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Friday 17 October 2014
Chicago Investment Advisor Convicted of Defrauding Suburban Bank and Two Clients of More Than $3.2 MillionRead the Press Release
CHICAGO ― A Chicago investment advisor was convicted today of federal bank fraud charges for engaging in a scheme to defraud Oak Brook-based Leaders Bank and two of his clients of more than $3.2 million and ultimately causing the bank to lose more than $2.7 million. The defendant, ROBERT J. LUNN, was found guilty of five counts of bank fraud by a federal jury that began deliberating yesterday following a trial that began Oct. 7.
Lunn, 64, of Chicago, who did business as Lunn Partners, LLC, an investment advisory business, remains free on bond pending sentencing, which was set for Jan. 21, 2015, by U.S. District Judge Charles Norgle. Lunn faces a maximum sentence of 30 years in prison and a $1 million fine on each count, or an alternate fine totaling twice the fraud loss or twice the gain, whichever is greater, as well as mandatory restitution. The court may also order forfeiture of any fraud proceeds.
According to the evidence at trial, Lunn fraudulently obtained a $1.32 million line of credit from the bank for his business, as well as separate loans of $1.4 million and $500,000 purportedly on behalf of two clients. Lunn made a series of misrepresentations to Leaders Bank about his own assets, the purpose of the loans, and the knowing authorization of clients purportedly seeking the financing. Instead, Lunn used substantially all of the fraudulently obtained funds for his own benefit, including mortgage payments and approximately $1.4 million in payments to other investment clients.
Lunn initially obtained a business line of credit from Leaders Bank for $480,000 in May 2001. He increased the credit line twice in early 2004, first to $1.2 million and later to $1.32 million, all after he submitted personal financial statements to the bank falsely stating that he owned millions of dollars of stock in Morgan Stanley and Lehman Brothers. In September 2002, Lunn arranged for an unsecured bank loan of $1.4 million, purportedly for the benefit of former Chicago Bulls star Scottie Pippen, a client at the time, after falsely representing the proceeds of the loan would be used by Pippen to finance the purchase of an interest in an airplane. In June 2004, Lunn arranged a bank loan for $500,000 for the benefit of another former client, Robert Geras, a retired venture capitalist, without Geras’ knowledge or authorization, after submitting a net worth report for Geras and stating that Geras wanted short-term financing for a business investment.
The guilty verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. They thanked the U.S. Securities and Exchange Commission’s Chicago Regional Office for its cooperation and participation in the prosecution.
The government is being represented by Assistant U.S. Attorney Kenneth Yeadon and Special Assistant U.S. Attorney Rich Stoltz, a senior attorney with the SEC.
Chase Banker Convicted of Bribery Admits Taking Hundreds of Thousands of Dollars in Return for Selling Loans on Secondary Mortgage MarketRead the Press Release
SAN DIEGO – Lynda Sanabria, a J.P. Morgan Chase banker, admitted in federal court today to receiving more than $200,000 in bribe payments related to Chase’s sale of mortgages on the secondary market. As detailed in her guilty plea, Sanabria used her position and influence at Chase to ensure that her preferred customers won their bids to purchase mortgage notes. Sanabria received these bribe payments from San Diego businessman Israel Hechter, who pleaded guilty in September and admitted paying a total of $1 million in bribes to Sanabria and others.
As detailed in Court documents, Sanabria began accepting bribes from Hechter and his associates as early as 2004, when Hechter offered to pay her on the side in return for providing inside information on loans that Chase was putting up for sale. Around 2004, he arranged to make a $70,000 payment to Sanabria, which Sanabria used to purchase property near Lake Havasu, Arizona. In addition, Hechter would provide the former Chase banker with a fixed payment (up to around $300) for each loan on which he bid. Pursuant to this arrangement, Sanabria provided Hechter with details about his competitors’ bids, which helped to ensure that Hechter was the winning bidder.
By 2008, Hechter stopped reporting the illegal payments to the Internal Revenue Service, and Sanabria stopped paying taxes on the illegal income. As noted in Sanabria’s guilty plea, Hechter later referred to the payments as birthday gifts or consulting fees, in order to disguise the fact that he was paying for influence over her decisions at Chase.
Hechter, the owner of San Diego-based mortgage investment firms Ocean 18, LLC, and Note Tracker Corporation, admitted as part of his guilty plea that he paid a million dollars in bribes to Sanabria and other bankers at GMAC and National City Bank. In order to make sure that Hechter’s bids were successful, the bankers corrupted the process by altering bids, rejecting other bids, and erasing or ignoring bids from qualified competitors. The bankers also rigged the bidding process by supplying Hechter with confidential information about prices and competing bids.
Robert Moreno, of GMAC, was one of the other bankers to receive bribes from Israel Hechter. Last week, Moreno pleaded guilty, and admitted that he accepted more than $1 million in bribes from Hechter and from other GMAC customers.
After purchasing the mortgages from the various financial institutions, Hechter pooled the loans and sold shares of the pools to investors, usually friends and family members including his father, Zeev Hechter, his brother, Amir Hechter, and his employee, Jack Prober, each of whom also invested in the pools. After purchasing the loans, Ocean 18, LLC would service them and collect monthly payments from the borrowers, or would initiate foreclosure proceedings when the borrowers defaulted. The investors made money when borrowers made payments, sold the properties, or after foreclosure and re-sale.
“When bankers accept bribes, the real losers here are businesses who play by the rules, and our nation’s financial system, which is diminished with every one of these schemes,” said U.S. Attorney Laura Duffy. “We will continue to prosecute insiders who exploit their positions for personal gain.”
FBI Special Agent in Charge Eric S. Birnbaum commented, “By pleading guilty, Ms. Sanabria admitted corrupting the process and denying other businesses the opportunity to obtain valuable contracts. The FBI and our law enforcement partners are committed to pursuing anyone who illegally lines his or her own pockets at the expense of the public good."
Sanabria entered her guilty plea today before U.S. Magistrate Judge Bernard G. Skomal. Sanabria is scheduled to be sentenced by U.S. District Judge Roger T. Benitez on January 19, 2015, at 9 a.m.
Israel Hechter, Zeev Hechter, Amir Hechter, and Prober each pleaded guilty in September to participating in the conspiracy and making hidden payments to Sanabria, Moreno, or others. They are all scheduled to be sentenced on January 5, 2014, at 9:00 am. Moreno pleaded guilty to the same offense, and is scheduled to be sentenced on January 19, 2014, at 9:00 am. Each of these defendants will also be sentenced by Judge Benitez.
The swift resolution of these bribery and tax charges was the result of coordinated investigations by the Federal Bureau of Investigation, the Federal Housing Finance Agency – Office of Inspector General, and Internal Revenue Service, Criminal Investigation.
DEFENDANT PLEADING GUILTY Case Number: 14CR-2980-BEN Lynda Sanabria Age: 51 Rockwall, TX DEFENDANTS PREVIOUSLY CHARGED Israel Hechter, 14CR2703-BEN Age: 47 San Diego, CA Amir Hechter, 14CR2701-BEN Age: 42 San Diego, CA Jack Prober, 14CR2704-BEN Age: 56 La Jolla, CA Zeev Hechter, 14CR2702-BEN Age: 68 Aventura, FL Robert Moreno, 14CR2277-BEN Age: 42 Tempe, AZ CHARGESConspiracy to commit bank bribery and tax evasion, in violation of 18 U.S.C. § 371.
INVESTIGATING AGENCY
Maximum Penalties: 5 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Federal Bureau of Investigation
Federal Housing Finance Agency – Office of Inspector General
Internal Revenue Service, Criminal InvestigationCalifornia Woman Charged with Possessing Cell Phone Spyware and Using It to Intercept CommunicationsRead the Press Release
SAN JOSE – Kristin Nyunt was charged by information today with two counts of illegal wiretapping and the possession of illegal interception devices, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
According to the information, from 2010 to 2012, Nyunt, 40, most recently of Monterey Calif., is alleged to have intercepted communications, including sensitive law enforcement communications, by means that included “spy software” that the defendant secretly installed on the mobile phone of a police officer. The information also alleges that during the same period she illegally possessed interception devices, namely spy software including Mobistealth, StealthGenie, and mSpy, knowing that the design of those products renders them primarily useful for the purpose of the surreptitious interception of wire, oral, and electronic communications.
Previously, on Sept. 29, 2014, the Department of Justice announced the indictment of Hammad Akbar, 31, of Lahore, Pakistan, the chief executive officer of InvoCode Pvt Ltd, the company that advertises and sells StealthGenie online. Akbar and his co-conspirators allegedly created the spyware, which could intercept communications to and from mobile phones, including Apple’s iPhone, Google’s Android, and Blackberry Limited’s Blackberry.
Nyunt’s initial appearance is scheduled for October 23, 2014, at 1:30 p.m. before the Honorable Howard R. Lloyd, Magistrate Court Judge, in San Jose.
An information merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of five years and a fine of $250,000 for each violation of Title 18, United States Code, Sections 2511(1)(a) (Interception of Communications) and 2512(1)(b) (Possession of Interception Device Transported in Interstate Commerce). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Philip A. Guentert is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI and the Monterey County District Attorney’s Office.
(Nyunt information )
Boston Man, Maximo Stiven Bernabel-pena, Pleads Guilty to Drug Charges Incurred During Hammond Traffic StopRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MAXIMO STIVEN BERNABEL-PENA, age 24, a resident of Boston, Massachusetts, pled guilty today to an indictment charging him with possession and possession with intent to distribute 5 kilograms or more of cocaine hydrochloride. This defendant also pled guilty to drug conspiracy charges returned in the Northern District of Georgia. Under special procedures, BERNABEL-PENA pled guilty to this District’s charge as well as the Northern District of Georgia’s charge in Federal District Court in Atlanta today.
According to the indictment, on April 8, 2013, Troopers of the Louisiana State Police (LSP) Troop L Uniform Patrol Division, conducted a traffic stop in Hammond, Tangipahoa Parish, Louisiana, on Interstate 12 eastbound on a 2011 Dodge Caliber vehicle bearing a Florida license plate. The stop was based on a traffic violation. State Troopers identified the driver and sole occupant of the vehicle as BERNABEL-PENA.
Shortly after the traffic stop, State Troopers deployed a trained and qualified K-9 drug detection dog, and the dog performed a free air sniff test on the exterior of BERNABEL-PENA’s vehicle. The K-9 alerted to the presence of narcotics in the vehicle. A subsequent search of the vehicle resulted in the discovery of approximately 6.48 kilograms of a white powdery substance that tested positive for the presence of cocaine in a hidden compartment found beneath the flooring of the vehicle.
LSP troopers also seized $2,921 in U.S. currency from BERNABEL-PENA’s personal effects and this money was the proceeds of illegal drug activity by the defendant.
The Northern District of Georgia indicted twelve members of a national cocaine trafficking organization that included BERNABEL-PENA, charging a large-scale drug conspiracy investigated as an Organized Crime Drug Enforcement Task Force (OCDETF) case, code-named “Operation Holy Trap.” The investigation, lasting 18 months, involved drug activity in Georgia, Florida, Massachusetts, Texas, and Louisiana.
The organization is alleged to have been overseen by Edwin Rivera, a/k/a Neno, a/k/a Nano (“Rivera”), a Boston-based drug dealer. To date, investigators have seized over 70 kilograms of cocaine and approximately $1,000,000 in drug proceeds.
The Eastern District of Louisiana component of the investigation was led by the Department of Homeland Security (Border Enforcement Security Task Force, BEST, New Orleans) with the assistance of the Louisiana State Police, Troop L Uniform Patrol Division.
The Atlanta investigation component of this case was led by FBI agents from the David G. Wilhelm OCDETF-Atlanta Strike Force, which consists of federal, state, and local drug officers and focuses on dismantling international drug organizations operating in the United States. The investigation also included participation from the Strike Force members: the Drug Enforcement Administration (DEA), the United States Marshals Service, the Department of Homeland Security, the Internal Revenue Service-Criminal Investigation (IRS), the Georgia Bureau of Investigation (GBI), Lawrenceville Police, Gwinnett County Sheriff’s Office, Clayton County Police, and Barrow County Sheriff’s Office.
On both District’s charges, BERNABEL-PENA faces a minimum term of imprisonment of ten years, a maximum term of imprisonment of life, a maximum fine of $10,000,000, at least five years of supervised release after imprisonment, and a $100 special assessment.
“The distribution of dangerous illegal drugs reflects a callous disregard for public safety,” said Raymond R. Parmer, Jr., special agent in charge of DHS/HSI New Orleans. “This criminal seriously underestimated the dedication of DHS/HSI and its federal, state and local law enforcement partners to investigate and seek prosecution of dangerous individuals who threaten the safety of our law-abiding communities.” Parmer oversees a five-state area of responsibility including Louisiana, Mississippi, Alabama, Arkansas and Tennessee.
U.S. Attorney Polite praised the work of all agencies including the Department of Homeland Security Offices in the Eastern District of Louisiana in investigating this matter. Assistant United States Attorney John F. Murphy is in charge of the prosecution.
(Download Factual Basis )
Belleville Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsWillie L. Carroll, Jr., a 50-year old, Belleville, Illinois, man was sentenced on October 17, 2014, in federal district court in East St. Louis, Illinois, for failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Carroll was sentenced to 13 months’ in prison; 5 years’ supervised release, fined $250 and ordered to pay $150 special assessment.
A compliance check conducted at his mother’s residence by law enforcement officials on June 26, 2013, revealed that he had not stayed there consistently since February 2013, and that he had been living with his fiancé in Missouri. Carroll moved to Missouri, after signing the Illinois Sex Offender Registration Act Form on January 14, 2013, without registering as a sex offender in Missouri and updating his registration with the State of Illinois, as required under both Illinois law and the Sex Offender Registration and Notification Act (SORNA). Carroll was convicted of Aggravated Criminal Sexual Abuse on May 1, 1991, in St. Clair County, Illinois.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better 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.”
