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Thursday 16 October 2014
Omar Gonzalez Indicted on Additional Charges Stemming from Recent Intrusion on White House GroundsGrand Jury Returns Superseding Indictment as Investigation ContinuesRead the Press Release
WASHINGTON – 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 Kathy A. Michalko, Special Agent in Charge of the Washington Field Office, U.S. Secret Service.
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.
14-231Olympia Tax Preparer Sentenced to Prison for Filing False ClaimsRead the Press Release
An Olympia, Washington tax preparer was sentenced today in U.S. District Court in Tacoma to two years in prison for a tax fraud scheme in which he falsely claimed tax refunds while victimizing his clients, announced Acting U.S. Attorney Annette L. Hayes. KYLE BAXTER, 31, pleaded guilty in July 2014 for the scheme that netted him more than $250,000 over three years. “You were evil and criminal while doing this,” said U.S. District Judge Robert J. Bryan. “These are serious offenses that hurt a group of people and the public.”
Court records in the case reveal BAXTER admitted that from 2010 through 2013, he represented himself to be a provider of tax preparation services operating under the name “Baxtax.” BAXTER maintained a website for “Baxtax,” and promoted his services through advertisement in local media, even though BAXTER never obtained a Preparer Tax Identification Number, ordinarily required of any person or entity that prepares tax returns for a fee. During that three-year period, BAXTER, a firefighter, filed at least 280 tax returns. Many of his clients were fellow firefighters, as well as emergency medical technicians and paramedics. In many filings, BAXTER claimed deductions and credits for which his clients were plainly ineligible, such as child tax credits for clients without children. The false filings increased the refunds paid by the IRS to the clients. BAXTER provided clients paper copies of tax returns purportedly reflecting their filings. However, the copies were not what had been provided to the IRS. BAXTER actually filed returns with distorted numbers that yielded even larger refunds, and BAXTER secretly diverted significant portions of these refunds to himself. Over the course of the scheme, BAXTER stole at least $250,000 in taxpayer funds by partially diverting refund payments in this manner. BAXTER was ordered to pay $255,033 in restitution to the Internal Revenue Service.
The case was investigated by the Internal Revenue Service-Criminal Investigation. The case was prosecuted by Assistant United States Attorney Rebecca Cohen.
Oliver Pleads Guilty to Unemployment FraudRead the Press Release
OXFORD, MS. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Richard L. Walker, Special Agent in Charge, U. S. Department of Labor, Office of Inspector General – Office of Labor Racketeering and Fraud Investigations announced that:
Olivia Oliver, age 41, of Tupelo, Mississippi, pled guilty October 9, 2014, before United States District Court Judge Deborah M. Brown, in Greenville, Mississippi. Oliver pled guilty to making false material representations in a matter within the jurisdiction of the United States Department of Labor, that is, that she was unemployed when in truth and in fact she was gainfully employed, thereby receiving $26,525 in unemployment insurance benefits from the Mississippi Department of Employment Security funded by the Federal Emergency Unemployment Compensation Program to which she was not entitled.
Oliver was released on a pre-existing bond pending sentencing, which will take place following the completion of a pre-sentence report. At sentencing, she faces a maximum possible penalty of five (5) years imprisonment, a $250,000 fine, and three (3) years supervised release.United States Attorney Felicia C. Adams stated: “The Emergency Unemployment Compensation Program is intended to assist those who could not secure employment, and Oliver and those who give false information regarding their employment will not be allowed to profit by wrongfully taking funds from the citizens of the Northern District of Mississippi who are truly in need of this assistance.”
Mark Henry, Executive Director of the Mississippi Department of Employment Security said, “We at the Department of Employment Security are committed to ensuring that only honest Mississippians who have lost their jobs receive unemployment benefits. That is why this guilty plea is so important, and I commend Special Agent in Charge Richard L. Walker and U. S. Attorney Felicia Adams for seeing that justice was done in this case.”
This case was investigated by the United States Department of Labor, Office of Inspector General.Ohio Man and Two Wheeling Natives Charged with Cocaine Trafficking Near Local SchoolsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Samuel J. Pete, 28 of Youngstown, Ohio, Krista D. Dennis, 28, and Patrick A. Groves, 24, both of Wheeling, West Virginia, were indicted by a federal grand jury on multiple drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced today.
The indictment charges the defendants with numerous counts of distributing crack cocaine within 1,000 feet of various protected locations including Bishop Donahue High School in McMechen as well as West Virginia Northern Community College and Ritchie Elementary School in Wheeling. Pete (5 counts), Dennis (4 counts), and Groves (3 counts), each face up to
40 years in prison and a fine of up to $2,000,000.00 for each count.The indictment charges all three defendants with one count of conspiracy to possess with intent to distribute and to distribute crack cocaine for which they each face up to 20 years in prison and fine of up to $1,000,000.00.
Pete is also charged with one count of possession with intent to distribute crack cocaine for which he faces up to 20 years in prison and a fine of up to $1,000,000.00.
Assistant U.S. Attorney Robert McWilliams is prosecuting the case on behalf of the government. The case is being investigated by the Marshall County Drug Task Force and the Ohio Valley Drug & Violent Crime Task Force, both HIDTA-funded initiatives.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Offshore Oil Platform Owner to Improve Safety and Operations in Gulf of Mexico Following Unauthorized Oil DischargesRead the Press Release
Under a settlement agreement with the United States, ATP Infrastructure Partners LP (ATP-IP) will pay a $1 million civil penalty and perform corrective measures to resolve claims by the U.S. under the Clean Water Act and the Outer Continental Shelf Lands Act (OCSLA) of unauthorized discharges of oil and chemicals from an oil platform into the Gulf of Mexico, announced the Department of Justice, the Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE) and the U.S. Environmental Protection Agency (EPA). This is the first joint judicial enforcement action involving BSEE and EPA claims in response to alleged violations of both the Clean Water Act and OCSLA.
The United States’ complaint, which was filed in February 2013 in the U.S. District Court for the Eastern District of Louisiana, alleges that oil and an unauthorized chemical dispersant were discharged into the Gulf of Mexico from ATP-IP’s oil and gas production platform known as the ATP Innovator. A BSEE inspection of the ATP Innovator in 2012 revealed alleged unlawful discharges of oil and a piping configuration that routed an unpermitted chemical dispersant into the facility’s wastewater discharge pipe to mask excess oil being discharged into the ocean. At the time of the discovery, ATP Oil & Gas Corporation (ATP) was the operator of the facility, and ATP-IP was, and remains, the owner. The ATP Innovator was operating in the Mississippi Canyon, approximately 45 nautical miles offshore of southeastern Louisiana. Earlier this year, the ATP Innovator was removed from the deepwater production site and towed to port in Corpus Christi.
The United States filed suit against ATP and ATP-IP seeking Clean Water Act penalties and corrective measures under the Clean Water Act and OCSLA. ATP-IP’s motion to dismiss the claims against it and a related motion for appeal were both denied by the court in 2013. In addition to the penalty and corrective measures, ATP-IP will conduct enhanced reporting to address safety and environmental concerns. The Clean Water Act and OCSLA claims against ATP are not part of this settlement with ATP-IP and remain pending before the district court for future resolution.
“The Justice Department is committed to protecting public health and marine ecosystems like the Gulf from unlawful and unsafe practices,” said Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This joint enforcement action demonstrates our resolve to hold non-operating owners of oil production facilities and their operators accountable for unlawful discharges from their facilities, and will result in important steps to help prevent future unlawful discharges of oil and chemicals from the ATP facility.”
“Our mission is to ensure offshore operations are conducted safely and in accordance with federal regulations to protect workers and the environment,” said BSEE Director Brian Salerno. “When violations occur, we will exercise our full authority, and leverage the authorities of our sister agencies, to hold companies accountable. We appreciate the EPA’s and the Justice Department’s assistance in bringing these claims to resolution.”
“EPA and its federal partners are committed to ensuring that offshore energy production is done safely and responsibly,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Discharging oil illegally can foul water, harm wildlife and is unfair to companies that follow the law. It is our obligation to protect local communities and companies playing by the rules.”
Under the Clean Water Act it is illegal to discharge oil or hazardous substances into or upon waters of the contiguous zone or in connection with activities under OCSLA in quantities that may be harmful to the environment or public health or welfare. The penalty paid for these violations will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Fund Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances.
Although ATP-IP took the Innovator out of operation earlier this year, it must perform corrective measures to ensure safe and lawful future operations. In particular, ATP-IP must remove and seal the connection on the wastewater discharge outfall pipe that was used to inject chemical dispersants, thereby permanently eliminating the access point for improperly injecting dispersants into the wastewater discharge pipe. Additionally, prior to any future use of the ATP Innovator for exploration, development, or production activities in U.S. waters, ATP-IP will have to certify to EPA, BSEE and DOJ that:
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the facility has sufficient wastewater treatment equipment and operational plans to meet and maintain Clean Water Act permit discharge limits and prevent unlawful discharge of pollutants to offshore waters at all times;
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the facility’s surface production-safety systems will be maintained in a manner that provides for protection of the environment under BSEE regulations; and
- all facility operations will be performed in a safe and workmanlike manner in accordance with BSEE regulations.
As a further safeguard, ATP-IP will be required to have the ATP Innovator’s wastewater treatment operations and surface production-safety systems independently audited for Clean Water Act and OCSLA compliance if the facility is used or leased in the future by ATP-IP or a related entity.
The proposed consent decree, lodged in the Eastern District of Louisiana, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html
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Northern Virginia Company Agrees to Settle Claim for failure of Services to a Deaf PatientRead the Press Release
ALEXANDRIA, Va. – Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, announced yesterday a settlement under the Americans with Disabilities Act (ADA) with Associated Foot & Ankle Centers of Northern Virginia, P.C. (AFAC), to ensure that it provides appropriate auxiliary aids and services to individuals who are deaf or hard of hearing when providing medical services.
The investigation began with a complaint alleging that AFAC violated the ADA by failing to provide appropriate auxiliary aids and services to a patient who is deaf during critical interactions relating to the patient’s medical care. The complainant specifically alleged that AFAC failed to provide a sign language interpreter for multiple medical appointments and provided an individual who is not a qualified interpreter during other appointments.
“This settlement exemplifies our unwavering commitment to protect the rights of those who are deaf or hard of hearing and to ensure that they are able to communicate with health care professionals, especially when patients have complex interactions with medical providers,” said U.S. Attorney Boente.
The settlement agreement requires AFAC to pay $14,000 to the aggrieved individual and a $1,000 civil penalty to the United States; provide training to the podiatry practice’s staff on the requirements of the ADA; and adopt specific policies and procedures to ensure that auxiliary aids and services are provided promptly to patients and companions who are deaf or hard of hearing.
This matter was handled by Assistant U.S. Attorney Steven Gordon, who coordinates the Civil Rights Initiative for the U.S. Attorney’s Office, Eastern District of Virginia.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against individuals with disabilities by health care providers. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities to comply with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, www.ada.gov/hospcombr.htm, and publications specific to health care providers, HIV discrimination, and effective communication with people with hearing and vision disabilities, as well as publications about tax credits available for providing access. For more information on the ADA and to access these publications, visit www.ada.gov. The settlement in this case, along with other Barrier-Free Health Care Initiative settlements may be found at www.ada.gov/usao-agreements.htm. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.
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Norfolk Man Pleads Guilty in Tax Fraud SchemeRead the Press Release
NORFOLK, Va. – Ronald Chisholm, 52, of Norfolk, Va., pleaded guilty yesterday to mail fraud and aggravated identity theft in connection with a scheme to defraud the Internal Revenue Service.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by United States Senior District Judge Henry Coke Morgan, Jr.
Chisholm waived indictment and was charged in a criminal information on October 6, 2014. Chisholm faces a maximum penalty of 22 years when he is sentenced on January 22, 2015.
In a statement of facts filed with the plea agreement, Chisholm’s scheme was discovered in 2013 after a local check cashing business noticed one of its employees had cashed over $2 million in U.S. Treasury checks. The employee of the check cashing business identified Ronald Chisholm as the individual who cashed the treasury checks and indicated Chisholm paid her $200 per check to cash the treasury checks in violation of the company’s policies. A subsequent IRS investigation determined that Chisholm, along with unidentified co-conspirators stole the personal identifying information of numerous people and filed at least 698 fraudulent income tax returns. As a result of these false returns, Chisholm and his co-conspirators received a total of $2,273,119.52 in fraudulent income tax refunds.
