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3 December 2014
Boone County heroin dealer sentenced by federal court to eight yearsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Leonard Dillon, 58, of Bim, Boone County, West Virginia was sentenced in federal court in Charleston today to eight years in federal prison for distributing heroin in Boone County. Dillon previously pleaded guilty in August of 2014.
On March 21, 2013, Dillon sold heroin to a confidential informant working with law enforcement. On four other occasions in March and April of 2013, Dillon sold heroin and oxycodone to the same confidential informant.
The investigation was conducted by the United States Drug Enforcement Administration and the Boone County Sheriff’s Office. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution.
The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
Bogalusa Man Sentenced for Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DONNIE PITTMAN, age 52, of Bogalusa, was sentenced yesterday, having previously pled 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 PITTMAN to 36 months incarceration and three years of supervised release.
On February 6, 2014, PITTMAN 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 pleaded guilty in this case, and the defendant, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes.
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.
Baltimore Man who Robbed Eight 7-Eleven Stores Sentenced to 20 Years in PrisonRead the Press Release
Robbed Eight 7-Eleven Stores in 18 Days
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Bryant Smith, age 26, of Baltimore, to 20 years in prison, followed by three years of supervised release, for robbery and using a gun in furtherance of the robbery.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, from December 1 to 18, 2013, Smith and co-defendant John Robinson robbed eight 7-Eleven Stores using a loaded revolver. The stores were located in Baltimore on Boston Street, Holabird Avenue, West 33rd Street, Belair Road, Reisterstown Road, Harford Road, Frederick Road and Pulaski Highway. In each of the robberies, Robinson wore a mask and pointed the gun at the store employee, demanding money. Robinson or Smith, who was also masked, would take other items as well, such as cigarettes and lottery scratch-off tickets. On some occasions, Smith and/or Robinson would order the store employee to lie on the floor.
Co-defendant John Robinson, age 34, of Baltimore, was sentenced to 20 years in prison on August 1, 2014, on the same charges.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department; Baltimore City State’s Attorney’s Office, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Asbestos Removal Trainer Pleads Guilty to Sale of False CertificatesRead the Press Release
SAN DIEGO - United States Attorney Laura E. Duffy announced that Lachelle Rene Thrower pled guilty today to falsifying federal asbestos training certificates, admitting that over a four-year period she falsely certified over a hundred workers as being trained and qualified to safely remove asbestos.
According to court documents, Thrower was employed by an approved provider of asbestos removal training. Any student seeking to be accredited to remove asbestos was required to complete four, eight-hour days of training, and to pass a written examination. Thrower admitted that between May 14, 2010, and August 5, 2014, she falsely certified 100-150 training certificates for asbestos workers who did not actually attend the training courses or take the necessary exam. Thrower kept the money paid by the non-attending trainees, and falsified the certificates by using an electronic signature of the authorized trainer. Her false certifications caused her employer to falsely report to the EPA-delegated agency (Cal/OSHA) that certain individuals had attended the asbestos training and passed the exam. Thrower also admitted that when trainees did actually attend classes and paid in cash, defendant would keep this cash herself instead of providing it to her employer. All told, Thrower caused a financial loss to her employer of between $10,000 and $30,000.
Training for asbestos abatement professionals is required under the Asbestos Hazard Emergency Response Act of 1986 (AHERA), as well as the Toxic Substances Control Act (TSCA). Section 206(a) of TSCA prohibits any person from removing asbestos from schools and commercial buildings unless that person has been trained under an EPA-approved program, or a State program accredited by the EPA that has been found to be at least as stringent as the model program developed by the EPA. The EPA has accredited the asbestos training program of the State of California, administered by the Occupational Safety and Health Administration of the State (Cal/OSHA).
“Unsafe disposal of asbestos endangers human health. To ensure compliance with environmental laws and regulations, government agencies need accurate and truthful information,” said Jay M. Green, Special Agent in Charge of EPA's criminal enforcement program in California. “Workers and the public are at risk when proper asbestos remediation training is not conducted, while people like the defendant fraudulently and cynically line their pockets. Fortunately, Thrower’s employer has cooperated with investigators and has identified the falsified certificates for Cal/OSHA. Today’s guilty plea demonstrates, however, that those who try to make money by breaking the law will be prosecuted.”
FBI Special Agent in Charge, Eric S. Birnbaum, commented, “Because Ms. Thrower's employer expeditiously reported her criminal conduct to the FBI and the Cal OSHA, law enforcement was able to swiftly identify and prevent improperly credentialed asbestos workers from any asbestos removal employment. The FBI and our law enforcement partners will aggressively pursue those who jeopardize the public's health while satisfying their own greed.”
Thrower is scheduled to appear before United States District Court Judge Marilyn L. Huff on February 17, 2015, at 8:30 a.m. for sentencing.
DEFENDANTS Case Number: 14-CR-3485-H Lachele Rene Thrower Age: 44 San Diego, California CHARGESFalse Statements: Title 18, United States Code, Section 1001.
Maximum Penalty: 5 years in custody, the greater of a $250,000 fine or twice the illegal gain or loss, and a $100 penalty assessment.
INVESTIGATING AGENCYEnvironmental Protection Agency, Criminal Investigations Division
Federal Bureau of InvestigationArdmore/Davis Man Sentenced to 24 Months, $14 Million Restitution for Bank FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that W.A. MOORE, JR., a/k/a "Dub" Moore, age 75, of Ardmore, Oklahoma, formerly of Davis, Oklahoma, was sentenced to 24 months imprisonment for Bank Fraud, in violation of Title 18, United States Code, Section 1344. The defendant was also ordered to pay $14,698,660.98 in restitution.
The charge arose from an investigation by the United States Department of Agriculture and the Federal Bureau of Investigation.
MOORE pled guilty in February, 2014 to an Information alleging that from on or about October 1, 2009 and continuing through March, 31, 2011, in the Eastern District of Oklahoma, Defendant, W.A. MOORE, JR., a/k/a "Dub" Moore, devised a scheme and artifice to defraud First National Bank of Davis, a bank whose deposits were insured by the Federal Deposit Insurance Corporation, to wit: the defendant knowingly and fraudulently approved nominee loans for the benefit of bank customers in order to avoid the bank's legal lending limit.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the sentencing. The defendant was ordered to report to the Bureau of Prisons on January 14, 2015.
Assistant United States Attorneys Melody Nelson and Tom Wright represented the United States.
Albuquerque Businessman Indicted on Federal Tax ChargesRead the Press Release
Owner of Sneakerz, Inc., an Albuquerque Sports Bar and Restaurant, Charged with Evading Taxes and Filing False Tax Returns
ALBUQUERQUE – James E. Coleman, Jr., the president and owner of Sneakerz, Inc., a corporation that operates “Sneakerz Sports Bar” in Albuquerque, N.M., was arrested yesterday on federal tax charges, announced U.S. Attorney Damon P. Martinez and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Coleman, 57, of Albuquerque, N.M., made his initial appearance in federal court this morning on a four-count indictment alleging tax evasion and subscribing false tax returns charges. Coleman remains in custody pending his arraignment on the indictment and a detention hearing which have yet to be scheduled.
Counts 1 and 2 of the indictment allege that Coleman evaded approximately $166,320.00 in federal taxes owed by his corporation to the United States in calendar years 2008 and 2009 by filing false tax returns that underrepresented his corporation’s taxable income. More specifically, Count 1 alleges that Coleman evaded approximately $90,661.00 in federal taxes by falsely claiming that his corporation had $621,064 in taxable income in calendar year 2008 despite knowing that the corporation had $886,128 in taxable income for that year. Count 2 alleges that Coleman evaded approximately $75,659.00 in federal taxes by falsely claiming that his corporation had $731,581.00 in taxable income in calendar year 2009 despite knowing that the corporation had $932,235.00 in taxable income for that year.
Counts 3 and 4 allege that Coleman subscribed filed individual tax returns for calendar years 2008 and 2009 that were materially false. Each of the charges alleges that Coleman’s tax returns falsely reported that Coleman received no dividend income and no business income during those two calendar years.
If convicted, Coleman faces a maximum statutory penalty of five years in federal prison on each of Counts 1 and 2, the tax evasion charges. Coleman faces a maximum statutory penalty of three years in federal prison if convicted on Counts 3 and 4, the subscribing false tax returns charges. Charges in indictments are merely accusations. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Jeremy Peña.
30-Year Prison Term for Turlock Sex OffenderRead the Press Release
FRESNO, Calif. — Chief United States District Judge Morrison C. England Jr. sentenced Jeffrey Randall Metcalfe, 47, of Turlock, to 30 years in prison, to be followed by a lifetime term of supervised release, for receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, agents received information that Metcalfe had used an Internet connection to create at least 17 accounts on a photo-sharing website. Metcalfe had posted numerous images to the site and made comments about his interest in child pornography. When a search warrant was executed at his residence on December 19, 2013, investigators found a computer that contained a screen saver with images of children being sexually exploited as well as thousands of printed and digital images of child pornography. Metcalfe admitted in a plea agreement that between January 2012 and December 1, 2013, he knowingly used a computer and the Internet to receive and distribute images of child pornography. He also admitted that on January 24, 2000, he had suffered a previous conviction in federal court in Fresno for possession of child pornography. He has been detained as a danger to the community and flight risk since his initial appearance in federal court on December 23, 2013.
“Tragically, this case is not unusual — it’s all too common for defendants in child sexual exploitation cases to reoffend,” said Michael J. Toms, the acting assistant special agent in charge who oversees HSI Fresno. “That’s why HSI and its law enforcement partners must remain vigilant. It’s the only way to protect our youth and ensure that individuals, like this defendant, are held accountable for their crimes.”
In sentencing, Judge England referenced the “extremely serious nature of the offense” and that this sentence was necessary to address the defendant’s “level of participation in the process” of the sexual exploitation of minors.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Turlock Police Department. Assistant U.S. Attorney David Gappa prosecuted the case.
It was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
2 December 2014
U.S. Trustee Program Announces Successful Conclusion of Settlement with Citigroup Inc. to Protect Consumers’ Personal Information in Bankruptcy CasesRead the Press Release
Independent Auditor Finds Citigroup Properly Redacted
WASHINGTON – The U.S. Trustee Program (USTP) announced today that the independent auditor appointed under a nationwide settlement between the USTP and Citigroup Inc. (Citi) to protect the personal information of nearly 150,000 consumers in 85 jurisdictions has filed his final report, bringing the settlement to a successful conclusion.
