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Wednesday 1 October 2014
Brighton Resident Sentenced on Child Enticement ChargeRead the Press Release
BOSTON – A Brighton man was sentenced today for coercing and enticing a minor for the purpose of sexual activity.
Zachary Stoloff, 30, was sentenced today by U.S. District Judge F. Dennis Saylor IV to 10 years in prison, five years of supervised release, and ordered that he have no contact with the victim during the period of incarceration and supervised release. Stoloff is also required to register as a sex offender. In June 2014, Stoloff pleaded guilty to coercion and enticement of a minor.
Stoloff met the 14-year-old victim on the Internet and persuaded her to meet with him and engage in sexual intercourse. When she agreed, Stoloff traveled to the victim’s hometown in Massachusetts and then drove her to his Brighton residence where they had sexual intercourse.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Easton Chief of Police Allen Krajcik, made the announcement today. This case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Bridgeport Man with Violent Criminal History Sentenced to 15 Years for Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE ROQUE, 47, of Bridgeport, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 180 months of imprisonment, followed by three years of supervised release. On May 16, 2014, a jury found ROQUE guilty of possession of a firearm by a previously convicted felon.
According to the evidence presented during the trial, on September 1, 2010, Bridgeport Police responded to a residential burglary call. When they arrived, the complainant described the burglar and the vehicle he drove from the scene. Later that day, officers spotted ROQUE driving the car and attempted to stop him. After a chase, which involved multiple police cars, ROQUE was stopped, but he refused to exit the vehicle. As one officer attempted to remove him, a second officer approached from the other side of the car and saw a brown gun handle tucked along the right side of the driver’s seat. After ROQUE made a movement toward the gun, the second officer kicked in the passenger window of the vehicle. ROQUE was taken out of the vehicle and tasered when he pushed back at officers.
A search of the vehicle revealed a .38 caliber Smith & Wesson SPL Model #64-2 handgun at the side of the driver’s seat.
ROQUE’s criminal history includes several state felony convictions, including convictions for robbery and burglary in 1984; assault and burglary in 1991; escape in 1992; burglary in 1993, and assault, attempted assault of an officer, attempted escape, attempted riot in an institution, and conspiracy to commit assault in 1994.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
ROQUE was sentenced pursuant to the Armed Career Criminal Act, a federal law imposing severe penalties for firearm or ammunition possession by persons who have been convicted of at least three violent felonies or serious drug offenses. As an Armed Career Criminal, ROQUE faced a minimum term of imprisonment of 15 years and a maximum term of imprisonment of life.
This matter was investigated by the Bridgeport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Rahul Kale and Special Assistant U.S. Attorney Charles Rombeau.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bozeman School District Receives over 3 Million in Federal Funds for Childhood Trauma and Mental Health ProgramRead the Press Release
HELENA - The Office of Justice Programs' National Institute of Justice (NIJ) today announced it has awarded nearly $63 million to school districts and research organizations across the country through the Comprehensive School Safety Initiative (CSSI). Bozeman School District #7 received $3.3 million for its program called SAFE-TI, which involves individual mental assessments for students, who are then engaged in intervention programs tailored to their specific mental health needs. CSSI is a large-scale, multi-agency research effort to build knowledge about effective approaches to increasing school safety nationwide.
The Bozeman program will examine the impact of large, multi-tiered mental health- and trauma-informed interventions on a wide variety of mental health and school safety outcomes. The program tiers students based on their mental health needs, following individual assessments. Students will be randomly assigned at intake to either an immediate intervention group or a three-month waitlist control group. Interventions will be implemented across 11 schools in a largely rural area with a large population of Native America students. Researchers from the University of Montana will provide evidence of the effectiveness of these interventions on school safety.
Although NIJ has primary responsibility for CSSI, the program is a collaborative effort among more than 20 federal partners, including the Departments of Justice, Education, Health and Human Services, Homeland Security, and the Treasury. This partnership will allow the federal government to make a significant impact on school safety by investing limited funds in research that has practical applications for every school in the nation. By determining what interventions work best for specific schools and students, CSSI will provide professionals with a body of knowledge to help them make decisions about which programs will be most effective - and most cost effective - for their particular schools and their challenges.
President Obama's January 2013 plan to end gun violence emphasized keeping guns out of potentially dangerous hands and recognized that additional actions are needed to make our schools safer. CSSI was launched in early 2014 in response to a Congressional request for a broad, research-based effort to increase safety in the nation's schools.
