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Monday 6 October 2014
Brother and Sister, One Other Person, Convicted at Trial in $15 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A federal jury convicted a brother and sister and one other person today for conspiring to defraud financial institutions as part of a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
The jury returned the guilty verdicts after five hours of deliberation following a four-week trial before U.S. District Judge Jerome B. Simandle in Camden federal court. Nancy Wolf-Fels, 57, of Toms River, New Jersey; Dwayne Onque, 46, of Belleville, New Jersey; and Mashon Onque, 43, of East Orange, New Jersey, were each convicted of one count of conspiracy to commit wire fraud. Dwayne Onque was also convicted of one count of conspiracy to commit money laundering.
According to the documents filed in this case and the evidence at trial:
The defendants and their conspirators schemed to defraud financial institutions by locating oceanfront condominiums overbuilt by financially distressed developers and negotiating a buyout price with the sellers. They then caused the sales prices for the properties – located in Wildwood Crest and North Wildwood, New Jersey, other locations in New Jersey and in Naples, Florida – to be much higher than the buyout price to ensure large proceeds. Other defendants helped conceal the true sales prices of certain properties through inflated sales contracts and finder’s fee agreements.
From 2007 through mid-2008, Wolf-Fels served as a loan officer at the Forked River Branch of the mortgage company, Mortgage Now. She and her conspirators originated six loan applications for unqualified buyers that contained false and fraudulent information. Working with her conspirators – including one who manufactured fake bank statements, retirement account statements and pay stubs to support the false loan applications – Wolf-Fels assembled the loan applications and sent them to victim financial institutions, which lent the unqualified buyers mortgage funds.
From late 2006 through mid-2007, Dwayne Onque served as a “straw buyer” of five properties in Middletown, New Jersey, and Wildwood, New Jersey. For each of the five properties, he signed false and fraudulent loan applications and closing documents that resulted in the release of more than $2 million of mortgage funds.During 2006 and 2008, Mashon Onque served as a title agent at Tri-State Title Agency in Montclair, New Jersey. She acted as the closing agent for fraudulent mortgage loans orchestrated by her conspirators, including Timothy Ricks and her brother, Dwayne Onque. The conspirators put together buyers and sellers in real estate transactions, and then filed false and fraudulent loan applications containing inflated income figures for the borrowers. After the mortgage lenders approved the loans, Mashon Onque prepared and signed fraudulent settlement statements that falsely claimed that the borrowers had made down payments to close the loans.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Wolf-Fels and Dwayne Onque are scheduled to be sentenced on Jan. 29, 2015. Mashon Onque is scheduled to be sentenced on Jan. 30, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s convictions.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
14-361
Defense counsel:
Wolf-Fels: Paul Urbania Esq., Shrewsbury, N.J.
Dwayne Onque: Peter Levin Esq., Philadelphia
Mashon Onque: Anne Singer Esq., Haddonfield, N.J.Brooklyn Doctor Found Guilty in Manhattan Federal Court in Connection with Massive No-Fault Insurance Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that TATYANA GABINSKAYA was found guilty Friday, October 3, 2014, of various health care fraud and mail fraud offenses following a two-week jury trial before the U.S. District Judge J. Paul Oetken. The jury convicted GABINSKAYA of charges arising out of her involvement, from 2007 through February 29, 2012, in the largest single no-fault automobile insurance fraud scheme ever charged.
GABINSKAYA, 60, of Brooklyn, New York, is the 32nd defendant convicted in this case following arrests on February 29, 2012, as part of an indictment (the “Superseding Indictment”) that charged 36 defendants with conspiracy to commit mail fraud and health care fraud and charging some defendants with racketeering and money laundering.
According to the Superseding Indictment and evidence admitted at trial:
Under New York State Law, every vehicle registered in the State is required to have no-fault automobile insurance, which enables the driver and passengers of a registered and insured vehicle to obtain benefits of up to $50,000 per person for injuries sustained in an automobile accident, regardless of fault, (the “No-Fault Law”). The No-Fault Law requires prompt payment for medical treatment, thereby obviating the need for claimants to file personal injury lawsuits in order to be reimbursed. Under the No-Fault Law, patients can assign their right to reimbursement from an insurance company to others, including medical clinics that provide treatment for their injuries. New York State Law also requires that all medical clinics in the State be incorporated, owned, operated, and/or controlled by a licensed medical practitioner in order to be eligible for reimbursement under the No-Fault Law. Insurance companies will not honor claims for medical treatments from a medical clinic that is not actually owned, operated, and controlled by a licensed medical practitioner.
In order to mislead New York authorities and private insurers, the true owners of these medical clinics paid licensed doctors to use their licenses to incorporate the professional corporations, through which the true owners billed private insurers millions of dollars for medical treatments and tests, many of which were not medically necessary. GABINSKAYA was the stated owner of one such clinic that provided MRIs and other radiology tests, although the clinic was, in reality, owned by her co-defendants Mikhail Zemlyansky and Michael Danilovich. In addition, GABINSKAYA was the stated owner of six other medical professional corporations, including five incorporated in the span of approximately one year. When interviewed under oath about her role at the clinic controlled by Zemlyansky and Danilovich, GABINSKAYA repeatedly lied under oath to deceive the insurers and induce them into paying claims that were not eligible for reimbursement.
GABINSKAYA was convicted of one count of conspiracy to commit health care fraud and one substantive count of health care fraud, each of which carries a maximum sentence of 10 years in prison. She was also convicted of one count of conspiracy to commit mail fraud and one substantive count of mail fraud, each of which carries a maximum sentence of 20 years in prison. GABINSKAYA is scheduled to be sentenced on January 28, 2015, at 12:30 p.m., before Judge Oetken. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
A mistrial was declared at the conclusion of GABINSKAYA’s first trial in the fall of 2013 when the jury failed to reach a unanimous verdict as to GABINSKAYA. Two of her co-defendants, Billy Geris and Joseph Vitoulis, were acquitted at trial. With respect to co-defendants Mikhail Zemlyansky and Michael Danilovich, the jury acquitted on some counts and hung on other counts. Zemlyansky and Danilovich are scheduled to be retried in January 2015. Co-defendant Matthew Conroy is scheduled to stand trial beginning December 2, 2014. A trial has not yet been scheduled for co-defendant John Maurello. Thirty-one other defendants, including three other doctors, have pled guilty to, among other things, conspiracy to commit health care fraud. Charges were dismissed against three other defendants, one defendant entered into a deferred prosecution agreement, and one defendant died during the pendency of the case.
U.S. Attorney Bharara thanked the Federal Bureau of Investigation and the New York City Police Department for their continued outstanding work in this investigation. He also thanked the National Insurance Crime Bureau for its assistance.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Amanda Kramer, Janis Echenberg, Daniel S. Goldman, Edward Y. Kim, Peter M. Skinner, and Daniel S. Noble are in charge of the prosecution. Assistant U.S. Attorney Carolina Fornos is in charge of the forfeiture aspects of the case.
U.S. v. Mikhail et al. Zemlyansky, Indictment
Banker Pleads Guilty to Felony False Statement ChargeRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that in federal court today before United States Magistrate Judge Kimberly A. Swank, MATTHEW MARKS WESTBROOKS, 33, of Lexington, South Carolina, pleaded guilty to a Criminal Information charging him with Making Material False Statements, in violation of Title 18, United States Code, Section 1001.
The Criminal Information to which WESTBROOKS pled guilty charged that during times material to the case, WESTBROOKS was employed as a mortgage originator in the Eastern District of North Carolina. WESTBROOKS was separately, but simultaneously, engaged with others in the business of buying and selling properties for profit. In his work as a mortgage originator, WESTBROOKS received a commission whenever he successfully assisted a borrower to obtain a mortgage loan. WESTBROOKS did not receive a commission if the mortgage loan was not approved by the lender, and if the associated real estate transaction did not close.
The Criminal Information further charged that as a mortgage originator, WESTBROOKS was responsible for, among other things, typing borrower loan qualifications and other information into software used by his employer to electronically transmit loan application information from North Carolina to banks and lenders located in various other states. The Loan Application Software was also used to generate a physical or electronic copy of a Uniform Residential Loan Application, or Form 1003, containing borrower loan application information. Form 1003 required the borrower to identify, among other things, the source of any down-payment funds. Form 1003 contained a warning that “misrepresentation(s) of the information contained in this application may result in . . . criminal penalties, including, but not limited to, fines or imprisonment. . .”
The Criminal Information further alleged that as a mortgage originator, WESTBROOKS was required by his employer on each transaction to communicate with the borrower regarding the borrower’s obligations at closing, including the requirement to bring to the closing cash due from the borrower under the terms of the loan. Specifically, WESTBROOKS was required to obtain a copy of the HUD-1 Settlement Statement (“HUD-1”) from the closing attorney. The HUD-1 showed, among other things, the remaining balance of the “Borrower’s Obligation,” or cash due from the borrower at closing. WESTBROOKS was obligated to review the HUD-1s and confer with the borrower regarding the Borrower’s Obligation, as set forth in the HUD-1.
The banks and lenders did not permit the seller, the mortgage originator, or a third party to the transaction to “front” or pay the Borrower’s Obligation on behalf of the borrower. The borrower was obligated to bring to closing the amounts identified on the HUD-1 in satisfaction of the Borrower’s Obligation. Moreover, the HUD-1 contained a warning that providing false statements on the HUD-1 could result in a prosecution under Title 18, United States Code, Section 1001.
The Criminal Information specifically alleged that on or about February 14, 2007, WESTBROOKS falsified a loan application and HUD-1 Settlement statement which reflected that the borrower supplied down payment funds when, in fact, the defendant had supplied the funds on behalf of the borrower.
At the sentencing in this case, which is presently scheduled for the January 2015 term of court, WESTBROOKS faces up to five years of imprisonment, up to a $250,000 fine, up to three years of supervised release, and an order of restitution.
The case against WESTBROOKS relates to the pending cases against developer JUSTIN LEE ROOKS, 31, of Loris, South Carolina; developer MICHAEL THOMAS BARTLETT, 46, of Myrtle Beach, South Carolina; closing attorney ROBERT HAROLD MELVILLE, JR., 50, of Lake Waccamaw; and ANTHONY MICHAEL TEW, 31 of Conway, South Carolina. On December 11, 2012, ROOKS and BARTLETT pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349. MELVILLE pled guilty to Conspiracy to Commit Bank and Wire Fraud, in violation of Title 18, United States Code, Section 1349. The charges against MELVILLE, ROOKS, and BARTLETT carry maximum penalties of 30 years in prison and up to $1 million in fines. On February 12, 2013, TEW pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum term of imprisonment of 5 years and up to $250,000 in fines.
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Attorney General Holder Calls Cuts to Early Voting a 'Step Backward' as Restrictions Take Effect in Ohio, ElsewhereRead the Press Release
On the heels of the Supreme Court’s decision late last month to allow Ohio’s new voting law to go into effect, Attorney General Eric Holder criticized the law’s restrictions on early voting, which he said were “heavily used” by African-American voters.
“It is a major step backward to allow these reductions to early voting to go into effect,” the Attorney General said in a video message posted on the Justice Department’s website. “Early voting is about much more than making it more convenient for people to exercise their civic responsibilities. It’s about preserving access and openness for every eligible voter, not just those who can afford to miss work or who can afford to pay for childcare.”