Personal Information of Nearly 150,000 ConsumersUnder the settlement, Citi agreed to redact proofs of claim filed in bankruptcy cases nationwide in which the personal information of consumer debtors and third parties, including Social Security numbers and birthdates, had not been properly redacted by Citi as required by the bankruptcy rules. Also under the settlement, Citi agreed to notify all affected consumers and offer them one year of free credit monitoring and to change its internal practices and procedures so the redaction error does not recur. The settlement called for the appointment of a privacy expert to serve as independent auditor to review and certify the accuracy of the remediation process.
“It is important for creditors and other parties who file documents in consumer bankruptcy cases to understand their legal duty to protect certain personal information, and to take corrective action when they have not done so,” stated Executive Office for U.S. Trustees Director Cliff White. “This settlement helps to ensure that a bankruptcy filing does not make a consumer’s privacy protected information vulnerable to misuse by wrongdoers.”
Settlement Resolved U.S. Trustee’s Objection
The settlement resolved the U.S. Trustee’s objection to a motion filed by Citi admitting that personal information that should have been redacted under bankruptcy court rules had not been properly redacted when Citi’s subsidiaries filed bankruptcy proofs of claim seeking payment of amounts allegedly owed by debtors. The U.S. Trustee had objected to Citi’s motion because it did not provide public notice of the nationwide scope of the breach or mandate a verifiable solution to correct the problem and prevent its recurrence. The settlement between the U.S. Trustee and Citi was approved by the U.S. Bankruptcy Court for the Southern District of New York on March 13, 2012.
During the verification process mandated by the settlement, Citi discovered additional improperly redacted proofs of claim. Consequently, Citi prepared a plan of corrective action to include the redaction of approximately 50,000 additional bankruptcy filings. The U.S. Trustee also expanded the auditor’s duties to include a review and certification of Citi’s redaction policies and procedures to safeguard consumers and prevent recurrence of the redaction error.In his report filed with the bankruptcy court on December 1, 2014, independent auditor Eric Dieterich of Sunera LLC concluded that Citi satisfied the requirements of the settlement and related corrective action plans. The auditor also concluded that, as required by the settlement, Citi instituted policies and procedures for future filings that are reasonably calculated to prevent recurrence of the redaction error.
The auditor’s final report is filed in In re Matter of Citi Replacement Filings, No. 11-00405 (Bankr. S.D.N.Y.).
The USTP is the component of the Department of Justice that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411- Two South Texas Men Arrested for Conspiracy to Traffic Marijuana and Money Laundering
Two Sentenced on Firearms ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Two West Virginia residents were sentenced in federal court on firearms charges, United States Attorney William J. Ihlenfeld, II, announced today.
Shaquille Montel Robinson, 23, of Ranson, West Virginia, was sentenced to 37 months in prison for unlawful possession of a firearm. Robinson was previously convicted in October 2012 of the felony offenses of “Wanton Endangerment” and “Unlawful Assault” in the Circuit Court of Jefferson County, West Virginia. As a result of that conviction, he was prohibited from possessing a firearm. During a March 2014 investigation by the Ranson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, Robinson was discovered in possession of a 9mm pistol and ten rounds of 9mm ammunition. He pled guilty in August 2014 to one count of "Felon in Possession of /Firearm and Ammunition."
Jeff Chaney, 36, of Romney, West Virginia, was sentenced to twelve months and one day in prison. An investigation by the Hampshire County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives revealed that Chaney knowingly sold three rifles to a convicted felon while operating an antiques and collectibles store without a Federal Firearms License. He pled guilty in August 2014 to one count of "Sale and Transfer of Firearm to a Prohibited Person - Aiding and Abetting."
Assistant U.S. Attorney Jarod Douglas prosecuted Robinson and Assistant U.S. Attorney Paul Camilletti prosecuted Chaney on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Two Sentenced for Cocaine TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – A Maryland man and a Martinsburg, West Virginia resident were sentenced for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced today.
Patrice Dominique Stephens, 34, of Westernport, Maryland, was sentenced to 60 months in prison for selling cocaine near Keyser, West Virginia. He pled guilty in August 2014 to one count of "Distribution of Cocaine” following an investigation by the Potomac Highlands Drug and Violent Crime Task Force.
Walter Evans, 43, of Martinsburg, West Virginia, was sentenced to twelve months in prison after he was discovered in possession of crack cocaine in October 2012 near Berkeley County, West Virginia. He pled guilty in August 2014 to one count of "Possession with Intent to Distribute Cocaine Base" following an investigation by the West Virginia State Police and the U.S. Drug Enforcement Administration.
Assistant U.S. Attorney Jarod Douglas prosecuted Stephens and Assistant U.S. Attorney Paul Camilletti prosecuted Evans on behalf of the government.
U.S. District Judge Gina M. Groh presided.Two Men Admit Participation in Check Fraud RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two men involved in a check fraud ring have pleaded guilty in Hartford federal court. BENJII CARR, also known as Rodrick Lawon Davis, 39, of New Haven and North Carolina, pleaded guilty today to one count of conspiracy to commit bank fraud. LANGSTON XAVIER NEAL, 37, of Charlotte, North Carolina, pleaded guilty to the same charge yesterday.
According to court documents and statements made in court, between July 2010 and May 2011, CARR, NEAL and Brandon Key Bentley obtained stolen checks, recruited “runners” who cashed the checks, and altered the checks to list the runners as the lawful payees. The three individuals drove the runners to several Connecticut bank branches and directed them to enter the banks and cash the checks. The runners were paid a small part of the cash proceeds. Through this scheme, 39 checks totaling $114,102.34 were altered and presented to banks, and 37 of those checks totaling $104,070.94 were cashed by the banks.
On September 9, 2014, Bentley, 31, of New Haven, also pleaded guilty to one count of conspiracy to commit bank fraud.
CARR, NEAL and Bentley are scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant in February 2015. Each defendant faces a maximum term of imprisonment of 30 years and a fine of up to $1 million.
This matter has been investigated by the U.S. Postal Inspection Service, along with the Connecticut Financial Fraud Task Force and the Branford, Madison, Middlebury, Milford, New Britain, New Haven, New Milford, North Branford, Waterbury, Woodbridge and Southbury Police Departments. U.S Attorney Daly also acknowledged the cooperation and assistance of the State’s Attorney’s Offices for the Judicial Districts of New Haven, Waterbury, Fairfield and Tolland. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Two Members of Laguna Pueblo Sentenced for Convictions Arising Out of Drive-By Shooting of Acoma Pueblo HomeRead the Press Release
ALBUQUERQUE – Two members of Laguna Pueblo were sentenced this morning in federal court for assault convictions arising out of the drive-by shooting of an Acoma Pueblo home. Preston Chino, 22, and Cameron Joseph Kasero, 21, were each sentenced to 96 months in federal prison followed by three years of supervised release.
Chino and Kasero, together with co-defendants Andrea Carrillo, 22, and Joseph Edward Lucero, 25, were indicted on assault and firearms offenses in July 2013. The indictment alleged that the quartet assaulted two men and a woman on Dec. 9, 2012, by discharging firearms at a residence located in Acoma Pueblo in Cibola County, N.M.
Chino entered a guilty plea on Aug. 27, 2014, to an assault charge, and admitted aiding Kasero and Lucero in assaulting the three victims by providing them with shotguns and ammunition. He also admitted driving his co-defendants to the victims’ Acoma Pueblo home where they discharged the shotguns multiple times in the direction of the residence.
Kasero entered a guilty plea to an assault charge on Sept. 2, 2014. During his plea hearing, Kasero admitted assaulting the victims by discharging a shotgun at a residence while it was occupied by the victims.Carrillo also pled guilty to an assault charge on Sept. 2, 2014, and admitted aiding the assault on the victims by providing her co-defendants with directions to the residence with the understanding that her co-defendants intended to commit an assault at that location. Carrillo is scheduled for sentencing on Jan. 20, 2015, when she faces a statutory maximum penalty of ten years in prison.
Lucero entered a guilty plea to an assault charge on Sept. 9, 2014, and admitted repeatedly discharging a weapon at the victims’ residence. Under the terms of his plea agreement, Lucero will be sentenced to a prison term within the range of 72 to 96 months. Lucero’s sentencing hearing is scheduled for Dec. 9, 2014.This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA’s Office of Justice Services, the Acoma Pueblo Tribal Police and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.
Two Hagerstown, Maryland Men Sentenced for Heroin TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Delano Alan Butler, 34, and his father, Alan Ira Butler, 58, both of Hagerstown, Maryland, were sentenced for selling heroin near Martinsburg, West Virginia, United States Attorney William J. Ihlenfeld, II, announced today.
Delano Butler was sentenced to 100 months in prison. He pled guilty in August 2014 to one count of "Distribution of Heroin.” Alan Butler, was sentenced to 37 months in prison. He pled guilty in August 2014 to one count of "Aiding and Abetting Distribution of Heroin." The Washington County/Drug Enforcement Administration Hagerstown, Maryland Task Force and the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
In another matter, Dennis Dwayne Butts, 38, of Martinsburg, West Virginia, was sentenced to 24 months in prison for selling heroin. He pled guilty in September 2014 to one count of "Distribution of Heroin."
Assistant U.S. Attorney Jarod Douglas prosecuted Delano and Alan Butler and Assistant U.S. Attorney Paul Camilletti prosecuted Butts on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Three Plead Guilty in Gambling Case and Forfeit $20 MillionRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Bobby Mosley, Sr., age 63, of Townville, South Carolina; J. Michael Caldwell, age 42, of Williamston, South Carolina; and Frontier Software Systems, LLC, pled guilty today in federal court in Greenville. Mosley pled guilty to operating an illegal gambling business in violation of 18 U.S.C. § 1995; Caldwell pled guilty to serving as an accessory after the fact to transportation of gambling machines in interstate commerce in violation of 18 U.S.C. § 3; and Frontier Software Systems, LLC, pled guilty to a money laundering conspiracy in violation of 18 U.S.C. § 1956(h). United States District Judge Bruce Howe Hendricks of Greenville accepted the guilty pleas from all three defendants and entered an order of forfeiture whereby the defendants agree to forfeit $20 million to the United States that was derived from criminal activities.
According to the plea agreements and other documents filed in the case, in addition to the three convictions and $20 million forfeiture, the gambling business must move its headquarters out of the District of South Carolina and is banned from engaging in software design, development, or shipment of gambling machines or software in or from the District of South Carolina. The plea agreements recommend probationary sentences for the Defendants and the dismissal of the remaining corporate defendants.
