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20 November 2014
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.
Guilty Pleas in Heroin Trafficking OrganizationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANTOINETTE KELLY, age 32, and AMBROSE WILLIAMS, age 43, both of New Orleans, pled guilty today to conspiracy to distribute and conspiracy to possess with intent to distribute heroin.
On July 25, 2014, KELLY and WILLIAMS were two of 12 defendants charged in a 23-count indictment. According to court documents, this investigation targeted a heroin trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in New Orleans. Agents seized approximately $1,200,000 in assets (a combination of vehicles, currency, jewelry and real property) from members of this drug trafficking organization that were acquired with proceeds made from the sale of heroin.
U.S. District Judge Carl J. Barbier scheduled sentencing on March 5, 2015. KELLY is facing up to 20 years imprisonment and WILLIAMS is facing 10 years to life imprisonment. Trial is scheduled for February 23, 2015, for the seven remaining defendants.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney J. Collin Sims is in charge of the prosecution.
Greenbush Resident Sentenced to over Eight Years for Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jessica
Bryden, 22, of Greenbush was sentenced yesterday in U.S. District Court by Chief Judge John
A. Woodcock, Jr. to 97 months in prison and three years of supervised release for conspiracy to possess with the intent to distribute and to distribute MDPV, a chemical compound commonly referred to as “bath salts” or “monkey dust.” Bryden pleaded guilty on April 15, 2014.According to court records, between April and December 2011, the members of the conspiracy illegally distributed large quantities of MDPV in Penobscot, Aroostook and Knox counties. The defendant packaged and distributed MDPV to other members of the conspiracy who were selling the drug in the Bangor area. She also collected payment for the drug from other members of the conspiracy. Bryden is one of eighteen defendants who pleaded guilty to conspiring with Ryan Ellis and others to distribute the drug. Ellis previously pleaded guilty and awaits sentencing.
In imposing sentence, Chief Judge Woodcock referenced “the staggering scope of
Bryden’s involvement in dealing bath salts,” said the government was appropriate to characterize the defendant and her one time boyfriend and co-defendant, Ryan Ellis, as the “Bonnie and
Clyde of bath salts,” and observed that “you and Mr. Ellis have had a permanent, profound and deleterious impact on this area.”
The case was investigated by the Maine Drug Enforcement Agency with assistance from the U.S. Drug Enforcement Administration, and the Brewer and Bangor Police Departments.Greek National Indicted on Multiple Fraud ChargesRead the Press Release
St. Louis, MO – DORA ARGYROPOULOS was indicted for executing a scheme to defraud American banks by opening accounts for sham businesses and incurring more than a million dollars in overdrafts on those accounts from abroad.
According to the indictment, Argyropoulos and her confederates registered numerous businesses and fictitious registrations with state authorities in order to be able to apply for checking accounts at no fewer than ten American banks. These businesses, however, never had any substantial operations. Instead, Argyropoulos and her confederates would return to Greece and utilize debit cards connected to the businesses’ accounts to cause massive overdrafts for travel and entertainment expenses. The transactions were timed in such a way as to take advantage of American banking procedures relating to the debiting and posting of such expenses. As a result, Argyropoulos and her confederates incurred overdrafts and overdraft fees on the accounts totaling at least $1,745,405.
Argyropoulos, of Athens, Greece, was arrested on November 9 in Miami, Florida, upon her entry into the country. Late yesterday, she was indicted by a federal grand jury in the Eastern District of Missouri on two felony counts of bank fraud, one felony count of wire fraud and one count of conspiracy to commit those crimes.
If convicted, each count of the indictment carries a maximum penalty of 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the U.S. Secret Service. Assistant United States Attorney Richard Finneran is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Georgia Man Charged with Marijuana Distribution After 50 Pounds of Marijuana Were Found in His Luggage at the Sacramento AirportRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Aljamario Willoughby, 21, of Athens, Georgia, charging him with possession of marijuana with intent to distribute, United States Attorney Benjamin B. Wagner announced.
According to court documents and agents at the scene, on October 29, 2014, Willoughby was arrested in the Sacramento airport on his way to Atlanta, Georgia when 50 pounds of marijuana was found in sealed bags in his luggage.
This case is the product of an investigation by the Sacramento County Sheriff’s Office and the Transportation Security Administration. Assistant United States Attorney Paul Hemesath is prosecuting the case.
Willoughby is currently detained at the Sacramento County Jail.
If convicted, Willoughby faces a maximum statutory penalty of five years in prison and a $250,000 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.
- Fugitive Sought in Stolen Identity Refund Fraud Scheme
Fresno Teacher’s Aide Indicted for Marijuana Cultivation Operation in Trinity CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Kevin Nouthai Yang, 47, of Fresno, charging him with conspiring to cultivate and distribute marijuana, cultivating marijuana, and possessing marijuana with intent to distribute, United States Attorney Benjamin B. Wagner announced.
According to court documents, Yang, a high school teacher’s aide for the Central Unified School District, is the owner of property that he purchased earlier this year in the Shasta Trinity National Forest in Hay Fork, California in Trinity County. At the beginning of November, U.S. Forest Service agents executed a search warrant at Yang’s property after seeing hundreds of large, mature marijuana plants growing there. The agents found Yang in the process of harvesting marijuana and seized 324 pounds of marijuana, 200 marijuana plants, and a firearm. Some of the marijuana grown on Yang’s property had already been distributed to Fresno.
This case is the product of an investigation by the U.S. Forest Service and Trinity County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Yang is currently detained but has been ordered released on a secured bond. He is scheduled to appear in federal court for arraignment on the indictment on November 21, 2014.
If convicted, Yang faces a mandatory minimum statutory penalty of five years in prison, a maximum statutory penalty of 40 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.
Former Solon Man Sentenced on Federal Charge of Possession of a Sawed Off ShotgunRead the Press Release
DAVENPORT, IA - On November 20, 2014, Spencer James Bertling, age 22, formerly from Solon, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 33 months imprisonment for possession of a sawed off shotgun, announced United States Attorney Nicholas A. Klinefeldt. Bertling was also ordered to serve two years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
On October 18, 2013, law enforcement officers performed a search of a Solon residence as part of a narcotics investigation. During the search, officers found and seized a 20 gauge shotgun modified to have an overall length of less than 26 inches and a barrel of less than 18 inches that was not lawfully registered to Bertling in the National Firearms Registration and Transfer Record. Bertling pled guilty to this offense on August 20, 2014.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Johnson County Drug Task Force, and the Iowa Department of Public Safety-Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Former Postal Service Employee Pleads Guilty to Conspiracy and Theft of the MailRead the Press Release
SACRAMENTO, Calif. — Saravy Yem, 30, of Stockton, pleaded guilty today to conspiracy and theft of the mail by a postal employee, United States Attorney Benjamin B. Wagner announced.
According to court documents, Yem was an employee of the Postal Service at a bulk mail processing facility in West Sacramento from 2010 to 2011. Over the course of approximately a year, Yem and another postal employee, co-defendant Angel Pantoja‑Lopez, stole approximately 384 smart phones being shipped by a cellular phone service provider to its customers around the country. The defendants would sell the stolen phones for cash in the greater Sacramento area.
This case was the product of an investigation by the United States Postal Service, Office of Inspector General. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Pantoja-Lopez was sentenced on May 22, 2014, to two years and four months in prison and two additional months of home detention, and to pay $6,514 in restitution to postal customers who lost money because of his crimes.
Yem is scheduled to be sentenced by Judge Troy L. Nunley on February 5, 2015. Yem faces a maximum statutory penalty of five 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.
Former New Jersey Resident Arrested for Defrauding Investment Bank of More Than $1.5 MillionRead the Press Release
NEWARK, N.J. – A former New Jersey resident was arrested today in North Carolina on charges that he allegedly orchestrated a scheme to defraud a United States subsidiary of an international investment bank of more than $1.5 million, U.S. Attorney Paul J. Fishman announced today.
Michael Lieberman, 43, formerly of New Jersey and currently a resident of Huntersville, North Carolina, is charged by complaint with two counts of wire fraud. He is scheduled to make his initial appearance later today in federal court in Charlotte, North Carolina, at which time it is expected that he will be ordered to appear in Newark federal court.
According to the complaint: Lieberman was employed by “Company A,” a United States-based subsidiary of an international investment bank, in its International Settlements Group located in Iselin, New Jersey. Company A engaged in and settled cross-border securities transactions and acted as a settlement agent for similar securities transactions entered into by its broker-dealer clients. Company A’s International Settlements Group was responsible for, among other things, wiring funds to settle various securities transactions.
From April 2012 through May 2014, Lieberman devised a scheme to defraud Company A out of more than $1.5 million by using his position in the International Settlements Group to initiate more than 40 separate fraudulent wire transfers of Company A’s money, directing the proceeds to bank accounts he either owned or controlled. Lieberman then spent Company A’s money for his own purposes, including purchasing a home in North Carolina, making tens of thousands of dollars in credit card payments and spending hundreds of thousands of dollars on hotels, airplane tickets, home furnishings, restaurant tabs and other expenditures.
Lieberman took various steps to conceal his fraudulent activities, including making fictitious entries in Company A’s bookkeeping system and supplying phony documents to others in order to cause them to make false entries in the company’s books and records reflecting fake profits on non-existent transactions.
The wire fraud counts with which Lieberman is charged each carry a maximum potential penalty of 30 years in prison and a fine of up to $1 million, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Paul Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark and Assistant U.S. Attorney Evan S. Weitz of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
This arrest is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
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Defense counsel: TBDLieberman, Michael Complaint
Former Inspector for the Massachusetts Department of Agriculture Pleads Guilty to Falsfying EPA ReportsRead the Press Release
BOSTON – A former inspector for the Massachusetts Department of Agriculture pleaded guilty in U.S. District Court in Springfield yesterday to making false statements on inspection reports he submitted to federal regulators.
Paul Ricco, 54, of Springfield, pleaded guilty to 15 counts of making false statements after being charged in September 2014. U.S. District Judge Mark G. Mastroianni scheduled sentencing for Feb. 11, 2015.
From March 2010 through May 2012, Ricco was in charge of the Producer Establishment Inspection program at the Massachusetts Department of Agriculture where he inspected establishments that produce, sell and/or distribute pesticides. During that time period, Ricco submitted 15 false reports of purported inspections that he never performed. Ricco submitted the false reports to EPA to conceal the fact that he was not performing environmental inspections which he was required to perform. Those inspections were necessary to insure that pesticide manufacturers across the state were producing and packaging pesticides safely.
