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19 November 2014
Employee of Check-Cashing Company Pleads Guilty to Involvement in Identity Theft SchemeRead the Press Release
A Georgia woman pleaded guilty today to one count of conspiracy to commit wire fraud for her involvement in a stolen identity tax refund fraud (SIRF) scheme, Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced.
Lashelia Alexander worked for a check cashing business in a Columbus, Georgia, Walmart, according to court documents. In January 2014, Alexander was approached by several co-conspirators about cashing fraudulent tax refund checks issued in the names of third parties and in return, Alexander would receive a portion of the refunds. Alexander’s co-conspirators electronically filed fraudulent and unauthorized federal income tax returns for 2013 using the personal identifying information of numerous identity theft victims. Alexander’s co-conspirators printed out the fraudulent tax refund checks using check stock provided by a financial institution. Alexander cashed more than $100,000 in fraudulently obtained third-party refund checks containing forged endorsements.
Alexander’s sentencing date has not yet been scheduled. She faces a statutory maximum sentence of 20 years in prison and a maximum fine of $250,000 for the wire fraud conspiracy.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation. Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Elizabeth City Drug Dealer Sentenced in Federal CourtRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court, United States District Judge Terrence W. Boyle sentenced Lamont Nicholas Riddick , 37, of Elizabeth City, NC to 150 months’ imprisonment, followed by five years of supervised release. RIDDICK was also ordered to pay $1,900 in restitution to the Pasquotank County Sheriff’s Office.
Riddick was named in a Criminal Indictment filed on April 8, 2014 charging him with one count of conspiracy to distribute and possess with the intent to distribute 500 grams of cocaine and 28 grams of cocaine base (crack) from September, 2012, until May 2, 2013; and four counts of distribution of cocaine base (crack) on separate occasions from February through May of 2013. On August 11, 2014, Riddick pled guilty to the conspiracy charge alleged in Count One.
According to the investigation, officers with the Pasquotank County Sheriff’s Office and Elizabeth City Police Department utilized a confidential informant to make controlled purchases of over 34 grams of cocaine base (crack) from RIDDICK during a time period spanning from February to May of 2013. Investigation revealed that upon being released from prison on July 16, 2012, after serving approximately 10 years as a habitual felon for Possession With Intent to Manufacture, Sell, and Deliver a Schedule I Controlled Substance, RIDDICK began distributing cocaine and cocaine base (crack) around the Elizabeth City area in September, 2012. RIDDICK was involved in the distribution of approximately 34.93 grams of cocaine base (crack) and over 2.1 kilograms of cocaine during the time period of the conspiracy.
Investigation of this case was conducted by the Elizabeth City Police Department and Pasquotank County Sheriff’s Office. Special Assistant United States Attorney Augustus Willis represented the government. Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. District Attorney Scott Thomas has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Wills’ position is funded through a grant provided by the Governor’s Crime Commission.
Eleven Individuals Charged for Their Role in Medicare and Medicaid Fraud Scheme Executed in Florida, Nicaragua, and the Dominican RepublicRead the Press Release
Eight residents of Miami-Dade County and three residents of Nicaragua have been charged for their alleged participation in a $25.2 million Medicare, Medicaid, and wire fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Pam Bondi, Florida Attorney General, Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Wendy A. Bashnan, Special Agent in Charge, U.S. Department of State, Diplomatic Security Service (DSS), made the announcement.
On October 30, 2014, a federal grand jury in Miami returned a 36-count indictment charging Pedro Hernandez, a/k/a “Peter Hernandez,” 51, of Miramar, Freddy Zeron, 52, of Miami and Nicaragua, Erendira V. Delgado, a/k/a “Eren Delgado,” 31, of Miami, Edgardo Rodriguez, 47, of Homestead and Nicaragua, Rodney Montoya, 36, of Miami, Santiago Bernabe Montoya, 72, of Miami, Jose Eloy Sanchez, a/k/a “Jose Eloy Sanchez Arguello,” 70, of Coral Gables and Nicaragua, Abram J. Rodriguez, a/k/a “Abe Rodriguez,” 31, of Miami, Mirna L Blanco, 49, of Hialeah, Deborah Smith, 53, of Hialeah, and Augustin Abaga, 48, of Sunny Isles, for allegedly participating in a scheme to defraud Medicare and Medicaid by submitting false and fraudulent enrollment applications which claimed that beneficiaries resided in Florida when, in fact, they resided in Nicaragua and the Dominican Republic. Eight individuals have been arrested, Freddy Zeron, Edgardo Rodriguez and Jose Eloy Sanchez remain at large.
In addition to the indictment, we are pursuing a parallel civil action to freeze the assets of various defendants for approximately $10 million in fraudulent proceeds.
The defendants are charged with conspiracy to commit health care fraud and wire fraud, substantive counts of health care fraud, conspiracy to defraud the United States and make false statements related to health care matters and substantive counts of making false statements related to health care matters.
As alleged in the indictment:
FHCP was authorized by the Centers for Medicare and Medicaid Services to offer Medicare Advantage HMO plans to Medicare beneficiaries residing in Miami-Dade County, among other counties in Florida. All defendants recruited individuals who resided in Nicaragua and the Dominican Republic to enroll in Medicare Advantage plans and Florida Medicaid by falsely and fraudulently representing in enrollment applications that they resided in Florida. In these enrollment applications, the defendants represented that the foreign residents resided in Florida by using non-residential addresses, the addresses belonging to friends and relatives of these foreign residents, and addresses associated with the defendants. The defendants induced the individuals residing in Nicaragua and the Dominican Republic to enroll in Medicare Advantage plans, including FHCP plans, by making false and fraudulent representations, including that Medicare benefits were available in Nicaragua and the Dominican Republic. As a result of the submission of these false and fraudulent enrollment applications, the defendants caused the Center for Medicare and Medicaid services to make monthly capitation payments to FHCP and other Medicare Advantage plans. The defendants also caused the Florida Medicaid program to pay Medicare premiums and deductibles for many beneficiaries who did not reside in Florida, a benefit for which non-Florida residents would not be entitled.
Additionally, the defendants caused physicians associated with Pharmovisa Inc., Axis Le Professional Medical Group, Inc., and Rodney Montoya Corp., where defendant Santiago B. Montoya was employed as a physician, each located in Miami, to be designated as the primary care physicians for the beneficiaries residing in Nicaragua and the Dominican Republic. The defendants paid for the beneficiaries to travel from the Dominican Republic and Nicaragua so that they could be seen by a U.S. licensed physician. The physician would then provide diagnoses which were used to calculate the amount of money FHCP and other Medicare Advantage plans would receive from Medicare. As a result of these false and fraudulent enrollment applications, the defendants obtained approximately $25,247,413 from Medicare and Florida Medicaid.
According to the indictment, Hernandez was the chief operating officer of FHCP until May 8, 2013, Abram Rodriguez was the marketing director until on or about April 21, 2014. Smith and Abaga were insurance agents employed by FHCP during the time of the scheme was ongoing. Blanco was employed by FHCP, as well as, Axis Le and Rodney Montoya Corp.
“Health care fraud is a devastating crime that threatens the strength and integrity of our health care system,” said U.S. Attorney Ferrer. “We are dedicated to protecting Medicare from fraud and abuse to ensure that beneficiaries of federal health care programs receive appropriate medical care. The charges announced today demonstrate that law enforcement in Miami will continue to fight the battle against health care fraud locally and across our borders.”
Florida Attorney General Pam Bondi stated, “This sophisticated $25 million Medicare and Medicaid fraud scheme that claimed that residents of Nicaragua and the Dominican Republic resided in Florida essentially stole from taxpayers. We will continue to partner with the Office of the United States Attorney and other federal agencies to investigate and prosecute those who defraud our Medicaid program.”
“Providing Medicare services in foreign countries but billing as if they occurred in the United States is in-your-face fraud,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General over Florida. “But our agents have a global reach, working with our law enforcement partners to track down and charge those responsible regardless of where they are in the world.”
“Unfortunately, scams that bilk our health care system do not stop at our borders,” said George L. Piro, Special Agent in Charge, FBI Miami. “These fraudsters sought out and recruited residents of Nicaragua and the Dominican Republic to swindle U.S. taxpayer dollars from the Medicare and Medicaid programs. We are pleased to have put these unscrupulous operators out of business.”
Mr. Ferrer commended FBI, HHS-OIG, the Florida Office of the Attorney General, Medicaid Fraud Control Unit, and DSS for their investigative efforts. The case is being prosecuted by Assistant U.S. Attorney Eric E. Morales and Special Assistant United States Attorney Hagerenesh Simmons.
Mr. Ferrer also thanked U.S. Department of State, Diplomatic Security Service, Regional Security Office, at the U.S. Embassies in Managua and Santo Domingo for their assistance with this investigation.
This case, brought as part of the Medicare Fraud Strike Force, under the supervision of U.S. Attorney’s Office for the Southern District of Florida, is being prosecuted by Assistant U.S. Attorney Eric E. Morales and Special Assistant U.S. Attorney Hagernesh Simmons. The civil parallel proceeding is being handled by Assistant U.S. Attorney Franklin G. Monsour.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,650 defendants who collectively have falsely billed the Medicare program for more than $4.5 billion. In addition, the Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachment:
Indictment - Pedro Hernandez (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Eastern District of Virginia U.S. Attorney’s Office Collects over $23.6 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
ALEXANDRIA, Va. – Dana J. Boente, U.S. Attorney for the Eastern District of Virginia (EDVA), announced today that EDVA collected over $23.6 million in criminal and civil actions in Fiscal Year 2014. Of this amount, over $15.4 million was collected in criminal actions and more than $8.1 million was collected in civil actions
Additionally, EDVA worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional $8.8 million in cases pursued jointly with these offices.
Attorney General Eric Holder announced on November 19, 2014 that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“In all of our criminal and civil prosecutions, where appropriate, we strive to collect restitution for the victims of the crime, be that private citizens or the federal government” said U.S. Attorney Boente. “Asset forfeiture, fines, restitution and other means of collections are the Justice Department’s most effective and efficient tools in restoring money to victims of crime and their families.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Eastern District of Tennessee U.S. Attorney’s Office Collects $6,284,548.95 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
KNOXVILLE, Tenn. - U.S. Attorney William C. Killian announced today that the Eastern District of Tennessee collected $6,284,548.95 in criminal and civil actions in Fiscal Year 2014. Of this amount, $4,538,338.33 was collected in criminal actions and $1,746,210.62 was collected in civil actions.