This case was investigated by the Criminal Investigations division of the Internal Revenue Service. Assistant United States Attorney Joseph L. Kosky is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-132.Tweet
Nine Medical Practitioners Indicted in Conspiracy to Distribute Controlled Pain Medication as Employees of Breakthrough Pain Therapy Center in MaryvilleRead the Press Release
KNOXVILLE, Tenn. – On Oct. 7, 2014, a federal grand jury in Knoxville returned a two-count indictment against two medical doctors (M.D.), two physician’s assistants (P.A.) and five nurse practitioners (N.P.) for conspiring to distribute oxycodone, morphine, oxymorphone, and alprazolam, by writing prescriptions for controlled substances which were not for legitimate medical purposes. Additionally, the indictment on file with the U.S. District Court alleges that these nine individuals were also involved in a conspiracy to commit money laundering. Those indicted include:
Walter David Blankenship, P.A., 37, of Maryville, Tenn.; David Eric Brickhouse, P.A., 41, of Knoxville, Tenn.; Jamie Chiles Cordes, N.P., 36, of Maryville, Tenn.; Sherry Ann Fetzer, N.P., 41, of Knoxville, Tenn.; James Brian Joyner, M.D., 45, formerly of Maryville, Tenn., but now residing in Virginia; Buffy Rene Kirkland,N.P., 38, of Maryville, Tenn.; Don Robert Lewis, Jr., N.P., 54, of Maryville, Tenn.; Donna Jeanne Smith, N.P., 60, of Greenback, Tenn.; and Deborah Gayle Thomas, M.D., 62, of Dandridge, Tenn.
All of these individuals were employed at various times by Breakthrough Pain Therapy Center in Maryville, Tenn., which was owned and operated by Sandra and Randy Kincaid during 2009 and 2010. The Kincaids, along with family members Wendi Henry and Dustin Morgan, were previously convicted for their roles in operating the pain clinic and are currently serving prison terms of 39, 69, 18, and 17 years, respectively. The pain clinic ceased operations after raids at several locations by federal and local law enforcement agents in December 2010, when agents seized significant quantities of prescription narcotic pain pills, firearms, and nearly $700,000 in cash.
If convicted, the individuals charged in this indictment face a term of up to 20 years in prison, up to $1 million in fines, and supervision by the U.S. Probation Office upon their release from prison.
This indictment resulted from a lengthy investigation by the Internal Revenue Service – Criminal Investigation, the Fifth Judicial District Drug Task Force, and the Drug Enforcement Administration. The United States will be represented in this prosecution by Assistant U. S. Attorneys Jennifer Kolman and Frank M. Dale, Jr.
Members of the public are reminded that these are only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
New York Man Sentenced for Role in $11 Million Dollar Telemarketing ScamRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 16, 2014, John C. Nicosia, 56, of Rochester, New York, was sentenced to 60 months in prison, and ordered to pay $962,538.61 in restitution and a $100 special assessment. Nicosia had previously pled guilty to a charge of conspiracy to commit mail and wire fraud for his role in a Las Vegas based telemarketing scam operating under the names Vacation Max and Showcase Resorts.
Vacation Max and Showcase Resorts targeted owners of timeshares throughout the United States. The overall scam bilked thousands of consumers throughout the United States, Canada, and other countries of $11 million dollars. There were at least twelve victims in seven of the thirty eight counties comprising the Southern District of Illinois. In this case, Nicosia and other telemarketers for Vacation Max placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. Telemarketers then solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were told that their closings were scheduled within the next sixty to ninety days. Despite collecting fees from over 3,000 victims, these companies were not successful in selling a single timeshare unit. Nicosia and his co-conspirators simply pocketed the closing costs.
This prosecution follows an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock.
New Orleans Man, Curtis Anderson, Sentenced for Conspiracy to Commit Wire Fraud and Possession of Stolen Credit and Debit Card NumbersRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CURTIS ANDERSON, age 36, a resident of New Orleans, was sentenced today after having previously pled guilty to conspiracy to commit wire fraud and possession of unauthorized access devices.
U.S. District Judge Jane Triche Milazzo sentenced ANDERSON to serve 27 months imprisonment followed by 3 years of supervised release, and a $200 special assessment. ANDERSON was also ordered to pay $75,361.68 to BP and the banks that suffered financial losses as a result of his card skimming scheme.
According to court documents, between September 2010 and January 2011, ANDERSON submitted false documents and made false statements to the Gulf Coast Claims Facility (“GCCF”) in support of his claim that his janitorial business lost income as a result of the BP oil spill. In addition to defrauding BP, ANDERSON was found to be in possession of 317 unauthorized access devices (credit and debit card account numbers) that belonged to other individuals.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the Secret Service and FBI in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Native of Mexico Charged with Illegal ReentryRead the Press Release
Felix Zeferino-Carranza, a/k/a “Felix Lopez Carranza,” 33, of Norristown, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about August 23, 2014, Zeferino-Carranza, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about April 18, 2009, July 3, 2009, and July 5, 2009.
If convicted the defendant faces a maximum possible sentence of two years imprisonment.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Frank R. Costello, Jr.
An Indictment 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, 215-861-8525Morgan County Man Sentenced to 6.5 Years in Prison for Possessing Child PornographyRead the Press Release
BIRMINGHAM -- A federal judge on Wednesday sentenced a Morgan County Man to more than six years in prison for possessing child pornography obtained over the Internet, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
WALTER SCOTT SIMPSON, 42, of Danville, pleaded guilty in July to one count of possessing child pornography. U.S. District Judge R. David Proctor sentenced Simpson to 6 1/2 years in prison, followed by 15 years of supervised release. The judge ordered Simpson into custody following the hearing.
Simpson used the Internet and a peer-to-peer file-sharing software program to possess and access images of child pornography between January 2011 and May 2012, according to his plea agreement with the government. A sentencing document the government filed Tuesday states Simpson used his computer, the Internet and the file-sharing program to possess at least 25,443 images of child pornography, which included images of children under 12 years old engaged in sexually explicit conduct, and images depicting sadistic and masochistic conduct with prepubescent children.
Undercover law enforcement officers received child pornography in January 2012 from a computer using peer-to-peer software, according to Simpson's plea agreement. The FBI tracked the computer to Simpson's Danville residence, where agents executed a search warrant for computer media in May 2012 and found the child pornography, the plea agreement states.
The FBI investigated the case, which Assistant U.S. Attorney Daniel J. Fortune prosecuted.
Middle District of Alabama Human Trafficking Task Force Meeting Held Today at 10:00 AMRead the Press Release
Montgomery, Alabama - United States Attorney George L. Beck, Jr., joined with members of the Middle District of Alabama Human Trafficking Task Force, which was formerly known as the “Central Alabama Human Trafficking Task Force,” on today. The Middle District of Alabama Human Trafficking Task Force (hereinafter “Task Force”) met to discuss its plans to revitalize the Task Force and increase law enforcement participation. The purpose of the meeting is to unite federal, state, and local law enforcement officials, prosecutors and victim service providers to discuss investigation strategies and victim resources, and to implement a district-wide protocol in an effort to combat human trafficking.
Human trafficking is recognized as “a modern-day form of slavery” and “is tied with the illegal arms industry as the second largest criminal industry in the world today,” according to the U.S. Department of Health and Human Services. Human trafficking often takes one of two forms – labor or sex trafficking. Labor trafficking may include forced labor or debt bondage, where a victim continually works to pay off an undefined and seemingly endless debt. Sex trafficking includes forcing victims to perform sexual acts, performances, or prostitution, or subjecting them to sexual abuse or torture. Victims may be subject to inhumane conditions and may be afraid to seek help due to language barriers, immigration status, or fear of the trafficker. Both Federal and Alabama law criminalize human trafficking, with penalties including significant prison time, large fines, and mandatory restitution.
Effective January 1, 2013, Alabama law requires certain establishments to display the National Human Trafficking Resource Center toll-free hotline number, 1-888-373-7888. The hotline provides information on human trafficking and resources for victims in 170 languages. Establishments required to post this information include hotels and massage parlors that have been cited as nuisances, airports, bus and train stations, and establishments offering stripteasing or topless entertaining.
“Victims of human trafficking hide in fright in our own backyard often in nightmare conditions and forced prostitution,” stated George L. Beck, U.S. Attorney for the Middle District of Alabama. “Make no mistake, human trafficking is enslaving our fellow Americans, many of whom are children of broken homes or runaways, targeted to serve in the commercial sex trade. This office will prosecute traffickers and protect victims. I encourage everyone to visit DOJ’s website at www.ovc.ncjrs.gov or the HHS website at www.acf.hhs.gov/trafficking to learn more about human trafficking. Let’s work together to fight and prevent this evil criminal conduct.”
“The FBI is committed to bringing to justice those individuals who are responsible for the heinous crime of human trafficking,” stated Jeannette L. Williams, Assistant Special Agent in Charge of the FBI office in Mobile. “Together with our partner law enforcement agencies, and with the assistance of the community, we will continue to pursue those who rob the innocent of their freedom.”
“Homeland Security Investigations investigates and seeks prosecution of human trafficking as one of its highest priorities,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. “The results speak for themselves; in FY13 HSI set a record number of criminal arrests resulting from human trafficking investigations – up 91 percent over FY12 and more than 543 percent over FY10. HSI utilizes all of its resources via a coordinated global effort to dismantle the criminal infrastructure engaged in human trafficking, and HSI is fully committed to victim-centered investigations in which the identification, rescue and needs of victims are treated with equal weight as the prosecution of traffickers.” Parmer oversees a five-state area of responsibility to include Alabama, Arkansas, Louisiana, Mississippi and Tennessee.
“The Alabama Law Enforcement Agency (ALEA) is committed to working with our federal, state and local partners to combat human trafficking in our state,” said Secretary of Law Enforcement Spencer Collier. "By utilizing our Fusion Center as a central hub for helping gather, analyze, and share information, our intel analyst will provide real-time mission critical information to the agencies involved in this multi-jurisdictional effort."
The mission of the Task Force is “To Find and Free” victims of human trafficking. The Task Force began its work in 2009, initiated by the U.S. Attorney’s Office for the Middle District of Alabama, and thereafter partnered with the Montgomery County District Attorney’s Office.
The Task Force consists of federal, state, and local partners within the River Region and from the 23 counties which comprise the Middle District of Alabama. In addition to the United States Attorney’s Office for the Middle District of Alabama and the Montgomery County District Attorney’s Office, the Task Force partners include: the Federal Bureau of Investigation, the Homeland Security Investigations of the United States Department of Homeland Security, the Alabama Attorney General’s Office, the Alabama Fusion Center (which is a division of ALEA), the Montgomery Police Department, the Montgomery County Sheriff’s Office, One Place Family Justice Center, Legal Services Alabama, the Family Sunshine Center, the Alabama Coalition Against Domestic Violence, Stella’s Voice, SABRA Sanctuary of Selma, the Alabama Department of Youth Services, the Alabama Department of Child Abuse and Neglect Prevention, the Alabama Department of Education, survivors of human trafficking, college students, and local college chapters of International Justice Mission.
For more information, please contact Assistant United States Attorney Jerusha T. Adams at 334-223-7280 or Montgomery County Deputy District Attorney Carrie G. Shaw at 334-262-7378.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Mexican National who resided in Richmond sentenced to 57 months in prison for role in Violent Criminal OrganizationRead the Press Release
RICHMOND, Va. – Freddy David Santos Campuzano, 32, a Mexican National who resided in Richmond, Virginia was sentenced to 57 months in prison for his role in a violent criminal organization that specialized in manufacturing and distributing fraudulent identification documents. Santos Campuzano previously pleaded guilty to Conspiracy to Engage in Racketeering and Conspiracy to Launder Money. Because he is illegally within the United States, he faces deportation following the service of his prison sentence.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Washington, D.C., made the announcement after the sentence was handed down by Senior United States District Judge James R. Spencer. The Court granted the request of the United States for a variance, and sentenced the defendant above the calculated guideline range.
According to court papers, Santos Campuzano was connected to a Fraudulent Document Enterprise (FDE) previously prosecuted in the Eastern District of Virginia in United States v. Israel Cruz Millan, Case No. 3:10CR308. The FDE originally operated in the United States beginning prior to 2008 and continuing through November 18, 2010, and had cells in Richmond, Norfolk, Virginia Beach, and Manassas, Virginia; Fayetteville and Little Rock, Arkansas; New Haven, Connecticut; Mishawaka, Indiana; Lexington and Louisville, Kentucky; Chelsea, Massachusetts; St. Louis, Missouri; Chapel Hill, Greensboro, Raleigh, and Wilmington, North Carolina; Cincinnati, Ohio; Providence, Rhode Island; and, Nashville, Tennessee. The criminal enterprise was dismantled within the United States on November 18, 2010. In the prior case and connected prosecutions, a total of 30 defendants were convicted.