The initiative has three primary goals: to collect national-level data; to convene stakeholders to identify and share best practices; and to conduct innovative research and evaluate pilot projects in school districts. The programs and policies within CSSI are designed to produce evidence about what works in such areas of school safety as effectiveness of school resource officers and mental health professionals, violence and bullying reduction, and effectiveness of such restorative justice interventions as youth courts. The initiative will also examine potential unintended consequences of school safety efforts, including the excessive use of exclusionary discipline and arrests of students.
A list of the awards and more information about CSSI are available atError! Hyperlink reference not valid. www.nij.gov, keywords: "School Safety."
Box Elder Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Dewey Shane Marrowbone, age 45, was indicted on September 16, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 25, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, at least 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 4, 2014, and August 20, 2014, Marrowbone, who was required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update his sex offender registration.
The charge is merely an accusation and Marrowbone is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Marrowbone was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Berlin Man Sentenced to 41 Months in Prison for Running Investment Fraud Scheme, Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANK METE, 57, of Berlin, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 41 months of imprisonment, followed by three years of supervised release.
According to court documents and statements made in court, from approximately 2009 to November 2012, METE operated an investment fraud scheme in which he held himself out as a broker of hard money loans between investors and purported individual borrowers who were willing to borrow money at interest rates of 15 to 18 percent. In fact, there were no such borrowers. In order to induce the investors to extend loans to the purported borrowers through him as the broker, METE created false promissory notes, mortgage documents and other false records using the names of the fictitious borrowers. After receiving from the victim investors checks that were made out to the purported borrowers, he forged the signatures on the checks and deposited the funds into several bank accounts he opened in the borrowers’ names.
Through this scheme, METE defrauded investors of approximately $1,191,610.50. He used the funds to pay for various personal expenses.
METE also failed to file federal income tax returns from 2009 to 2012, causing a tax loss to the government of approximately $357,324.
METE was ordered to make full restitution to his victim investors. He also was ordered to pay $666,851.84 in back taxes, penalties and interest to the Internal Revenue Service.
On December 4, 2013, METE pleaded guilty to one count of wire fraud and one count of tax evasion.
METE has been detained in state custody on unrelated charges since November 8, 2013.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Arundel Man Sentenced to 1½ Years in Prison for Bank TheftRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jeffrey
Burnham, 42, of Arundel, Maine, was sentenced today in U.S. District Court by Judge George
Z. Singal to 1½ years in prison and 3 years of supervised release for theft by a bank officer.
Burnham pleaded guilty on June 10, 2014.According to court records, from about February 2011 to February 2012, Burnham, who
was a Vice President with TD Bank, stole about $240,000 from the bank. Burnham used his
corporate credit card to charge personal expenditures at several gentlemen’s clubs located in
Maine, Massachusetts, New York, and Florida and then submitted false expense reports and
other false information that caused the bank to pay for those personal expenditures. Burnham
also gave TD Bank gift cards that were designed to be given as gifts to TD Bank clients instead
to employees of the gentlemen’s clubs.The investigation was conducted by the Federal Bureau of Investigation.
Armed Career Criminal from Santa Fe Sentenced to Fifteen Years for Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Joshua Gomez, 24, of Santa Fe, N.M., was sentenced today to 15 years in federal prison followed by three years of supervised release for being an armed career criminal. The sentence was announced by U.S. Attorney Damon P. Martinez, 1st Judicial District Attorney Angela “Spence” Pacheco, Acting Special Agent in Charge Tom Hernandez of Homeland Security Investigations (HSI) in El Paso, and Chief Eric Garcia of the Santa Fe Police Department.
Gomez was arrested on Feb. 14, 2014, based on a criminal complaint charging him with being a felon in possession of a firearm. He was indicted on March 11, 2014 and charged with unlawfully possessing a firearm and ammunition on Jan. 8, 2014, in Santa Fe County, N.M. According to court records, Gomez was prohibited from possessing firearms or ammunition in Jan. 2014 because he previously had been convicted of many felony offenses, including possession of a firearm by a felon, aggravated fleeing from a police officer, receiving stolen property, residential burglary, burglary, receiving or transferring a stolen vehicle and possession of heroin.According to court filings, on Jan. 8, 2014, officers of the Santa Fe Police Department and HSI agents arrested Gomez on an outstanding arrest warrant. During a search incident to arrest, Gomez informed the officers that he had a gun and gestured toward the front pocket of his sweatshirt where the officers could identify the barrel of a pistol. After the officers seized a loaded pistol from the pocket of Gomez’s sweatshirt, the officers asked Gomez if he was a convicted felon. Gomez admitted being a felon and acknowledged that he was prohibited from possessing firearms or ammunition. Gomez was arrested on state charges which were later dismissed in favor of federal prosecution.