Additionally, the Eastern District of Tennessee worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $8,984,509.29 in cases pursued jointly with these offices. Of this amount, $400.00 was collected in criminal actions and $8,984,109.29 was collected in civil actions.
Attorney General Eric Holder announced on Wednesday, Nov. 19, 2014, that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“We are proud of the amounts collected in the Eastern District of Tennessee. These collections represent either assets acquired by criminal activity or fines and penalties assessed by the court as a result of illegal activity. Our staff works hard to collect these monies which help lower the burden on the taxpayers,” said U.S. Attorney Bill Killian.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Eastern District of Tennessee, working with partner agencies and divisions, collected $6,423,352 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Eastern District of California U.S. Attorney’s Office Collects over $9 Billion in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
SACRAMENTO, Calif. — U.S. Attorney Benjamin B. Wagner announced today that the Eastern District of California collected a record amount for American taxpayers in Fiscal Year 2014, which ended September 30, 2014. The office, on its own and with other U.S. Department of Justice components, collected over $9 billion in Fiscal Year 2014. These figures reflect actual amounts collected, not judgment amounts.
The office collected $21,303,839 in criminal and civil actions it handled alone in the fiscal year. Of this amount, $8,183,129 was collected in criminal actions, including both fines and restitution for victims, and $13,120,710 was collected in civil actions. Additionally, the Eastern District worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $8,979,244,434 in cases pursued jointly with those offices. Almost this entire amount is attributable to recoveries resulting from the settlement of the JPMorgan Chase case, including a $2 billion penalty directly attributable to this office’s investigation of wrongdoing relating to the sale of residential mortgage-backed securities by JPMorgan Chase. The total settlement was announced last November.
For the nation as a whole, Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in Fiscal Year 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“This year was a record year for collections by this office, and I congratulate my team for the hard work reflected in these numbers” said U.S. Attorney Wagner. “We will remain dedicated to protecting the public, vigorously pursuing funds that rightfully belong to U.S. taxpayers, and seeking compensation for victims of federal crimes.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Included in the recovery figures, is a $9.9 million settlement with Medtronic Inc. of Fridley, Minnesota, to resolve allegations under the False Claims Act that the company used various types of payments to induce physicians to implant pacemakers and defibrillators manufactured and sold by Medtronic. The settlement was the result of a coordinated effort among the Department of Justice’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Eastern District of California; and the Office of Inspector General of the U.S. Department of Health and Human Services.
Additionally, the U.S. Attorney’s office in the Eastern District of California, working with partner agencies and divisions, collected $25,637,920 in asset forfeiture actions in FY 2014. The fiscal year was also a record for judicial asset forfeitures in the Eastern District of California. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
In one asset forfeiture that arose in a criminal case this past May, this office recovered more than $6.6 million as part of the forfeiture agreement in the U.S. v. Victor Anthony Nottoli case. Nottoli pleaded guilty to a conspiracy to distribute at least 24 tons of misbranded smokable synthetic cannabinoids in retail outlets throughout the U.S. and from his six smoke shops in Fresno and Bakersfield.East Longmeadow Woman Charged with Embezzling Funds from Retirement CommunityRead the Press Release
BOSTON – A former East Longmeadow woman was arrested today in Virginia after being charged in U.S. District Court in Springfield with embezzling funds from a retirement community.
Alice Lacroix, 53, was indicted on eight counts of wire fraud, eight counts of money laundering, and two counts of aiding and abetting the filing of false tax returns.
The indictment alleges that Lacroix, who was the manager of Bluebird Estates, a retirement living community in East Longmeadow, embezzled funds from her employer by stealing rent checks paid by tenants, as well as other checks and property belonging to her employer. It is alleged that Lacroix established a bank account in the name of Bluebird Estates into which she deposited the embezzled funds and then engaged in financial transactions designed to disguise the proceeds of the fraudulent scheme. Lacroix deceived her employer through emails that provided false information about the rent payments she took. The indictment also alleges that Lacroix aided and abetted in the filing of false income tax returns.
The maximum sentence under the wire fraud and money laundering statutes is 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and East Longmeadow Police Chief Douglas Mellis, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Alex Grant of Ortiz’s Springfield Branch Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District of Montana Collects $14.1 Million in Civil & Criminal Actions in FY 2014Read the Press Release
HELENA - U.S. Attorney Michael W. Cotter announced today that the Montana United States Attorney's Office collected $14.1 million in Fiscal Year (FY) 2014 related to criminal and civil actions and an additional $3.4 million related to criminal and civil forfeiture. In some of these cases, the U.S. Attorney's Office worked in conjunction with litigating components of the U.S. Department of Justice.
The U.S. Attorneys( Offices, along with the department(s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. Generally, these debts are judgments, either civil judgments or criminal judgments entered by the federal court. Criminal judgments consist of fines and restitution. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the department(s Crime Victims( Fund, which distributes the funds to state victim compensation and victim assistance programs.
Occasionally, assets from criminals are forfeited by court action. Forfeiture proceeds are often distributed back to local law enforcement to assist them in the protection of Montana communities or to the victims of crime. Forfeited assets include currency or bank accounts, real property and cars purchased with illegal proceeds or used to facilitate crimes, guns held by convicted felons, and computers used for child pornography. Seized property is sold and the money deposited into the government accounts used to restore money lost by crime victims.
Across the country, the United States Attorneys' offices collected $24 billion from criminal and civil actions during FY 2014, which is far more than the $2.91 billion appropriated budget of the combined 93 USAOs offices for fiscal year 2014. The U.S. Attorney's Office in Montana is credited with collecting $2.4 million in relation to criminal actions brought by the office. Approximately $11.7 million was collected related to civil matters, with over $4 million related to healthcare fraud, and $1.3 million in relation to civil environmental violations. In addition $3.4 million was collected in criminal and civil forfeiture cases.
“The efforts of this office to serve the people of Montana will continue. Reduced resources will make it more difficult to maintain the same level of service for law enforcement protection, for public safety or the protection of the public purse. But this office is committed to maintaining the highest ideals of public trust and public service despite those challenges.” --- U.S. Attorney Mike Cotter.
District of Arizona U.S. Attorney’s Office Collects $44,585,929 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
PHOENIX - U.S. Attorney John S. Leonardo announced today that the District of Arizona collected $44,585,929 in criminal and civil actions in Fiscal Year 2014. Of this amount, $4,020,746 was collected in criminal actions and $40,565,182 was collected in civil actions
Additionally, the District of Arizona worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $161,247in cases pursued jointly with these offices. Of this amount, $6,739 was collected in criminal actions and $154,507 was collected in civil actions.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“It’s been another very productive year for our District,” said U.S. Attorney John S. Leonardo. “Our people have done a great job working with our local communities and partner law enforcement agencies in our joint collection efforts. These funds are owed to victims of crime, as well as taxpayers, and we strive to be as effective as we can in collecting them.”
The U.S. Attorneys’ Offices, alongside DOJ’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Arizona, working with partner agencies and divisions, collected $10,312,162 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
RELEASE NUMBER: 2014-064_FY14 Collections
The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
For 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.District Man Sentenced to Seven Years in Prison for Broad Daylight Carjacking at Gas StationGood Samaritans Came to Victim’s Aid; Quick Police Work Led to ArrestRead the Press Release
WASHINGTON – Byron Dunn, 25, of Washington, D.C., has been sentenced to a seven-year prison term for a carjacking that took place earlier this year at a gas station in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Dunn pled guilty to a carjacking charge in September 2014, in the Superior Court of the District of Columbia. He was sentenced on Nov. 18, 2014 by the Honorable Anita Josey-Herring. Upon completion of his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, Dunn approached the victim on May 20, 2014, at about 11:15 a.m., at a gas station in the 3700 block of Minnesota Avenue NE. Dunn asked if he could take some photographs of the victim’s car, a silver 2006 Chrysler 300 with 24-inch chrome rims. The victim agreed, rolled up his windows, and went to pay for his fuel. When the victim returned and started pumping gas, Dunn stood next to him. Dunn brandished a handgun and ordered the victim to give up his keys. When the victim ran away from the gas station, Dunn gave chase, and caught up to the victim. Dunn ordered the victim back to his car, and threatened to shoot him unless he handed over the keys. Moments later, three people pulled into the station in a Chevy Suburban. One confronted Dunn while another urged the victim to drive away.
The victim managed to escape and he quickly flagged officers with the Metropolitan Police Department (MPD). Police stopped Dunn a few minutes later and recovered a loaded .45-caliber handgun. Dunn has been in custody ever since.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Clark, Victim/Witness Security Specialists Michael Hailey and Debra Cannon, and Paralegal Specialist Stephanie Gilbert. Finally he expressed appreciation for the work of Assistant U.S. Attorney Robert E. Eckert, Jr., who investigated and prosecuted the case.
14-260Defendants in ATM Skimming Ring with over 5,000 Victims Sentenced to Federal PrisonRead the Press Release
ATLANTA – Michael J. Ellis has been sentenced for stealing the bank debit card numbers and passwords of individuals in Georgia and Florida through an ATM skimming device.
“This sentencing marks the end of an ATM skimming ring that victimized over 5,000 people in Georgia and Florida,” said United States Attorney Sally Quillian Yates. “Identity theft is a growing problem that damages the good names and credit of too many innocent people, and we remain committed to combatting this insidious crime in all of its various forms.”
“The Secret Service, in conjunction with our law enforcement partners, will continue to arrest those that commit crimes that prey on unsuspecting victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “Today’s sentence should serve as a reminder that criminals will not get away with defrauding victims and ignoring the consequences of their actions.”
According to United States Attorney Yates, the charges and other information presented in court: Ellis, working with co-defendants Zira M. Bailey and Bryan S. Kees, used illegal skimming devices to steal over $130,000 from bank customers by installing the devices at SunTrust automated teller machines (ATM’s) in Georgia and Florida. When a customer used the ATM with a skimming device installed, the device electronically recorded the customer’s debit card number and a small camera in the device video recorded the ATM keyboard as the customer entered his or her password.The defendants then downloaded the information from the device to a computer. Using a magnetic stripe card reader/writer, they re-encoded gift cards with the stolen account information. They then used the altered gift cards at ATMs to drain money from the victims’ bank accounts. Over 500 victims were linked to Bailey, Ellis, and Kees from the SunTrust ATMs.