The case was investigated by the United States Marshals Service and the St. Clair County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Baltimore Felon Sentenced to over 11 Years in Prison for Robbing A Towson Cell Phone StoreRead the Press Release
Violated His Supervised Release From a Previous Bank Robbery Conviction
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Antonio Rennard Gilliam, age 43, of Baltimore, today to 135 months in prison followed by three years of supervised release for a commercial robbery and for violating his supervised release from a previous bank robbery conviction.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; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, on August 19, 2013, Gilliam robbed a cell phone store in the 800 block of Taylor Avenue in Towson. Gilliam told a store clerk that he wanted to switch his phone service. Gilliam lingered in the store until there were no other customers, then approached the cash register with his hand in his pocket, as if he were carrying a handgun. Gilliam leaned over the register counter and yelled at a store employee demanding all the money from the register. Gilliam took approximately $300 from the store, then ordered the store clerk to the back of the store and ordered another employee to go outside. Gilliam then ran away.
A short time later, Baltimore County Police officers responding to the robbery saw Gilliam, who matched the description of the robber, at a nearby intersection. They ordered Gilliam to stop, but he ran into a wooded area on the south side of Goucher Boulevard. Gilliam was found hiding in the woods and arrested. During a subsequent interview with police, Gilliam admitted robbing the cellular telephone store, as well as robbing a swimwear business in Towsontown Mall on August 15, 2013, taking about $300. Gilliam denied having a gun during either robbery.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, Jr., who prosecuted the case.
Baltimore Felon Sentenced to over 11 Years in Prison for Robbing A Towson Cell Phone StoreRead the Press Release
Violated His Supervised Release From a Previous Bank Robbery Conviction
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Antonio Rennard Gilliam, age 43, of Baltimore, today to 135 months in prison followed by three years of supervised release for a commercial robbery and for violating his supervised release from a previous bank robbery conviction.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; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, on August 19, 2013, Gilliam robbed a cell phone store in the 800 block of Taylor Avenue in Towson. Gilliam told a store clerk that he wanted to switch his phone service. Gilliam lingered in the store until there were no other customers, then approached the cash register with his hand in his pocket, as if he were carrying a handgun. Gilliam leaned over the register counter and yelled at a store employee demanding all the money from the register. Gilliam took approximately $300 from the store, then ordered the store clerk to the back of the store and ordered another employee to go outside. Gilliam then ran away.
A short time later, Baltimore County Police officers responding to the robbery saw Gilliam, who matched the description of the robber, at a nearby intersection. They ordered Gilliam to stop, but he ran into a wooded area on the south side of Goucher Boulevard. Gilliam was found hiding in the woods and arrested. During a subsequent interview with police, Gilliam admitted robbing the cellular telephone store, as well as robbing a swimwear business in Towsontown Mall on August 15, 2013, taking about $300. Gilliam denied having a gun during either robbery.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, Jr., who prosecuted the case.
Baltimore Felon Sentenced to over 10 Years in Prison for Illegal Possession of A Gun and Drug TraffickingRead the Press Release
Baltimore, Maryland –U.S. District Judge George L. Russell III sentenced Robert Fitzgerald, age 35, of Baltimore, today to 130 months in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition, and possession with intent to distribute heroin and marijuana.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to court documents, on October 16, 2012, Baltimore Police detectives executed a search warrant at Fitzgerald’s residence and seized 44 zip lock bags containing heroin, packaging material and other drug paraphernalia, a digital scale, 36 zip lock bags containing marijuana, a food saver clear plastic bag with marijuana, $1,284, a loaded .32 caliber revolver, a .22 revolver and a box of ammunition with .32 caliber rounds.
Fitzgerald had previously been convicted of a felony and was prohibited from possessing a firearm and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Baltimore Cocaine Dealer Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Kevin Gerard Wyche, age 27, of Baltimore, today to 10 years in prison followed by three years of supervised release for possession with intent to distribute cocaine.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement, on June 26, 2013, Baltimore City Police officers executed a search warrant at Wyche’s residence for evidence of narcotics trafficking. Police recovered four plastic bags containing a total of 100.79 grams of cocaine; a plastic bag containing 10.44 grams of marijuana; drug paraphernalia; and a bag containing over 115 rounds of ammunition, all which were hidden in the ceiling of the basement between the floor joists. Law enforcement also recovered computers, cell phones, and drug packaging material from the front basement bedroom where Wyche was staying. During a taped interview with police, Wyche admitted that the drugs and ammunition belonged to him. Wyche had previously been convicted of a felony and was prohibited from possessing a gun or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City 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.
Attorney General Holder Recognizes Department Employees and Others for Their Service at Annual Awards CeremonyRead the Press Release
Attorney General Eric Holder recognized 278 department employees earlier this week, including six from the U.S. Attorney’s Office for the Southern District of New York, for their distinguished public service at the 62nd Annual Attorney General’s Awards Ceremony. Held Wednesday at DAR Constitution Hall, this annual ceremony recognized both department employees and others for their outstanding dedication to carrying out the Department of Justice’s missions.
Attorney General Holder stated: “With this important event, we come together to honor some of our nation’s most distinguished, dedicated, and deserving public servants. The hard work and impressive achievements of these 278 award recipients have inspired their colleagues at every level of the U.S. Department of Justice – including me. Their leadership has been indispensable in defining the past year as one of historic accomplishment in the face of nearly unprecedented challenge.”
Six Assistant U.S. Attorneys from the Office of Manhattan U.S. Attorney Preet Bharara were honored at the ceremony.
Manhattan U.S. Attorney Preet Bharara stated: “I am exceedingly proud of the accomplishments of the prosecutors in the Bernard Madoff investment fraud. Their tireless work uncovering the breadth of the scheme has led to multiple indictments and convictions, ensuring that all who played a role in the largest Ponzi scheme in history are brought to justice. Their ongoing efforts to achieve meaningful compensation for victims show their commitment not just to holding accountable those responsible for the fraud, but to making the victims whole.”
The John Marshall Award for Asset Forfeiture was presented to Assistant U.S. Attorneys Arlo Devlin-Brown, Christopher D. Frey, Randall Wade Jackson, Paul M. Monteleoni, Matthew L. Schwartz, and John T. Zach for the U.S. Attorney’s Office for the Southern District of New York, and Assistant U.S. Attorney Barbara A. Ward of the U.S. Attorney’s Office for the District of New Jersey. This team is responsible for the investigation and prosecution of various cases stemming from the collapse of Bernard L. Madoff Investment Securities, which was revealed in December 2008 to be the largest Ponzi scheme in history. In the five years since Bernard Madoff was arrested for orchestrating his massive Ponzi scheme, the team conducted an international investigation that resulted in the prosecution of more than a dozen individuals; a deferred prosecution agreement with JPMorgan Chase Bank; and the forfeiture and collection of more than $4 billion. The forfeited funds are being distributed through the largest and most ambitious remission project in the department’s history, where it will reach thousands of victims in dozens of countries, and serve as a precedent for future large-scale remission programs. The team’s extraordinary work, including its novel use of forfeiture, has ensured a meaningful measure of recompense to thousands of innocent victims who otherwise would not have recovered anything from the failed investments.
Attempted Bank Robber - Who Led Police on Chase and Then Entered A Store to Avoid Apprehension - Is Sentenced to 84 Months in Federal PrisonRead the Press Release
DALLAS — A Dallas man who attempted to rob a bank in Carrollton, Texas, last summer, and who led police on a vehicular chase, wrecked that vehicle and then entered a store to avoid apprehension, was sentenced this morning in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Michael Antonio Canez, aka Rudolph Rudy Casillas, 36, was sentenced by Chief U.S. District Judge Sidney A. Fitzwater to 84 months in federal prison. Canez pleaded guilty in January 2014 to one count of attempted bank robbery. He has been in custody since his arrest shortly after the attempted robbery.
According to documents filed in the case, on August 10, 2013, Canez entered Capital One Bank, located at 2603 Old Denton Road in Carrollton with the intent to rob it. After he entered the bank, he presented a note to a teller that stated, “Give me all of the money. I have a gun.” Canez had his right hand in his pocket as if he had a gun. The teller advised that his cash drawer was in the drive-through area and that he needed to walk there to retrieve the cash. The teller walked away, but when he did not return, Canez became upset and tried to get the teller’s attention by yelling, “Hey, Sir!”
A second teller approached Canez and offered assistance. Canez told her to get the first teller. When the second teller walked to the drive-through area, the first teller advised her of the robbery in progress. When neither returned, Canez jumped the teller counter, looked in the back of the bank, and then jumped back over the counter, leaving the bank without obtaining any cash.
Officers with the Carrollton Police Department observed Canez running from the bank and entering a pickup truck. He evaded apprehension and a vehicular chase ensued. During that evasion, he discarded a BB/pellet pistol that officers later recovered and he later admitted to having in his right pants pocket during the attempted robbery. Canez ultimately wrecked his truck in the parking lot of a Target store and he entered the store in an attempt to avoid apprehension. Inside the store, according to the complaint filed, Canez put on a shirt from the store, purchased beer and attempted to walk out of the store. He was arrested as he left the store.
The FBI and Carollton Police Department investigated. Assistant U.S. Attorney Keith Robinson prosecuted.
Assistant U.S. Attorney in the Southern District of Florida Receives Attorney General AwardsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announces that yesterday in Washington, D.C. Attorney General Eric Holder presented 278 Justice Department employees and 10 individuals, including one Assistant U.S. Attorney in the Southern District of Florida with Attorney General Awards. These annual awards recognize department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.
U.S. Attorney Wifredo Ferrer stated, “This awards confirms that which I already know – that the attorneys and staff of the U.S. Attorney’s Office are of the highest caliber in the nation. I am proud that the Department has recognized AUSA Kevin Larsen for this well-deserved award. His dedication, hard work and commitment to the cause of justice makes him a worthy recipient of this great honor.”
“With this important event, we come together to honor some of our nation’s most distinguished, dedicated, and deserving public servants,” said Attorney General Holder. “The hard work and impressive achievements of these 278 award recipients have inspired their colleagues at every level of the U.S. Department of Justice – including me. Their leadership has been indispensable in defining the past year as one of historic accomplishment in the face of nearly unprecedented challenge.”
In the Southern District of Florida, the following individual was recognized for the following award:
The Attorney General’s Award for Fraud Prevention recognizes exceptional dedication and effort to prevent, investigate and prosecute fraud, white-collar crimes and official corruption. This team is honored for its exceptional perseverance, diligence and vision in the investigation, litigation and prosecution of allegations that Johnson & Johnson and two of its subsidiaries, Janssen and Scios, improperly promoted drugs, disregarded patient safety and paid kickbacks to enhance sales. The resolution marks the culmination of an extensive, coordinated eight-year investigation. The team’s extraordinary efforts resulted in three civil complaints and two criminal informations filed in the three different districts, and demonstrated an exemplary use of parallel proceedings. More important, the team’s efforts resulted in Johnson & Johnson paying in excess of $2.2 billion to resolve criminal and civil liability arising from its illegal misbranding and fraudulent marketing of drugs to vulnerable populations such as the elderly, children and those with developmental disabilities, and its payment of kickbacks to physicians and the nation’s largest long-term care pharmacy provider. The global resolution is the third largest health care fraud settlement in U.S. history, and with respect to Risperdal, the resolution is the largest settlement for one drug.
This year’s award is presented to Assistant U.S. Attorney Kevin James Larsen from the U.S. Attorney’s Office for the Southern District of Florida.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Armed Career Criminal Sentenced to 200 Months in PrisonRead the Press Release
Follow @NDFLNewsTALLAHASSEE, FLORIDA–Edgar Carl Darling, III, 45, of Tallahassee, was sentenced to 200 months in prison based upon his guilty plea to a charge of possession of a firearm by a convicted felon. United States District Judge Mark Walker also sentenced Darling to serve a term of five years supervised release. This sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
United States Attorney Pamela C. Marsh credited the successful prosecution to the joint efforts of the Tallahassee Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Michael T. Simpson prosecuted this case.
On February 11, 2014, residents at a Levy Avenue apartment complex called the Tallahassee Police Department (TPD) to report a man with a handgun involved in an argument at the complex. By the time TPD officers arrived, the man had fled in a car. A TPD officer spotted the vehicle at the corner of Levy and Lake Bradford Road, attempting to make a left-hand turn from the right-hand lane, and discovered Darling in that car.
After the female driver and Darling were removed from the vehicle, officers found a loaded Hi-Point nine millimeter semi-automatic pistol in the front console. The woman driver stated that Darling got the pistol after he was confronted by persons seeking to collect a $500 drug debt.
The Federal Armed Career Criminal statute provides a mandatory minimum fifteen year term for persons arrested with firearms after three or more convictions for violent felony and/or serious drug offenses. Darling had multiple prior convictions that qualified under this statute, and thus he was sentenced as an Armed Career Criminal.Another Defendant Sentenced in Identity Theft Fraud Scheme Involving Personal Identifying Information from AT&T Customer FilesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Jacqueline Nicole Lee Warrick, 26, of Miami, was sentenced before U.S. District Judge Marcia G. Cooke. Warrick was sentenced to 30 months in prison, followed by three years of supervised release.
Warrick previously pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On July 30, 2014, co-defendant Tracey Delva, 27, of Deerfield Beach, pled guilty to one count of access device fraud, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Sentencing for Delva is scheduled for October 29, 2014.
On August 6, 2014, co-defendant Chouman Emily Syrilien, 25, of Lauderdale Lakes, was sentenced to 34 months in prison, to be followed by three years of supervised release. Syrilien pled guilty to one count of possession of 15 or more unauthorized access devices and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A.
On October 1, 2014, Carlos Antonio Alexander, 24, of Orlando, was sentenced to 16 months in prison, followed by three years of supervised release. Alexander pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On September 3, 2014, Angel Arcos, 23, of Pompano Beach, was sentenced to time served, to be followed by four years of supervised release. As a condition of his supervised release, Arcos was subject to 180 days of home detention with electronic monitoring. Arcos pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.