The Ohio law has been the subject of a lawsuit by civil rights groups and the Justice Department filed a brief in the case in July. A federal judge ruled that the law violated the Voting Rights Act and blocked it from taking effect. A federal appeals court judge upheld that ruling, but the Supreme Court disagreed and ruled the law should go into effect immediately. Absent the Court’s ruling, early voting would have begun in Ohio last Tuesday.
In North Carolina, the Justice Department has directly challenged a state law that cuts back on early voting and eliminates same-day registration. While no ruling on the merits has been issued yet in that case, the 4th Circuit Court of Appeals ruled last week to allow much of the law—including the reductions to early voting—to go into effect in the meantime.
The complete text of the Attorney General’s video message appears below.
“One of the Justice Department’s most solemn responsibilities is ensuring access to the ballot box for every eligible citizen. And over the last six years, my colleagues and I have taken robust action to protect the voting rights of all Americans – including communities that have been too long overlooked and too often underserved.
“Before the Shelby County case was wrongly decided, we successfully challenged efforts in Texas and Florida that would have disproportionately disenfranchised citizens of color in those states, and South Carolina had to make changes to its voting restrictions. It should not be lost on us that almost as soon as the Supreme Court decision in Shelby County was handed down, the state of Texas implemented a photo ID law that the courts had previously blocked, and that North Carolina implemented sweeping restrictions on voting rights. The Department of Justice has now been forced to challenge those discriminatory laws in court.
“Our work has taken us to other parts of our nation as well. We have worked to protect the voting rights of servicemembers, and to ensure accessible polling places throughout Indian Country and Alaska Native communities. And we have fought back against discriminatory redistricting proposals that may make it more difficult for many Americans to make their voices heard.
“Despite these efforts, in some places, we’ve continued to see troubling new measures that unnecessarily restrict the ability of particular Americans to participate in the democratic process. Ohio, for example, has imposed new restrictions that significantly reduce opportunities for early voting – opportunities that had in the past been heavily used by African-American voters.
“The early voting times targeted for cancellation – including weeknight and Sunday hours – previously provided critical opportunities for many people to get to the polls. In 2012, tens of thousands of Ohio voters cast their ballots during the voting days that Ohio has now eliminated. And studies suggest that these restrictions will disproportionately affect people with childcare responsibilities, hourly salaries, and reduced access to transportation – people who may have difficulty getting to the polls at any other time, and who are much more likely to be low-income or minority individuals.
“It is a major step backward to allow these reductions to early voting to go into effect. The public should be demanding the state officials who seek to impose these restrictions to justify—clearly, factually, and empirically—why they are necessary. Early voting is about much more than making it more convenient for people to exercise their civic responsibilities. It’s about preserving access and openness for every eligible voter, not just those who can afford to miss work or who can afford to pay for childcare. That’s why a number of states have expanded early voting in recent years. Throughout our nation’s history, we’ve repeatedly seen that there is simply no good reason – no good reason – to reduce voting access. Indeed, the arc of our nation’s history has, until recently, been to expand access to the ballot. Restricting voting hours in ways that would disproportionately impact minority communities is not only unnecessary and unwarranted – it is out of step with our history of continually expanding the franchise. It is contrary to our fundamental values of equality, opportunity, and inclusion. And it is an affront to millions who have marched, and fought, and too often died to make real America’s most basic promise. Three brave young men gave their lives in 1964, as did a courageous Detroit mother of five in 1965, so that others might be able to vote and be truly free. Are we now to turn our back on those ultimate sacrifices?
“We at the Department of Justice will never rest in our efforts to ensure the right to vote. Nor will I. And today, I’m calling on election officials and other public servants at every level across the country – men and women who are charged with upholding America’s highest ideals – to consider their responsibilities not to political constituencies, but to the country we all serve. To think about the deep unfairness of curtailing voting opportunities. And to reflect on their place in the history of this country to which they are potentially consigning themselves.
“In a great nation governed both by and for the people, our advances have always been of our own making. And going forward, it will be up to all of us to ensure that engagement in that democratic process remains the responsibility and the birthright of every American.”
The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Antioch Resident Pleads Guilty to Aggravated Identity Theft in Tax Fraud SchemeRead the Press Release
OAKLAND – Starkisha Benson pleaded guilty on October 3, 2014, to conspiring to file false claims and aggravated identity theft, United States Attorney Melinda Haag and IRS-CI Internal Revenue Service – Criminal Investigation Division Special Agent in Charge José M. Martinez, announced.
According to her plea agreement, Benson filed false tax returns from her residence and from various locations along with her co-conspirators and without the permission of the person listed on the tax return. Benson admitted to creating fake W-2 forms that were used to inflate income and corresponding credits in order to receive fraudulent income tax refunds. Benson also admitted to stealing another person’s identity and using that information to file a false 2009 and 2010 tax returns. Benson further admitted to misusing the identity of that same person’s minor child. Benson acknowledged embezzling these tax refunds from the Internal Revenue Service and keeping the money for her own use on debit cards that she possessed.
Benson, 35, of Antioch, was charged with Khyber Law and Jessika Green in a twenty-four count superseding indictment on Dec. 17, 2013. The defendants were charged with wire fraud, conspiracy to file false claims, filing false claims, effecting fraudulent transactions with an access device, theft of public money, and aggravated identity theft. Law and Green each pleaded guilty to conspiracy to file false claims.
Law, 26, and Green, 33, of Antioch, are scheduled to be sentenced before the Honorable Jon S. Tigar, United States District Court Judge, on Dec. 5, 2014, in Oakland.
Benson is scheduled to be sentenced on Jan. 9, 2015. Based on her plea of guilty, Benson faces a mandatory minimum 2-year sentence related to the aggravated identity theft conviction.
The maximum statutory penalty for each count of conspiracy to file false claim, in violation of 18 U.S.C. § 286, is ten years in prison and a fine of $250,000. The maximum penalty for aggravated identity theft, in violation of Title 18, U.S.C. § 1028A, is a mandatory consecutive sentence of two years in prison, and a fine of $250,000 plus restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas Newman is prosecuting the case. The prosecution is the result of an investigation by the Berkeley Police Department and the IRS, Criminal Investigation Division.
(Benson indictment )
Airline Pilot Convicted of Sex Offense on the RunRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A commercial airline pilot from Pittsburgh who was recently convicted of a Federal sex crime is now a fugitive from justice, according to United States Attorney William J. Ihlenfeld, II.
MUSTAFA BAZBAZ, who pled guilty in August to the felony offense of “Travel with Intent to Engage in Illicit Sexual Conduct”, was out on bond and under electronic monitoring in Western Pennsylvania until last week. On Friday evening he was permitted to leave his home to attend a worship service but never returned and thus a warrant was issued for his arrest. Bazbaz, who is 28 years of age, has been on the run since Friday evening at approximately 6 p.m. He was last seen driving a silver Buick Century automobile with California License Plate Number 6YUTO65.
“The hunt for Mr. Bazbaz is unique in that he’s a trained pilot, he comes from a wealthy family with substantial means, he’s a convicted child predator, and he faces a lengthy prison sentence once he’s captured,” said U.S. Attorney Ihlenfeld. “We need the public’s help to track him down before he harms anyone else.”
At the August plea hearing Bazbaz admitted to communicating with a 15-year old female from Jefferson County, Ohio, in December of 2013 via the website known as MeetMe.com. He misrepresented his age and name to the victim, claiming to be 17 years old and to be named “Mike B.” Bazbaz sent sexually explicit images of himself to the victim before arranging to pick her up in her home in Jefferson County in December of 2013. He then took the victim to a hotel room in Hancock County where they engaged in sexual intercourse. At the time of the incident Bazbaz was employed as a pilot with Republic Airways in Pittsburgh.
Anyone with information regarding the whereabouts of Bazbaz should contact Chad Simpson at the United States Marshals Service at 304-218-9286.
Sunday 5 October 2014
Portsmouth Man Sentenced to 170 Months in Prison for Heroin DistributionRead the Press Release
NORFOLK, Va. –Shawn Butler, a/k/a “Dickie,” 39 , of Portsmouth, Virginia, was sentenced today to 170 months in prison, followed by 8 years of supervised release for heroin distribution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s Washington Division Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
According to court documents, Butler is the leader of a heroin trafficking organization out of Portsmouth, Virginia. Butler, who has been dealing narcotics since 2005, began selling heroin in 2008. In 2008, he began referring customers to other dealers whom he was supplying. Butler and his co-conspirators distributed use amounts of cocaine and heroin to multiple individuals in the Tidewater area between 2008 and 2013. Butler had a courier who transported heroin from New Jersey to the Tidewater area. He also used multiple street level dealers to push his product out into location communities.Butler was indicted by a federal grand jury on January 9, 2014 and pleaded guilty to conspiracy to distribute 100 grams or more of heroin on May 12, 2014.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-11.
This case was investigated by the Drug Enforcement Administration. Special Assistant U.S. Attorney Amy Cross prosecuted the case on behalf of the United States.Tweet
Friday 3 October 2014
Woman Pleads Guilty and Sentenced to 28 Years in Prison for Armed Robbery of Belleville Jack-In-The-BoxRead the Press Release
Case Is One of Many Prosecuted As Part of United States Attorney Wigginton’s Armed Robbery Initiative
Follow @SDILNewsYulonda Stewart, 29, plead guilty and was sentenced to 28 years in prison today on a three-count indictment charging her with Interference with Commerce by Robbery, Use of a Firearm During a Crime of Violence, and Felon in Possession of a Firearm, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The Armed Robbery count arises from the federal Hobbs Act, which makes it a crime to obstruct, delay or affect interstate commerce by robbery, and is used by United States Attorney Wigginton as a way to combat armed robbery in the Southern District of Illinois. Following her prison sentence, Stewart will be on federal supervised release for 5 years. Stewart has been in custody since her arrest on December 9, 2012.
“I will continue to fight these armed robberies with all of my resources.” United States Attorney Wigginton noted. “People in Southern Illinois should be able to patronize restaurants and convenience stores without fear of these robbers. As Ms. Stewart found, she will serve almost as much time in federal prison as she has been on this earth. The message is clear – Stop this Violence, or face the consequences of spending decades in federal prisons far from your homes, families, and friends.”
A factual stipulation filed with the Court revealed that on December 9, 2012 at approximately 8:20 p.m., Stewart entered the Jack-in-the-Box restaurant located in Belleville, Illinois armed with fully loaded black Hi-Point 9 mm pistol. Stewart pointed the firearm at the four employees present and forced them to the back of the restaurant where the safe was located. Stewart ordered the store manager to open the safe and place all of the money in a paper bag while she ordered the other employees to lie on the floor. As the manager removed the money from the safe, Belleville Police officers arrived and ordered Stewart to drop the firearm. Stewart was then taken into custody at gunpoint. The sentencing judge characterized Stewart as “the most violent woman he has sentenced since he has been a judge.”
This investigation was conducted by the Belleville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Ali Summers.
Woman Indicted for Possession of Nearly Sixty-four Pounds of Liquid MethamphetamineRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against VANESSA J. HERNANDEZ, age 34, of Houston, Texas. The indictment charges the defendant with one count of possession with intent to distribute methamphetamine, a schedule II controlled substance, in violation of Title 21, United States Code, Section 841(a)(1). The indictment also includes a forfeiture allegation which requires the defendant to forfeit the proceeds of her crime if convicted.