The charging statute provides a statutory maximum sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and John K. Gauthier, Acting Special Agent in Charge of the U.S. Environmental Protection Agency, Criminal Investigation Division, Boston Field Office, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Carlos A. López of Ortiz’s Major Crimes Unit.
Former Davenport Man Sentenced for 2011 Home Invasion RobberyRead the Press Release
DAVENPORT, IA – On November 20, 2014, Arthur Allen, Jr., age 25, formerly of Davenport, Iowa, was sentenced by Chief United States District Judge James E. Gritzner for conspiracy to interfere with commerce by robbery in violation of Title 18, United States Code, section 1951, announced United States Attorney Nicholas A. Klinefeldt. Allen, Jr. was sentenced to 240 months in prison. He was also ordered to serve three years of supervised release following the imprisonment, pay $100 towards the Crime Victims Fund, and pay monetary restitution to the family of Demetrius Lewis, Jr., who was killed during the attempted robbery.
In October 2011, Warren, Hodges, and Arthur Allen, Jr. planned a robbery of money, marijuana, and other items of value from the person and residence of Alexander Hubbard, Sr. on West 17th Street in Davenport, Iowa. In preparation for the planned robbery, the conspirators sought and obtained two handguns, including a 9mm handgun, for use in the robbery. On October 17, 2011, as Warren, Hodges, and Allen had agreed to set-up the robbery, Hodges called Hubbard asking if he could visit Hubbard at his residence in order to buy marijuana from him. Hodges, Warren, and Allen then all traveled to the vicinity of Hubbard’s residence in a vehicle driven by Hodges, arriving at approximately 12:30 in the afternoon. Hodges was permitted access into Hubbard’s residence as Hubbard was expecting him. While inside, Hodges made a purchase of marijuana from Hubbard. Also inside Hubbard’s residence were three of Hubbard’s relatives who were all playing video games in the living room—20-year old Demetrius Lewis, Jr., who was Hubbard’s younger cousin, Hubbard’s then 11-year old son, and Hubbard’s 18 year-old cousin.
Upon exiting Hubbard’s residence, Hodges left the entry door to the residence open and alerted Warren and Allen—who were waiting just outside Hubbard’s residence—that Hubbard was in his residence and conducting marijuana sales. Allen and Warren then burst into Hubbard’s residence to complete the robbery. Both Allen and Warren were armed with loaded handguns. After the intruders entered the residence, multiple shots were fired. Demetrius Lewis, Jr. sustained a single 9mm gunshot wound to the abdomen. Hubbard, who upon hearing the invasion into his residence retrieved his .40 caliber handgun and fired at an intruder. Warren was struck in the abdomen with a shot fired by Hubbard. Warren and Allen ran out of the residence and fled on foot through the neighborhood. Upon locating Hodges, Allen and Warren jumped in Hodges’ vehicle. Hodges dropped Warren off near Genesis West Hospital in Davenport; he was treated there for a non-life threatening wound and released. At 12:44 p.m. a 911 call was received and emergency responders dispatched to the scene of the shooting. Demetrius Lewis, Jr. was transported to a local hospital where he died a short time later.
On October 23, 2014, Louis Warren, Jr., age 28, and John Louis Hodges, age 32, both formerly of Davenport, Iowa, were sentenced by Chief United States District Judge James E. Gritzner for attempted interference with commerce by robbery. Warren was sentenced to 168 months in prison. Hodges was sentenced to 192 months in prison. Both were also ordered to serve three years of supervised release following the imprisonment, pay $100 towards the Crime Victims Fund, and pay monetary restitution to the family of Demetrius Lewis, Jr. Hubbard pled guilty in 2012 to possession of a firearm in furtherance of drug trafficking. He was sentenced to 96 months’ imprisonment.
This case was investigated by the Davenport, Iowa, Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Former Corporate Executives Charged with Securities Fraud and Tax Offenses for Wide-Ranging Commercial Bribery SchemeRead the Press Release
Two Coral Gables residents were charged today by separate informations for their participation in a scheme to obtain more than $9 million dollars in kickbacks and other benefits, and to conceal this illicit income from the IRS, while employed as senior executives at Systemax, Inc. (“Systemax”) and its subsidiary, TigerDirect, Inc. (“TigerDirect”).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to the charging documents:
Systemax, has its principal place of business in Port Washington, New York and sells personal computers and other consumer electronics through its websites, retail stores and direct mail catalogs including TigerDirect, CompUSA, and Circuit City. In fiscal year 2010, Systemax had annual sales revenue of approximately $3.6 billion according to its public filings. Gilbert Fiorentino, 54, was a director of Systemax and was the Chief Executive Officer of its Technology Product Group, including its subsidiary TigerDirect. Carl Fiorentino, 57, was the former president of TigerDirect, and both Fiorentino brothers worked at TigerDirect’s Miami offices before they were terminated on April 18, 2011.
As senior executives of TigerDirect, Gilbert Fiorentino and Carl Fiorentino had responsibility for purchasing and sourcing hundreds of millions of dollars-worth of computer and electronics items for Systemax and its various operations. According to the informations, Gilbert Fiorentino and Carl Fiorentino conspired with each other and third parties to obtain unlawful kickbacks in exchange for steering business to companies that paid the kickbacks. In the case of one Asia-based supplier of computer parts and accessories, court documents allege the brothers received more than $9 million in cash and undocumented payments in return for steering more than $230 million in business to the supplier.
As further alleged, while serving as a senior executive of TigerDirect, Carl Fiorentino received millions of dollars in payments from a TigerDirect supplier, including more than $3 million to pay for his own waterfront residence in Gables Estates, and millions of dollars-worth of luxury furnishings, including furniture, art and a high-tech security system. The information charging Carl Fiorentino additionally alleges that, in 2007, he filed a false United States Individual Income Tax Return in which he understated his taxable income by more than $4 million dollars.
According to court papers, while serving as a director of Systemax and the CEO of TigerDirect, Gilbert Fiorentino received hundreds of thousands of dollars in cash payments, including deliveries of cash in the parking lot of the Miami offices of TigerDirect, from one supplier, gold coins valued at more than $150,000 from a vendor, and deliveries of furniture and other goods and services to his waterfront home in Gables Estates. The information charging Gilbert Fiorentino further alleges that he misappropriated company merchandise for his own benefit, including by paying a third party more than $100,000 in electronics to provide upkeep for Gilbert Fiorentino’s yacht.
As a public company, Systemax was required to comply with Section 404 of the Sarbanes-Oxley Act of 2002 that requires certain management personnel to sign annual conflict of interest questionnaires, certifications of compliance with Systemax’s corporate ethics policy, and representations about transactions out of the course of ordinary business. These questionnaires include a representation as to whether the employee had “receive[d] or ma[de] any arrangements for the receipt of any compensation or other personal financial benefit from a current or potential supplier, competitor or customer” of Systemax. As alleged in the informations, from 2005 through 2011 Gilbert and Carl Fiorentino regularly signed such conflict of interest questionnaires in which they falsely and fraudulently concealed from Systemax their receipt of cash, and other remuneration from vendors who did business with Systemax. Gilbert Fiorentino regularly met with Systemax’s independent auditors at the offices of TigerDirect in Miami, while the auditors were conducting quarterly reviews and annual audits of the company. In written management representation letters and in direct conversations, Gilbert Fiorentino made false and misleading statements to Systemax’s auditors regarding the accuracy of the company’s books, records and accounts as they pertained to his own compensation, the compensation of his brother, Carl Fiorentino, and both defendants’ receipt of kickbacks from third parties, among other things. These false and misleading statements and omissions were material to the ability of the auditors to perform accurate reviews and audits of the company’s books, records, and accounts, and to assess Systemax’s internal controls over financial reporting.
This case was originally investigated by the U.S. Attorney’s Office for the Eastern District of New York with the assistance of the FBI New York Field Office and the IRS-CI Miami Field Office. Carl Fiorentino was previously charged in the Eastern District of New York on June 18, 2013, with conspiracy to commit mail and wire fraud, multiple counts of mail and wire fraud, and money laundering. The case involving Carl Fiorentino was transferred to the Southern District of Florida by court order on January 6, 2014.
The information filed today against Carl Fiorentino charges him with one count of conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. § 1349 and one count of tax evasion, 26 U.S.C. § 7201, in connection with his efforts to conceal his illicit income from the IRS and evade paying taxes from such income. Carl Fiorentino faces a statutory maximum of 25 years in prison. The information filed today against Gilbert Fiorentino charges him with one count of conspiracy to commit securities fraud and to impair and impede the lawful functions of the IRS, in violation of 18 U.S.C. § 371. He faces a statutory maximum of five years in prison.
U.S. Attorney Ferrer stated “Gilbert and Carl Fiorentino put their financial gain and lavish lifestyle ahead of their responsibilities as corporate officers and directors. They accepted kickbacks, driving up the price of the consumer electronics and passing the price increase to customers. The Fiorentinos took advantage of their positions of trust. But they didn’t get away with it. Today’s charges demonstrate that we will hold liable heads of companies who abuse their positions and violate tax and securities laws that protect investors in financial markets.”
“As alleged, the brothers Fiorentino were supposed to choose their companies’ suppliers based on the best price they could get. Instead, they made their decisions based on the biggest kickbacks for themselves. In so doing, they abused the trust placed in them and cheated their employers, the shareholders, and the IRS,” stated U.S. Attorney Lynch. “We and our law enforcement partners will prosecute to the fullest extent of the law all those who seek to profit by such fraud.”
FBI Assistant Director-in-Charge Venizelos stated, “As alleged, this was a true shareholder shakedown. Two high-ranking executives steered contracts to specific vendors in pursuit of their own lucre. We expect executives to be good stewards of company and shareholder money. And we rightfully demand it. Today, the defendants find themselves on the wrong side of the law.”
IRS-CI Special Agent in Charge Jackson stated, "These high-ranking corporate officials held positions of trust not only in their companies but also in the eyes of the public. They chose to receive kickbacks and side payments that they intended to hide from Systemax and the IRS. Their criminal actions are unacceptable to both investors and to the tax paying public. IRS Criminal Investigation, along with its law enforcement partners, will vigorously pursue corporate officers who misuse their positions of trust and violate the tax laws.”
Mr. Ferrer and Ms. Lynch commended the investigative efforts of the FBI and IRS-CI. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy of the Southern District of Florida and Whitman G.S. Knapp of the Eastern District of New York.
An information is only an accusation and a defendant is presumed innocent until proven guilty.
Attachments: Second Superseding Information - Carl Fiorentino (PDF)
Information - Gilbert Fiorentino (PDF)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.