On September 3, 2014, Monique Smith, 31, of Pompano Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft in violation of Title 18, United States Code, Section and 1028A. Arrington Basil Segu, 28, of Miami pled guilty to one count of access device fraud and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Sentencing for Smith and Segu is scheduled for November 19, 2014.
On September 22, 2014, Shantegra La’Shae Godfrey, 23, of Deerfield Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for December 3, 2014.
According to court documents, defendant Syrilien was employed by Interactive Response Technologies, Inc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Alexander, Delva, Godfrey, Smith and Warrick were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money.
Delva and Warrick both utilized fraudulently obtained debit and credit cards that bore their names as additional “authorized users” on victims’ accounts to make both retail purchases as well as cash advances in excess of $28,000. Alexander, Smith and Godfrey made retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity. From September 16 to 18, 2013, five withdrawals totaling $13,000 were made from the fraudulent account and deposited into Arcos’ checking account.
The defendants face a maximum of 30 years in prison for the conspiracy charge, a maximum of 10 years in prison for the access device fraud charge, and a mandatory term of two years in prison for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
After Supreme Court Declines to Hear Same-Sex Marriage Cases, Attorney General Holder Announces Federal Government to Recognize Couples in Seven New StatesRead the Press Release
Attorney General Eric Holder announced today that the federal government will recognize same-sex marriages taking place in the states affected by the Supreme Court’s recent decision to decline to review rulings from three federal appeals courts that had struck down bans on same-sex marriage. The Attorney General added that the Department of Justice will work with agencies across the administration to ensure that all applicable federal benefits are extended to those couples as soon as possible.
“We will not delay in fulfilling our responsibility to afford every eligible couple, whether same-sex or opposite-sex, the full rights and responsibilities to which they are entitled. With their long-awaited unions, we are slowly drawing closer to full equality for lesbian, gay, bisexual, and transgender Americans nationwide,” Attorney General Holder said.
The complete text of the Attorney General’s video message is below:
“Last week, the Supreme Court declined to review rulings from three federal appeals courts that had struck down bans on same-sex marriage in five states across the country. Going forward, marriage equality will be the law in those states.
“The practical consequences of the Court’s decision are profound for families throughout the nation. Within hours of the decision, same-sex couples in Indiana, Oklahoma, Utah, Virginia, and Wisconsin were able to have their unions recognized in the states where they live—to stand with their partners, and with their children, as loving and committed families with the full protection of the law.
“I am pleased to announce that the federal government will recognize the same-sex marriages now taking place in the affected states, and I have directed lawyers here at the Department of Justice to work with our colleagues at agencies across the Administration to ensure that all applicable federal benefits are extended to those couples as soon as possible. We will not delay in fulfilling our responsibility to afford every eligible couple, whether same-sex or opposite-sex, the full rights and responsibilities to which they are entitled.
“With their long-awaited unions, we are slowly drawing closer to full equality for lesbian, gay, bisexual, and transgender Americans nationwide. By letting the lower-court decisions stand, the Supreme Court expanded the number of states allowing same-sex marriage from 19 to 24, along with the District of Columbia. Just one day after the Supreme Court’s action, the U.S. Court of Appeals for the Ninth Circuit joined the other courts that have invalidated bans, extending marriage rights even further. In the past eight days, at least half a dozen additional states have recognized marriage equality. And even more states covered by the lower-court rulings will almost certainly be joining them in short order.
“The steady progress toward LGBT equality we’ve seen – and celebrated – is important and historic. But there remain too many places in this country where men and women cannot visit their partners in the hospital, or be recognized as the rightful parents of their own adopted children; where people can be discriminated against just because they are gay. Challenges to marriage restrictions are still being actively litigated in courts across the country. And while federal appeals courts have so far been unanimous in finding that bans on same-sex marriage are unconstitutional, if a disagreement does arise, the Supreme Court may address the question head-on. If that happens, the Justice Department is prepared to file a brief consistent with its past support for marriage equality.
“In the meantime, we will continue to extend federal benefits to same-sex couples to the fullest extent allowed by federal law. And we will continue to work—to the very best of our ability—to bring about a more equal future for all Americans nationwide.”
The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Abilene Man Faces up to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — A 21-year-old Abilene, Texas, man appeared in federal court in Lubbock, Texas, this morning and pleaded guilty to a federal child pornography offense, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Reymundo Alejandro Sanchez pleaded guilty before U.S. District Judge Sam R. Cummings to one count of possession of child pornography. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Sanchez remains on bond.
According to plea documents filed in the case, Sanchez used his cell phone to communicate with several persons using a mobile application called Kik, as well as through Facebook and other means. Many of those persons identified themselves to Sanchez as minors.
Sanchez engaged many of those persons in sexually oriented communication, which often included Sanchez sending one or more sexually explicit images of himself. In exchange, Sanchez sometimes received images or videos of minors engaged in sexually explicit conduct. One example of such child pornography was a video that Sanchez received on approximately April 30, 2014, which depicted a female minor, under age 18, engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Abilene Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case. Assistant U.S. Attorney Steven M. Sucsy is prosecuting the case.
A Department of Veterans Affairs Official and Durable Medical Equipment Vendor Charged with Health Care FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veteran Affairs, Office of Inspector General (VA-OIG), announce the charges filed against Timothy Rouch, 47, Port St. Lucie, the former Chief of Prosthetics at VA Medical Center West Palm Beach, and Frankie Lane, 52, formerly of Boca Raton, owner of AAA Medical Discount, two defendants for conspiracy to commit healthcare fraud, in violation of Title 18, United States Code, Section 1349.
According to the information, the defendants conspired to fraudulently bill the VA in West Palm Beach for durable medical equipment that was never provided to veterans. The VA official solicited and received kickbacks from the vendor. AAA Medical Discount sold over $2.2 million in durable medical equipment to the VA from 2006-2010.
If convicted, each faces a statutory maximum penalty of up to 10 years in prison, to be followed by up to a three-year term of supervised release, and imposition of a $250,000 fine in addition to payment of restitution.
Mr. Ferrer commended the investigative efforts of the VA-OIG. The case is being prosecuted by Assistant U.S. Attorney Stephanie Evans.
An information is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
24 Arrested in Crystal City Area-Based Cocaine Distribution OperationRead the Press Release
Federal, state and local law enforcement have arrested 23 individuals, including 35-year-old alleged ringleader George Alamillo of San Antonio, charged with conspiracy to distribute cocaine in the Crystal City, La Pryor, Carrizo Springs and San Antonio areas announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division, and Homeland Security Investigations Special Agent in Charge Janice Ayala, San Antonio Division.
An eight–count indictment, unsealed today, charges those arrested, along with 44–year-old Gabriel Martinez (aka “Gabby”), who was already in custody prior to yesterday, with conspiracy to distribute cocaine. A list of the defendants arrested yesterday is below. Defendants face between five and 40 years, or up to 20 years, in federal prison upon conviction for the drug conspiracy charge.
The indictment alleges that from February 2014 to September 2014, the defendants participated in a cocaine distribution conspiracy. During this investigation, authorities have seized approximately one kilogram of cocaine, 660 pounds of marijuana, 15 firearms (including 10 AK-47s and one MAC-10 semi-automatic pistol), approximately $33,000 in U.S. Currency and three vehicles.
In addition to the drug charges, several defendants including Gerardo Martinez, Gabriel Martinez, Claudio Jimenez and Javier De la Rosa are charged with knowingly transporting undocumented aliens. Each defendant faces up to ten years incarceration upon conviction.
Domingo Aguilar also faces a single charge of unlawful possession of a firearm by a drug user. The indictment alleges that on June 10, 2014, Aguilar was unlawfully in possession of a .22 caliber American Tactical Rifle. Aguilar faces up to ten years incarceration upon conviction.
Martha Perez also faces a misprision of felony charge whereby she allegedly was aware of the drug distribution conspiracy and had possession of a cell phone used by a co-defendant to facilitate the operation, yet denied ever possessing the phone to authorities. Perez faces up to three years incarceration upon conviction.
“The success of this operation exemplifies the outstanding teamwork among federal, state and local law enforcement agencies in the Eagle Pass region. DEA will continue to work closely with our law enforcement partners in order to improve the quality of life in the communities throughout this area,” stated DEA Special Agent in Charge Joseph M. Arabit.
These charges and arrests resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration and Homeland Security Investigations with assistance from the United States Border Patrol, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Eagle Pass Police Department, 293rd Judicial District Attorney’s Office, Dimmit County Sheriff’s Office, Uvalde County Sheriff’s Office, Kinney County Sheriff’s Office, Maverick County Sheriff’s Office and the Zavala County Sheriff’s Office.
“This OCDETF criminal investigation worked by Homeland Security Investigations (HSI) and DEA dealt a major blow to a south Texas criminal organization that is made up several criminal networks,” said Special Agent in Charge Janice Ayala, HSI San Antonio.
“The Zavala County Sheriff’s Office is committed to working with our federal and state law enforcement partners to identify and remove drug trafficking from our communities,” said Zavala County Sheriff Eusevio Salinas. “Investigations of this scale provide a positive impact on our citizens and make our communities safer. I would like to thank the DEA Eagle Pass Office and HSI for their commitment to the citizens of Zavala County and our State.”
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
ARRESTED YESTERDAY (24)
NAME AGE RESIDENCE
GEORGE ALAMILLO 35 San Antonio
LUCIO LEROY GONZALEZ 34 San Antonio
MARTHA ZULEMA PEREZ 44 LaPryor, TX
JOSE LUIS PEREZ 39 LaPryor
LLOYD DANIEL JACQUEZ a.k.a. “Richie” 34 LaPryor
JAVIER PEREZ a.k.a. “J-Bird” 33 LaPryor
JESUS VICTORINO a.k.a. “Chuy” 35 Uvalde, TX
JOHN DAVID VICTORINO a.k.a. “Pajaro” 35 Uvalde
MARGARITO BALCAZAR a.k.a. “Nunito” 26 LaPryor
VENTURA MORENO a.k.a. “Benny” 34 Crystal City, TX
REYNALDO ROBLEDO a.k.a. “Rey” 34 LaPryor
TIMOTHY PENA 36 LaPryor
JESSE JOE QUEVEDO a.k.a. “Caveman”, “Chuy” 35 Crystal City
GERARDO MARTINEZ a.k.a. “Gerry” 47 Crystal City
JESSICA LARA RODRIGUEZ 30 Carrizo Springs, TX
CHRIS MARTINEZ 40 Carrizo Springs
RAMIRO AGUILAR a.k.a. “Ram” 41 Crystal City
JOHNNY AGUILAR 40 Crystal City
MARK ANTHONY MENA 27 Crystal City
DEEANA NICOLE MARTINEZ 24 Crystal City
CLAUDIO PABLO JIMENEZ a.k.a. “Clyde” 43 Crystal City
JAVIER DELAROSA 42 Crystal City
DOMINGO AGUILAR a.k.a. “Mingo” 61 Crystal City
JESUS PEREZ a.k.a. “Jesse” 34 LaPryor
Thursday 16 October 2014
“Operation Stolen Youth” Receives National AwardRead the Press Release
Washington DC – Thomas W. Padden, Director, Organized Crime Drug Enforcement Task Forces (OCDETF), Department of Justice, announced that the District of North Dakota was the recipient of the 2014 OCDETF National Award for Outstanding Investigation for Creative Response to Emerging Public Safety Threat for the phenomenal multi-agency investigative work during “Operation Stolen Youth”. This prestigious national award most exemplifies the mission and spirit of the OCDETF Program and reflects great credit upon the District of North Dakota and those North Dakota law enforcement agencies involved in the Operation Stolen Youth investigation.
In Bismarck, Timothy Q. Purdon, US Attorney, said "This national award, the first one ever awarded to agents, prosecutors, and staff in North Dakota, is well deserved recognition on a national scale for a law enforcement team whose swift actions in response to synthetic drug overdose deaths in Grand Forks and East Grand Forks kept the public safe, dismantled the organization that was trafficking this poison, and delivered some measure of Justice to the families of the young men who lost their lives as a result of taking synthetic drugs." Purdon added, “All illegal drugs are dangerous and synthetic analogue substance are no different. You risk your life when you ingest them."
In Fargo, Christopher C. Myers, First Assistant US Attorney, said “We have worked numerous large and successful drug cases in the District of North Dakota but the swift, team-based response in this case was remarkable given that the substances ingested were new and deadly analogue controlled substances. Despite this challenge, this team identified, targeted and dismantled a nationwide trafficking organization within sixty days of the first overdose. Such a feat is unheard of in the investigation of large scale drug trafficking organizations. The performance of this particular team in this case was exemplary and undoubtedly saved lives.”
“Operation Stolen Youth” investigation was initiated in June of 2012, after two teenagers died from an overdose of deadly analogue controlled substances in the Grand Forks area. The investigation revealed that several young adults in the Grand Forks area were involved in the distribution of various analogue substances that were acquired from an internet based company near Houston, Texas named Motion Resources, which was importing these substances from overseas and distributing them across the United States. Charles William Carlton, 29, Katy, Texas, was identified as the leader and was sentenced to serve 20 years and six months in prison for his role in the conspiracy. Carlton was also ordered to forfeit $385,000 in proceeds related to Motion Resources. Additionally, 14 other defendants were convicted in the case. The sentences for the other defendants ranged from probation to 20 years imprisonment.