As alleged in a previous unsealed criminal complaint against the defendant, on September 29, 2014, the defendant was traveling through Baton Rouge on a commercial passenger bus when members of the Drug Enforcement Administration, High Intensity Drug Trafficking Area (HIDTA) Task Force interdicted the bus. The criminal complaint further alleges that the defendant was traveling with a suitcase filled with thirty-six soda bottles containing liquid methamphetamine weighing approximately sixty-four pounds.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Kevin R. Sanchez.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Westerville Youth Coach Arrested on Child Porn ChargesRead the Press Release
COLUMBUS – An investigation by federal, state and local law enforcement in Central Ohio has led to the arrest of Bryan Lehman, 50, of Westerville, Ohio for allegedly producing, receiving, distributing and possessing child pornography.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Franklin County Sheriff Zach Scott, Westerville Police Chief Joseph Morbitzer and members of the Franklin County Internet Crimes Against Children Task Force announced the arrest today.
The criminal complaint alleges that since November 2010 Lehman participated in the use of a minor engaged in sexually explicit conduct for the purpose of producing images or video. He also allegedly received, distributed, and possessed sexually explicit images and video of minors.
Production of child pornography is punishable by a range of 15 to 30 years in prison. Receipt and distribution of child pornography are punishable by a range of 5 to 20 years in prison.
Lehman served as a volunteer coach for the Westerville Youth Baseball and Softball League in the spring of 2014. He is scheduled to appear for a detention hearing today at 2 p.m. in front of U.S. Magistrate Judge Terrence P. Kemp.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office Upper Arlington Police Department
Grove City Police Department Columbus Police Department
Grandview Heights Police Department Whitehall Police Department
Hilliard Police Department Westerville Police Department
Homeland Security Investigations U.S. Secret Service
Ohio ICAC Franklin County Prosecutor's OfficeThis case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the members of the ICAC Task Force for the cooperative investigation, and Assistant U.S. Attorney Heather Hill and Special Assistant U.S. Attorney Jennifer Rausch, who are representing the United States in this case.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Carla Latice Merriweather, 25, of South Bend, Indiana pled guilty to the felony offense of being a drug user in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for January 8, 2015. This case is being prosecuted by Assistant United States Attorney Donald J. Schmid.
- Marie Roberts Henderson, 36, of Nappanee, Indiana pled guilty to the felony offense of willfully aiding, assisting and advising in the preparation and presentation to the Internal Revenue Service, of U.S. Individual Income Tax Returns, Forms 1040 which were false as to a material matter. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service-CID. Sentencing has been set for January 22, 2015. This case is being prosecuted by Assistant United States Attorney Barbara Brook.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Willie Long, 23, of Elkhart, Indiana was sentenced to 51 months imprisonment with 18 months supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, Long was driving an automobile in St. Joseph County, Indiana with a Smith & Wesson handgun in the car. Long had been convicted of a felony in Elkhart County in 2007 in Circuit Court. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- John Carlisle, 50, of New Haven, Indiana was sentenced to 37 months imprisonments to be followed by two years of supervised release after pleading guilty to the felony offense of making false statements in connection with a mortgage loan and mortgage insurance. According to documents filed in this case, during the period 2008 through 2010, John Carlisle was a licensed loan originator in Fort Wayne, Indiana. Ryan Webb, in conjunction with Johnny Stine and others, purchased low-end homes in the Fort Wayne area, often using an entity called Sunset Properties of NI, LLC. Through the use of advertising and a website, Webb and Stine attracted buyers for these properties. Webb and Stine would then sell these low end homes to these buyers, most often for a sales price of two or three times what had been paid for the homes. Oftentimes, the purchasers of the homes were of very modest financial means and could not, on their own, qualify for the needed mortgage loan. As part of a fraud scheme, Webb and Stine provided monies to the home buyers/borrowers to cover loan closing costs and to give the appearance that the buyers had assets in reserve. To hide the fact that all of the monies for closing and reserves had come from Webb/Stine (monies that were supposed to come from the buyers/borrowers or persons who were relatives of them but in fact came from the seller/real estate broker), Webb and Stine with the knowledge and help of Carlisle prepared phony “gift letters” documenting falsely that the monies Webb and Stine provided had come from family or relatives of the buyers/borrowers. These sham gift letters with false representations violated applicable HUD/FHA mortgage insurance regulations and in fact deceived HUD/FHA. Because these buyers/borrowers could not on their own qualify for the mortgage loans, they frequently defaulted soon after getting the mortgage loans and the homes went into foreclosure, which caused substantial losses to the mortgage lenders and mortgage insurance provider HUD/FHA. This case was the result of an investigation by the FBI. This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Soulemayne Camara, 27, of Indianapolis, Indiana pled guilty to the felony offenses of possession of fifteen or more unauthorized access devices and the interstate transportation of stolen goods. This charge was filed as a result of an investigation by the United States Department of Treasury. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Randall Stewart.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Aalap Shah, 32, of Chicago, Illinois was sentenced to 1 year probation and to pay $19,953.90 in restitution after pleading guilty to the misdemeanor offense of knowingly and willfully aiding and abetting the submission of applications to Medicare and Medicaid that contained misrepresentations of material facts. According to documents filed in this case, Shah specifically claimed to be the owner of the business when in fact the actual owner of the business was her father. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Preston R. Craig, 41, of Fort Wayne, Indiana pled guilty to the felony offense of maintaining a drug-involved premise. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Drug Enforcement Administration, and the Fort Wayne Police Department. Sentencing will be set by separate order by the district court. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
- Derek C. Whetsel, 43, of Fort Wayne, Indiana pled guilty to the felony offense of selling a firearm to a convicted felon. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Fort Wayne Police Department. Sentencing will be set by separate order by the district court. This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Marcel T. Banks, 26, of Fort Wayne, Indiana, was sentenced to 6 months imprisonment, with 3 years supervised release and to pay $87,000 in restitution after pleading guilty to the felony offense of bank fraud. According to documents filed in this case, during the course of an investigation, the Internal Revenue Service obtained bank records, interviewed bank representatives and other individuals and discovered that the brother of Marcel Banks, working as a personal banker at a local bank, had become, with Marcel Banks, secondary joint owners to an account that was opened without the knowledge of the customer. Banks had attempted to withdraw $10,000 from the account and the attempted transaction was captured on bank surveillance camera. This case was the result of an investigation by the Internal Revenue Service. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
- Raul Resendiz, 35, of Fort Wayne, Indiana, was sentenced to 46 months with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of firearm. According to documents filed in this case, a 911 call came into Fort Wayne Police Department’s dispatch about an individual who had a gun and was in their home threatening to shoot police if they came after him. Police arrived and apprehended the individual, identified as Resendiz and located an AK 47 assault type rifle within his reach. Federal agents subsequently learned about the location of another weapon Resendiz had which he kept at his girlfriend’s residence and recovered from that location a Norinco SKS rifle. Resendiz had a 2011 prior felony conviction in Allen Superior Court for dealing in a counterfeit substance and was, at the time of his arrest on the federal charges, on state probation for the drug offense. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Tina Nommay.
Utica Tax Preparer Sentenced for Preparing False Tax ReturnsRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that JAMES BUTCHER (58, of Little Falls, NY), an accountant engaged in the business of preparing tax returns, was sentenced to 12 months and 1 day imprisonment, as well as 1 year supervised release and restitution to the IRS in the amount of $79,771.00 for his felony conviction for aiding and assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2).
During the plea hearing on April 2, 2014, before the Honorable David N. Hurd in Utica, NY, BUTCHER admitted the following: That he was the owner and operator of a tax preparation business named Jim’s Income Tax Service, which he operated out of his residence located in Little Falls, New York. From 2007 through 2010, he prepared forty false Form 1040 returns for fourteen of his clients. All forty of the 1040 forms contained false or inflated “Schedule A” deductions. Specifically, they all contained false or inflated charitable deductions and some also included false or inflated unreimbursed employee expenses. In preparing these forty returns, the defendant created and falsified expenses and deductions relating to charitable contributions and job expenses. He further admitted that he inflated deductions without being directed to do so by his clients. The total tax loss resulting from the forty false and fraudulent returns for tax years 2007-2010 is $140,446.00.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigations, Syracuse, New York. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).
Two Tampa Corporations and Four Tampa Residents Plead Guilty to Scheme to Unlawfully Sell an Unregistered Pesticide and Obstruct JusticeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Maureen O’Mara, Special Agent in Charge, United States Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Michael A. Hill, Special Agent in Charge, United States Environmental Protection Agency, Office of Inspector General (EPA-OIG), Atlanta Field Office, and Colonel/Director Calvin Adams, Florida Fish and Wildlife Conservation Commission, Division of Law Enforcement (FWCC), announce that New Nautical Coatings, Inc., d/b/a “Sea Hawk Paints,” Sea Hawk Refinish Line, Inc., d/b/a “Refinish Line Auto Supplies,” of Clearwater, and Erik Norrie, 42, David Norrie, 46, Jason Revie, 44, and Tommy Craft, 46, each of Hillsborough County, pled guilty before United States District Judge Ursula Ungaro.
New Nautical Coatings, Inc. and David Norrie pled guilty to willfully conspiring to corruptly obstruct the due and proper administration of law under which a pending proceeding was being had before the Environmental Protection Agency, in violation of Title 18, United States Code, Section 371. At sentencing, David Norrie faces up to five years in prison, up to three years of supervised release, and a $250,000 fine. At sentencing, New Nautical Coatings, Inc. faces a fine of up to $500,000, or twice the gross pecuniary gain resulting from the offense, whichever is greater, and a term of probation of not less than one year and not more than five years. Pursuant to the terms of the plea agreement, New Nautical has agreed to pay a fine of $1,235,315.00, and implement a comprehensive Environmental Compliance Plan in cooperation with the U.S. Attorney’s Office and the EPA.
Sea Hawk Refinish Line and Erik Norrie pled guilty to willfully conspiring to knowingly distribute and sell an unregistered pesticide, in violation of Title 18, United States Code, Section 371. Jason Revie and Tommy Craft pled guilty to knowingly distributing and selling an unregistered pesticide, in violation of Title 7, United States Code, Section 136j(a)(1)(A). At sentencing, Erik Norrie, Jason Revie and Tommy Craft face up to one year in prison, up to one year of supervised release and a $100,000 fine. Sea Hawk Refinish Line, Inc. faces a fine of up to $200,000, or twice the gross pecuniary gain resulting from the offense, whichever is greater, and a term of probation of not more than five years.
According to court documents, New Nautical manufactured a marine paint called Biocop Anti-Fouling Coating which contained tributyltin methacrylate (“TBT”), a pesticide subject to registration with the EPA that was found to have a significant harmful effect on marine life. On or about March 30, 2005, the EPA cancelled New Nautical’s registration for Biocop, making it unlawful for the company to manufacture Biocop for sale in the United States after December 1, 2005, or sell Biocop in the United States after December 31, 2005. At the time, New Nautical was the last manufacturer of TBT based anti-fouling coatings in the United States.