Former Corporate Executives Charged with Securities Fraud and Tax Offenses for Wide-Ranging Commercial Bribery SchemeRead the Press Release
Two Coral Gables residents were charged today by separate informations for their participation in a scheme to obtain more than $9 million dollars in kickbacks and other benefits, and to conceal this illicit income from the IRS, while employed as senior executives at Systemax, Inc. (“Systemax”) and its subsidiary, TigerDirect, Inc. (“TigerDirect”).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to the charging documents:
Systemax, has its principal place of business in Port Washington, New York and sells personal computers and other consumer electronics through its websites, retail stores and direct mail catalogs including TigerDirect, CompUSA, and Circuit City. In fiscal year 2010, Systemax had annual sales revenue of approximately $3.6 billion according to its public filings. Gilbert Fiorentino, 54, was a director of Systemax and was the Chief Executive Officer of its Technology Product Group, including its subsidiary TigerDirect. Carl Fiorentino, 57, was the former president of TigerDirect, and both Fiorentino brothers worked at TigerDirect’s Miami offices before they were terminated on April 18, 2011.
As senior executives of TigerDirect, Gilbert Fiorentino and Carl Fiorentino had responsibility for purchasing and sourcing hundreds of millions of dollars-worth of computer and electronics items for Systemax and its various operations. According to the informations, Gilbert Fiorentino and Carl Fiorentino conspired with each other and third parties to obtain unlawful kickbacks in exchange for steering business to companies that paid the kickbacks. In the case of one Asia-based supplier of computer parts and accessories, court documents allege the brothers received more than $9 million in cash and undocumented payments in return for steering more than $230 million in business to the supplier.
As further alleged, while serving as a senior executive of TigerDirect, Carl Fiorentino received millions of dollars in payments from a TigerDirect supplier, including more than $3 million to pay for his own waterfront residence in Gables Estates, and millions of dollars-worth of luxury furnishings, including furniture, art and a high-tech security system. The information charging Carl Fiorentino additionally alleges that, in 2007, he filed a false United States Individual Income Tax Return in which he understated his taxable income by more than $4 million dollars.
According to court papers, while serving as a director of Systemax and the CEO of TigerDirect, Gilbert Fiorentino received hundreds of thousands of dollars in cash payments, including deliveries of cash in the parking lot of the Miami offices of TigerDirect, from one supplier, gold coins valued at more than $150,000 from a vendor, and deliveries of furniture and other goods and services to his waterfront home in Gables Estates. The information charging Gilbert Fiorentino further alleges that he misappropriated company merchandise for his own benefit, including by paying a third party more than $100,000 in electronics to provide upkeep for Gilbert Fiorentino’s yacht.
As a public company, Systemax was required to comply with Section 404 of the Sarbanes-Oxley Act of 2002 that requires certain management personnel to sign annual conflict of interest questionnaires, certifications of compliance with Systemax’s corporate ethics policy, and representations about transactions out of the course of ordinary business. These questionnaires include a representation as to whether the employee had “receive[d] or ma[de] any arrangements for the receipt of any compensation or other personal financial benefit from a current or potential supplier, competitor or customer” of Systemax. As alleged in the informations, from 2005 through 2011 Gilbert and Carl Fiorentino regularly signed such conflict of interest questionnaires in which they falsely and fraudulently concealed from Systemax their receipt of cash, and other remuneration from vendors who did business with Systemax. Gilbert Fiorentino regularly met with Systemax’s independent auditors at the offices of TigerDirect in Miami, while the auditors were conducting quarterly reviews and annual audits of the company. In written management representation letters and in direct conversations, Gilbert Fiorentino made false and misleading statements to Systemax’s auditors regarding the accuracy of the company’s books, records and accounts as they pertained to his own compensation, the compensation of his brother, Carl Fiorentino, and both defendants’ receipt of kickbacks from third parties, among other things. These false and misleading statements and omissions were material to the ability of the auditors to perform accurate reviews and audits of the company’s books, records, and accounts, and to assess Systemax’s internal controls over financial reporting.
This case was originally investigated by the U.S. Attorney’s Office for the Eastern District of New York with the assistance of the FBI New York Field Office and the IRS-CI Miami Field Office. Carl Fiorentino was previously charged in the Eastern District of New York on June 18, 2013, with conspiracy to commit mail and wire fraud, multiple counts of mail and wire fraud, and money laundering. The case involving Carl Fiorentino was transferred to the Southern District of Florida by court order on January 6, 2014.
The information filed today against Carl Fiorentino charges him with one count of conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. § 1349 and one count of tax evasion, 26 U.S.C. § 7201, in connection with his efforts to conceal his illicit income from the IRS and evade paying taxes from such income. Carl Fiorentino faces a statutory maximum of 25 years in prison. The information filed today against Gilbert Fiorentino charges him with one count of conspiracy to commit securities fraud and to impair and impede the lawful functions of the IRS, in violation of 18 U.S.C. § 371. He faces a statutory maximum of five years in prison.
U.S. Attorney Ferrer stated “Gilbert and Carl Fiorentino put their financial gain and lavish lifestyle ahead of their responsibilities as corporate officers and directors. They accepted kickbacks, driving up the price of the consumer electronics and passing the price increase to customers. The Fiorentinos took advantage of their positions of trust. But they didn’t get away with it. Today’s charges demonstrate that we will hold liable heads of companies who abuse their positions and violate tax and securities laws that protect investors in financial markets.”
“As alleged, the brothers Fiorentino were supposed to choose their companies’ suppliers based on the best price they could get. Instead, they made their decisions based on the biggest kickbacks for themselves. In so doing, they abused the trust placed in them and cheated their employers, the shareholders, and the IRS,” stated U.S. Attorney Lynch. “We and our law enforcement partners will prosecute to the fullest extent of the law all those who seek to profit by such fraud.”
IRS-CI Special Agent in Charge Kelly R. Jackson stated, "These high-ranking corporate officials held positions of trust not only in their companies but also in the eyes of the public. They chose to receive kickbacks and side payments that they intended to hide from Systemax and the IRS. Their criminal actions are unacceptable to both investors and to the tax paying public. IRS Criminal Investigation, along with its law enforcement partners, will vigorously pursue corporate officers who misuse their positions of trust and violate the tax laws.”
Mr. Ferrer and Ms. Lynch commended the investigative efforts of the FBI and IRS-CI. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy of the Southern District of Florida and Whitman G.S. Knapp of the Eastern District of New York.
An information is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fiorentino, Gilbert Information
Fiorentino, Carl Second Superseding InformationFormer Baltimore Police Officer Sentenced to 21 Months in Prison for Operating a Prostitution BusinessRead the Press Release
Prostituted His Wife and Another Woman
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced former Baltimore Police officer Lamin Manneh, age 33, of Baltimore, today to 21 months in prison followed by two years of supervised release for traveling across state lines and using the telephone and internet to operate a prostitution business.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Anne Arundel County State’s Attorney Anne C. Leitess.
According to Manneh’s indictment and information presented at court hearings, from February to May 9, 2013, Manneh operated a prostitution business with over 300 customers. Manneh’s 19 year old wife and another 19 year old woman worked as prostitutes for Manneh. The government alleges that as part of his business, Manneh wrote, paid for and posted more than 50 prostitution ads for the two women on internet websites; rented an apartment and hotel rooms for clients; and drove the women to residences and hotel rooms specified by clients.
According to information presented at the plea hearing, Manneh provided the women with cell phones and taught them to use “voice over internet” phone services to communicate with prospective clients and with one another. Manneh waited outside the prostitution locations and sent the women electronic messages when they were with clients. Manneh carried his police-issued firearm and agreed to forcibly interrupt a sex interaction if the client was aggressive or non-compliant. He supplied both women with synthetic marijuana. Manneh collected all of his wife’s prostitution earnings and a percentage of the other woman’s prostitution earnings.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police and Anne Arundel County State’s Attorney’s Office for their work in the investigation and recognized the Baltimore Police Department for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who prosecuted the case.Final Hostage-taker Sentenced to 10 Years in Prison for Failed Marijuana RipRead the Press Release
TUCSON, Ariz.– On Nov. 17, 2014, Luis Humberto Contreras-Figueroa, 45, was sentenced by U.S. District Judge Jose A. Sototo 10 years in prison and placed on 5 years of federal supervision following his sentence. Contreras-Figueroa pleaded guilty on Aug. 29, 2014, to one count of conspiracy to commit hostage-taking.
On the evening of April 12, 2010, Contreras-Figueroa, along with 5 other individuals, conspired to kidnap and hold for ransom another individual over the disappearance of 600 pounds of marijuana. Federal agents intervened and freed the bound hostage, capturing five of the six hostage-takers on scene, along with weapons that included an AK-47 semi-automatic rifle. Each of the five pleaded guilty between 2011-2012 and were sentenced to prison terms ranging up to ten years.
A warrant remained outstanding for Contreras-Figueroa, who had left the scene just before federal agents arrived and then immediately fled to Mexico. Based on tips received in February, 2014, federal agents learned that Contreras-Figueroa was back in Arizona. Within two weeks he was in federal custody.
The investigation in this case was conducted by agents of the U.S. Immigration and Customs Enforcement (ICE), Organized Crime Drug Enforcement Task Force (OCDETF) Tucson, Az. The prosecution was handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-14-0614-TUC-JAS
RELEASE NUMBER: 2014-065_Contreras-FigueroaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.- Final Defendant Arrested in Conspiracy to Traffic Minors for Sex
Federal, State and Tribal Officials Hold Summit and Tribal Consultation to Discuss Offender Re-Entry and Develop Strategies to Reduce Recidivism and Promote Public SafetyRead the Press Release
Click here for picture number 1 from Summit
Click here for picture number 2 from Summit
DENVER – On Tuesday, U.S. Attorney John Walsh, joined by five members of the Ute Mountain Ute Tribal Council, as well as representatives from the Bureau of Indian Affairs, local social workers, health services, victim advocates, Federal Probation, the Federal Public Defender’s Office and a U.S. Magistrate Judge held an Offender Reentry Summit and Tribal Consultation in Towoac on the Ute Mountain Ute Reservation. The purpose of the Summit and Consultation was to seek Tribal input and guidance regarding potential re-entry and re-integration programs for offenders returning to the Tribal Community from prison. Specifically, the group worked to develop strategies to reduce recidivism and the crime associated with recidivism. Approximately 30 people attended the day-long event.