On February 16, 2012, Judge Spencer sentenced the overall leader, Israel Cruz Millan, to 300 months’ imprisonment. On March 2, 2012, United States District Judge Henry E. Hudson sentenced Oliverez-Jiminez to two consecutive life terms in prison, for racketeering, murder, kidnapping, conspiracy to commit money laundering, and conspiracy to produce and transfer false identification documents.
In connection with his guilty plea, Santos Campuzano admitted to helping the FDE restart its criminal activities in the United States following the 2010 arrests described above. Beginning at some time prior to February 2012, Manuel Hidalgo Flores, also known as “Chino,” “Chimuelo” and “Julio,” began managing the organization’s operations in Richmond, Virginia; Springdale, Arkansas; Boston, Massachusetts; Raleigh, North Carolina; Cincinnati, Ohio; and Pawtucket, Rhode Island. As in the previous case, the FDE produced high-quality false identification cards for distribution to illegal aliens. In most cities where the organization operated, Hidalgo Flores placed a cell manager to supervise a number of “runners,” the lower level members of the organization who distributed business cards advertising the organization’s services and helped facilitate transactions with customers.Beneath Hidalgo Flores, Santos Campuzano served as the manager of the Cincinnati, Ohio cell. In general, within each cell, the manager was responsible for distributing the fraudulent documents using information obtained from clients by “runners.” The runners would recruit illegal alien clients who wished to obtain false identification documents, including counterfeit Permanent Resident Alien Cards (also known as “Green Cards”), Social Security Cards, out-of-state identification cards, and various international documents. The runners would relay identifying information and photographs from the client to the printer, who would create fraudulent identification documents for the client. Once the documents were complete, the runner would usually provide the documents to the client in exchange for United States currency.
A client would generally pay approximately $150 for a set of fraudulent identification documents (such as a Permanent Resident Alien Card and Social Security Card). Each cell maintained detailed sales records and divided the proceeds between the runner, the cell manager, and the upper level managers in Mexico. In addition, the FDE used Western Union and MoneyGram to funnel criminal proceeds to Mexico.
The evidence during the Oliverez-Jiminez trial detailed how members of the organization sought to drive competitors from their territory by posing as customers in search of fraudulent documents and then attacking the competitors when they arrived to make a sale. For example, Hidalgo Flores and other defendants connected to the Richmond cell admitted targeting a competitor in the Richmond, Virginia area on October 6, 2013. The group identified L.G., who was selling fraudulent documents in competition with the Richmond cell. A co-defendant posed as a customer and contacted L.G. about setting up a fraudulent documents transaction and then met with him at a designated location. At the same time, Hidalgo Flores, and other FDE members, were surveilling the transaction. The defendants planned to follow competitor L.G. after the transaction to find where L.G. produced fraudulent identification documents and intended to assault L.G. and steal his printing equipment with the intent to stop L.G. from selling fraudulent identification documents and to enhance the FDE’s control of the Richmond area fraudulent document market.Unbeknownst to the FDE members, law enforcement officers were also surveilling the October 6, 2013 transaction. Due to law enforcement intervention, L.G. was detained during a traffic stop and the FDE members fled the area. According to his plea documents, Hidalgo Flores admitted that absent law enforcement intervention, he and his cohorts would have carried out their plan against L.G.
To date, 42 members of this organization charged in the Richmond, Virginia federal cases have been convicted. Santos Campuzano is the final charged defendant to be sentenced in the case.
The case was investigated by the Richmond and Norfolk offices of ICE’s Homeland Security Investigations (HSI), which falls under the Washington, D.C., office. HSI received assistance from the Virginia State Police, Chesterfield County Police Department, and Henrico County Police Department. Assistant United States Attorney Michael Gill is prosecuting the case on behalf of the United StatesA copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
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Mexican Citizen, Ramon Frias-lopez, Illegally in United States SentencedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAMON FRIAS-LOPEZ, age 30, a Mexican citizen who was illegally in the United States, was sentenced today after having previously pled guilty to a one-count indictment for illegal reentry of a removed alien.
U.S. District Judge Lance M. Africk sentenced FRIAS-LOPEZ to 18 months imprisonment followed by 3 years of supervised release, and a $100 special assessment.
According to court documents, on or about May 7, 2014, FRIAS-LOPEZ was found in the United States after having been officially deported and removed on or about April 27, 2010.
U.S. Attorney Polite praised the work of the U.S. Customs and Border Protection and Immigration and Customs Enforcement Agencies in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.Metal Dynamics Agrees to Settlement WithUnited States to Reduce PollutionRead the Press Release
A Detroit scrap metal and iron recycling company has agreed to pay a $110,000 penalty and invest $400,000 to resolve allegations that it violated the Clean Air Act, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Environmental Protection Agency, Region 5 Administrator, Susan Hedman.
The settlement resolves a lawsuit brought by the U.S. Attorney’s Office and the Environmental Protection Agency against Metal Dynamics alleging that its facility on Lonyo Avenue in Detroit was releasing harmful chlorofluorocarbons (CFCs) into the environment. CFCs cause ozone depletion and have harmful effects on human health.
Under the settlement, Metal Dynamics agreed to implement a Clean Air Act compliance program at its facility to eliminate the harmful release of CFCs. Metal Dynamics also agreed to modify its torch cutting of metals to keep harmful particulate emissions at or below legal limits.
The settlement requires Metal Dynamics to pay a civil penalty of $110,000 and spend at least $400,000 on two environmental projects to help mitigate the harmful effects of air pollution. First, the company will provide education and economic incentives to scrap metal suppliers to prevent unlawful venting of harmful gases. Second, the company will purchase a portable control device to recapture particulate matter during torch cutting operations.
“This settlement will protect the health of Detroit residents and ensure cleaner air for future generations,” McQuade said. “We applaud Metal Dynamics for agreeing to invest in programs that will improve air quality in Detroit.”
“This settlement will help to preserve the ozone layer, which protects us from harmful radiation,” EPA Region 5 Administrator Susan Hedman said. “Metal Dynamics will also take steps to improve air quality in a community that has been disproportionately impacted by environmental contamination.”
Metal Dynamics did not admit any of the violations alleged by the government, but agreed to the compliance provisions, and to invest in the two innovative environmental projects.
The settlement was lodged with the U.S. District Court for the Eastern District of Michigan and will be subject to a 30-day public comment period and final court approval. It can be viewed at: http://www.usdoj.gov/enrd/Consent_Decrees.html and will appear in the Federal Register. Comments can be directed to Assistant Attorney General, Environment and Natural Resources Division, with reference to United States v. Metal Dynamics Detroit, LLC, D. J. Ref. No. 90-5-2-1-10192.Maryland Man Charged with Stealing Social Security NumberRead the Press Release
Aurelio Rafael Martinez, 38, of Essex, MD, was charged today by indictment with fraudulent use of a social security number and false statements in a matter within the jurisdiction of a federal agency announced United States Attorney Zane David Memeger. In particular, the indictment charges the defendant with using a social security number that did not belong to him, and falsely claiming United States citizenship on an I-9 Form in order to obtain and retain employment in connection with his work on the federally funded Girard Point bridge reconstruction project in Philadelphia between 2010 and 2012.
If convicted Martinez faces a maximum possible sentence of 10 years’ imprisonment.
The case was investigated by the United States Department of Labor, Office of Inspector General, the Office of Inspector General of the Department of Transportation; the Environmental Protection Agency Criminal Investigation Division, the Office of Inspector General of the Social Security Administration; Amtrak Office of Inspector General, Homeland Security Investigations, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul G. Shapiro and Nancy E. Potts.
An Indictment, Information or Criminal Complaint 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
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PATTY HARTMAN, Media Contact, 215-861-8525Man Pleads Guilty to Theft of Medicaid FundsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Maurice Burks, 43, of East St Louis, Illinois, pled guilty today in federal district court to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
The investigation determined that Burks, who was the personal assistant in this case, was falsifying time sheets with his brother in order to receive payments for time periods when his brother (who was the customer) was in the hospital and when Burks was working another job. Sentencing has been set for February 20, 2015. At that time, Burks will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Ranley Killian and Special Assistant United States Attorney Michael Hallock.
Los Angeles Woman Sentenced for Bank Fraud and Identity TheftRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Doree McGee, 39, of Los Angeles, California, who was convicted of bank fraud conspiracy and aggravated identity theft, was sentenced to 65 months in prison by U.S. District Judge David G. Larimer. The defendant was also ordered to pay restitution in the amount of $326,000.
Assistant U.S. Attorney John J. Field, who handled the case, stated that in 2010 and 2011, McGee conspired with Cassandra Montrevel, and others, to defraud Bank of America. The scheme involved the defendants posing as actual Bank of America account holders. They used fake driver’s licenses and other means of identification, and made cash withdrawals from actual customer accounts. Traveling from California to cities around the nation, McGee and others defrauded Bank of America of more than $325,000. The scheme came to an end on March 18, 2011, when Montrevel was arrested in a bank branch in Irondequoit, N.Y. Montrevel was convicted and sentenced to 70 months in prison for her role in the scheme.
The sentencing is the culmination of an investigation on the part of the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast, the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, the Gates Police Department, under the direction of Chief James VanBrederode, the Irondequoit Police Department, under the direction of Chief Richard V. Tantalo, and the Batavia Police Department under the direction of Chief Shawn Heubusch.Local Attorney Who Fled the United States Sentenced on Multiple Federal Fraud ChargesRead the Press Release
St. Louis, MO – St. Charles County attorney JEFFREY WITT was sentenced to forty-four (44) month’s imprisonment and five (5) years supervised release following his term of imprisonment, and ordered to pay restitution in the amount of $234,472.33 on charges of falsifying documents to obtain a bank loan secured by a St. Louis County home, which did not actually belong to him, using an associate to impersonate the true home owner at the bank loan closing and cashing legal client settlement checks without their knowledge.
According to court documents and statements made in court, during September 2013, Witt submitted a loan application in the name of his mother in order to obtain a $100,000 line of credit secured by his mother’s St. Louis-area residence. His mother was unaware of Witt’s loan application. Witt provided a female associate with his mother’s driver’s license, which he had stolen from his mother, along with other false documentation so the associate could impersonate his mother during the loan closing at the bank. Together they were able to obtain the $100,000 bank loan credit line. Witt immediately drew out $60,000 from the credit line, which he deposited into his law firm bank account and then withdrew for personal purposes. Subsequent to the loan closing, Witt’s mother learned of Witt’s action and confronted him. In order to conceal the scheme, Witt falsely represented to his mother that he had cancelled the loan. To convince his mother, Witt created a false letter on fake bank letterhead, forged the signature of a bank officer and created a false "Deed of Release," all of which purportedly released the Deed of Trust on his mother’s home securing the fraudulent t loan.
Additionally, as part of his law practice, Witt would enter into settlement discussions on behalf of one and more of his legal clients. Several times, without the knowledge of many of his clients, Witt settled their legal cases, accepted settlement checks on their behalf and forged their signatures on their settlement checks. Witt deposited the clients’ checks into his law firm bank account and spent those funds on his own personal expenses and business expenses unrelated to those clients without their knowledge. Further, and in order to conceal his scheme, Witt falsely represented to his clients that he had neither settled their cases nor received settlement checks.
Witt also looted a client’s family trust of more than $100,000 over which he had been made Trustee.
During October, 2013, aware of the ongoing federal criminal investigation, Witt fled the United States, traveling to the Philippines, Australia, Jordan, England and Turkey. Due to the efforts of federal and international law enforcement in tracking Witt, on March 7, 2014, Witt was arrested as he arrived at John F. Kennedy International Airport in New York City on an inbound flight from Istanbul, Turkey. Witt planned to spend the weekend in New York City and then return to Istanbul on the return airplane ticket recovered from Witt by federal agents upon Witt’s arrest.
Witt, St. Charles, MO, pled guilty in July to one felony count of bank fraud, one felony count of aggravated identity theft and one felony count of mail fraud. He appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by the Federal Bureau of Investigation. Assistant United States
Attorney Hal Goldsmith handled the case for the U.S. Attorney’s Office.Law Enforcement Operation in Liberty City Results in Twelve ArrestsRead the Press Release
Twelve Liberty City residents were arrested today for probation violations. As part of the arrests, three guns were seized.