In order to manufacture and sell Biocop after its registration was canceled, New Nautical Coatings conceived and executed a plan to produce and sell Biocop in the United States by making it appear that it had manufactured Biocop prior to December 1, 2005, and sold its inventory of the banned pesticide to distributors, including to codefendant Refinish Line, by December 31, 2005. In an effort to conceal New Nautical’s unlawful production and sale of Biocop from authorities, David Norrie falsely represented to an EPA inspector that New Nautical had sold its existing stock of Biocop to distributors. Additionally, after David Norrie sold 60 gallons of Biocop to a customer in Broward County, he directed that customer to tell the EPA that he did not have Biocop and that New Nautical did not sell Biocop.
Sentencing for all defendants is scheduled for December 5, 2014.
Mr. Ferrer commended the investigative efforts of EPA-CID, EPA-OIG, and FWCC. This case is being prosecuted by Assistant U.S. Attorneys Alejandro O. Soto and Maria Medetis.
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.
Tampa Man Pleads Guilty to Attempted Enticement of A Child for SexRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Nicholas Darwin Yancey (30, originally from Orlando) pleaded guilty yesterday to child enticement. He faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on February 10, 2014, Yancey, an enlisted member of the U.S. Air Force, posted an advertisement on Craigslist soliciting members of the public for “texting/sexting.” An undercover law enforcement officer with the U.S. Air Force Office of Special Investigations, posing as a 14 year-old child, responded to the ad. Yancey and the “child” communicated over the Internet for months, during which time Yancey told the “child” that he wanted to engage in sexual intercourse with her. He engaged in sexually explicit conversation and solicited nude photographs of the “child.” He also stated that he had a crush on her, and invited her to a sleepover at a hotel on MacDill Air Force Base.
On June 26, 2014, the undercover officer observed several additional postings from Yancey on Craigslist. The officer responded to one of the advertisements posing as a second “child.” Yancey and the second “child” communicated using an Internet messaging application. Yancey told the second “child” that he wanted to engage in sexual intercourse with her, and possibly one of her friends. He arranged to meet the second “child” for sex on July 3, 2014, but later attempted to change the meeting. When the second “child” declined, Yancey informed her that he would simply go down the list, referring to his ability to find another person to meet. On June 27, 2014, Yancey contacted the first “child” and arranged to meet her later that week for sex. On June 29, 2014, he traveled to the Ballast Point area of Tampa, where they had arranged to meet, and was arrested.
This case was investigated by the U.S. Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Stuart Rosenfeldt Sentenced in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Stuart Rosenfeldt, 59, of Boca Raton, was sentenced today by United States District Judge Marcia G. Cooke to 33 months imprisonment, to be followed by two years’ supervised release in connection with his conviction for conspiracy to commit campaign finance fraud, to defraud the United States, to commit bank fraud and to deny civil rights, in violation of 18 U.S.C. § 371. Rosenfeldt was an attorney admitted to practice law in Florida and was an equity partner in the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
During his June 11, 2014 guilty plea, the defendant admitted that, in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Rosenfeldt, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA. Rosenfeldt also participated in a scheme to float checks between and among certain bank accounts maintained by RRA in a form of bank fraud commonly known as “check kiting.” Additionally, Rosenfeldt arranged with Rothstein to have certain law enforcement officers utilize unlawful threats against the boyfriend of an escort who was threatening to expose an illicit relationship which existed between the escort and Rosenfeldt.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case was prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
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.
State Prison Inmate Sentenced to Federal Prison for Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an inmate at SCI Waymart who arranged drug transactions from prison was sentenced to 46 months in federal prison today by U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney Peter Smith, the defendant, Eudy Gonzalez, age 24, previously admitted that he conspired with others to distribute and possess with intent to distribute heroin from November 2013 through January 2014.
Gonzalez was indicted by a federal grand jury on March 11, 2014, as a result of an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.
Judge Mannion ordered that the federal sentence run consecutive to Gonzalez’s state sentence. Judge Mannion also ordered Gonzalez to serve three years on supervised release following his prison sentence, and pay a $100 special assessment.
Gonzalez, a citizen of the Dominican Republic, is also subject to deportation.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
St. Tammany Woman, Ramona Hudson, Pleads Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAMONA HUDSON, age 51, a resident of Slidell, Louisiana, pled guilty yesterday to one count of conspiracy to commit wire fraud relating to a fraudulent application she made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. On October 1, 2010, HUDSON applied for disaster assistance funds, representing that she was employed in a commercial fishing business before the oil spill. However, HUDSON had never worked in the commercial fishing business, and she submitted or caused to be submitted false documentation to establish her false earnings. Based on HUDSON’S fraudulent application, HUDSON received approximately $75,000 to which she was not entitled.
HUDSON faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment. U.S. District Judge Lance M. Africk set sentencing for January 8, 2015.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
(Download Factual Basis )
Shooter Sentenced to 43 Years for 1997 Livery Cab HomicideRead the Press Release
Elvin Hill was sentenced today to 43 years in prison at the federal courthouse in Brooklyn. In January 2014, following a jury trial, Hill was convicted of murdering Fredy Cuenca, a livery cab driver, during the course of a robbery on June 29, 1997, in Bushwick, Brooklyn.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office. The sentence was imposed by United States District Court Judge Kiyo A. Matsumoto.
“Almost 20 years ago, in a crime both senseless and brutal, Hill murdered an innocent man on a public street in broad daylight,” stated United States Attorney Lynch. “Now, thanks to the dogged efforts of federal investigators, he has been brought to justice for this brutal crime.”
On the afternoon of June 29, 1997, Hill and another individual were passengers in a livery cab driven by Cuenca. After directing Cuenca to park near a schoolyard on Eldert Street in Bushwick, Brooklyn, Hill bickered with Cuenca over the fare. Hill then drew a .380 caliber pistol that had been concealed on his person, and pointed it at Cuenca’s head. Cuenca, who spoke only broken English, pleaded for his life, pointing at a photo of his two young sons that he kept on the dashboard of his vehicle. Despite his pleas, Hill shot Cuenca in the head, and both he and his companion fled the scene. Cuenca’s brother-in-law, who was also a cab driver, found Cuenca bleeding in his cab a few minutes later and took him to a nearby hospital, where he died.
Although investigators identified the suspects shortly after the crime, there was insufficient evidence to charge them in 1997. Years later, a federal investigator who had previously been assigned to the case as a New York City Police Department detective obtained additional evidence. In March 2012, a federal grand jury returned an indictment against Hill.
Ms. Lynch extended her grateful appreciation to the FBI and to the New York City Police Department for their assistance in this prosecution.
The government’s case was prosecuted by Assistant United States Attorneys Daniel Silver and Seth DuCharme.
The Defendants:
ELVIN HILL
Age: 35
E.D.N.Y. Docket No. 12 CR 214
Romanian Man Sentenced for Wire Fraud and Possession of False Identity DocumentsRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway yesterday sentenced Mihaly Kulcsar (33, a citizen of Romania) to three years in federal prison for conspiracy to commit wire fraud and possession of false identity documents. As part of the judgment, the Court also ordered Kulcsar to pay $355,000 in restitution to his victims. He pleaded guilty on May 22, 2014.
According to court documents, Kulcsar was arrested in July 2013, at a Bank of America branch in Orlando, after he tried to open a bank account with fraudulent identification documents. Further investigation revealed that Kulcsar possessed fake passports and other fake identity documents in four different names, from Denmark, Finland, France, and the Slovak Republic. Kulcsar admitted that he had come to the United States with these fake documents and identities to open business accounts at several banks in central Florida. As part of his scheme, he targeted large banking institutions, including Bank of America, Fifth Third, Chase, SunTrust, Wells Fargo, and BB&T. Kulcsar obtained $355,000 during the course of the scheme, which he wired the money to his co-conspirators through overseas bank accounts.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Bruce S. Ambrose.
River Ridge Man and His Company Charged in Superseding Indictment with Conspiring to Manufacture and Sell Counterfeit Mercedes-benz Diagnostic Equipment Worth over $15,000,000Read the Press Release
U.S. Attorney Kenneth A. Polite announced that RAINER WITTICH, age 65, of River Ridge, Louisiana, and the company he owns, THE BRINSON COMPANY, of Harahan, Louisiana, were charged yesterday in a nine-count superseding indictment by a federal grand jury for their role in creating and selling fake Mercedes-Benz diagnostic equipment containing proprietary software without authorization.
According to the Indictment, WITTICH owned THE BRINSON COMPANY, which sold replacement parts and diagnostic equipment for Mercedes-Benz vehicles. Beginning in about 2001, WITTICH and THE BRINSON COMPANY began developing, manufacturing, and selling fake versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software, with the assistance of a Durham, North Carolina-based company. They did so by obtaining Mercedes-Benz software without authorization, applying “cracks and fixes” to make the software work on everyday laptop computers, and making hundreds of copies of the software product. WITTICH and others then worked to override Mercedes-Benz security systems by purchasing false license keys from a United Kingdom-based individual that, combined with other modifications, would “unlock” the SDS software and make it operable on the counterfeit devices. When Mercedes-Benz notified the United Kingdom-based individual that his conduct was in violation of the law, WITTICH and others discussed plans to have him “go underground and off the radar” and continue to provide assistance and support in the production of fake SDS.
Beginning in about 2005, WITTICH entered into a conspiracy with a California-based company to manufacture and sell the SDS. On some occasions, when one of the fake SDS units sold by the North Carolina or California companies would break, WITTICH and BRINSON would repair them and return them to the customers.
Genuine SDS diagnostic devices are used by mechanics to identify problems with and assure the safety of motor vehicles employing electronic control systems; the fraudulent or unauthorized sale of such units increases the risk of Mercedes-Benz automobiles being stolen or suffering from misdiagnosed or undiagnosed problems. Genuine SDS sold for up to $22,000 each, while WITTICH’S fake SDS sold for between $5,000 and $11,000. In total, WITTICH and BRINSON sold not fewer than 700 counterfeit SDS, and the California-based company sold at least 95 devices.
The superseding indictment added five new counts, including conspiracy to commit copyright infringement and traffic in counterfeit labels and conspiracy to commit international money laundering.
The trial is currently scheduled to begin on November 3, 2014. If convicted, WITTICH faces a maximum term of imprisonment of 60 years, followed by up to 3 years of supervised release, and fine of up to $250,000. BRINSON faces up to a $500,000 fine.
U.S. Attorney Polite reiterated that the Superseding Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg and United States Department of Justice Computer Crime & Intellectual Property Section Senior Counsel Evan Williams are in charge of the prosecution.
(Download Indictment )
Readout of Justice Department Officials' Trip to Ferguson, MissouriRead the Press Release
Justice Department spokeswoman Dena Iverson released the following statement Friday regarding the just-completed, two-day visit to Ferguson, Missouri, by senior Justice Department officials:
“At the request of Attorney General Eric Holder, Department of Justice leadership traveled to Ferguson, Missouri, for meetings with the city and the community on Thursday and Friday. As part of the Civil Rights Division’s commitment to a thorough and fair investigation Acting Assistant Attorney General for Civil Rights Molly Moran and Deputy Assistant Attorney General Mark Kappelhoff met with Ferguson City and Ferguson Police Department leadership regarding the ongoing pattern and practice investigation into FPD and discussions included follow up on letters sent to Ferguson Police Chief Jackson regarding identification of officers and uniform requirements. Ronald Davis, Director of the Office Community Oriented Policing Service, and Rob Chapman, Deputy Director of COPS, also attended law enforcement leadership meetings in Ferguson and St. Louis County as part of COPS’s efforts to provide technical assistance to the police department on an ongoing basis.
