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20 November 2014
U.S. Attorney’s Office for Eastern MichiganCollects $691,889,997.55 for U.S. Taxpayers in 2014Read the Press Release
U.S. Attorney Barbara L. McQuade announced today that the Eastern District of Michigan collected $691,889,997.55 in criminal and civil actions in Fiscal Year 2014. This total is more than 27 times more than the office’s annual budget of $25 million. Of this amount, $685,731,929.48 was collected in criminal actions and $6,158,068.07 was collected in civil actions.
Additionally, the Eastern District of Michigan worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional $204,518,877.66 in cases pursued jointly with these offices. Of this amount, $34,182.13 was collected in criminal actions and $204,484,695.53 was collected in civil actions.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
McQuade said, “These numbers are the result of the hard work of our lawyers, support professionals and our partner law enforcement agents. Their diligence has helped to restore illegally obtained funds to taxpayers and victims.”
This past June, the United States Attorney’s Office for the Eastern District of Michigan and the Northern District of Ohio recovered $200 million as part of the settlement in the case of U.S. Bank. This that case, U.S. Bank agreed to pay the United States $200 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration (FHA) that did not meet applicable requirements
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Eastern District of Michigan, working with partner agencies and divisions, collected $12,316,830.00 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Collects Nearly $20 Million in 2014Read the Press Release
Acting U.S. Attorney Annette L. Hayes announced today that the U.S. Attorney’s Office for the Western District of Washington collected $6.9 million in criminal and civil actions in Fiscal Year 2014. Of this amount, $4.7 million was collected in criminal actions and $2.2 million was collected in civil actionsThe Western District of Washington also collected an additional $12.2 million in forfeited assets related to criminal activity.
Additionally, the Western District of Washington worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional $5.2 million in cases pursued jointly with these offices. The vast majority of the collections in shared cases were collected in civil actions.
Attorney General Eric Holder announced that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending September 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“These financial recoveries on behalf of the taxpayers demonstrate that this office will use all the tools at its disposal to protect public safety and our tax dollars,” said Acting U.S. Attorney Annette L. Hayes. “Among many other key recoveries, the amounts collected from those who have committed environmental crimes are particularly important. They send a clear message that those who damage our natural heritage will be held to account.”
In March and April 2014, Stowe Construction Inc. paid more than $334,000 related to their conviction for violation of the Clean Water Act. Stowe Construction, and its President Bryan Stowe, admitted knowingly violating the Construction General Storm Water Permit for the Rainier Park of Industry project, located on West Valley Highway in Sumner. Permit violations contributed to two major landslides at the site in 2010 and 2011. Both slides forced closure of the West Valley Highway. The case is one of the first storm water pollution criminal cases brought in the United States. More on the case is available here.
In a second environmental case, Ray Caldwell, owner of All-Out Sewer And Drain Service, Inc., a Longview, Washington, septic tank pumping business paid a $250,000 fine in April 2014 for violations of the Clean Water Act. Caldwell illegally dumped more than two million gallons of waste and pollutants into the Longview sewer system. More on the case is here.
In civil litigation, the largest collection was $500,000 from Alaska Airlines in September 2014 to settle an FAA civil penalty claims regarding a maintenance issue. More on that case here.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Western District of Washington working with partner agencies and divisions, collectednearly $12.2 million in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
One of the most significant forfeiture actions concerned three former motels in Tukwila, Washington, which were seized by the government as chronic drug involved residences. To date the value of properties forfeited in that case exceeds $3 million. Additional forfeiture proceeds in that case will be recorded in fiscal year 2015. The motel properties are now being redeveloped by the City of Tukwila. More on this innovative case is available here.
U.S. Attorney’s Office Collects $3,419,913 in Civil and Criminal Actions for U.s. Taxpayers in Fiscal Year 2014Read the Press Release
Indianapolis, IN – Acting U.S. Attorney Josh J. Minkler announced today that the Southern District of Indiana collected $3,419,913 in criminal and civil actions in Fiscal Year 2014. Of this amount, $1,668,871 was collected in criminal actions and $1,751,041 was collected in civil actions.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“Collecting money owed to ‘the people’ of our district is a commitment I take very seriously,” said Minkler. “Those who steal and fraudulently take money from victims will be held accountable and my office will do everything humanly possible to return the money to its rightful owner.”
This fiscal year the U. S. Attorney’s Office collected the final payment of $285,000 from North American Green for an EPA violation involving pesticide use in its Evansville and Poseyville Indiana plants. The total fine was $910,000.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Southern District of Indiana, working with partner agencies and divisions, collected $1,115,556 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Announces Landmark Year in Collections from Civil and Criminal Actions for Tax Payers in Fiscal Year 2014Read the Press Release
U.S. Attorney’s Office Helps Collects Over $182 Million – More Than 20 Times its Annual Budget
LEXINGTON, KY - Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, announced today that the U.S. Attorney’s Office, with assistance from its partnering agencies, recovered $182,247,824.53 from civil and criminal actions for Fiscal Year 2014.
The Office, which operates on an annual budget of less than $10 million, ranks near the top 10 percent of all U.S. Attorney Offices (94 offices nationwide) in total collections. The Office collected the money during the fiscal year that started October 1, 2013 and ended September 30, 2014. The Eastern District of Kentucky consists of 67 counties stretching from Southern Kentucky up to the Ohio border.
“Our office achieved unprecedented success in recovering funds for the taxpayers during the last fiscal year. This is not by accident; we have focused intensely on collecting money owed to the Government as a result of criminal activity or obtained from the federal treasury by fraudulent means”, said U.S. Attorney Harvey. “This is vital work in this age of limited resources and we take pride in recovering funds for the public treasury that far exceeds the entire annual budget for this office. I commend the dedicated public servants in our office as well as our agency partners for their remarkable success on behalf of the American taxpayer.”
Approximately $76 million was collected in False Claims Act (FCA) cases and related matters. These cases often involve the submission of fraudulent claims by healthcare providers to federal healthcare programs such as Medicare. Specifically, in May, King’s Daughters Medical Center agreed to pay $40.9 million to settle civil allegations related to unnecessary cardiac procedures. In January, St. Joseph’s Hospital agreed to pay more than $16 million to settle similar FCA allegations. The $76 million is the largest amount collected in FCA cases in the Office’s 114 year history.
“We elevated the priority of FCA cases in our office about four years ago and implemented that decision by devoting significantly more resources to this important area,” said Harvey. “The result vindicates that decision and is a credit to our staff who work these complex cases. Our efforts not only protect the federal treasury, but promote appropriate medical care based on the best interests of the patients as well.”
Attorney General Eric Holder announced Wednesday that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s Offices and the main litigating divisions in that same period.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney's Office Indicts 4 for Cocaine Distribution ConspiracyRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that a federal grand jury indicted four people in a cocaine and methamphetamine distribution operation in Caddo, Bossier, DeSoto, and Red River parishes.
Those named in the 16-count indictment are: Shawn F. Swift, 35; Linda G. Brown, 59; Ricky R. Swift, 62; and Jarvis D. Randle, 26, all of Shreveport.
According to the indictment, the defendants conspired to distribute cocaine, methamphetamine, and cocaine base from January of 2013 to October of 2014 in Caddo, Bossier, DeSoto and Red River parishes. The indictment also seeks forfeiture of 39 weapons seized during the investigation of this case and more than $360,000. Specifically, the indictment states that $89,700 was seized during a traffic stop on September 21, 2014; $237,753 was seized from the home of Ricky Swift and Linda Brown on October 21, 2014; and $40,457 was seized from the home of Shawn Swift on October 21, 2014.
The defendants face various possible penalties depending on the drug quantity involved and their criminal histories as listed below:
- Conspiracy to Possess and Distribute Cocaine - up to 20 years in prison, and for some, up to life in prison, and up to five years of supervised release;
- Distribution of Cocaine and Methamphetamine and Possession with Intent to Distribute Cocaine - up to 20 years in prison, and for some, up to 40 years in prison, and up to five years of supervised release;
- Possession of Firearms in Furtherance of Drug Trafficking - a mandatory five years in prison consecutive to any other sentence and three years of supervised release;
- Possession of Firearms by a Convicted Felon - up to 10 years in prison and three years of supervised release;
- Possession of Firearms with Obliterated Serial Numbers - up to 10 years in prison and three years of supervised release; and
- Maintaining a Drug-Involved Premises - up to 20 years in prison and five years of supervised release.
The defendants also face a fine of up to $5 million and forfeiture of the money and property seized in the case.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation named “Not So Swift.” The FBI, ATF, DEA, Louisiana State Police, Caddo Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office, and the Red River Parish Sheriff’s Office conducted the investigation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorneys James G. Cowles Jr. and Allison D. Bushnell are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney's Office Collects $6.5 Million in Civil and Criminal Actions for Taxpayers in 2014Read the Press Release
HONOLULU – U.S. Attorney Florence T. Nakakuni announced today that the U.S. Attorney’s Office in the District of Hawaii collected $6,500,657 in criminal and civil actions in Fiscal Year 2014. Of this amount, $5,673,133 was collected in criminal actions and $827,524 was collected in civil actions. Additionally, the District of Hawaii worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional $1,305,216.77 in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced on November 19, 2014, that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
This past May, the District of Hawaii recovered $2,799,3778 in restitution as part of the criminal prosecution and conviction of Syed Qadri and others in a fraudulent investment scheme using two Honolulu based companies, Amasse Capital and Solomon & Co., which purportedly invested in high yield bonds. In reality, investments were used to pay back earlier investors and converted to Qadri’s own use in what amounted to a Ponzi scheme.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney Offers Groundbreaking Training to Build Trust Between Law Enforcement and Transgender CommunityRead the Press Release
SAN DIEGO – United States Attorney Laura Duffy, together with law enforcement partners and transgender leaders, will offer a groundbreaking training session today to promote respect and trust between officers and a transgender community that has faced discrimination, abuse and ridicule.
About 100 local police officers and Sheriff’s deputies as well as state and federal prosecutors, public defenders, federal agents and court staff are scheduled to take part in the first-of-its-kind event. The hour-long session is part of a Department of Justice training initiative launched in March that is designed to educate the nation’s law enforcement officers about problems and needs of transgender people and how to better serve them.
The training session is scheduled on this day to commemorate “International Transgender Day of Remembrance,” an annual event to memorialize those who have been killed as a result of fear or hatred of transgender people. The Day of Remembrance, which began as a tribute to murdered transgender activist Rita Hester, has become an empowering time to renounce the history of violence and discrimination perpetrated against the transgender community.
Every day, law enforcement personnel across the country encounter transgender individuals, including those who are victims of - or witnesses to - discrimination, abuse, hate crimes, intolerance and injustice. Yet many crimes involving transgender people often go unreported due to fear of marginalization, misunderstandings, harassment, and even assault. Because transgender individuals often feel re-victimized by the criminal justice system, they are reluctant to complain when hate crimes occur.
“Today’s training will help lay a stronger foundation of trust between the transgender community and those who are charged with the tremendous responsibility of protecting and serving,” said U.S. Attorney Laura Duffy. “Sometimes creating trust is as simple as using a person's preferred name, or gender pronoun, or asking for identification in a safe and respectful way. With better education, we can open minds. And with open minds, tensions and misperceptions start to fall away.”
This program is designed to teach officers the relevant terminology, pierce through stereotypes, improve interviewing skills, and reject the misconceptions that often drive the response to hate crimes.
According to recent studies, 78% of transgender individuals have been harassed at school, 41% have attempted suicide, and 26% have lost a job due to bias. Last year in Minnesota, a transgender woman lost her home and service dog due to alleged arson. In the 18 month period from January 2011- May 2012, approximately 18 transgender individuals were murdered in Puerto Rico. In Colorado a few years ago, the murder of a transgender woman became the first-ever transgender incident to result in a hate crimes conviction. And this year alone, violence against the transgender community has claimed the lives of 16 individuals nationally.
The Justice Department’s Community Relations Service unit, known as CRS, is in charge of the training program. CRS was created as part of the 1964 Civil Rights Act as a way to dial down desegregation tensions in the South. The Civil Rights Division protects gender identity and expression by investigating and prosecuting gender-identity motivated violence under the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act. CRS has responded to several incidents of hate violence in recent years, including in Puerto Rico, where 18 LGBT people were murdered between 2010 and 2012.
Today’s training program expands upon the work already accomplished in our proactive law enforcement community. To their credit, the San Diego Police Department and the San Diego County Sheriff have already developed “best practices” protocols.
*For an interview with U.S. Attorney Laura Duffy, please contact Media Relations Director Kelly Thornton at 619-546-9726.
Two More Defendants Sentenced in Identity Theft Fraud Scheme Involving Personal Identifying Information from AT&T Customer FilesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that defendants Monique Smith, 31, of Pompano Beach, and Arrington Basil Segu, 28, of Miami, were sentenced yesterday before U.S. District Judge Marcia G. Cooke. Smith was sentenced to 36 months in prison, followed by five years of supervised release, and was ordered to pay $55,263.45 in restitution. Segu was sentenced to 36 months in prison, followed by three years of supervised release, and was ordered to pay $57,838.86 in restitution.
Smith previously pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft in violation of Title 18, United States Code, Section and 1028A. Segu previously pled guilty to one count of access device fraud and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On October 29, 2014, Tracy Delva, 22, of Deerfield Beach, was sentenced to 37 months in prison, followed by three years of supervised release, and was ordered to pay $27,441 in restitution. Delva pled guilty to one count of access device fraud, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On October 15, 2014, Jacqueline Nicole Lee Warrick, 26, of Miami, was sentenced to 30 months in prison, followed by three years of supervised release. Warrick pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On August 6, 2014, co-defendant Chouman Emily Syrilien, 25, of Lauderdale Lakes, was sentenced to 34 months in prison, to be followed by three years of supervised release. Syrilien pled guilty to one count of possession of 15 or more unauthorized access devices and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A.
On October 1, 2014, Carlos Antonio Alexander, 24, of Orlando, was sentenced to 16 months in prison, followed by three years of supervised release. Alexander pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On September 3, 2014, Angel Arcos, 23, of Pompano Beach, was sentenced to time served, to be followed by four years of supervised release. As a condition of his supervised release, Arcos was subject to 180 days of home detention with electronic monitoring. Arcos pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.