Recognized for their contribution to this successful investigation were:
Terrence Boos Drug Enforcement Administration
Lori Daly United States Attorney's Office
Brent Druery Homeland Security Investigations
Steve Gilpin North Dakota Bureau of Criminal Investigation
Nathan Glur Internal Revenue Service, Criminal Investigation
Jeremy Grube Homeland Security Investigations
Adam Henney United States Postal Inspection Service
Julie Hough United States Attorney's Office
Tom Irvin United States Postal Inspection Service
Mike Jennings Grand Forks Police Department
Charlene Keller North Dakota State Laboratory
Kenneth Kulick Food and Drug Administration
Joel Lloyd Grand Forks Sheriff's Office
Christopher C. Myers United States Attorney's Office
Cassandra Prioleau Drug Enforcement Administration
Chelsea Smith United States Attorney's Office
Debra Wilson United States Attorney's OfficeYonkers Cardiologist Convicted of Fraud SentencedIn White Plains Federal Court to Three Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROHAN WIJETILAKA was sentenced today by U.S. District Judge Vincent L. Briccetti in White Plains federal court to three years in prison for health care fraud. WIJETILAKA, who previously pled guilty in June 2014, was also ordered by Judge Briccetti to pay a total of $2 million in forfeiture and restitution.
U.S. Attorney Preet Bharara stated: "Sworn to use his education and skills to comfort and heal, Wijetilaka instead resorted to fraud on a massive scale, abusing the trust placed in him by his patients and by the community. Our Office commends the investigative efforts in this case of the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of the Inspector General, the Westchester County Department of Public Safety, and the Yonkers Police Department.”
According to the Indictment to which WIJETILAKA pled guilty, statements made during the plea, and other information presented during the case:
WIJETILAKA, 65, of Manhattan, was a cardiologist licensed to practice medicine in the State of New York. He maintained a cardiology practice in Westchester County, New York (the “Wijetilaka Practice”), which included examination rooms and diagnostic testing facilities. WIJETILAKA obtained payments for diagnostic tests, office visits, and other procedures (collectively, the “Medical Procedures”) from Medicare and numerous private health insurance providers (the “Health Insurance Providers”).
In July 2007, WIJETILAKA received written notice from the New York State Department of Health, State Board for Professional Medical Conduct (the “State Board”), that he was the subject of a State Board investigation. In November 2011, following an initial inquiry, the State Board served WIJETILAKA with formal charges of professional misconduct relating, in part, to alleged fraudulent billing. In June 2012, after multiple hearings, a State Board committee found against WIJETILAKA on 41 specifications of professional misconduct, including fraudulent billing, filing false reports, and failing to maintain adequate medical records.
To receive payments for Medical Procedures from the Health Insurance Providers, WIJETILAKA was required, among other things, to submit, and cause the Wijetilaka Practice to submit, information to the Health Insurance Providers regarding aspects of the Medical Procedures he performed or caused to be performed. For instance, in order to bill Medicare for a particular patient procedure, WIJETILAKA had to submit a form that stated a diagnosis of the patient’s condition and provided a procedure code identifying the service or services rendered. WIJETILAKA also had to certify, in substance, that the services rendered were medically necessary and furnished by the Wijetilaka Practice.
Between 2009 and 2011, WIJETILAKA routinely performed Medical Procedures at the Wijetilaka Practice for which WIJETILAKA and the Wijetilaka Practice submitted claims to Health Insurance Providers. During this period, WIJETILAKA submitted millions of dollars of claims to Medicare alone.
With respect to many of the Medical Procedures he performed or caused to be performed, WIJETILAKA furnished, and caused to be furnished, false information to Health Insurance Providers (the “Fraudulent Claims”) that resulted in the Health Insurance Providers paying the Wijetilaka Practice for procedures that were medically unnecessary and served no meaningful diagnostic purpose. Among other things, WIJETILAKA falsely billed for office visits that did not occur and falsely reported non-existent symptoms to justify costly and unnecessary diagnostic tests.
In order to attract additional patients to the Wijetilaka Practice and maintain existing patients, WIJETILAKA would and did provide Schedule II controlled substances, including oxycodone, to drug-seeking patients, in exchange for those patients undergoing unnecessary diagnostic tests and other Medical Procedures.
In this manner, WIJETILAKA defrauded Health Insurance Providers out of money paid to the Wijetilaka Practice as a result of the Fraudulent Claims.
Despite being on notice that he was under State Board investigation in July 2007, and being formally charged with professional misconduct by the State Board in or about November 2011, for, among other things, fraudulent billing, WIJETILAKA continued his illicit scheme. To conceal his scheme from the State Board, WIJETILAKA generated additional false records to justify tests that he had performed.
Mr. Bharara praised the investigative efforts of the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of the Inspector General, the Westchester County Department of Public Safety, and the Yonkers Police Department.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Ilan Graff, Andrew Bauer, Kathryn Martin, and Benjamin Allee are in charge of the prosecution.
Woman Sentenced to Probation with Home Detention, Ordered to Perform Community Service for Violating Federal Drug LawsRead the Press Release
JOHNSTOWN, Pa. - A resident of Derry, Pa., has been sentenced in federal court to three years’ probation, the first six months of which will be home detention with electronic monitoring, and 100 hours of community service, on her conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Holly Thomas, 23.
According to information presented to the court, from the spring of 2011 to May 15, 2012, Thomas, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department for the investigation leading to the successful prosecution of Thomas. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
Witness Tampering Indictment Returned Against Two New Orleans MenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANTONIO NEVEAUX, 39, and ANTHONY B. WASHINGTON, 52, both residents of New Orleans, were charged today in a superseding indictment with conspiring to tamper with a witness during a pending federal investigation. The superseding indictment also realleges the counts of an indictment returned by the grand jury against NEVEAUX in February 2014 charging him with possession with the intent to distribute more than 28 grams of crack cocaine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, NEVEAUX and WASHINGTON conspired to corruptly obstruct a federal grand jury proceeding investigating NEVEAUX.
U. S. Attorney Polite reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, (“ATF”) in investigating this matter. Assistant Tony Sanders of the Violent Crimes Unit under the Project Safe Neighborhoods initiative is in charge of this prosecution.
(Download Indictment )
Wisconsin Man Sentenced to over Nineteen Years in Federal Prison for Bank RobberyRead the Press Release
A man who robbed two downtown Cedar Rapids banks while he was on federal and state parole for prior bank robbery convictions was sentenced today to more than nineteen years in federal prison.
Jeffrey Haydock, 58, from Watertown, Wisconsin, received the prison term after a June 13, 2014, guilty plea to two counts of bank robbery with a dangerous weapon.
At the guilty plea, Haydock admitted he robbed the First Federal Credit Union on July 30, 2009, and the Linn Area Credit Union on February 17, 2010. Haydock further admitted that he was armed with what appeared to be a gun during each robbery. In a plea agreement, Haydock also admitted he robbed the First Federal Credit Union for a second time on November 12, 2009. At the time of the robberies, Haydock was on parole for both a 1986 federal conviction for bank robbery and a 1986 conviction in Wisconsin for multiple bank robberies.Haydock was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Haydock was sentenced to 235 months’ imprisonment. A special assessment of $200 was imposed and he was ordered to make restitution to the banks. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Cedar Rapids Police Department and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-CR-0047.
Westmoreland County Man Gets Prison Sentence for Conspiring to Distribute HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of New Florence, Pa., has been sentenced in federal court to 12 months in prison, 100 hours community service and three years supervised release, on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Brian Davenport, 24.
According to information presented to the court, from the spring of 2011 to May 15, 2012, Davenport, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department for the investigation leading to the successful prosecution of Davenport. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
West Chester Woman Charged in Real Estate Ponzi SchemeRead the Press Release
PHILADELPHIA – Marie Mikesche Bontigao, 43, of West Chester, PA, was charged by indictment, unsealed yesterday, in a fraud scheme involving more than $2 million, announced United States Attorney Zane David Memeger. She is charged with wire and mail fraud.
Bontigao was a licensed real estate broker who operated a franchise location of EXIT Realty in Philadelphia, New Jersey and Delaware and was the founder of the EXIT Realty “Tri-State Group: and “Tri-State Investment Holdings, Inc.” (T.R.I.H.I.). According to the indictment, between 2007 and 2013, Bontigao solicited individuals to invest in her real estate projects but, instead of investing the lenders’ money in real estate used the funds to operate her business and to pay personal expenses. Bontigao allegedly bilked these lenders out of more than $2 million.
If convicted, the defendant faces a maximum possible sentence of 80 years in prison, a three-year period of supervised release, and a $1 million fine.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Denise S. Wolf.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Wentzville Man Sentenced on Multiple Armed Bank Robberies and Shooting of Missouri State TrooperRead the Press Release
St. Louis, MO – WARREN J. GLADDERS, Wentzville, MO, was sentenced to 293 months in prison involving three armed bank robberies committed in July, August and September 2013. On July 7, 2013, Gladders took approximately $7,000 from the Reliance Bank located in Creve Coeur, Missouri. On August 2, 2013, Gladders took approximately $5,000 from First National Bank located in Weldon Springs, Missouri. On September 20, 2013, Gladders took approximately $43,000 from the First Bank located in Marthasville, Missouri. In each instance, Gladders entered the banking institution and threatened the bank tellers and customers while displaying a firearm.
On September 20, 2013, Gladders fled the scene of his final bank robbery in his personal vehicle. Gladders was traveling at a high rate of speed. A witness outside of First Bank observed the robbery in progress. The witness was able to obtain a partial license plate number and description of Gladders’ vehicle. That information was provided to law enforcement officials. A Missouri State Highway Patrol trooper observed a vehicle matching the description and license plate number and followed it. The trooper pursued and caught up to Gladders and his vehicle. The trooper activated his vehicle’s emergency lights and sirens. Gladders eventually pulled his vehicle over. The trooper exited his vehicle and demanded that Gladders get out of his vehicle. As the trooper was exiting his vehicle, Gladders exited his.
As Gladders exited his vehicle, he raised the Smith and Wesson revolver possessed by him and shot at the trooper approximately four times. One of those shots struck the trooper in the center of the trooper’s chest. The trooper was protected by his protective vest. The bullet from Gladders’ firearm penetrated the vest but not the trooper’s body. The trooper was able to return fire. The trooper struck Gladders at least once in the leg. Gladders fell to the ground and the firearm fell out of Gladders’ hand. Gladders attempted to regain control of his firearm. The trooper fired additional warning shots at Gladders -- not striking him. Gladders stopped moving at that point. The trooper was able to remove Gladders’ firearm from his proximity and place Gladders under arrest. Multiple law enforcement officials from various agencies responded to the scene. Gladders was taken into custody and transported for medical attention.
Following Gladders’ arrest, search warrants were obtained for his vehicle, residence and business. Among other things, most of the items worn or used by Gladders during the armed bank robberies were located and seized by law enforcement. Furthermore, an officer recovered and seized what is commonly referred to as a “sawed-off shotgun” from inside Gladders’ vehicle.
Gladders pled guilty to the charges in July and appeared today for sentencing before United States District Judge Carol E. Jackson. The Missouri State Highway Patrol trooper was present in court for the sentencing.
In addition to the Federal Bureau of Investigation, this case was investigated by the Missouri State Highway Patrol, the Warren County Sheriff’s Department, the St. Charles County Sheriff’s Department, the Creve Coeur Police Department, the Montgomery County Sheriff’s Department, the Jonesburg Police Department and the Wright City Police Department, along with coordination amongst the Warren County, St. Charles County and St. Louis County Prosecuting Attorneys’ Offices.
Wayne County Man Charged with Firearm OffenseRead the Press Release
Follow @SDILNewsAlvin L. Ewing, II, 50, of Fairfield, Illinois, has been charged in United States District Court in Benton with being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on October 7, 2014, stemmed from Ewing’s arrest by an Illinois State Police trooper following a traffic stop on. During this stop, a Bushmaster .223 caliber semi-automatic rifle was found concealed on the motorcycle Ewing was driving.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The indictment also alleges that Ewing committed this offense after conviction of at least three violent felonies or serious drug offenses within the meaning of federal law. If convicted, Ewing faces a minimum mandatory sentence of 15 years to life in federal prison, a $250,000, and a term of 5 years of supervised release to follow incarceration.
Following a hearing held today, Ewing was denied bond on the federal charges and remanded to the custody of the United States Marshal to await further proceedings. Ewing’s next scheduled court appearance is December 4th at 10:30 a.m. for a final pre-trial conference at the United States District Courthouse in Benton. A trial date of December 15th at 9:00 a.m. has also been set.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Illinois State Police (District 19) with the assistance of the Grayville Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Virginia Beach Man Pleads Guilty to Production of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Michael John Baigert, Jr., 21, of Virginia Beach, Virginia, pled guilty today to four counts of production of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by Magistrate Judge Douglas Miller.
Baigert was indicted on September 10, 2014, by a federal grand jury on four counts of production of child pornography. The penalty for Production of Child Pornography is a mandatory term of 15 years with a maximum penalty of 30 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. Baigert will be sentenced on February 9, 2015, by U. S. District Court Judge Mark S. Davis.
In a statement of facts filed with the plea agreement, Baigert acknowledged that in August, 2013, he travelled from his home in Virginia Beach to York County, Va., to visit “Jane Doe 1” whom he met via an on-line messenger app called KIK. Baigert and “Jane Doe 1” entered a wooded area near her home where Baigert committed a number of sex acts on her. The victim reported to the York-Poquoson Sheriff’s Office that she had been sexually assaulted. Unbeknownst to the victim, Baigert recorded a portion of the sex acts on his iPhone. Detectives obtained a search warrant for the defendant’s home where they seized a number of items. Baigert admitted to detectives that he engaged in a number of sex acts with “Jane Doe 1” who he knew to be 14 or 15 years old. Further investigation revealed three other victims, age 16 or younger, with whom Baigert engaged in sexual activity. In each instance Baigert asked the victim if he could record their sexual activity and was told “no” each time. Following execution of the search warrant, numerous homemade videos depicting young females engaged in sexually explicit conduct were found on electronic devices recovered from Baigert’ s home. Baigert disputes that he asked any of the victims if he could record their sexual activity.