The announcement was made by Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Chief Manuel Orosa, Chief, Miami Police Department (MPD), Hector Llevat, Major, Miami-Dade Police Department (MDPD), and Sunny J. Ukenye, Circuit Administrator for Circuit 11 Miami-Dade, Florida Department of Corrections Probation & Parole (FDOC).
Today’s proactive enforcement operation in Liberty City resulted in 12 arrests for probation violations. Three of the arrests were for possession of a firearm by a convicted felon. The guns seized were: a revolver; a semi-automatic pistol; and an AK-47 assault rifle.
Two of the arrests were for the possession of several fraudulent credit cards and over 100 fraudulently obtained personal identifying information. Seven arrests were for drug-related crimes, which included the possession of heroin, cocaine, and marijuana.
“Today, we announce the results of the most recent partnership between federal and state law enforcement to combat violent crime in our communities. The goal of the Violence Reduction Partnership is to help neighborhoods plagued with violent crime shake off the cycle of violence and make those neighborhoods safer for all residents,” stated U.S. Attorney Wifredo Ferrer. Enforcement of criminal statutes is an integral component of our holistic approach to community building. But we cannot arrest our way out of violent crime. For that reason, our Partnership also focuses on community-partnering, crime prevention, and reentry assistance for offenders attempting to put their pasts behind them and build healthy, productive lives in our community. The results of this operation clearly illustrate that we remain committed to this comprehensive approach.”
“The State Attorney’s Office is committed to the pro-active partnership of federal, state and local law enforcement which maximizes our resources in order to focus the most violent offenders in our community,” explains State Attorney Katherine Fernandez Rundle. “These joint efforts allow us to protect our community; build trust with them; and foster a safe environment for our families.”
Special Agent in Charge Hugo Barrera said, “Today’s arrests demonstrate law enforcement’s commitment to disrupt violent criminals that are affecting the quality of life of our law abiding citizens. This partnership illustrates the collaborative teamwork with all levels of government, federal, state and local together bringing their expertise and unique abilities with one goal to combat violent crime in our community.”
Chief Manuel Orosa stated, “It is unfortunate that individuals given a second chance at freedom abuse the system and decide to do wrong. Therefore, it is imperative to have these operations to ensure compliance since they cannot do what’s right.”
“The Miami-Dade Police Department is proud to work in collaboration with our law enforcement partners to reduce street violence in our community,” stated Major Hector Llevat. “Today’s operation serves as just one example of our collective determination to reach that goal. Through strategic partnerships such as the North-end Street Violence Task force, we can leverage our strengths and act as a force multiplier in combating criminals wherever they may hide.”
“The Florida Department of Corrections is committed in changing lives to ensure a safer Florida,” stated Circuit Administrator Sunny J. Ukenye.
This case is, in large part, the result of the Violence Reduction Partnership, launched by the U.S. Attorney’s Office. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
Mr. Ferrer commended the investigative efforts of ATF, MPD, MDPD, and FDOC. Mr. Ferrer also thanked U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, and Federal Bureau of Investigation, Miami Field Office, for their participation in and assistance with this initiative. This initiative was led by Roy K. Altman, Deputy Chief of the Special Prosecutions Section.
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.
Las Vegas Doctor Sentenced to 46 Months in Prison for Writing Unlawful Oxycodone PrescriptionsRead the Press Release
LAS VEGAS, Nev. – Victor Bruce, M.D., 49, who operates Swan Lake Medical Center in Las Vegas, was sentenced this afternoon to 46 months in federal prison and three years of supervised release for writing prescriptions for oxycodone for persons he did not see or treat, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Bruce, who pleaded guilty in July to one count of conspiracy to distribute a controlled substance, was sentenced by U.S. District Judge Andrew P. Gordon. Bruce was permitted to self-report to federal prison by Jan. 16, 2015.
“Dr. Bruce repeatedly wrote prescriptions for highly addictive controlled substances for patients who did not need them, and for patients who did not appear at his medical practice or did not exist,” said U.S. Attorney Bogden. “We continue to work with our local, state and federal law enforcement partners to put illegal pill-pusher doctors like Dr. Bruce in prison and out of business.”According to Bruce’s guilty plea agreement, he represents himself to be a pain management specialist and is the only physician working at the practice. Beginning at a date unknown and continuing to around November 2013, Bruce and several co-conspirators, including Robert Wolfe, aka “old man,” Millicent Epino, Dylan DuBois, Jennifer Monge, and Jade Lepoma, conspired to distribute oxycodone. Wolfe would provide Bruce a list of names, and Bruce would write prescriptions for oxycodone for those names and give them to Wolfe. Bruce also created “dummy” medical records for those persons, to make it appear as if a legitimate patient encounter had taken place. On four occasions in June 2013, an undercover law enforcement officer purchased Bruce-written oxycodone prescriptions from Wolfe for $700 each. On each occasion, the undercover provided Wolfe or another co-conspirator with copies of Nevada driver’s licenses bearing the names of customers. Usually within a day, Wolfe or another co-conspirator would then provide the undercover with written prescriptions for oxycodone. Bruce knew he was writing prescriptions for controlled substances to customers he did not treat and who did not need the prescriptions. None of the prescriptions were issued for a legitimate medical purpose or in the usual course of profession practice.
According to the Nevada State Board of Medical Examiners, Bruce’s license to practice medicine in Nevada is still active; however, there is a pending board action against him related to the unlawful administering, dispensing or prescribing of controlled substances.
Wolfe and several of the other co-conspirators were also charged in the drug conspiracy.
This case was investigated by the Nevada High Intensity Drug Trafficking Area (Nevada HIDTA) Pharm-Net Task Force, including the DEA, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Henderson Police Department, North Las Vegas Police Department, and the Nevada Division of Investigations, and prosecuted by Assistant U.S. Attorneys Crane M. Pomerantz and Cristina D. Silva.
Kirtland Woman Pleads Guilty to Second Degree Murder ChargeRead the Press Release
ALBUQUERQUE – LaSheena Jacquez, 27, of Kirtland, N.M., entered a guilty plea this morning to a second degree murder charge. The guilty plea was entered under a plea agreement with the U.S. Attorney’s Office.
Jacquez was one of five individuals, all of whom are enrolled members of the Navajo Nation, who were indicted in Jan. 2014, on criminal charges arising from the kidnaping and brutal murder of a 28-year-old Navajo woman on Oct. 23, 2013. The five defendants previously had been arrested in Dec. 2013, on a criminal complaint that was filed after law enforcement authorities received information that the victim, who had been reported as missing in Nov. 2013, had been murdered. The victim’s remains were recovered on Dec. 9, 2013.
The four-count indictment charged Jacquez, Patrick Benally, 26, of Kirtland, Justin Benally, 26, of Farmington, N.M., Scott Thompson, 28, of Farmington, and Mariah Benally, 22, of Kirtland, with first degree murder, kidnapping, and conspiracy to kidnap. It also charged Jacquez, Justin Benally, Thompson and Mariah Benally with harboring Patrick Benally to prevent his arrest on a warrant for an unrelated crime. The indictment alleges that the crimes charged occurred on the Navajo Indian Reservation within San Juan County, N.M.
During this morning’s proceedings, Jacquez pled guilty to a felony information charging her with second degree murder. In her plea agreement, Jacquez causing to the victim’s death on Oct. 23, 2013, by repeatedly stabbing the victim with a knife, throwing rocks at the victim, and aiding and abetting others who also caused the victim’s death. Jacquez admitted acting in wanton disregard for human life knowing that her actions created a serious risk of death or serious bodily injury. Jacquez also admitted that she destroyed evidence and aided and abetted others in the destruction of evidence in an effort to evade prosecution.
Jacquez has been in federal custody since her arrest and remains detained pending her sentencing hearing, which has yet to be scheduled. Jacquez faces a maximum statutory penalty of life imprisonment.
Jacquez’s four co-defendants have entered not guilty pleas to the indictment and are detained pending trial, which has not yet been scheduled. If convicted of the charges in the indictment, each faces a maximum statutory penalty of life imprisonment. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
This case was investigated by the Farmington office of the FBI, the Farmington Police Department and the San Juan County Sheriff’s Office. Assistant U.S. Attorneys Niki Tapia-Brito and David Adams are prosecuting the case.
Kankakee Man Sentenced to 10 Years in Prison for Plotting Murder-for-hire of Ex-wifeRead the Press Release
Urbana, Ill. – A Kankakee, Ill., man, Joshua N. Bisping, 33, has been ordered to serve 10 years in federal prison for his engagement in a murder-for-hire plot against his ex-wife, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Harold Baker today sentenced Bisping to the statutory maximum sentence and ordered that Bisping remain on supervised release for three years following his release from prison. Bisping was also ordered to have no direct contact with the victim.
On May 29, 2014, Bisping pled guilty to use of interstate commerce facilities in commission of a murder-for-hire plot. One year earlier, in late May 2013, Bisping attempted to hire an individual to kill his ex-wife. The individual introduced Bisping to an undercover ATF agent posing as a hit man. Following the meeting, Bisping met in person with the undercover agent on at least three occasions which were video and audio recorded. During the meetings, Bisping discussed paying the undercover agent $5,000 to murder his ex-wife and to make it look like a robbery gone bad. Bisping and the agent discussed Bisping’s obtaining a picture of his ex-wife for the agent, establishing an alibi for the time of the murder, and, if questioned by police, Bisping’s denial of any knowledge of the murder-for-hire plot. After one meeting, Bisping and the agent drove by the ex-wife’s residence so the agent would know where she lived.
Bisping was arrested in early June 2013, and has remained in the custody of the U.S. Marshals Service since his arrest.
The case was investigated by the Kankakee Area Project Safe Neighborhoods Task Force; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Kankakee Police Department; and the Kankakee County State’s Attorney’s Office. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.
Justice Department Settles Immigration-Related Discrimination Claim Against a Georgia Construction CompanyRead the Press Release
The Justice Department announced today that it reached an agreement with Constructor Services Inc. (CSI), a construction company headquartered in the Atlanta, Georgia metropolitan area. The agreement resolves a claim that the company engaged in discriminatory documentary practices during the employment eligibility verification process in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that CSI required non-U.S. citizens, but not similarly-situated U.S. citizens, to produce specific documentary proof of their immigration status for the purpose of verifying their employment eligibility. The INA’s anti-discrimination provision prohibits employers from making additional and unauthorized documentary demands based on citizenship status or national origin when verifying or re-verifying an employee’s employment eligibility.
“Employers must make sure that they are not erecting unlawful discriminatory barriers in their employment eligibility verification policies and practices,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The division is committed to identifying and tearing down these illegal barriers.”
Under the settlement agreement, CSI will pay $18,000 in civil penalties to the United States, undergo training on the anti-discrimination provision of the INA, revise its employment eligibility reverification policies, and be subject to monitoring of its employment eligibility verification practices for twenty-four months.
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) within the Justice Department is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Jacksonville Florida Man Pleads Guilty to Extortion and Possession of Child PornographyRead the Press Release
A Jacksonville, Florida man, pleaded guilty today to extortion and possession of child pornography, United States Attorney Barbara McQuade announced.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office.”
Syed Ibrahim Hussain, 34, entered his guilty plea before United States District Judge Victoria A. Roberts.
Information provided to the court at the guilty plea proceeding showed that from December, 2012, to April, 2013, Hussain was residing at various hotels near Detroit. During this time, Hussain sent text messages to a woman demanding that she marry him or he would kidnap, rape, strangle and burn her. When Hussain was arrested in April, 2013, it was discovered that he was electronically tracking the woman using global positioning system trackers he had secretly placed on her car. Hussain was also in possession of multiple sets of hand-cuffs and leg irons, duct tape, a bullet proof vest, a shotgun, and a taser, among other items. A search of Hussain’s lap top computer also revealed that he was in possession of multiple videos and images of child pornography.
"With today's technology, determined stalkers have the ability to constantly communicate with and locate their victims." McQuade said. "We are grateful for the diligence of the law enforcement officers who intervened before the defendant could act on his threats."
“This case serves as an example of highly effective, proactive collaboration between federal, state, local and foreign law enforcement,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The collective efforts in this investigation halted Mr. Hussain’s criminal threats and disrupted his planned violent actions.”