The U.S. Attorney’s Office organized the multi-agency Summit hosted by the Ute Mountain Ute Tribe to discuss improving collective efforts on offender re-entry. Offender re-entry is when a member of the community is released from prison back to their community after serving a sentence for criminal conduct. Statistics have shown that two-thirds of all individuals released from prison are arrested within three years of release. One-third of all probationers incur a subsequent criminal conviction. This occurs, in part, because of the lack of infrastructure to support the person re-entering society. The goals of the Summit included supporting community needs, protecting public safety, reducing re-offending conduct by supporting returning offenders.
The group outlined potential solutions, including local substance abuse counseling (both in-patient and out-patient), employment, and housing to support the offender as the person comes back to the community. The notification of victims and community members when an offender is released from prison was also identified as a top priority. There were discussions regarding existing resources and future needs to support an offender re-entry program for the Ute Mountain Ute Tribe. Establishing a collaborative path forward on federal offender re-entry
The Summit included a presentation on “Creating a Successful Offender Reentry Program” by Kimberly Cobb, Project Director of American Probation & Parole Association. That presentation defined re-entry as a seamless process that begins when a person first enters prison, and continues all the way through to reintegration back into the community. An important part of developing a successful strategy is identifying funding, and looking at best practices from other tribal re-entry programs.
“The Summit was a critical step in working towards our collective goal of promoting public safety on the Ute Mountain Ute Reservation,” U.S. Attorney John Walsh said. “Working closely with the Ute Mountain Ute Tribe we hope to strive to reduce recidivism and continue to make the reservation a safer place.”
This event was successful because of the many leaders who attended the Summit. Key participants included Ute Mountain Ute Chairman Manuel Heart, former Chairman Gary Hayes, Ute Mountain Ute Council Members Priscilla Blackhawk-Rentz (Tribal Council Secretary/Custodian), Juanita Plentyholes (Vice Chair), and DeAnne House, U.S. Magistrate Judge David West, head Federal Public Defender Virginia Grady, U.S. Probation Chief LaVetra Castles, Ute Mountain Ute General Counsel Peter Ortego, as well as representatives from the Bureau of Indian Affairs, the U.S. Attorney’s Office, and the U.S. Bureau of Prisons.
The coalition will continue to meet to refine the identified goals and work to implement them. The U.S. Attorney’s Office will continue to work in collaboration with the many partners participating in this process.
Englewood Man Sentenced to 60 Years in Federal Prison for Production of Child PornographyRead the Press Release
DENVER – Mervin Edy Wolf, age 62, of Englewood, Colorado, was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 720 months (60 years) in federal prison for production of child pornography, U.S. Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced. Based on his age, the defendant will likely die in prison. At the beginning of the pronouncement of sentence, Judge Moore said; “Mr. Wolf, you were born a free man, but I’m going to make sure you don’t die as one.”
The defendant, who appeared at the sentencing hearing in custody, was remanded following the hearing.
Wolf was arrested based on a Criminal Complaint filed on March 6, 2014. He was subsequently indicted by a federal grand jury in Denver on March 26, 2014. He pled guilty before Judge Moore on July 24, 2014. He was sentenced today, November 20, 2014.
Beginning on or about September of 2007, Wolf began producing pornographic photographs of a minor child who was a member of his extended family. Over the next seven years Wolf coerced the same minor child to perform and participate in an escalating pattern of sexual acts with him that Wolf would photograph and or video tape. During several of the molestations, Wolf’s other family members were in the room next door, but unaware of what was happening.
In January 2013, the minor child contacted Wolf via telephone and told him that she was afraid she may be pregnant due to his sexual activity with her. Wolf told the minor child he would pay for an abortion if she was in fact pregnant by Wolf. Wolf mailed two home pregnancy tests to the minor child; after she took the tests and learned she was not pregnant.
When the minor child learned that Wolf was planning to visit her in June 2014, she made the decision to disclose all of the sexual abuse by Wolf. The minor child explained she was afraid Wolf would start molesting her younger sibling. Once the minor child’s family learned of the abuse by Wolf, other family members came forward to also report abuse by Wolf. During the course of the California investigation, it was also learned that Wolf and his wife were foster parents in 2003. Two foster children who were both girls and under the age of seven, both disclosed sexual abuse by Wolf. The allegations were investigated by the Arapahoe County Department of Human Services and the Englewood Police Department. No charges were filed against Wolf. However, due to the allegations, the Wolfs’ foster care license was revoked.
On March 5, 2014, a federal search warrant was executed at the residence of Mervin Wolf in Englewood, Colorado. During the subsequent search of Wolf’s home, FBI agents seized a 8mm video camera, a digital camera, a camera tripod, and a laptop among other items. Forensic examination of the computers revealed that the Wolf had produced hundreds of images of child pornography of Minor #1 from the time that she was seven until she was fourteen. He also hid a camera in Minor #1’s bathroom and filmed her while she was nude.
“The defendant manipulated and preyed on children over the course of many years,” said U.S. Attorney John Walsh. “He poses a permanent risk to other children and the community that fully warrants Judge Moore’s severe sentence, which guarantees he will spend the rest of his life in prison.”
“The FBI will continue to aggressively seek out and investigate those who prey on children, especially those who produce and distribute child pornography,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “Crimes of this nature threaten our most precious resource, offend every sensibility, and cannot be tolerated.”
This case was investigated by the FBI with support from Minor #1’s local county Sheriff’s Office.
Wolf was prosecuted by Assistant U.S. Attorney Judith Smith, Chief, Special Prosecutions Section, Criminal Division of the Colorado U.S. Attorney’s Office.This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Eleven Northern California Real Estate Investors Indicted for Bid Rigging and Fraud at Public Foreclosure AuctionsRead the Press Release
A federal grand jury in San Francisco returned three multi-count indictments against eleven real estate investors for their role in bid rigging and fraud schemes at foreclosure auctions in Northern California, the Department of Justice announced.
The indictments, filed late yesterday in U.S. District Court for the Northern District of California in Oakland, California, charge Northern California real estate investors Michael Marr; Javier Sanchez; Gregory Casorso; Victor Marr; John Shiells; Miguel De Sanz; Alvin Florida Jr.; Robert A. Rasheed; John L. Berry III; Refugio Diaz; and Stephan A. Florida with participating in conspiracies to rig bids and schemes to defraud mortgage holders and others. The indictments allege that the defendants agreed not to compete at public auctions in return for payoffs and diverted money to themselves and others that should have gone to mortgage holders and other beneficiaries. All defendants were charged with bid rigging and fraud in Alameda County, California. Marr, Sanchez, Shiells, and De Sanz were also charged with bid rigging and fraud in Contra Costa County, California. Additionally, Shiells and De Sanz were charged with bid rigging and fraud in San Francisco County, California.
To date, 47 individuals have pleaded guilty to criminal charges as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public foreclosure auctions in Northern California. On Oct. 22, 2014, a federal grand jury in San Francisco returned an eight-count indictment against five additional real estate investors for their role in bid rigging and fraud schemes at foreclosure auctions in San Mateo and San Francisco Counties, California.
“Collusion at the foreclosure auctions created an unfair playing field where conspirators pocketed illegal payoffs at the expense of lenders and distressed homeowners,” said Brent Snyder, Deputy Assistant Attorney for the Antitrust Division’s criminal enforcement program. “The division will continue to investigate and prosecute local cartels that harm the competitive process.”
The indictments allege, among other things, that at various times between June 2007 and January 2011, the defendants conspired to rig bids to obtain numerous properties sold at foreclosure auctions in Alameda, Contra Costa, and San Francisco counties, negotiated payoffs for agreeing not to compete, held second, private auctions known as “rounds,” concealed those rounds and payoffs, and, in the process, defrauded mortgage holders and other beneficiaries.
“These charges demonstrate our continued commitment to investigate and prosecute individuals and organizations responsible for the corruption of the public foreclosure auction process,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The FBI is committed to work these important cases and remains unwavering in our dedication to bring the members of these illegal conspiracies to justice.”
Each violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. Each count of mail fraud carries a maximum sentence of 20 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the mail fraud schemes. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million.
These indictments are the latest charges filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, California. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300, or call the FBI tip line at 415-553-7400.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Eleven Alleged Universal Aryan Brotherhood Members and Associates Charged with Racketeering, Drug Conspiracy, Kidnapping, and Maiming A PersonRead the Press Release
TULSA, Okla. – Eleven alleged gang members and associates of the Universal Aryan Brotherhood (UAB) have been charged for their alleged roles in conspiring to participate in a racketeering enterprise, drug conspiracy, kidnapping, and maiming a person, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
The indictment, returned by a federal grand jury on November 5, 2014, was unsealed on November 10, 2014. The defendants charged in the indictment are Anthony Ramon Hall, 39; Ronnie Dean Haskins, 41; Aaron Clay King, 31; Matthew Brian Wagner, 32; Richard Allen Roberts, 30; Robert Allen Paul Bryan, 40; Rodney Lee Broomhall, 37; William Benton Williams, 41; Kristin Michelle Bright, 31; Carl Matthew Smith, 36; and Timothy Duane Buck, 23. All defendants are from Oklahoma.
According to court documents, the UAB is a “white only,” prison-based gang with members operating inside and outside of state prisons throughout Oklahoma. The UAB is a criminal organization whose members and associates engage in drug distribution, money laundering, and acts of violence involving kidnapping, assault, and arson throughout Oklahoma. The gang was established in 1993 within Oklahoma Department of Corrections penitentiaries and modeled itself after the principles and ideology of the Aryan Brotherhood, a California-based prison gang that formed during the 1960’s.
As alleged in the indictment, the defendants conspired in racketeering activities to advance the UAB enterprise. Racketeering activities included possessing and selling 500 grams or more of methamphetamine, and the use of threats, intimidation, violence, and destruction.
The indictment further alleges that on May 2, 2013, Haskins, King, Bryan, Broomhall, and Bright kidnapped and maimed a person for the purpose of maintaining and increasing their position within the UAB gang. Following a direct order, the defendants held down a UAB member and placed a heated knife on his neck to burn off the UAB patch-tattoo because it was believed that the member did not supply and distribute drugs to the UAB enterprise.
If convicted, the racketeering, drug conspiracy, and kidnapping charges each carry a statutory maximum penalty of life in prison and a fine of $250,000. The maiming charge carries a statutory maximum penalty of 30 years in prison and a fine of not more than $250,000.
The charges stem from an investigation by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); Tulsa Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigations Division; Tulsa County Sheriff’s Office; and the Oklahoma Department of Corrections. The case is being prosecuted by John Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma.An indictment is merely a charge and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. v. Hall, et al.