The evidence presented at the change of plea hearing established that Bobby Mosley, Sr. owned a gambling business that was headquartered in Piedmont, South Carolina. In October 2013, federal search and seizure warrants were executed where agents seized several hundred gambling machines and other evidence. South Carolina Code Section 12-12-2710 prohibits the possession of gambling machines in the state of South Carolina. Three hundred and sixteen of the machines seized were “old-fashioned” or “stand-alone” video-poker-type gambling machines. The machines are constructed so that a customer inserted cash directly into the machine, chose the amount of the bet, and watched the electronic simulation of slot machine reels. Once the customer finished playing, and, if the customer won, the machine printed a slip of paper that the customer took to the cashier. The cashier paid the customer in cash. Mosley’s gambling business then split its winnings with the gambling parlor where the machine was operated. Caldwell assisted Mosley in moving these illegal machines in interstate commerce.
Frontier Software Systems, LLC, and others combined to conduct a series of financial and monetary transactions involving the proceeds from the illegal gambling business. Operators of gambling establishments that used Frontier’s software would pay a percentage of the operational net revenue from the gambling activity. Frontier would then use this money to further the gambling business by purchasing, for example, gambling equipment and/or cabinetry through vendors.
The case was investigated by agents of the United States Secret Service, Internal Revenue Service, and various state and local law enforcement agencies. Assistant United States Attorney Bill Watkins and Max Cauthen of the Greenville office handled the case.Three Plead Guilty to Drug, Gun ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA – The first three of nine defendants charged with federal drug distribution conspiracy charges pled guilty today in the United States District Court for the Western District of Virginia in Charlottesville.
James Alexander Clore, 23, of Culpeper, Va., Renee Harris, 43, of Charlottesville, Va. and Marcus Lee Strother, 23, of Culpeper, Va., were indicted in August 2014, along with six other individuals, on charges related to a conspiracy to distribute cocaine and heroin.
“Mr. Clore, an armed drug dealer, along with Ms. Harris and Mr. Strother, imported and sold large amounts of crack cocaine and heroin, endangering the health and safety of our community,” United States Attorney Timothy J. Heaphy said today. “Because of the effective work of a multi-agency team of investigators, their illegal business has been dismantled and our safety enhanced.”
Today in District court, Clore pled guilty to one count of conspiring to distribute and possess with the intent to distribute 280 grams or more of crack cocaine, one count of conspiring to distribute and possess with the intent to distribute heroin and one count of possessing and using firearm in furtherance of a drug trafficking crime.
Also today in District Court, Strother pled guilty to one count of conspiring to distribute and possess with the intent to distribute crack cocaine, one count of conspiring to distribute and possess with the intent to distribute heroin. Harris pled guilty to a lesser offense of conspiring to distribute and possess with the intent to distribute crack cocaine.
According to a statement of facts proffered today in court by the United States, during the summer of 2013, several individuals living in the Culpeper area organized and established themselves along with individuals from Charlottesville for the purpose of selling crack cocaine, heroin and firearms. The group came to the attention of law enforcement in late 2013 and was known informally as “Culpeper & Associates.” Clore has been identified by law enforcement as the “second in charge” and “right hand man” in Culpeper and Associates.
In December 2013, law enforcement believes a rival group, known informally as “South First Street,” stole a gun from a vehicle owned by a member of Culpeper and Associates. The suspected robbery set off a series of four different shootings between the two groups during the months of December 2013, February 2014, April 2014 and May 2014. Due to the threat to public safety, the Jefferson Area Drug Enforcement Task Force (JADE), the Federal Bureau of Investigation and the Drug Enforcement Administration immediately began an investigation into the activities of each group.
The investigation established that beginning in January 1, 2013, members of Culpeper and Associates were involved in the trafficking of narcotics and firearms, multiple shootings and the establishment and maintenance of a drug involved premises at 366 Riverside Avenue, an apartment within the City of Charlottesville and within 1,000 feet of Riverview Park.
At sentencing, Clore faces a maximum possible penalty of up to life in prison and/or a fine of up to $10 million on the cocaine conspiracy charge and a maximum possible penalty of up to 20 years in prison and/or a fine of up to $1 million on the heroin conspiracy charge. Clore also faces a mandatory five years in prison on the gun charge. Harris and Strother each face up to 20 years in prison and/or a fine of up to $1 million on the cocaine conspiracy charge. Strother also faces up to 20 years in prison and/or a fine of up to $1 million on the heroin conspiracy charge.
The investigation of the case was conducted by the Jefferson Area Drug Enforcement Task Force, the Charlottesville Police Department, the Albemarle County Police Department, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Culpeper Police Department and the Commonwealths Attorney’s Offices for the City of Charlottesville and the County of Albemarle. Special Assistant United States Attorneys Joseph Platania and Assistant United States Attorney Ronald Huber, with the assistance of third-year University of Virginia Law student Sarah Brigham, are prosecuting the case for the United States.
The Executive Office for Immigration Review Announces New Administrative Law JudgeRead the Press Release
FALLS CHURCH, Va. - The Executive Office for Immigration Review (EOIR) today announced the appointment of Stacy Stiffel Paddack as an administrative law judge (ALJ). ALJs at EOIR hear immigration-related employment cases in the Office of the Chief Administrative Hearing Officer (OCAHO), and do not hear removal cases in the immigration courts.
“We are excited to have Administrative Law Judge Paddack join our team and fill this critical position,” said Chief Administrative Hearing Officer Robin M. Stutman. “Her arrival will increase OCAHO's capacity to adjudicate employer sanctions and anti-discrimination cases, thereby expediting the recovery of worksite enforcement fines and remediation of illegal immigration-related employment discrimination.”
Biographical information follows.
Stacy Stiffel Paddack, Administrative Law Judge
Stacy Stiffel Paddack was appointed as an administrative law judge (ALJ) for the Office of the Chief Administrative Hearing Officer (OCAHO), Executive Office for Immigration Review (EOIR), in December 2014. Judge Paddack received her bachelor of arts degree in 1989 from the University of Texas at Austin, a master of arts degree in 1994 from the School of International Service at American University, and a juris doctorate in 1997 from American University's Washington College of Law. From 2010 to 2014, Judge Paddack served as an ALJ for the Office of Disability Adjudication and Review, Social Security Administration, in Tallahassee, Fla., where she became the acting chief ALJ. From 2003 to 2010, she served as a senior litigation counsel in the Office of Immigration Litigation, Civil Division, Department of Justice. From 1998 to 2003, Judge Paddack served as an attorney advisor for EOIR's Board of Immigration Appeals and OCAHO, entering on duty through the Attorney General's Honors Program. Prior to 2003, Judge Paddack also served as an adjunct instructor in the Legal Rhetoric Program at American University's Washington College of Law. Judge Paddack is a member of the Maryland State Bar.
- 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.
Tampa Man Pleads Guilty During Jury Selection in Stolen Identity Refund CaseRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that James Lee Cobb, III has pleaded guilty to conspiracy to commit mail and wire fraud, five counts of wire fraud, five counts of aggravated identity theft, and one count of being a felon in possession of a firearm as an Armed Career Criminal. Cobb faces a maximum penalty of up to 20 years in federal prison for each of the conspiracy and wire fraud charges, 2 years for each aggravated identity theft charge, and a minimum mandatory of 15 years, up to life, in federal prison on the firearm charge. Sentencing is scheduled for February 27, 2015.
According to court testimony, Cobb conspired with others to use more than 7,000 stolen names, dates of birth, and Social Security numbers to file false tax returns and open pre-paid debit cards. He also obtained “burner” phones using stolen identities. From an unknown date in 2011, and continuing through November 2013, Cobb and his co-conspirators filed false tax returns claiming approximately $3 million in refunds.
During the execution of a search warrant at Cobb’s residence, law enforcement officers recovered lists and medical records containing the personal identifying information of more than 7,000 victims. Many of the victims had their identities stolen from healthcare facilities, including from the James A. Haley VA hospital; the Florida Hospital (formerly known as University Community Hospital); ambulance services in Virginia, Georgia, and Texas; a local medical billing company; and court records. In addition, a number of deceased victims’ names were obtained from a genealogy website.
Officers also found two guns in the residence – a loaded handgun and an AR-15-style rifle with a fully-loaded 30-round magazine. At the time of this offense, Cobb was on supervised release from a prior federal firearm conviction.
This case was investigated by the Tampa Police Department, the Internal Revenue Service - Criminal Investigation, the U.S. Department of Veterans Affairs’ Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and members of the Tampa Bay Identity Theft Alliance, including the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo and U.S Department of Justice Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
Stotts City Man Sentenced to 15 Years in Prison for Attempting to Produce Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Stotts City, Mo., man was sentenced in federal court today for attempting to manufacture child pornography by secretly videotaping a child victim in the shower.
Christopher L. Modglin, 45, of Stotts City, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
On Aug. 13, 2014, Modglin pleaded guilty to one count of attempting to manufacture child pornography. Modglin admitted that he secretly recorded video of a child victim between the ages of 11 and 13 years old taking a shower. Modglin also admitted that he owned several computers that contained images and movies of child pornography.
The Lawrence County, Mo., Sheriff’s Department was notified that the child victim had reported Modglin tried to put a camera in her bedroom on multiple occasions. Based on this information, the child victim was interviewed at the Child Advocacy Center. During the interview, the child victim stated that she had seen a video on Modglin’s cell phone of herself taking off a swim suit and getting into a shower.
Sheriff’s deputies executed a search warrant at Modglin’s residence and seized three desktop computers and a laptop computer, all of which contained images and movie files of child pornography involving victims between the ages of 8 to 13 years old. One of the desktop computers contained seven video files that Modglin had made of the child victim in various stages of undress. Officers also seized a thumb drive that contained one of the videos of the child victim, which had been erased. The same thumb drive also contained an erased child pornography movie file. Three additional computers did not contain any child pornography.
In total, the officers seized material that contained seven video files of child pornography manufactured by Modglin, 51 movie files that contained child pornography and 17 images of child pornography.
When Modglin was arrested, officers also discovered a USB flash drive in his wallet that contained the seven video files he manufactured of the child victim.