On September 22, 2014, Shantegra La’Shae Godfrey, 23, of Deerfield Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for December 3, 2014. Godfrey faces a maximum of 30 years in prison.
According to court documents, defendant Syrilien was employed by Interactive Response Technologies, Inc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Alexander, Delva, Godfrey, Smith and Warrick were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money.
Delva and Warrick both utilized fraudulently obtained debit and credit cards that bore their names as additional “authorized users” on victims’ accounts to make both retail purchases as well as cash advances in excess of $28,000. Alexander, Smith and Godfrey made retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity. From September 16 to 18, 2013, five withdrawals totaling $13,000 were made from the fraudulent account and deposited into Arcos’ checking account.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case was prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two More Curry County Residents Plead Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Jeanette Driever, 37, of Grady, N.M., and John Jesse Perez, Jr., 45, of Clovis, N.M., entered guilty pleas today to federal drug trafficking charges. Each entered a guilty plea to participating in a conspiracy to distribute methamphetamine in Curry County, N.M. Their co-defendant Christopher Jason Kidd, 38, also of Clovis, N.M., pled guilty to a similar charge earlier this week.
Driever, Perez, Kidd and co-defendant Tina Tafoya, 33, also of Clovis, N.M., were indicted in Feb. 2014, on federal methamphetamine trafficking charges. Count 1 of the three-count indictment alleged that the defendants conspired to distribute methamphetamine in Curry County, N.M., between Sept. 2013 and Nov. 2013. Count 2 alleged that Kidd and Tafoya possessed methamphetamine with intent to distribute on Nov. 6, 2013, and Count 3 alleged that Driever and Perez possessed methamphetamine with intent to distribute on that same day.
During her plea hearing, Driever admitted that she and Perez obtained quantities of methamphetamine from Kidd and Tafoya that they distributed to others. According to Driever’s plea agreement, on Nov. 9, 2013, Driever arranged for Kidd and Tafoya to supply her and Perez with a pound of methamphetamine which they packed into numerous smaller baggies for resale.
During his plea hearing, Perez acknowledged participating in a methamphetamine trafficking conspiracy that involved Driever, Kidd, Tafoya and others.
Kidd entered his guilty plea on Nov. 17, 2014, and admitted conspiring with his co-defendants to distribute methamphetamine in Curry County. Kidd’s plea agreement states that he and Tafoya supplied quantities of methamphetamine to others, including Driever and Perez, who resold the methamphetamine in smaller quantities to users. According to Kidd’s plea agreement, on Nov. 9, 2013, Kidd and Tafoya supplied a pound of methamphetamine to Driever and Perez. On that day, Kidd and Tafoya possessed another half-pound of methamphetamine at their residence. The methamphetamine was seized later that day pursuant to search warrants.
The three defendants will be sentenced to the following terms of incarceration under the terms of their respective plea agreements: Kidd will serve 78 months; Driever will serve 60 months; and Perez will serve 36 months. Each will serve a five year term of supervised release after completing his or her prison sentence. All three remain in custody pending their sentencing hearings, which have not been scheduled.
Tafoya has entered a not guilty plea and remains in custody pending trial, which is scheduled for Jan. 8, 2015. An indictment is merely an accusation and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces Agency Office of the FBI’s Albuquerque Division, the Region V Drug Task Force and the New Mexico State Police, with assistance from the Ninth Judicial District Attorney’s Office. The Region V Drug Task Force is comprised of the Clovis Police Department, the Portales Police Department, Curry County Sheriff’s Office and the Roosevelt County Sheriff’s Office. Assistant U.S. Attorney Nicholas Jon Ganjei is prosecuting the case.
Two Men Sentenced for Planning to Murder Federal AgentRead the Press Release
Two Detroit men were sentenced to lengthy prison terms following their convictions for plotting to kill a federal agent and committing narcotics and firearms offenses, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Steven Bogdalek, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
Rufus Deon Wilson, 39, was sentenced to life in prison and John Robert Davis, 43, was sentenced to 25 years in prison. The sentenced was imposed by U.S. District Judge Bernard A. Friedman.
The evidence presented at the June trial established that in April 2013, Davis and Wilson conspired to rob and murder an ATF agent who was acting in an undercover capacity. Davis and Wilson believed that the agent was a drug courier who wanted to rob a drug stash house. Davis and Wilson planned to double-cross the agent by robbing and murdering him after he picked up drugs from the stash house. During recorded conversations, Davis and Wilson talked about killing the agent by crashing into his vehicle, binding his hands behind his back, slashing his throat with a knife to avoid the sound of gun fire, stripping his body of any identifying information, and then either leaving the agent naked in the car to die or burning the car.
On May 2, 2013, Davis and Wilson were arrested in a warehouse as they prepared to travel to the stash house to commit the robbery and murder. Davis was in possession of a black mask and latex gloves. Wilson, who was already wearing latex gloves, was in possession of loaded pistol and a large knife with an 8” serrated blade.
“These defendants plotted to violently kill another human being so that they could steal drugs and money,” McQuade said. “These sentences are harsh but appropriate for violent offenders who place such little value on human life.”
This case was investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States Attorney Michael Martin and Douglas Salzenstein.Two Founders of S3 Partners Sentenced to Prison in Investment Fraud SchemeRead the Press Release
SAN JOSE – Two founders of the S3 Partners were sentenced to prison on Nov. 17, 2014, on investment fraud charges, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
The Honorable Ronald M. Whyte, United States District Court Judge, sentenced Melvin Russell “Rusty” Shields, 45, of Granite Falls, N.C. to 78 months in prison and Michael Sims, 60, of Gilroy, Calif. to 30 months in prison.
Following a seven week trial, on Dec. 23, 2013, the jury convicted Shields on 32 of the 39 counts in the superseding indictment, including finding him guilty of conspiracy to commit wire and bank fraud, 14 counts of wire fraud, 7 counts of bank fraud, 7 counts of making a false statement to a bank, and 3 counts of securities fraud. The jury acquitted Shields as to the remaining counts in the superseding indictment. The jury convicted Sims of 2 counts of wire fraud and acquitted him on the remaining counts in the superseding indictment. The third S3 Partner, Sam Stafford, 57, of Campbell, Calif., pleaded guilty on Oct. 17, 2013 to having conspired with Shields and Sims to commit wire, mail, and bank fraud.
Evidence at trial showed that from 2006 to 2009, Shields, Sims, and Stafford defrauded individual investors in the Northern District of California in connection with various real estate development projects. The three defendants conducted their business as “S3 Partners” out of a variety of locations including San Jose and Campbell; Hickory, N.C.; and Valrico, Fla. Shields, Sims, and Stafford collectively obtained more than $21 million from individual investors and banks. Shields and Sims each diverted a portion of those funds for their personal use, their personal business ventures, and other unauthorized purposes. All the S3 Partners’ projects failed, resulting in a near total loss to many investors.
The jury verdicts and the evidence at trial regarding Shields specifically showed that he engaged in investment fraud targeting elderly investors, encouraging them to cash out their individual retirement accounts, educational savings, and home equity and to wire the proceeds to the S3 Partners for the purchase of shares in an S3 Partners-controlled company or to invest in other S3 projects. Shields then diverted investor funds for unauthorized purposes. The evidence further showed that Shields and Stafford fraudulently obtained millions of dollars from banks by submitting forged and fraudulent invoices and loan closing documents. Shields was responsible for over $7,225,000 in losses suffered by over two dozen individual investors as well as two banks.
In addition, the jury verdicts and the evidence specific to Sims showed that Sims defrauded two special education teachers out of over $411,000, including diverting and spending over $178,000 of what he knew to be their retirement savings. Sims encouraged the two teachers to cash out their individual retirement account (IRA) and wire the proceeds to him for the purchase of a share in an S3 Partners-controlled company which Sims said was a safe investment that would provide predictable returns. Sims instead spent those investors’ retirement funds for unauthorized purposes.
After the sentencing, Judge Whyte ordered Shields and Sims to self-surrender by Jan. 13, 2015. Shields, Sims, and Stafford have been out of custody on home electronic monitoring since their May 2012 arrest. Judge Whyte also ordered Shields to pay restitution in the amount of $7,225,904.73 and Sims to pay restitution in the amount of $411,460.92. Stafford’s sentencing is currently scheduled for Jan. 26, 2015.
Assistant U.S. Attorneys Joseph Fazioli and Timothy Lucey prosecuted the case with the assistance of Lakisha Holliman and Laurie Worthen. This prosecution is the result of an investigation by the FBI.
S3 superseding indictment
Two Defendants Sentenced in Texas for Conspiring to Bribe Military Contracting OfficialsRelated to A Scheme in Eastern District of CaliforniaRead the Press Release
SACRAMENTO, Calif. — Two defendants were sentenced today in the Northern District of Texas for conspiring to bribe public officials in Afghanistan and Texas in furtherance of an ongoing effort to secure government contracts through graft, U.S. Attorney Benjamin B. Wagner and U.S. Attorney Sarah R. Saldaña of the Northern District of Texas announced.
United States District Judge Barbara M.G. Lynn in the Northern District of Texas sentenced Lida Amin, 40, of Dubai, United Arab Emirates, and Dublin, California, and Sohail Amin, 30, of Dubai, United Arab Emirates, and Fremont, California, to three years and six months in prison. Judge Lynn ordered Lida Amin’s sentence to be served consecutively to a previous sentence for a total of five and a half years in prison.
On October 22, 2013, a federal grand jury in the Northern District of Texas indicted Lida Amin, Sohail Amin, and Jeron Shelton Rochon, 32, of Houston, Texas, charging them with conspiracy to bribe public officials. On June 17, 2014, Lida Amin and Sohail Amin pleaded guilty, but the charges against Rochon remain pending. The charges against Rochon are only allegations; he is presumed innocent until proven guilty.
According to court documents, between 2007 and 2010, Sohail Amin and Lida Amin, both private government contractors, conspired with Rochon, a member of the U.S. Air Force, and others to bribe U.S. Air Force contracting officers in order to obtain military procurement contracts. Between October 2007 and June 2008, in exchange for bribe offers and bribe payments made by Sohail Amin, Rochon issued government contracts and provided contract bid coaching to Sohail Amin and Lida Amin. Sohail Amin paid bribes to Rochon in cash in both Afghanistan and Dallas, Texas, and instructed Rochon not to deposit large sums of money into the banking system to avoid the reporting of such deposits by banks. According to court documents, the U.S. Air Force paid nearly $1 million for defective M-16 cleaning kits and a security fence that fell down shortly after it was installed.
In sentencing the defendants, Judge Lyn described the crime as sordid, shameful, and disgusting. She said, “In the court’s view, the bad here is really bad. This is a very serious offense.
Lida Amin was ordered to report to begin serving her sentence in December 5, 2014. Sohail was ordered to report to begin serving his sentence on January 13, 2015.
This case was filed in Texas with the assistance of the U.S. Attorney’s Office for the Northern District of Texas. Lida Amin and her brother Nabil Amin have also been charged in a separate federal criminal case in Sacramento, which relates to similar charges. Lida Amin previously entered a guilty plea in the Sacramento case and was sentenced on September 24, 2014, to a two-year term of imprisonment. Nabil Amin’s case is currently scheduled for a status conference on December 10, 2014. The charges against him are pending and are only allegations. He is presumed innocent unless and until proven guilty.
The charges filed in the Eastern District of California and the Northern District of Texas are the product of an investigation by the Federal Bureau of Investigation; the U.S. Air Force, Office of Special Investigations; the Fremont Police Department; and the U.S. Drug Enforcement Administration. Assistance was provided by the U.S. Department of Justice, Office of International Affairs; and the Czech National Police. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.
Two Assistant U.S. Attorney’s Take Oath of OfficeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – The U.S. Attorney’s Office for the Northern District of West Virginia welcomed two new litigators today as Erin M. Carter and Tara N. Tighe were appointed to the position of Assistant U.S. Attorney, United States Attorney William J. Ihlenfeld, II announced today.
Carter and Tighe took the formal oath of office before Chief U.S. District Judge John Preston Bailey this afternoon. U.S. Attorney Ihlenfeld is “thrilled to have Erin and Tara join our team. They have each shown skill and dedication that I know will be a tremendous asset to the office.”
Carter, of Ridgeway, Pennsylvania, was appointed to the Civil Division of the U.S. Attorney’s Office. She graduated from Pennsylvania State University in 2006 with a Bachelor of Science in Chemistry. She attended Vanderbilt University Law School where she graduated with a JD in 2009. Erin served as a Special Project Editor on the Vanderbilt Law Review and was a member of the Moot Court Executive Board. Prior to her appointment as an Assistant U.S. Attorney, Carter was an Associate at Duane Morris, LLP in Philadelphia, Pennsylvania. Her practice focused on commercial, securities, and antitrust litigation as well as white collar criminal investigations. She also previously worked at Dechert, LLP and the Pennsylvania Health Law Project.
Tighe, of Pittsburgh, Pennsylvania, was appointed to the Civil Division of the U.S. Attorney’s Office. She will also serve as Public Information Officer and Community Outreach Coordinator. She graduated from the University of Pittsburgh in 2009 with a Bachelor of Science in Business Administration and a Bachelor of Arts in Spanish. She is a proud 2012 graduate of the University of Pittsburgh School of Law where she served as Editor-in-Chief of the Environmental and Public Health Law Journal. Upon graduation, Tara was inducted into the Order of the Barristers, a national honor society recognizing excellence in oral and written advocacy. Prior to joining the U.S. Attorney’s Office, Tighe worked as an electronic discovery attorney in Pittsburgh, Pennsylvania specializing in mass tort litigation and commercial arbitration.
Carter and Tighe are avid fans of the Pittsburgh Steelers, Penguins, and Pirates. Both live in the Wheeling area.
Twenty-five Alleged Aryan Brotherhood Members and Associates Indicted on Federal Racketeering Charges in Mississippi and OklahomaRead the Press Release
WASHINGTON – Fourteen alleged members of the Aryan Brotherhood of Mississippi, including four of its most senior leaders, have been indicted by a federal grand jury in the Northern District of Mississippi for conspiring to participate in a racketeering enterprise. In a separate indictment, 11 alleged members and associates of the Universal Aryan Brotherhood of Oklahoma have been charged by a federal grand jury in the Northern District of Oklahoma for conspiring to participate in a racketeering enterprise, among other charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and U.S. Attorney Danny C. Williams of the Northern District of Oklahoma made the announcement.