Eastern District of Oklahoma United States Attorney’s Office Collects $3,282,431 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
Muskogee, Oklahoma - Attorney General Eric Holder announced on Wednesday that the Justice Department collected approximately $24.7 billion in 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.
United States Attorney Mark Green announced today that the Eastern District of Oklahoma collected $3,282,431 in criminal and civil actions in Fiscal Year 2014. Of this amount, $417,196 was collected in criminal actions and $2,865,235 was collected in civil actions.
Additionally, the U.S. Attorney’s office in the Eastern District of Oklahoma, working with partner agencies and divisions, collected $852,749 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.
“Collection of monies due the United States of America in both criminal and civil matters is a responsibility of this U.S. Attorney’s Office as well as those across our nation. We here in the Eastern District of Oklahoma are committed to fulfilling that responsibility,” said U.S. Attorney Mark Green.
Elected Guvo District Chairwoman Sentenced to 18 Months ImprisonmentRead the Press Release
TUCSON, Ariz. – Today, Angela Julene Ortiz, 58, of Menagers Dam, Ariz., was sentenced by Chief U.S. District Judge Raner C. Collins to an 18-month term of imprisonment. Ortiz had plead guilty to a single count of conspiracy to transport illegal aliens for profit. She will self- surrender on Dec 19, 2014.
The evidence showed that from 2012 to 2013, Ortiz was the elected Gu Vo District chairwoman on the Tohono O’odham Indian Nation. During the same time period, Ortiz was the leader and organizer of a conspiracy to recruit drivers to transport illegal aliens and coordinate with others to receive the illegal aliens in Phoenix. Ortiz would then split the proceeds with the transporter receiving on average $2000.00 per alien transported.
The investigation in this case was jointly conducted by the Federal Bureau of Investigation Public Corruption Task Force, and the U.S. Border Patrol. The prosecution was handled by Lawrence Lee, Assistant U.S. Attorney, District of Arizona, Tucson.CASE NUMBER: CR-13-01940 TUC RCC
RELEASE NUMBER: 2014-066_OrtizFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.- Donna Man Pleads Guilty in Hidalgo County Hacking Case
District of Maine U.S. Attorney’s Office Collects over $1.5 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that the District of Maine collected $1,525,980 in criminal and civil actions in Fiscal Year 2014. Of this amount, $847,901.95 was collected in criminal actions and $678,078.23 was collected in civil actions.
Attorney General Eric Holder announced yesterday that the Justice Department collected
$24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. 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. 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 Maine, working with partner agencies and divisions, collected $484,379 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.
District Woman Sentenced to Eight Years in Prison for Stabbing Partner Repeatedly During Argument-Quick Police Work Prevented Victim from Bleeding to Death-Read the Press Release
WASHINGTON – Maya Moore, 25, of Washington, D.C., was sentenced today to eight years in prison on a charge of aggravated assault while armed stemming from an attack in which she repeatedly stabbed her girlfriend, U.S. Attorney Ronald C. Machen Jr. announced.
Moore pled guilty in September 2014 in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for the eight-year prison term. The Honorable Robert E. Morin accepted the plea and sentenced Moore accordingly. Upon completion of her prison term, Moore will be placed on five years of supervised release.
According to the government’s proffer of evidence, on Aug. 21, 2014, at approximately 11:30 p.m., Moore had been publicly arguing with her girlfriend in the 4400 block of C Street SE. In the midst of the argument Moore began to stab her girlfriend with a knife. Moore pursued her girlfriend when she tried to flee and continued to stab her until she fell to the ground. Moore did not stop stabbing her until police officers arrived on the scene. In total, Moore stabbed her girlfriend 14 times all over her body, including her chest, neck, abdomen, arm, and thigh, which required the application by police of a tourniquet to prevent her from bleeding out.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department detectives and officers who investigated the case, particularly the officers whose application of the tourniquet may have saved the victim’s life, and members of the Gay and Lesbian Liaison Unit who helped coordinate with the victim during the investigation. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Meshall Thomas and Elsa Resendiz; Victim/Witness Security Specialist Tonya Via, and Paralegal Specialist D’Yvonne Key. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Kenechukwu Okocha, who investigated and prosecuted the case.
14-262District Man Sentenced to Seven Years in Prison for Armed Robbery of University Student-Attack Took Place in Middle of Afternoon; Victim Was Headed to Class-Read the Press Release
WASHINGTON - Sterling Walton, 46, of Washington, D.C., was sentenced today to a seven-year prison term for an armed robbery of a university student that took place earlier this year in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Walton pled guilty in September 2014, in the Superior Court of the District of Columbia, to a charge of armed robbery. He was sentenced by the Honorable William M. Jackson. The judge sentenced Walton to six years in prison for the armed robbery and an additional year for committing the crime while having been released earlier on unrelated misdemeanor charges. Upon completion of the prison time, Walton will be placed on five years of supervised release.
According to the government’s evidence, at approximately 3:45 pm on Friday, Feb. 21, 2014, the 18-year-old victim, then a freshman at George Washington University, was walking to catch a shuttle to class when he was accosted at 22nd and F Streets NW. Walton demanded money, claimed he had a gun, and reached toward the waistband of his shorts as if he had a weapon. The victim gave Walton his wallet and Walton fled with the $25 contained in the wallet.
Believing Walton had a gun, the victim called 911. A look-out was broadcast by the Metropolitan Police Department (MPD) and immediately re-broadcast by the U.S. Secret Service, which was in the area. Minutes later, uniformed Secret Service officers stopped Walton.
In announcing the sentence, U.S. Attorney Machen commended the excellent work and collaboration of the MPD and the U.S. Secret Service in quickly apprehending Walton. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Allison Daniels and Assistant U.S. Attorneys Christopher Macchiaroli and Katherine Earnest, of the Felony Major Crimes Trial Section, who prosecuted the matter.
14-261Des Moines Man Sentenced to 18 Years in Prison on Federal Charge of Manufacturing Child PornographyRead the Press Release
DES MOINES, IA - On November 17, 2014, Joshua Parsons, of Des Moines, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 18 years in prison for manufacturing child pornography, announced U. S. Attorney Nicholas A. Klinefeldt. Parsons was also sentenced to a lifetime of supervised release.
Parsons volunteered his time as a mentor to children in the Des Moines area, took pornographic photographs of a young boy, and used the internet to download hundreds of images and videos of child pornography.
“This investigation involved a quick and effective response from the Marshalltown Police Department to capture a sexual predator and identify the victims of his offenses,” said Marshalltown Police Chief Michael W. Tupper. “The eighteen-year sentence in this case justly reflects the seriousness of the crime.”
The case was investigated by the Marshalltown, Iowa, Police Department and the Polk County Sheriff’s Office as part of the Iowa Internet Crimes Against Children Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Anyone who knows of a child being sexually abused is encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
(Download Press Release)
Defendants Convicted at Trial of Conspiring to Traffick CocaineRead the Press Release
SAN FRANCISCO – Fortunato Rodelo-Lara and Jesus Wilfredo Almendares-Vasquez were convicted of two counts of engaging in a conspiracy to distribute cocaine and one count of distribution of cocaine by a federal jury on Nov. 18, 2014, announced United States Attorney Melinda Haag and Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick.
The jury found that from 2009 to 2012, the defendants worked with others to obtain cocaine from Southern California and distributing it in the Bay Area and in Seattle, Wash. Evidence at trial showed that Fortunato Rodelo-Lara, 45, of San Mateo, provided cash used to obtain cocaine on Jan. 22, 2010, and that the cocaine was then redistributed by members of the conspiracy. Rodelo-Lara also helped wrap and conceal kilograms of cocaine on other occasions as a part of the conspiracy. Evidence at trial also showed that Almendares-Vasquez, 39, of South San Francisco, distributed cocaine out of his auto detailing business in South San Francisco in 2010. The guilty verdict followed a two-week jury trial before the Honorable Edward M. Chen, United States District Court Judge.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Rodelo-Lara and Almendares-Vasquez were charged along with other co-defendants with various drug trafficking offenses. Seven other defendants have previously pleaded guilty to conspiracy to distribute cocaine, cocaine base i.e. “crack” cocaine, and methamphetamine, as well as other offenses in the case. The investigation by the Drug Enforcement Administration also resulted in cases filed in the Central District of California and the Western District of Washington.
Rodelo-Lara and Almendares-Vasquez were indicted by a federal grand jury on Jan. 17, 2012. They were charged with multiple violations of drug trafficking offenses, in violation of Title 21, United States Code, Sections 846 and 841(a)(1).
Upon conviction, Rodelo-Lara was remanded to the custody of the United States Marshal. Almendares-Vasquez is currently released on electronic monitoring with a bond amount of $200,000.
The defendants’ sentencing hearings are scheduled for Feb. 18, 2015, before Judge Chen in San Francisco. The maximum statutory penalty for each count is life imprisonment, lifetime supervised release following a term of imprisonment, and a fine of $10 million dollars. The defendants are each subject to a minimum of 5 years imprisonment and a minimum of 4 years of supervised release. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Rodelo-Lara and Almendares-Vasquez indictment
Rodelo-Lara and Almendares-Vasquez superseding indictment
Dallas Man Sentenced to 192 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A 35-year-old Dallas resident, Jeffrey Wyatt Savell, II, was sentenced this afternoon by U.S. District Judge Barbara M. G. Lynn to 192 months in federal prison on a child pornography conviction, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Savell, who is in custody, pleaded guilty in March 2014 to one count of transporting and shipping child pornography.
According to documents filed in the case, the investigation began in April 2013 when a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), working online in an undercover capacity, noticed that a computer with particular IP address traced to a location in Dallas was sharing more than 200 files, some with names indicative of child pornography.
After further investigation, a federal search warrant was obtained and executed at Savell’s residence in June 2013. Savell admitted using file-sharing networks to share files. He knew some of the videos depicted toddlers, but he was mostly interested in teens, primarily young boys.
A forensic examination of Savell’s laptop computers revealed more than 750 images and 250 videos of child pornography. That analysis also revealed that 14 of the files depicted sadism and/or masochism, and 22 files depicted infants or toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Dallas County Man Sentenced to 144 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — A Lancaster, Texas, man who admitted transporting and shipping child pornography was sentenced this afternoon in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Quincy Lamar Poole, 25, was sentenced by U.S. District Judge Barbara M. G. Lynn to 144 months in federal prison to be followed by a 5-year term of supervised release. Poole has been in custody since his arrest in July 2013 on a related federal criminal complaint.