Under the terms of the plea agreement, Hussain will serve 63 to 78 months in prison, register as a sex offender, and be fined up to $250,000. Sentencing is scheduled for February 24, 2015 at 10 a.m..
Investiture Ceremony Set for U.S. Attorney Damon P. MartinezRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez will take the Oath of Office at 3:00 p.m., Friday, Oct. 17, 2014, during an investiture ceremony at the U.S. District Courthouse, 333 Lomas Blvd. NW, Albuquerque, N.M. The ceremony will take place in the Rio Grande Courtroom.
Chief Judge M. Christina Armijo of the U.S. District Court for the District of New Mexico will preside over the investiture ceremony, and Senior U.S. District Judge James A. Parker will administer the Oath of Office to U.S. Attorney Martinez. Guest speakers will be Senator Tom Udall and Acting Assistant Attorney General Molly J. Moran of the Justice Department’s Civil Rights Division. The invocation will be given by Antonio Chewiwi, Jr., 1st Lt. Governor of the Pueblo of Isleta. Solo vocal renditions of The National Anthem and America the Beautiful will be presented by Ross Daugherty, who will be accompanied by cellist Kristin Daugherty.
U.S. Attorney Martinez was appointed to his post by President Barack Obama upon the recommendation of Senators Tom Udall and Martin Heinrich. He has served as an Assistant U.S. Attorney in the District of New Mexico since 2001, most recently serving as the First Assistant U.S. Attorney and before that as the Supervisor of the Organized Crime Section. As a federal prosecutor, his experience has focused on complex drug cases, immigration cases, and national security and anti-terrorism matters. From 1996 to 1998, he was an Assistant Attorney General in the New Mexico Attorney General’s Office. Additionally, he has served as a Special Assistant District Attorney in three Judicial Districts in the State of New Mexico.
U.S. Attorney Martinez serves as the top federal law enforcement official in New Mexico and represents the United States’ interests in civil cases. He leads an office of 84 Assistant U.S. Attorneys, three Special Assistant U.S. Attorneys, 75 support staff and 20 contract employees working in offices in Albuquerque and Las Cruces, N.M.
A native of New Mexico, Mr. Martinez received a Bachelor of Arts degree in both Economics and Political Science in 1989, a Juris Doctor in 1992, and a Master of Business Administration in 1993, all from the University of New Mexico.
Idaho Falls/St. Anthony Woman Indicted for Investment Fraud SchemeRead the Press Release
BOISE – Lois Davis, 59, of Idaho Falls, and formerly of St. Anthony, Idaho was indicted yesterday by the federal grand jury for six counts of wire fraud, three counts of money laundering, and forfeiture of proceeds of the crimes, U.S. Attorney Wendy J. Olson announced.
The indictment charges Davis with devising a scheme to defraud and fraudulently representing to investors that they could invest money with Davis in order to be entitled to a portion of commissions that Davis claimed she would receive on significant financial transactions. Davis accepted investors’ money under this false pretense, and then spent investors’ money on her personal expenditures, such as horses and trucks. The indictment alleges that none of the investors received their promised return on investment and that Davis accepted approximately $2.1 million dollars in investor funds, refunded to investors approximately $330,000, and kept approximately $1.8 million in fraudulently-obtained investor funds.
Wire fraud is punishable by up to 20 years in prison, a $250,000 fine, and three years of supervised release. Money Laundering is punishable by up to ten years in prison, a $250,000 fine, and three years of supervised release.
The case was investigated by the Federal Bureau of Investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Husband and Wife Plead Guilty to Social Security FraudRead the Press Release
ALBANY, NEW YORK – SCOTT J. BORNT, 53, and his wife GERI MONDLIN-BORNT, 50, formerly of Gloversville, New York, each pled guilty yesterday in Albany to one count of social security fraud before Senior United States District Court Judge Thomas J. McAvoy announced United States Attorney Richard S. Hartunian and Special Agent in Charge Edward J. Ryan of the Social Security Administration, Office of Inspector General, Office of Investigations, New York Field Division. They face up to five years in prison and fines of up to $250,000. Sentencing is scheduled on February 9, 2015 in Albany, New York.
As part of their guilty pleas, BORNT and MONDLIN-BORNT admitted that they made false statements to the Social Security Administration to obtain disability insurance benefits payments to which they were not entitled. Specifically, they did not disclose income earned from their trucking business. As a result of their false statements, BORNT received $314,650 of fraudulent payments over six years, and MONDLIN-BORNT received $88,120 of fraudulent payments over seven years.
The case was investigated by the Social Security Administration, Office of Inspector General, with the assistance of the United States Secret Service.
Human Trafficker Gets Life in PrisonRead the Press Release
Follow @NDFLNewsPANAMA CITY, FLORIDA –Jacobo Feliciano-Francisco, a/k/a “Kiko”, age 32, was sentenced in United States District Court yesterday to spend the remainder of his life in prison after he was convicted of kidnapping, retaliating against a witness, conspiracy, and transportation and of an individual in interstate commerce for prostitution. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The female victim in this case had previously cooperated with the FBI after being forced and coerced by others to work as a prostitute between 2009 and 2011. Due to that cooperation, a total of 13 individuals were convicted in Tennessee and Kentucky of various federal sex-trafficking and prostitution criminal charges. Following her cooperation with law enforcement, the victim and her family were relocated to Panama City Beach, Florida, out of concern for their safety.
In retaliation for her cooperation as a prior Federal witness, Feliciano-Francisco and others tracked down her location, repeatedly threatened the physical safety of both her and her family, kidnapped her, and transported her to a brothel in Hattiesburg, Mississippi, with the intent that she would be forced back into prostitution. During her kidnapping, Feliciano-Francisco not only verbally threatened and intimidated the victim, but he physically terrorized and humiliated her when he sexually assaulted her. After arriving in Hattiesburg, the victim escaped Feliciano-Francisco and led police back to the brothel where he was arrested.
“Prosecuting human traffickers is a top priority for this U.S. Attorney’s office and the Department of Justice,” said U.S. Attorney Marsh. “Congress has given us strong laws to go after this heinous crime, which is often difficult to find and prove because traffickers enforce silence among their victims through coercion and violence, as happened in this case. Despite those threats, however, the victim showed tremendous bravery in coming forward to help bring this defendant to justice. We commend her for her courage and pledge to continue this important fight against this modern form of slavery.”
This conviction results from an investigation by agents of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Hattiesburg Police Department, and was prosecuted by Assistant United States Attorney Katy Risinger.
Henderson Doctor Arraigned on Drug Distribution ChargesRead the Press Release
LAS VEGAS, Nev. – Mahesh Kuthuru, M.D., 46, of Henderson, Nev. was arraigned by a federal magistrate judge this afternoon and pleaded not guilty to felony drug distribution charges that he unlawfully sold highly addictive prescription painkillers to persons who did not have a medical necessity for them, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Kuthuru is charged in a criminal indictment with nine counts of unlawful distribution of controlled substances. If convicted, he faces not more than 20 years in prison and a fine of up to $1 million. U.S. Magistrate Judge Cam Ferenbach released Kuthuru on a personal recognizance bond pending trial.“Deaths from drug overdose, the majority from pharmaceuticals, have been rising steadily over the past two decades and have now become the leading cause of injury death in the United States,” said U.S. Attorney Bogden. “The number of overdose deaths combined with the costs to the workplace and healthcare and criminal justice systems, is cause for great alarm. We will continue to prosecute doctors who are contributing to this enormous problem.”
According to the indictment, Kuthuru is a licensed physician in Nevada who represents himself to be a specialist in pain management. Kuthuru operates Desert Pain Management which has occupied various locations on Charleston Boulevard in Las Vegas. Beginning on a date unknown and continuing through at least 2013, Kuthuru allegedly sold prescriptions for large quantities of highly addictive frequently diverted prescription drugs, including oxycodone, morphine sulfate and methadone without medical necessity.
This case is being investigated by the Nevada High Intensity Drug Trafficking Area (Nevada HIDTA) Pharm-Net Task Force, including the DEA, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Henderson Police Department, North Las Vegas Police Department, and the Nevada Division of Investigations, and is being prosecuted by Assistant U.S. Attorney Crane M. Pomerantz.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Harrisburg Man Pleads Guilty to Conspiracy to Defraud the IRS of Approximately $1 Million in Employment TaxesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Vanny Son, 33, Harrisburg, Pennsylvania, pleaded guilty today before U.S. District Court Judge John E. Jones III to conspiracy to defraud the IRS of approximately $1 million in employment taxes between 2006 and 2012.
According to U.S. Attorney Peter Smith, Son and a co-conspirator operated five employee leasing companies which supplied day laborers to several businesses in the Harrisburg area.
The employee leasing companies were known as V&S Services, Industrial Labor Services, Advance Labor Services, HD Staffing Services and TD Staffing. Between 2006 and 2012, these five businesses paid cash wages of more than $7 million to their employees without withholding any employment taxes, such as social security and Medicare taxes. As a result, approximately $1 million in employment taxes were not collected and paid to the IRS, as required by federal law.
Son was indicted by a grand jury on July 10, 2014 along with Son Thach and Hung Danh, also of Harrisburg. Thach pled guilty on September 24, 2014 and Danh remains a fugitive.
Son faces up to five years’ imprisonment, a $250,000 fine and up to three years’ supervised release as well as restitution to the IRS as a result of the guilty plea. No date has been set for sentencing.
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.
The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
Gulfport Man, Darryl Williams, Pleads Guilty to Drug Conspiracy and Gun ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRYL WILLIAMS, age 26, a resident of Gulfport, Mississippi, pled guilty today to an indictment charging him with conspiracy to possess with intent to distribute cocaine hydrochloride and being a felon in possession of a firearm.
According to the indictment, beginning on a date unknown and continuing until on or about May 21, 2014, WILLIAMS knowingly combined, conspired, confederated and agreed with persons known and unknown, to distribute and possess with the intent to distribute five hundred grams or more of cocaine hydrochloride. Also, on May 21, 2014, WILLIAMS, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting interstate commerce, a Ruger Model SR40C, .40 caliber semiautomatic handgun.
On the drug count, WILLIAMS faces a minimum term of imprisonment of five years, a maximum term of imprisonment of forty years, a fine of $5,000,000.00, four years of supervised release after imprisonment, and a $100.00 special assessment. On the gun count, WILLIAMS faces a maximum term of imprisonment of ten years, a fine of $250,000.00, three years of supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for February 26, 2015.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Andre’ Jones is in charge of the prosecution.
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Four Prosecutors Receive Attorney General Awards for Somali Pirates CaseRead the Press Release
ALEXANDRIA, Va. – Attorney General Eric Holder presented four Justice Department prosecutors with Attorney General Awards at a ceremony yesterday in Washington, D.C., in recognition of the team’s outstanding work in securing the convictions of multiple defendants for engaging in piracy off the coast of Somalia.
“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.”
“This prosecution demonstrates our commitment to obtaining justice for victims of piracy affecting the United States and the international community, and it sends a strong message that Somali pirates and their land-based leaders are not beyond the reach of U.S. and international law,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to commend the prosecution team, along with our investigative partners and legal support staff, for their ground-breaking work in securing these important convictions.”
The John Marshall Award for Trial of Litigation was presented to Managing Assistant U.S. Attorney Benjamin L. Hatch and Assistant U.S. Attorneys Joseph E. Depadilla and Brian J. Samuels of the Eastern District of Virginia, along with Trial Attorney Paul G. Casey from the Justice Department’s National Security Division, for their performance in prosecuting 14 sea-based Somali pirates and one land-based Somali pirate leader for their role in the capture and murders of four Americans onboard the sailboat Quest on Feb. 22, 2011.
These prosecutions resulted in two separate trials, one involving defendant Mohammad Saaili Shibin, followed by a two-month capital trial involving three defendants (Ahmed Muse Salad, Abukar Osman Beyle, and Shani Nurani Shiekh Abrar).
Shibin was the first Somali-based pirate leader ever brought to trial in the United States, and his case was the first time that U.S. piracy laws had ever been applied to a person who did not himself go onto the high seas to commit violent acts of piracy, but rather, facilitated those acts from the relative safety of Somalia. The prosecution team secured convictions on all counts and Shibin was sentenced to serve more than 12 life sentences.
In the second trial, all three defendants who were found guilty on 26 counts of the indictment. The district court subsequently imposed 19 consecutive life sentences, two concurrent life sentences, and a 30-year consecutive term in prison for each defendant.