In the Northern District of Mississippi, the 10-count indictment was returned on Oct. 23, 2014, and unsealed today. Thirteen individuals were taken into custody today. In the Northern District of Oklahoma, the four-count indictment was returned on Nov. 5, 2014, and unsealed on Nov. 10, 2014. All of the charged defendants are in custody.
“The Aryan Brotherhood is a violent gang that has seeped from behind prison walls into communities throughout this nation,” said Assistant Attorney General Caldwell. “Working in lockstep with our law enforcement partners and U.S. Attorneys’ Offices throughout the country, we are targeting and dismantling these gangs from the top general to the foot soldier so they can no longer terrorize our communities.”
“These charges resulted from an unprecedented collaboration of federal, state, and local law enforcement officers targeting a large scale prison gang involved in violent organized crime throughout the state of Mississippi,” said U.S. Attorney Adams. “This indictment represents a critical first step toward dismantling this violent organization and clearly signals that the United States Attorney’s Office and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
“My office remains steadfast in its commitment to work in collaboration with law enforcement to disrupt and dismantle violent crime and gang activities,” said U.S. Attorney Williams.
According to the indictments, the Aryan Brotherhood of Mississippi (ABM) and Universal Aryan Brotherhood of Oklahoma (UAB) are violent, “whites only,” prison-based gangs with members operating inside and outside of state penal institutions in their respective states. The gangs allegedly modeled themselves after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. The ABM was allegedly founded in 1984, and in early 2013, pursued unification with the Aryan Brotherhood of California in order to achieve national recognition.
The UAB was allegedly founded in 1993. According to the Oklahoma indictment, the UAB has a militaristic structure comprised of a Main Council, Yard Captains and Soldiers. The Main Council has ultimate authority in all gang matters.
The indictment alleges that both gangs enforced their rules and promoted discipline among members, prospects and associates through violence and threats against those who violated the rules or posed a threat to the gangs. Members, and oftentimes associates, were required to follow the orders of higher-ranking members.
According to the Mississippi indictment, in order to be considered for ABM membership, a person must be sponsored by another ABM member. Once sponsored, a prospective member must serve a probationary term of not less than six months, during which he is referred to as a prospect, and his conduct is observed by the members of the ABM. The prospect is required to sign a “prospect compact,” swear to an oath of secrecy and declare a life-time commitment to the ABM.
The ABM allegedly has a detailed and uniform organizational structure divided into three separate geographic areas of control. The state is overseen and directed by a three-member “wheel” commonly referred to as “spokes.” The wheel has ultimate authority in all gang matters. The indictment charges four alleged wheel members: Frank Owens, Jr, 44, aka “State Raised,” of D’Iberville, Mississippi; Perry Mask, 46, of Corinth, Mississippi; Stephen Hubanks, 45, of Rienzi, Mississippi; and Brandon Creel, 46, aka “Oak,” of Ellisville, Mississippi, with conspiracy to participate in the racketeering activities of the ABM, among other charges. The indictment also charges 10 other alleged members of the ABM. All 14 alleged members of the ABM are charged with conspiracy to participate in the racketeering activities of the gang and with involvement in murder, attempted murder, kidnapping, assault, money laundering, firearms trafficking and conspiracy to distribute methamphetamine.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The Mississippi case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Drug Enforcement Administration; FBI; U.S. Marshals Service; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Bureau of Narcotics; Harrison County Sheriff’s Office; South Mississippi Metro Enforcement Team; Tupelo Mississippi Police Department; North Mississippi Narcotics Unit; Tishomingo County Sheriff’s Office; Lee County Sheriff’s Office; Forrest County District Attorney’s Office; Prentiss County Sheriff’s Office; Jones County Sheriff’s Office; Harrison County Sheriff’s Office; and South Mississippi Metro Enforcement Team.The Oklahoma case is being investigated by a multi-agency task force consisting of the U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Tulsa Police Department; ATF; Internal Revenue Service – Criminal Investigation Division; Tulsa County Sheriff’s Office; and Oklahoma Department of Corrections.
The cases are being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorneys’ Offices for the Northern District of Mississippi and the Northern District of Oklahoma.
Twenty-Five Alleged Aryan Brotherhood Members and Associates Indicted on Federal Racketeering Charges in Mississippi and OklahomaRead the Press Release
Fourteen alleged members of the Aryan Brotherhood of Mississippi, including four of its most senior leaders, have been indicted by a federal grand jury in the Northern District of Mississippi for conspiring to participate in a racketeering enterprise. In a separate indictment, 11 alleged members and associates of the Universal Aryan Brotherhood of Oklahoma have been charged by a federal grand jury in the Northern District of Oklahoma for conspiring to participate in a racketeering enterprise, among other charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and U.S. Attorney Danny C. Williams of the Northern District of Oklahoma made the announcement.
In the Northern District of Mississippi, the 10-count indictment was returned on Oct. 23, 2014, and unsealed today. Thirteen individuals were taken into custody today. In the Northern District of Oklahoma, the four-count indictment was returned on Nov. 5, 2014, and unsealed on Nov. 10, 2014. All of the charged defendants are in custody.
“The Aryan Brotherhood is a violent gang that has seeped from behind prison walls into communities throughout this nation,” said Assistant Attorney General Caldwell. “Working in lockstep with our law enforcement partners and U.S. Attorneys’ Offices throughout the country, we are targeting and dismantling these gangs from the top general to the foot soldier so they can no longer terrorize our communities.”
“These charges resulted from an unprecedented collaboration of federal, state, and local law enforcement officers targeting a large scale prison gang involved in violent organized crime throughout the state of Mississippi,” said U.S. Attorney Adams. “This indictment represents a critical first step toward dismantling this violent organization and clearly signals that the United States Attorney’s Office and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
“My office remains steadfast in its commitment to work in collaboration with law enforcement to disrupt and dismantle violent crime and gang activities,” said U.S. Attorney Williams.
According to the indictments, the Aryan Brotherhood of Mississippi (ABM) and Universal Aryan Brotherhood of Oklahoma (UAB) are violent, “whites only,” prison-based gangs with members operating inside and outside of state penal institutions in their respective states. The gangs allegedly modeled themselves after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. The ABM was allegedly founded in 1984, and in early 2013, pursued unification with the Aryan Brotherhood of California in order to achieve national recognition.
The UAB was allegedly founded in 1993. According to the Oklahoma indictment, the UAB has a militaristic structure comprised of a Main Council, Yard Captains and Soldiers. The Main Council has ultimate authority in all gang matters.
The indictment alleges that both gangs enforced their rules and promoted discipline among members, prospects and associates through violence and threats against those who violated the rules or posed a threat to the gangs. Members, and oftentimes associates, were required to follow the orders of higher-ranking members.
According to the Mississippi indictment, in order to be considered for ABM membership, a person must be sponsored by another ABM member. Once sponsored, a prospective member must serve a probationary term of not less than six months, during which he is referred to as a prospect, and his conduct is observed by the members of the ABM. The prospect is required to sign a “prospect compact,” swear to an oath of secrecy and declare a life-time commitment to the ABM.
The ABM allegedly has a detailed and uniform organizational structure divided into three separate geographic areas of control. The state is overseen and directed by a three-member “wheel” commonly referred to as “spokes.” The wheel has ultimate authority in all gang matters. The indictment charges four alleged wheel members: Frank Owens, Jr, 44, aka “State Raised,” of D’Iberville, Mississippi; Perry Mask, 46, of Corinth, Mississippi; Stephen Hubanks, 45, of Rienzi, Mississippi; and Brandon Creel, 46, aka “Oak,” of Ellisville, Mississippi, with conspiracy to participate in the racketeering activities of the ABM, among other charges. The indictment also charges 10 other alleged members of the ABM. All 14 alleged members of the ABM are charged with conspiracy to participate in the racketeering activities of the gang and with involvement in murder, attempted murder, kidnapping, assault, money laundering, firearms trafficking and conspiracy to distribute methamphetamine.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The Mississippi case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Drug Enforcement Administration; FBI; U.S. Marshals Service; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Bureau of Narcotics; Harrison County Sheriff’s Office; South Mississippi Metro Enforcement Team; Tupelo Mississippi Police Department; North Mississippi Narcotics Unit; Tishomingo County Sheriff’s Office; Lee County Sheriff’s Office; Forrest County District Attorney’s Office; Prentiss County Sheriff’s Office; Jones County Sheriff’s Office; Harrison County Sheriff’s Office; and South Mississippi Metro Enforcement Team.
The Oklahoma case is being investigated by a multi-agency task force consisting of the U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Tulsa Police Department; ATF; Internal Revenue Service – Criminal Investigation Division; Tulsa County Sheriff’s Office; and Oklahoma Department of Corrections.
The cases are being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorneys’ Offices for the Northern District of Mississippi and the Northern District of Oklahoma.
ABM Indictment
Trio Charged with Sex TraffickingRead the Press Release
Kevino Graham, 33, Brian Wright, 38, and Renato Teixeira, 24, of Philadelphia, PA were charged by indictment, unsealed today, with two counts of sex trafficking by force, announced United States Attorney Zane David Memeger.
According to court documents, between May 2009 and August 2013, the defendants ran a striptease club and brothel, which they called “Passionate Touch,” at a property they leased in the Cathedral Park section of Philadelphia. It is alleged that Graham ran the club while Wright collected the money and Teixeira helped to recruit females to work for the venture and posted prostitution advertisements for the females. It is further alleged that between on or about September 1, 2011, through on or about January 31, 2012, the defendants engaged in acts of force, threats, fraud and coercion to cause young women to engage in prostitution.
If convicted, each defendant faces a mandatory minimum term of 15 years in prison with a maximum possible sentence of life, a fine of up to $500,000, at least five years of supervised release, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department Special Victims’ Unit and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Michelle Morgan.
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
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Three Indicted in Alleged Stockton Methamphetamine RingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Stockton residents Rigoberto Cecena, 24, Yusen Valenzuela-Herrera, 25, and Elisabet Perez, 25, charging them with conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and heroin, and distribution of methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, between September 23, 2014, and October 16, 2014, Cecena, Valenzuela-Herrera, and Perez conspired to distribute methamphetamine. Valenzuela-Herrera and Perez are also being charged with possessing heroin for distribution. Additionally, Cecena and Valenzuela-Herrera are being charged with distributing methamphetamine.
This case is the product of an investigation by the San Joaquin County Metropolitan Narcotic Task Force (METRO). Special Assistant United States Attorney Josh F. Sigal is prosecuting the case.
The defendants are currently in custody. If convicted, all three defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Illegal Aliens Charged with Immigration ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced that separate criminal charges were filed yesterday in U.S. District Court in Harrisburg against three illegal aliens.
Jose Antonio Ramirez-Morales, age 36, was charged in a one-count indictment by a federal grand jury alleging that Ramirez-Morales, a Guatemalan citizen, who was previously arrested and deported from the United States on May 14, 2010, reentered the United States unlawfully and was found in Carbon County, Pennsylvania.
If convicted, Ramirez-Morales faces a maximum sentence of up to 10 years of imprisonment and a $250,000 fine.
Mario Ramirez-Dominguez, age 33, was charged in a one-count indictment by a federal grand jury alleging that Ramirez-Dominguez, a Mexican citizen, who was previously arrested and deported from the United States on September 30, 2012, reentered the United States unlawfully and found in York County, Pennsylvania.
If convicted, Ramirez-Dominguez faces a maximum sentence of up to 2 years’ imprisonment and a $250,000 fine.
Gustavo Ramirez-Diosdado, age 44, was charged in a one-count indictment by a federal grand jury alleging that Ramirez-Diosdado, a Mexican citizen, who was previously arrested and deported from the United States on April 22, 2008, reentered the United States unlawfully and was found in Centre County, Pennsylvania.
If convicted, Ramirez-Diosdado faces a maximum sentence of up to 10 years of imprisonment and a $250,000 fine.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and are being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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.
Three Fresno Men Indicted for Methamphetamine TraffickingRead the Press Release
FRESNO, Calif. — A federal grand jury returned an 11-count indictment today against Fresno residents Jose Ortiz-Medrano, 25; Luciano Ramirez-Santa Cruz; and Jose Alberto Flores, 27, charging them with methamphetamine trafficking offenses, United States Attorney Benjamin B. Wagner announced. Luciano Ramirez-Santa Cruz was also charged with being an unlawful alien in possession of a firearm.
According to court documents, the defendants were involved in selling methamphetamine. On November 13, 2014, agents served search warrants at each of the defendant’s residences and on Ramirez’s car. In total, they seized more than $14,000 in cash, a pound of marijuana, several cellphones, approximately a kilogram of methamphetamine, and two gallons of methamphetamine in solution. They also seized three firearms allegedly possessed by Ramirez.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Multi-Agency Gang Enforcement Consortium (MAGEC). Assistant United States Attorney Kimberly A. Sanchez is prosecuting the case.
All defendants are in custody. If convicted, all defendants face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three California Residents Sentenced for Sex Trafficking Related OffensesRead the Press Release
Orlando, FL – United States District Judge Paul Byron today sentenced Vincent Hudson, a/k/a “Goldie,” (44, Stockton, CA), Patricia Poulson, a/k/a “Moët Diamonds,” (22, Stockton, CA), and Jessica McCrary, a/k/a “Amber Snow” (20, Stockton, CA) for sex trafficking-related offenses. Hudson was sentenced to 30 years in federal prison. McCrary and Poulson were each sentenced to three years’ probation, respectively.
All three individuals pleaded guilty on September 4, 2014. Hudson pleaded guilty to one count of transporting a minor to engage in prostitution and one count of the commission of a felony offense involving a minor when required to register as a sex offender. Poulson and McCrary pleaded guilty to interstate travel with intent to promote an unlawful activity, namely prostitution.According to their plea agreements, on November 8, 2013, a 16-year-old female, met Hudson at a hotel in Orlando, Florida. Traveling with Hudson were McCrary and Poulson. The minor initially told Hudson that she was a runaway with an active arrest warrant. Hudson promised her a “new identity” if she would join their “team” as a prostitute. The minor victim said that Hudson, Poulson, and McCrary all told her that she would be working as a prostitute and having sex for money in both Louisiana and California.