According to plea documents filed in the case, when special agents with the FBI executed a search warrant at Poole’s home in Lancaster on July 16, 2013, they seized a laptop computer, a thumb drive and Poole’s cell phone. Email transmissions were located that showed Poole had sent two emails with a video of child pornography attached to each. In addition, five videos and one image of child pornography were located on his cell phone.
Poole admitted trading images and videos of child pornography with others he met through two Internet websites, according to the complaint filed in the case. He admitted downloading thousands of images of child pornography, adding that for the past 10 years he had an obsession with child pornography.
At today’s sentencing hearing, it was stipulated that law enforcement located more than 4000 images and 21 videos of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated the case and Assistant U.S. Attorney Camille Sparks prosecuted.
- Couple Found Guilty for Sex Trafficking of Minors in Two States
Chico Florist Shop Owner Sentenced to 3 Years in Prison for Tax Dodge and Retaliating Against Federal OfficersRead the Press Release
SACRAMENTO, Calif. — United States District Judge Troy L. Nunley sentenced James O. Molen, 70, of Chico, today to three years in prison to be followed by three years of supervised release, for dodging taxes, defying court orders, and retaliating against federal officials involved in his case, United States Attorney Benjamin B. Wagner announced.
On May 27, 2014, after a four-day trial, a federal jury returned a guilty verdict. According to evidence presented at trial, Molen ran Touch of Class Florist in Chico, and beginning in 2000, he stopped withholding and paying federal employment and unemployment taxes. After years of collection efforts by the IRS, Molen filed false liens in 2004 against people who had been involved in his case: two federal judges, the United States Attorney, two civil Department of Justice attorneys, an IRS revenue officer, and a witness. The liens claimed collateral of more than $93 billion. After a 2007 court order prohibited him from filing more false liens against federal officers, in 2010, Molen filed false liens against two revenue officers assigned to collect his taxes, claiming more than $199,000 in collateral. Molen ignored several court orders, sent a bogus tax payment to the IRS that he called an “International Bill of Exchange,” and sought to frustrate collections by placing his residence and bank accounts in trusts.
At sentencing, Judge Nunley called the filing of retaliatory false liens against federal employees “absolutely absurd.” He referred to Molen’s many frivolous filings and statements about the authority of the federal courts concluding, “The defendant has said things that are simply stupid.” Judge Nunley further noted that in light of Molen’s deteriorating health, “Thirty-six months is not a drop in the bucket. That is a significant sentence.”
“Mr. Molen thought he could evade the federal tax laws that apply to every American by objecting to federal jurisdiction, ignoring his obligations, and attempting to harass and intimidate federal officials,” said U.S. Attorney Wagner. “The sentence imposed today reflects the fact that such tactics are both ineffective and criminal.”
This case was the product of an investigation by the Internal Revenue Service –Criminal Investigation and the United States Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorneys Matthew D. Segal and Sherry D. Hartel Haus prosecuted the case.
Charlotte Hall Man Exiled to 12 Years in Prison and Second Man Pleads Guilty for the Armed Robbery of a Jewelry Store and PharmacyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Furman Troy, age 44, of Charlotte Hall, Maryland, today to 12 years in prison followed by five years of supervised release for two counts of armed commercial robbery and for brandishing a firearm in relation to a crime of violence.Co-defendant Darrell Lee, age 46, also of Charlotte Hall, pleaded guilty to the same charges on November 19, 2014.
The sentence and guilty plea were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and St. Mary’s County Sheriff Tim Cameron.
According to their plea agreements, on June 18, 2014, Troy and Lee entered a jewelry store in Charlotte Hall, Maryland in order to commit a robbery. Lee brandished a firearm at the owner of the store and Troy subsequently bound the victim with duct tape. The robbers then demanded the key to the jewelry counter from an employee of the store and stole jewelry worth more than $8,800, cash, a laptop computer and other items. On June 22, 2014, Troy and Lee robbed a pharmacy in Mechanicsville, Maryland. During the robbery Lee again brandished a gun and Troy bound the employee with duct tape. Troy and Lee stole cash and prescription bottles containing oxycodone, methadone, hydrocodone and endocet, valued at $8,897.
Judge Grimm has scheduled sentencing for Darrell Lee on March 27, 2015, at 9:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI and St. Mary’s County Sheriff’s Office for their work in the investigation and recognized the St. Mary’s County State’s Attorney’s Office for its assistance in the case. Mr. Rosenstein thanked Assistant United States Attorney Leah J. Bressack, who prosecuted the case.
Calais Man Pleads Guilty to Making False StatementsRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Clyde
Eldridge, 65, of Calais, Maine, pled guilty yesterday in U.S. District Court to making a false statement to federal agents.According to court records, Eldridge owned C&E Feeds, a feed and pet store in
Calais. In 2010, the U.S. Environmental Protection Agency (EPA) and its Canadian counterpart, Environment Canada, were investigating the illegal use of the pesticide cypermethrin. On
September 23, 2010, when asked by two EPA special agents to identify anyone to whom he had sold cypermethrin and whether he had kept records of the sales, Eldridge said he sold different amounts of cypermethrin to different people and that he did not keep track of the sales. The investigation revealed, however, that Eldridge sold cypermethrin on 10-11 occasions to one regional production manager employed by Kelly Cove Salmon Ltd., a subsidiary of Cooke
Aquaculture, and that on each occasion Eldridge made a note of the quantity picked up by the manager. In April of 2013, Cooke Aquaculture pled guilty in New Brunswick Provincial Court and paid a $490,000 fine for illegally using pesticides that killed hundreds of lobsters in waters that were about a mile from Maine’s border.Eldridge faces up to 5 years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by EPA’s Criminal Investigation Division and
Environment Canada.Butte County Couple Indicted for Drug Trafficking as Part of Silk Road 2.0 TakedownRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against David Schell, 54, and Teri Schell, 59, both of Durham, charging them with conspiracy to manufacture, distribute and possess with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced. David Schell is further charged with nine counts of distribution of marijuana.
According to court documents, law enforcement agents discovered an Internet Protocol (IP) address that was accessing “Silk Road 2.0,” an illicit network of websites that facilitated the trafficking of contraband, particularly controlled substances, until its worldwide dismantlement on November 6, 2014. On the same day the website was taken down, agents executed a search warrant at the Schells’ residence and found more than 450 marijuana plants and quantities of processed marijuana and marijuana wax, which is a highly potent marijuana-based substance made from extracting THC from marijuana leaves. Agents also found more than $12,000 in cash and packaging and shipping materials. According to court documents, David Schell mailed more than 100 packages overseas between January and September of this year, using a variety of different return addresses.
This case is the product of an investigation by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Special Assistant United States Attorney Josh F. Sigal is prosecuting the case.
The defendants are currently out of custody. They are scheduled to be arraigned on November 26, 2014, in Sacramento.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $1 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.
Bucks County Bank Teller Charged in Fraud SchemeRead the Press Release
Tamyra Frazier, 30, of Willow Grove, PA, was charged today by indictment in a conspiracy to defraud the bank where she was employed through an identity theft scheme, announced United States Attorney Zane David Memeger. Frazier is charged with conspiracy, bank fraud and four counts of aggravated identity theft.
Between December 1, 2010 and December 28, 2010, Frazier, an employee of a Beneficial Bank branch, allegedly used her position to improperly access personal and bank account information of bank customers. According to the indictment, she provided that information to Co-Conspirator 1 who used it to create false photographic identifications in the victims’ names using the picture Timothy Garfield, charged separately. Garfield fraudulently acquired approximately $41,519.56 from Beneficial Bank using the phony identifications with checks and withdrawal slips in the names of the bank customers.
If convicted, Frazier faces a maximum possible statutory sentence of 43 years in prison, two years of which is mandatory, a fine of up to $1 million, full restitution, and a $600 special assessment.
The case was investigated by the U.S. Postal Inspection Service, the FBI, and the Secret Service. It is being prosecuted by Assistant United States Attorney K.T. Newton.
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, 215-861-8525Brisco Sentenced for Aggravated Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Master Dalas Brisco, aka Paula D. Ike, age 57, from Hinesville, Georgia, was sentenced on November 20, 2014, by the Honorable C. Ashley Royal, Chief United States District Judge, in Macon, Georgia to serve four years in prison following his earlier plea of guilty to aggravated identity theft.The investigation in this case revealed that Mr. Brisco diverted the victim’s mail from California to his Post Office boxes in Georgia and took over various bank accounts, appropriating funds from them by presenting to the bank a signed fraudulent court order. In addition, Mr. Brisco presented a fraudulent letter, purported to be from the victim’s physician, to the Social Security Administration and made himself the representative payee for the victim’s Social Security benefits. Mr. Brisco admitted that the total intended loss to the victim was $36,320.90. The entire stipulated facts of the case can be found in the attached Plea Agreement.
US Attorney Moore noted that the prosecution of identity theft cases remains a high priority for his office and praised the good work of the Postal Inspector’s Office and the Social Security Administration Office of the Inspector General. He reiterated that by working together, we better serve the interests of the American people.
The case was investigated by the U.S. Postal Inspector’s Office and the Social Security Administration Office of Inspector General. Assistant U.S. Attorney Graham A. Thorpe handled the prosecution for the United States.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office (478/621-2603).
Bellingham Man Arraigned on Child Exploitation ChargesRead the Press Release
BOSTON – A Bellingham man was arraigned today on federal charges relating to the production of child pornography.
John E. Kalinowski, 26, appeared before Chief Magistrate Judge Jennifer C. Boal on a three count federal indictment charging him with production, distribution, and possession of child pornography. Kalinowski had been arrested on similar charges on Sept. 8, 2014, following the execution of a search warrant at his Bellingham home. He has been held in federal custody since September 8.
As alleged in an affidavit filed in the case, during the execution of the search warrant in September, law enforcement agents located and seized numerous digital devices including computers, hard drives, and other media storage devices. A preliminary review of the digital media revealed numerous images of children engaged in sexually explicit conduct, including images which revealed that Kalinowski was involved in the production of that material. Law enforcement officers also recovered numerous articles of children’s undergarments from Kalinowski’s home.The charging statutes provide maximum sentences ranging from 10 to 30 years in prison. The production charge provides a 15 year mandatory minimum term and the distribution charge provides a five year mandatory minimum term. Kalinowski also faces a potential lifetime of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Whitman Police Chief Scott D. Benton, and Bellingham Police Chief Gerard L. Daigle, Jr., made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crime Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Belle Chase Man Pleads Guilty to Methylone DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LYLE RUGGLES, age 23, of Belle Chase, pled guilty today to conspiracy to possess with intent to distribute methylone.