These annual awards recognize Justice Department employees and other individuals for their dedication to carrying out the Department’s mission. The John Marshall Awards are the Department’s highest awards offered to attorneys, for contributions and excellence in specialized areas of legal performance.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.
Foundry Owner Sentenced to 30 Months in Prison for $11 Million Scheme to Sell Fake Sculptures Attributed to Jasper Johns and Other Prominent ArtistsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that BRIAN RAMNARINE was sentenced in Manhattan federal court to 30 months in prison for fraudulently selling and attempting to sell, for more than $11 million, bronze sculptures that he falsely represented to be works of art by prominent artists Jasper Johns, Robert Indiana, and Saint Clair Cemin. RAMNARINE pled guilty in January 2014, on the fifth day of trial, before U.S. District Judge John G. Koeltl, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Brian Ramnarine’s only art was as a con artist who concocted and carried out not one, but three separate schemes to peddle fake sculptures to unsuspecting buyers for millions of dollars, pretending that they had been made by well-known artists. I would like to thank the Federal Bureau of Investigation, the Police Department of the Port Authority of New York and New Jersey, and the New York State Police for their assistance on this case.”
According to the Indictment, to which RAMNARINE pled guilty, evidence presented at trial, and statements made in Manhattan federal court:
In 1960, Jasper Johns created a painting titled “Flag,” which he gave to fellow artist and friend Robert Rauschenberg. Years later, Johns made a mold (the “Flag Mold”) from that painting in order to make a sculpture. In 1990, Johns provided the Flag Mold to RAMNARINE, who owned a Queens, New York, foundry. Johns instructed RAMNARINE to use the Flag Mold to make a wax cast. RAMNARINE completed the wax cast and gave it to Johns, but never returned to Johns the Flag Mold from which the wax cast was made.
In 2010, RAMNARINE began representing to various members of the art world that he owned a bronze sculpture, titled “Flag,” that was an authorized Jasper Johns work of art created in 1989 (the “Purported 1989 Bronze Sculpture”). In an effort to identify a purchaser for the Purported 1989 Sculpture, he showed it to a representative of an auction house who specialized in the sale of rare art, and to an art dealer. Around the same time, RAMNARINE also attempted to sell the Purported 1989 Bronze Flag directly to an art collector. At RAMNARINE’s direction, several art brokers were in frequent contact with the art collector, and with the art collector’s representative, regarding the possible sale of what was represented to be a genuine and authorized Jasper Johns work of art. Through an art broker to whom RANMARINE had shown the Purported 1989 Bronze Sculpture, RAMNARINE informed the art collector’s representative that he would sell it for approximately $11 million.
After the art collector expressed doubts about the authenticity of the Purported 1989 Bronze Sculpture, RAMNARINE provided false and fraudulent documents and information in an effort to deceive the art collector into believing that the artwork was genuine. For example, RAMNARINE stated that the Purported 1989 Bronze Sculpture was a gift from Johns. To support that assertion, RAMNARINE provided an art broker with a letter dated August 23, 1989, purportedly from Johns, along with other documents that falsely and fraudulently reflected that the Purported 1989 Bronze Sculpture was a genuine Johns work of art, and that it was owned by RAMNARINE.
In truth, the Purported 1989 Bronze Sculpture was a fake. Johns never authorized its production nor did he transfer ownership to RAMNARINE. Instead, against Johns’s earlier instructions and without authorization, RAMNARINE used the original Flag Mold provided by Johns to make the Purported 1989 Bronze Flag, dated it “1989,” and forged Johns’s signature on the back of the sculpture.
RAMNARINE was arrested in November 2012 on charges arising from his attempt to sell the Purported 1989 Bronze sculpture. Shortly after his arrest and while he was on bail, RAMNARINE engaged in two new schemes to defraud an online art gallery located in Queens (the “Gallery”). In particular, RAMNARINE sold to the Gallery two fake sculptures, titled “Two” and “Orb,” that he falsely claimed had been made and authorized by Robert Indiana, and numerous fake sculptures that he falsely claimed had been made and authorized by Saint Clair Cemin. The Gallery paid RAMNARINE tens of thousands of dollars for the phony sculptures.
In addition to the prison sentence, RAMNARINE, 60, of Queens, New York, was sentenced to three years of supervised release, and ordered to forfeit $34,250 and the fake sculptures and to pay $34,250 in restitution to his victims.
Mr. Bharara praised the Federal Bureau of Investigation for its outstanding work in the investigation. He also thanked the Port Authority of New York/New Jersey Police Department and the New York State Police for their assistance.
The case is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office. Assistant United States Attorney Daniel B. Tehrani is in charge of the prosecution.
Fort Walton Beach Man Sentenced to Prison AndRead the Press Release
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ORDERED TO PAY $1.2 MILLION IN RESTITUTION
FOR TAX CRIMES, MAIL FRAUD, AND CONSPIRACPENSACOLA, FLORIDA – Douglas Edward Henderson, 52, of Fort Walton Beach, Florida, was sentenced yesterday evening to prison and ordered to pay over $1.2 million in restitution following his guilty plea to an Information that charged five counts of submitting a false tax return, two counts of aiding in the preparation of a false tax return, one count of mail fraud, and one count of conspiracy to commit mail and wire fraud. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The charges were the result of an investigation by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Tiffany Eggers.
The government’s evidence showed that Henderson, as the president of Henderson Electric Heat and Air Conditioning and Henderson Electric, Inc., both located in Okaloosa County, Florida, caused over $1.8 million in personal expenses to be paid from the business accounts for the years 2008 through 2010 and caused their false classification as business expenses associated with contracts between his companies and MacDill Air Force base. These items were then falsely deducted on corporate tax returns and the personal income was never reported on Henderson’s individual income tax returns.
The government’s evidence further showed that while Henderson knew he was the subject of a federal grand jury investigation, he engaged in a fraudulent short sale of his condominium located in Miramar Beach, Florida, using a family trust and the cooperation of Henderson Electric’s then chief financial officer.
Chief U.S. District Court Judge M. Casey Rodgers sentenced Henderson to 15 months in prison followed by three years of supervised release, the first six months of which must be served on home confinement. Judge Rodgers also ordered Henderson to pay $779,122 in restitution to the Internal Revenue Service and $449,061 to the mortgage lender defrauded during the short sale.Fort Thompson Man Found Guilty of Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Santana Drapeau, age 22, of Fort Thompson, South Dakota, was convicted of two counts of Domestic Assault by a Habitual Offender and one count of Simple Assault as a result of a 2-day federal jury trial in Pierre, South Dakota. The guilty verdict was returned on October 10, 2014.
The Defendant was found not guilty of assault by strangulation.
Each habitual domestic assault conviction carries a maximum penalty of 5 years of imprisonment and/or a $250,000 fine. The simple assault conviction carries a maximum penalty of 1 year imprisonment and/or a $100,000 fine.
The conviction stems from incidents occurring on May 18, 2014, in which Drapeau assaulted his spouse and intimate partner at two different locations, by hitting the victim in the face at a bonfire and physically assaulting her at a residence. Drapeau committed these two assaults at a time when he had three final convictions in Crow Creek Sioux Tribal Court for domestic violence against the same victim.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
A presentence investigation report was ordered, and a sentencing date was set for December 22, 2014.
Drapeau was remanded to the custody of the U.S. Marshals Service pending sentencing.
Former Williamson Mayor and Bank of Mingo Official Sentenced for Lying to Federal AgentsRead the Press Release
Charleston, W.VA. – The former Mayor of Williamson, A. Darrin McCormick, was sentenced to three years of probation and a fine of $5,000 for making a materially false statement to the FBI in February 2013. McCormick lied to federal agents in the course of an investigation of suspicious banking activity by Aracoma Contracting, LLC.
In addition to being the Mayor of Williamson, McCormick was a bank manager for the Bank of Mingo in Williamson. Aracoma, a contract labor company in Williamson, had a line of credit at the Bank of Mingo. Federal agents were investigating a series of suspicious cash withdrawals by two of the principals of Aracoma, Jerome Edward Russell and Frelin R. Workman. Banks are required by federal law to report all cash transactions involving more than $10,000 to the IRS. Russell, Workman and others, regularly withdrew cash from the Bank of Mingo in amounts less than $10,000 to prevent triggering the reporting requirement and evade the payment of payroll taxes. This practice, known as “structuring” is a federal crime.
On February 19, 2013, special agents of the FBI and IRS asked McCormick if he was aware that multiple Aracoma employees had come into the Bank of Mingo at the same time to withdraw cash. McCormick denied knowledge of Aracoma’s structuring practices, though he was well aware of them.
After the sentencing, U.S. Attorney Booth Goodwin commented, “Lying to federal investigators is always a serious crime, but when a public official lies in a federal criminal inquiry, it’s especially disappointing. To put it simply, this defendant knew better. He was a high-ranking bank executive and the mayor of Williamson. The bank misconduct that he lied about allowed others to commit crimes including bribery and large-scale fraud. Instead of helping uncover and stop those crimes, he lied to help cover them up.” McCormick pled guilty in May 2014.
The FBI and IRS, assisted by the West Virginia State Police and FDIC, handled the investigation and prosecution of McCormick .
Former Hughestown Borough Police Officer Sentenced to 30 Months’ ImprisonmentRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that that United States District Court Judge Malachy E. Mannion has sentenced Robert F. Evans, Jr., age 39, of Moosic, Pennsylvania, to 30 months’ imprisonment. On July 15, 2014, Evans pleaded guilty to a one-count Criminal Information charging that he distributed oxycodone on numerous occasions between August 2012 and July 29, 2013. At the time of the offense, Evans was employed as a police officer with the Hughestown Borough Police Department.
According to United States Attorney Peter Smith, at the guilty plea hearing, Evans acknowledged distributing approximately 750 oxycodone pills during the scheme. He also admitted abusing his position of trust as a police officer which significantly facilitated and concealed the offense.
In addition to the imprisonment term, Judge Mannion ordered that Evans serve a three-year term of supervised release after completion of his prison sentence.
The case was investigated by special agents of the Federal Bureau of Investigation. Assistant U.S. Attorney John Gurganus prosecuted the case.
Former Hedge Fund Analyst Sentenced to Five Years in Prison for Participating in Insider Trading SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MATTHEW TEEPLE, a former analyst for San Francisco-based hedge fund Artis Capital Management, L.P. (“Artis”), was sentenced today to five years in prison for participating in an insider trading scheme that yielded tens of millions of dollars in ill-gotten gains. When he pled guilty in May 2014, TEEPLE admitted that in 2008 he repeatedly gathered and passed to Artis inside information about Foundry Networks, Inc. (“Foundry”), a technology company located in Santa Clara, California, which he had obtained from David Riley, Foundry’s Chief Information Officer at the time. This inside information included the fact – before it became public on July 21, 2008 – that Brocade Communications, Inc. (“Brocade”) was planning to acquire Foundry. On October 2, 2014, following a 13-day jury trial before U.S. District Judge Valerie E. Caproni, Riley was convicted of crimes related to his role in the scheme with which he and TEEPLE were charged together. TEEPLE’s sentence today was imposed by U.S. District Judge Robert P. Patterson, who accepted TEEPLE’s guilty plea in May.
Manhattan U.S. Attorney Preet Bharara said: “Matthew Teeple flagrantly and repeatedly traded on inside information he received from a Foundry Networks, Inc. insider and convicted tipster, David Riley. With today’s sentence, Teeple joins a growing group of professionals who have forfeited their freedom for making a mockery of market rules.”
According to the agreement pursuant to which TEEPLE entered his plea of guilty, other documents filed in Manhattan federal court, and statements made during court proceedings:
From 2005 and continuing through 2008, TEEPLE gathered from Riley sensitive, nonpublic information about Foundry – specifically, its monthly and quarterly sales data and secrets relating to its impending acquisition by Brocade. As CIO and a Vice President at Foundry, Riley had access to Foundry’s sales performance numbers well before they became public and – along with only a handful of other Foundry employees – learned of the Brocade deal before it was announced publicly. TEEPLE gathered these sales- and Brocade-related secrets from Riley over the telephone and in meetings the two held in the San Jose, California, area. On several occasions, TEEPLE spoke with Riley while Riley was logged into the database that Foundry used to maintain sensitive financial information.
TEEPLE passed the inside information he received from Riley on to others, including others at Artis. From the inside information TEEPLE provided about Foundry, Artis ultimately reaped gains and avoided losses of over $36 million.