The minor victim left Orlando with Hudson, Poulson, and McCrary and they drove to Louisiana. While in Louisiana, the minor worked the streets of Lafayette and New Orleans as a prostitute. All of the money she earned was given to Hudson.
While in Lafayette, Hudson stole an identification card at a tattoo shop belonging to “D.G.,” which became the minor’s new identity. After working in Louisiana for three weeks, the minor took a bus from Lafayette, Louisiana to Stockton, California, where she worked as a prostitute nearly every day until she was arrested for prostitution on December 18, 2013.
This case was investigated by the Federal Bureau of Investigation and the Orlando Metropolitan Bureau of Investigation. It was prosecuted by Assistant United States Attorney David Haas.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Tahlequah Woman Pleads Guilty to Firearm Possession in Furtherance of Drug Trafficking OffenseRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MISTY DAWN BURTON, age 23, of Tahlequah, Oklahoma pled guilty to Possession of a Firearm in Furtherance of Drug Trafficking Offense, in violation of Title 18, United States Code, Section 924(c)(1)(A) and 2, punishable by not less than 5 years imprisonment, and/or up to a $250,000.00 fine.
The charges are a result from an investigation by the Bureau of Alcohol, Tobacco Firearms and Explosives and the Cherokee County Sheriff’s Department. The defendants were indicted in September 2014.
The Indictment alleged that on or about March 19, 2013, within the Eastern District of Oklahoma, MISTY DAWN BURTON did knowingly possess a firearm in furtherance of a drug trafficking crime for which she may be prosecuted in a court of the United States, that is, Distribution of Oxycodone.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings.
Assistant United States Attorney Kyle Waters represented the United States.
Severn Man Pleads Guilty to Producing Child PornographyRead the Press Release
Sexually Assaulted a Toddler; Agrees to a Prison Sentence of 25 Years
Baltimore, Maryland – Darrius Carr, age 22, of Severn, pleaded guilty late on November 19, 2014, to producing child pornography arising from his sexual assault of a toddler on March 7 and 11, 2014.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; and Anne Arundel County State’s Attorney Anne Colt Leitess.
"This was an unthinkable crime against a toddler," said Anne Arundel County Police Chief Kevin Davis. "I commend the investigators from the FBI and the Anne Arundel County Police Department for their dedication and tenacity in investigating such a difficult case. Hopefully this predator will never be able to victimize another child."
According to his plea agreement, in March 2014, Carr did not have a place to stay. Carr moved in with a family in order to provide daycare for the couple’s young children on March 6, 2014.The next day, while the parents were at work, Carr was alone with the children. During a four minute time span, Carr produced six photos and a video of himself and the girl engaged in sexually explicit conduct.
On March 11, 2014, Carr was again left alone with the children. Carr produced another video of himself and the victim. The video is a close up of the victim’s genitals, and during the video Carr touches her.
Additionally, since at least 2012, Carr used his email accounts, online storage accounts, and Instagram account to store and distribute child pornography. The distributed files of child pornography included more than 600 images of prepubescent minors, and videos.
As part of his plea agreement, Carr must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Carr and the government have agreed that if the Court accepts the plea agreement Carr will be sentenced to 25 years in prison followed by a lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 26, 2015 at _.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Anne Arundel County Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Sacramento Man Indicted Following His Arrest in Fresno with 19 Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Wenceslao Cruz Ochoa, 34, of Sacramento, charging him with possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on November 13, 2014, Ochoa was stopped by a Fresno County Sheriff’s deputy on Interstate 5 for a moving violation. A canine trained in the detection of controlled substances alerted the deputy to the presence of drugs, which prompted a search of his vehicle. Approximately 19 pounds of methamphetamine was located inside a suitcase.
This case is the product of an investigation by the United States Drug Enforcement Administration and the Fresno County Sheriff’s Office. Assistant United States Attorney Michael Frye is prosecuting the case.
If convicted, Ochoa faces a maximum statutory penalty of 20 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Richland County Man Sentenced to 105 Months on Methamphetamine ChargesRead the Press Release
Follow @SDILNewsA Richland County man was sentenced on November 19, 2014, to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Nathan W. Headley, 39, of Olney, Illinois, was sentenced to 105 months in federal prison, to be followed by four years of supervised release, and fined $300. Headley had previously pleaded guilty to three counts in a federal indictment. Count 1 charged that from July 2010, through December 2012, in Richland County, Headley conspired with others to manufacture more than 50 grams of methamphetamine. Count 2 charged that on April 16, 2014, in Richland County, Headley possessed methamphetamine with the intent to distribute it. Count 3 charged that on March 12, 2014, in Richland County, Headley did distribute methamphetamine.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
Rhode Island U.S. Attorney’s Office Collects $3.14 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha announced today that the District of Rhode Island collected $3,149,153.03 in criminal and civil actions in Fiscal Year 2014. Of this amount, $1,331.295.68 was collected in criminal actions and $1,817,857.35was collected in civil actions
Additionally, Rhode Island worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional $718,652.67 in cases pursued jointly with these offices.
Attorney General Eric Holder announced on Wednesday that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
United States Attorney Peter Neronha commented, “Working with our local, state and federal partners, the outstanding Assistant United States Attorneys of this Office continue to bring the kinds of civil and criminal cases that have a real impact on the safety, well-being and quality of life of all Rhode Islanders. Those who engage in financial fraud, taking advantage of victims or the public generally, will continue to receive the full attention of both this Office’s Civil and Criminal Divisions, as will those who pose a threat to national security, who violate the public trust, who commit crimes of violence, or who engage in sex trafficking, particularly of minors.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Rhode Island, working with partner agencies and divisions, collected $1,078,781.00 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Rapid City Man Sentenced for Killing A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Second Degree Murder was sentenced on November 17, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Dean Dubray, age 32, was sentenced to 30 years and 5 months in custody, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that occurred at a home near Oglala, on May 30, 2013, when the woman Dubray was seeing at the time left her three children under his care and custody while she ran errands. Dubray became irritated while watching the children, and threw the infant to the ground and struck him in the head multiple times, causing a skull fracture, brain hemorrhages, and laceration of the liver, all of which ultimately led to the child’s death.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety, and the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Dubray was turned over to the custody of the U.S. Marshals Service.
Peckville Women Charged with Theft of Social Security BenefitsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that a felony criminal information charging Michaelina Chivers, nee Vaughan, age 69, of Peckville, Pennsylvania, was filed in the United States District Court in Scranton, Pennsylvania.
According to United States Attorney Peter Smith, Chivers was charged in connection with theft of social security benefits are the result of her failure to inform the Social Security Administration of the death of her mother, and continuing to receive and use her deceased mother’s SSA benefits for her own personal use and gain. As part of the plea agreement filed with the Court, Chivers has agreed to pay restitution to the SSA in the amount of $218,869.00, representing the loss to the SSA as a result of her fraud.
If convicted, Chivers could be imprisoned for a total statutory maximum sentence of up to 10 years and a fine in the amount of $250,000.
The joint investigation was conducted by the United States Social Security Administration, Office of the Inspector General and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Oceanside Lawyer Convicted of Defrauding Distressed Homeowners in $13 Million Loan Modification Scheme That Victimized Thousands Jury Convicts Dean G. Chandler, President and CEO of “1st American Law Center,” of 8 Felony CountsRead the Press Release
SAN DIEGO - United States Attorney Laura E. Duffy announced the convictions today of two defendants for their roles in defrauding 3,261 homeowners from across the nation through 1st American Law Center, a sham law firm in Oceanside, California. After a three week trial and a day of deliberation, the jury returned guilty verdicts against Dean Gregory Chandler, the former president, chief Executive officer and attorney for the company; and Michael Eccles, a manager in the telemarketing call center. Chandler was convicted of eight felony counts: Three counts of mail fraud, three counts of wire fraud, and one count each of conspiracy and money laundering. Eccles was convicted of five counts: Conspiracy and two counts each of mail fraud and wire fraud.
According to evidence presented at trial, Chandler created 1st American Law Center in 2009 in partnership with convicted drug trafficker Gary Bobel (who has been separately convicted and sentenced for his role in the scheme). Chandler arranged to have Bobel oversee the call center and its teams of telemarketers, who pitched loan modification services on behalf of the law center. Those telemarketers, including Michael Eccles, promised potential clients that a panel of attorneys would pre-screen applicants’ financial information to ensure that only the most qualified applicants would be approved as clients of the law firm; that a team of attorneys would negotiate with clients’ mortgage lenders; that those attorneys would draft all documents to be submitted to the mortgage lenders; that the “attorney retainer fee” averaging $3,495 would be preserved in an attorney client trust account until the client was satisfied, and that clients were protected by a money back guarantee.
As presented at trial, Michael Eccles was promoted to manager of the call center in December 2009, and he took advantage of the new position to script additional lies for the telemarketers to use with clients, including that the law firm had been in business since 1992; that they had been successfully modifying loans for over 20 years; that they had helped over a hundred thousand homeowners, and that it took attorneys on average 200 hours to complete a successful loan modification – all to suggest that the clients could take hope and comfort in the expertise and established success of the “law firm” they had hired. The telemarketers even persuaded homeowners to pay the company=s fees instead of using their limited funds to stay current on their mortgage payments.
Witness testimony and documentary evidence at trial proved that Chandler had almost no role in the loan modification process, and that nearly all of the statements made by telemarketers to the clients were lies. Chandler, the attorney, did not pre-screen all of the applications or negotiate with lenders. Rather than successfully modifying 98% of their client’s mortgages, the firm failed to modify 3 out of every 4 loans. Instead of keeping clients’ payments in an attorney trust account, they were funneled into various other accounts to pay co-schemers, sales commissions, and company expenses. Instead of having funds available to deliver on its money-back-guarantee, the firm failed to provide refunds to untold numbers of clients who requested them.
For his part, Chandler served as the face of the law firm, and the firm’s commercial, website, and brochure featured Chandler’s name, image, and state bar license number. Chandler reviewed telemarketer call scripts submitted to him for approval, and also listened in real time and on recordings to telemarketer calls to clients.
According to evidence at trial, however, Chandler’s chief role was to mislead regulatory and enforcement agencies which threatened the law firm’s profitable operations. In that capacity, in October 2009 Chandler lied under oath in a sworn declaration to an Assistant Attorney General at the California Department of Justice. Multiple witnesses testified that the statements in Chandler’s declaration were false. And when the customer complaints threatened the company’s bottom line, Chandler also lied repeatedly to the Better Business Bureau in efforts to try to inflate the law center’s sagging ratings. For his role in the scheme, Chandler earned over $275,000 in about a 14-month period. In July 2010, after the Federal Bureau of Investigation and Internal Revenue Service executed a search warrant at his law firm, Chandler also drained one of the firm’s bank accounts of $16,500 and used it for his own benefit, instead of to pay employees or refund victims. This transaction was the basis of the money laundering charge.
During the trial, multiple victims of the defendants’ fraudulent scheme came from across the country to testify about their experiences. For example, a couple from Evansville, Indiana, both in their 70s, related how they contacted 1st American Law Center to avoid losing the home where they had spent 27 years raising a family, which was specially modified to accommodate their paraplegic son’s wheelchair. Due to medical problems which forced the husband to retire as an auto mechanic, the couple fell behind on their payments. The couple put their faith in the promise that an attorney would negotiate with their lender. They also counted on the money back guarantee if the firm was unsuccessful. The couple ultimately lost their home, and their money.
The defendants will next appear before United States District Judge Roger T. Benitez on February 23, 2015 for sentencing. A restitution hearing for the victims of 1st American Law Center is set for April 21, 2015.
Today’s jury verdicts bring to a total of 13 the convictions that have resulted from the fraudulent operation of 1st American Law Center. Gary Bobel received a sentence of 92 months in custody. Telemarketer Shelveen Singh, who operated out of Riverside, was sentenced to 110 months in custody. Other convicted telemarketers include Travis Iverson, Scott Spencer, Johnny Hearn, Anthony Calandriello, Mark Spencer, and Roger Jones. Information Technology Director Steven Gersztyn was convicted and sentenced for lying to federal agents during the investigation of the case, and Amy Hintz and Sarah Grimm were each convicted of theft of government property for stealing documents while making copies of evidence in the custody of the FBI.
United States Attorney Laura E. Duffy commented, AThe real tragedy of this case is that the defendants chose to profit from the suffering of others. In difficult economic times, they exploited a particularly vulnerable segment of our population B homeowners who were desperately trying to make ends meet and stay in their homes.
“Mr. Chandler and Mr. Eccles misused and abused their positions of trust to prey upon those who were financially vulnerable and desperate to save their homes,” said FBI Special Agent in Charge Eric S. Birnbaum. “Today's convictions reaffirm our commitment to hold accountable the guilty who profit by taking advantage of vulnerable people.”
“The defendants used a slew of lies to sell their loan modification services and obtain money from distressed homeowners throughout the United States,” said IRS Criminal Investigation's Special Agent in Charge Erick Martinez. “Loan modification scams thrived for a time, but that time is gone, and as this verdict shows, it's time for those responsible to face judgment.”
DEFENDANTS Case Number: 12CR4031-BEN Dean Gregory Chandler Age: 57 Fallbrook, California Michael Eccles Age: 35 Vista, California CHARGESDefendant Chandler was convicted of Counts 1-8.
Defendant Eccles was convicted of Counts 1, 3-4, 6 and 7.
Count 1: Conspiracy to commit mail fraud or wire fraud, in violation of 18 U.S.C. § 1349.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Counts 2-4: Mail Fraud, in violation of 18 U.S.C. § 1341.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Counts 5-7: Wire Fraud, in violation of 18 U.S.C. § 1343.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Count 8: Money Laundering, in violation of 18 U.S.C. § 1957.