This case was investigated by the FBI’s Norfolk Division. Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. : 4:14cr55
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Used Car Salesman Sentenced to 15 Months in Federal Prison in Money Laundering Conspiracy; Will Forfeit Almost $12 MillionRead the Press Release
Memphis, TN – Wayne David McAlpin, Jr., 50, of Memphis, TN was sentenced yesterday by U.S. District Judge John T. Fowlkes, Jr. to serve 15 months in federal prison followed by three years of supervised release for his role in selling cars to drug traffickers in an effort to launder drug proceeds, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee; Brian K. Chambers, the Resident Agent in Charge of the DEA Memphis Resident Office; and Christopher A. Henry, Special Agent in Charge of the Nashville Field Office. There is no parole in the federal system.
McAlpin pled guilty on July 11, 2013 to one count of money laundering and one count of filing fraudulent documents with the Internal Revenue Service (IRS).
In addition to the prison sentence, McAlpin, Jr. and his co-defendants forfeited their interests in almost $12 million dollars in bank accounts, investment accounts and vehicles, including: a 2008 Bentley Continental GTC; a 2011 Audi A8; a 2009 Cadillac Escalade; and a 2011 Lexus GX460.
“While masking themselves as legitimate businessmen, Wayne McAlpin Jr. and his cohorts at Budget Auto Sales lined their pockets with excessive profits by helping drug dealers enjoy the lavish fruits of their criminal acts,” said U.S. Attorney Edward L. Stanton III. “McAlpin, a now twice convicted felon, will spend 15 months in a federal prison in addition to forfeiting millions of dollars of ill-gotten gains.”
This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
“Traffickers may be equipped with a multitude of sophisticated methods in which to hide their assets, but Drug Enforcement Administration’s (DEA) relentless pursuit to disrupt and destroy their drug trafficking activities prevailed in this case,” said Brian K. Chambers, the Resident Agent in Charge of the DEA Memphis Resident Office. “This investigation was a success because of the multi-level law enforcement cooperation.”
According to the agreed-upon statement of facts filed with the court during McAlpin, Jr.’s plea hearing, during the time in question, McAlpin, Jr. was president of Budget Auto Sales. This business was frequented by individuals engaged in criminal activity, including, but not limited to, illegal drug trafficking. The business sold multiple vehicles to drug traffickers, knowing they had previously had vehicles seized by law enforcement for transporting and concealing illegal drugs.
As part of the criminal conspiracy to conceal the fact that cars were being purchased with the proceeds of illegal drug trafficking, McAlpin, Jr. submitted IRS Form 8300s with false and misleading information. This form requires any car dealership to report all cash transactions of $10,000 or more. The individuals also titled vehicles in the names of other people, as part of an effort to hide the transactions from law enforcement.
"The role of the IRS CI in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations," stated Christopher A. Henry, Special Agent in Charge of the Nashville Field Office. “One of the government’s most powerful weapons is the ability to seize and forfeit the assets associated with narcotics-related crime. IRS Criminal Investigation is proud to work with our law enforcement partners by lending our expertise in these complex financial investigations."
This crime was investigated by the Drug Enforcement Administration, IRS Criminal Investigations, the Memphis Police Department, and the Shelby County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Chris Cotten, Daniel French, and Jerry Kitchen on behalf of the government.
United States Files Complaint in False Claims Act Lawsuit Alleging Defense Contractors Knowingly Overcharged the Navy on Aircraft Maintenance ContractRead the Press Release
The Department of Justice announced today that it has filed its complaint in intervention in a case against defendants Sikorsky Aircraft Corporation and two of its subsidiaries, Sikorsky Support Services Inc. and Derco Aerospace Inc., for violating the False Claims Act. Sikorsky Aircraft Corporation is a wholly owned subsidiary of United Technologies Corporation, with headquarters in Stratford, Connecticut.
The government’s complaint alleges that Sikorsky Aircraft Corporation approved an illegal cost-plus-a-percentage-of-cost subcontract between Sikorsky Support Services Inc., and Derco Aerospace. A cost-plus-a-percentage-of-cost contract is one where the cost of performance is unknown in advance and compensation is determined based on the cost of performance plus an agreed-to percentage of such costs. Such contracts are prohibited because they give contractors no incentive to control the cost of performance. The complaint further alleges the defendants used this illegal subcontract to overcharge the Navy on parts and materials that were used to maintain Navy aircraft.
“Those who contract with the federal government and accept taxpayer dollars, must follow the rules,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Today’s complaint demonstrates, once again, that the Department of Justice will not tolerate contractors who engage in schemes to defraud the armed forces or any other agency of the United States.”
“The claims in the civil complaint that we have filed reflect our focused and purposeful investigative work in identifying and seeking remedies for false claims in government contracting,” said U.S. Attorney James L. Santelle for the Eastern District of Wisconsin. “Under the authority of the False Claims Act, we pursue fraud of this sort to ensure that taxpayer dollars are spent lawfully and that overcharges and other types of contracting misconduct are addressed.”
The complaint was filed in a case brought under the qui tam provisions of the False Claims Act by Mary J. Patzer, a former employee of Derco. Under the False Claims Act, a private citizen, called a “relator,” may bring suit on behalf of the United States and share in any recovery. The government may intervene in the case, as the government has done here. The False Claims Act allows the government to recover treble damages and penalties from those who violate it.
The case is being handled jointly by the Civil Division and the U.S. Attorney’s Office for the Eastern District of Wisconsin.
The case is captioned United States ex rel. Patzer v. United Technologies Corporation, et al., No. 11-C-560 (E.D. Wis.). The claims made in the complaint are allegations only, and there has been no determination of liability.
Two New Orleans Men Plead Guilty to Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RYAN DAVIN MANNING, age 37, and DANIEL LEVI MORRIS, age 34, both residents of New Orleans, pled guilty as charged on October 15, 2014, to conspiracy to distribute and possession with Intent to Distribute heroin.
U.S. District Judge Kurt D. Engelhardt set sentencing on December 10, 2014.
This investigation targeted a drug trafficking organization that operated in the River Gardens Apartment area of New Orleans.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorney J. Collin Sims is in charge of the prosecution.
(Download Factual Basis - Manning )
(Download Factual Basis - Morris )
Two Haitian Men Sentenced to 57 Months in Prison for Alien Smuggling Conspiracy That Killed EightRead the Press Release
St. Thomas, USVI – On Thursday, October 16, 2014, District Court Judge Curtis V. Gomez sentenced both Dieuseul Mompremier, 43, also known as “Jomei,” and Lamorthe Delva, 46, to 57 months imprisonment, five years supervised release and a $100 special assessment for their roles in a conspiracy to smuggle illegal aliens into the United States, which resulted in the death of eight individuals, United States Attorney Ronald W. Sharpe and Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Special Agent in Charge Angel Melendez announced. Edourre, who was arrested and prosecuted in the British Virgin Islands (BVI) for manslaughter, is currently serving a 10-year sentence. Mompremier and Delva, who have been incarcerated since their arrests on April 11, 2014, were remanded to the custody of the U.S. Marshals Service to begin serving their sentences.
Delva and Mompremier each pleaded guilty to Count One of an indictment charging them with alien smuggling. Delva pleaded guilty on May 23, 2014, and Mompremier pleaded guilty on June 19, 2014. According to court records, in December 2010, Mompremier, Delva, and Roro Edourre, 46, conspired with each other and additional co-conspirators to smuggle illegal aliens from St. Maarten, Netherlands Antilles, to St. John, U.S. Virgin Islands. On December 5, 2010, Edourre was the captain on the vessel “Jesus La,” with approximately 33 passengers, most of them Haitian nationals, including men, women and children, when the vessel traveled from St. Maarten, Netherlands Antilles, to the U.S. Virgin Islands. While Edourre was transporting the illegal aliens on the vessel, Mompremier and Delva waited in the U.S. Virgin Islands to pick up and transport the aliens upon their arrival in St. John. The U.S. Coast Guard spotted the vessel carrying Edourre and his passengers, and attempted to intercept it. However, Edourre attempted to evade the Coast Guard. While attempting to evade the Coast Guard, the “Jesus La” ran aground and sank near Tortola, BVI, resulting in the death of at least eight individuals, including four children.
United States Attorney Sharpe commended the investigative work of ICE, HSI, and Assistant U.S. Attorney Kim L. Chisholm, who prosecuted this case.
Two Former Rabobank Traders Indicted for Alleged Manipulation of U.S. Dollar, Yen Libor Interest RatesRead the Press Release
Two former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) derivative traders – including the bank’s former Global Head of Liquidity & Finance in London – have been charged in a superseding indictment for their alleged roles in a scheme to manipulate the U.S. Dollar (USD) and Yen London InterBank Offered Rate (LIBOR), a benchmark interest rate to which trillions of dollars in interest rate contracts were tied, the Justice Department announced today. Six former Rabobank employees have now been charged in the Rabobank LIBOR investigation.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement.
Earlier today, a federal grand jury in the Southern District of New York returned a superseding indictment charging Anthony Allen, 43, of Hertsfordshire, England; and Anthony Conti, 45, of Essex, England, with conspiracy to commit wire fraud and bank fraud and with substantive counts of wire fraud for their participation in a scheme to manipulate the USD and Yen LIBOR rate in a manner that benefitted their own or Rabobank’s financial positions in derivatives that were linked to those benchmarks.
The indictment also charges Tetsuya Motomura, 42, of Tokyo, Japan, and Paul Thompson, 48, of Dalkeith, Australia, who were charged in a prior indictment with Paul Robson, a former Rabobank LIBOR submitter. In addition to adding as defendants Allen and Conti, the superseding indictment alleges a broader conspiracy to manipulate both the USD LIBOR and the Yen LIBOR.
Robson and Takayuki Yagami, a former Rabobank derivatives trader, each pleaded guilty earlier this year to one count of conspiracy in connection with their roles in the scheme.
“Today, we have charged two more members of the financial industry with influencing Dollar LIBOR and Yen LIBOR to gain an illegal advantage in the market, unfairly benefitting their own trading positions in financial derivatives,” said Assistant Attorney General Caldwell. “LIBOR is a key benchmark interest rate that is relied upon to be free of bias and self-dealing, but the conduct of these traders was as galling as it was greedy. Today’s charges are just the latest installment in the Justice Department’s industry-wide investigation of financial institutions and individuals who manipulated global financial rates.”
“With today’s charges against Messrs. Allen and Conti, we continue to reinforce our message to the financial community that we will not allow the individuals who perpetrate these crimes to hide behind corporate walls,” said Deputy Assistant Attorney General Snyder. “This superseding indictment, with its charges against Mr. Allen, makes an especially strong statement to managers in financial institutions who devise schemes to undermine fair and open markets but leave the implementation – and often the blame – with their subordinates.”
“With today’s indictments the FBI’s investigation into Rabobank’s manipulation of LIBOR benchmark rates expands in scope to include the U.S. Dollar,” said Assistant Director in Charge McCabe. “I would like to thank the special agents, forensic accountants, and analysts, as well as the prosecutors who have worked to identify and stop those who hide behind complex corporate and securities fraud schemes.”
According to the superseding indictment, at the time relevant to the charges, LIBOR was an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believed they would be charged if borrowing from other banks. LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London. LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for U.S. Dollar and Yen currency for a specific maturity was the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.
LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products.
Rabobank entered into a deferred prosecution agreement with the Department of Justice on Oct. 29, 2013, and agreed to pay a $325 million penalty to resolve violations arising from Rabobank’s LIBOR submissions.
According to allegations in the superseding indictment, Allen, who was Rabobank’s Global Head of Liquidity & Finance and the manager of the company’s money market desk in London, put in place a system in which Rabobank employees who traded in derivative products linked to USD and Yen LIBOR regularly communicated their trading positions to Rabobank’s LIBOR submitters, who submitted Rabobank’s LIBOR contributions to the BBA. Motomura, Thompson, Yagami and other traders entered into derivative contracts containing USD or Yen LIBOR as a price component and they asked Conti, Robson, Allen and others to submit LIBOR contributions consistent with the traders’ or the bank’s financial interests, to benefit the traders’ or the banks’ trading positions. Conti, who was based in London and Utrecht, Netherlands, served as Rabobank’s primary USD LIBOR submitter and at times acted as Rabobank’s back-up Yen LIBOR submitter. Robson, who was based in London, served as Rabobank’s primary submitter of Yen LIBOR. Allen, in addition to supervising the desk in London and money market trading worldwide, occasionally acted as Rabobank’s backup USD and Yen LIBOR submitter. Allen also served on a BBA Steering Committee that provided the BBA with advice on the calculation of LIBOR as well as recommendations concerning which financial institutions should sit on the LIBOR contributor panel.
The charges in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The investigation is being conducted by special agents, forensic accountants and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by Senior Litigation Counsel Carol L. Sipperly and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antitrust Division. The Criminal Division’s Office of International Affairs has provided assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the LIBOR investigation. The Securities and Exchange Commission also has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama 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. For more information about the task force visit: www.stopfraud.com.
Two Defendants Charged in “Email Takeover” ScamRead the Press Release
SAN JOSE – Bernard Ogie Oretekor, a/k/a “Emmanuel Libs,” and Chantale Petit-Frere were indicted by a federal grand jury yesterday for stealing money from multiple victims through an email takeover scam and “Nigerian Fraud” scheme, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
Oretekor, 43, of Ellenwood, Ga., and Petit-Frere, 47, of Brooklyn, N.Y., were charged with conspiracy to commit wire fraud and six substantive counts of wire fraud. Oretekor was also charged with seven counts of money laundering. According to the indictment, the defendants received funds as a result of an email takeover scam, in which the victims were sent so-called “phishing” emails to capture their usernames and account passwords. The phishing emails were designed to trick victims into clicking on a link that delivered them to a fraudulent website created to look like its legitimate counterpart. When a victim logged into the fraudulent website, her username and password for that account were captured, allowing an imposter to access the victim’s account, review its contents, and send and receive e-mails posing as the victim.