On June 26, 2014, RUGGLES was one of three defendants charged in a one-count indictment. According to the factual basis, on May 13, 2013,law enforcement was alerted that RUGGLES, who was wanted for outstanding attachments, would be driving his Chevrolet Silverado on Interstate 10 from Kenner to New Orleans between 11:30 a.m. and noon. Detectives stopped RUGGLES at Interstate 610 and Canal Boulevard, and a search incident to arrest revealed a bag containing 31 capsules of methylone, along with other drugs.
U.S. District Judge Mary Ann Vial Lemmon scheduled sentencing for February 5, 2015. RUGGLES faces 20 years imprisonment along with 3 years supervised release.
U.S. Attorney Polite praised the work of Homeland Security Investigations, the New Orleans Police Department, and the Jefferson Parish Sherriff’s Office in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Bangor Resident Sentenced to 7½ Years in Prison for Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Adam
Hathorn, 36, of Bangor was sentenced today in U.S. District Court by Chief Judge John A.
Woodcock, Jr. to 90 months in prison and three years of supervised release for conspiracy to possess with the intent to distribute and to distribute MDPV, a chemical compound commonly referred to as “bath salts” or “monkey dust.” Hathorn pled guilty to the charge on April 2, 2014.According to court records, between April and December 2011, the members of the conspiracy illegally distributed large quantities of MDPV in Penobscot, Aroostook and Knox counties. The defendant packaged and distributed MDPV to others in the Bangor area. He collected payment for the drugs and used the money to purchase additional quantities from other members of the conspiracy. Hathorn is one of eighteen defendants who pleaded guilty to conspiring with Ryan Ellis to distribute the drug. Ellis previously pleaded guilty and awaits sentencing.
In imposing sentence, Chief Judge Woodcock noted that Hathorn was “involved in a very bad business” and “caused a lot of harm” to his own community.
The case was investigated by the Maine Drug Enforcement Agency with assistance from the U.S. Drug Enforcement Administration, and the Brewer and Bangor Police Departments.Ashland Man Sentenced to 15 Years in Prison for Child ExploitationRead the Press Release
Christopher D. Rarick, 35, of Ashland, was sentenced to more than 15 years in prison for exploiting children, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Rarick pleaded guilty earlier this year to two counts of child exploitation and one count of possession of child pornography. U.S. District Judge Benita Pearson sentenced him to 188 months in prison.
Rarick was stopped for a traffic violation by an Ashland police officer on Feb. 14, 2013. Rarick became agitated and noncompliant and was arrested. At one point during the encounter Rarick produced his cell phone and claimed to be recording the encounter with police. The cell phone was seized as evidence after the arrest, according to court documents.
Ashland police obtained a search warrant for the phone, seeking files related to the traffic stop. Upon searching the phone, police also found numerous pictures and videos of child pornography. Police obtained another search warrant and found images of juveniles engaged in various sex acts. Three of the videos were of what police described as an apparent rape by Rarick of a young girl who was passed out, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the FBI and the Ashland Police Department.
Albuquerque Woman Sentenced to Prison for Federal Wire Fraud and Identity Theft ConvictionRead the Press Release
ALBUQUERQUE – Lesa Howard, 52, of Albuquerque, N.M., was sentenced today for her conviction on federal wire fraud and aggravated identity theft charges. Howard will serve a prison sentence of 54 months to be followed by five years of supervised release. She also was ordered to pay $192,953.70 in restitution to Bank of America, the victim of her crimes.
Howard was arrested on Aug. 7, 2013, on a seven-count indictment charging her with two counts of wire fraud, one count of mail fraud, three counts of aggravated identity theft and one count of bank fraud. The indictment alleged that Howard committed these crimes in Bernalillo and Valencia Counties between July 2007 and July 2009.
According to the indictment, in July 2007, Howard unlawfully orchestrated the straw purchase of a house in Los Lunas, N.M., which she occupied for several years. When the mortgage holder began to foreclose on the straw purchaser in Aug. 2008, Howard unlawfully orchestrated the sale of the house to a second straw purchaser, who was living in the house with her, and unlawfully pocketed proceeds due to the original straw purchaser.
Howard pled guilty on May 13, 2014, to Counts 1 and 4 of the indictment charging her with wire fraud and aggravated identity theft, respectively. In her plea agreement, Howard admitted executing a scheme in Aug. 2008, to fraudulently induce a mortgage company to extend a $417,000 home loan for the purchase of a house in Los Lunas. She further admitted using the personal identifiers of another person, without authorization, to obtain the loan. Howard falsely represented that the homeowner had agreed to the sale of the house even though the homeowner had not agreed to the transaction. Although Howard represented that she would deliver the proceeds of the transaction to the homeowner, Howard arranged for $96,471 in proceeds to be wired into a bank account she controlled.
This case was investigated by Albuquerque office of Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Jeremy Pena.
Albuquerque Man Pleads Guilty to Illegal Possession of Firearm in Santa Ana PuebloRead the Press Release
ALBUQUERQUE – Tobias Gutierrez, 35, of Albuquerque, N.M., pled guilty this morning to being a felon in possession of a firearm and ammunition. Under the terms of his plea agreement, Gutierrez will be sentenced to a prison term within the range of 30 to 60 months followed by not more than three years of supervised release.
Gutierrez was arrested on May 21, 2014, on a criminal complaint charging him with unlawfully possessing a firearm and ammunition on April 1, 2014 on Santa Ana Pueblo in Sandoval County, N.M. At the time, Gutierrez was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses including burglary, battery and possession of a controlled substance.
During today’s proceedings, Gutierrez admitted entering the Santa Ana Star Casino while carrying a revolver and five cartridges of ammunition on April 1, 2014. Court filings reflect that while in the casino, Gutierrez took part in an altercation with a casino security officer who was attempting to disarm Gutierrez. Gutierrez then dropped the revolver and was seen on surveillance video getting into a truck in the casino parking lot. He was then pursued in the truck by Rio Rancho Police Department officers and subsequently crashed. The officers then found Gutierrez hiding in the area near the vehicle crash, and he was later identified by officers of the Santa Ana Tribal Police Department as the armed suspect from the casino’s surveillance video.Gutierrez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by Homeland Security Investigations, the Santa Ana Police Tribal Department, the Corrales Police Department and the Rio Rancho Police Department. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting this case.
"John" Who Purchased 14-Year-Old for Commercial Sex Sentenced to Two Years in Federal PrisonRead the Press Release
PORTLAND, Ore. — Senior U.S. District Court Judge Robert E. Jones yesterday sentenced Ben Allen Riggs, 64, of Oregon City, to serve 24 months in federal prison. Riggs is the first “john” to be prosecuted in the District of Oregon for violating federal sex trafficking laws.
In September 2012, co-defendant Laura Lambden drove a 14-year-old girl from Vancouver, Washington, to Riggs’ home in Oregon City, to perform commercial sex acts. Riggs paid the 14-year-old girl to perform oral sex. Throughout the case, Riggs has denied knowing that the girl was a minor, but the government alleged at the sentencing hearing that Riggs should have known from her appearance that she was a child. Riggs pleaded guilty to violating the Mann Act, which prohibits the interstate transportation of any person for the purpose of prostitution. When Riggs is released, he will be required to serve five years of supervised release, and will be required to register as a sex offender.
“Buyers beware: if you purchase sex with a minor, you will be held accountable,” stated U.S. Attorney S. Amanda Marshall. “We cannot eradicate child sex trafficking until we find a way to reduce demand, and we know that exposure to prosecution and possible imprisonment will cause buyers to think twice when a young woman shows up at their door.”
Riggs’ co-defendant, Laura Lambden, was sentenced last month to serve 48 months in federal prison.
This case stemmed from a coordinated investigation by members of the Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force, including the FBI and the Vancouver Police Department. The FBI’s Child Exploitation Task Force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims. The case was prosecuted by Assistant U.S. Attorney Stacie Beckerman.
19 November 2014
Xplor Energy Pleads Guilty to Felony Clean Water Act ViolationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that XPLOR Energy SPV-1, Inc. (“XPLOR”), an Oklahoma corporation residing in Southlake, Texas, pled guilty today to a one-count bill of information which charged the company with knowingly violating the Clean Water Act, Title 33, United States Code, Section 1319(c)(2)(A). These charges concern XPLOR’s oil and gas production activities in the Breton Sound Area of the Gulf of Mexico. As part of the guilty plea, the company agreed to pay a total monetary penalty of $3.1 million and serve a three-year term of probation. If accepted by the Court, the $3.1 million monetary penalty will be divided as follows: $2.5 million to the United States Treasury, and $600,000 to Louisiana Department of Environmental Quality Trust Fund.
According to the court documents, from on or about November 24, 1997 until November 18, 2011, XPLOR operated the MP 35 offshore facility (“MP 35 Platform”). XPLOR operated the MP 35 Platform for the purpose of extracting oil and natural gas.
As part of the oil and gas production, separation and processing, XPLOR was tasked with disposing of the pollutant known as “produced water” or “brine” which is produced with the extracted oil and natural gas. The MP 35 Platform was designed to dispose of this pollutant by forcing the produced water, under pump generated pressure, into disposal/injection wells located in Gulf of Mexico waters near the MP 35 Platform.
In or near November, 2011, XPLOR transferred ownership and operation to another corporation. The platform’s new owner quickly discovered the platform was continuously discharging produced water containing oil and other harmful substances into the waters of the United States. The new owner immediately contacted regulatory authorities to report the discharge.
The ensuing investigation revealed that XPLOR had knowingly discharged produced water containing oil into waters of the United States without any permit from faulty injection lines/pipes leading from the platform to the disposal wells used to store the produced water containing oil, and from produced water disposal wells which had insufficient capacity to hold the produced water. Despite knowing of this consistent discharge from the injection lines and the insufficient capacity of their disposal wells, XPLOR failed to adequately repair these faulty injection lines and disposal wells. XPLOR’s intentional failure to make these repairs resulted in the repeated discharge of produced water containing oil into the waters of the United States from in or near October, 2009, and continuing through to November 18, 2011. XPLOR’s actions resulted in a total monetary savings or gain to them in the amount of approximately $1,550,000.
“Our federal and state law enforcement partners are committed to protecting our state's environment,” stated U.S.Attorney Kenneth Polite. “Our citizens simply demand that businesses not illegally pollute the waterways that sit at the center of our culture and economy.”