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force and the Lawrence County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Serenity Hospice to Pay over $581,000 to Resolve False Claims Act LitigationRead the Press Release
Savannah, GA: Serenity Hospice Care, LLC of Dublin, Georgia, along with an affiliate corporation, has agreed to pay the United States a total of $581,504.46 to settle allegations that it submitted or caused the submission of false claims to the Medicare program for certain patients who were not eligible for hospice under Medicare regulations. The Medicare hospice benefit is available to patients who elect palliative care (care designed to relieve the pain, symptoms, or stress of terminal illness) instead of curative care (care designed to cure an illness or condition), and who have a life expectancy of six months or less if their illness runs its normal course.
The civil settlement resolves allegations that were originally part of a lawsuit filed under the qui tam (or “whistleblower”) provisions of the False Claims Act, in which a private party (known as the “relator”) can file an action on behalf of the United States and receive a portion of any recovery. As a result of the settlement, the relator will receive a share of the settlement proceeds.
United States Attorney Edward Tarver stated, “This case demonstrates that the United States Attorney’s Office for the Southern District of Georgia is committed to preserving the integrity of the Medicare program. The settlement helps ensure that the Medicare hospice benefit is used appropriately for patients who truly qualify.”
The case was investigated by Special Agent David J. Graupner, Department of Health and Human Services, Office of Inspector General, and Investigator Kimberly Reinken of the United States Attorney’s Office, Southern District of Georgia. The United States was represented by Assistant United States Attorneys Edgar D. Bueno and Charles W. Mulaney. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Salt River Man Sentenced to 20 Years in Federal Prison for Shooting OfficersRead the Press Release
PHOENIX – On Dec. 1, 2014, Micah Sobori Moquino, 20, of Scottsdale, Ariz., a member of the Salt River Pima-Maricopa Indian Community, was sentenced by U.S. District Judge G. Murray Snow to 240 months in federal prison. Moquino pleaded guilty on Sept. 18, 2014, to one count of assault with intent to commit murder and one count of assault with a dangerous weapon.
According to court documents, on Nov. 15, 2013, Moquino shot two Salt River Police Department officers with a 9 mm semi-automatic pistol, with the intent to murder one of the officers and to cause bodily harm to the other officer.
The investigation in this case was conducted by the Salt River Police Department and the FBI. The prosecution was handled by the U.S. Attorney’s Office for the District of Arizona, Phoenix.
CASE NUMBER: CR-13-01659-PHX-GMS
RELEASE NUMBER: 2014-069_MoquinoFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Rhode Island Builder Sentenced for Filing False Claims, Making False Statements to Collect $1.8M in Federal FundsRead the Press Release
PROVIDENCE, R.I. – Donald F. Ihlefeld, 71, of Cranston, R.I., owner of Alhambra Building Company of Warwick, R.I., was sentenced today in U.S. District Court in Providence to two years probation, ordered to perform 200 hours community service and to provide $20,000 in funding to the Rhode Island Foundation to support programs that assist immigrant populations in Rhode Island for filing false claims and false documents in order to collect more than $1.8 million dollars in federal funds during a renovation project of a former textile mill building in West Warwick, R.I.
Ihlefeld’s sentence, imposed by U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Peter F. Neronha and Phillip Coyne, special agent in charge of the Department of Health and Human Services, Office of Inspector General (HHS OIG).
An investigation by HHS OIG and the United States Attorney’s Office determined that Ihlefeld falsely represented that he paid employees locally prevailing wages for work performed during the renovation project of the former mill building into a walk-in health center. The construction project, known as the Cotton Shed Project, was funded in part by the American Recovery and Reinvestment Act of 2009, through grants provided by the U.S. Department of Health and Human Services, Health Resources and Services Administration.
According to court documents and information presented to the court, in October 2010, Thundermist Health Center, a non-profit community health center, awarded a contract to Alhambra Building Company as construction manager for the Cotton Shed Project. As a condition of payment, as required by the Stimulus Program pursuant to the Davis-Bacon Act, Alhambra Building Company was required to pay laborers no less than locally prevailing wages plus benefits. In bidding on the project, Alhambra noted its prior experience working on Davis-Bacon projects.
In January 2011 through mid-April 2011, Ihlefeld submitted invoices for payment for construction work performed by his company from December 2010 through January 2011 totaling approximately $1.8 million dollars, knowing that he and his company failed to pay employees local prevailing wages. Additionally, during the same time frame, Ihlefeld and his company submitted false certified payroll reports to Thundermist which misrepresented the identity of employees working on the project, total hours worked by employees and that it was paying Davis-Bacon wages to employees working on the project. The employees Alhambra failed to pay the appropriate wages were non-citizen Spanish speaking employees hired by Alhambra. Those employees were paid substantially less than the prevailing wage of approximately $34 per hour.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Reno, Nevada Man Pleads Guilty to Aggravated Identity Theft for Fraudulent Credit Card Use in BoiseRead the Press Release
BOISE – Rapphel Johnson, 28, of Reno, Nevada, pleaded guilty today in United States District Court to one count of aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Sentencing is set for February 18, 2015, before Chief U.S. District Judge B. Lynn Winmill.
Johnson was indicted in September 2014, for access device fraud (credit card fraud) and aggravated identity theft. According to the plea agreement, Johnson admitted that on September 1, 2014, he and a co-defendant knowingly used counterfeit credit cards containing the account numbers of real people to make a number of fraudulent purchases in Boise at stores including Rite Aid, Subway, T-Mobile, Finish Line, and Macy’s. In particular, Johnson admitted using a counterfeit credit card, with another person’s account number, to purchase a Microsoft Surface Pro 3 at the Boise Towne Square Mall. Additionally, Johnson admitted that when he was contacted by police, at a motel room rented with a counterfeit credit card, Johnson threw several counterfeit credit cards out the motel room window.
A violation of aggravated identity theft is punishable by a mandatory minimum term of imprisonment of two years, a term of supervised release of not more than one year, a maximum fine of $250,000, and a special assessment of $100.
The case was investigated by the United States Secret Service and the Boise Police Department.
Principal in $28.3 Million Medicare Fraud Scheme Sentenced to 11 Years in PrisonRead the Press Release
A Florida owner and operator of multiple physical therapy rehabilitation facilities was sentenced in federal court in Tampa today to serve 11 years in prison for his role in organizing a $28.3 million Medicare fraud scheme involving physical and occupational therapy services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Luis Duluc, 54, of Tampa, pleaded guilty on Feb. 3, 2014, to conspiracy to commit health care fraud as well as making a false statement relating to health care matters. In addition to the prison term, U.S. District Judge Susan C. Bucklew of the Middle District of Florida ordered Duluc to pay $14,424,856 in restitution.
According to Duluc’s admissions in connection with his guilty plea, he and his co-conspirators used various physical therapy clinics and other businesses throughout Florida to submit approximately $28,347,065 in fraudulent reimbursement claims to Medicare between 2005 and 2009. Medicare paid approximately $14,424,865 on those claims.
Duluc was chairman and president of a Delaware holding company known as Ulysses Acquisitions Inc., which was used to purchase comprehensive outpatient rehabilitation facilities and outpatient physical therapy providers, including West Coast Rehab Inc. in Fort Myers, Florida; Rehab Dynamics Inc. in Venice, Florida; Polk Rehabilitation Inc. in Lake Wales, Florida; and Renew Therapy Center of Port St. Lucie LLC in Port St. Lucie, Florida. This gave Duluc and his co-conspirators control of those clinics’ Medicare provider numbers, which allowed them to bill Medicare for services.
Duluc admitted that he and his co-conspirators paid kickbacks to obtain, and stole, the personal identifying information of Medicare beneficiaries, and that he and his co-conspirators also obtained unique identifying information of physicians. They then used this information to create and submit false claims to Medicare through the clinics owned by Ulysses Acquisitions. These claims sought reimbursement for therapy services that were not legitimately prescribed and not actually provided. Duluc admitted that he and his co-conspirators created and used false and forged patient records in an effort to conceal the fact that services had not actually been provided.
Duluc also admitted that he developed and marketed the “80/20 deal.” In these deals, Duluc and his co-conspirators submitted false reimbursement claims to Medicare on behalf of Miami-based therapy clinics, such as Hallandale Rehabilitation Inc., Tropical Physical Therapy Corporation, American Wellness Centers Inc. and West Regional Center Inc. Duluc and co-conspirators retained approximately 20 percent of the money Medicare paid on these claims and paid the other 80 percent to the co-conspirator clinic owners.
When Duluc and his co-conspirators were done using the clinics they acquired through Ulysses Acquisitions, they engaged in sham sales to nominee or straw owners, all of whom were recent immigrants to the United States with no background or experience in the health care industry. Duluc admitted that he did this in an effort to disassociate from the fraudulent operations of the rehabilitation facilities.
This case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Senior Trial Attorney Christopher J. Hunter and Trial Attorney Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Simon A. Gaugush of the Middle District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Plato Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Plato, Mo., man who initially confessed during a pre-employment polygraph examination when he applied for employment at the Missouri State Highway Patrol pleaded guilty in federal court today to using a minor victim to produce child pornography.
Cedric Lovejoy, 28, of Plato, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in an Oct. 1, 2013, federal indictment.
According to today’s plea agreement, Lovejoy participated in a pre-employment polygraph interview and examination conducted by the Missouri State Highway Patrol on Nov. 9, 2012. During the interview, Lovejoy confessed that he had taken video footage of himself receiving oral sex from the then-14-year-old victim. State troopers executed a search warrant at Lovejoy’s residence and seized his computers, which contained the child pornography video Lovejoy had taken with his cell phone.
Under federal statutes, Lovejoy is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Perry County Man Sentenced for Methamphetamine ViolationRead the Press Release
Follow @SDILNewsOn December 2, 2014, a Perry County, Illinois, man was sentenced in U.S. District Court for a methamphetamine violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Thomas D. Tindall, 21, of Willisville, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 108 months in federal prison, to be followed by 3 years’ supervised release, and fined $250.00. Evidence at the plea and sentencing hearings established that Tindall was involved with co-defendant Seth Conway and others in the manufacture of methamphetamine. During a February 20, 2014, search of Tindall’s vehicle and residence, agents located methamphetamine, methamphetamine-making materials, and drug paraphernalia. At sentencing, the district court found that Tindall was responsible for the possession of 176 grams of pseudoephedrine. Tindall’s sentence was enhanced because he involved multiple juveniles in the methamphetamine offense. The offense occurred between 2012 and February 2014, in Jackson, Randolph, and Perry Counties. Co-defendant Conway has pled guilty and is awaiting sentencing.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Coulterville Police Department, Randolph County Drug Task Force, Steeleville Police Department, Percy Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration. The Randolph County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Omaha Man Sentenced to Total of 10 years on Drug and Gun ChargesRead the Press Release
United States Attorney Deborah R. Gilg announced that on December 2, 2014, Senior United States District Judge Richard G. Kopf sentenced Pablo Rodriguez, 39, of Omaha, to five years (60 months) in prison for possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine and five years (60 months) for possession of a firearm in furtherance of a drug-trafficking crime. The sentence for the gun charge must be served consecutive to (after) the sentence for the drug charge. Following the prison terms, Rodriguez will serve five years on supervised release. Rodriguez was also ordered to forfeit $4,782 in cash to the United States of America.