On December 28, 2012, Bulgarian Customs officials notified the United States Secret Service in Atlanta that a DHL parcel containing illegal skimming devices was being shipped to the United States. The Secret Service obtained a federal search warrant for the package and found three skimming devices. The package was addressed to a UPS Store in Atlanta, Ga. Ellis, Bailey, and another co-conspirator, WB Wohrman, were listed as authorized recipients of mail to the UPS box. In a later search of a garage controlled by Ellis, law enforcement found 250 financial transaction cards, magnetic reader/writers, false ATM overlays, laptops with ATM videos and debit card information, and a wig.
Ellis, 36, of Decatur, Ga., was sentenced by United States District Judge Orinda D. Evans to eight years and five months in federal prison and three years of supervised release, and ordered to pay $136,374.31 in restitution.
Judge Evans previously sentenced Kees, 37, of Savannah, Ga., to seven years in federal prison, and Bailey, 27, of Picayune, Miss., to five years and five months in federal prison. Kees and Bailey were also sentenced to three years each of supervised release and $136,374.31 in restitution. All three defendants pleaded guilty to conspiracy, access device fraud, and aggravated identity theft.
In a related case, Plamen Atanasov, Stoyno Filtshev, Tsvetil Iliev, Nedyalko Palazov, and WB Wohrman were charged with using ATM skimming devices at Bank of America, JP Morgan Chase, and Wells Fargo ATMs in the metro Atlanta area. These defendants stole over $380,000 from bank customers, and over 4,700 victims were linked to this related scheme. Iliev, 34, formerly of Atlanta, Ga., is currently a fugitive, having fled the United States after his indictment with the assistance of Kees and Bailey. The other four defendants pleaded guilty to conspiracy, access device fraud, and aggravated identity theft. Judge Evans sentenced those four defendants as follows:
- Atanasov, 31, of Sandy Springs, Ga., was sentenced on April 25, 2014, to seven years in prison, three years of supervised release, and $386,951.12 in restitution.
- Filtshev, 53, of Atlanta, Ga., was sentenced on April 25, 2014, to seven years and eleven months in prison, three years of supervised release, and $386,951.12 in restitution.
- Palazov, 29, of Atlanta, Ga., was sentenced on April 25, 2014, to eight years and eleven months in prison, three years of supervised release, and $386,951.12 in restitution.
- Wohrman, 37, of Buford, Ga., sentenced on April 28, 2014, to eight years and three months in prison, three years of supervised release, and $386,951.12 in restitution.
This case was investigated by Special Agents of the United States Secret Service.
Assistant United States Attorney Stephen H. McClain prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Defendant Found Guilty in Maritime Alien Smuggling ConspiracyRead the Press Release
SAN DIEGO – A federal jury yesterday convicted San Ysidro resident Sofia Martinez, 27, of alien smuggling charges after a two week trial before the Honorable William Q. Hayes.
According to evidence presented in court, Martinez conspired with others to use jet skis and panga boats to deliver numerous undocumented aliens to the United States from Mexico. Martinez hired three Mexican citizens, whom she trained and used as jet ski drivers. She partnered with co-conspirators to purchase jet skis in the United States and bring them to Mexico for use in the conspiracy.
Martinez, who lived in Tijuana at the time, coordinated with others in the United States to pick up the illegal aliens once they were dropped off at beaches in San Diego County, and deliver them to their final destinations in the United States. Martinez and her co-conspirators charged $7,000 to $10,000 per illegal alien.
Prosecutors presented evidence of numerous smuggling events at trial, including a delivery by panga boat on May 9 and 10, 2013. The boat traveled from Rosarito, Mexico and landed south of the Children’s Pool in La Jolla, California in the early morning hours of May 10. Agents, alerted by a 911 call from a security guard and phone calls intercepted under court-ordered wiretaps, found 15 illegal aliens hiding in various locations around La Jolla.
Martinez was first indicted in September 2013 for conspiring to bring illegal aliens to the United States for financial gain. Her arrest resulted from an investigation conducted by Homeland Security Investigation’s (HSI) San Ysidro Border Enforcement Security Task Force, which is comprised of HSI special agents and Border Patrol agents.
“In addition to undermining this nation’s border security, smuggling by ocean is extremely hazardous for undocumented aliens,” said United States Attorney Laura Duffy. “Martinez’s arrest and the dismantling of this alien smuggling group is the product of countless hours of work and close coordination by numerous dedicated investigators.”
“Homeland Security Investigations invested a significant amount of resources into this investigation to reach the organizers and coordinators of the maritime smuggling events plaguing our coast,” said HSI San Diego Interim Special Agent in Charge Jose Garcia. “It was only through the hard work of the entire law enforcement team, processing numerous smuggling events and analyzing countless amounts of evidence, that they were able to develop a strong case against Sofia Martinez and her co-conspirators for a successful prosecution.”
Chief Patrol Agent Paul A. Beeson of the U.S. Border Patrol’s San Diego Sector said, “Sofia Martinez was finally caught due to the dedicated work of several law enforcement agencies who diligently worked together watching our shores. Border Patrol remains dedicated to protecting the borders of the United States, including the maritime border.”
After trial, Judge Hayes revoked Martinez’s bond and immediately remanded her into custody. Sentencing is set for February 23, 2015 at 9 a.m.
DEFENDANTS Case Number: 13CR3560-WQH Sofia Martinez Age: 27 San Ysidro, California CHARGESCount 1: Title 18, United States Code, Section 371: Conspiracy to bring in illegal aliens for financial gain. Maximum Penalty five years in prison and $250,000 fine
Counts 2-4: Title 8, United States Code, Section 1324(a)(2)(B)(ii): Bringing in illegal aliens for financial gain. Maximum Penalty: Fifteen years in prison and mandatory minimum of five years.
INVESTIGATING AGENCIESHomeland Security Investigations
Border PatrolCorporate Vice President Sentenced for Healthcare Fraud SchemeRead the Press Release
ATLANTA – Daniel K. Lane, Jr. has been sentenced for conspiring to commit healthcare fraud by filing fraudulent claims with Medicare, Blue Cross Blue Shield, and other insurers.
“This healthcare fraud scheme reached all the way up to the Vice President of Compass Healthcare,” said United States Attorney Sally Quillian Yates. “While serving as Vice President and CFO, the defendant set up the business to automatically bill insurance companies for expensive medical equipment never provided to customers, and then forged prescriptions to make the claims look legitimate. Corporate executives who engage in healthcare fraud face federal prison.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Mr. Lane’s criminal conduct was driven by personal greed and today’s sentencing will not only hold him accountable for those actions but will serve as a reminder to others that the FBI and its law enforcement partners will identify, investigate, and present for prosecution those individuals involved in similar such activities.”
“Today’s sentence demonstrates that regardless of one’s position within a corporation, if you defraud Medicare you will be held accountable,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office. “Falsifying patients’ medical files in order to generate more corporate revenue at tax payers’ expense will not be tolerated and we will vigorously pursue all such cases.”
According to United States Attorney Yates, the charges and other information presented in court: Daniel K. Lane, Jr. was the Vice President and Chief Financial Officer for Compass Healthcare, Inc., a durable medical equipment business headquartered in St. Louis, Mo., with offices in Atlanta, Ga. and other cities. Compass Healthcare specializes in providing compression stockings to patients who have been diagnosed with medical conditions such as chronic venous insufficiency and edema. Doctors may prescribe compression stockings, which come in different levels of tightness, as treatment for these conditions.
Lane’s position included the responsibility for billing insurance companies for the compression stockings that Compass Healthcare provided to individuals who were covered by insurance. He fraudulently set up the company’s billing system so that in most instances it would automatically bill the insurers for the highest compression stocking, regardless of which stocking had actually been provided to the individual, in order to generate higher payments from Medicare, Blue Cross, and other insurers. As a result, Compass Healthcare routinely “upcoded” the claims it submitted to insurers for the stockings it had provided to individuals.
Lane conspired with an Office Manager for Compass Healthcare, Holly Keisker, and others, to submit these false claims and conceal the fraudulent upcoding. Also as part of the scheme, Compass Healthcare included false diagnoses on its insurance claims to ensure payment. These false claims represented that Compass Healthcare customers had been diagnosed with various medical conditions, including chronic venous insufficiency and edema, to support the claims for high compression stockings, when in fact the customers had not been diagnosed by a doctor. Instead, Compass Healthcare used “blanket” diagnosis codes that were false to support insurance claims for compression stockings provided to customers who had no medical condition. Lane, Keisker, and others conspired to forge and alter doctors’ prescriptions so that they would support the fraudulent claims that had been submitted to insurers. They altered the prescriptions to falsely reflect that a high compression stocking had been prescribed and that the patient had been diagnosed with a medical condition. In 2011, Lane submitted altered prescriptions to Blue Cross in response to an audit conducted by the insurer.
Lane, 57, of St. Louis, Mo., was sentenced by United States District Judge Willis B. Hunt, Jr. to one year and six months in federal prison and three years of supervised release, 100 hours of community service, and ordered to pay $597,304.76 in restitution. On August 27, 2014, Lane pleaded guilty to one count of conspiracy to commit healthcare fraud.
On September 19, 2013, Keisker, 62, also of St. Louis, Mo., pleaded guilty to one count of conspiracy to commit healthcare fraud. Her sentencing is scheduled for December 10, 2014, at 10 a.m., before Judge Hunt.
This case was investigated by Special Agents of the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General.
Assistant United States Attorneys Stephen H. McClain and Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
ConvergEx Group Subsidiary Sentenced for Securities Fraud SchemeRead the Press Release
A brokerage subsidiary of ConvergEx Group LLC was sentenced and ordered to pay a criminal penalty and restitution of $26 million for wire fraud and conspiracy to commit securities and wire fraud in connection with a scheme to charge clients millions of dollars in unwarranted and hidden fees.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office and Inspector in Charge Philip R. Bartlett of the U.S. Postal Inspection Service (USPIS) made the announcement.
“CGM Limited, a subsidiary of the global brokerage and trading firm ConvergEx, and certain executives and traders defrauded their clients by brazenly and repeatedly lying to them and then siphoning off millions of dollars through hidden fees,” said Assistant Attorney General Caldwell. “But they didn’t get away with it. Today’s sentence shows that the Justice Department will require financial companies to answer for taking advantage of their clients’ trust and violating the laws that protect investors in financial markets.”
“Today’s sentencing demonstrates that companies who hide earnings, fabricate transaction reports and provide clients with false details regarding their orders for the purpose of increasing their own bottom line will ultimately pay the price for their schemes,” said Assistant Director in Charge McCabe. “The FBI will continue to work with our partners to investigate complex international financial crimes and send a message that complete transparency is a requirement in the global trading market.”