“Moran, Davis and Kappelhoff were joined by the Community Relations Service during a meeting with community leaders regarding the pattern and practice investigation on Thursday. There will be additional opportunities for community members to meet with Civil Rights Division staff as part of the pattern and practice investigation in the near future.
“While in St. Louis the Civil Rights Division leadership also received an update from the FBI, Civil Rights Division and U.S. Attorney’s Office investigators on the continuing investigation into the shooting of Michael Brown.”
Rapid City Man Found Guilty of Commercial Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that Jerry Lane Golliher, age 32, of Rapid City, South Dakota, was found guilty of Commercial Sex Trafficking following a two-day federal jury trial held in U.S. District Court in Rapid City. The guilty verdict was returned on October 1, 2014.
The charge carries a mandatory minimum term of 15 years in federal prison and up to life imprisonment and/or a $250,000 fine, a mandatory minimum term of 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Golliher was indicted for Commercial Sex Trafficking by a federal grand jury on August 13, 2013. He was one of nine men who were arrested and indicted as a result of a sex trafficking undercover operation conducted during the 2013 Sturgis Motorcycle Rally, targeting persons willing to pay money to have sex with underage girls. All nine men were indicted for Commercial Sex Trafficking.
Following several emails with a person who Golliher believed to be associated with a 13 year-old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, as well as the price he would pay for sex with the girl, which was $150. When Golliher went to the pre-determined location to complete the transaction, he was instead met by law enforcement agents and placed under arrest.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorneys Sarah Collins and Ben Patterson prosecuted the case.
Golliher was remanded to the custody of the U.S. Marshals Service pending sentencing.
Prior Felon Exiled to 10 Years in Prison for Drug Dealing and Possessing A GunRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Vyron A. Cox, Jr., age 28, of Washington, D.C., today to 10 years in prison followed by three years of supervised release for being a felon in possession of a gun and possession with intent to distribute 5.45 grams of marijuana.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; Maryland Attorney General Douglas F. Gansler; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, on December 27, 2012, Prince George’s County Police officers in the area of 2400 Chillum Road in Hyattsville, Maryland saw Cox repeatedly getting in and out of several cars, leading officers to suspect that Cox was involved in drug dealing. Marked patrol units were called to the scene and an officer approached Cox who was inside a car. As the officer approached the car, Cox got out and began to walk away. Cox ignored police requests to stop, and kept reaching for his front pockets and waistband.
Officers also saw a black object in Cox’s right hand. They ordered Cox to stop and lay down. Cox held his hand under his body, resting on his waistband. From that area, officers seized a loaded, black handgun. They also seized 12 plastic bags of marijuana from Cox’s front pants pocket and additional plastic bags of marijuana from the car. The bags contained a total of 5.45 grams of marijuana. Prior to this time, Cox had been convicted of a felony and was prohibited from possessing a firearm.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department, Maryland Attorney General’s Office and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, and Assistant United States Attorney Kelly O'Connell Hayes, who prosecuted the case.
Plymouth Man Indicted on Child Pornography ChargesRead the Press Release
Boston – A Plymouth man was indicted yesterday with distribution and possession of child pornography.
Brendan R. Kessler, 25, was indicted by a federal grand jury in Boston in connection with his distribution of child pornography, discovered by undercover agents. According to an affidavit filed in support of a previously issued complaint, on May 16, 2014, law enforcement discovered that Kessler was utilizing a public file sharing program to post what appeared to be child pornography. On Sept. 2, 2014, a search warrant was executed at Kessler’s Plymouth residence and a computer, various digital devices, hard drives, and other media storage devices were seized and determined to contain multiple images and videos of child pornography. Additionally, 14 unsecured firearms (many of them loaded), various caliber ammunition, boxes of fireworks, detonator cords, remote firing switches, and hand written journals were observed. Kessler was arrested following the execution of the search warrant and is currently held in federal custody.
The charge of distribution of child pornography provides a maximum sentence of 20 years in prison, a minimum mandatory term of five years, and a lifetime of supervised release. The charge of possession of child pornography provides a maximum sentence of 10 years in prison, and a 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; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Plymouth Police Chief Michael E. Botieri, made the announcement. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crime Unit.
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.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.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 Criminal Division’s CEOS, 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/.
Pine Ridge Man Indicted for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Assault on a Federal Officer.
Jerry Jesse Bear Shield, Jr., age 34, was indicted on September 22, 2014. He appeared before U.S. Magistrate Judge Veronica Duffy on September 26, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years’ imprisonment and/or a $250,000 fine, 3 years’ supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that on August 6, 2014, at Pine Ridge, Bear Shield assaulted an Oglala Sioux Tribe police officer who was attempting to arrest him.
The charge is merely an accusation and Bear Shield is presumed innocent until and unless proven guilty.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Bear Shield was released pending trial. A trial date has not been set.
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging and Fraud at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland against Gernot Sebastian Zepernick of Concord, Calif. To date, 47 individuals have agreed to plead or have pleaded guilty, as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, beginning as early as November 2008 until about January 2011, Zepernick conspired with others not to bid against one another, and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Contra Costa County. Zepernick was also charged with conspiring to use the mail to carry out a scheme to fraudulently acquire title to selected Contra Costa County properties sold at public auctions, to make and receive payoffs, and to divert money to co-conspirators that would have otherwise gone to mortgage holders and other beneficiaries by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held.
“Collusion at the foreclosure auctions created an unfair playing field where the 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 corrupt the competitive process.”
The department said that the primary purpose of the conspiracies was to suppress and eliminate competition and to conceal payoffs in order to obtain selected real estate offered at Contra Costa County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. These conspirators paid and received money, according to the court documents, that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“These charges represent another significant success in our ongoing fight against the corrupt practices and illegal activities central to this long running bid-rigging scheme,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The FBI will continue to aggressively investigate real estate-related frauds and other violations of federal law which victimize distressed homeowners and financial institutions through the exploitation of the housing crisis.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, California. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300, or call the FBI tip line at 415-553-7400.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 93 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Nicaraguan Man, Norwin Castellon-lopez, Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NORWIN CASTELLON-LOPEZ, age 32, a citizen of Nicaragua who recently resided in New Orleans, pled guilty yesterday to a one-count indictment for illegal reentry of removed alien.
According to the indictment, on or about July 29, 2014, CASTELLON-LOPEZ was found in the United States after having been officially deported and removed on or about December 22, 2010.
CASTELLON-LOPEZ faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for December 11, 2014.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
(Download Factual Basis )
New Jersey Man, Stanley Zdon, Iii, Sentenced to 18 Years for Conspiracy to Produce Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STANLEY ZDON, III, age 28, a resident of Tuckerton, New Jersey, was sentenced today for conspiracy to produce child pornography
U.S. District Judge Susie Morgan sentenced ZDON to 18.25 years imprisonment, supervised release for life, and ZDON will have to register as a sex offender.
According to court documents, in November 2013, ZDON was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that ZDON conspired with Jonathan Johnson, the administrator of a multi-national child pornography website, to create and post videos depicting the sexual exploitation of children on the Internet. ZDON has been in custody since his arrest.
U.S. Attorney Polite stated, “Stanley Zdon is the latest defendant brought to justice as a result of Operation Roundtable. The U.S. Attorney’s Office and Homeland Security Investigations will remain vigilant in identifying all those involved in the creation and circulation of these hideous images depicting the sexual exploitation of children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised Homeland Security Investigations in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant United States Attorney Brian M. Klebba is in charge of the prosecution.
Mount Vernon Woman Pleads Guilty to Health Care FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Margaret R. Teriet, 32, of Mount Vernon, Illinois, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. Sentencing has been set for January 15, 2015, in United States District Court in Benton, Illinois. Teriet will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During her plea hearing, Teriet admitted that she had submitted false and fraudulent bills in relation to her alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Teriet admitted to falsely billing the program between April 30, 2012 and December 31, 2012, when she purportedly rendered personal assistant services to an individual when she, in fact, did not. As a result, Teriet improperly received payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police, Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney William E. Coonan and Special Assistant United States Attorney Michael J. Hallock.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Mobile County Man Sentenced to 130 Months Incarceration After Conviction for Drug CrimeRead the Press Release
The United States Attorney Kenyen R. Brown announces that Anthony S. King, a 35 year old resident of Mobile, Alabama, was sentenced today. Mr. King pled guilty on February 5, 2014, to Possession with intent to distribute 226 grams of cocaine. Mr. King received a sentence of 130 months incarceration followed by three years of supervised release. His sentence was enhanced based, in part, on two prior federal felony drug distribution convictions that qualified him as a Career Offender.
The Mobile, Alabama Police Department investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Maryland Man Sentenced to 14-Year Prison Term for Sexually Abusing Subordinate Food Services EmployeeAttacks Took Place at Federal Building in Washington, D.C.Read the Press Release
WASHINGTON – Alexander Hughes, 35, of Odenton, Md., was sentenced today to 14 years in prison for sexually abusing a subordinate employee in the cafeteria of a federal building where they worked in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Hughes was found guilty in May 2014, following a trial in the Superior Court of the District of Columbia, of one count of kidnapping, one count of first-degree sexual abuse with aggravating circumstances, three counts of second-degree sexual abuse with aggravating circumstances, and numerous counts of misdemeanor sexual abuse with aggravating circumstances. He was sentenced by the Honorable John Ramsey Johnson. Upon completion of his prison term, Hughes will be placed on five years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, Hughes was a contract employee who worked as a food services supervisor at the U.S. Department of Homeland Security on Nebraska Avenue NW. The victim was one of the food preparation employees. Between December 2011 and December 2012, Hughes engaged in numerous acts of sexual abuse in various locations within the cafeteria, including an employee changing room and restroom.
Hughes engaged in this conduct by force, as well as by telling the victim on numerous occasions that he could have her fired if she did not submit to his sexual acts. The victim, who felt totally helpless, eventually got the courage to report the sexual abuse, leading to a law enforcement investigation and Hughes’s arrest. According to the government’s evidence, Hughes also had sexually abused the victim and two other female subordinate employees by hitting them on the buttocks with various items, including cooking utensils, while they worked.
In announcing the sentence, U.S. Attorney Machen commended the work of detectives from the Metropolitan Police Department’s Sexual Assault Unit and Mobile Crime Division, and law enforcement officers with the U.S. Department of Homeland Security. He also praised the efforts of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Melissa Milam; Victim/Witness Security Specialists Katina Adams-Washington and David Foster; Paralegal Specialists Jason Manuel and Joyce Arthur; Joshua Ellen, Joseph Calvarese, Kimberly Smith, and the Litigation Services team, and Assistant U.S. Attorneys Amy Zubrensky, who investigated and tried the case, and Rebekah Holman, who co-tried the case.
14-225Loan Officer at TARP Bank and Accomplice Sentenced for Bank Related FraudRead the Press Release
DENVER – Two men who defrauded a bank that received Troubled Asset Relief Program (TARP) funds were sentenced this week for their criminal conduct, the U.S. Attorney’s Office for the District of Colorado and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) announced. Christopher Tumbaga, age 37, of Colorado Springs, Colorado a bank loan officer was sentenced by U.S. District Court Judge William J. Martinez to serve 36 months in federal prison, followed by 4 years on supervised release. Tumbaga was also ordered to pay $1,055,918 in restitution to the United States for his crimes of bank fraud and illegally receiving kickbacks. Co-defendant Brian Headle, age 38, also of Colorado Springs, Colorado, was sentenced by Judge Martinez to serve 36 months in prison, followed by 4 years on supervised release for his crime of corruptly influencing a bank officer. He was ordered to pay the $1,055,918 in restitution to the government joint and several with Tumbaga.