INVESTIGATING AGENCIES
Maximum Penalties: 10 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Federal Bureau of Investigation
Internal Revenue Service, Criminal InvestigationNovember Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 22 indictments charging 23 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Clement U. Akara, age 60, of Omaha, is charged in a twenty-four-count Indictment with health care fraud. Counts I thru XXIV of the Indictment charge the defendant with submitting false and fraudulent claim information to Nebraska Medicaid from on or about November of 2004 through August of 2010. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Alfredo Avila-Nava, age 28, of Omaha, is charged with illegal reentry into the United States on or about November 6, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jeffery Belmont, age 50, of Ralston, is charged in a four-count Indictment. Count I of the Indictment charges Belmont with unlawful manufacturing of explosive materials without a license on or about June 23, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with aiding and abetting the unlawful manufacturing of explosive materials without a license from on or about May 1, 2013 through on or about June 15, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges Belmont with being an unlawful user of a controlled substance in possession of explosives on or about June 24, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV of the Indictment charges the defendant with being an unlawful user of a controlled substance in possession of firearms and ammunition on or about June 24, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of this violation should be forfeited to the United States.
* Jonathon Ibarra Bojorquez, age 21, and Tye Root, age 32, are charged with conspiracy to distribute and possess with intent to distribute a mixture of methamphetamine from an unknown date but at least as early as September 1, 2014, and continuing to on or about October 25, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Brandon Byrd, age 30, is charged with felon in possession of a firearm on or about September 23, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Roberto Campos-Guerrero, age 36, of Omaha, is charged with illegal reentry into the United States on or about October 29, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Alejandro Cruz-Hernandez, age 23, of Omaha, is charged in a two-count Indictment. Count I of the Indictment alleges that on or about August 8, 2007, the defendant used a Nebraska ID Card and a Social Security card knowing said documents were not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II charges that on or about August 8, 2007 through on or about November 12, 2014, Cruz-Hernandez falsely represented a Social Security account number as belonging to him for the purpose of obtaining a benefit to which he was not entitled. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* James F. Delgado, age 62, of Grand Island, Nebraska, is charged in a four-count Indictment. Counts I, II, and III of the Indictment charge the defendant with distribution of 5 grams or more of methamphetamine on or about September, 4, 2013, on or about February 25, 2014, and on or about March 6, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment for each count. Count IV of the Indictment charges Delgado with distribution of methamphetamine on or about March 27, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Francisco R. Delrio, age 38, is charged with felon in possession of a firearm on or about October 8, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Ubaldo Fajardo-Guillen, age 29, of Memphis, Tennessee, is charged with illegal reentry into the United States on or about October 24, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ryan Franks, of Bellevue, Nebraska, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with distribution of methamphetamine on or about October 23, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Franks with distribution of 50 grams or more of methamphetamine on or about October 29, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count III of the Indictment charges the defendant with possession with intent to distribute 50 grams of more of methamphetamine on or about November 6, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count IV of the Indictment charges Franks with carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking offense. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Counts I, II and III of the indictment should be forfeited to the United States.
* Chancellor T. Jackson, age 23, of Omaha, is charged with felon in possession of a firearm on or about September 3, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Faustino Maradiaga-Arias, age 40, of Omaha, is charged with illegal alien in possession of a firearm on or about May 3, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Erik Pereyra-Esteban, age 32, is charged with illegal reentry into the United States on or about November 13, 2014, following deportation after conviction for an aggravated felony. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Melissa Prentice-Erickson, age 47, of Henderson, Nebraska, is charged in a twenty-seven-count Indictment with health care fraud. Counts I thru XXVII of the Indictment charge the defendant with submitting false and fraudulent claim information to Nebraska Medicaid from on or about November of 2009 through on or about July of 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Pascual Rodriguez Antonino, age 34, of Omaha, is charged with illegal reentry into the United States on or about October 20, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Oscar Arturo Romero-Saenz, age 35, of Omaha, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine on or about August 1, 2014, and continuing to on or about September 18, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Romero-Saenz with possession with intent to distribute 50 grams or more of methamphetamine on or about September 18, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count III of the Indictment charges the defendant with using or carrying a firearm during and in relation to, a drug trafficking offense. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment.
* Omar Santana, age 34, is charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine beginning on or about April 1, 2014, and continuing to on or about October 23, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment.
* Irving Oswaldo Suastegui-Mejia, of Omaha, is charged in a three-count Indictment. Count I charges that on or about November 1, 2012, Suastegui-Mejia falsely represented a Social Security account number as belonging to him for the purpose of obtaining a benefit to which he was not entitled. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges on or about November 1, 2012, the defendant made a false claim to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about November 1, 2012, the defendant misused visas, permits and other documents knowing said documents were not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Cirino Tule Bernal, age 36, of Omaha, is charged with illegal reentry into the United States on or about October 16, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Veronica Valverde-Galindo, age 34, of Omaha, is charged with possession with intent to distribute a mixture containing methamphetamine. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment should be forfeited to the United States.
* Cristian Vides-Carranza, age 29, of Schuyler, Nebraska, is charged with illegal reentry into the United States on or about October 2, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.New Orleans Woman Charged with Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CAROLYN TREAUDO, age 53, of Marrero, was charged today in a one-count Bill of Information with theft of government funds.
According to the Bill of Information, in 2009 and 2010, TREAUDO stole approximately $94,840 from the Federal Emergency Management Agency. If convicted, TREAUDO faces up to ten years incarceration and a fine of up to $250,000.
U.S. Attorney Polite reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Department of Homeland Security - Office of Inspector General in investigating this matter and thanked the Louisiana Legislative Auditor for its assistance. Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.
New Orleans Man Indicted for Selling Counterfeit Movie DVDs and Music CDsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARNELL REED, age 40, of New Orleans, was charged today in a two-count Indictment with Criminal Copyright Infringement.
According to the Indictment, REED reproduced and distributed more than 10 copies of one or more various sound recordings and motion pictures, which were protected by copyright and have a total aggregate retail value of more than $2,500, for the purpose of commercial advantage and private financial gain.
On each count, REED faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations and Investigators from the Louisiana Department of Justice, Attorney General in investigating this matter. Assistant United States Attorney Loan AMimi@ Nguyen is in charge of the prosecution.
New Jersey U.S. Attorney's Office Collects $53 Million in Asset Forfeiture and More Than $17 Million in Civil and Criminal ActionsRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishmanannounced today that the New Jersey District, working with partner agencies and divisions, collected$52,963,571in asset forfeiture actions in Fiscal Year 2014; it also collected $17,289,649 – $15,063,556 in criminal actions and $2,226,093 in civil actions – during the same fiscal year.
Additionally, New Jersey worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $27,762,608 in cases pursued jointly.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending Sept. 30, 2014. Across the country, the more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” Attorney General Holder said. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“Over the past five years, the dedicated public servants in my office have collected substantially more in fines, penalties, restitution and settlements – more than $570 million – than it has cost to operate the office,” U.S. Attorney Fishman said. “That money is used in a variety of ways: It makes whole the victims of crimes , is shared with our state and local law enforcement partners, and returned to the general treasury for the benefit of all Americans.”
This past July, the District of New Jersey recovered $1.6 million as part of a total $10.4 million penalty against two shipping firms – Columbia Shipmanagement (Deutschland) GmbH (CSM-D), a German corporation, and Columbia Shipmanagement Ltd. (CSM-CY), company based in Cyprus. The companies had pleaded guilty to charges including violation of the Act to Prevent Pollution from Ships, for failing to maintain an accurate oil record book, obstruction of justice and making false statements.
The U.S. Attorneys’ Offices, along with the Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.The $52,963,571 in assets the District of New Jersey collected through forfeiture actions is deposited into the Department of Justice Assets Forfeiture Fund and used to restore funds to crime victims and for a variety of law enforcement purposes.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Departments of Housing and Urban Development, Health and Human Services, Education, the Internal Revenue Service and Small Business Administration.
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Monmouth County, N.J., Man Pleads Guilty to Operating $20 Million Ponzi SchemeRead the Press Release
TRENTON, N.J. – A Colts Neck, New Jersey, man who defrauded dozens of investors today admitted operating a $20 million Ponzi scheme out of his Fair Haven, New Jersey office and Miami residence, U.S. Attorney Paul J. Fishman announced.
Louis J. Spina, 57, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court: Spina admitted he solicited victims to invest through his business, LJS Trading, LLC. After receiving the funds, Spina provided each investor with a note specifying a guaranteed monthly rate of return, typically ranging from nine to 14 percent. Between August 2010 and November 2013, Spina collected $20 million from 36 investors and deposited the funds into the LJS bank account.
Over the course of the scheme, Spina only transferred $9.5 million of the investor funds into a trading account. He used the remaining $10.5 million to pay the investors’ monthly interest payments, return portions of some investors’ principals, and to pay for his own personal expenses, including car purchases, luxury apartment rental payments, and a $400,000 donation to a private university.
Spina admitted he lied to investors about the status of their funds, telling them they were making large gains despite the fact he lost all of the $9.5 million that was actually invested. When certain investors became suspicious, he reassured them by sending misleading screen shots of their account balances that reflected only temporary gains, not the total daily losses. In addition, Spina was able to defraud his investors out of an additional $1.7 million by fabricating a story about a wealthy individual planning to buy LJS, which he told them would result in a 14 to 30 percent return on their investment. Altogether, Spina’s scheme cost investors a total of $12.7 million.
The wire fraud count to which Spina pleaded guilty carries a maximum potential penalty of 20 years in prison and $250,000 fine or twice the gross gain or loss from the offense. Spina will also be ordered to pay restitution at sentencing, currently scheduled for Feb. 26, 2015.
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; and the U.S. Secret Service, under the direction of Assistant Special Agent in Charge Carl Agnelli in Newark, for their work in the investigation.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.14-409
Defense counsel: Assistant Federal Public Defender Brian P. Reilly Esq., Trenton
Spina, Louis Information
Middle District of North Carolina U.S. Attorney’s Office Collects $1,663,637.55 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
GREENSBORO, N.C. – U.S. Attorney Ripley Rand announced today that the Middle District of North Carolina collected $1,663,637.55 in criminal and civil actions in Fiscal Year 2014. Of this amount, $1,412,194.72 was collected in criminal actions and $251,422.83 was collected in civil actions.
Attorney General Eric Holder announced on November 19, 2014, that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
The U.S. Attorney’s Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The U.S. Attorney’s Office in the Middle District of North Carolina, working with partner agencies and divisions, also collected $2,457,822.00 in asset forfeiture actions during FY 2014. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Mexican Man Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth Polite announced that ANTONIO RODRIGUEZ-GALLARDO, age 32, a citizen of Mexico, pled guilty today to a one-count indictment for illegal reentry of removed alien.
According to the indictment, on or about September 4, 2014, ANTONIO RODRIGUEZ-GALLARDO was found in the United States after having been officially deported and removed on or about October 29, 2012
ANTONIO RODRIGUEZ-GALLARDO faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Triche Milazzo set sentencing for January 8, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Mescalero Apache Man Sentenced for Federal Assault Conviction Arising Out of Drive-By ShootingRead the Press Release
ALBUQUERQUE – Rufus Juan Lester, 23, a member of the Mescalero Apache Nation, was sentenced yesterday afternoon in federal court in Las Cruces, N.M., for his assault conviction. Lester was sentenced to 66 months in prison followed by three years of supervised release.
Lester was arrested on Aug. 6, 2013, on a criminal complaint alleging that he fired multiple shots at a residence located on the Mescalero Apache Reservation in the early hours of Nov. 24, 2012. Lester subsequently was indicted and charged with eight counts of assault with a dangerous weapon and one count of discharging firearms during and in relation to crimes of violence.
On May 16, 2014, Lester pled guilty to Counts 1 through 8 of the indictment charging him with assault with a dangerous weapon. In his plea agreement, Lester admitted riding in the passenger seat of a vehicle while another person drove past a residence in Mescalero, N.M. As the vehicle went past the residence, Lester used two rifles to shoot at the residence. Lester acknowledged that the residence was occupied by two adults and six children at the time of the shooting, and that he assaulted each of the occupants when he shot at the residence.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Manhattan U.S. Attorney Announces Extradition of Former Member of German Armed Services Charged with Narcotics ConspiraciesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas M. Harrigan, the Deputy Administrator of the United States Drug Enforcement Administration (“DEA”), today announced that MICHAEL FILTER was extradited from Estonia where he had been arrested for conspiracy to import cocaine into the United States and conspiracy to distribute cocaine on board an aircraft. FILTER, a German citizen, arrived in the Southern District of New York yesterday, and made his first appearance in Manhattan federal court today. FILTER’s co-defendants, Joseph Manuel Hunter, Timothy Vamvakias, and Dennis Gogel were previously arrested in Thailand (Hunter) and Liberia (Vamvakias and Gogel) and brought to the United States in September 2013. Co-defendant Slawomir Soborski was previously arrested in Estonia in September 2013 and was extradited to the United States in April 2014.
Manhattan U.S. Attorney Preet Bharara said: “Now that he has arrived in the Southern District, Michael Filter can begin to answer for his role as an alleged member of a would-be ‘security team’ to international narcotics traffickers. This Office remains committed to pursuing and prosecuting those who would help perpetuate the flow of illegal drugs into our country.”
DEA Deputy Administrator Thomas M. Harrigan said: “Michael Filter, who allegedly facilitated global drug trafficking and violence with associates such as Joseph Hunter, will now face justice in the United States. A former member of the German armed forces, Filter was a key player in a worldwide criminal enterprise that included associates charged in an elaborate murder-for-hire scheme.”
According to the allegations contained in the Superseding Indictment:
All five defendants have previously served in the armed forces of their respective nations. FILTER and Gogel served in the German armed forces until 2009 and 2010, respectively; Soborski served in the Polish armed forces until 2011; and Hunter and Vamvakias served in the U.S. Army until 2004. FILTER, Gogel, and Soborski were trained as snipers; Hunter served as a sniper instructor and a senior drill sergeant, training other soldiers in marksmanship and tactics; and Vamvakias attained the rank of sergeant and served both as infantryman and a military police officer.
During meetings in Asia, Africa, and the Caribbean, beginning in January 2013 and continuing through late September 2013, Hunter communicated with three confidential sources (the “CSs”) working with the DEA, who purported to be Colombian narcotics traffickers. Hunter agreed to serve as the head of security for the CSs’ purported narcotics trafficking organization, and assembled a “security team” consisting of FILTER, Vamvakias, Gogel, and Soborski.