“Today’s sentencing is an example of the dedicated work of law enforcement to stop fraud wherever it may be, safeguarding the investments of consumers and protecting the integrity of the financial markets,” said Inspector in Charge Bartlett.
ConvergEx Global Markets Limited (CGM Limited), a former broker-dealer registered in Bermuda, pleaded guilty on Dec. 18, 2013. Together with its parent company, ConvergEx Group, which entered into a deferred prosecution agreement on Dec. 18, 2013, CGM Limited will pay a criminal penalty of approximately $18.0 million, forfeit approximately $12.8 million, and will pay defrauded customers approximately $12.8 million in restitution. In total, CGM Limited and ConvergEx Group are paying $43.8 million in criminal penalties and restitution. U.S. District Judge Jose L. Linares in the District of New Jersey imposed the sentence.
As CGM Limited admitted when it pleaded guilty, certain ConvergEx Group broker-dealers that provided commission-based brokerage services regularly routed securities trading orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders. ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”
To hide the increased fees, traders at CGM Limited and sales traders at ConvergEx Group subsidiaries sent false transaction reports to clients with fabricated details, including the number of shares involved in a trade, the time at which a trade was executed, and the price at which shares were purchased or sold. In total, CGM Limited took approximately $12.8 million in trading profits from these clients after it had sent the false statements to them.
CGM Limited admitted that its employees engaged in other fraudulent activities involving “spread.” As one example, CGM Limited traders violated a client’s trading instructions to allow them to take spread on the client’s trades, and then an employee of another ConvergEx Group subsidiary offered the client false explanations for the trading activity.
On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, and Thomas Lekargeren, a sales trader at a different ConvergEx Group subsidiary, each pleaded guilty to conspiracy to commit securities and wire fraud.
On Aug. 6, 2014, Anthony Blumberg, the former CEO of CGM Limited, and Craig Marshall, a former trader at CGM Limited, were charged with wire fraud and conspiracy to commit securities and wire fraud. Blumberg was also charged with securities fraud. The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty
As part of the deferred prosecution agreement with ConvergEx Group, the department highlighted ConvergEx Group’s extensive cooperation, including its robust internal investigation, and as well as its extensive remediation and enhanced compliance program and internal controls.
The case was investigated by the FBI’s Washington Field Office and the Washington, D.C. and New York offices of the USPIS. The case is being prosecuted by Trial Attorneys Justin Goodyear, Jason Linder and Patrick Pericak of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey. Fraud Section Assistant Chief Robert Zink also assisted with the investigation.
The SEC referred the matter to the Justice Department for investigation, and the department expresses its appreciation for the substantial assistance provided by the SEC.
China Spring Man Sentenced to Federal Prison for Waco Bank RobberyRead the Press Release
In Waco today, 51-year-old Milton Lewis Anglin of China Spring, TX, was sentenced to 51 months in federal prison for bank robbery announced United States Attorney Robert Pitman and Christopher Combs, Federal Bureau of Investigation Special Agent in Charge of the San Antonio Division.
In addition to the prison term, United States District Judge Walter S. Smith, Jr. ordered that Anglin pay a $1,000 fine and be placed on supervised release for a period of five years after completing his prison term.
On September 18, 2014, Anglin pleaded guilty to a bank robbery charge admitting that he robbed the First National Bank of Central Texas located on China Spring Road in Waco with a dangerous weapon on January 31, 2014. During the heist, Anglin stole approximately $2,832 from the financial institution. Authorities arrested Anglin on February 3, 2014. He has remained in federal custody since.
This case was investigated by the Federal Bureau of Investigation together with the Waco Police Department. Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
Chicago Police Officer Indicted for Alleged Civil Rights Excessive Force Violation and Obstruction of JusticeRead the Press Release
CHICAGO ― A Chicago Police officer was indicted on federal civil rights and obstruction charges alleging that he used excessive force by punching and kicking a victim and then lied in a police report to cover up the incident in 2012, federal law enforcement officials announced today. The defendant, ALDO BROWN, was indicted on one count of violating the unnamed victim’s civil rights to be free from unlawful seizures and the use of unreasonable force by a law enforcement officer and two counts of obstruction of justice.
Brown, 37, joined the Chicago Police Department in December 2002. He will be arraigned on a date yet to be scheduled in U.S. District Court.
The three-count indictment was returned by a federal grand jury yesterday and was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Independent Police Review Authority cooperated with and assisted in the investigation.
According to the indictment, on Sept. 27, 2012, Brown and Officer A entered a convenience store located on East 76th Street in Chicago. When they arrived, the officers placed certain individuals inside the store in handcuffs, including Victim A. Brown and Officer A then began searching the store and the individuals inside. Shortly after Officer A removed the handcuffs from Victim A, Brown allegedly struck Victim A multiple times, resulting in bodily injury.
While Victim A was lying face down on the floor of the store, again in handcuffs, Brown recovered a firearm from Victim A’s rear pants pocket. Then, while Victim A was still handcuffed and lying face down, Brown allegedly kicked Victim A. Brown and Officer A then arrested Victim A.
One obstruction of justice count alleges that Brown made false statements in a tactical response report, including that Victim A was an “active resister,” who “fled” and “pulled away,” but the report did not indicate that Brown punched or kicked Victim A. Brown allegedly knew that Victim A did not actively resist, attempt to flee the situation, or pull away, and Brown knew that he punched and kicked Victim A.
The second obstruction count alleges that Brown lied in an arrest report, which falsely stated, in part, that:
P.O. Brown approached the above subject to conduct a field interview at which time the above subject stated to P.O. Brown, “I got some weed on me” and reached toward his rear pants pocket at which time P.O. Brown observed a handgun inside the above subject rear pants pocket. P.O. Brown conducted a emergency take down for officer safety and recovered the gun from the above subject rear pants pocket. The above subject was trying to pull away from P.O. Brown at which time P.O. Brown delivered a open hand stun to gain control of the above subject…
Brown allegedly knew the arrest report was false for multiple reasons, including that he did not observe a firearm on Victim A at the time of a field interview; he did not know that Victim A had a firearm in his possession until after he struck Victim A multiple times, handcuffed him for a second time, and Victim A was lying on the floor of the convenience store; and Victim A did not pull away from him as the arrest report indicated.
The civil rights count carries a maximum sentence of 10 years in prison, and each count of obstruction of justice carries a maximum of 20 years in prison, and there is a $250,000 maximum fine on all three counts. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Nancy DePodesta.
An indictment contains merely charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Chicago Businessman Sentenced for Failing to File Tax ReturnsRead the Press Release
A prominent Chicago businessman was sentenced today to serve six months in prison and six months home confinement, to be followed by one year supervised release and ordered to cooperate in paying taxes owed to the Internal Revenue Service (IRS) for willfully failing to file federal individual income tax returns, announced the Justice Department.
On June 12, a criminal information filed in the U.S. District Court for the Northern District of Illinois in Chicago alleged that Jamie Viteri had willfully failed to file individual income tax returns for tax years 2007, 2008 and 2009. According to the plea agreement, Viteri earned substantial income that he did not report to the IRS from a company and a state agency. Viteri’s gross income exceeded $270,000 in 2008 and $290,000 in 2009. He was the president and chief executive officer of Viteri Inc., doing business as Chicago Latino Network (CLN), a solely owned media company focused on the Latino community in Chicago. Viteri was also an employee and managing director of the Bureau of Entrepreneurship and Small Business at the Department of Commerce and Economic Opportunity, an Illinois state government agency.
The case was investigated by special agents from IRS-Criminal Investigation and prosecuted by Trial Attorney Christopher Maietta of the Justice Department’s Tax Division.
Charleroi Felon Charged with Illegally Possessing Multiple FirearmsRead the Press Release
PITTSBURGH - A Washington County felon has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm by a convicted felon, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Nov. 18, named William Garry Snowden, 47, as the sole defendant.
According to the indictment, on or about Oct. 29, 2014, Snowden, who has previously been convicted of aggravated assault and kidnapping, was found to be in possession of multiple firearms. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant. The defendant was arrested on October 29, 2014, and has been detained since that date.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Central District of Illinois’ U.S. Attorney’s Office collects $30 Million in Criminal & Civil Actions in Fy 2014Read the Press Release
Springfield, Ill. - U.S. Attorney Jim Lewis announced today that the Central District of Illinois collected $30 million for taxpayers in criminal and civil actions in fiscal year 2014. Of this amount, $20,418,986 was collected in criminal actions by the Central District; an additional $13,456 was collected in criminal actions by the District with other Department of Justice entities. In civil actions, the District collected $8,049,414, and another $1,595,242 with other DOJ entities.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws, in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”“We hold people accountable when the law says that they should be accountable,” said U.S. Attorney Lewis. “We collect restitution for victims of crime, we collect damages if there has been fraud in government programs, we collect debts owed to the government, and we protect federal funds and the public treasury. We do our very best to make sure that justice is done.”
Examples of significant collection efforts during FY 14 include $17 million in criminal fines paid by a subsidiary of the Archer Daniels Midland Company, Alfred C. Toepfer International Ukraine Ltd. In December 2013, ACTI Ukraine entered a plea of guilty in the Central District of Illinois to one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act. The company agreed to pay $17 million in criminal fines to resolve charges that it paid bribes through vendors to Ukrainian government officials to obtain value-added tax refunds.
Another example is the $5,364,000 paid by Dowson Farms, Divernon, Ill., in an out-of-court civil settlement in January 2014, to resolve allegations that it conspired to avoid statutory caps on federal farm subsidy payments from 2002 through 2008.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.Additionally, the U.S. Attorney’s office in the Central District of Illinois, working with partner agencies and divisions, collected $942,073 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Camden Man Sentenced for Illegal Firearm after Deer Decoy used in Ray CountyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Camden, Mo., man has been sentenced in federal court for illegally possessing a firearm following an investigation that employed a deer decoy in rural Ray County, Mo.
Dewayne A. Stephens, 44, of Camden, Mo., was sentenced by U.S. District Judge Gary A. Fenner on Monday, Nov. 17, 2014, to nine years in federal prison without parole.
On Dec. 19, 2013, Stephens pleaded guilty to being a felon in possession of a firearm.
Stephens was seen in the area of Vandiver Road in rural Ray County on Nov. 11, 2012, with a bolt action rifle. The next day, Stephens and another individual were seen carrying a rifle after shots were heard in the wooded area. A Winchester .243-caliber shell casing was found in the area where the shots were heard.