Gomez pled guilty to the indictment on June 26, 2014. Because of his status as an armed career criminal, Gomez faced an enhanced sentence of not less than 15 years in prison.
This case was investigated by the Border Enforcement Security Task Force (BEST Team) from HSI’s Albuquerque office and the Santa Fe Police Department, and was prosecuted by Assistant U.S. Attorney Holland S. Kastrin.
The case was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Annette L. Hayes Appointed Acting United States Attorney for the Western District of WashingtonRead the Press Release
The Executive Office of United States Attorneys has selected Annette L. Hayes to serve as Acting United States Attorney pending the appointment and confirmation of a presidentially appointed United States Attorney for the Western District of Washington. Ms. Hayes has served as the First Assistant United States Attorney since 2010. In that role she has been second-in-command of the U.S. Attorney’s Office and a key leader in both criminal and civil litigation in the office. Ms. Hayes takes over from Jenny A. Durkan, who stepped down yesterday.
Annette L. Hayes joined the U.S. Attorney’s Office in 1997 as an Assistant United States Attorney in the Criminal Division. She was assigned to prosecute a range of drug cases including large-scale, international trafficking and cartel related cases. In 2002, she became the Deputy Supervisor of the Complex Crimes Unit where she prosecuted cyber hacking and intellectual property cases while working with law enforcement on outreach to the private sector. In 2005, she became one of the supervisors of the General Crimes Unit where she worked closely with and trained many new attorneys on a range of federal crimes including child exploitation, drug, fraud, identity theft, immigration and violent crimes cases.
Prior to joining the U.S. Attorney’s Office, Ms. Hayes spent her first six years as an attorney handling a variety of civil litigation matters at law firms in Seattle and Washington, D.C.
Ms. Hayes is a graduate of Cornell Law School and Williams College.
Aberdeen Man Sentenced in Bribery CaseRead the Press Release
First Assistant United States Attorney Randy Seiler announced that an Aberdeen, South Dakota, man convicted of promising an illegal gratuity to a witness was sentenced on September 22, 2014, by U.S. District Judge Charles B. Kornmann.
Nickolas J. Berbos, age 53, was sentenced to 5 years of probation, and ordered to pay a $250,000 fine and a $100 assessment to the Federal Crime Victims Fund. Prior to sentencing, Berbos had served almost three months in custody for violating his bond.
Berbos was originally indicted by a federal grand jury on August 21, 2013, for three counts of False Crop Insurance Claim. He pled guilty to a Superseding Information on June 9, 2014, charging him with Illegal Gratuity to a Witness.
In November 2013, Berbos initiated a conversation with Todd Daniels, one of his employees. During that conversation, Berbos promised to give Daniels additional employment benefits if Daniels would tell investigators and testify in court that Daniels did not run the air seeder on Berbos’ farm during the time period covering some of Berbos’ disputed crop applications. The issue of who was running the air seeder and the accuracy of the air seeder’s numbers was a material issue to the prosecution of the underlying case against Berbos.
This case was investigated by United States Department of Agriculture - Office of Investigations. Assistant U.S. Attorneys Thomas J. Wright and Ann M. Hoffman prosecuted the case.
A.g. Schneiderman, Comptroller Dinapoli and U.s. Attorney Hartunian Announce Arrest and Indictment of Nys Assemblyman William ScarboroughRead the Press Release
Separate State and Federal Indictments Accuse Assemblyman of Stealing Campaign
Funds and Fraudulently Collecting Travel ReimbursementsNEW YORK – Attorney General Eric Schneiderman, Comptroller Thomas P. DiNapoli and United States Attorney for the Northern District Richard S. Hartunian today announced the arrest and indictment of New York State Assemblyman William Scarborough for allegedly stealing campaign funds and falsely collecting travel reimbursements. The 23-count state indictment accuses the Southeast Queens Assemblyman of withdrawing and diverting over $40,000 from the bank account of the “Friends of Bill Scarborough” campaign committee and then using those funds for personal expenses. The 11-count federal indictment charges Scarborough with improperly claiming “per diem” expenses for travel that didn’t take place. If convicted on all charges, he faces up to 37 years in prison.