According to the indictment, the fraud began when an imposter, who had gained access to the victim’s email accounts through a phishing email, sent an email from the victim’s Yahoo or Google email account, posing as the victim and directing his or her bookkeeper, financial advisor, or bank officer to transfer funds from the victim’s account. The imposter also set up filters in the victim’s account so that any emails from those persons would go directly to the victim’s “trash” folder. The filters ensured that the victim would not likely see any emails pertaining to the fraudulent transactions. The indictment details how the email takeovers resulted in unauthorized wire transfers of over $500,000 from four victims, and an additional $330,000 in attempted transfers that were identified as fraudulent in time to be reversed.
The indictment further alleges that the defendants used a “Nigerian Scam” scheme against a father and son from New Mexico, stealing over $200,000 from them. The “Nigerian Scam” refers generally to a fraud in which the perpetrator, often posing as a current or former high-ranking official from a foreign government, convinces a victim that he will receive a substantial sum of money in return for paying certain “taxes” or “fees” needed to release that money. In this case, according to the indictment, the defendants represented that they were diplomats attached to the South African embassy and that there was a “consignment box” containing $19M that was “tied up in Customs” but that would be released, and the proceeds split, if the victims paid the necessary “fees” and “taxes.
The indictment further alleges that after the victims in New Mexico ran out of money, the defendants converted them into unwitting “money mules” – a term that refers to persons who receive fraudulent funds into their bank account and distribute them as directed by the fraudsters. The indictment also describes how the defendants were eventually introduced to an undercover officer, who posed as the “cousin” of the New Mexico victims and, through this ruse, as able to deal with the defendants directly.
The defendants were arrested on Oct. 7, 2014, pursuant to arrest warrants issued by the Honorable Paul S. Grewal, United States Magistrate Judge. Oretekor was arrested in Ellenwood, Ga., and Petit-Frere in Brooklyn, N.Y. Both remain in custody.
The maximum penalty for conspiracy to commit wire fraud and wire fraud, in violation of 18 U.S.C. §§ 1349 and 1343, respectively, is 30 years in prison and a $1,000,000 fine. The maximum penalty for money laundering, in violation of 18 U.S.C. § 1956(a)(1)(B)(i), is 20 years in prison and a $500,000 fine.
The prosecution is the result of an investigation initiated by the Regional Enforcement Allied Computer Team (REACT) Task Force in San Jose. REACT partnered with IRS Criminal Investigation – Oakland Field Office to expand the scope of the investigation. The United States Secret Service – Atlanta Field Office, as well as U.S. ICE HSI – New York (Brooklyn), also provided valuable support. Assistant United States Attorney David R. Callaway is prosecuting the case with the assistance of Elise Etter.
Please note that an indictment contains only allegations. As with all defendants, Bernard Ogie Oretekor and Chantale Petit-Frere must be presumed innocent unless and until proven guilty.
(Oretekor indictment )
Two Brothers Plead Guilty to $1.2 Million K2 Distribution at Lebanon StoreRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two brothers have pleaded guilty to a mail fraud scheme that involved the distribution of more than $1.2 million of synthetic marijuana, commonly referred to as K2, from a store in Lebanon, Mo.
Eric Scott Reynolds, 32, of Lebanon, Mo., pleaded guilty before U.S. District Judge Beth Phillips on Wednesday, Oct. 15, 2014, to conspiracy to commit mail fraud and conspiracy to commit money laundering. His brother, Stephen Brian Reynolds, 35, of Eldridge, Mo., pleaded guilty on Aug. 15, 2014, to his role in the mail fraud conspiracy and to one count of money laundering.
Stephen Reynolds is the owner of Lucky’s Novelties in Lebanon, which distributed K2. Eric Reynolds is employed at Lucky’s Novelties.
By pleading guilty, Eric and Stephen Reynolds admitted that they participated in a conspiracy to commit mail fraud from March 1, 2011, to Dec. 11, 2012. They defrauded the Food and Drug Administration and the public by using mail deliveries in a conspiracy to distribute several products that were labeled as “incense” or “potpourri” and “not for human consumption,” when in reality these substances were synthetic marijuana intended for human consumption as a drug.
Between Sept. 15, 2011, and July 25, 2012, Eric and Stephen Reynolds deposited $1,245,761 in proceeds from the distribution of K2 into bank accounts and a safety deposit box. Based upon DEA undercover purchases, they charged approximately $1 for every 300 mg of K2. Therefore, they distributed approximately 373 kilograms of K2.
Eric and Stephen Reynolds must forfeit to the government $1,167,990, which they obtained in proceeds from the distribution of K2, real estate in Eldridge, funds in bank accounts, approximately $128,000 that was seized from Stephen Reynolds’s residence and a safe deposit box, a 2012 Jeep Grand Cherokee, a 2007 Ducati 1098 motorcycle, three pistols, two rifles and a shotgun.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigations, the Laclede County, Mo., Sheriff’s Department, the Lebanon, Mo., Police Department and the Lake Area Narcotics Enforcement Group (LANEG).
Ten Additional Alleged Members of the Almighty Imperial Gangsters Nation Gang IndictedRead the Press Release
Ten alleged members of the violent Almighty Imperial Gangsters Nation gang have been indicted by a federal grand jury in the Southern District of Florida for their roles in various murders in Miami, Chicago, and East Chicago. Fifteen alleged members of the gang have now been charged by the Justice Department in this case.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Robert J. Holley of the FBI’s Chicago Field Office, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
The second superseding indictment returned by a federal grand jury on Oct. 9, 2014, and unsealed today, charges Robert Martinez, aka “Trap,” 20, of Miami, along with Rogelio Perez, aka “Popeye,” 40, Eddie Camacho, aka “NeNe,” 35, Miguel Pedraza, aka “Fuzzy,” 33, Ryan Perez, aka “Lil Dk,” 32, Carlos Mena, aka “Rollo,” 33, Carlos Gomez, aka “Lokes,” 35, and Guillermo Sinisterra, aka “Memo,” 26, all of Chicago, with conspiracy to participate in racketeering activity, including murder. Piero Benitez, aka “Bam Bam,” 27, of Skokie, Illinois, was charged with murder in aid of racketeering, and Santiago Salcedo, aka “Chino,” 25, of Miami, was charged with conspiracy to commit murder in aid of racketeering. Alleged fellow gang members Jose Herrera, aka “Spyro,” 27, Leonel Carrera, aka “Leo,” 25, Victor Lopez, aka “Magic,” Ramon Madruga, aka “Porky” 28, and Alex Enrique Somarriba, aka “A-Rock,” 28, all of Chicago, were previously charged in the superseding indictment unsealed in this case on Aug. 4, 2014, and remain charged in the second superseding indictment.
According to the second superseding indictment, all fifteen defendants are members of the Almighty Imperial Gangsters Nation, which is a nationally-known organized street gang that originated in the near northwest side of Chicago and spread to other regions of the United States, including South Florida. Members and associates of the Almighty Imperial Gangsters Nation allegedly engaged in acts of violence, including murder, attempted murder, battery, aggravated battery, and aggravated assault, as well as narcotics distribution and other criminal activities. Specifically, the indictment charges that the gang is responsible for twelve murders in Miami, Chicago and East Chicago, Indiana between 1985 and 2011, including the murder of a state prosecution witness whose cooperation with law enforcement ultimately led to the conviction of the gang’s South Florida leader, Victor Lopez, on cocaine distribution charges.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI field offices in Chicago, Miami, and Merrillville, Indiana, and the Bureau of Alcohol, Tobacco, Firearms and Explosives field office in Merrillville, Indiana, along with the Miami-Dade Police Department, the City of Miami Police Department, the Chicago Police Department, the Franklin Park, Illinois, Police Department, and the East Chicago, Indiana Police Department. The Florida Department of Corrections and the Broward County Sheriff’s Office also assisted with this case.
The case is being prosecuted by Joseph A. Cooley and Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section, as well as the Forfeiture Section of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of the U.S. Attorneys’ Offices for the Northern District of Indiana and the Northern District of Illinois, as well as the State Attorneys’ Offices for Miami-Dade and Broward Counties in Florida and Cook County in Illinois.
Ten Additional Alleged Members of the Almighty Imperial Gangsters Nation Gang IndictedRead the Press Release
Gang Allegedly Responsible For Multiple Murders in Illinois, Indiana, and Florida
Ten alleged members of the violent Almighty Imperial Gangsters Nation gang have been indicted by a federal grand jury in the Southern District of Florida for their roles in various murders in Miami, Chicago, and East Chicago. Fifteen alleged members of the gang have now been charged by the Justice Department in this case.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Robert J. Holley of the FBI’s Chicago Field Office, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
The second superseding indictment returned by a federal grand jury on Oct. 9, 2014, and unsealed today, charges Robert Martinez, aka “Trap,” 20, of Miami, along with Rogelio Perez, aka “Popeye,” 40, Eddie Camacho, aka “NeNe,” 35, Miguel Pedraza, aka “Fuzzy,” 33, Ryan Perez, aka “Lil Dk,” 32, Carlos Mena, aka “Rollo,” 33, Carlos Gomez, aka “Lokes,” 35, and Guillermo Sinisterra, aka “Memo,” 26, all of Chicago, with conspiracy to participate in racketeering activity, including murder. Piero Benitez, aka “Bam Bam,” 27, of Skokie, Illinois, was charged with murder in aid of racketeering, and Santiago Salcedo, aka “Chino,” 25, of Miami, was charged with conspiracy to commit murder in aid of racketeering. Alleged fellow gang members Jose Herrera, aka “Spyro,” 27, Leonel Carrera, aka “Leo,” 25, Victor Lopez, aka “Magic,” Ramon Madruga, aka “Porky” 28, and Alex Enrique Somarriba, aka “A-Rock,” 28, all of Chicago, were previously charged in the superseding indictment unsealed in this case on Aug. 4, 2014, and remain charged in the second superseding indictment.
According to the second superseding indictment, all fifteen defendants are members of the Almighty Imperial Gangsters Nation, which is a nationally-known organized street gang that originated in the near northwest side of Chicago and spread to other regions of the United States, including South Florida. Members and associates of the Almighty Imperial Gangsters Nation allegedly engaged in acts of violence, including murder, attempted murder, battery, aggravated battery, and aggravated assault, as well as narcotics distribution and other criminal activities. Specifically, the indictment charges that the gang is responsible for twelve murders in Miami, Chicago and East Chicago, Indiana between 1985 and 2011, including the murder of a state prosecution witness whose cooperation with law enforcement ultimately led to the conviction of the gang’s South Florida leader, Victor Lopez, on cocaine distribution charges.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI field offices in Chicago, Miami, and Merrillville, Indiana, and the Bureau of Alcohol, Tobacco, Firearms and Explosives field office in Merrillville, Indiana, along with the Miami-Dade Police Department, the City of Miami Police Department, the Chicago Police Department, the Franklin Park, Illinois, Police Department, and the East Chicago, Indiana Police Department. The Florida Department of Corrections and the Broward County Sheriff’s Office also assisted with this case.
The case is being prosecuted by Joseph A. Cooley and Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section, as well as the Forfeiture Section of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of the U.S. Attorneys’ Offices for the Northern District of Indiana and the Northern District of Illinois, as well as the State Attorneys’ Offices for Miami-Dade and Broward Counties in Florida and Cook County in Illinois.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Sentencings for October 9 - October 16, 2014Read the Press Release
Naomi Oakley-Bonner, 36 of Douglas, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 16, 2014, for being a felon in possession of a firearm. Oakley-Bonner was arrested in Douglas, Wyoming. She received 21 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Tyrone Carey, 38, of Douglas, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 15, 2014, for being a felon in possession of a firearm. Carey was arrested in Douglas, Wyoming. He received 51 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Nicolas Counts, 28, of Bar Nunn, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 15, 2014, for aiding and abetting mail fraud. He received 60 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rogaciano Escalante, aka Rogaciano Escalante-Rodriguez, 53, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 15, 2014, for illegal re-entry of a previously deported alien into the United States. Escalante was arrested in Pinedale, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jose Perez-Cortez, 26, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 15, 2014, for illegal re-entry of a previously deported alien into the United States. Perez-Cortez was arrested in Jackson, Wyoming. He received time served, plus ten days,
was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.Kenneth Shannon Miller, 43, of Green River, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 15, 2014, for possession with intent to distribute 500 grams or more of methamphetamine. Miller was arrested in Casper, Wyoming. He received 188 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Casper Police Department, the Natrona County Sheriff’s office and the Wyoming Division of Criminal Investigation.
Kyle James Tillia, 25, of Harrisville, Pennsylvania, was sentenced by Federal District Court Judge Alan B. Johnson on October 14, 2014, for possession with intent to distribute less than 50 kilograms of marijuana and aiding and abetting. Tillia was arrested near Green River, Wyoming. He received 31 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Holly Dawn Hatch, 35, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 14, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of methamphetamine. Hatch was arrested in Gillette, Wyoming. She received 80 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $900.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Shawn Richard Nikkila, 31, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 14, 2014, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine. Nikkila was arrested in Gillette, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to a $100.00 special assessment and a $900.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Joseph D. Stewart, 25, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 14, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of methamphetamine. Stewart was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Thomas Felix Aflague, Jr., 36, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 14, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of methamphetamine. Aflague was arrested in Cheyenne, Wyoming. He received 200 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a$1,400.00 fine. This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cody D. Nace, 30, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 14, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of methamphetamine. Nace was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Michael Anthony Antonini IV, 21, of New Castle, Pennsylvania, was sentenced by Federal District Court Judge Alan B. Johnson on October 9, 2014, on one count of possession with intent to distribute methamphetamine and aiding and abetting and one count of possession with intent to distribute less than 50 kilograms of marijuana and aiding and abetting. Antonini was arrested near Green River, Wyoming. He received 31 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Second Superseding Indictment Returned<br /> Against Fnd Gang MembersRead the Press Release
U.S. Attorney Kenneth A. Polite, Jr., announced the return of a second superseding indictment charging members of the Frenchmen/Derbigny gang, or “FnD,” with violating federal drug and firearm laws. A federal grand jury returned the second superseding indictment today against TRAVIS SCOTT, a/k/a “Trap” or “Slim,” age 30; STANLEY SCOTT, a/k/a “Stizzle,” age 22; SHAWN SCOTT, a/k/a “Shizzle,” age 25; AKEIN SCOTT, a/k/a “Keemy,” age 21; JEREMIAH JACKSON, a/k/a “Rocky,” age 24; BRIAN BENSON, a/k/a “Dub” or “Dubba,” age 30; and CRYSTAL SCOTT, a/k/a “Chris,” age 33. All defendants are residents of New Orleans.