On Nov. 14, 2012, conservation agents set up a deer decoy and observed Stephens exit his Dodge truck with a black and silver colored rifle with a silver scope and fire a shot at the deer decoy. Stephens then entered his truck with the rifle and fled the scene. One of the agents attempted to stop Stephens by blocking the roadway with his patrol truck, but Stephens accelerated, veered around the patrol truck (barely missing it) and left the area.
A Winchester .243-caliber shell casing was located in the area where Stephens had fired his rifle. A silver Savage Axis .243-caliber rifle with a synthetic stock and large silver scope was found along the road where Stephens had fled. Investigators confirmed that the two .243-caliber shell casings recovered were fired from the Savage Axis rifle, which was purchased by Stephens’s wife on Sept. 29, 2012.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Stephens has three prior felony convictions for receiving stolen property and prior felony convictions for driving while intoxicated, assault, armed criminal action, deviate sexual assault, burglary and stealing.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Missouri Department of Conservation, the Missouri State Highway Patrol and the Independence, Mo., Police Department.
Business Enters Plea in Grant Theft CaseRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Columbia, South Carolina ---- Brian Morin, age 47 of Greenville, SC, entered a guilty plea to theft of government funds in violation of Title 18, United States Code, Section 641 in connection with a grant administered to Morin’s former company, Innegrity LLC. According to facts presented during the guilty plea hearing, Morin was awarded a research grant from the National Science Foundation. As a grant condition, Morin was responsible for submitting grant reports certifying the hours that the company worked on grant related activities. An investigation revealed that the company’s internal records did not match the hours Morin certified to the National Science Foundation. Sentencing has not yet been scheduled, and Morin faces a maximum penalty of one year imprisonment and a fine of $5,000.
“The Small Business Innovation Research Program sets aside funds to support small companies that conduct innovative research. This plea stresses the importance of maintaining and reporting accurate time and effort expended on Federal grants, and sends a strong message to those who provide false information to the Federal Government. I commend the U.S. Attorney’s office for its strong support in this case” said Allison Lerner, the National Science Foundation Inspector General. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.Buffalo Man Convicted of Transportation of A Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Trevoen Renel Parkins, age 23, of Buffalo, New York was sentenced today by United States District Court Judge Sylvia H. Rambo to 120 months’ imprisonment, followed by 10 years of supervised release and a $1,000 fine after pleading guilty to the offense of Transportation of Minor With Intent to Engage in Criminal Sexual Activity on July 13, 2014.
According to U.S. Attorney Peter Smith, Parkins met the 12-year-old victim online and on April 12, 2013, traveled from Buffalo, New York to Franklin County, Pennsylvania, waited all day for the victim to finish school and then drove the victim to Buffalo, New York without her parents’ knowledge. While in Buffalo, Parkins statutorily raped the young girl twice. Telephone records led law enforcement to Parkins who lied to police about the girl’s whereabouts and hid the girl for three days before she was ultimately located by police in a closet inside Parkins’ girlfriend’s apartment.
This case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police and the Buffalo City, New York Police Department. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Brooklyn Woman Charged with Passing Counterfeit BillsRead the Press Release
A federal grand jury returned a one-count indictment charging Reneisha Ferguson, aka “Christine Purcell,” age 25, of Brooklyn, New York, with passing counterfeit notes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
On or about April 30, 2012, through December 9, 2012, Ferguson exchanged, transferred and delivered false, forged and counterfeited $100 Federal Reserve notes with the intent that the notes be accepted as genuine, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Secret Service and the Fairlawn Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Brookline Man Sentenced to 57 Months in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH – An Allegheny county resident has been sentenced in federal court to 57 months of imprisonment, to be followed by 15 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Eric Roller, 49.
According to information presented to the court, on or about Feb. 22, 2013, Roller possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police, and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Roller.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Brockport Man Sentenced on Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jacob Disanto, of Brockport, NY, who was convicted of participating in a conspiracy to distribute marijuana and possessing a firearm in furtherance of the marijuana distribution conspiracy, was sentenced to five years in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that the defendant and co-defendant Juan Morales were stopped for speeding by a Brockport Police Officer in a vehicle being driven by Disanto. During the search of the two men and their vehicle, officers found “dime” size bags of marijuana, and a loaded .22 caliber revolver.
The sentencing is the culmination of an investigation on the part of the Brockport Police Department, under the direction of Chief Daniel Varrenti, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins.
Bossier City Man Pleads Guilty to Possessing an Unregistered FirearmRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announcedtoday that aBossier City man pleaded guilty to possessing an unregistered firearm.
Daniel L. Dawson, 25, of Bossier City, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of possessing an unregistered firearm. According to evidence presented at the guilty plea, Bossier City Police responded to reports of gun fire on March 25, 2014. Dawson was found in possession of an H. Koon, model Snake Charmer, .410 gauge shotgun that had its shoulder stock cut down to a pistol grip. This made the shotgun less than 26 inches in length. The weapon was also found to not have been registered to Dawson through the National Firearms Registration and Transfer Record.
Dawson faces up to 10 years in prison, one year of supervised release, a $10,000 fine, and forfeiture of the firearm and ammunition. A sentencing date of January 15, 2015 was set.
The ATF and Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case as part of Project Safe Neighborhoods Program, which is a Department of Justice initiative designed to reduce the possession of unlawful firearms and the use of firearms to commit crimes.
Bangor Resident Sentenced to Almost Six Years for Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Daniel
Hines, 38, of Bangor was sentenced in U.S. District Court in Bangor by Chief Judge John A.
Woodcock, Jr. to 70 months in prison and three years of supervised release for conspiracy to possess with the intent to distribute and to distribute MDPV, a chemical compound commonly referred to as “bath salts” or “monkey dust.”According to court records, between April and December 2011, the members of the conspiracy illegally distributed large quantities of MDPV in Penobscot, Aroostook and Knox counties. The defendant obtained MDPV from other members of the conspiracy and traded, sold or otherwise distributed it to others. In November 2011, following the search of a co- conspirator’s residence in Bangor and the seizure of a large amount of MDPV, the defendant assisted another person in removing from the residence MDPV that the police had not found during their search. This additional quantity of MDPV was eventually distributed to another person, who was later caught by law enforcement. Hines is one of eighteen defendants who pleaded guilty to conspiring with Ryan Ellis and others to distribute the drug. Ellis previously pleaded guilty and awaits sentencing.
The case was investigated by the Maine Drug Enforcement Agency with assistance from the U.S. Drug Enforcement Administration, and the Brewer and Bangor Police Departments.Baden Man Defrauded Gas Company of $440K in Gas RoyaltiesRead the Press Release
PITTSBURGH - A resident of Baden, Pennsylvania, pleaded guilty in federal court to charges of mail fraud, United States Attorney David J. Hickton announced today.
Scott D. Hamilton, aka Art Follage, aka Michael Lewis, 37, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Hamilton defrauded CNX Gas Company of $440,216.35 by filing assignments of lease interests that contained forgeries and imaginary persons. The lease interests were located in Christian County, Illinois, and in Fayette County, WV. These lease interests entitled the owner to royalty payments for oil and gas extracted from the land. Hamilton used a fake company and a post office box to pull off the scheme.
Judge Cercone scheduled sentencing for March 25, 2015. The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service conducted the investigation leading to the indictment in this case.
Authorities Seize 413 Grams of Crack Cocaine, Dealer Sentenced to 97 Months in PrisonRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistELKINS, WEST VIRGINIA – John A. Boyles, 34, of Kerens, West Virginia was sentenced to 97 months in prison after authorities seized 413 grams of crack cocaine from his residence, United States Attorney William J. Ihlenfeld, II, announced today.
“This is one of the largest seizures of crack cocaine to date in the Northern District of West Virginia,” commented U.S. Attorney Ihlenfeld. “I applaud the dedicated efforts of investigators in this case. We remain committed to aggressively combating the pervasive drug addiction problem facing our communities.” Boyles pled guilty in May 2014 to one count of “Aiding and Abetting the Distribution of Cocaine Base” following a West Virginia State Police investigation.
In another matter, Brandon Michael Beeson, 28, of Elkins, West Virginia, was sentenced to 51 months in prison. Beeson pled guilty in July 2014 to one count of “Possession of Material used in the Manufacture of Methamphetamine” after he was discovered in possession of various materials including coffee filters, lithium batteries, airline tubing, air pump, instant cold packs, starter fluid, lighter fluid, salt, drain cleaner, plastic bottles, a pill crusher, glass and plastic bottles, which can be used to manufacture methamphetamine. The Randolph and Upshur County Sheriff’s Departments and the Buckhannon Police Department investigated.
Additionally, Natasha Jewell Biggins, 28, of Montrose, West Virginia, was sentenced to 37 months in prison for her role in manufacturing methamphetamine, She pled guilty in April 2014 to one count of “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine” after methamphetamine manufacturing materials were discovered in her residence as part of a West Virginia State Police investigation.
Assistant U.S. Attorney Steve Warner prosecuted the cases on behalf of the government.
Chief U.S. District Judge John Preston Bailey presided.
Attorney General Holder Announces in Video that the Justice Department Collects More Than $24 Billion in Civil and Criminal Cases in Fiscal Year 2014Read the Press Release
Attorney General Eric Holder announced in a video today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the Justice Department’s prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Eric Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And as a result, I can report today that – during Fiscal Year 2014 – the Justice Department collected a total of $24.7 billion in civil and criminal actions.”
The complete text of the Attorney General’s video message is below:
“Every day, the Justice Department’s prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people. Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And as a result, I can report today that – during Fiscal Year 2014 – the Justice Department collected a total of $24.7 billion in civil and criminal actions.
“That’s more than three times the $8 billion total the Department collected in 2013. And it’s nearly eight and a half times the combined budgets of our 94 U.S. Attorneys’ Offices and all of our main litigating divisions.
“This year’s total includes every dollar collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It comprises roughly $13 billion in payments made directly to the Justice Department, as well as $11 billion in indirect payments made to other federal agencies, states, and other recipients. And it shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.
“In fact, the largest single source of collections during 2014 came from civil settlements to resolve financial fraud claims, including record penalties paid by JPMorgan and Citigroup. These settlements also provide for billions of dollars of relief to struggling homeowners.
“As in past years, collections from civil and criminal health care fraud penalties – including hundreds of millions of dollars in fines from pharmaceutical companies accused of fraud, false claims, and drug safety violations – were among the largest sources of recovered funds. And all across the country – from Wall Street to Main Street – the Justice Department’s robust criminal and civil efforts, in these and many other areas, have made a tremendous, positive difference in the lives of countless people.