“The crimes Mr. Scarborough is accused of committing represent a shameful breach of the trust his constituents placed in him,” said Attorney General Schneiderman. “New Yorkers are repeatedly asked to have faith in our leaders, and it appears that faith has been shattered once again. Every time my office arrests a corrupt public official, it sends the message that there must be one set of rules for everyone and no one is above the law, no matter how powerful or well-connected. I also want to thank Comptroller DiNapoli and U.S. Attorney Hartunian – cases like that are made possible only through the great collaboration of our law-enforcement partners.”
"Elected officials cannot use taxpayer money or campaign funds as their personal piggy banks. Assemblyman Scarborough tried to game the system, thinking he could get away with it,” New York State Comptroller Thomas P. DiNapoli said. "Through our joint investigation, we revealed that Assemblyman Scarborough allegedly submitted fraudulent travel vouchers and filed false reports on his use of campaign funds. I will continue to partner with Attorney General Eric Schneiderman, U.S. Attorney Richard Hartunian, the Federal Bureau of Investigation and prosecutors across the state to root out corruption and bring corrupt officials to justice."
U.S. Attorney Richard S. Hartunian said: “Today’s indictments demonstrate the commitment of state and federal authorities to combat the fraud and corruption that has plagued our political system. Our elected officials are expected to safeguard the integrity of their office and follow all the rules. When they fail to do so, law enforcement will respond. I heartily commend Attorney General Schneiderman and Comptroller DiNapoli for their vigorous pursuit of this case. The collaboration between state and federal investigators that has brought about these indictments has proven to be an effective tool in identifying and rooting out corruption in our state government.”
State Indictment
According to documents made public today in connection with the state investigation, part of an ongoing effort between Schneiderman and DiNapoli known as “Operation Integrity” and conducted with the assistance of the FBI, Scarborough engaged in a pattern of illegal activity over the last seven years. Bank records obtained as part of the investigation show that between January 2007 and March 2014, Scarborough made numerous withdrawals and transfers from his campaign committee’s account totaling approximately $38,000. Some of that money was taken out directly as cash withdrawals; some was transferred into his personal account, according to the indictment and court papers. Additionally, Scarborough deposited five checks made payable to “Friends of Bill Scarborough,” totaling $3,450, directly into his personal bank account.The state indictment, filed in New York State Supreme Court in Albany, accuses Mr. Scarborough of then spending that cash for his own personal use, in violation of New York State Election Law, which says that “[c]ontributions received by a candidate or a political committee … shall not be converted by any person to a personal use.”
Mr. Scarborough also allegedly attempted to conceal his illegal conduct by not reporting the withdrawals to the state Board of Elections, as legally required. Between 2007 and 2014, there were 21 separate filings made with the Board of Elections that did not account for the withdrawals. Additionally, the money has never been accounted for in the campaign committee’s financial records.
The indictment charges Scarborough with two felony counts of Grand Larceny and 21 felony counts of Offering a False Instrument for Filing.
Federal Indictment
The federal investigation, conducted by the United States Attorney’s Office and the Albany Division of the Federal Bureau of Investigation, focused on the alleged improper claiming of “per diem” payments and other travel-related expenses from 2009 to 2012. In a federal indictment, filed today in United States District Court in Albany, Assemblyman Scarborough has been charged with four (4) counts of Theft Concerning a Program Receiving Federal Funds for allegedly submitting 174 false reimbursement vouchers for per diem expenses, mileage and tolls in excess of $40,000 between January 2009 and December 2012. If convicted, Scarborough faces a maximum term of imprisonment of not more than 10 years and a $250,000 fine. Scarborough was also charged with seven (7) counts of Wire Fraud relating to communications directing payment of specific false New York State Travel Vouchers to his bank account. If convicted, these counts carry a maximum term of imprisonment of not more than 20 years and fine up to $250,000.The Attorney General, Comptroller and U.S. Attorney thank the Albany office of the FBI and Deputy Comptroller Nelson Sheingold and Investigator Rebecca Shanley of the State Comptroller’s Office for their cooperation and assistance in this investigation.
