” said U.S. Attorney Laura Duffy. “This type of investigation and prosecution has a significant impact on public safety and quality of life in this community.”
“Today the Imperial Valley law enforcement community has taken down a widespread narcotics distribution ring that supplied the vast majority of the meth and heroin on the streets in El Centro, Brawley and Calipatria,” said Joe Garcia, interim special agent in charge for ICE HSI in San Diego. “While the impact on public safety in these communities will be far-reaching for the law abiding residents, our united force sends a bold message that criminals involved in smuggling drugs and weapons and gang activity should fear.”
The investigation involved federal wiretaps and extensive surveillance. Numerous defendants are documented members or associates of gangs, including individuals with ties to the North Side Centro, East Side Centro, and West Side Centro street gangs in El Centro, California; the Broleno street gang operating in Brawley, California; and the Calipas street gang operating in Calipatria, California.
The indictments and search warrants describe a conspiracy among a number of family members – parents, siblings, cousins, married couples - who formed the Lozano-Gonzalez drug trafficking organization. The organization allegedly imported methamphetamine and heroin from Mexicali and smuggled it through the Calexico ports of entry via pedestrian couriers and cars, into Imperial County.
Imperial Valley street gang members and those associated with the street gangs acted as a distribution network for the methamphetamine and heroin supply. Several documented gang members and associates are charged in the indictments.
Methamphetamine is a scourge in just about every community in this country, and Imperial County is no exception.
The U.S. Attorney’s office in the Southern District of California has seen a startling increase in the number of methamphetamine cases in the last five years in Imperial County – from 88 in FY 2010 to 134 cases in FY 2014. That’s 52 PERCENT more meth cases.
Today, methamphetamine-related prosecutions make up 70 percent of all federal drug prosecutions in the Imperial Valley. Just a few years ago, in 2010, methamphetamine was just 18 percent of our drug cases.
According to the Imperial County Coroner, the number of deaths due to methamphetamine has remained steady over the last several years in the county, averaging about 8 a year, except for a big spike last year, when there were 18 deaths attributed to methamphetamine use.
“We’ve really got a tremendous public health crisis on our hands,” U.S. Attorney Duffy said. “Meth destroys lives, families and communities. We are absolutely committed to making our neighborhoods safe from violent gang activity, drug trafficking and the devastating impact of methamphetamine and other dangerous drugs.”
Duffy said her office is engaged in ongoing communications with Mexican counterparts, both here and in Mexico City, on jointly attacking this issue. “We are evaluating the problem and working to come up with strategies.”
U.S. Attorney Duffy praised the law enforcement agencies of the Immigration and Customs Enforcement, Homeland Security Investigations; the Imperial County District Attorney’s Office; the El Centro Police Department; and more than a dozen other agencies that assisted with this huge takedown, believed to be the largest in Imperial County to date.
This investigation was conducted under the federal Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program was created to consolidate and utilize all law enforcement resources in this country’s battle against major drug trafficking.
United States Attorney, Laura Duffy appearing at the press conference.
DEFENDANTS Case Number: 14-CR-3007 Francisco Lozano-Moreno, Jr. Daniel Becerra-Jimenez Ismael Lucio Guadalupe Avila-Parra Jose Alberto Jose Aquiles Gomez-Zayas Jesus Gonzalez-Lozano Rodrigo Gonzalez-Lozano Mike Angel Saiza, Jr. Armando Mayorga Ramon Munoz Joe Angel Franco Abel Hernandez Ambriz Raul Rodriguez Julissa Janeth Leal-Hernandez Alexis Pinedo Ambriz Juan Carlos Lozano Carolina Orozco-Vasquez Isabel Sanchez Breanne Nicole Williams Cindy Marie Mendivel Gerald Anthony Phillips Jason Jerry Gonzalez CHARGESConspiracy to Import Methamphetamine in violation of Title 21, U.S.C. Secs. 952, 960 and 963;
Conspiracy to Distribute Methamphetamine in violation of Title 21, U.S.C., Secs. 841(a)(1) and 846;
Possession of Methamphetamine with Intent to Distribute in violation of Title 21, U.S.C., Sec. 841(a)(1);
(Not all counts apply to all defendants)
Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a $10 million dollar fine.
DEFENDANTS Case Number: 14-CR-3008 Raphael Villasenor Cesar Adrian Gomez Eriberto Gonzalez-Ruiz Luis Fernando Calderon Nava Orlando Quintero Monique Vania Camargo Shandra Decoye Camargo *Fugitives CHARGESConspiracy to Distribute Heroin in violation of Title 21, U.S.C. Secs. 841(a)(1) and 846;
INVESTIGATING AGENCY
Conspiracy to Distribute Methamphetamine in violation of Title 21, U.S.C., Secs. 841(a)(1) and 846;
Possession of Heroin with Intent to Distribute in violation of Title 21, U.S.C., Sec. 841(a)(1);
Possession of Methamphetamine with Intent to Distribute in violation of Title 21, U.S.C., Sec. 841(a)(1);
(Not all counts apply to all defendants)
Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a 10 million dollar fine.El Centro Police Department
Immigration and Customs Enforcement, Homeland Security Investigations
Imperial County District Attorney’s Office
Imperial County Sheriff’s Office
U.S. Customs and Border Protection, Field Operations
U.S. Border Patrol
Brawley Police Department
Calipatria Police Department
Calexico Police Department
Imperial County Narcotics Task Force
Drug Enforcement Agency
Bureau of Alcohol, Tobacco, Firearms and Explosives
Bureau of Land Management
California Highway Patrol
U.S. Marshals Service*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.