“These achievements owe a great deal to the leadership of dedicated career attorneys and support staff members – in Washington and throughout the U.S. Attorney community – who serve the American people every day with integrity, with professionalism, and with steadfast commitment to the highest ideals of justice. I want to thank each of them for their contributions, and their patriotic service, in securing these collections and returning stolen funds to the public coffers.
“In the days ahead, as this work goes on; as we plan for the next fiscal year; and as the new Congress begins its annual appropriations process early next year, I urge leaders from both parties to come together to increase investments in this critical work – so we can ensure that the Justice Department will continue to have the resources we need to build on these efforts, and keep serving the American people, in the months and years to come.”
The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Allenwood Inmate and Visitor Sentenced for Passing ContrabandRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that United States District Court Judge Matthew W. Brann sentenced Catherine Maione, age 29, of New Hampton, New York, to one year probation along with a $350 fine and Anthony Webb, age 28, an inmate at the Allenwood facility, to 6 months’ imprisonment consecutive to any other sentence for providing and possessing contraband consisting of balloons containing marijuana.
According to a United States Attorney Peter Smith, Maione, visited Webb at the Allenwood facility, several times between June 2013 and February 2014 and delivered marijuana to Webb on those occasions. Maione and Webb plead guilty on August 4, 2014.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons. Assistant United States Attorney Eric Pfisterer prosecuted the case.
Alabama Woman Pleads Guilty for Involvement in Identity Theft Tax SchemeRead the Press Release
An Alabama woman pleaded guilty Tuesday to one count of conspiracy to file false claims and one count of aggravated identity theft for her involvement in a stolen identity tax refund fraud (SIRF) scheme, Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced.
Charnesha Alexander and her co-conspirators filed false tax returns using stolen identities between January 2011 and December 2013, according to court documents. Alexander acquired stolen identities from various sources, including the identities of employees from a company in Columbus, Georgia. Alexander and her co-conspirators also filed the false income tax returns in question using several Electronic Filing Identification Numbers issued in the names of sham tax businesses. As a result, Alexander and her co-conspirators obtained possession of the fraudulent tax refunds in the form of U.S. Treasury checks, refund anticipation loan checks, and prepaid debit cards. Alexander and her co-conspirators cashed the fraudulently obtained checks at several businesses located in Alabama. Alexander also deposited fraudulent refund checks into a bank account that she controlled.
A sentencing date has not been scheduled for Alexander. She faces a statutory maximum sentence of 10 years in prison for the conspiracy charge and an additional statutory mandatory sentence of two-years in prison for aggravated identity theft.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Michael C. Boteler, Charles M. Edgar Jr. and Gregory Bailey of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Acoma Pueblo Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Michael Paul Cerno, 38, of Acoma Pueblo, N.M., pleaded guilty this morning to felony information charging him with sexual abuse of a child under the age of 16 but older than 12. Under the terms of his plea agreement, Cerno will be sentenced to a federal prison term of 65 months followed by a term of supervised release to be determined by the court. Cerno will also be required to register as a sex offender.
Cerno, an enrolled member of the Pueblo of Acoma, who resides in Cibola County, N.M., was arrested in Aug. 2014, on a criminal complaint alleging that he sexually abused a 14-year old girl. The indictment alleged that Cerno sexually abused the victim between July 1, 2011 and July 31, 2011, in Indian Country in Cibola County, N.M. Law enforcement authorities learned of the crime two and a half years later.
During today’s plea hearing, Cerno admitted that between July 1, 2011 and July 31, 2011, he knowingly engaged in a sexual contact with the victim at a time when she was physically incapable or unable to decline participation in the sexual act. Cerno acknowledged committing the crime in Acoma Pueblo.
Cerno has been in federal custody since his arrest. He remains detained pending his sentencing hearing which has yet to be scheduled.This case was investigated by the Albuquerque office of the FBI, the Acoma Tribal Police Department, and the Laguna/Acoma Agency of the BIA’s Office of Justice Services.
The case is being prosecuted by Assistant U.S. Attorney David M. Adams as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
18 November 2014
XS Platinum and Five Corporate Officials Indicted for Illegal Discharges from the Platinum Creek Mine and for False Statements to Federal OfficialsRead the Press Release
Anchorage, Alaska – XS Platinum, Inc. and five of its officers and employees were indicted by a federal grand jury in Anchorage today for five felony violations, including conspiracy to violate the Clean Water Act and for submitting material false statements, announced Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division of the U.S. Department of Justice, and Karen L. Loeffler, U.S. Attorney for the District of Alaska.
The indictment charges XS Platinum, Inc. (XSP), a Delaware corporation, and five of its officers and employees, Dr. Bruce Butcher, 59, and Mark Balfour, 62 (both Australian citizens), James Slade, 57 (a Canadian citizen), and Robert Pate, 62 and James Staeheli, 43 (both U.S. citizens residing in Washington state) with conspiracy to violate the Clean Water Act (CWA) during the defendants’ operation of the Platinum Creek Mine on the Salmon River in Western Alaska. In addition, the indictment charges XSP, Butcher, Balfour, Slade, and Pate with knowingly violating the terms of XSP’s CWA permit in 2010; and XSP, Butcher, Balfour, Slade, and Staeheli with knowingly violating the terms of XSP’s CWA permit in 2011. The indictment also charges XSP, Butcher, Balfour, Slade and Pate with submitting a false statement in violation of the CWA. Finally, the indictment charges XSP and Balfour with submitting a separate false statement.
According to the indictment, XSP held 159 placer mining claims and 36 hard-rock claims totaling more than 4,000 acres at the Platinum Creek Mine, which was situated along the Salmon River and its tributaries. The mine contains placer deposits of platinum metal, along with smaller amounts of gold and palladium. All but 21 of the claims were on land managed by the BLM, with the remaining (undeveloped) claims lying within the Togiak National Wildlife Refuge. The Salmon River is an anadromous fish stream that is important for the spawning of all five species of Pacific salmon (chinook, chum, coho, pink, and sockeye), and the rearing of coho and sockeye salmon. After flowing through BLM land, the Salmon River crosses the Togiak National Wildlife Refuge before entering the Pacific Ocean at Kuskokwim Bay.
The CWA prohibits discharges of industrial wastewaters from mining operations in violation of CWA permits which govern those discharges. According to the indictment, beginning in 2010 and continuing through 2011, XSP and the individual defendants knowingly discharged industrial wastewaters from XSP’s mechanical placer mining operation at the Platinum Creek Mine into the adjacent Salmon River in violation of the terms of XSP’s CWA General Permit. According to the indictment, XSP told federal regulators in its mining and CWA permit applications that the operation of the mine would recycle all of its wastewater and result in “zero discharge” of mine wastewater to the Salmon River. The indictment alleges that XSP and the individual defendants conspired to violate the CWA by concealing the 2010 and 2011 mine wastewater discharge violations from federal officials, and submitting material false statements to federal agencies. The indictment further alleges that the industrial wastewaters discharged from XSP’s operation of the Platinum Creek Mine included large amounts of sediment, turbidity, and toxic metals. It is further alleged that these discharges exceeded the CWA General Permit limits for those pollutants and that the defendants failed to report the violations as they were required. According to the indictment, XSP and its corporate officers submitted an annual report in 2011 to federal and state agencies which indicated that the mine had “zero discharge” during the 2010 mining season, when XSP’s own monitoring data showed that it had numerous discharges to the Salmon River.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation is being conducted by the U.S. Department of Interior, Bureau of Land Management, Office of Law Enforcement and Security, and the U.S. Environmental Protection Agency, Criminal Investigation Division. The case is being prosecuted by First Assistant U.S. Attorney Kevin Feldis of the U.S. Attorney’s Office for the District of Alaska, Trial Attorney Todd S. Mikolop of the U.S. Justice Department’s Environmental Crimes Section, and U.S. Environmental Protection Agency Regional Criminal Enforcement Counsel Dean Ingemanson.
Wheeling Man Sentenced for Sale of Cocaine, PainkillersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Adam W. Barnes, 40, of Wheeling, West Virginia, was sentenced to 46 months in prison for his role in a painkiller and cocaine distribution ring, United States Attorney William J. Ihlenfeld, II, announced today.
Barnes pled guilty in September 2014 to one count of “Conspiracy to Use a Telephone System to Facilitate the Distribution of Controlled Substances” after an investigation by the U.S. Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative.
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Waterville Man Sentenced to More Than 15 Years for Cocaine and Oxycodone TraffickingRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Maurice
McCray, 34, of Waterville, Maine, was sentenced today in U.S. District Court in Bangor by
Chief Judge John A. Woodcock, Jr. to 188 months in prison and six years of supervised release for conspiracy to possess with intent to distribute and distribute oxycodone and 500 grams or more of cocaine. McCray pled guilty on March 26, 2013.Court records reveal that between January 1, 2012 and March 17, 2012, McCray obtained over 500 grams of cocaine and over 6500 oxycodone tablets from New York City, transported them to Waterville himself or using numerous couriers, and distributed them in Kennebec and
Somerset Counties.
In reviewing McCray’s nearly 20 year criminal history, Chief Judge Woodcock noted that the only time McCray was not breaking the law was when he was in jail. He added that drug dealing was “a way of life and a business” for McCray who had some good personal qualities, but no “moral compass.”
The case was investigated by the U.S. Drug Enforcement Administration; the U.S.
Department of Homeland Security – Office of Homeland Security Investigations; the Maine
Drug Enforcement Agency; the Maine State Police; the Police Departments of Waterville, Augusta, Fairfield, Oakland, and Skowhegan; and the Somerset and Kennebec County Sheriff’s
Offices. The Kennebec and Somerset County District Attorney’s Offices and the Office of the
Maine Attorney General also provided assistance in the investigation.
U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “this interstate drug trafficking organization was dismantled because local, state, county and federal law enforcement agencies worked closely together.”Victor Man Sentenced for Failing to File Tax ReturnsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Christopher Wheeler, 47, of Victor, NY, who was convicted of willfully failing to file tax returns for 2007, 2008 and 2009, was sentenced by U.S. District Judge David G. Larimer to 10 months in prison, and ordered to pay a fine of $7,500. The defendant has paid restitution, penalties and interest to the Internal Revenue Service.
Assistant U.S. Attorney John J. Field, who handled the matter, stated that Wheeler had gross income of approximately $4.6 million in 2007, $5.6 million in 2008, and $1.6 million in 2009, but failed to file timely tax returns with the Internal Revenue Service to report this income. After search warrants were executed at his residence by the IRS, the defendant filed income tax returns for 2007, 2008 and 2009, and paid all taxes due and owing.