Tumbaga and Headle were indicted by a federal grand jury in Denver on September 25, 2013. Tumbaga pled guilty on March 24, 2014. He was sentenced on September 30, 2014. Headle pled guilty on June 26, 2014. He was sentenced on October 3, 2014.
According to court documents, Tumbaga was employed as a loan officer at Colorado East Bank & Trust (Colorado East). From approximately March 2009 to July 2011, Tumbaga obtained more than 14 loans and misapplied funds from a line of credit for the benefit of a high school friend, co-defendant Brian Headle.
In March 2009, Headle contacted Tumbaga to discuss securing a loan or line of credit from Colorado East to finance Headle’s real estate development business. Tumbaga subsequently secured a $250,000 line of credit for Headle based on allegedly false financial information provided by Headle to Tumbaga that Tumbaga intentionally failed to verify. Shortly after, Tumbaga and Headle formed a partnership in which Tumbaga would secure fraudulent loans for Headle’s benefit, and in return, Tumbaga would receive from Headle kickbacks financed by profits from Headle’s real estate venture.
In order to obscure that the loans were intended entirely for Headle’s benefit, Tumbaga obtained the loans in multiple names. Loans were obtained in the name of Headle’s company, Investment One LLC; Headle’s wife; and Headle’s wife’s company. When additional loans were needed in order to maintain payments on outstanding loans, Tumbaga obtained fraudulent loans in the names of Headle’s parents and step-parent. When approval for a loan was needed from the bank’s president, Tumbaga forged the bank president’s signature. Additionally, in one instance, Tumbaga withdrew $100,000 from a bank customer’s line of credit and wired the money to Headle, all unbeknownst to the bank customer. Over the course of the bank fraud scheme, Tumbaga obtained approximately $1.2 million from Colorado East for Headle’s benefit, and Tumbaga purportedly received more than $60,000 in kickbacks from Headle.
“The TARP program was designed to protect our economy by protecting banking institutions from fraud,” said U.S. Attorney John Walsh. “When an officer of a bank defrauds that institution, we will aggressively prosecute and seek to incarcerate those responsible.”
“While taxpayers bailed out Colorado East bank with $10 million in TARP bailout funds, bank loan officer Tumbaga chose to break the law, actively scheming with high school pal Headle to defraud the bank out of $1 million in loans,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “This crime could not have happened without a bank gatekeeper like Tumbaga, who opened the door to Headle while taxpayers ended up losing $2 million on their TARP investment.”
In February 2009, ColoEast Bankshares, Inc. the parent company of Colorado East Bank & Trust, received $10 million in federal taxpayer funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP). The bank was later unable to pay more than $1 million it owed to taxpayers as a result of holding the TARP funds. In July 2013, the Treasury Department sold its stake in the company at auction for approximately $9 million. In total, approximately $2 million owed to federal taxpayers was lost on the investment.
This case was investigated by SIGTARP, the Federal Deposit Insurance Corporation Office of the Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Suneeta Hazra.
This prosecution was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, which was established to wage an aggressive and coordinated effort to investigate and prosecute financial crimes. SIGTARP is a member of the task force. To learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.StopFraud.gov.
About SIGTARP
The Office of the Special Inspector General for the Troubled Asset Relief Program investigates fraud, waste, and abuse in connection with TARP.
To report suspected illicit activity involving TARP, dial the SIGTARP Hotline: 1-877-SIG-2009 (1-877-744-2009).
To receive alerts about quarterly reports, new audits, and media releases issued by SIGTARP, sign up at www.SIGTARP.gov/pages/press.aspx. Follow SIGTARP on Twitter @SIGTARP.
- Katy Man Guilty of Attempted Robbery and Solicitation to Commit A Crime of Violence
Justice Department Settles Lawsuit Against Key Safety Systems, Inc. to Enforce Employment Rights of United States Army National Guard MemberRead the Press Release
The Justice Department’s Civil Rights Division and U. S. Attorney A. Lee Bentley III for the Middle District of Florida announced today that they reached an agreement with Key Safety Systems Inc. resolving claims that Key Safety Systems violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by demoting U.S. Army National Guard Member Ronald Collins Jr. following the announcement of his military deployment.
According to the complaint, filed in the United States District Court for the Middle District of Florida, in October 2012, Collins notified Key Safety Systems that he was being deployed in February 2013 for one year of military service. In December 2012, Collins was notified by Key Safety Systems that, effective immediately, he was being demoted, which resulted in a reduction in pay. According to the complaint, Collins had not been the subject of any disciplinary actions prior to the announcement of his impending deployment.
The complaint further alleged that, at the time of the demotion, Collins was not provided any basis underlying the decision to demote him. In January 2014, Collins returned from deployment and was returned to the position to which he had been demoted at Key Safety Systems. Collins submitted his letter of resignation to Key Safety Systems in February 2014.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations.
“Congress enacted USERRA to protect our men and women in uniform,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Mr. Collins, like many members of the National Guard and Reserve, was called upon by his country in a time of need and the Department of Justice strongly supports the rights of service members to reclaim their rightful positions in the workforce after they complete their military service.”
Under the terms of the settlement, which was filed as a consent decree simultaneously with the complaint, Key Safety Systems has agreed to pay $20,000 as back pay and liquidated damages to Collins.
“Members of the United States Army National Guard are often called to make many sacrifices, including spending months or years away from their jobs and families,” said U.S. Attorney Bentley. “When they are deployed in the service of our country, their employment rights must be protected. Our office and the entire Department of Justice are committed to ensuring that individuals do not lose their rights while they are protecting ours.”
This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Florida, who work collaboratively with the DOL to protect the jobs and benefits of National Guard and Reserve servicemembers upon their return to civilian life.
The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Justice Department Files Suit Against New Jersey Company for Adulterated and Misbranded Medical DevicesRead the Press Release
The Department of Justice announced today that the department, on behalf of the Food and Drug Administration (FDA), has filed suit in the U.S. District Court for the District of New Jersey against Pharmaceutical Innovations Inc. and Gilbert Buchalter, who is the company’s founder, owner, and chairman of the board.
According to the complaint, the defendants violated the Federal Food, Drug and Cosmetic Act (FDCA) by manufacturing and distributing adulterated and misbranded medical devices. The devices at issue are gels that hospitals and other caregivers use to take ultrasound scans. Under the FDCA, a device manufacturer must: comply with current good manufacturing practice requirements; obtain required premarket approval or clearance before distributing its devices and notify the FDA and follow-up on any reports of serious injuries or deaths associated with its devices. The government alleges that the company violated each of these requirements.
“This action furthers the FDA’s mission of ensuring that all medical devices sold to hospitals and other caregivers are produced in conformance with current good manufacturing practice requirements,” said Acting Assistant Attorney General for the Civil Division Joyce R. Branda. “Device manufacturers who undermine this mission will be held accountable.”
“Patients should be able to have confidence that the healthcare products they use are safe,” said U.S. Attorney Paul J. Fishman for the District of New Jersey. “Actions like the one we are taking here reinforce the law that manufacturers adhere to strict approval and production requirements. We are committed to stopping those who don’t.”
The complaint alleges that FDA inspections at Pharmaceutical Innovations’ Newark, New Jersey, facility have identified numerous and repeated deviations from current good manufacturing practices, including that the company has failed to show that it: validated its dry heat sterilization and dry heat treatment processes; routinely monitors its water systems to ensure that the water is suitable for manufacturing medical devices and routinely sanitizes the tubing and connections of its water systems to ensure objectionable microorganisms do not reside in the inner piping surface. The complaint further alleges that Pharmaceutical Innovations has not sought FDA approval or clearance for the new ultrasound gels it has brought into the market. As a result, according to the complaint, the defendants’ products are adulterated and misbranded devices under the FDCA.
The complaint alleges that, in February 2012, a Michigan hospital reported that it had traced infections among 16 surgical patients to a specific gel made by Pharmaceutical Innovations. However, the company failed to submit a medical device report to the FDA after becoming aware of these infections as required by law. FDA testing on samples of that gel identified bacterial contamination. The relevant lots of Pharmaceutical Innovations’ ultrasound gel were seized by the U.S. Marshals Service, following a seizure lawsuit filed by the United States.
The complaint alleges that, despite numerous warnings from FDA, the defendants have failed to bring their operations into compliance with the law. The Justice Department will seek a permanent injunction requiring the defendants to cease manufacturing, processing, packing, labeling, holding and distributing devices until they comply with the FDCA and applicable FDA regulations.
The FDA referred this matter to the Justice Department. The Consumer Protection Branch of the Civil Division filed this case on behalf of the United States.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Justice Department Files Suit Against New Jersey Company for Adulterated and Misbranded Medical DevicesRead the Press Release
WASHINGTON – The Justice Department, on behalf of the Food and Drug Administration (FDA), has filed suit in the U.S. District Court for the District of New Jersey against Pharmaceutical Innovations Inc. and its president Gilbert Buchalter, New Jersey U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General Joyce R. Branda for the department’s Civil Division, announced today.
According to the complaint, the defendants violated the Federal Food, Drug and Cosmetic Act (FDCA) by manufacturing and distributing adulterated and misbranded medical devices. The devices at issue are gels that hospitals and other caregivers use to take ultrasound scans. Under the FDCA, a device manufacturer must: comply with current good manufacturing practice requirements; obtain required premarket approval or clearance before distributing its devices and notify the FDA and follow-up on any reports of serious injuries or deaths associated with its devices. The government alleges that the company violated each of these requirements.
“Patients should be able to have confidence that the healthcare products they use are safe,” U.S. Attorney Fishman said. “Actions like the one we are taking here reinforce the law that manufacturers adhere to strict approval and production requirements. We are committed to stopping those who don’t.”
“Today’s action furthers the FDA’s mission of ensuring that all medical devices sold to hospitals and other caregivers are produced in conformance with current good manufacturing practice requirements,” said Acting Assistant Attorney General Branda. “Device manufacturers who undermine this mission will be held accountable.” (DRAFT)
The complaint alleges that FDA inspections at Pharmaceutical Innovations’ Newark, New Jersey, facility have identified numerous and repeated deviations from current good manufacturing practices, including that the company has failed to show that it: validated its dry heat sterilization and dry heat treatment processes; routinely monitors its water systems to ensure that the water is suitable for manufacturing medical devices and routinely sanitizes the tubing and connections of its water systems to ensure objectionable microorganisms do not reside in the inner piping surface. The complaint further alleges that Pharmaceutical Innovations has not sought FDA approval or clearance for the new ultrasound gels it has brought into the market. As a result, according to the complaint, the defendants’ products are adulterated and misbranded devices under the FDCA.
According to the complaint, in February 2012, a Michigan hospital reported that it had traced infections among 16 surgical patients to a specific gel made by Pharmaceutical Innovations. However, the company failed to submit a medical device report to the FDA after becoming aware of these infections as required by law. FDA testing on samples of that gel identified bacterial contamination, and after the United States filed a seizure lawsuit, relevant lots of Pharmaceutical Innovations’ ultrasound gel were seized by the U.S. Marshals Service.