Hunter and his co-defendants, including FILTER, thereafter agreed, in meetings and communications with the CSs, to provide security and surveillance services to the narcotics trafficking organization. Hunter and his four co-defendants provided a variety of services to the CSs’ purported narcotics organization. In late March 2013, in Thailand, at Hunter’s direction, FILTER, Soborski, and Gogel surveilled a vessel on behalf of the CSs’ purported narcotics trafficking organization. In April 2013, in Mauritius, at the direction of the CSs, FILTER, Soborski, and Gogel provided security for a meeting at which the participants discussed the distribution of illegal narcotics to the United States, and in late June 2013, in the Bahamas, FILTER, Soborski, Vamvakias, and Gogel conducted surveillance of a purported U.S.-registered aircraft at the direction of one of the CSs. That CS informed the defendants that the aircraft was to be loaded with 300 kilograms of cocaine to be shipped to New York.
In late September 2013, FILTER was arrested in Estonia, with Soborski, in coordination with Estonian authorities, and remained in the custody of Estonian authorities until his extradition today to the United States.
FILTER, Hunter, Vamvakias, Gogel, and Soborski have each been charged with conspiracy to import cocaine into the United States (Count One) and FILTER, Vamvakias, Gogel, and Soborski are also charged with conspiracy to distribute cocaine on board an aircraft (Count Five).
Hunter, Vamvakias, and Gogel are also charged with conspiracy to murder a law enforcement agent and a person assisting a law enforcement agent (Count Two); conspiracy to kill a person to prevent communications to law enforcement agents (Count Three); and conspiracy to possess a firearm in furtherance of a crime of violence (Count Four). These additional charges against Hunter, Vamvakias, and Gogel relate to their alleged participation in a murder-for-hire plot proposed by the CSs targeting a Special Agent of the DEA and a person who those defendants believed was providing information to the DEA about the CSs’ narcotics trafficking. FILTER is not charged with participating in the murder-for-hire plot.
Each count carries a maximum penalty of life in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. The case is assigned to U.S. District Judge Laura Taylor Swain. Trial has been set for March 9, 2015.
The charges, arrests, and transfers of the defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division; DEA’s Bangkok, Ghana, Pretoria, Bucharest, Manila, Nassau, and Copenhagen Offices; the Royal Thai Police Narcotics Suppression Bureau and Crime Suppression Division; Royal Thai Immigration; the Royal Thai Attorney General’s Office; Republic of Liberia’s National Security Agency; the Republic of Liberia’s Attorney General's Office; the Estonian Police and Border Guard; the Estonian National Criminal Police, Investigative Bureau; the Estonian State Prosecutors Office; the Royal Bahamas Police Force and Drug Enforcement Unit; the Romanian National Police; Interpol; and the U.S. Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael Lockard, Aimee Hector, Anna Skotko, and Emil Bove are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Manhattan Man Charged with Traveling to New Jersey for Illegal Sexual Activity with 13-Year-Old GirlRead the Press Release
CAMDEN, N.J. – A Manhattan man was arrested today for traveling to New Jersey for the purpose of sexually abusing a 13-year-old girl, U.S. Attorney Paul J. Fishman announced.
Michael Tway Smith, 66, of New York, was arrested by special agents of the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) in Maple Shade, New Jersey, where he expected to meet the girl. He is scheduled to have his initial court appearance today before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to the complaint:
Beginning on Nov. 13, 2014, Smith initiated a series of chats on a website with an undercover agent from ICE HSI, whom he believed was a 13-year-old girl. Over the course of the next several days, Smith had multiple online communications with the agent during which he indicated his desire to engage in sexual activity with the fictitious girl. Smith then made arrangements to travel from Manhattan to Maple Shade. On Nov. 19, 2014, Smith traveled to Maple Shade, where he had reserved a room at a motel and contacted the fictitious girl to finalize the meeting. Today, Smith went to a convenience store near the motel believing he was going to meet the girl and return to the motel with her to engage in sexual activity.
The count of traveling with intent to engage in illicit sexual conduct carries a maximum potential penalty of 30 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of ICE HSI, under the direction of Acting Special Agent in Charge John P. Woods in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Steven D’Aguanno of the New Jersey U.S. Attorney’s Office Camden Office.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Smith, Michael Tway Complaint
Manhattan and Brooklyn U.S. Attorneys Announce Guilty Plea in Manhattan Federal Court of Colombian Narcotics Kingpin to Massive Cocaine ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York (“SDNY”), and Loretta E. Lynch, the United States Attorney for the Eastern District of New York (“EDNY”), announced that DANIEL BARRERA BARRERA, also known as “Loco Barrera,” a citizen of Colombia, pled guilty today in the Southern District of New York before U.S. Magistrate Judge Ronald L. Ellis to conspiring to distribute and manufacture cocaine knowing that it would be imported into the United States. For decades, BARRERA manufactured hundreds of tons of cocaine annually in Colombia and trafficked it to various parts of the world, including the U.S., and laundered tens of millions of dollars in proceeds from that narcotics trafficking activity. BARRERA was previously extradited from Colombia to the United States on July 9, 2013.
In March 2010, the U.S. Department of the Treasury’s Office of Foreign Assets Control designated BARRERA as a “Special Designated Narcotics Trafficker,” pursuant to the Foreign Narcotics Kingpin Designation Act. BARRERA was arrested in Venezuela on September 18, 2012. Thereafter, he was sent to Colombia, from where the U.S. sought and obtained BARRERA’s extradition. The extradition and guilty plea of BARRERA is the result of an ongoing Organized Crime Drug Enforcement Task Forces (“OCDETF”) investigation led by the Drug Enforcement Administration (“DEA”) and Homeland Security Investigations (“HSI”). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Preet Bharara said: “Daniel Barrera Barrera operated at the interface of two Colombian terrorist organizations that were sworn enemies of each other but each of which benefitted from Barrera’s patronage. As he has now admitted in our courthouse, Barrera bought cocaine paste from the FARC and, under the protection of the AUC, turned it into hundreds of tons of hugely profitable product annually, some of which he knew was intended for distribution in the U.S. A drug kingpin who enriched two terrorist organizations and himself by producing and peddling poison now stands to lose his wealth, his empire, and his liberty.”
U.S. Attorney Loretta E. Lynch said: “Daniel ‘Loco’ Barrera Barrera’s reign as one of the world’s most prolific narcotics traffickers has come to an end. Barrera’s illegal empire, funded by millions of dollars of illicit proceeds and backed by some of the most lethal drug cartels and terrorist groups in the world, wreaked havoc in Colombia and around the world for decades. The amount of destruction Barrera wrought upon the world, all in pursuit of staggering profits, is truly incalculable. This plea demonstrates our government’s commitment to bringing all narcotics traffickers to justice, no matter how rich, powerful, ruthless and violent they may be.”
As alleged in the Superseding Indictment filed in the Southern District of New York (S1 07 Cr. 862 (AKH)), the Superseding Indictment filed in the Eastern District of New York (S2 10 Cr. 288 (ILG)), statements made at today’s guilty plea and other court proceedings, and other information in the public record:
From 1998 until 2010, BARRERA ran a cocaine manufacturing and trafficking syndicate out of Colombia. BARRERA purchased the raw cocaine base or paste from the designated terrorist group Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia, or the “FARC”). The FARC, which has been and is dedicated to the violent overthrow of the democratically elected Government of Colombia, has been the world’s largest supplier of cocaine and has engaged in bombings, massacres, kidnappings, and other acts of violence within Colombia.
After purchasing the raw cocaine base from the FARC, BARRERA converted the raw cocaine into powder at laboratories he owned and operated in an area of Colombia controlled by the since demobilized terrorist group, Autodefensas Unidas de Colombia (the “AUC”). For years, the AUC’s main political objective was to defeat the FARC in armed conflict, and it financed its terrorist activities through the proceeds of cocaine trafficking in AUC-controlled regions of Colombia. At the time of BARRERA’s criminal conduct, the FARC and the AUC were both designated by the U.S. Department of State as Foreign Terrorist Organizations.
After processing the cocaine powder in his laboratories, BARRERA arranged for the shipment and transportation of the cocaine powder to locations on four continents, including the United States. Although BARRERA purchased raw materials for cocaine production from the FARC, he was able to maintain his network of cocaine-processing laboratories in AUC-controlled territory, in part by paying monthly “taxes” to the AUC. The fees BARRERA paid to the AUC also allowed him to safely move the processed cocaine through and out of Colombia.
Each month, BARRERA processed approximately 30,000 kilograms of raw cocaine base into about the same amount of cocaine powder, resulting in approximately 400 tons of cocaine annually. In total, BARRERA reaped tens of millions of dollars of profits from cocaine trafficking, which he laundered through illicit means.
Earlier today, BARRERA, 47, pled guilty in the Southern District of New York to one count of conspiring to distribute and manufacture cocaine knowing it would be unlawfully imported into the U.S. On that count, BARRERA faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. BARRERA is scheduled to be sentenced by U.S. District Judge Alvin K. Hellerstein on February 27, 2015.
On October 9, 2014, BARRERA pleaded guilty in the Eastern District of New York to one count of conspiring to launder money. On that count, BARRERA faces a maximum sentence of 20 years in prison. BARRERA is scheduled to be sentenced by U.S. District Judge I. Leo Glasser on January 22, 2015.
BARRERA is also charged in the Southern District of Florida with one count of conspiring to import cocaine into the U.S. and one count of conspiring to manufacture and distribute cocaine knowing that it would be unlawfully imported into the U.S. On those counts, BARRERA faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. Following his prosecutions in the Southern and Eastern Districts of New York, BARRERA will be presented and arraigned in the Southern District of Florida. The charge and allegations contained in the Southern District of Florida Indictment are merely accusations and the defendant is presumed innocent of that charge unless and until proven guilty.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara and Ms. Lynch praised the outstanding work of the OCDETF, working in cooperation with HSI New York’s El Dorado Task Force, the DEA’s Bogota Country Office, the DEA’s Caracas Country Office, the DEA’s Miami Field Division, the DEA’s New York Drug Enforcement Task Force – which comprises agents and officers of the DEA, the New York City Police Department, and the New York State Police – as well as HSI Bogota. Mr. Bharara and Ms. Lynch also thanked the Colombian National Police, the U.S. Marshals Service, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
The Southern District of New York case is being handled by that office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Jenna Dabbs, Benjamin Naftalis, and Andrea Surratt are in charge of the prosecution. The Eastern District of New York case is being handled by that office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Justin Lerer, Soumya Dayananda, and Amir Toossi are in charge of the prosecution.
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Manhattan and Brooklyn U.S. Attorneys Announce Guilty Plea in Manhattan Federal Court of Colombian Narcotics Kingpin to Massive Cocaine ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York (“SDNY”), and Loretta E. Lynch, the United States Attorney for the Eastern District of New York (“EDNY”), announced that DANIEL BARRERA BARRERA, also known as “Loco Barrera,” a citizen of Colombia, pled guilty today in the Southern District of New York before U.S. Magistrate Judge Ronald L. Ellis to conspiring to distribute and manufacture cocaine knowing that it would be imported into the United States. For decades, BARRERA manufactured hundreds of tons of cocaine annually in Colombia and trafficked it to various parts of the world, including the U.S., and laundered tens of millions of dollars in proceeds from that narcotics trafficking activity. BARRERA was previously extradited from Colombia to the United States on July 9, 2013.
In March 2010, the U.S. Department of the Treasury’s Office of Foreign Assets Control designated BARRERA as a “Special Designated Narcotics Trafficker,” pursuant to the Foreign Narcotics Kingpin Designation Act. BARRERA was arrested in Venezuela on September 18, 2012. Thereafter, he was sent to Colombia, from where the U.S. sought and obtained BARRERA’s extradition. The extradition and guilty plea of BARRERA is the result of an ongoing Organized Crime Drug Enforcement Task Forces (“OCDETF”) investigation led by the Drug Enforcement Administration (“DEA”) and Homeland Security Investigations (“HSI”). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Preet Bharara said: “Daniel Barrera Barrera operated at the interface of two Colombian terrorist organizations that were sworn enemies of each other but each of which benefitted from Barrera’s patronage. As he has now admitted in our courthouse, Barrera bought cocaine paste from the FARC and, under the protection of the AUC, turned it into hundreds of tons of hugely profitable product annually, some of which he knew was intended for distribution in the U.S. A drug kingpin who enriched two terrorist organizations and himself by producing and peddling poison now stands to lose his wealth, his empire, and his liberty.”
U.S. Attorney Loretta E. Lynch said: “Daniel ‘Loco’ Barrera Barrera’s reign as one of the world’s most prolific narcotics traffickers has come to an end. Barrera’s illegal empire, funded by millions of dollars of illicit proceeds and backed by some of the most lethal drug cartels and terrorist groups in the world, wreaked havoc in Colombia and around the world for decades. The amount of destruction Barrera wrought upon the world, all in pursuit of staggering profits, is truly incalculable. This plea demonstrates our government’s commitment to bringing all narcotics traffickers to justice, no matter how rich, powerful, ruthless and violent they may be.”
As alleged in the Superseding Indictment filed in the Southern District of New York (S1 07 Cr. 862 (AKH)), the Superseding Indictment filed in the Eastern District of New York (S2 10 Cr. 288 (ILG)), statements made at today’s guilty plea and other court proceedings, and other information in the public record:
From 1998 until 2010, BARRERA ran a cocaine manufacturing and trafficking syndicate out of Colombia. BARRERA purchased the raw cocaine base or paste from the designated terrorist group Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia, or the “FARC”). The FARC, which has been and is dedicated to the violent overthrow of the democratically elected Government of Colombia, has been the world’s largest supplier of cocaine and has engaged in bombings, massacres, kidnappings, and other acts of violence within Colombia.
After purchasing the raw cocaine base from the FARC, BARRERA converted the raw cocaine into powder at laboratories he owned and operated in an area of Colombia controlled by the since demobilized terrorist group, Autodefensas Unidas de Colombia (the “AUC”). For years, the AUC’s main political objective was to defeat the FARC in armed conflict, and it financed its terrorist activities through the proceeds of cocaine trafficking in AUC-controlled regions of Colombia. At the time of BARRERA’s criminal conduct, the FARC and the AUC were both designated by the U.S. Department of State as Foreign Terrorist Organizations.
After processing the cocaine powder in his laboratories, BARRERA arranged for the shipment and transportation of the cocaine powder to locations on four continents, including the United States. Although BARRERA purchased raw materials for cocaine production from the FARC, he was able to maintain his network of cocaine-processing laboratories in AUC-controlled territory, in part by paying monthly “taxes” to the AUC. The fees BARRERA paid to the AUC also allowed him to safely move the processed cocaine through and out of Colombia.