In addition to the prison sentence he received today, TEEPLE, 43, of San Clemente, California, was sentenced to one year of supervised release. TEEPLE was also ordered to forfeit $553,890.00 in illegal proceeds and to pay a $100,000 fine. Restitution will be determined at a later date.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Telemachus P. Kasulis and Sarah E. McCallum, and Special Assistant U.S. Attorney Michael P. Holland, are in charge of the prosecution.
Former FBI Ten Most Wanted Fugitive Pleads Guilty to MurderRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Juan Garcia, also known as “Cruzito,” a member of La Mara Salvatrucha, also known as the MS-13 street gang, pled guilty to murder in aid of racketeering. During the guilty plea allocution, Garcia admitted that he and another MS-13 member shot and killed 19-year-old Vanessa Argueta, and a third MS-13 member executed her two-year-old son, Diego Torres, in Central Islip, New York, on February 5, 2010. As detailed in prior court proceedings and filings, after committing the murders, Garcia and his co-conspirators, Adalberto Ariel Guzman (“Gringo”) and Rene Mendez Mejia (“Zorro”), fled to El Salvador. Garcia was a fugitive for over four years until March 2014, when, after being placed on the FBI’s Ten Most Wanted Fugitives List, he surrendered to law enforcement authorities in Nicaragua, waived extradition, and was returned to the United States for prosecution.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Thomas C. Krumpter, Acting Commissioner of the Nassau County Police Department.
“After cold-bloodedly executing a young mother and her two-year-old child, Garcia and his fellow MS-13 members fled to El Salvador. For over four years, Garcia was able to evade justice, hiding out in different parts of Central America. However, thanks to the tenacious efforts of the FBI’s Long Island Gang Task Force and FBI components around the world, Garcia was captured, returned to the United States, and held accountable for his reprehensible acts. He will now be held accountable for his allegiance to the killing machine known as MS-13,” stated United States Attorney Lynch. Ms. Lynch expressed her sincere gratitude to the members of the FBI’s Long Island Gang Task Force, the FBI’s Violent Criminal Threat Section, and the FBI’s Legal Attaches for El Salvador and Panama, for their unwavering commitment to bring Garcia and his co-conspirators to justice for the Argueta and Torres murders.
FBI Assistant Director-in-Charge Venizelos stated, “The MS-13 street gang is infamous for its senseless and depraved acts of violence, but even for the MS-13, these vicious crimes demonstrated exceptional immorality. Stopping at nothing to seek retribution, Garcia and other gang members lured Argueta and her two-year-old son into a secluded wooded area where retribution took the form of murder. After more than four years on the run, Garcia finally faces the justice he couldn’t escape. Today’s guilty plea should remind these exceedingly violent criminals that we remain committed to working with our local, state, national, and international partners to disrupt and dismantle this violent gang.”
As established at prior court proceedings, Garcia and other MS-13 members, including MS-13 leader, Heriberto Martinez, also known as “Boxer,” Guzman, and Mejia plotted to kill Argueta because they believed she had disrespected the MS-13 by sending rival gang members to attack Garcia. On February 4, 2010, when Garcia, Guzman, and Mejia planned to kill Argueta, she was with her son, and the MS-13 members decided to murder him as well. Garcia, Guzman, and Mejia lured Argueta and Torres into a secluded wooded area in Central Islip, where they executed the mother and child, shooting Argueta in the head and chest, and Torres twice in the head. Specifically, the evidence establishes that Garcia and Mejia shot and killed Argueta, while Guzman fired the two fatal shots to Torres’s head. After they murdered Argueta and Torres, Garcia, Guzman, and Mejia fled to El Salvador.
Garcia’s three co-conspirators, Martinez, Guzman, and Mejia were also arrested and indicted in connection with the Argueta and Torres murders. Martinez was convicted in March 2013, following a six-week trial, and later sentenced to life in prison, plus 60 years. Guzman was convicted in September 2013, following a three-week trial, and later sentenced to life in prison, plus 35 years. Mejia pled guilty to the murders and is pending sentence.
The convictions of Garcia and his codefendants are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador and Honduras. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2003, more than 250 MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 150 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 20 murders in the Eastern District of New York, and has convicted more than 35 MS-13 members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, and Suffolk County Police Department.
When Garcia is sentenced by United States District Judge Joseph F. Bianco, which is currently scheduled for February 6, 2015, he faces a sentence of up to life in prison.
The government’s case is being prosecuted by Assistant United States Attorneys John J. Durham and Raymond A. Tierney.
The Defendant:
JUAN GARCIA, also known as “Cruzito”
Baldwin and Inwood, New York
Age: 21
Former Executive of Japanese Automotive Parts Manufacturer Indicted for Role in Conspiracy to Fix PricesRead the Press Release
A Cincinnati federal grand jury returned a one-count indictment against a former executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to allocate markets and fix prices of pinion-assist type electric powered steering assemblies, the Department of Justice announced today.
The indictment, filed yesterday in the U.S. District Court for the Southern District of Ohio charges Akira Wada, a former executive of Showa Corporation, with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate markets, and to fix, stabilize, and maintain the prices of pinion-assist type electric powered steering assemblies sold to Honda in the United States and elsewhere. Wada was the Manager and then General Manager of Sales Department 1 at Showa from at least as early as 2003 until at least June 2009. In 2013 Wada became a Director and Operating Officer of Showa.
“Yesterday’s indictment again demonstrates that antitrust violations are not just corporate offenses but also crimes by individuals,” said Bill Baer, Assistant Attorney General for the Antitrust Division. “The division will continue to vigorously prosecute executives who circumvent the law in order to maximize profits by harming consumers.”
The indictment alleges, among other things, that from at least as early as 2007 and continuing until at least September 2012, Wada and his co-conspirators participated in meetings, conversations, and communications to discuss the market allocation scheme and price quotations to be submitted to Honda in the United States and elsewhere. It alleges that Wada and his co-conspirators submitted price quotations in accordance with the agreements reached at these meetings. Wada also directed, authorized, or consented to the participation of subordinate employees in the price fixing conspiracy.
Showa is a Japanese company with its principal place of business in Saitama, Japan. Showa was engaged in the business of manufacturing and selling pinion-assist type electric powered steering. On June 10, 2014, Showa pleaded guilty and agreed to pay a $19.9 million criminal fine for its role in the conspiracy.
Including Wada, 44 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing and bid rigging in the auto parts industry. Twenty-six of these individuals have pleaded guilty and have been sentenced to serve prison terms ranging from a year and one day to two years. Additionally, 29 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of nearly $2.4 billion in fines.
Wada is charged with market allocation and price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Yesterday's indictment is the result of an ongoing federal antitrust investigation into market allocation, price fixing, bid rigging, and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Cincinnati Field Office at 513-421-4310.
Former Engineer at Two Global Medical Technology Corporations Sentenced to 18 Months in Prison for Theft of Trade SecretsRead the Press Release
TRENTON, N.J. – An engineer who formerly lived in Mahwah, New Jersey, was sentenced today to 18 months in prison for stealing trade secrets from two global medical technology companies based in northern New Jersey, U.S. Attorney Paul J. Fishman announced.
Ketankumar Maniar, 38, aka “Ketan Maniar,” previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with two counts of theft and attempted theft of trade secrets for his own economic benefit. Maniar, an Indian national, has been in custody since his June 2013 arrest. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
C.R. Bard Inc. (Bard), based in Murray Hill, New Jersey, and Becton, Dickinson and Co. (BD), based in Franklin Lakes, New Jersey, are among the world’s leading manufacturers of medical technologies. From November 2004 until his resignation on Jan. 22, 2011, Maniar worked as an engineer at Bard’s Salt Lake City facility and was responsible for developing molding processes and specifications for catheters, ports and other medical products. From February 2012 until his resignation on May 24, 2013, Maniar worked as a staff engineer at BD’s Franklin Lakes headquarters, where he helped manufacture pre-fillable syringes and pen injectors.
Through his work at Bard and BD, Maniar was able to steal secret information related to the companies’ products, including Bard’s development of the first implantable port used for power injection of pharmaceutical drugs throughout the body. Maniar also had access to secret information related to a self-administered disposable pen injector still under development by BD and not yet available for commercial sale.
Maniar admitted he stole Bard and BD trade secrets that he kept after his resignation from those companies. Maniar downloaded numerous files containing Bard or BD product information from his work computers onto multiple computer storage devices, including external hard drives and thumb drives. He also used his work email accounts at Bard and BD to forward trade secrets to his personal email accounts.
On June 3, 2013, pursuant to court-issued federal warrants, FBI agents searched Maniar’s rental car and the New Jersey hotel room he stayed in while planning a move back to India. Agents seized – among other things – at least one hard drive containing Bard and BD trade secrets.
In addition to the prison term, Judge Pisano ordered Maniar to pay $32,454 in restitution to BD and ordered him to forfeit items used in furtherance of his crimes, including computers and storage devices.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, New Jersey, with the investigation leading to today’s sentencing. He also thanked BD and Bard for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark.
Defense counsel: Bradley L. Henry Esq. and Ryan Blanch Esq., New York
14-373Former Employee Charged with Defrauding Smucker of $4.1 MillionRead the Press Release
A former employee was charged with mail fraud for a 16-year scheme to defraud J.M. Smucker Company, of Orville, Ohio, of more than $4.1 million, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Mark R. Kershey, age 54, of Akron and formerly of Massillon, was employed as Smucker’s chief airplane mechanic at the Akron-Canton airport when, from approximately October 1997 through January 2013, he devised a false billing scheme using a fictitious entity he controlled, under the name of Aircraft Parts Services, Co., according to the one-count criminal information filed in federal court.
Kershey submitted false invoices to Smucker in the name of Aircraft Parts Services, which in all or nearly all instances were for nonexistent parts and/or for purported outside services that he actually performed as part of his salaried employment duties. Kershey submitted most invoices in amounts less than $10,000, which he was authorized to approve. A supervisor approved a few larger invoices based on his trust in Kershey, according to the information.
Kershey maintained a P.O. Box under the fake company name in Greentown, Ohio, to receive checks mailed by Smucker in reliance on the fraudulent invoices. Kershey used the proceeds of his scheme for personal uses, including the purchase and maintenance of two airplanes, the purchase of several automobiles, and payments for his personal residence, according to the information.
The information describes Kershey’s efforts in late 2012 to deceive Smucker with respect to the final three checks payable to Aircraft Parts Services totaling $44,000, which Kershey had failed to negotiate. Kershey told the employee that Aircraft Parts Services had been sold to another Smucker vendor (referred to in the information as SAI), and submitted a letter to Smucker purportedly from SAI’s owner, that Kershey fabricated and forged, falsely confirming the purported sale to SAI. Smucker then issued replacement checks to SAI, that SAI deposited after discussion between Kershey and SAI’s owner.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
In addition, the information seeks forfeiture from Kershey of his two airplanes, three automobiles, and a truck, which are alleged to be proceeds traceable to his mail fraud scheme.
The case is being handled by Special Assistant United States Attorney John M. Siegel following investigation by the Federal Bureau of Investigation, Canton, Ohio.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Former Dallas Police Department Vice Detective ConvictedRead the Press Release
DALLAS — A detective who worked in the Dallas Police Department’s (DPD) Vice Unit, Jose Luis Bedoy, 40, of Dallas, was convicted yesterday by a federal jury on all four counts of an indictment charging obstruction of official proceedings and obstruction of the due administration of justice, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each of the three counts of obstruction of an official proceeding carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The one count of obstruction of due administration of justice carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Bedoy will remain on bond pending sentencing, which is set for February 2015, before U.S. District Judge Barbara M. G. Lynn.
Bedoy worked in DPD’s Vice Unit from November 28, 2007 through July 2013. The government presented evidence at trial that in early 2009, after a DPD Vice raid on an adult entertainment establishment, Bedoy met a female prostitute who worked at that establishment. Later, when she tried to reclaim property DPD seized during the raid, Bedoy assisted her.
Bedoy later contacted her and expressed an interest in seeing her and wanting a massage from her. A relationship ensued between the two and they began communicating, with Bedoy giving her advice on the adult entertainment establishments at which she could work. Bedoy later met her for a massage, and during the massage, he explained how to screen her clients to avoid being arrested. Bedoy and the female began an intimate relationship.
From 2009 until 2013, while they were engaged in a sexual relationship, Bedoy provided law enforcement-sensitive information to her about DPD Vice Unit prostitution raids and other enforcement actions. In January 2013, Bedoy met her at her residence and showed her a DPD investigative case file targeting “Wet,” an adult entertainment establishment, which he had brought with him. Two days later, Wet was raided, and after the raid, Bedoy arranged to meet her at her residence.