On the evening of May 2, 2014, officers of the Lincoln/Lancaster County Drug Task Force were conducting surveillance on a Lincoln residence. They saw Rodriguez arrive and carry items to and from the residence. Officers followed Rodriguez away from the residence. He was stopped for a traffic violation. He told officers he had 1/8 ounce of methamphetamine in his wallet and provided a baggie containing methamphetamine to the officers. He told officers there was an AR-15 assault rifle in his vehicle but said it did not belong to him. Officers searched the vehicle and found a loaded AR-15, additional methamphetamine, and $4,782 in cash. Rodriguez said he had just dropped off eight ounces of methamphetamine at the residence where he was first seen by the officers. A search warrant was executed at that residence on the early morning of May 3, 2014, and officers found additional methamphetamine. A total of approximately 250 grams of methamphetamine was found during the searches of Rodriguez’s person, vehicle, and the Lincoln residence.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging and Fraud at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland against Garry Wan of Concord, California. To date, 50 individuals have agreed to plead or have pleaded guilty, as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, beginning as early as May 2008 until January 2011, Wan conspired with others not to bid against one another, and instead designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda County. Wan was also charged with conspiring to use the mail to carry out a scheme to fraudulently acquire title to selected Alameda County properties sold at public auctions, to make and receive payoffs, and to divert money to co-conspirators that would have otherwise gone to mortgage holders and other beneficiaries by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held.
“While there has been a lengthy series of guilty pleas by the participants in this activity, the division’s work is not yet over,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “We will continue to work with our law enforcement partners to investigate and prosecute collusion at real estate foreclosure auctions, which allow the conspirators to profit from illegal payoffs at the expense of financial institutions and distressed homeowners.”
The department said that the primary purpose of the conspiracies was to suppress and eliminate competition and to conceal payoffs in order to obtain selected real estate offered at Alameda County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“These charges demonstrate our continued commitment to investigate and prosecute individuals and organizations responsible for the corruption of the public foreclosure auction process,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The FBI is committed to work these important cases and remains unwavering in our dedication to bring the members of these illegal conspiracies to justice.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, California. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300, or call the FBI tip line at 415-553-7400.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Monmouth County, New Jersey Man Pleads Guilty to Possessing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A previously convicted sex offender admitted today that he uploaded images of child sexual abuse to an online file-sharing network, U.S. Attorney Paul J. Fishman announced.
Layne Bracht, 32, of Highlands, New Jersey, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
Bract admitted that on Oct. 28, 2013, he knowingly placed images and videos depicting child sexual abuse into shared folders that others could access via a peer-to-peer network. Special agents of the FBI executed a search warrant at his residence in Highlands on Jan. 15, 2014 and seized digital evidence that contained numerous videos and images depicting child sexual abuse, including material involving prepubescent minors and sadistic or masochistic conduct. The digital evidence seized included three files previously downloaded from Bracht by law enforcement agents working in an undercover capacity on the peer-to-peer network.
In 2006, Bracht was arrested and charged with possession of child pornography, a charge to which he subsequently pleaded guilty. On April 2, 2008, U.S. District Judge Joseph E. Irenas sentenced Bracht to 30 months in prison to be followed by five years of supervised release. As a previously convicted sex offender, Bracht now faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 13, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, New Jersey, and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Brian P. Reilly Esq, Assistant Federal Public Defender, Trenton
Bracht, Layne Information
Mongolian Dinosaur Fossil ForfeitedRead the Press Release
A decree of forfeiture was issued today by the Honorable Brian M. Cogan in federal court in the Eastern District of New York forfeiting the fossilized skull and vertebrae of an Alioramus dinosaur (the “Dinosaur Skull”). The Alioramus was a dinosaur that lived in the late Cretaceous period, approximately 65 to 70 million years ago. It is related to the Tyrannosaurus Rex and Tarbosaurus. The Dinosaur Skull was falsely described as a French replica in January 2014, when it was shipped to the United States by Geofossiles, Inc., a French fossil dealer. Upon its arrival in the United States from France, the Dinosaur Skull was seized by U.S. Customs and Border Protection (CBP) with the assistance of Homeland Security Investigations (HSI). On September 4, 2014, the United States filed a civil action to forfeit the Dinosaur Skull, alleging that it was stolen Mongolian property that was smuggled into the United States using false declarations. As Geofossiles did not contest the allegations in the United States’ complaint, the court ordered the forfeiture of the Dinosaur Skull.
The forfeiture was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, HSI, New York.
“This case highlights the effectiveness of civil forfeiture tools in removing stolen cultural property from the stream of commerce so that it can be returned to its rightful owners,” stated United States Attorney Lynch. “Lies and forgeries are no match for the vigilance of our partners at CBP and HSI. Together, we are determined to expose and halt the flow of stolen cultural property entering our ports.” Ms. Lynch thanked the Mongolian government and the Central Museum of Mongolian Dinosaurs for their assistance.
“This case articulates the level of importance placed in identifying the provenance of cultural artifacts and acknowledging patrimony laws. Smugglers will falsify documents and lie about the origin and value of a cultural artifact just to get it across our borders to sell to the highest bidder,” said HSI Special Agent-in-Charge Hayes. “The forfeiture of this pre-historic fossil highlights HSI’s commitment along with our partners at CBP to assist foreign governments in detecting, deterring and disrupting the flow of priceless stolen foreign art, relics and fossils into the United States.”
When Geofossiles shipped the Dinosaur Skull to the United States, it falsely described the shipment as a low-value replica made in France. After the Dinosaur Skull was seized, Geofossiles petitioned CBP for its release. In the petition, Geofossiles conceded that the Dinosaur Skull was a genuine fossil, comprised of 70% original material and 30% cast to complete the skull. Geofossiles further admitted that the Dinosaur Skull’s country of origin was Mongolia, not France, and attached a contract to sell the piece for $250,000.
Under Mongolian law, significant fossil finds like the Dinosaur Skull are national property and, even if privately owned, cannot be sold to non-Mongolians or permanently exported. Nonetheless, Geofossiles attached to the petition several documents that purported to be Mongolian records authorizing the sale and export of the Dinosaur Skull from Mongolia to a Korean company in 2006. The records supplied by Geofossiles described the shipment as containing an incongruous combination of fossils and traditional Mongolian structures called “gers.” When Mongolian authorities located the original records for this shipment, they confirmed that only the gers were declared. Thus, the records supplied by Geofossiles were falsified to include fossils.
Pursuant to applicable law and Department of Justice guidelines, Mongolia will now have an opportunity to submit a petition to the United States for the return of the Dinosaur Skull.
The government’s case is being handled by Assistant United States Attorney Karin Orenstein.
E.D.N.Y. Docket No. 14-CV-5198(BMC)
Mitchellville Man Pleads Guilty to Drug Distribution and Money Laundering ConspiraciesRead the Press Release
Must Forfeit $108 million in Cash, Jewelry and Luxury Automobiles As Part of His Plea
Greenbelt, Maryland – Ishmael Ford-Bey, age 40, of Mitchellville, Maryland, pleaded guilty today to nine counts of a superseding indictment charging him with conspiracy, possession with intent to distribute cocaine, using a phone to facilitate drug distribution, and money laundering. As part of his guilty plea, Ford-Bey consented to the entry of a $108 million forfeiture order, including luxury vehicles, jewelry and cash.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; Acting Chief of Police Robert D. MacLean of the U.S. Park Police; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to court documents, from at least January 2011 through his arrest on August 16, 2013, Ishmael Ford-Bey conspired with others to distribute cocaine in Maryland and elsewhere. On August 15, 2012, the Texas Department of Public Safety stopped a refrigerated box truck that was transporting thirteen boxes, each containing approximately ten kilograms of cocaine. The boxes were to be delivered to Ford-Bey in Temple Hills, Maryland. A controlled delivery of the boxes was arranged. On August 17, 2012, law enforcement established surveillance at the meeting location in Marlow Heights, Maryland. A few minutes after the truck arrived at the meeting location, a vehicle registered to Ford-Bey at a Mitchellville address arrived at the location. Law enforcement observed the truck driver and Ford-Bey unloading the drugs into Ford-Bey’s vehicle. As Ford-Bey left the area, he was pursued by law enforcement officers. Ford-Bey abandoned the vehicle in the median on I-495 and ran away. Agents recovered Ford-Bey’s vehicle, the cocaine, cell phones, and other evidence from the vehicle.
Based upon review of the documents in the vehicle and further investigation, agents identified another residence for Ford-Bey located in the 2400 block of Pennsylvania Avenue, NW, in Washington, DC. On the evening of August 17, 2012, officers were at the Pennsylvania Avenue address and saw Ford-Bey in the lobby. Ford-Bey fled dropping a bag that contained prepaid cellphones and other items. Agents were unable to locate Ford-Bey. A search warrant of the residence resulted in the seizure of watches and jewelry, and a loaded Glock handgun. Agents also seized two other vehicles - a 2003 Audi and a 2011 Maserati, both registered to Ford-Bey.
As a result of wire taps on conspirators’ cell phones law enforcement overheard numerous conversations with Ford-Bey discussing and arranging drug transactions. Agents observed Ford-Bey providing conspirators with drugs and leaving with the drug payment.
On October 1, 2013, a search warrant was executed at the apartment of a co-conspirator that Ford-Bey had been identified as visiting. Agents located a safe which contained $823,640 in cash, several watches, and jewelry. In addition, agents recovered scales, three heat sealers, a coffee grinder, a currency counter, and other drug paraphernalia, as well as approximately 350 grams of cocaine. Latent fingerprints recovered from the heat sealers were identified as Ford Bey’s and another conspirator.Ford-Bey was arrested on August 16, 2013, during a traffic stop of a vehicle being driven by Ford-Bey’s girlfriend. A Maryland State Trooper ran the tag and determined the vehicle was registered in the name of the driver and Ford-Bey. When the trooper asked Ford-Bey for identification, he identified himself as Jason Green and presented a New Jersey driver’s license in that name. The trooper pulled up the warrant photograph for Ford-Bey, positively identified him as Ford-Bey, and placed him under arrest.