The second superseding indictment contains all of the charges of the prior indictment, including the shooting perpetrated by SHAWN SCOTT and AKEIN SCOTT on May 12, 2013. The indictment adds four additional charges of discharging firearms in furtherance of drug trafficking. These charges include a March 22, 2012, shooting perpetrated by STANLEY SCOTT, AKEIN SCOTT, and JEREMIAH JACKSON; a March 25, 2012, shooting committed by TRAVIS SCOTT, STANLEY SCOTT, and AKEIN SCOTT; a July 16, 2012, shooting by STANLEY SCOTT and AKEIN SCOTT; and an August 4, 2012, shooting by STANLEY SCOTT, SHAWN SCOTT, and AKEIN SCOTT. The indictment also alleges that JEREMIAH JACKSON possessed a firearm in furtherance of drug trafficking on August 20, 2013. All defendants are presently in custody pending trial.
If convicted of any of the additional shootings in furtherance of drug trafficking, the defendants face a mandatory sentence of 10 years of imprisonment to be served consecutive with any other sentence, a $250,000.00 fine, and five years of supervised release. For the additional charge of possession of a firearm in furtherance of a drug trafficking crime, JEREMIAH JACKSON could receive a sentence of 5 years of imprisonment to be served consecutive with any other sentence, a $250,000.00 fine, and five years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG). As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The prosecution is being handled by Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office.
(Download Superseding Indictment )
Rutland Man Sentenced to over Seven Years Imprisonment for Federal Conviction for Heroin Distribution and Unlawful Firearm PossessionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Chief Judge Christina Reiss, of the United States District Court, sentenced Joshua Minix (a.k.a. “Face”), 38, of Rutland, Vermont to 87 months imprisonment for conspiring to distribute heroin in the Rutland area and possessing a firearm while unlawfully using controlled substances. Court records indicate that his sentencing was also based on his distribution of Oxycontin pills and cocaine powder. In addition, Judge Reiss sentenced Minix to five years supervised release, to be served after he completes his jail sentence. She also recommended to the Bureau of Prisons that Minix participate in the 500-hour substance abuse program for federal inmates.
Minix previously pled guilty to conspiring to distribute heroin in the Rutland area in 2013-13 and unlawful possession of a firearm by a drug user. The Pre-Sentence Report found that Minix was involved in distributing at least 380 grams of heroin, 18,000 Oxycontin (30 mg) pills, and 45 grams of crack cocaine. The defendant distributed drugs while living on Park Avenue in Rutland City. Judge Reiss recently sentenced Terrence Chenault, another Park Avenue resident, to 87 months in prison for distributing heroin and cocaine base. Minix received enhancements to his guideline range for obstructing justice, possessing firearms, and armed robberies of other drug dealers. The Court found that the Minix had obstructed justice by drafting two false affidavits for two witnesses to his unlawful possession of a firearm in an attempt to get their subpoenas to the grand jury quashed.The Government stated in its sentencing memorandum that “heroin and other opiates are wreaking havoc in Rutland and many other Vermont communities” and “a strong message from the Court needs to be continually sent to narcotic dealers that spreading their poison in the community will result in a lengthy jail sentence.” The Government stated that a significant sentence was also warranted here to protect the community from the defendant because the defendant had shown that he returns to drug dealing whenever he is released from jail.
The United States is represented by Assistant U.S. Attorney Joseph Perella while the defendant is represented by William Kraham, Esq. This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Vermont Drug Task Force, the Drug Enforcement Administration, and the Federal Bureau of Investigation.Romanian Nationals Sentenced for Their Participation in ATM Skimming SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Gheorghe Adrian Lupu, 47, Nicolai Ceausescu, 39, Claudiu Florin Iordache, 23, Victor Ticus, 45, Marinel Aurelian Capra, 32, and Florian Laurentiu Nicola, 40, were sentenced yesterday for conspiracy to commit bank fraud. The defendants are Romanian nationals without known permanent addresses in the United States. Before their arrests, they were living in Miami. Lupu was sentenced to 33 months in prison, Ceausescu was sentenced to 78 months in prison, Iordache was sentenced to 57 monthsin prison, Ticus was sentenced to 82 months in prison, Capra was sentenced to 63 months in prison, and Nicola was sentenced to 74 months in prison.
According to the defendants’ admissions at their plea hearings and the parties’ submissions at sentencing, the defendants engaged in a scheme known as ATM “skimming.” The defendants operated this scheme by placing skimming devices and pinhole cameras on ATMs. The skimming devices fit over the ATMs’ card slots, such that ATM cards inserted into an ATM first passed through the skimming device. The skimming devices looked like parts of the ATMs themselves, so that customers were not aware that a device had been attached to the ATMs. The skimming devices allowed the ATMs to function properly, but first recorded the data encoded on the bank customers’ ATM cards. At the same time, the pinhole cameras surreptitiously recorded the customers’ PINs. The defendants then made counterfeit ATM cards by re-encoding the magnetic strips on other cards, such as gift cards. Using the counterfeit cards and the recorded PINs, the defendants made unauthorized withdrawals from the customers’ bank accounts. In total, the defendants installed skimming devices on ATMs on 53 occasions known to the government, after which they withdrew $340,584 from 314 accounts.
A seventh defendant, Laurentiu Grimberg, was previously sentenced to 63 months in prison.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the FBI. This case was prosecuted by Assistant U.S. Attorney Marc Osborne.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Romanian Man Sentenced for Role in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
A Romanian man was sentenced today to 24 months in prison for his role in receiving and sending overseas approximately $320,000 in illicit proceeds derived from an international fraud scheme involving online marketplace websites.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee made the announcement. U.S. District Judge Aleta A. Trauger of the Middle District of Tennessee imposed the sentence.
Alexandru Stanciu, 36, of Bucharest, Romania, was indicted by a federal grand jury in August 2013 and pleaded guilty to one count of conspiracy to commit bank and wire fraud in February 2014. In addition to his prison term, Stanciu was ordered to pay $305,106 in restitution.
According to statements at his plea hearing, Stanciu’s co-conspirators fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, co-conspirators responded with emails directing the victims to wire payments to specified bank accounts. These bank accounts were opened by Stanciu, using false identities and fraudulent documents, including counterfeit passports, between December 2011 and July 2013. In total, 17 victims sent approximately $321,389 to accounts opened by Stanciu. Stanciu subsequently sent the bulk of the money to co-conspirators located overseas.
The case is being investigated by the FBI and the Tennessee Bureau of Investigation and prosecuted by Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee.
Rollin 60s Cripts Gang Member, Quenshey Mitchell, Sentenced to Life in Prison for Heroin Conspiracy and Obstruction of Justice Involving Murder of A Federal WitnessRead the Press Release
U.S. Attorney Kenneth A. Polite announced that QUENSHEY MITCHELL, a/k/a “Ripper,” “Baby Ripper,” and “Q”, age 37, from Los Angeles, California, was sentenced today to life imprisonment for violating federal heroin trafficking and obstruction of justice laws. MITCHELL is a member of the Rollin 60s Crips Gang based in Los Angeles, California.
Following a four-day trial that concluded on January 9, 2014, a federal jury convicted MITCHELL of all six counts in the superseding indictment, specifically: one count of conspiracy to distribute heroin; two counts of conspiracy to obstruct justice through murder; two counts of obstruction of justice through murder; and one count of obstruction of justice. The trial evidence showed that MITCHELL was the Los Angeles source of supply of multiple kilograms of heroin being transported to New Orleans by female couriers. Cristina S. Williams, who had previously been charged in the Eastern District of Louisiana for her role in transporting heroin, was murdered in Los Angeles on July 29, 2010, as the Drug Enforcement Administration’s investigation progressed to identify the leaders of the heroin conspiracy. MITCHELL was first indicted in New Orleans for his role in the heroin conspiracy, and later, for his role in Ms. Williams’s murder.
U. S. Attorney Polite stated, “Quenshey Mitchell was willing to do anything to protect his heroin trafficking enterprise, including taking the life of a potential witness against him. Today’s sentence ensures that his drug dealing and violence will come to an end, as he will spend the rest of his life behind bars.”
U.S. Attorney Polite praised the work of the Drug Enforcement Administration (“DEA”) and Detectives with the Los Angeles Police Department (“LAPD”) in investigating this matter. Assistant United States Attorneys William J. Quinlan, Jr. and Harry W. McSherry are in charge of the prosecution.
Raleigh Man Pleads Guilty to Conspiring to Provide Material Support for TerrorismRead the Press Release
Akba Jihad Jordan, 22, of Raleigh, North Carolina, pleaded guilty before United States Magistrate Judge Robert B. Jones to conspiracy to provide material support to terrorists. Jordan and co-defendant Avin Marsalis Brown, 21, also of Raleigh, were arrested on March 19, 2014, and charged initially in a criminal complaint. On April 1, 2014, a federal grand jury returned an indictment charging Jordan and Brown with conspiring to provide material support to terrorists.
United States Attorney Thomas G. Walker stated, “This investigation is a sober reminder that we must remain vigilant in our efforts to prosecute extremists who conspire to provide material support to foreign terrorist organizations.”
“Akba Jordan turned his back on his own country and was willing to fight side by side with terrorist groups in Yemen and Syria who wish to do us harm,” said John Strong, Special Agent in Charge of the FBI in North Carolina. “American citizens who offer support to terrorist organizations pose a grave threat to our national security and will face serious consequences for their actions.”
As set forth in the affidavit supporting the complaint, Brown initiated contact online with an undercover employee of the Federal Bureau of Investigation (FBI). Brown requested assistance in traveling overseas for “fisabilillah” – a phrase commonly utilized by Islamic Extremists to refer to joining extremist groups in violence overseas. Subsequently, both Brown and Jordan engaged in numerous discussions with an FBI confidential source in which they expressed a desire to travel overseas to join certain groups in fighting the “kuffar” (non-Muslims) and “munafiq” (Muslims considered to be hypocrites), primarily in either Syria or Yemen. These groups included al-Qaeda in the Arabian Peninsula (AQAP), the Islamic State of Iraq and Sham (ISIS), and jabhat al-Nusrah (JAN). They also talked frequently about weapons and the use of weapons in fighting the kuffar, both overseas and in the United States. Jordan specifically discussed with Brown the weapons he had in his possession, including an AK-47, and described how he would not hesitate to use them. The affidavit describes a meeting at Jordan’s apartment on Dec. 30, 2013, during which Jordan showed Brown how to break down the AK-47.
On March 19, 2014, Brown was arrested at Raleigh Durham International Airport prior to boarding a flight with a final destination in Turkey. Brown stated in an interview that he intended to travel from Turkey into Syria. Once overseas, Brown intended to meet with a member of ISIS whom he had befriended online. Once established, and after Jordan had obtained his own passport and enough funds to purchase a ticket, Brown could then assist Jordan in entering Syria from Turkey to additionally join Brown.
Jordan, who had not yet obtained a passport, was also arrested on March 19. Jordan admitted that he had made an appointment to obtain a passport so that so that he could go to Syria and fight. A search warrant executed that day at Jordan’s apartment recovered the AK-47 and several other weapons. On Aug.12, 2014, Brown pleaded guilty to the indictment. His sentencing is currently set for Nov. 6, 2014.
Investigation of this case was conducted by the Federal Bureau of Investigation, Charlotte Division, Resident Agency Joint Terrorism Task Force (JTTF). The Raleigh JTTF consists of the following agencies: FBI, DHS-H.S.I., Raleigh Police Department, Durham Police Department, Cary Police Department, NC State Bureau of Investigation, and the NC State Highway Patrol. The prosecution is being handled by Assistant United States Attorney Jason Kellhofer and Trial Attorney Michael Dittoe of the Counterterrorism Section in the Justice Department’s National Security Division.
News releases are available on the U.S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.
Raleigh Man Pleads Guilty to Conspiring to Provide Material Support for TerrorismRead the Press Release
WASHINGTON—Akba Jihad Jordan, 22 years old, of Raleigh, North Carolina, pled guilty before United States Magistrate Judge Robert B. Jones to conspiracy to provide material support to terrorists in violation of Title 18, United States Code, Section 2339A. Jordan and co-defendant Avin Marsalis Brown, 21 years old, also from Raleigh, were arrested on March 19, 2014 and charged initially in a criminal complaint. On April 1, 2014, a federal grand jury returned an Indictment charging Jordan and Brown with conspiring to provide material support to terrorists.
United States Attorney Thomas G. Walker stated, “This investigation is a sober reminder that we must remain vigilant in our efforts to prosecute extremists who conspire to provide material support to foreign terrorist organizations.”
“Akba Jordan turned his back on his own country and was willing to fight side by side with terrorist groups in Yemen and Syria who wish to do us harm. American citizens who offer support to terrorist organizations pose a grave threat to our national security and will face serious consequences for their actions,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
As set forth in the affidavit supporting the complaint, Brown initiated contact online with an undercover employee of the Federal Bureau of Investigation (FBI). Brown requested assistance in traveling overseas for in order to join extremist groups engaged in violence overseas. Subsequently, both Brown and Jordan engaged in numerous discussions with an FBI confidential source in which they expressed a desire to travel overseas to join certain groups in fighting the “kuffar” (non-Muslims) and “munafiq” (Muslims considered to be hypocrites), primarily in either Syria or Yemen. These groups included al-Qaeda in the Arabian Peninsula (AQAP), the Islamic State of Iraq and Sham (ISIS), and jabhat al-Nusrah (JAN). They also talked frequently about weapons and the use of weapons in fighting the kuffar, both overseas and in the United States. Jordan specifically discussed with Brown the weapons he had in his possession, including an AK-47, and described how he would not hesitate to use them. The affidavit describes a meeting at Jordan’s apartment on December 30, 2013, during which Jordan showed Brown how to break down the AK-47.