Each month, BARRERA processed approximately 30,000 kilograms of raw cocaine base into about the same amount of cocaine powder, resulting in approximately 400 tons of cocaine annually. In total, BARRERA reaped tens of millions of dollars of profits from cocaine trafficking, which he laundered through illicit means.
Earlier today, BARRERA, 47, pled guilty in the Southern District of New York to one count of conspiring to distribute and manufacture cocaine knowing it would be unlawfully imported into the U.S. On that count, BARRERA faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. BARRERA is scheduled to be sentenced by U.S. District Judge Alvin K. Hellerstein on February 27, 2015.
On October 9, 2014, BARRERA pleaded guilty in the Eastern District of New York to one count of conspiring to launder money. On that count, BARRERA faces a maximum sentence of 20 years in prison. BARRERA is scheduled to be sentenced by U.S. District Judge I. Leo Glasser on January 22, 2015.
BARRERA is also charged in the Southern District of Florida with one count of conspiring to import cocaine into the U.S. and one count of conspiring to manufacture and distribute cocaine knowing that it would be unlawfully imported into the U.S. On those counts, BARRERA faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. Following his prosecutions in the Southern and Eastern Districts of New York, BARRERA will be presented and arraigned in the Southern District of Florida. The charge and allegations contained in the Southern District of Florida Indictment are merely accusations and the defendant is presumed innocent of that charge unless and until proven guilty.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara and Ms. Lynch praised the outstanding work of the OCDETF, working in cooperation with HSI New York’s El Dorado Task Force, the DEA’s Bogota Country Office, the DEA’s Caracas Country Office, the DEA’s Miami Field Division, the DEA’s New York Drug Enforcement Task Force – which comprises agents and officers of the DEA, the New York City Police Department, and the New York State Police – as well as HSI Bogota. Mr. Bharara and Ms. Lynch also thanked the Colombian National Police, the U.S. Marshals Service, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
The Southern District of New York case is being handled by that office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Jenna Dabbs, Benjamin Naftalis, and Andrea Surratt are in charge of the prosecution. The Eastern District of New York case is being handled by that office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Justin Lerer, Soumya Dayananda, and Amir Toossi are in charge of the prosecution.
Man Faces Seven Years in Federal Prison for Theft of Public Funds and Aggravated Identity TheftRead the Press Release
DALLAS — Roberto Boris Fernandez appeared before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to federal felony offenses stemming from his conspiracy to obtain tax refunds by filing fraudulent tax returns using stolen names and social security information, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Fernandez pleaded guilty to one count of conspiracy to commit theft of public funds and one count of aggravated identity theft. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine on the conspiracy count and a mandatory consecutive two-year sentence and a $250,000 fine on the aggravated identity theft count. Sentencing is set for March 4, 2015, before U.S. District Judge Ed Kinkeade. Fernandez remains in custody.
According to the factual resume filed, during January 2012, Fernandez conspired with others to engage in a scheme to obtain tax refunds by electronically filing fraudulent income tax returns using stolen names and social security information. The returns falsely represented that the taxpayers were entitled to a refund because of a falsely created Earned Income Credit. The returns were filed through Turbo Tax, an online tax preparation service, and directed the Internal Revenue Service (IRS) to deposit the refunds onto Turbo Tax debit cards that were mailed to coconspirators’ addresses. Fernandez and the coconspirators used the debit cards at automatic teller machines (ATMs) to withdraw cash.
In fact, according to the factual resume filed, for several hours during the evening and early morning hours of January 30-31, 2012, Fernandez and another co-conspirator traveled in a limousine Fernandez had rented to conduct multiple withdrawals from the Turbo Tax debit cards at various ATMs. However, the Little Elm Police Department stopped the limousine for a traffic violation. At the time, Fernandez was the sole passenger. While searching the limousine, officers seized Fernandez’s backpack, a cell phone, an air card, several Turbo Tax envelopes and debit cards, $8,295 in cash, and ATM receipts. Inside the backpack, officers found handwritten personal identifying information (PII) for approximately 200 individuals, together with notations as to refund amounts, personal identification numbers (PINs), and dates on which refunds were expected. Eight additional unopened Turbo Tax envelopes containing Turbo Tax debit cards issued in third party names were also found in the backpack.
IRS Criminal Investigation, according to the factual resume, identified 84 fraudulent income tax returns for the 2011 tax year with refund claims totaling $435,219 that were associated with the debit cards and identifying information located in the backpack.
Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Los Angeles Man Pleads Guilty to Credit Card Fraud Perpetrated in Sacramento AreaRead the Press Release
SACRAMENTO, Calif. —Oneal Damar Hamilton, 36, of Los Angeles, pleaded guilty today to access device fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Hamilton’s accomplice would impersonate bank card customers and request changes in the account holder’s contact information. The accomplice would then request that duplicate credit cards, with Hamilton listed as an authorized user, be sent to Hamilton’s address. Hamilton took cash advances off the cards and used the cards to acquire merchandise at stores in the Sacramento area until the fraud was detected and the cards were deactivated.
This case is the product of an investigation by the United States Secret Service. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Hamilton has been in custody since his arrest in Los Angeles on March 15, 2014.
Hamilton is scheduled to be sentenced by United States District Judge Troy L. Nunley on February 5, 2015. Hamilton faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Justice Department Recovers Nearly $6 Billion from False Claims Act Cases in Fiscal Year 2014Read the Press Release
First Annual Recovery to Exceed $5 Billion; Over 700 Whistleblower Lawsuits for Second Consecutive Year
The U.S. Department of Justice obtained a record $5.69 billion in settlements and judgments from civil cases involving fraud and false claims against the government in the fiscal year ending September 30, Acting Associate Attorney General Stuart F. Delery and Acting Assistant Attorney General Joyce R. Branda for the Civil Division announced today. This is the first time the department has exceeded $5 billion in cases under the False Claims Act, and brings total recoveries from January 2009 through the end of the fiscal year to $22.75 billion – more than half the recoveries since Congress amended the False Claims Act 28 years ago to strengthen the statute and increase the incentives for whistleblowers to file suit.
“In the past three years, we have achieved the three largest annual recoveries ever recorded under the statute,” said Acting Associate Attorney General Delery. “This sustained success demonstrates that these figures result not only from large individual matters, but from a continuous commitment year after year to pursue those who defraud taxpayers and to remain vigilant in identifying those who would unlawfully obtain money from the federal fisc.”
The recoveries reflect the administration’s priorities to hold the financial industry accountable for its part in the gross misconduct that led to the housing and mortgage crisis, and to continue to root out fraud in the health care industry. In fiscal year 2014, the department recovered an unprecedented $3.1 billion from banks and other financial institutions involved in making false claims for federally insured mortgages and loans. False claims against federal health care programs such as Medicare and Medicaid accounted for another $2.3 billion. These amounts reflect federal losses only. In many of these cases, the department was instrumental in recovering additional billions of dollars for consumers and state treasuries.
“It has been an extraordinary year for civil fraud recoveries, but the true significance is not in breaking records or making history; it is in the billions of dollars restored to the federal treasury,” said Acting Assistant Attorney General Branda. “The False Claims Act was enacted both to protect vital taxpayer dollars and deter those who would misuse public funds. The department will continue to enforce the law aggressively to ensure the integrity of government programs designed to keep us safer, healthier and economically more prosperous.”
The False Claims Act is the government’s primary civil remedy to redress false claims for government funds and property under government contracts, including national security and defense contracts, as well as under government programs as varied as Medicare, veterans’ benefits, federally insured loans and mortgages, transportation and research grants, agricultural supports, school lunches and disaster assistance. With more whistleblowers coming forward since the act was strengthened in 1986, the government opened more investigations, which led to the surge in recoveries we see today.
Most false claims actions are filed under the act’s whistleblower, or qui tam, provisions that allow individuals to file lawsuits alleging false claims on behalf of the government. If the government prevails in the action, the whistleblower, known as a relator, receives up to 30 percent of the recovery. The number of qui tam suits filed in fiscal year 2014 exceeded 700 for the second year in a row. Recoveries in qui tam cases during fiscal year 2014 totaled nearly $3 billion, with whistleblowers receiving $435 million.
Housing and Mortgage Fraud
The $3.1 billion in federal funds recovered in the wake of the housing and mortgage crisis this past fiscal year includes $1.85 billion from Bank of America Corporation, $614 million from JPMorgan Chase, $428 million from SunTrust Mortgage Inc. and $200 million from U.S. Bank. This brings recoveries for civil fraud and false claims against federal housing and mortgage programs from January 2009 through the end of fiscal year 2014 to $4.65 billion – an historic and important amount, especially as it restores scarce funds stolen from vital government programs. For details about the settlements, see previously issued press releases on Bank of America, JPMorgan Chase, SunTrust and U.S. Bank.
Bank of America paid $1.85 billion to settle allegations of false claims in connection with the bank’s practices in underwriting, origination and quality control of residential mortgages the bank sold to Fannie Mae and Freddie Mac, as well as loans insured by the Federal Housing Administration (FHA). The settlement also covered the bank’s alleged submission of inflated insurance claims to the FHA. Bank of America acknowledged that it had misrepresented the quality of loans to Fannie Mae, Freddie Mac and the FHA. The $1.85 billion paid by Bank of America to settle False Claims Act allegations was part of a broader settlement that included a $5 billion penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and $7 billion in relief to consumers harmed by the financial crisis to redress abuses in residential mortgage backed security practices. In total, Bank of America agreed to pay $16.65 billion under the global resolution – the largest civil settlement with a single entity in the department’s history.
SunTrust paid $418 million to settle allegations of false claims in connection with mortgages insured by the FHA. SunTrust admitted that from 2006 to 2012, it originated and underwrote FHA-insured mortgages that did not qualify for federal insurance under the FHA program, failed to institute an effective quality control program to identify noncompliant loans and failed to report the noncompliant loans it did identify to the FHA as required. In addition to the $418 million restored to the federal treasury, SunTrust agreed to pay $500 million in relief to struggling homeowners by various means, including reducing the principal on mortgages for borrowers who are at risk of default and reducing interest rates for homeowners who are current but underwater on their mortgages. SunTrust also agreed to pay $10 million to the federal government and an additional $40 million to state governments to remedy the effects of its improper loan servicing practices. This brings SunTrust’s total payment under the settlement to redress its abusive mortgage origination and servicing practices to $968 million.
These recoveries are part of the broader enforcement efforts by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force in 2009, to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. In September, Attorney General Eric Holder informed an audience at a financial fraud conference that the department had brought more than 60 cases against financial institutions since 2009, resulting in recoveries totaling more than $85 billion, including civil remedies, criminal fines and consumer relief. For more information about the task force, visit www.StopFraud.gov.
Health Care Fraud
The $2.3 billion in health care fraud recoveries in fiscal year 2014 marks five straight years the department has recovered more than $2 billion in cases involving false claims against federal health care programs such as Medicare, Medicaid and TRICARE, the health care program for the military. This steady, significant and continuing success can be attributed to the high priority the Obama Administration has placed on fighting health care fraud. In 2009, Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius announced the creation of an interagency task force, the Health Care Fraud Prevention and Enforcement Action Team (HEAT), to increase coordination and optimize criminal and civil enforcement. This coordination has yielded historic results: from January 2009 through the end of the 2014 fiscal year, the department used the False Claims Act to recover $14.5 billion in federal health care dollars. Most of these recoveries relate to fraud against Medicare and Medicaid. Additional information on the government’s efforts in this area is available at StopMedicareFraud.gov, a webpage jointly established by the Departments of Justice and Health and Human Services.
The pharmaceutical industry accounted for a substantial part of the $2.3 billion in health care fraud recoveries in fiscal year 2014. Global health care giant Johnson & Johnson and its subsidiaries, Janssen Pharmaceuticals and Scios (J&J), paid $1.1 billion to resolve False Claims Act claims relating to the prescription drugs Risperdal, Invega and Natrecor. The government alleged that J&J promoted the drugs for uses not approved as safe and effective by the U.S. Food and Drug Administration (FDA). Because J&J marketed the drugs for uses not covered by federal health care programs, the company’s promotion of the drugs caused physicians and other health care providers to submit hundreds of millions of dollars in alleged false claims against Medicare, Medicaid, TRICARE and other federal health care programs. The government also alleged that J&J paid kickbacks to physicians and to Omnicare Inc., the nation’s largest provider of pharmaceuticals to nursing homes and long-term care facilities. In addition to the federal civil settlement, J&J paid more than $600 million in civil claims for state Medicaid programs and $485 million in criminal fines and forfeitures, making this $2.2 billion global resolution of the government’s claims one of the largest health care fraud settlements in U.S. history.
In a separate settlement, the department also recovered $116 million from Omnicare. The settlement resolved allegations that Omnicare engaged in a kickback arrangement with skilled nursing facilities to induce the facilities to select Omnicare as their pharmacy provider, in violation of the Anti-Kickback Statute, which prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The statute is designed to ensure that the decisions of doctors and other professionals in prescribing drugs or recommending providers are driven by the needs of the patient and not the prospect of personal gain. Since claims for services or supplies induced by kickbacks are not eligible for reimbursement under federal health care programs, the government alleged that these claims violated the False Claims Act. In addition to recovering $116 million in federal claims, the government recovered $8.2 million that will go to states that jointly funded the Medicaid programs impacted by Omnicare’s conduct.
Cases involving hospitals resulted in $333 million in fiscal year 2014 settlements and judgments, with significant recoveries from two hospital chains. Community Health Systems Inc., the nation’s largest operator of acute care hospitals, paid $98.15 million to settle allegations that it billed Medicare, Medicaid and TRICARE for inpatient services that should have been provided in a less costly outpatient or observation setting. Halifax Hospital Medical Center and Halifax Staffing Inc., hospital service providers in Florida, paid $85 million to resolve allegations that it violated the Stark Law, which prohibits hospitals from billing Medicare for certain services when referred by physicians who have a financial relationship with the hospital.