The complaint alleges that, despite numerous warnings from FDA, the defendants have failed to bring their operations into compliance with the law. The Justice Department will seek a permanent injunction requiring the defendants to cease manufacturing, processing, packing, labeling, holding and distributing devices until they comply with the FDCA and applicable FDA regulations.
The FDA referred this matter to the Justice Department. The Consumer Protection Branch of the Civil Division and the U.S. Attorney’s Office for the District of New Jersey filed this case on behalf of the United States.
The government is represented by Trial Attorney Daniel Crane-Hirsch of the Consumer Protection Branch, Assistant U.S. Attorney Lucy Muzzy of the U.S. Attorney's Office's Health Care and Government Fraud Unit, and Associate Chief Counsel Julie Dohm of FDA's Office of Chief Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
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Pharmaceutical Innovations Complaint
Jury Convicts Former Lafayette Postal Service Employee for Stealing Gift Cards from U.S. MailRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that, after a three-day trial, a federal jury found a Lafayette woman guilty of taking gift cards from U.S. mail.
After deliberating for a little over an hour, a federal jury found Crystal S. Boutte, 41, of Lafayette, guilty on two counts of theft of mail. United States District Judge Richard T. Haik presided over the trial that ended on Wednesday. In December of 2012, Boutte stole four Wal-Mart gift cards from the mail while working for the U.S. Postal Service. One gift card was worth $200, and the other three were worth $25 each. The theft was discovered after the recipients of the mail reported the cards missing.
“Ms. Boutte was a postal employee who took advantage of and abused her position,” Finley stated. “Private citizens should not have to worry about their mail being stolen by those entrusted to deliver it.”
“The American public expects to receive their letters and parcels on time and intact,” said Maximo Eamiguel, Office of Inspector General, Special Agent in Charge, Southern Area Field Office. “Citizens have an expectation that their mail will not be stolen, rifled, read or obstructed while in the possession of Postal Service employees. That expectation and trust extends to every one of the millions of mail pieces that travel across the country daily. Anyone who betrays that trust will be thoroughly investigated by OIG special agents. The Postal Service has a long and proud tradition of protecting the ‘sanctity of the seal’ of First-Class Mail. The overwhelming majority of postal employees perpetuate this tradition every day in their efforts to move the nation’s mail to its proper destination. Unfortunately, when a few postal employees abuse the public trust placed in them, it is the job of OIG special agents to identify them and work in cooperation with the U.S. Attorney’s Office to ensure they are prosecuted in the criminal courts.”
Boutte faces five years in prison, three years of supervised release, restitution, and a $250,000 fine for each count. The U.S. Postal Service, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.
Jasper County Woman Sentenced to Fourteen Years in Prison on Methamphetamine ChargesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Rebecca A. Moore, 37, of Yale, (Jasper County) Illinois, was sentenced to 168 months (14 years) in federal prison, to be followed by five years of supervised release following her imprisonment, and fined $400. Moore had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that Moore, Ashley M. Attaway, 29, of Yale, Illinois, David C. Halterman, 44, of Yale, Illinois, and Ricky Lee Roberts, II, 39, of Franklin, Indiana, conspired to knowingly and intentionally distribute methamphetamine. Count 3 charged that from April 2013 to October 12, 2013, in Jasper County, Moore did knowingly maintain a residence located in Yale, Illinois, for the purpose of using and distributing methamphetamine.
Co-defendant Attaway was previously sentenced to 188 months in prison. Co-defendants Halterman and Roberts are set for trial on November 3, 2014. As to them, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Jasper County Sheriff’s Department, the Crawford County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, and Firearms. The Jasper County State’s Attorney’s Office has assisted throughout the investigation in this case.
The case is being handled by Assistant United States Attorney George Norwood.
Ingham County Child Sex Trafficking Ring BustedRead the Press Release
GRAND RAPIDS, MICHIGAN – The U.S. Attorney for the Western District of Michigan, the Federal Bureau of Investigation, the Ingham County Prosecutor’s Office, the Ingham County Sheriff’s Office, and the Lansing Police Department announced today that three people have been charged and arrested with operating a child sex trafficking ring in Lansing, Michigan. A federal grand jury for the Western District of Michigan indicted Christopher T. Bryant, 24, of Detroit on five counts, including sex trafficking of minors; sex trafficking by force, fraud, or coercion; and interstate transportation for the purposes of prostitution. The Ingham County Prosecutor’s Office charged Mariah Haughton, 17, and Jonathan Purnell, 27, both of Lansing, for sex trafficking girls in the same ring.
The federal indictment charges Bryant with sex trafficking three minors – including one by force, fraud, or coercion – in Ingham County and elsewhere from March through July 2014. It also charges Bryant with transporting another person from Michigan to Arizona in August 2012 for prostitution, and then sex trafficking the same person by force, fraud, or coercion in early September of that year.
The Ingham County Prosecutor’s Office charged Haughton on multiple counts, including human trafficking by recruiting minors for child sexually abusive activity. Although Haughton is only 17 years old, a federal search warrant indicates that Haughton was active in recruiting and trafficking girls for commercial sex. Purnell was arrested today in Ingham County on similar charges.
The FBI alleges in a federal search warrant application that Bryant, Haughton, and Purnell recruited minors and advertised them online to solicit sex for money. The search warrant alleges that the ring operated out of an apartment and various motels around Lansing. Allegedly, Bryant, Haughton, and Purnell provided the minors with alcohol and drugs and profited from the enterprise.
This is the second child sex trafficking case to be charged federally in the Western District of Michigan. The first federal case in this district was against Eddie Allen Jackson in April 2014 for sex trafficking three girls ages 14, 15, and 16 in Grand Rapids. Jackson was sentenced earlier this month to 30 years in federal prison.
“The crime of child sex trafficking is not new, but it is growing in part because the internet makes it easy to advertise sex anonymously. People selling children into commercial sex feel as though they cannot be found or traced, which is not the case. Awareness of the issue of human trafficking is spreading rapidly throughout West Michigan, and I am pleased local, state, and federal authorities are working together effectively to locate and stop alleged sex traffickers,” said U.S. Attorney Patrick A. Miles, Jr.
“Trafficking children for sexual exploitation is a horrific crime, and one which we are dedicated to fighting against relentlessly,” said Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The FBI, in concert with its local, state and federal partners, remains steadfast in its resolve to protect the innocence of our children. Offenders like the perpetrators in this investigation must know that law enforcement will stop at nothing, and use every resource available, to fight for the interests of our young people and bring justice to bear upon those seeking to exploit their vulnerabilities."
“I’m proud of the men and women of the Lansing Police Department who were a part of this extensive investigation. Working and collaborating on investigating crime with other jurisdictions, from Federal to the State level, has always been a success,” said Lansing Police Chief Mike Yankowski.
“This insidious crime has been made much easier due to the internet. I am proud to say that our investigators – City, County, and Federal – put together a great team that was able to meet the challenge and make the appropriate arrests. We all need to continue vigilance, however, especially parents need to monitor their children’s internet use and report suspicious activity,” said Ingham County Sheriff Gene Wriggelsworth.
The federal case, which is part of Project Safe Childhood – a nationwide initiative designed to protect children from exploitation and abuse – is being prosecuted by Assistant United States Attorneys Tessa K. Hessmiller and Russell A. Kavalhuna. The U.S. Attorney's Office; county prosecutor's offices; the Internet Crimes Against Children task force (ICAC); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate communities about the dangers of online child exploitation and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law..
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Immigration Official Sentenced to 30 Months in Prison for Soliciting Bribes to Approve Applications for Citizenship and 'Green Card'Read the Press Release
SANTA ANA, California – An immigration service officer with U.S. Citizenship and Immigration Services (USCIS) who took thousands of dollars in bribes from immigrants who were seeking either citizenship or lawful permanent resident status in the United States was sentenced today to 30 months in federal prison.
Mai Nhu Nguyen, 48, of Irvine, was sentenced by United States District Judge Josephine L. Staton.
From 2011 through June 2013, Nguyen solicited and took bribes from Vietnamese immigrants. In one case, Nguyen took $1,000 from an immigrant seeking a “Green Card” and 200 egg rolls from an immigrant seeking citizenship.
Nguyen, who worked at USCIS’s Santa Ana office for approximately eight years and is now on leave, was an immigration service officer with the power to approve or deny applications for immigration benefits that are submitted by immigrants.
The case against Nguyen is the product of an investigation by the Federal Bureau of Investigation and the Department of Homeland Security’s Office of Inspector General.
Release No. 14-134
Honduran Man, Jose Hernandez-hernandez, Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE HERNANDEZ-HERNANDEZ, age 35, a citizen of Honduras, was charged today in a one-count indictment with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).
According to the indictment, HERNANDEZ-HERNANDEZ reentered the United States after having been previously removed on July 26, 2013.
If convicted, HERNANDEZ-HERNANDEZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and Removal Operations in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
(Download Indictment )
Honduran Man, Alfredo Varela-hernandez, Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALFREDO VARELA-HERNANDEZ, age 35, a citizen of Honduras who recently resided in Kenner, Louisiana, was charged yesterday in a one-count bill of information with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).
According to the bill of information, VARELA-HERNANDEZ reentered the United States after having been previously removed on two occasions.
If convicted, VARELA-HERNANDEZ faces a maximum term of imprisonment of two years, a fine of up to $250,000, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Polite reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Custom Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Irene Gonzàlez is in charge of the prosecution.
(Download Bill of Information )
German Man Sentenced to 189 Months in Prison for Child Sex Tourism OffenseRead the Press Release
TUCSON, Ariz. – Today, Karsten Puschmann, 51, of Kiel, Germany, was sentenced by U.S. District Judge Jennifer G. Zipps to serve 189 months in prison. Puschmann pleaded guilty on Jan. 22, 2014, of traveling with intent to engage in illicit sexual conductPuschmann’s term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender.
An investigation revealed that Puschmann, through the use of the internet, negotiated and planned a trip to Mexico in order to engage in commercial sex acts with six different children between the ages of five and eleven years old. He traveled from Europe to Tucson, Ariz., for this purpose and was arrested upon his arrival in Tucson.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Under this program, federal, state, and local law enforcement resources are combined to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by Homeland Security Investigations, Nogales. The prosecution was handled by Carmen F. Corbin and Carin C. Duryee, District of Arizona, Tucson.
CASE NUMBER: CR-13-01312-TUC-JGZ
RELEASE NUMBER: 2014-057_ PuschmannFor 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.Former Sears Dealer Sentenced in Federal Court for FraudRead the Press Release
PROVIDENCE, R.I. – Joseph F. Kilty, 53, of Wakefield, R.I., a former authorized dealer of a Sears Hometown and Outlet, Inc. store in Middletown, R.I., was sentenced today in U.S. District Court in Providence to 3 years of probation, the first six months to be served in home confinement, for defrauding Sears of more than $154,000, announced United States Attorney Peter F. Neronha; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Kilty to perform 300 hours of community service and to pay restitution to Sears in the amount of $139,989. Sears previously withheld a commission check due to Kilty in the amount of $14,131. Kilty pleaded guilty on June 5, 2014, to one count of mail fraud.
At the time of his guilty plea, Kilty admitted to the court that between January 2012 through June 2013, he failed to deposit $154,120 in cash receipts into a bank account he was required by Sears to establish and into which all store receipts were to have been deposited. Kilty admitted that he deposited the receipts into other personal bank accounts which he controlled.