On March 19, 2014, Brown was arrested at Raleigh Durham International Airport prior to boarding a flight with final destination in Turkey. Brown stated in an interview that he intended to travel from Turkey into Syria. Once overseas, Brown intended to meet with a member of ISIS whom he had befriended online. Once established, and after Jordan had obtained his own passport and enough funds to purchase a ticket, Brown could then assist Jordan in entering Syria from Turkey to join Brown.
Jordan, who had not yet obtained a passport, was also arrested on March 19. Jordan admitted that he had made an appointment to obtain a passport so that so that he could go to Syria and fight. A search warrant executed that day at Jordan’s apartment recovered the AK-47 and several other weapons. On August 12, 2014, Brown pled guilty to the Indictment. His sentencing is currently set for November 6, 2014.
Investigation of this case was conducted by the Federal Bureau of Investigation, Charlotte Division, Resident Agency Joint Terrorism Task Force (JTTF). The Raleigh JTTF consists of the following agencies: FBI, DHS-H.S.I., Raleigh Police Department, Durham Police Department, Cary Police Department, NC State Bureau of Investigation, and the NC State Highway Patrol. The prosecution is being handled by Assistant United States Attorney Jason Kellhofer and Trial Attorney Michael Dittoe of the Counterterrorism Section in the Justice Department’s National Security Division.
Prison Inmate, Psychologist and Three Others Charged with Conspiracy to Threaten WitnessRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nicholas Stanishia, age 44, an Ohio prison inmate, Marcia J. Weber, age 46, of Loveland, Ohio, Martin Jay Wilson, age 43, of Kansas City, Missouri, Jody Six, age 40, and Anthony Vaughn, age 41, both Ohio inmates were indicted yesterday by a federal grand jury in Harrisburg and charged with an interstate conspiracy to transmit threats to a witness.
According to U.S. Attorney Peter Smith, Stanishia who is serving a sentence of life imprisonment at the Southeastern Correctional Institution in Lancaster, Ohio, allegedly developed an intimate relationship with clinical psychologist Weber who helped orchestrate Stanishia’s release from prison by attempting to get a witness who had identified Stanishia at his Ohio murder trial to recant his statement to police and his trial testimony.
According to the indictment, Stanishia and Weber allegedly hired a private investigator to locate the witness and obtain information about where he and his wife lived and worked and information about the couple’s children. They then allegedly hired Wilson to travel from Missouri to Mechanicsburg, Pennsylvania, where the witness now lives, and place a gas can on the witness’s porch.
Stanishia then allegedly, with the help of Six - another inmate - used a smuggled-in cellular telephone to contact the witness and threaten him over the telephone.
Special Agent in Charge, Edward J. Hanko, FBI, Philadelphia Division stated: “This case represents an incredible collaborative effort between FBI Field Offices in Philadelphia, Cincinnati, Kansas City, the US Attorney's Office-Middle District Pennsylvania and Southern District Ohio, Hampden Township Police Department, Lower Paxton Police Department, Ohio Highway State Patrol, and the Southeastern Correctional Institution, Lancaster, Ohio. This matter is also a reminder of the ever-present threat from criminal elements, even those housed in our prison systems. Rest assured, the FBI will remain diligent and work with our law enforcement partners to aggressively address these threats as they surface to ensure the community is safe and perpetrators are brought to justice.”
According to the indictment, in 1997 Stanishia murdered his ex-girlfriend and shot the woman’s then boyfriend. Stanishia then fled and remained at large until his capture in 2000 after committing a home invasion and rape of a Kansas woman. The boyfriend ended up identifying Stanishia as the murderer and testifying against him at trial. Stanishia was found guilty and sentenced to life in prison without the possibility of parole on the murder and 23 years for the attempted murder, burglary and firearms offenses. Stanishia is currently serving his sentence in Ohio. Stanishia was also convicted of the home invasion and rape and sentenced to 54 years’ imprisonment.
Stanishia allegedly referenced the gas can as a message to the victim of his ability to reach the witness even while imprisoned in Ohio. Stanishia also allegedly claimed to be a high ranking member of the Aryan Brotherhood and made the witness aware of the group’s ability to reach the witness in Pennsylvania.
Weber and Stanishia allegedly then prepared a false declaration and affidavit, recanting the identification of Stanishia as the murderer, for the witness to sign, have notarized and return to Stanishia. The false declaration and affidavit were allegedly mailed to the witness using a false return address. Six allegedly stored copies of the draft information and personal information about the witness in his area within the prison to help Stanishia avoid detection. Vaughn, another inmate at the Southeastern Correctional Institution, allegedly helped orchestrate the mailing of the affidavit to the witness by making calls to Weber through a third party.
This case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Weber was taken into custody in Ohio on October 8. Wilson has not yet been taken into custody.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
If convicted, all five face a term of imprisonment of up to 45 years and a fine of $750,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Pain Management Physician Indicted for Overbilling the Medicare ProgramRead the Press Release
BOSTON – A physician specializing in pain management was charged in a superseding indictment today for overbilling the Medicare Program.
Fathalla Mashali, 59, of Dover, was charged with 23 counts of heath care fraud in connection with billing the Medicare Program for services that he did not provide to his Medicare patients between October 2010 and March 2013. Mashali will be arraigned on Oct. 29, 2014 in U.S. District Court in Boston.
According to the original indictment, returned in March 2014, Mashali was a licensed physician in Massachusetts and Rhode Island, and operated New England Wellness & Pain Management, P.C., a/k/a New England Pain Associates, P.C., of Massachusetts and Rhode Island, a/k/a Greystone Pain Management, Inc., a/k/a New England Pain Institute, P.C. (NEPA). Many of the patients at NEPA were Medicare beneficiaries.
It is alleged that Mashali trained NEPA employees, including physician assistants and registered nurses, to overbill the Medicare Program. According to the indictment, Mashali overbooked patient appointments, sometimes with as many as four patients per appointment slot, and arrived to work up to four hours late. The patient appointments often lasted less than 10 minutes and sometimes as few as two minutes during which he often failed to perform physical examinations. With the exception of patients requiring injections, Mashali conducted patient visits in a small office with a desk, resembling a business office, rather than in an examination room containing medical equipment. Nevertheless, Mashali allegedly submitted fraudulent claims to Medicare seeking reimbursement for patient services far exceeding in scope and duration of the actual services he provided to his Medicare patients.
The superseding indictment adds the additional allegations that between November 2011 and October 2012, while the laboratory was not in compliance with federal regulations, Mashali billed Medicare for urine drug tests he did not perform. Mashali collected urine specimens from his patients and tested them for drugs, presumably to determine whether the patients were using abusive drugs and whether they consumed their prescription medication. According to the indictment, Mashali contemporaneously tested each urine specimen at his laboratory in Holbrook, Mass. on two chemical analyzers, and billed Medicare for those tests. In addition, he billed Medicare for a third test, known as a confirmatory test, which he did not perform. Although the administration of a confirmatory test would have depended on the outcome of the initial urine test, it is alleged that Mashali billed for the confirmatory tests before he conducted any urine tests whatsoever.
Furthermore, Mashali allegedly tested the urine weeks and sometimes three months after it had been collected from his patients. The urine was kept unrefrigerated, and, due to the age of urine and storage conditions, it leaked from collection cups while the smell permeated the laboratory. Prior to an inspection by a federal health inspector in February 2012, Mashali ordered his staff to move the unrefrigerated urine specimens out of the laboratory, but then returned the specimens following the inspection.
The maximum sentence under the statute on each count of the indictment is 10 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain to Mashali or loss to the Medicare program, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Health and Human Services, Office of the Inspector General; Office of Investigations; Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The case is being prosecuted by Maxim Grinberg and Kimberly P. West of Ortiz’s Health Care Fraud Unit and Katherine Ferguson of Ortiz’s Drug Task Force Unit.The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Our Lady of Lourdes Memorial Hospital Has Paid More Than $3.37 Million to Resolve Self-disclosed Billing ImproprietiesRead the Press Release
ALBANY, NEW YORK – Our Lady of Lourdes Memorial Hospital, Inc. (Lourdes), a 242-bed hospital located in Binghamton, New York, has paid $3,373,898.28 to resolve False Claims Act liability stemming from Medicare billing improprieties that the hospital selfdisclosed to the federal government, announced United States Attorney Richard S. Hartunian.
During the course of an internal review, Lourdes determined that from February 2008 through September 2013, it had improperly billed and was thus overpaid by the Medicare program for hyperbaric oxygen therapy services rendered by a third party in a facility that failed to satisfy the requirements for “provider-based status” set forth in federal regulations. The hospital promptly took corrective steps to remedy the problem and then brought its findings to the government’s attention. Due in large part to Lourdes’s decision to self-disclose these issues and its cooperation throughout the government’s investigation, the hospital was required to pay far less than the treble damages and penalties that the United States is authorized to seek under the False Claims Act. Furthermore, the Department of Health and Human Services’ Office of Inspector General (HHS-OIG) decided that Lourdes would not have to enter into a corporate integrity agreement or adopt other compliance measures.
United States Attorney Hartunian said: “Today’s settlement is an excellent example of how voluntary self-disclosure benefits both the integrity of health care programs and providers who discover and report evidence of improper billing in their organization. Lourdes should be commended for the manner in which it handled the disclosure.”
“In coordination with our law enforcement partners, our agency’s investigators and attorneys will continue to work with health care providers who use the self-disclosure protocol to resolve billing improprieties,” said Special Agent in Charge Thomas O’Donnell of HHS-OIG’s New York region.
The United States encourages all health care providers to self-disclose any known violations that have resulted in the submission of improper claims to federal health care programs. This investigation and settlement were the result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York and HHS-OIG. Locally, the United States was represented by Assistant United States Attorney Adam J. Katz.
Operation Tango and Cash Recognized with National AwardRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that the Director of the Organized Crime Drug Enforcement Task Forces (OCDETF) for the U.S. Department of Justice recognized Operation Tango and Cash as the National 2014 Outstanding International Primary Money Laundering Investigation and the 2014 Special Investigation of the Year for the Southeast Region.
Operation Tango and Cash was an extensive effort to dismantle an international money laundering business in Baton Rouge that was being used to support drug traffickers in this country and overseas. The organization was infiltrated through the use of various sophisticated investigative techniques, including court-authorized wiretaps and undercover agents. The operation resulted in federal felony convictions against two corporations and three individuals for various money laundering and narcotics related offenses and the forfeiture of almost $1,000,000.
The matter was handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Baton Rouge Office of the U.S. Drug Enforcement Administration, and the Baton Rouge Office of the Criminal Investigations Division of the Internal Revenue Service, along with the Baton Rouge and Gonzales Police Departments and the Sheriff’s Offices in East Baton Rouge Parish, West Baton Rouge Parish, and Ascension Parish.
Operation Tango and Cash was another effort by the OCDETF Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
The OCDETF Director specifically recognized Assistant United States Attorneys Jennifer Kleinpeter and Jay Thompson; Special Agent Chris Abney of the Drug Enforcement Administration; and Supervisory Special Agent Ted Magee and Special Agent Andre Guilott of the Criminal Investigations Division of the Internal Revenue Service. Former Assistant United States Attorney Lane Ewing and support staff at all the agencies also provided invaluable assistance to the matter.
Omar Gonzalez Indicted on Additional Charges Stemming from Recent Intrusion on White House GroundsRead the Press Release
Grand Jury Returns Superseding Indictment as Investigation Continues
A federal grand jury in the District of Columbia returned a superseding indictment today charging Omar Gonzalez with three additional offenses stemming from a recent incident in which he ran into the White House while armed with a folding knife.
The superseding indictment was announced by U.S. Attorney Ronald C. Machen Jr. and Special Agent in Charge Kathy A. Michalko of the U.S. Secret Service Washington Field Office.
Gonzalez, 42, formerly of Copperas Cove, Texas, initially was indicted on Sept. 30, 2014, in the U.S. District Court for the District of Columbia. He was charged at that time with unlawfully entering a restricted building or grounds while carrying a deadly or dangerous weapon, a federal offense; carrying a dangerous weapon outside a home or place of business, a District of Columbia offense; and unlawful possession of ammunition, also a D.C. offense.
The superseding indictment includes those three charges. It also adds two federal counts of assaulting, resisting, or impeding certain officers or employees, and one District of Columbia count of unlawful possession of a large capacity ammunition feeding device.
According to the government’s evidence, on Sept. 19, 2014, at about 7:19 p.m., Gonzalez climbed over the north fence of the White House. An officer with the U.S. Secret Service ran toward him and yelled at him to stop. Gonzalez, however, ran toward the White House. Moments later, he went through the north doors and entered the building.
He was apprehended inside the White House after he allegedly assaulted, resisted or impeded two U.S. Secret Service officers, the basis for the new federal charges filed today. Gonzalez was searched and a black folding knife was discovered in his right front pants pocket. The knife had a serrated blade that was three and one-half inches long.
After Gonzalez’s arrest, he gave oral consent to search his vehicle, which was located on Constitution Avenue NW. The vehicle contained hundreds of rounds of ammunition, both in boxes and in magazines, two hatchets and a machete. The newly-filed District of Columbia charge involves the recovery of gun magazines that held more than 10 rounds.
Gonzalez is scheduled to appear in court on Oct. 21, 2014. He has been in custody since his arrest on Sept. 19, 2014.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the U.S. Secret Service. It is being prosecuted by Assistant U.S. Attorneys David Mudd and Thomas A. Gillice, of the National Security Section of the U.S. Attorney’s Office for the District of Columbia.