The government also had significant recoveries for home health services provided in alleged violation of the False Claims Act. Amedisys Inc., one of the nation’s largest providers of home health services, paid $150 million to resolve allegations that it billed Medicare for medically unnecessary services, for services to patients who were not homebound and for violations of the Anti-Kickback Statute. The government alleged that Amedisys management pressured nurses and therapists to provide care based on the financial benefits to Amedisys rather than the needs of patients.
In a trio of cases involving cardiac procedures, the government recovered $85 million based on claims involving potentially life threatening conduct. Boston Scientific Corp., which purchased Guidant LLC and Guidant Sales LLC, and Cardiac Pacemakers Inc. in 2006, paid $30 million to settle claims that Guidant sold defective heart devices to health care facilities that implanted them into Medicare patients. The devices were small defibrillators surgically implanted into patients’ chests. When a working device detects an irregular heartbeat, it sends an electrical pulse to shock the heart back to its normal rhythm. The Guidant devices allegedly short circuited, rendering them ineffective. In the other two cases, Kentucky hospitals King’s Daughters Medical Center and Saint Joseph Health System Inc. billed Medicare and Medicaid for coronary procedures that the government alleged were unnecessary. King’s Daughters paid $39 million in federal claims and $2 million in state Medicaid claims to settle allegations that it billed for medically unnecessary coronary stents and diagnostic catheterizations, and that it had prohibited financial relationships with physicians referring patients to the hospital. St. Joseph’s paid $16 million in federal claims and $366,000 in state Medicaid claims to settle allegations that St. Joseph Hospital in London, Kentucky, billed Medicare and Medicaid for numerous invasive cardiac procedures that were performed on patients who did not need them, including procedures involving coronary stents, pacemakers, coronary artery bypass graft surgeries and diagnostic catheterizations.
Other Fraud Recoveries and Actions
Although mortgage, housing and health care fraud dominated recoveries for fiscal year 2014, the department has aggressively pursued fraud in government procurement and other federal programs.
Significant recoveries include settlements with Hewlett-Packard Co. and The Boeing Co. Hewlett-Packard paid $32.5 million to resolve claims involving a contract for IT products and services with the U.S. Postal Service. Boeing paid $23 million to settle alleged false claims for labor on maintenance contracts for the C-17 Globemaster aircraft with the U.S. Air Force.
In addition, the government filed lawsuits against a number of government contractors.
In a lawsuit against Kellogg, Brown & Root (KBR) and two foreign subcontractors arising from claims in connection with KBR’s contract with the U.S. Army to provide wartime logistical support, the government alleged that KBR employees took kickbacks from two subcontractors in return for favorable treatment in the award and performance of numerous subcontracts for maintenance, transportation and other services in Iraq. The alleged scheme resulted in inflated prices for services and equipment that were often deficient or not provided at all. Three KBR employees previously pleaded guilty to taking kickbacks or making false statements in connection with the allegations made in the government’s complaint.
The government filed a complaint against global software provider CA Inc. after intervening in a whistleblower suit against the company. The government’s complaint alleges that CA knowingly overcharged the government for software licenses and maintenance in connection with a General Services Administration (GSA) Multiple Award Schedule (MAS) contract. Under the MAS program, GSA negotiates prices and contract terms for goods and services that are later purchased by federal agencies throughout the government. To gain access to the vast government marketplace, contractors agree to disclose their commercial pricing practices and discounts so GSA can negotiate fair prices for government customers. The government’s complaint alleges that CA provided incomplete and inaccurate information that resulted in the Departments of Defense, Energy, Health and Human Services, and Labor, and other federal agencies paying higher prices for software licenses and maintenance than they should have.
The government recovered an $80 million judgment against BNP Paribas, a global financial institution headquartered in Paris, France, for violations of the Department of Agriculture’s (USDA) Supplier Credit Guarantee Program. Under the program, the USDA guarantees credit extended to foreign importers to purchase grain and other agricultural commodities from domestic growers and distributers, which opens up foreign markets for U.S. commodities. To qualify for the program, the U.S. exporter and the foreign importer must be distinct companies, not under common ownership or control. BNP Paribas consented to an $80 million judgment entered by the court to resolve the government’s allegations that the bank knowingly entered into a scheme to defraud the Supplier Credit Guarantee Program by accepting the assignment of credit guarantees given by U.S. exporters on the sale of grain to Mexican importers under common ownership or control. The government alleged that BNP knew that the exporters and importers were disqualified from the program because of their common ownership and also knew that some of the transactions were total shams that did not involve a sale or shipment at all. Yet when the Mexican importers defaulted on the credit financing, BNP claimed reimbursement from the USDA on the guarantees. In 2012, BNP Paribas vice president Jerry Cruz, who had accepted bribes from the exporters, pleaded guilty to charges involving bank fraud, mail and wire fraud, and money laundering for his part in the scheme.
Recoveries in Whistleblower Suits
Of the $5.69 billion the government recovered in fiscal year 2014, nearly $3 billion related to lawsuits filed under the qui tam provisions of the False Claims Act. During the same period, the government paid out $435 million to the individuals who exposed fraud and false claims by filing a qui tam complaint, often at great risk to their careers.
The number of qui tam suits rose from 30 in 1987, to 300 to 400 a year from 2000 to 2009, to more than 700 for each of the last two fiscal years. The growing number of qui tam lawsuits filed since 2009 has led to increased recoveries, which exceeded $2 billion for the first time in fiscal year 2010, and has approached or exceeded $3 billion ever since. As recoveries increased, so have whistleblower awards. From January 2009 to the end of fiscal year 2014, the government paid awards in excess of $2.47 billion.
“We acknowledge the men and women who have come forward to blow the whistle on those who would commit fraud on our government programs,” said Acting Assistant Attorney General Branda. “In strengthening and protecting the False Claims Act, Congress has given us the law enforcement tools that are so essential to guarding the treasury and deterring others from exploiting and misusing taxpayer dollars. We are grateful for their continued support.”
In 1986, Senator Charles Grassley and Representative Howard Berman led successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. In 2009, Senator Patrick J. Leahy, along with Senator Grassley and Representative Berman, championed the Fraud Enforcement and Recovery Act of 2009, which made additional improvements to the False Claims Act and other fraud statutes. And in 2010, the passage of the Affordable Care Act provided additional inducements and protections for whistleblowers and strengthened the provisions of the federal health care Anti-Kickback Statute.
Acting Assistant Attorney General Branda also expressed her deep appreciation for the many dedicated public servants who investigated and pursued these cases – the attorneys, investigators, auditors and other agency personnel throughout the Civil Division and the U.S. Attorneys’ Offices, as well as the agency Offices of Inspector General, and the many federal and state agencies that contributed to the department’s recoveries this past fiscal year.
“Without the tremendous talent and dedication of the public servants who worked tirelessly to bring these matters to settlement or judgment, the nearly $6 billion in recoveries we announce today would not have been possible,” said Branda. “I commend them all for their exceptional efforts.”
Justice Department Announces Funding Opportunities for Public Safety Projects in Indian CountryRead the Press Release
The Department of Justice today announced the opening of the grant solicitation period for comprehensive funding to support public safety, victim services and crime prevention improvements in American Indian and Alaska Native communities. The department’s Fiscal Year (FY) 2015 Coordinated Tribal Assistance Solicitation (CTAS) was posted today at www.justice.gov/tribal/open-sol.html. The solicitation closes on Feb. 24, 2015.
“The Department of Justice is making a concerted effort – one that we are building on every year – to expand our reach to tribes and make resources more widely available to our partners in Indian country,” said Assistant Attorney General Karol V. Mason for the Office of Justice Programs. “This solicitation addresses an array of tribal justice system issues and will give tribes access to the support they need to keep their communities safe and ensure a just, fair, and effective system for fighting crime.”
CTAS is administered by the Justice Department’s Office of Justice Programs (OJP), Office of Community Oriented Policing Services (COPS), and Office on Violence Against Women (OVW). The funding can be used to enhance law enforcement; bolster adult and juvenile justice systems; prevent and control juvenile delinquency; serve sexual assault, domestic violence and elder victims; and support other efforts to combat crime. To view the FY 2015 CTAS, visit www.justice.gov/sites/default/files/tribal/pages/attachments/2014/11/19/ctas_fy-2015_solicitation.pdf.
Applications for CTAS are submitted through the Justice Department’s Grants Management System (GMS) which enables grantees to register and apply for CTAS online. Applicants must register with GMS prior to submitting an application. An applicant will not be able to submit an application without registering in GMS before the application deadline of 9:00 p.m. Eastern Time (ET), Feb. 24, 2015.
The FY 2015 CTAS reflects improvements and refinements from earlier versions. Feedback was provided to the department during tribal consultations and listening sessions, and includes tribal leaders’ request to improve and simplify the DOJ grant-making process. Changes to DOJ grant programs, enacted with the passage of the Tribal Law and Order Act, are incorporated into the CTAS solicitation and in the appropriate purpose areas. For more information about changes to the CTAS Solicitation from last year, read the FY 2015 CTAS fact sheet.
For the FY2015 CTAS, a tribe or tribal consortium may submit a single application and select from nine competitive grant programs referred to as Purpose Areas. This approach allows the department’s grant-making components to consider the totality of a tribal nation’s overall public safety needs.
The nine purpose areas are:
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Comprehensive Tribal Justice Systems Strategic Planning (OJP/COPS/OVW)
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Public Safety and Community Policing (COPS)
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Justice Systems, and Alcohol and Substance Abuse (BJA)
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Corrections and Correctional Alternatives (BJA)
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Violence Against Women Tribal Governments Program (OVW)
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Children’s Justice Act Partnerships for Indian Communities (OVC)
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Comprehensive Tribal Victim Assistance Program (OVC)
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Juvenile Justice Wellness Courts (OJJDP)
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Tribal Youth Program (OJJDP)
Tribes or tribal consortia may also be eligible for non-tribal government-specific federal grant programs and are encouraged to explore other funding opportunities for which they may be eligible. Additional funding information may be found at www.grants.gov or the websites of individual agencies.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.
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Indictment Charges New York Man in Fraud SchemeRead the Press Release
Jade Grander, 29, of Brooklyn, NY, was charged today by indictment with one count of bank fraud and two counts of access device fraud. The charges arise from the defendant=s alleged participation in a scheme to obtain cash advances at TD Bank using other individuals’ deactivated credit cards by convincing bank tellers to override their Cash Advance Machines in order to process the transaction.
If convicted the defendant faces a maximum possible sentence of 30 years in prison.
The case was investigated by the United States Secret Service, and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
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, 215-861-8525Housekeeper Charged with Series of Burglaries at the Ahwahnee HotelRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 32-count indictment today against Jennifer Crystal Downing, 39, of Fresno, charging her with 16 counts of first degree burglary and 16 counts of theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, Downing entered rooms in the Ahwahnee Hotel and stole cash from the hotel’s customers. The burglaries and thefts began in March 2014 and continued through October 2014. At the time, Downing was working on the Ahwahnee’s housekeeping staff.
This case is the product of an investigation by the National Park Service. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
If convicted of burglary, Downing faces a maximum statutory penalty on each count of six years in prison and a $250,000 fine, and if convicted of theft, she faces a maximum statutory penalty on each count of one year in prison and a $100,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Houma Man Charged with Violating the Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PHILLIP BOOKER, age 59, of Houma, Louisiana, was charged today in a one-count Bill of Information with violating the Federal Controlled Substances Act.
According to the Bill of Information, BOOKER possessed with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Scheduled II drug controlled substance.
If convicted, BOOKER faces a maximum term of 20 years incarceration and/or a fine of $1,000,000, and 3 years of supervised release following any term of imprisonment.
U.S. Attorney Kenneth Allen Polite, Jr. reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Honduran Man Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EDIN ANTONIO PLEITES-ZAMORA, age 24, a citizen of Honduras who most recently resides in Houma, Louisiana, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the Indictment, PLEITES-ZAMORA reentered the United States on or about November 4, 2014, after having been previously removed on May 25, 2012.
If convicted, PLEITES-ZAMORA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, one year of supervised release of one year following any term of incarceration, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, United States Border Patrol in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Harrisburg Man Sentenced to Prison on Firearms Charges as Part of On-Going Partnership to Prosecute Violent CrimeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Harrisburg man was sentenced today, in federal court in Harrisburg by Senior United States District Judge Sylvia H. Rambo, to serve 150 months in prison on the charge of possession of a firearm by a convicted felon.
According to United States Attorney Peter Smith, Elijah U. Brown, Jr., age 40, of Harrisburg, pleaded guilty to possession of a firearm by a convicted felon in May 2014. Brown’s co-defendant Carlos C. Hill was previously sentenced by Judge Rambo to 235 months.
The charges were the result of an on-going partnership between the Dauphin County District Attorney’s Office and the U.S. Attorney’s Office announced in August 2012 to respond to a surge of violent crime within the city. The charges against Brown arose from an incident in which, after Hill brandished a stolen firearm at a female victim in the 1600 Block of Park Street in Harrisburg, Brown hid the firearm. The firearm was subsequently recovered by the Harrisburg Bureau of Police.
In addition to the prison term, Senior Judge Rambo also ordered that Brown be supervised by a probation officer for three years following his release from prison.
Brown was indicted by a federal grand jury on September 26, 2012, after an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Harrisburg Bureau of Police. The case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
Hammond Man Sentenced for Stolen Identity Refund FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRELL HARLAND, age 32, of Hammond, Louisiana, was sentenced today for stolen identity refund fraud.
U.S. District Judge Jane Triche Milazzo sentenced HARLAND to 32 months imprisonment, three years of supervised release, and ordered HARLAND to pay $65,168 in restitution to the IRS.
According to court documents, on May 3, 2012, the St. Tammany Parish Sheriff’s Office (STPSO) executed a search warrant at HARLAND’s residence. In the home, deputies found evidence of identity theft, including lists of names and social security numbers. HARLAND told deputies that he had purchased the stolen identities online.
At the request of the STPSO, the IRS determined that several of the stolen identities found in HARLAND’s residence had been used to file what appeared to be fraudulent tax returns. The IRS interviewed several of the individuals whose identities had been used and confirmed that these individuals had not given HARLAND the authority to file tax returns in their names and that all income and dependent information on the tax returns was false. IRS records show that HARLAND caused approximately $65,168 in loss to the IRS by filing fraudulent tax returns with stolen identities.
U.S. Attorney Polite praised the Internal Revenue Service in investigating this matter. Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.