The sentencing is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
U.S. Attorney Presents Equitable Sharing Funds to Law Enforcement PartnersRead the Press Release
United States Attorney A. Lee Bentley, III, along with Michelle S. Klimt, Special Agent in Charge, Federal Bureau of Investigation and United States Marshal William Berger, today announce the distribution of more than $400,000 of criminally forfeited funds to seven law enforcement agencies for their participation in the successful federal prosecution of Dennis Devlin. Pursuant to the Department of Justice Equitable Sharing Program, the funds were distributed to the Volusia County Sheriff’s Office, the Daytona Beach Police Department, the South Daytona Beach Police Department, the Florida Department of Law Enforcement, the Florida Department of Financial Services, the St. Johns County Sheriff’s Office, and the Daytona Beach Shores Public Safety Department. The presentation of funds took place today at the Volusia County Emergency Operations Center in Daytona Beach.
In July 2011, Dennis Brian Devlin, of Daytona Beach, was sentenced to 15 years in federal prison for sexually exploiting a minor. According to court documents, on more than one occasion in January 2011, Devlin persuaded a 13-year-old child to engage in sexually explicit conduct at the Desert Inn in Daytona Beach. He then used an iPhone and video camera, to take sexually explicit pictures and video of the child. On February 2, 2011, agents executed a federal search warrant at the Desert Inn where Devlin lived and found several iPhones and numerous CDs and DVDs concealed in the ceiling of Devlin's bathroom that contained sexually explicit images of the child and other images depicting child pornography.
As part of Devlin's sentence, the court ordered Devlin to forfeit his interest in the Desert Inn, because he had used the hotel to facilitate the crimes for which he was convicted. The forfeited funds were obtained from the sale of the Desert Inn.
The titled owner of the Desert Inn, Deslin Hotels, Inc., filed a claim to contest the forfeiture of the hotel because it alleged that Devlin did not have an interest in the hotel. After several months of litigation, a settlement was reached wherein Deslin Hotels, Inc. conceded to the forfeiture of $1,552,588.62, which represents Devlin's interest in the proceeds obtained from the recent sale of the Desert Inn.
Under federal forfeiture laws, criminals can be stripped of assets that were used illegally or purchased with proceeds of illegal activity. The Asset Forfeiture Program takes the profit out of crime and the Equitable Sharing Program provides crime fighting resources to state and local law enforcement. Asset forfeiture and equitable sharing are valuable law enforcement tools that send a clear message that crime does not pay.This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Karen Gable. The forfeitures were handled by Assistant United States Attorney Nicole M. Andrejko. The U.S. Marshals Service was responsible for depositing and distributing the forfeited funds.
The various law enforcement agencies involved provided critical assistance during the investigation, including identifying, locating, and interviewing victims, executing federal search warrants, and processing the evidence in the case.The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Two Members of Parkersburg Heroin Ring Sentenced in Federal CourtRead the Press Release
CHARLESTON, W.Va. – Two members of a heroin distribution ring operating in Washington County, Ohio and Wood County, West Virginia were sentenced today, announced United States Attorney Booth Goodwin. Cordaro “Chops” Johnson, 23, and Zina Wakefield, 28, previously pleaded guilty in August 2014 to distribution of heroin. Johnson was sentenced to 44 months in federal prison. Wakefield was sentenced to three years of probation.
This case was prosecuted as part of an investigation by the Parkersburg Police Department into a drug trafficking organization with ties to Marion, Ohio and Chicago, Illinois. Daquarri Coats, 21, and Keith Irons, 23 of Marion, Ohio, and Marion Felder of Upper Sandusky, Ohio are currently serving, or have served federal prison sentences. Gerri Rae Parker, 30, of Parkersburg awaits sentencing in February 2015.
Assistant U.S. Attorney, Joshua C. Hanks handled the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Two Lincoln Residents Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on November 18, 2014, two Lincoln residents were sentenced to federal prison for their roles in a conspiracy to distribute 500 grams or more of methamphetamine between January of 2012 and February of 2014. Senior United States District Judge Richard G. Kopf sentenced Jose Luis Ulloa, 43, to 21 years and 10 months (262 months) and Diane Renee Holbrook, 47, to 10 years and 10 months (130 months) respectively. Each will serve five years on supervised release following their prison terms. Judge Kopf ordered Holbrook’s sentence run concurrent to (at the same time as) a ten-year state sentence imposed in March of 2014 in Lancaster County District Court on a related charge of possession of a controlled substance and being an habitual criminal.
Information provided to law enforcement indicated that between January of 2012 and February of 2014, Ulloa and Holbrook were involved together in the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine in the Lincoln area. In June and July of 2013, Ulloa sold methamphetamine to an undercover officer on four occasions and had another person deliver methamphetamine to the officer on a fifth occasion for a total of approximately ½ ounce of methamphetamine. In December of 2013, a search warrant was executed at Ulloa’s Lincoln residence. During that search, officers found small amounts of methamphetamine and three firearms which had reportedly been received in trade for methamphetamine. In July of 2013, a search warrant was executed at Holbrook’s Lincoln residence, and officers found approximately ¾ of an ounce of methamphetamine in a safe in Holbrook’s bedroom.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.Two Individuals Charged with Stealing PersonalInformation of More Than 1,400 PeopleRead the Press Release
An indictment was unsealed yesterday charging two individuals with running an identity theft and false income tax return scheme, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Jeffrey Frost, Special Agent in Charge of the U.S. Secret Service, Detroit Field Office; Jarod Koopman, Special Agent in Charge, Internal Revenue Service, Criminal Investigations; and Chief Michael Patton, West Bloomfield Police Department.
This six-count indictment charges Markitta Washington, 29, of Hampton, Georgia, and previously of Farmington Hills, Michigan, and Martez Lear, 29, of Farmington Hills, with multiple counts of identity theft-related crimes.
According to the indictment, Washington, who worked for Henry Ford West Bloomfield Hospital and DMC Harper Hospital, removed patient records, including Personal Identifying Information (PII) and used that information to file false tax returns in other people’s names. During the execution of a search warrant at a residence shared by Washington and Lear, personal information belonging to approximately 1,400 people was recovered. The information included individuals’ names, dates of birth, and Social Security numbers. Counterfeit and re-encoded credit cards and gifts cards were also recovered. The indictment alleges that at least 305 victims whose PII was stolen had false tax returns filed on their behalf for tax years 2011 and 2012, resulting in a loss to the Internal Revenue Service of approximately $489,000. Most of the refunds were sent using prepaid debit cards, some of which were recovered from the home shared by Washington and Lear.
United States McQuade, stated, "Criminals should know that while technology has made it easier than ever for them to commit identify fraud, technology is also making it easier for law enforcement to catch them. We are making enforcement of identity theft a high priority because this crime has become so pervasive and can be so damaging to victims.”
“As reflected by the indictments, United States Secret Service in Detroit—along with our federal, state and local partners—remains dedicated to the pursuit and apprehension of those responsible for these serious identity theft cases,” stated Jeff Frost, Special Agent in Charge of the Secret Service Detroit Field Office. “The continued, multi-jurisdictional collaboration between law enforcement resulted in the indictment of these individuals for their involvement in these crimes, and we will maintain our resolve as we continue to thoroughly investigate this case.”
“Investigators in this case have been relentless. It should send a powerful message to the criminals within our community that identity theft crimes will not be tolerated and will be vigorously investigated and prosecuted,” stated IRS Special Agent in Charge Jarod Koopman.
"The entire West Bloomfield community is grateful for the great law enforcement partnership that has led to the continuing federal indictments related to these very serious crimes. As the investigation continues, this partnership remains devoted to bringing everyone that played a role in these incidents to justice," said Chief Michael Patton.
Washington was arrested in Georgia, where she appeared in court and was released on a personal bond to appear in court in the Eastern District of Michigan for arraignment on the charges. Lear is currently serving a sentence in the Michigan Department of Corrections for gun related charges.
The case was investigated by the Southeast Michigan Financial and Cyber Crimes Task Force, which is based at the Novi Police Department and includes U.S. Secret Service, Homeland Security Investigations, the U.S. Postal Inspection Service, and IRS Criminal Investigations agents, as well as state and local law enforcement officers from the West Bloomfield, Novi, Royal Oak, Southfield, and Troy Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Abed Hammoud with the United States Attorney’s Office for the Eastern District of Michigan in Detroit.
An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Hospitals have notified individual victims whose personal information was compromised. Patients of the Henry Ford West Bloomfield Hospital may call (313)874-9561with any questions. Patients of DMC Harper Hospital may call (313) 966-8818.
Two Convicted of Drug Trafficking ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Two West Virginia residents were convicted of drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced today.
Eric Holt, 43, of Lumberport, West Virginia, pled guilty to one count of “Distribution of Cocaine Base - Aiding and Abetting” following an investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative. He faces up to 20 years in prison and a fine of up to $1,000,000.00.
Terry J. Sutter, 51, of Mill Creek, West Virginia, pled guilty to one count of “Manufacture and Possess with Intent to Distribute and Distribute Marijuana” following an investigation by the National Forest Service and the Randolph County Sheriff’s Office. He faces up to five years in prison and a fine of up to $250,000.00.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Shawn Morgan prosecuted Holt and Assistant U.S. Attorney Steve Warner prosecuted Sutter on behalf of the government
U.S. Magistrate Judge John S. Kaull presided.
Three Sentenced for Selling Unauthorized WV LicensesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Three men were sentenced for their role in a scheme to produce and sell unauthorized West Virginia driver’s licenses, United States Attorney William J. Ihlenfeld, II, announced today.
Jesse Antonio Garcia, 28, of Chambersburg, Pennsylvania, was sentenced to 15 months in prison. He pled guilty in July 2014 to one count of Aiding and Abetting Unlawful Production of Identification Document.”
Marcos Hernandez Hernandez, 40, of the Dominican Republic, was sentenced to eight months in prison. He pled guilty in August 2014 to one count of “Aiding and Abetting Unlawful Production of Identification Document.”
Kermit Miller, 61, of Martinsburg, West Virginia, was sentenced to three years of probation. He pled guilty in February 2014 to one count of “Conspiracy to Defraud in Connection with Identification Documents”
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The U.S. Department of Homeland Security and U.S. Immigration and Customs Enforcement investigated.
U.S. District Judge Gina M. Groh presided.