In an effort to disguise and hide their drug proceeds, Ford-Bey and others created numerous business entities, which had little, if any legitimate business. They set up bank accounts in the names of each business and deposit their drug proceeds into those business accounts. Between 2008 and 2011, Ford-Bey deposited drug proceeds into business bank accounts he owned or controlled. Ford-Bey used drug proceeds to purchase a 2007 Lexus for his girlfriend, a 2011 Landrover vehicle for $65,749, to purchase jewelry and to pay rent for Ford Bey’s apartment and for travel expenses, among other things.
Ford-Bey faces a minimum mandatory sentence of 20 years in prison and a maximum of life in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for March 5, 2015 at 10 a.m.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Prince George’s County Police Department, U.S. Park Police and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Minnesota Woman Charged with Stealing Passport to Travel to SyriaRead the Press Release
United States Attorney Andrew M. Luger today announced a complaint charging YUSRA ISMAIL, 20, with stealing and misusing a passport. According to the complaint and documents filed in court, on August 18, 2014, ISMAIL visited a friend and asked to see her passport. Before leaving her home on that day, ISMAIL surreptitiously took the passport and subsequently left her friend’s home.
According to the complaint and documents filed in court, three days later, ISMAIL asked a different friend to drive her to Minneapolis/Saint Paul airport, from which she departed on a flight bound for Amsterdam, the Netherlands. She later traveled from Amsterdam to Oslo, Norway.
According to the complaint and documents filed in court, ISMAIL contacted members of her family on August 24, 2014, and told one or more of them that she was in “Sham,” which is a term commonly used to describe the area within Syria and Iraq where the Islamic State of Iraq and Syria (ISIS) is attempting to establish a caliphate.
There is no record that ISMAIL, who is not a United States citizen, has lawfully returned to the United States.
This case is the result of an investigation conducted by the Joint Terrorism Task Force, under the supervision of the Federal Bureau of Investigation.
Defendant Information: YUSRA ISMAIL, 20
Saint Paul, Minn.
Charges: • Misuse of Passport, 1 countYusra Ismail Criminal Complaint
The charges contained in the indictment are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
Manoa Fire Company to Pay $36,912.46 to Resolve False Claims Act Allegations Relating to CredentialingRead the Press Release
PHILADELPHIA - Local ambulance service provider Manoa Fire Company (MFC), of Haverford Township, PA, will pay $36,912.46 to resolve allegations that it violated the False Claims Act as a result of ambulance services that it provided to Medicare and Medicaid patients, announced United States Attorney Zane David Memeger. The civil settlement resolves allegations that, between July 23, 2007 and September 30, 2013, on some of the Basic Life Support runs MFC provided, the ambulance attendant had not timely completed an advanced first aid class or that the attendant’s advanced first aid certification had lapsed.
During the time in question, Pennsylvania and federal rules required that an ambulance providing Basic Life Support services have at least two individuals present: a licensed emergency medical technician (“EMT”) and an “ambulance attendant” who had completed an emergency vehicles operation course and who had current certifications in both cardiopulmonary resuscitation (CPR) and advanced first aid class. The latter required the completion of a class of 40 or more hours approved by Pennsylvania’s Department of Health.
“Every ambulance service provider is responsible for ensuring that its employees have satisfied all of their legal requirements, including retraining requirements, before they are allowed to serve on ambulances,” said Memeger. “We are pleased that the company has accepted responsibility for those errors and has put in place measures to ensure that in the future, all of its ambulance service providers will have the training and experience necessary to render emergency first aid.”
This case was handled by Assistant United States Attorney Paul W. Kaufman and the Department of Health and Human Services Office of the Inspector General. The claims resolved by the settlement are allegations only; there has been no determination of liability.
Click here to view the settlement agreement.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Long Island Man Sentenced in Manhattan Federal Court to Five Years in Prison for Multimillion-Dollar Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that NIZAR OTHMAN, the former principal of a Manhattan-based financial firm, NAOK Financial, Inc. (“NAOK”), was sentenced today to five years in prison for a fraudulent investment scheme in which OTHMAN lied to victims and tricked them into paying him over $2 million for purported investments with supposed guaranteed rates of return. In reality, OTHMAN did not invest the funds as promised, and instead, used the funds largely for his own benefit. OTHMAN pled guilty in September 2014 before U.S. District Judge Lorna G. Schofield, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Nizar Othman was a fraudster who through his investment firm swindled numerous individuals out of millions of dollars. He preyed on people’s life savings and took the benefits of a widowed spouse while he exploited personal relationships for personal gain. We hope today’s sentence gives some measure of comfort to the victims.”
Assistant Director in Charge George Venizelos said: “This was another phony investment scheme, pitched to some of the most vulnerable people in our society. Today, Othman rightfully finds himself facing a stiff sentence for his investor shakedown.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at court proceedings:
From 2008 through March 2013, OTHMAN owned and operated NAOK, a now-defunct financial consulting and investment firm with an office in Manhattan. In connection with his operation of NAOK, OTHMAN engaged in a fraudulent scheme whereby he tricked multiple victims into investing millions of dollars with his company. For example, in April 2011, OTHMAN convinced Victim-1to invest $1.2 million with NOAK, using the proceeds of her recently-deceased husband’s life insurance and pension benefits. OTHMAN falsely told Victim-1 that he would invest the money in real estate ventures and promised to triple her investment in three years. OTHMAN even showed Victim-1 photographs of properties that he claimed he was investing in. Instead of investing the $1.2 million in real estate, however, OTHMAN used Victim-1’s money to pay for NAOK’s operating expenses, to repay other individuals who had invested with NAOK, and to pay for OTHMAN’s personal expenses, including dining, clothing, and travel expenses. Victim-1 lost her entire $1.2 million investment.
In addition to Victim-1, OTHMAN defrauded at least five other victims by fraudulently inducing them to invest hundreds of thousands of dollars with NAOK. In each instance, OTHMAN exploited personal relationships with the victims to gain their trust, and then betrayed that trust by lying about how the victims’ money would be invested and the rates of return that the victims would receive. For example, in March 2011, OTHMAN induced Victim-2, a retired barber, to invest his life savings of $480,000 with NAOK. OTHMAN falsely claimed that Victim-2’s money would be invested with a hedge fund broker with whom OTHMAN claimed to have a business relationship. OTHMAN visited Victim-2 at his house multiple times, invited Victim-2 to NAOK’s office in Manhattan, and guaranteed Victim-2 that he would receive at least a 10 percent return on his investment in three years. OTHMAN further promised to pay the guaranteed 10 percent return himself if the investment failed. As with Victim-1’s investment, instead of investing Victim-2’s money as promised, OTHMAN used the money for his own personal benefit. Victim-2 lost his entire $480,000 investment.
Further, in order to conceal and perpetuate the scheme, OTHMAN made various misrepresentations to the victims regarding the performance of their investments. For example, in October 2012, when Victim-1 inquired about the status of her $1.2 million real estate investment, OTHMAN told her that it was presently valued at $1.35 million. In truth and in fact, and as OTHMAN was well aware, OTHMAN never invested Victim-1’s $1.2 million in any real estate ventures. Similarly, in the first year following Victim-2’s $480,000 investment, OTHMAN falsely represented that the investment had earned a 13 percent return; in the second year, OTHMAN falsely reported a 14 percent return.
In total, the defendant’s fraudulent investment scheme resulted in losses to victims of approximately $2,138,000.
In addition to the prison sentence, OTHMAN, 31, of Albertson, New York, was sentenced to three years of supervised release. OTHMAN was also ordered to pay $2,138,000 million in restitution to his victims, and to forfeit $2,138,000 in criminal proceeds.
Mr. Bharara praised the outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Serrin Turner, Daniel Noble, and Alexander Wilson are in charge of the prosecution.
Leader of Colombian Drug Trafficking Organization Pleads GuiltyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Benjamin Renteria-Arboleda (54, Colombia, South America) has pleaded guilty to conspiring with others to possess with intent to distribute 5 kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison. Sentencing is scheduled for January 20, 2015.
According to the plea agreement, since July 2001, at least seven maritime cocaine shipments planned by Renteria-Arboleda and others were interdicted by the United States Coast Guard and the United States Navy, in the Pacific Ocean, resulting in the seizure of approximately nine tons of cocaine. Renteria-Arboleda’s roles in the conspiracy included contracting for the construction, and dispatching, go-fast vessels and self-propelled semi-submersible vessels. Many of the vessels dispatched by Renteria-Arboleda successfully delivered cocaine and were not interdicted by the United States.
Renteria-Arboleda was arrested in Colombia and subsequently extradited to the United States for prosecution.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, comprised of agents and analysts from the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF Program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Kirkland Resident Arrested for Interstate Threats to KillRead the Press Release
A Kirkland, Washington resident was arrested on a criminal complaint charging three counts of making interstate threats, announced Acting U.S. Attorney Annette L. Hayes. JALEEL TARIQ ABDUL-JABBAAR, 46, was arrested this morning at his home without incident, and will make his initial appearance in U.S. District Court in Seattle at 2:00 p.m. today. According to the complaint, ABDUL-JABBAAR made repeated threats to kill an officer formerly with the Ferguson, Missouri Police Department, members of the officer’s family and other law enforcement officers.
“We are fortunate to live in a country where the right to speak out about current events and disagree with our government is protected by the highest law of the land. Our freedom of speech does not, however, extend to making threats to kill or injure law enforcement officers,” said Acting United States Attorney Annette L. Hayes. “Although we each have the right to express our views about the decision reached by the state grand jury in Ferguson, Missouri, we cannot tolerate violence or threats of violence that are intended to intimidate, and ultimately silence debate. Such threats are crimes, and the individuals who make them must be held to account.”
According to the criminal complaint, ABDUL-JABBAAR started posting threats on his Facebook page shortly after the August 9, 2014 shooting of Michael Brown, through late November. ABDUL-JABBAAR posted various statements about killing police officers and traveling to Ferguson, Missouri. Among others, ABDUL-JABBAAR stated: “We need to kill (the officer) and anything that has a badge on.” ABDUL-JABBAAR also used Facebook communications to attempt to acquire a firearm.