Kilty admitted to the court that as part of the scheme, he created false documents to make it appear that the deposits had been made, including 47 fraudulent deposit slips and several fake bank reconciliation forms.
Additionally, Kilty admitted to the court that he created two counterfeit bank checks in the amounts of $99,000 and $28,319.75 made payable to Sears Hometown and Outlet, Inc., and that he provided the checks to a Sears district manager.
The matter was investigated by the U.S. Postal Inspection Service and the FBI.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Former New York State Assemblywoman Sentenced in Manhattan Federal Court for Citizenship and Bankruptcy Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that former New York State Assemblywoman GABRIELA ROSA was sentenced in Manhattan federal court to a year and a day in prison, after having pled guilty to two federal felony charges arising out of her efforts to obtain United States citizenship through fraud and fraudulently concealing assets and income from a federal bankruptcy court. ROSA was sentenced today before United States District Judge Denise L. Cote. ROSA previously pled guilty pursuant to a plea agreement with the United States Attorney’s Office that required, among other things, that ROSA resign from the Assembly upon entry of her plea.
Manhattan U.S. Attorney Preet Bharara said: “Gabriela Rosa only became eligible to run for the New York State Assembly as a result of a years-long immigration fraud. She also defrauded a federal bankruptcy court and her creditors for her own financial gain. Now yet another state elected official will have to answer for her crimes with time in a federal prison.”
According to the Information, prior court filings, and statements made in Court:
The Marriage and Naturalization Fraud Scheme
The New York State Constitution states that only United States citizens may serve as members of the New York State Legislature. In November 2012, ROSA was elected to the New York State Legislature as an Assemblywoman for Assembly District 72 in Manhattan.
ROSA is a citizen of the Dominican Republic and had no citizenship status in the United States until 2005. In December 2005, ROSA was naturalized as a United States citizen as a result of a scheme to obtain legal residency and ultimately citizenship through a sham marriage. ROSA paid a United States citizen (“Spouse-1”) approximately $8,000 to enter into a sham marriage with her while she maintained a relationship with another individual who had been convicted of federal narcotics trafficking charges, and who later became her husband (“Spouse-2”). In numerous submissions and statements to immigration authorities made under penalty of perjury between 1996 and 2005, ROSA falsely represented to immigration authorities that she had entered into a bona fide marriage with Spouse-1, and that she had never given false or misleading information to a U.S. immigration official while applying for immigration benefits.
The Bankruptcy Fraud Scheme
In September 2009 ROSA filed a voluntary petition for bankruptcy, under Chapter 7 of the United States Bankruptcy Code, in the United States Bankruptcy Court for the Southern District of New York (the “Petition”). Through the Petition, ROSA sought to liquidate over $30,000 in debt that she had accumulated on, among other things, credit card charges and personal loans. In the Petition, which ROSA signed under penalty of perjury, and in subsequent documents submitted in support of the Petition, which were also signed under penalty of perjury, ROSA knowingly and willfully made several false declarations and statements. Among other things, ROSA fraudulently omitted her ownership of a cooperative apartment in Manhattan (the “Apartment”) from the Petition, which required her to list all real or personal property in which she had any ownership interest. ROSA, who worked at the time as a legislative assistant in the New York State Legislature, also failed to list outside income she earned as a political consultant, income earned by Spouse-2 in the Petition and supporting documents, and $25,000 in cash that she had deposited into her bank account months before filing the Petition.
In addition to the prison term of a year and a day, Judge Cote sentenced ROSA to three years’ supervised release, and ordered her to forfeit the proceeds of her bankruptcy fraud and repay creditors whom she defrauded.
Mr. Bharara praised the outstanding investigative work of the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Howard S. Master and Jason Masimore are in charge of the investigation.
U.S. v. Gabriela Rosa Information
Former Lubbock Resident Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Jeremy Daniel Labrec, 24, formerly of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 120 months in federal prison following his guilty plea in June 2014 to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Labrec has been in custody in Lubbock since his transfer from FCI Otisville, New York, where he had been serving a 330-month sentence imposed in relation to a federal child sexual exploitation conviction out of Indiana. Sixty months of the new sentence will be served consecutively to his Indiana sentence, and 60 months will be served concurrently with that sentence. Labrec was also ordered to pay $150,000 in restitution to a victim of his Lubbock offense.
According to documents filed in the case, in 2011, while living in Lubbock, Labrec saved an image of child pornography that he had earlier produced, on a hard drive located in his laptop computer, and he possessed the hard drive, knowing it contained child pornography. One image was a sexually explicit photo of a minor child.
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 and the Lubbock Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted the case.
Former Jeweler Faces Federal Money Laundering Charges for Pawning Diamonds Falsely Reported Stolen in 2004Read the Press Release
BIRMINGHAM -- Federal prosecutors today charged a Vestavia Hills man with money laundering for pawning a 3-carat diamond in 2013 that was among a cache of jewels he collected $2.6 million in insurance money on in 2004 after reporting them stolen in a Mountain Brook Jewelry store robbery.
U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr., U.S. Secret Service Special Agent in Charge Craig Caldwell, Vestavia Hills Police Chief Dan Rary and Mountain Brook Police Chief Ted Cook announced the charges against JOSEPH HAROLD GANDY.
The U.S. Attorney's Office charged Gandy, 64, with one count of money laundering for pawning property worth more than $10,000 that he obtained through a criminal act, wire fraud, which he committed when he submitted an insurance claim on diamonds that had not been stolen. Prosecutors also charged Gandy with one count of being a convicted felon in possession of firearms for the 99 weapons seized at his Vestavia Hills home in November 2013. Gandy is prohibited from possessing weapons because of a 1989 federal mail fraud conviction.
The FBI recovered jewelry during the search of Gandy's home and, as part of a plea agreement with the government, he also turned over a portion of the approximate $1.5 million worth of diamonds and jewelry he falsely reported stolen in 2004. Among those jewels is a rare Blue Diamond worth at least $620,000.
"This defendant revealed decade-old criminal acts, and committed a new crime when he brought forth valuable, but fraudulently obtained diamonds to pawn," Vance said. "Thanks to the committed and cooperative efforts of the Mountain Brook and Vestavia Hills police departments, the FBI and the Secret Service, Mr. Gandy avoided, but did not escape justice."
"This case illustrates the great cooperation among law enforcement at all levels," Schwein said. "I want to extend my personal appreciation to the Vestavia Hills and Mountain Brook police departments, the U.S. Secret Service, and my agents for their outstanding work. It was their diligent investigative efforts that brought this case to where it is today," he said.
"I commend the cooperative between the FBI and our investigators," Rary said. "Interagency cooperation is essential in today's environment, especially in complex investigations such as these."
Prosecutors filed the charges and the plea agreement with Gandy in U.S. District Court.
According to the plea agreement, Gandy's crime unfolded as follows:
Gandy was an owner and the operator of Denman-Crosby Jewelry Store in Mountain Brook in 2004. In December of that year, he reported that two unidentified men robbed the store at gunpoint. At the time, Denman-Crosby was promoting a loose diamond sale for Christmas. It had many diamonds and other jewelry in on consignment from jewelers in New York and elsewhere. The store carried a $2.6 million insurance policy. Gandy had increased the coverage amount with XL Specialty Insurance Company a few weeks before the robbery.
In January and March of 2005, Gandy used interstate wire transmissions to submit insurance claims from the robbery. He included a detailed inventory of jewelry worth about $2.8 million that he reported stolen. XL Specialty paid the policy's limit of $2.6 million.
In July 2013, Gandy began sending a friend to jewelry stores in Jefferson County to pawn diamonds he had reported stolen in 2004. The first effort ended when the jeweler requested documentation on a 1.59-carat diamond, mounted in a platinum setting, and attempted to examine the stone closely. The concern was that the diamond might bear a laser inscription useful in tracing its history. Subsequently, Gandy examined 10 to 12 diamonds under a microscope and selected stones that bore no inscription.
On July 26, 2013, Gandy sent his friend to a Birmingham jewelry store to pawn a 3.01-carat emerald-cut diamond he said was worth about $43,000. Gandy said he wanted at least $15,000 for the stone. The store accepted the diamond in exchange for a $12,000 loan. The diamond was one Gandy reported stolen in the Denman-Crosby robbery. He gave his friend $2,000 for making the transaction.
Between August and November of 2013, Gandy's friend pawned two more diamonds: a 3.45-carat cushion-cut diamond for $8,000; and a 2.16-carat round diamond for $2,000. Both stones were on the stolen inventory list Gandy provided the insurance company in 2005. Gandy gave his friend $1,880 after receiving the $8,000 for the 3.45-carat diamond.
Gandy's plea agreement is a "binding plea agreement" in which the government and Gandy stipulate that a 45-month prison sentence is appropriate. If the court rejects the plea agreement, either party may declare it null and void.
As part of the agreement, the government would recommend Gandy be required to pay $20,000 in restitution to the jewelers where he pawned the diamonds, and that he forfeit to the U.S. government all the jewels seized and recovered in the case. Vestavia Hills Police seized the 99 weapons at Gandy's house and has state charges pending against him. The city police are handling forfeiture of the firearms.
The government acknowledges in the plea agreement that it has no evidence or information to suggest Gandy is violent or has been engaged in previous violent behavior. The agreement notes that Gandy, through his lawyer, related that, except for older firearms he bought before his 1989 conviction or that were passed down from his father and grandfather, the firearms at his house belonged to his son who died in 2004.
The FBI, Secret Service, Vestavia Hills and Mountain Brook police departments investigated the case. Assistant U.S. Attorney George A. Martin Jr. is prosecuting the case
Former Investment Adviser Sentenced to 3½ Years in Prison for $3 Million Loss to Victims in Financing Fraud SchemeRead the Press Release
CHICAGO ― A former investment adviser was sentenced to 3½ years in federal prison for fraudulently obtaining approximately $4 million from more than 30 victims and misusing the money to make Ponzi-type payments to investors, pay personal expenses, and personal gambling, resulting in a loss of just over $3 million. The defendant, OSCAR DONALD OVERBEY, JR., was a financial adviser at two north suburban locations for Ameriprise Financial, Inc., who engaged in a fraudulent financing scheme between approximately 1996 and 2007.
Overbey, 47, of Country Club Hills and formerly of Evanston, was ordered today to pay $3,090,833 in restitution by U.S. District Judge Gary S. Feinerman, who imposed the sentence yesterday in Federal Court. Overbey was ordered to begin serving his 42-month sentence on Jan. 12, 2015. Following his sentence, the judge ordered Overbey to be placed on supervised release for three years and prohibited him from gambling or visiting casinos or racetracks during that time. Overbey was indicted in 2012 and pleaded guilty to wire fraud last February.
According to court documents, among Overbey’s victims were two university workers and their two daughters. He convinced them to invest $150,000 in a purported short-term, government-backed investment paying 10 percent interest. The victims obtained funds from refinancing their home and from a home equity line of credit to make the investment. Instead of investing the funds, Overbey misappropriated the entire amount to pay personal expenses and to make more than 10 Ponzi-type payments to other victims.
“The victims placed their trust in [Overbey], but never had a chance. [Overbey] abused that trust and misused his education and skills as an investment advisor to benefit himself and to keep his scheme going,” Assistant U.S. Attorney Edward Kohler argued at sentencing.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Illinois Securities Department cooperated with the investigation.