“We have a responsibility to ensure that Louisiana’s waterways are protected from harmful and illegal industrial discharges,” stated Ivan Viking, Special Agent in Charge of EPA’s Criminal Enforcement Program in Louisiana. “This case will make a real difference in protecting public health and conserving the environment. The community service payment is especially impressive, bolstering the hard work that state, local and federal partners have invested to restore the Gulf of Mexico.”
“Knowingly conducting unpermitted discharges of produced water from oil and gas production platforms is a crime,” said Peggy Hatch, Secretary of the Louisiana Department of Environmental Quality. “DEQ is proud of the collaborative work of our federal and state investigators to halt these illegal practices and bring the perpetrators to justice, and will continue to enforce state and federal laws that protect our environment.”
U.S. District Judge Sarah S. Vance set formal sentencing for March 4, 2015.
U.S. Attorney Polite praised the work of the Criminal Investigation Division of the United States Environmental Protection Agency (“EPA-CID”) and the Criminal Investigation Division of the Louisiana Department of Environmental Quality (“DEQ-CID”). The case is being prosecuted by Assistant United States Attorney Matt Coman.
XS Platinum and Five Corporate Officials Indicted for Illegal Discharges from the Platinum Creek Mine and for False Statements to Federal OfficialsRead the Press Release
XS Platinum, Inc. and five of its officers and employess were indicted by a federal grand jury in Anchorage today for five felony violations, including conspiracy to violate the Clean Water Act and for submitting material false statements, announced Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division of the U.S. Department of Justice, and Karen L. Loeffler, U.S. Attorney for the District of Alaska.
The indictment charges XS Platinum, Inc. (XSP), a Delaware corporation, and five of its officers and employees, Dr. Bruce Butcher, age 59, and Mark Balfour, age 62 (both Australian citizens), James Slade, age 57 (a Canadian citizen), and Robert Pate, age 62 and James Staeheli, age 43 (both U.S. citizens residing in Washington state) with conspiracy to violate the Clean Water Act (CWA) during the defendants’ operation of the Platinum Creek Mine on the Salmon River in Western Alaska. In addition, the indictment charges XSP, Butcher, Balfour, Slade, and Pate with knowingly violating the terms of XSP’s CWA permit in 2010; and XSP, Butcher, Balfour, Slade, and Staeheli with knowingly violating the terms of XSP’s CWA permit in 2011. The indictment also charges XSP, Butcher, Balfour, Slade and Pate with submitting a false statement in violation of the CWA. Finally, the indictment charges XSP and Balfour with submitting a separate false statement.
According to the indictment, XSP held 159 placer mining claims and 36 hard-rock claims totaling more than 4,000 acres at the Platinum Creek Mine, which was situated along the Salmon River and its tributaries. The mine contains placer deposits of platinum metal, along with smaller amounts of gold and palladium. All but 21 of the claims were on land managed by the BLM, with the remaining (undeveloped) claims lying within the Togiak National Wildlife Refuge. The Salmon River is an anadromous fish stream that is important for the spawning of all five species of Pacific salmon (chinook, chum, coho, pink, and sockeye), and the rearing of coho and sockeye salmon. After flowing through BLM land, the Salmon River crosses the Togiak National Wildlife Refuge before entering the Pacific Ocean at Kuskokwim Bay.
The CWA prohibits discharges of industrial wastewaters from mining operations in violation of CWA permits which govern those discharges. According to the indictment, beginning in 2010 and continuing through 2011, XSP and the individual defendants knowingly discharged industrial wastewaters from XSP’s mechanical placer mining operation at the Platinum Creek Mine into the adjacent Salmon River in violation of the terms of XSP’s CWA General Permit. According to the indictment, XSP told federal regulators in its mining and CWA permit applications that the operation of the mine would recycle all of its wastewater and result in “zero discharge” of mine wastewater to the Salmon River. The indictment alleges that XSP and the individual defendants conspired to violate the CWA by concealing the 2010 and 2011 mine wastewater discharge violations from federal officials, and submitting material false statements to federal agencies. The indictment further alleges that the industrial wastewaters discharged from XSP’s operation of the Platinum Creek Mine included large amounts of sediment, turbidity, and toxic metals. It is further alleged that these discharges exceeded the CWA General Permit limits for those pollutants and that the defendants failed to report the violations as they were required. According to the indictment, XSP and its corporate officers submitted an annual report in 2011 to federal and state agencies which indicated that the mine had “zero discharge” during the 2010 mining season, when XSP’s own monitoring data showed that it had numerous discharges to the Salmon River.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation is being conducted by the U.S. Department of Interior Bureau of Land Management Office of Law Enforcement and Security and the U.S. Environmental Protection Agency Criminal Investigation Division. The case is being prosecuted by First Assistant U.S. Attorney Kevin Feldis of the U.S. Attorney’s Office for the District of Alaska, Trial Attorney Todd S. Mikolop of the U.S. Justice Department’s Environmental Crimes Section, and U.S. Environmental Protection Agency Regional Criminal Enforcement Counsel Dean Ingemanson.
Woodstock, Vermont’s Clover Gift Shop and Woodstock Gallery Take Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that Woodstock Gallery and Clover Gift Shop, both located in Woodstock, Vermont, have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of Woodstock Gallery and Clover Gift Shop.
An onsite survey of Woodstock Gallery and Clover Gift Shop performed by United States Department of Justice architects revealed ADA compliance issues related to the shops’ entrances. Woodstock Gallery and Clover Gift Shop will be remedying ADA compliance issues by February 15, 2015 by constructing a ramp and improving the shops’ rear entrance.
The owners of Woodstock Gallery and Clover Gift Shop recognized the obligation to address the issues identified in the onsite survey. In addition, the owner of the building housing these businesses took a leadership role ensuring that the necessary improvements will be made. All of these individuals are to be commended for their cooperation with the Office of the United States Attorney for the District of Vermont.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa and Karen Richards of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.
Western District of Virginia U.S. Attorney's Office Collects $4,261,639 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
ROANOKE, VIRGINIA – U.S. Attorney Timothy J. Heaphy announced today that the Western District of Virginia collected $4,261,639 in criminal and civil actions in Fiscal Year 2014. Of this amount, $3,289,598 was collected in criminal actions and $972,041 was collected in civil actions.
Additionally, the Western District of Virginia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,823,978 in cases pursued jointly with these offices, all of this money was collected in civil actions.
Additionally, the U.S. Attorney’s Office for the Western District of Virginia, working with partner agencies and divisions, collected $30,689,223 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.
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 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 budgets 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 lawyers and staff in the Western District of Virginia have established a long, successful track record of recovering funds for restitution and forfeiting assets obtained or used by criminals,” United States Attorney Timothy J. Heaphy said today. “We may be a small District, but our slingshot is lethal. We will continue to do all we can to deprive criminals of their ill-gotten gains and recover assets for crime victims.”
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.
Western District of Texas U.S. Attorney's Office Collected over $20 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
United States Attorney Robert Pitman announced today that the Western District of Texas (WDTX) collected $20,238,152 in criminal and civil actions in Fiscal Year 2014. Of this amount, $8,945,457.88 was collected in criminal actions and $11,292,694.70 was collected in civil actions.
Additionally, the Western District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $12,748,758.80 in civil actions pursued jointly with these offices.
“While convictions and prison terms get a lot of attention, these collections demonstrate that we vigorously pursue justice on behalf of victims and the citizens of the Western District of Texas. These collection figures, together with the asset forfeiture recoveries, show that we will make strong efforts to separate ill-gotten gains from those who violate criminal and civil laws, and hold them fully accountable,” stated United States Attorney Robert Pitman.
In San Antonio, the WDTX collected $450,000 restitution in December from Thomas Shriver. Shriver was sentenced to two years probation and ordered to pay restitution for his role in a Health Care fraud scheme.In July, the WDTX collected $311,000.00 towards defendant Sherri Lynn Brewer’s Court ordered restitution. On August 2, 2013, Brewer was sentenced to serve 15 years of probation and to pay $6,445,370 in restitution for contract procurement fraud against the United States Air Force.
In December, the WDTX collected $178,166.25 from Jimmie Fulton Gibson. Gibson was sentenced to 15 years incarceration followed by a lifetime of supervised release for receipt of child pornography. At sentencing, the Court ordered that Gibson pay a fine for his cost of incarceration at $2,000.00 per month from his military retirement.
In El Paso, the WDTX collected $223,413.80 restitution in January from Albert G. Torres who was convicted of wire fraud and deprivation of honest services and sentenced to 18 months in federal prison for defrauding the City of El Paso with respect to contracts for repairs and service to city garbage trucks.
In Midland, the WDTX collected $100,000 towards restitution in August from Jose Luis Suarez. In June, Suarez was sentenced to 21 months imprisonment and ordered to pay approximately $229,000 restitution for subscribing false tax returns.
In November 2013, the WDTX collected $84,000 from Tammie Stephens following her conviction for wire fraud. At sentencing, the Court ordered Stephens to pay $84,000 restitution for embezzling from her employer, Big Lake Service.
In April, the WDTX collected $43,872.14 towards restitution from Brantten Rhodes. Last November, Brantten was sentenced to two years in federal prison and ordered to pay $235,300 for stealing copper wire from oilfield drilling rigs.
In Austin, the WDTX collected $61,000 towards restitution in March from Christina Newsome. On April 15, 2013, Newsome was sentenced to five years probation and ordered to pay $240,132.32 in restitution for a Health Care fraud and money laundering scheme.
In August, the WDTX collected $17,924.61 towards restitution from Manuel Hernandez for defrauding FEMA. Last year, Hernandez was sentenced to five years probation and ordered to pay $30,000 restitution and a $3,000 fine for making a false claim to FEMA that his primary residence was destroyed as a result of the Labor Day 2011 wildfires in Bastrop County.
In Del Rio, the WDTX collected $61,000 restitution in July from John Andrew Cardenas who was convicted of aiding and abetting the preparation and presentation of a false and fraudulent federal tax return.
In Waco, the WDTX collected $20,157.32 towards restitution last month from Jamal and Magdalena Akhter. In August 2013, the Akhters were sentenced to 21 months and 18 months in federal prison, respectively, and ordered to pay $295,737.64 in restitution to the USDA following wire fraud convictions for fraudulently handling SNAP benefits.
In Pecos/Alpine, the WDTX collected $8,800 from Billy Wayne King this year. In August 2010, King was sentenced to 18 months imprisonment and ordered to pay a $10,000 fine for possession of marijuana with intent to distribute. The $8,800 was collected in April, June and October thereby paying off King’s debt in full.
Those cases were reflected in today’s announcement by Attorney General Eric Holder 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. 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 Texas, working with partner agencies and divisions, collected $10,925,262 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.