Making interstate threats is punishable by up to five years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and is being prosecuted by Assistant United States Attorney Todd Greenberg.KC Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to possessing child pornography and attempting to distribute child pornography over the Internet.
Craig E. Williams, Jr., 27, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to the charges contained in an April 9, 2014, federal indictment.
According to today’s plea agreement, Kansas City, Mo., police officers arrested Williams at his residence on May 16, 2013, on a felony warrant for an unrelated state case. They seized various electronic media from his residence. Forensic investigators discovered 413 videos of child pornography and numerous images of child pornography on a computer and three hard drives. The victims were primarily prepubescent children, including some toddlers. Some of the images depicted bondage and bestiality.
Williams told officers that he used a peer-to-peer file-sharing program to download child pornography over the Internet.
Williams was also being investigated by the Nixa, Mo., Police Department and the Western Missouri Cyber Crime Task Force, which were conducting separate undercover child pornography investigations and had identified Williams’ computer as sharing child pornography over the Internet.
Under federal statutes, Williams is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $500,000. Williams must also pay restitution of $5,000 apiece to two of the victims, or $3,000 apiece if he pays within 30 days of the sentencing date. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Kansas City, Mo., Police Department, the FBI, the Nixa, Mo., Police Department and the Western Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jury Finds Former Minnesota Real Estate Developer Guilty of Tax Evasion, Mail and Wire FraudRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of BARTOLOMEA JOSEPH MONTANARI, 57, formerly of Bayport, Minn., for tax evasion and fraud. On May 21, 2014, MONTANARI was indicted on one count of Evasion of Payment of Taxes, one count of Mail Fraud, and one count of Wire Fraud. On November 25, 2014, following a 6-day trial, a federal jury found MONTANARI guilty on all counts.
The evidence presented at trial proved that from 2009 until January 2012, MONTANARI willfully evaded the payment of employment and excise taxes owed by him and the three businesses he controlled: St. Croix Development, Emlyn Coal Processing, and Montie’s Resources. One of the ways MONTANARI avoided paying taxes and TFRPs was by transferring over $1.1 million into a bank account in the name of Bella Luca Properties LLC (“Bella Luca”), a shell company with no legitimate business purpose but used by MONTANARI to pay personal expenses. MONTANARI evaded payment of more than $700,000 in taxes and TFRPs to the federal government.
In December 2009, when the IRS attempted to collect taxes and TFRPs, MONTANARI filed a fraudulent financial statement making numerous misrepresentations to the IRS to avoid paying the taxes he owed. For example, he failed to disclose multiple personal vehicles that he owned and he denied the existence of the Bella Luca bank account, which he was using to receive monthly compensation of $50,000 from two of his companies. MONTANARI also lied about living in Bayport, Minn., when, in truth, he had already moved into a $1.4 million house he was purchasing in Knoxville, Tennessee.
In addition, as part of a fraud scheme, MONTANARI lied about the sale price of a Caterpillar dozer that he needed to purchase for one of his companies. Montanari submitted a doctored invoice to the dozer financing company, which issued a check for the dozer for $100,000 more than the true purchase price. MONTANARI kept the extra $100,000 and used it as a down payment for the house in Tennessee.
U.S. District Judge Ann D. Montgomery will sentence MONTANARI following the completion of a presentence investigation. A date for sentencing has not been set.
This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division, the U.S. Postal Inspection Service, and the Minnesota Financial Crimes Task Force.
Assistant U.S. Attorneys William Otteson and Melinda Williams are prosecuting this case.
Defendant Information: BARTOLOMEA JOSEPH MONTANARI, 57
Knoxville, Tenn.
Convicted: • Evasion of Payment of Taxes, 1 count
• Mail Fraud, 1 count
• Wire Fraud, 1 count- Houston Man Charged in Large-Scale Interstate Transportation of Stolen Goods Operation
Hill District Felon Sentenced to 15 Years in Prison for Possessing Weapons, CocaineRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 15 years imprisonment on his conviction of violating federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Charles Howard, III, 34.
According to information presented to the court, that on or about March 28, 2012, and again on May 20, 2013, Howard, who has prior felony convictions, possessed firearms. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm. Also on or about March 28, 2012, Howard possessed and intended to distribute crack cocaine.
This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Assistant United States Attorney Jonathan B. Ortiz prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsburgh Police Department and the Wilkinsburg Police Department for the investigation leading to the successful prosecution of Charles Howard, III.
Grenada National Pleads Guilty to Importation of Cocaine on Cruise ShipRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Isherman Tafari (32, New York) has pleaded guilty to importing 5 kilograms or more of cocaine into the United States. He faces a minimum mandatory penalty of 10 years, up to life, in federal prison.
According to the plea agreement, on June 20, 2014, Tafari departed Port Canaveral on an eight-day cruise to the southern Caribbean. When the ship returned to Port Canaveral on June 28, 2014, federal agents and local law enforcement officers searched Tafari’s luggage and discovered packages containing a white, powdery substance that tested positive for cocaine. The gross weight of the cocaine was determined to be approximately 5,450 grams.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Embry J. Kidd.
Four Waynesboro Residents Sentenced for Their Roles in Stolen Identity and Tax Refund SchemeRead the Press Release
Augusta, GA: Kamilya Nicholson, 31, Regina Bunyon, 37, Shequita Bush, 29, and Tamaka Smith, 35, all of Waynesboro, Georgia, were each sentenced to federal prison last month by United States District Court Judge J. Randal Hall for their roles in a stolen identity and tax refund scheme.
United States Attorney Edward J. Tarver said, “These defendants abused the trust of the American people to line their own pockets. This Office will continue to work hard every day to ensure those people who cheat the system are held accountable.”
“The sentences rendered today is a message to others that there are consequences to stealing and using other individuals’ personal identifying information,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “Individuals cannot fraudulently enrich their bank accounts at the expense of the United States Treasury and other taxpayers.”
The evidence presented at the guilty plea and sentencing hearings established that Nicholson, Bunyon, Bush, and Smith worked together to steal the names, birthdates, and social security numbers of unsuspecting victims, which they then used to file bogus income tax returns with the Internal Revenue Service seeking tax refunds. In total, the defendants attempted to defraud the IRS out of approximately $350,000.00 of taxpayers’ money.
For their roles in the scheme, Nicholson was sentenced to 20 months in prison, Bunyon was sentenced to 30 months in prison, Bush was sentenced to 18 months in prison, and Smith was sentenced to 24 months in prison. Mr. Tarver noted that parole has been abolished in the federal system.
IRS-CI Special Agent Roger Garland and FBI Special Agent Paul Kubala investigated the case. Assistant United States Attorney C. Troy Clark prosecuted this case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former NBA Standout Chris Herren to Raise the Game on Drug Awareness in the Ohio ValleyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Former National Basketball Association star Chris Herren will return to the Ohio Valley later this month to share the powerful story of his struggle with addiction, a group of community leaders announced today.
On Friday, December 12, 2014, Herren will visit the Capitol Theatre in Wheeling, West Virginia where he will address students from multiple schools including Wheeling Central Catholic, Bishop Donahue, and Linsly High Schools. Later that afternoon, he will travel to Weirton, West Virginia to address students at Weirton Madonna High School.
Chris Herren seemed to have it all. After an explosive debut as an All-American basketball star at Durfee High School in Massachusetts, Herren played at Boston College and Fresno State. Capturing the attention of the NBA, Herren was drafted by the Denver Nuggets. He would also play several seasons for the Boston Celtics. Behind the scenes, alcohol, cocaine, and heroin abuse nearly cost Herren his life.
Leveraging his own experience to educate and inspire young people, Herren tours the country speaking about substance abuse and addiction through his Project Purple program. Project Purple is an initiative of the Herren Project, a non-profit organization founded by Herren to break the stigma of addiction, bring awareness to the dangers of substance abuse, and shed light on effective treatment.
In anticipation of Herren’s visit, the girls’ basketball teams at Wheeling Central, Bishop Donahue, and Weirton Madonna High Schools will sponsor two “Purple Games.” Wheeling Central hosts Magnolia on December 9 and Weirton Madonna hosts Bishop Donahue on December 11.
Herren’s presentations on December 12, 2014 are not open to the public. Anyone interested in scheduling future events or locating additional resources to combat drug addiction in our region should contact the United States Attorney’s Office at (304) 234-0100.
Former Longshoreman Sentenced to 12 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former longshoreman was sentenced to 12 months in prison today 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.
Salvatore LaGrasso, 58, of Edison, New Jersey, a former supervisor on the New Jersey piers – 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: LaGrasso admitted that he and others conspired 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.
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 (Genovese family). 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.
In addition to the prison term, Judge Cecchi sentenced LaGrasso to two years of supervised release.
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 leading to today’s guilty pleas. 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.
14-418Defense counsel: Peter Till Esq., Springfield, N.J.
Former Longshoreman Sentenced to 12 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former longshoreman was sentenced to 12 months in prison today 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.
Salvatore LaGrasso, 58, of Edison, New Jersey, a former supervisor on the New Jersey piers – 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: LaGrasso admitted that he and others conspired 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.
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 (Genovese family). 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.
In addition to the prison term, Judge Cecchi sentenced LaGrasso to two years of supervised release.
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 leading to today’s guilty pleas. 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.
14-418Defense counsel: Peter Till Esq., Springfield, N.J.
Former Longshoreman Sentenced to 12 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former longshoreman was sentenced to 12 months in prison today 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.
Salvatore LaGrasso, 58, of Edison, New Jersey, a former supervisor on the New Jersey piers – 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:
LaGrasso admitted that he and others conspired 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.
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 (Genovese family). 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.
Former Corporate Executives Plead Guilty to Securities Fraud and Tax Offenses for Wide-Ranging Commercial Bribery SchemeRead the Press Release
Two Coral Gables residents pled guilty today before U.S. District Judge Jose J. Martinez to their participation in a scheme to obtain more than $9.5 million in kickbacks and other benefits, and to conceal this illicit income from the IRS, while employed as senior executives at Systemax, Inc. (“Systemax”) and its subsidiary, TigerDirect, Inc. (“TigerDirect”).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
Carl Fiorentino, 57, pled guilty to one count of conspiracy to commit mail and wire fraud, and one count of tax evasion. According to his plea agreement, Carl Fiorentino has also agreed to forfeit, among other things, $1,961,049.90 which represents proceeds traceable to his criminal conduct.
Gilbert Fiorentino, 54, pled guilty to one count of conspiracy to commit securities fraud and to impair and impede the lawful functions of the Internal Revenue Service. According to his plea agreement, Gilbert Fiorentino has also agreed to forfeit, among other things, 99 gold coins that he received as a part of the kickback scheme.