When the Coppell Police Department began an investigation of “Studio Serene,” an adult entertainment establishment, it enlisted the help of the DPD Vice Unit in its investigation. In March 2013, Bedoy advised the female that Studio Serene was being targeted and advised her against working there. Bedoy told her that the information was only for her benefit, but she relayed the information to Studio Serene’s owner. Based on that information, Studio Serene closed for a number of days.
After it reopened on April 25, 2013, however, the Coppell Police Department and the DPD Vice Unit raided Studio Serene. In subsequent interviews they conducted, members of the Coppell Police Department were informed that a DPD Vice Unit detective, named “Jose,” later identified as Bedoy, had “tipped off” the business weeks earlier about the pending raid.
On multiple occasions, Bedoy instructed the female on how to avoid being arrested while using Backpage.com for prostitution. He advised her to not only change her phone number every two weeks, but also advised her of the best days and times to work and the best days and times to avoid. On June 25, 2013, Bedoy contacted her to ensure that she wasn’t working Backpage.com during that week because DPD Vice was “working Backpage” that week. In fact, that same day, DPD Vice Unit, including Bedoy, and the FBI conducted a joint operation that was designed to deter prostitution by directing enforcement efforts at Internet-based prostitution.
As a result of Bedoy’s conduct, FBI and federal grand jury investigations were initiated. After learning of the investigation, Bedoy obstructed the federal grand jury proceeding by telling the female to move, to never give her real name if she is pulled over by law enforcement, to not let the FBI into her apartment to talk to her, and to change her cell phone so that there would be no link between them. Bedoy also lied to law enforcement about his contacts with the female and whether he provided her with sensitive law enforcement information.
The FBI and the DPD’s Public Integrity Unit investigated. Assistant U.S. Attorneys Errin Martin and P.J. Meitl prosecuted.
Former City of Buffalo Employee Sentenced for Stealing Thousands of Dollars from Parking metersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Franklin Lopez, 34, of Buffalo, N.Y., who was convicted of stealing thousands of dollars from the City of Buffalo, a Governmental agency which receives federal funding, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $69,000 in restitution.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was employed part time as a coin collector in the City of Buffalo Department of Parking Enforcement between 2002 and 2011. In this capacity, Lopez was responsible for collecting coins deposited into parking meters.
“This investigation demonstrated that what began as thefts of nickels and dimes, in the end cost taxpayers hundreds of thousands of dollars,” said U.S. Attorney Hochul. “In fact, since these defendants were removed from their positions, the City of Buffalo has seen an increase of over $700,000 in parking meter revenues. Let this case serve as a warning that we will continue to pursue any official who violates a duty to the public.”On August 16, 2011, Buffalo Police found over $1,300 in coins inside the defendant's work vehicle, money that was supposed to be deposited into the city treasury. Further investigation, including a review of Lopez's banking records, revealed a substantial amount of cash deposits and cash payments for a variety of items. Between November 2002 and August 2011, Lopez stole approximately $69,000 from city parking meters.
Lopez is the fourth employee of the Department of Parking Enforcement to be convicted and sentenced in this case. James Bagarozzo was convicted of stealing over $200,000 from Buffalo parking meters and sentenced to 30 months in prison. Bagarozzo was also ordered to pay $210,000 in restitution. Lawrence Charles has also been convicted of stealing over $10,000 from Buffalo parking meters and was sentenced to six months and prison and ordered to pay $15,000 in restitution. Francis Tronolone was convicted of stealing $9,000 in coins from city parking meters and was sentenced to six months in prison and ordered to pay $9,000 in restitution. The amount of money proven to be stolen by these convicted defendants exceeds $300,000.
The sentencing is the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Former Altamont, Illinois, Man Faces Federal Computer Harassment and Extortion ChargesRead the Press Release
Follow @SDILNewsA federal grand jury in Benton, Illinois, has charged Stephen B. Mislich, 23, of Bowling Green, Ohio, and formerly of Altamont, Illinois, with 4 counts of computer-related harassment and extortion offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The criminal complaint and indictment allege that Mislich engaged in a pattern of terrorizing women via “hacked” online accounts, misappropriating sexually oriented photos of these women and attempting to obtain further sexually oriented pictures and videos from the women by coercion and blackmail. Mislich faces up to 2 years in federal prison on each of the two extortion charges against him, and up to 5 years in federal prison on each of the two harassment charges against him. He also faces a potential $250,000 fine on each of the four counts against him. Upon his arrest, a Federal Magistrate Judge in the Northern District of Ohio ordered that Mislich be held without bond pending his trial on these charges.
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 case was investigated by the Federal Bureau of Investigation, the Effingham, Illinois, Police Department and the Effingham County Sheriff’s Department. Anyone who may believe that they are a potential victim of this case, or any other similar circumstance, is requested to call one of these law enforcement agencies for assistance. The case is assigned to Assistant United States Attorney Thomas E. Leggans.
Federal Grand Jury Charges San Angelo, Texas, Psychiatrist with 52 Counts of Health Care FraudRead the Press Release
LUBBOCK, Texas — A licensed psychiatrist, who submitted claims for services rendered to nursing home residents in San Angelo, Texas, and other communities in the counties surrounding Tom Green County, Texas, is in federal custody on charges that he defrauded Medicare and Medicaid of nearly $1.75 million, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Robert Hadley Gross, who is licensed by the Texas Medical Board with a primary practice in psychiatry, is charged in an indictment returned yesterday by a federal grand jury in Lubbock, Texas, with 52 counts of health care fraud. Gross was arrested yesterday evening at his office in San Angelo and is scheduled to make his initial appearance before a U.S. Magistrate Judge today in Abilene, Texas.
The indictment alleges that beginning in approximately January 2009 and continuing to approximately June 20, 2014, Gross ran a scheme to defraud Medicare and Medicaid, and other health insurance carriers, by filing claims for payment for services that were never rendered and for services that were billed using inappropriate CPT codes. When submitting a claim, the provider identifies the type of service performed in each submitted claim by means of a code for the type of service listed in the American Medical Association’s publication called the Current Procedural Terminology (CPT) Manual. This five-digit code dictates the amount of payment the provider receives for the rendered service.
In addition to regularly submitting claims for services rendered to nursing home residents, Gross also regularly submitted claims for services provided to clients of mental health and mental retardation (MHMR) organizations in San Angelo, Midland, and Abilene, Texas, in addition to claims for services rendered to patients in his office in San Angelo. In addition, during 2009 and 2010, Gross submitted claims for services provided to foster care children in Brownwood, Texas.
As part of his scheme, according to the indictment, Gross, for numerous dates of service, filed claims for services rendered which, for each of those dates, would entail Gross spending more time than his typical workday. In many instances involving his nursing home, MHMR and office patients, Gross upcoded claims for services for patients with whom he actually had contact. Upcoding is a fraudulent practice in which a provider claims a higher level CPT procedure code than was actually performed, resulting in a higher payment to the provider.
Gross, in numerous instances involving his nursing home patients, filed claims for services on dates he did not actually see the patients. In those instances, the patient may have been present at the nursing home at the time of his visit, or the patient may have died or been discharged before Gross’ visit.
Counts one through five of the indictment allege that Gross submitted claims to Medicaid and Medicare for services allegedly rendered on days in April and May 2014, to patients at MHMR and nursing home facilities, which Gross could not have rendered during the limited amount of time he was at the facilities.
Count six alleges that on March 20, 2013, Gross submitted a claim to Medicaid and Medicare for services allegedly rendered to a patient at a nursing home in San Angelo on the patient’s actual date of death, when, in fact, the patient had been discharged from the nursing home the previous day and admitted to the hospital where the patient died.
Counts seven through 52 allege that on various dates ranging from March 26, 2009, to July 20, 2012, Gross submitted claims to Medicare and Medicaid for services allegedly rendered after patients had died.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each of the 52 counts of health care fraud carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. In addition, the indictment includes a forfeiture allegation that would require Gross, upon conviction, to forfeit: 1) at least $1.75 million in a money judgment for the proceeds traceable to the commission of each offense; 2) approximately $3 million in cash seized from various bank accounts in San Angelo and in Ft. Washington, Pennsylvania, as well as from T. Rowe Price accounts; and 3) three parcels of real estate in San Angelo and Rockport, Texas.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, and Medicaid Fraud Control Unit, Office of the Texas Attorney General are investigating. Assistant U.S. Attorney Ann Cruce-Haag is handling the prosecution, and Assistant U.S. Attorney John de la Garza is handling the forfeiture.
FBI Seeks the Public’s Assistance in Locating Fugitive Wanted on Federal Criminal Charges and Offers up to $5,000 Reward for Information That Leads to His ArrestRead the Press Release
The FBI is seeking the public’s assistance in locating DARRELL BARHAM who is wanted for his alleged involvement in a heroin trafficking and distribution enterprise comprised of members and associates of the "Bricks R Us" street gang, which operated in Allegheny County, Pennsylvania. The FBI is offering a reward of up to $5,000 for information that leads to BARHAM’s arrest. The reward is available for 90 days.
A Federal arrest warrant was issued for DARRELL BARHAM on May 22, 2014, by the United States District Court, Western District of Pennsylvania, charging him with Conspiracy to Possess with Intent to Distribute and Distribution of One Kilogram or More of Heroin. BARHAM should be considered ARMED AND DANGEROUS AND AN ESCAPE RISK. A link to the wanted poster created for BARHAM is listed below.
“We know all too well the destructive effect that heroin and other drugs have on our neighborhoods,” said Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Field Office. “I encourage anyone with information concerning the whereabouts of BARHAM to call the Pittsburgh Division of the FBI at (412) 432-4000.”
On May 29, 2014, law enforcement personnel from over fourteen (14) federal, state, and local law enforcement agencies arrested thirty-nine (39) individuals for their alleged involvement in a heroin trafficking and distribution enterprise comprised of members and associates of the "Bricks R Us" street gang. The arrests resulted in the dismantling of several overlapping and interrelated heroin distribution networks operating in Southwestern Pennsylvania.The arrests were the result of a long-term, multi-agency investigation conducted by the Greater Pittsburgh Safe Streets Gang Task Force (GPSSGTF) and the investigative partnership between the Federal Bureau of Investigation, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Allegheny County Police Department, Monroeville Police Department, Pennsylvania Office of the Attorney General-Bureau of Narcotics Investigations, Munhall Police Department, Duquesne Police Department, West Mifflin Police Department, Pittsburgh Bureau of Police, and Pennsylvania State Police. Representatives from the Kittanning Police Department, Port Authority of Allegheny County Police Department, Penn Hills Police Department, U.S. Marshal Service, and Indiana Police Department, also participated in the arrests on May 29, 2014.
BARHAM remains at large and is wanted by the FBI.
http://www.fbi.gov/wanted/cei/darrell-barham/view
An arrest warrant is based on an indictment or complaint, which is an accusation that a defendant has committed a violation of the federal criminal laws and, in itself, is not proof of the defendant’s guilt. All defendants are presumed innocent until such time as they are adjudicated guilty in a court of law.
Anyone with information regarding this fugitive may contact the FBI Pittsburgh Field Office, 24 hours a day, at telephone number (412) 432-4000. All information will remain confidential.
El Paso Repeat Sex Offender Sentenced to 30 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
In El Paso today, U.S. District Judge Kathleen Cardone sentenced 34-year-old repeat sex offender Berry Jay Miller to 30 years in federal prison followed by a lifetime of supervised release for distribution of child pornography announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On August 11, 2014, Miller pleaded guilty to a child pornography distribution charge. By pleading guilty, Miller, a registered sex offender, admitted to using public terminals at the El Paso Public Library to exchange images of child pornography via email with other individuals, including an undercover agent. According to court records, Miller has two prior sex offenses in El Paso County—one for indecency with a child and one for solicitation of a minor. Miller has remained in federal custody since FBI agents arrested him on March 10, 2014.
“The sentencing of Berry Miller is a prime example of the dedication and hard work of the El Paso Child Exploitation Task Force, comprised of the FBI, El Paso Police Department, El Paso Sheriff’s Office, Texas Department of Public Safety and Homeland Security Investigations. We are dedicated to protecting the El Paso Community from predators who commit heinous crimes against children and will continue to rigorously investigate and prosecute them,” stated FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Assistant United States Attorney Robert Almonte prosecuted this case on behalf of the Government.