NOTE: This press release was on 11/20/2014 to reflect the fact that the driver's licenses in question were produced without authorization.
Three Sentenced for Selling Crack CocaineRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Three men were sentenced for crack cocaine distribution, United States Attorney William J. Ihlenfeld, II, announced today.
Navarre Sowell, 38, of Martinsburg, West Virginia, was sentenced to 92 months in prison for his role in selling cocaine base. He will also forfeit $7,507.00. He pled guilty in August 2014 to a criminal Information charging him with one count of “Use of Telephone Facility to Distribute Cocaine Base.”
James Willard Johnson, 39, of Martinsburg, West Virginia, was sentenced to 51 months in prison for his role in selling cocaine base. He pled guilty in August 2014 to one count of “Aiding and Abetting the Distribution of Cocaine Base.”
Adrian Nicholas Sanchez, 30, of Cumberland, Maryland was sentenced to 18 months in prison for his role in selling cocaine and cocaine base. He pled guilty in August 2014 to one count of “Conspiracy to Distribute Schedule II Controlled Substances.”
Assistant U.S. Attorney Jarod Douglas prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
The DeKalb County School District Reaches Settlement Agreement with Federal Authorities for Harassment Based on Religion and National OriginRead the Press Release
The Department of Justice and United States Attorney’s Office reached a settlement agreement today with the DeKalb County, Georgia, school district to resolve the department’s inquiry into the district’s ability to prevent and effectively respond to peer-on-peer harassment based on national origin and religion.
The agreement ensures that the more than 100,000 students in DeKalb County school district (DeKalb County) will be protected by clear and comprehensive anti-harassment policies and procedures in compliance with federal civil rights laws. It also ensures that parents and students will have access to essential information, including discipline policies and procedures, in their preferred language.
In May 2013, DeKalb County, the Department of Justice and the United States Attorney’s Office reached a settlement agreement that resolved specific allegations of religious and national origin harassment of a Sikh student. At the time of the 2013 agreement, the Department of Justice, the United States Attorney’s Office and DeKalb County agreed to continue working collaboratively to resolve the remaining concerns regarding the content and implementation of the school district’s anti-harassment policies and the training of employees and students on such policies. Since then, DeKalb County has worked with the Justice Department and the United States Attorney’s Office to develop a plan for enhancing anti-harassment protections and increasing access to information for all parents and students; today’s agreement is the result of that collaboration.The agreement requires, among other things, that the DeKalb County school district develop and implement annual age and position appropriate trainings on religious and national origin harassment for all students, staff who interact with students (including administrators, teachers, counselors, and bus drivers), and district-level administrators who interact with students or who are involved in addressing harassment or bullying in the district. The training will include topics related to post-9/11 backlash and harassment that perpetuates negative stereotypes impacting the Sikh, Muslim, Arab-American and South Asian communities.
“We commend the DeKalb County School District’s commitment to ensuring that all students – including Sikhs, Muslims, Arabs, and South Asians – can grow and learn in a safe and supportive environment free from discrimination based on religion or national origin,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “DeKalb County school district has worked hand-in-hand with the department to identify and expand those policies that are successful at protecting kids while modifying those practices that need improvement, and we are confident that the district will continue its work to eliminate harassment in its schools.”
“Every child should be able to attend school without the fear of being taunted and physically assaulted based on his religion or national origin,” said United States Attorney Sally Quillian Yates for the Northern District of Georgia. “I am encouraged that DeKalb County School District has demonstrated a commitment to ensure that its schools are free of harassment.”
The enforcement of Title IV is a top priority of the DOJ’s Civil Rights Division. Additional information about the Civil Rights Division of the DOJ is available on its website at www.justice.gov/crt.
Assistant United States Attorney Aileen Bell Hughes handled this matter on behalf of the United States Attorney’s Office.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
The DeKalb County School District Reaches Settlement Agreement with Federal Authorities for Harassment Based on Religion and National OriginRead the Press Release
ATLANTA - The United States Attorney’s Office and the Department of Justice reached a settlement agreement with the DeKalb County, Ga., School District to resolve the Department’s inquiry into the district’s ability to prevent and effectively respond to harassment based on national origin and religion.
“Every child should be able to attend school without the fear of being taunted and physically assaulted based on his religion or national origin,” said United States Attorney Sally Quillian Yates. “I am encouraged that DeKalb County School District has demonstrated a commitment to ensure that its schools are free of harassment.”
“We commend the DeKalb County School District’s commitment to ensuring that all students – including Sikhs, Muslims, Arabs, and South Asians – can grow and learn in a safe and supportive environment free from discrimination based on religion or national origin,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “DeKalb County school district has worked hand-in-hand with the department to identify and expand those policies that are successful at protecting kids while modifying those practices that need improvement, and we are confident that the district will continue its work to eliminate harassment in its schools.”
The agreement ensures that the more than 100,000 students in DeKalb County School District (DeKalb County) will be protected by clear and comprehensive anti-harassment policies and procedures in compliance with federal civil rights laws. It also ensures that parents and students will have access to essential information, including discipline policies and procedures, in their preferred language.
In May 2013, DeKalb County, the Department of Justice (DOJ), and the United States Attorney’s Office reached a settlement agreement that resolved specific allegations of religious and national origin harassment of a Sikh student. At the time of the 2013 agreement, the DOJ, the United States Attorney’s Office, and DeKalb County agreed to continue working collaboratively to resolve the remaining concerns regarding the content and implementation of the school district’s anti-harassment policies and the training of employees and students on such policies. Since then, DeKalb County has worked with the DOJ and the United States Attorney’s Office to develop a plan for enhancing anti-harassment protections and increasing access to information for all parents and students; today’s agreement is the result of that collaboration.The agreement requires, among other things, that the DeKalb County School District develop and implement annual age and position appropriate trainings on religious and national origin harassment for all students, staff who interact with students (including administrators, teachers, counselors, and bus drivers), and district-level administrators who interact with students or who are involved in addressing harassment or bullying in the district. The training will include topics related to post-9/11 backlash and harassment that perpetuates negative stereotypes impacting the Sikh, Muslim, Arab-American, and South Asian communities.
The enforcement of Title IV is a top priority of the DOJ’s Civil Rights Division. Additional information about the Civil Rights Division of the DOJ is available on its website at www.justice.gov/crt.
Assistant United States Attorney Aileen Bell Hughes handled this matter on behalf of the United States Attorney’s Office.For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Smith County Woman Sentenced to Prison for Student Financial Aid FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 32-year-old Flint, Texas woman has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mindy Ritch pleaded guilty on May 5, 2014, to student financial aid fraud and was sentenced to 54 months in federal prison today by U.S. District Judge Michael H. Schneider. Ritch was also ordered to pay restitution in the amount of $564,447.72.
According to information presented in court, from January 2010 to February 2013, Ritch fraudulently obtained funds from the Federal Pell Grant Program and the William D. Ford Direct Loan Program to which she was not entitled. Ritch was indicted by a federal grand jury on June 26, 2013.This case was investigated by the U.S. Department of Education – Office of Inspector General, U.S. Secret Service, U.S. Postal Inspection Service, and the Tyler Junior College Police Department. Assistant U.S. Attorney Nathaniel C. Kummerfeld prosecuted this case.
Sisters Charged in Separate Indictments for Allegedly Embezzling from Non-Profit OrganizationsRead the Press Release
Victim Non-Profits Provided Services to the Homeless, Disadvantaged Children, and a Baltimore Community
Baltimore, Maryland - A federal grand jury has indicted Sharon Harrison, age 48, of Rosedale, Maryland, for embezzling more than $1.3 million from four non-profit organizations for which she worked and which received federal funding. Her sister, Kimberly Harrison, age 46, also of Rosedale, was charged in a separate indictment with embezzling funds from a federally funded non-profit organization she founded. She was also charged with bankruptcy fraud. Both indictments were returned today.The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General; and Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General.
“Non-profit organizations that receive federal funds have a legal duty to use them for the intended purpose,” said U.S. Attorney Rod J. Rosenstein. “Sharon Harrison and Kimberly Harrison allegedly helped themselves to federal funds intended to provide services for disadvantaged children and homeless families in Baltimore.”
According to her four-count indictment Sharon Harrison was a bookkeeper or fiscal manager for the following non-profit groups, all of which received federal funds to assist in their mission:
Health, Education, Advocacy, Life Inc. (HEAL) from 2005 to March 2011; Between Friends, Inc. from September 2008 to November 2011; Jobs, Housing & Recovery, Inc. (JHR) from May 20, 2013 to February 12, 2014; and Reservoir Hill Improvement Council (RHIC) from December 2012 to February 2014.
HEAL and JHR provided services for the homeless in Baltimore City. Between Friends, founded by Kimberly Harrison, assisted disadvantaged children to find foster homes and provided services to the children and their foster families. RHIC assessed community needs, developed and implemented solutions on issues common to the Reservoir Hill Community in Baltimore.
The indictment alleges that over the course of her employment at HEAL, RHIC, JHR and Between Friends, Sharon Harrison embezzled over $1.3 million. The indictment seeks the forfeiture of $1,306,797.70, believed to be the proceeds of the scheme.
“When we learn about individuals who seek to enrich themselves at the expense of HUD programs designed to help out those who have a great need for help to survive, we vigorously investigate these individuals to ensure they are removed from a position to place the public and HUD programs at financial harm. We would like to thank our law enforcement partners from the FBI and the Inspector General's Office for the City of Baltimore for their superb investigative efforts,” said Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General, Mid-Atlantic Region.
Kimberly Harrison’s two-count indictment alleges that she embezzled over $100,000 from Between Friends, which she founded and operated from 2008 to 2012, including $60,264 which she stole from September 2011 to September 2012. Also, according to her indictment, when Kimberly Harrison filed for bankruptcy on June 28, 2012, she did not disclose the approximately $45,514 she had received from Between Friends, Inc., in the form of both checks made payable to Harrison directly, and checks made payable to her landlord for Harrison’s monthly rent payments, from June 2011 until the filing of her petition. Harrison also allegedly failed to list as an asset a 2009 Lexus RX350 that she purchased for $31,037.88 on June 23, 2012, just five days prior to filing her petition.
Sharon and Kimberly Harrison each face a maximum sentence of 10 years in prison for each count of federal program theft. Kimberly Harrison also faces a maximum penalty of five years in prison for bankruptcy fraud. An initial appearance has not been scheduled for either of the Harrisons in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, HUD-OIG and Baltimore Office of Inspector General, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.