According to admissions in the defendants’ plea agreements and made in court at the time they entered their pleas, Gilbert Fiorentino served until 2011 as a director of Systemax, was the Chief Executive Officer of the company’s Technology Product Group, and worked at Systemax’s Miami offices; Carl Fiorentino served until 2011 as the president of TigerDirect and worked at Systemax’s Miami offices as a senior executive responsible for sourcing and purchasing computer and electronics peripherals from third party vendors, some of them located in Asia.
Between 2003 and 2011, the defendants received kickbacks from, among others, among others, a Taiwan-based supplier, RICI International and its affiliates. Carl Fiorentino received in excess of $9.5 million in kickbacks; Gilbert Fiorentino received more than $600,000 in kickbacks including, among other things, approximately $200,000 in gold coins. In addition, as a part of the scheme, both misappropriated Systemax merchandise. Carl Fiorentino used the proceeds of his illegal activity to obtain, among other things, a Coral Gables luxury waterfront property, artwork, home furnishings and high-end electronics. Both defendants admitted that, as a result of their kickback scheme, they caused Systemax to pay more for goods and services than it would have in the absence of the schemes. Additionally, both men failed to disclose to the IRS, and pay taxes upon, the income they received as a part of their criminal conduct.
Both defendants concealed from Systemax and its auditors the payments they received pursuant to the kickback scheme. Accordingly, Systemax, unaware that the defendants had received payments and engaged in fraudulent activities, filed inaccurate statements with the U.S. Securities and Exchange Commission as a result.
When Carl Fiorentino learned that federal agents were investigating his conduct, he illegally instructed certain witnesses to conceal the truth from the agents.
This case was originally investigated by the U.S. Attorney’s Office for the Eastern District of New York with the assistance of the FBI New York Field Office and the IRS-CI Miami Field Office. Carl Fiorentino was previously charged in the Eastern District of New York on June 18, 2013, with conspiracy to commit mail and wire fraud, multiple counts of mail and wire fraud, and money laundering. The case involving Carl Fiorentino was transferred to the Southern District of Florida by court order on January 6, 2014. Both Carl and Gilbert Fiorentino are scheduled to be sentenced on February 10, 2015, at 1:30 p.m.
Mr. Ferrer and Ms. Lynch commended the investigative efforts of the FBI and IRS-CI. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy of the Southern District of Florida and Whitman G.S. Knapp of the Eastern District of New York.
A copy of this press release may be found on the website of the United States Attorney’s for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Controller for Washington, D.C. Law Firm Sentenced to 20 Months in Prison for Theft of over $960,000-Defendant Shifted Money from Firm’s Bank Accounts-Read the Press Release
WASHINGTON - Marc England, 45, was sentenced today to 20 months in prison on a federal charge stemming from his theft of over $960,000 from a Washington, D.C. law firm, announced U.S. Attorney Ronald C. Machen Jr. and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
England, of Covington, La., pled guilty in September 2014 in the U.S. District Court for the District of Columbia to one count of wire fraud. He was sentenced by the Honorable Tanya S. Chutkan. Upon completion of his prison term, England will be placed on three years of supervised release. He also was ordered to pay $652,641 in restitution; the firm had earlier received over $308,000 in restitution.
According to the government’s evidence, England worked at a small law firm in Washington, D.C., that is identified in court documents as “Company A.” He was the company’s controller. Beginning in August 2008, England began sending wire payments from the law firm’s bank account directly to various credit card accounts that he himself held. For some of the unauthorized transactions, England used the firm’s electronic accounts system to create fraudulent invoices appearing on their face to justify his unauthorized debits. Over the course of a four-year period, England caused the firm to execute 126 separate interstate wire transfers of monies from the firm’s checking account to various accounts held by England.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge McCabe commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Angela Lawrence; Assistant U.S. Attorneys Catherine K. Connelly and Arvind K. Lal, who handled forfeiture issues, and Assistant U.S. Attorney Richard DiZinno, who investigated and prosecuted the matter.
14-265Former Auto Leasing Company Owner Sentenced to Two Years in Federal Prison on Bank Fraud ConvictionRead the Press Release
DALLAS — The former owner and president of Curry Auto Leasing (CAL) in Dallas, who pleaded guilty in July 2014 to an information charging one count of bank fraud, was sentenced yesterday, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Christopher Mark Hood, 47, of Rockwall, Texas, was sentenced by U.S. District Judge David C. Godbey to 24 months in federal prison and ordered to pay approximately $1,170,620 in restitution. He must surrender to the Bureau of Prisons in January 2015.
CAL, located on Montfort Drive in Dallas, facilitated auto leases for individual and corporate clients by obtaining funding for the vehicles from various financial institutions. CAL served as the intermediary between the customer and the financial institutions, obtaining funding for the leases for the customer and then servicing the leases on behalf of the financial institutions.
According to documents filed in the case, beginning as early as September 2007 and continuing through at least October 2010, Hood knowingly executed a scheme to defraud the financial institutions by making false representations and promises concerning the auto leases and loans.
Hood’s scheme to defraud had two parts: (1) “double pledging” lease agreements with multiple financial institutions; and (2) providing a false guarantee to the financial institutions that CAL would provide a clear title to financed vehicles, knowing that clear titles could not be provided.
After obtaining financing from the originating financial institution to acquire one or more vehicles to be leased by CAL customers, on occasion, CAL through Hood, sought and secured subsequent funding for the same vehicle(s) from a second or new financial institution. At times, the secondary funding occurred at or about the time of the expiration of the original lease and/or for reducing the monthly cost to the customer. In some instances, however, the secondary funding occurred a few months after the original lease was funded by the original bank, without disclosure of the original lease to the secondary funding institution. At the time of the secondary financing, CAL, through Hood, represented to that financial institution that the funds paid through this financing would be paid timely to the original financial intuition so that a clear title could be obtained and provided. Hood knew this statement was false.
The U.S. Secret Service, the Federal Deposit Insurance Corporation and the FBI investigated. Assistant U.S. Attorney J. Nicholas Bunch prosecuted.
Florida Man Pleads Guilty in Manhattan Federal Court to Defrauding Investors in Multiple Securities Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN STALTARE pled guilty today to defrauding investors in connection with two fraudulent investment schemes. STALTARE’s first scheme involved defrauding investors in connection with the transfer of stock in Dematco, Inc. (“Dematco”). STALTARE’s second scheme involved defrauding investors in connection with soliciting investment in various stocks, including Dematco, Preventia, Inc. (“Preventia”), First Choice Healthcare Solutions, Inc. (“First Choice”), and Savtira Corporation (“Savtira”). STALTARE admitted misleading investors in connection with both schemes by making numerous false statements and misrepresentations and by misappropriating investment funds for his own personal use. STALTARE was arrested on August 8, 2013, and pled guilty today to a four-count Indictment before U.S. District Judge George B. Daniels.
STALTARE was previously convicted of securities fraud in United States v. Herbert Cannon et al., 04 Cr. 842 (GBD), in the Southern District of New York. STALTARE was sentenced to 32 months in prison by Judge Daniels in connection with his prior conviction.
Manhattan U.S. Attorney Preet Bharara stated: “Steven Staltare purported to offer investment opportunities, but was instead engaged in a shell game where he failed to pay for securities he purchased from one victim and offered them as collateral for a loan he secured from another victim whom he never repaid. He also took hundreds of thousands of dollars from other investors and never invested it as promised, instead using the money for himself. Now, having admitted his crimes, he stands to pay for them with his liberty.”
According to the allegations contained in the Indictment, the underlying criminal Complaint unsealed on August 7, 2013, and statements made during court proceedings:
First, from at least 2011 through 2012, STALTARE defrauded two investors (“Victim-1” and “Victim-2,” respectively) in connection with the transfer of shares of Dematco stock. In late 2011, STALTARE approached Victim-1 and asked Victim-1 to transfer hundreds of thousands of shares of Dematco stock that Victim-1 owned to a “partner” of STALTARE in exchange for $70,000 in cash. Victim-1 agreed to turn over his shares in Dematco in exchange for $70,000. At approximately the same time, STALTARE and another individual (“Partner-1”) approached Victim-2 and asked Victim-2 to loan them approximately $150,000 so that STALTARE could purchase shares of Dematco stock. STALTARE and Partner-1 promised Victim-2 that he would be paid $200,000 in three weeks and that Victim-2 would receive approximately 1/3 of the profits from the eventual sale of Dematco stock. Victim-2 was also promised that he would receive Dematco stock certificates as collateral for this loan. Based upon these representations, Victim-2 agreed to make this $150,000 loan to STALTARE and Partner-1. After Victim-2 made this loan, STALTARE provided Victim-2 with stock certificates that had been provided to STALTARE by Victim-1. Ultimately, STALTARE did not provide Victim-1 with the $70,000 that he had promised to pay in exchange for Victim-1’s shares of Dematco, nor did STALTARE provide Victim-2 with any repayment for the $150,000 loan or any profits from any sale of Dematco stock. In reality, STALTARE transferred Victim-1’s shares in Dematco to Victim-2 without compensating Victim-1, and misappropriated the funds provided by Victim-2 for STALTARE’s own personal benefit.
Second, from at least 2012 through 2013, STALTARE defrauded two other investors (“Victim-3” and “Victim-4,” respectively) by misappropriating funds intended for investment in the stock of various companies. STALTARE agreed to invest approximately $25,000 for Victim-3 in Preventia stock, promising significant investment returns. STALTARE also agreed to invest approximately $357,000 for Victim-4 in various securities, including stock in Dematco, Preventia, First Choice, and Savtira, again promising significant investment returns. However, once Victim-3 and Victim-4 provided STALTARE with the funds to invest in these stocks, rather than investing these funds in stocks on behalf of Victim-3 and Victim-4 as promised, STALTARE misappropriated these funds for his own personal benefit.
In the course of effectuating these fraudulent schemes, STALTARE defrauded victims in excess of $600,000 from 2011 through 2013.
STALTARE, 49, of Tampa, Florida, pled guilty to two counts of securities fraud and two counts of wire fraud. Each of the securities fraud and wire fraud charges carries a maximum term of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. STALTARE is scheduled to be sentenced on March 12, 2015, at 10:00 a.m. by Judge Daniels.
Mr. Bharara praised the investigative work of the USPIS.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Brian Blais is in charge of the prosecution.