Prosecuting the state case is Senior Counsel Darren Miller of the Attorney General’s Public Integrity Bureau, which is led by Deputy Bureau Chief Stacy Aronowitz and Bureau Chief Daniel Cort. Kelly Donovan is the Executive Deputy Attorney General for Criminal Justice. The state’s investigation was handled by Investigator Mark Spencer and Deputy Bureau Chief Antoine Karam of the Investigation Bureau, which is led by Chief Dominick Zarrella. Forensic auditor Jason Blair and legal analyst Sara Pogorzelski provided additional assistance.
The federal investigation was handled by the FBI, Albany Division. The federal case is being prosecuted by Assistant U.S. Attorney Jeffrey Coffman.
All charges are merely accusations and all defendants are presumed innocent unless and until proven guilty in a court of law.
22 Defendants Charged for Alleged Roles in Connected Drug Rings Extending from Mexico to Chicago and Across the U.S.Read the Press Release
CHICAGO — Twenty-two defendants are facing federal narcotics charges here for their alleged roles in importing, supplying, and distributing kilogram quantities of heroin and cocaine through interconnected drug trafficking organizations that operated in the Chicago area, as well as in Mexico, California, Oregon, Indiana, Ohio, and Pennsylvania. The investigation resulted in the seizure of more than $3.9 million from a residence in suburban Park Ridge in April 2013, as well as dozens of kilograms of cocaine, heroin, and marijuana.
Beginning Monday night through yesterday, 14 defendants were arrested in the Chicago area, two in California, and one each in Iowa and Pennsylvania, following an investigation led by FBI and DEA agents and other law enforcement partners assigned to the Chicago Strike Force, a permanent task force of centrally housed federal, state, and local law enforcement agencies targeting the intersection of drug cartels’ large-scale smuggling of narcotics and local street gangs’ extensive distribution organizations. Three others were already in custody, and one is a fugitive believed to be in Mexico.
Approximately $500,000 and a kilogram of cocaine were seized yesterday during the arrest of one defendant in Philadelphia. In Chicago, a loaded .32 caliber revolver, thousands of dollars in cash, and quantities of cocaine and heroin were seized during the arrests. In total, agents seized approximately $5 million, 78 kilos of cocaine, and 20 kilos of heroin, and a large quantity of marijuana during the entire investigation.
The defendants were charged with conspiracy or possession with intent to distribute narcotics in three separate criminal complaints that were filed Monday in U.S. District Court and unsealed following the arrests. The defendants arrested here had their initial appearances yesterday and were scheduled to have detention hearings starting tomorrow and continuing through Monday before U.S. Magistrate Judge Susan Cox in U.S. District Court.
“The Chicago Strike Force is a powerful collaboration of local, state, and federal law enforcement focused on the choke point between narcotics suppliers and street-level distributors,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “This investigation demonstrates the wisdom of the Strike Force and illustrates how dedicated teamwork can rise above jurisdictional and geographic borders, across state and international lines, to stem the flow of narcotics into our communities,” he said.
Mr. Fardon announced the charges with Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation; Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; Gary Hartwig, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); and Garry F. McCarthy, Superintendent of the Chicago Police Department. The Addison, Berwyn, Oak Lawn, and Park Ridge police departments and the DuPage Metropolitan Enforcement Group also assisted in the investigation.
The Chicago Strike Force ― in addition to the DEA, FBI, HSI, and CPD ― also consists of the Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and officers from various state and local law enforcement agencies, including the Cook County Sheriff’s Police Department and the Illinois State Police.
“These Strike Force arrests demonstrate our collaborative and continuing endeavor to attack the persistent problem of drug trafficking in Chicago and the surrounding communities. I’d like to thank the United States Attorney’s Office and the DEA, our partners in this investigation, as well as the Chicago Police Department and Homeland Security Investigations, whose contributions were vital to the success of yesterday’s operation,” Mr. Holley said.
“This investigation is an example of the extraordinary work being done by the men and women at the Chicago Strike Force. Guns and drugs continue to be the underlying source of much of our city’s violence and yesterday’s arrests effectively dismantled a significant international criminal organization and its distribution network, responsible for trafficking narcotics on the streets of Chicago,” Mr. Riley said. “I applaud the FBI and the U.S. Attorney’s Office, as well as the other members of the Strike Force, for the exceptional job they did investigating these organizations.”
One of the three complaints charges VICTOR MATA MADRIGAL, 37, of Lombard, and eight members or associates of his alleged drug trafficking organization. Mata Madrigal allegedly imported wholesale amounts of cocaine and marijuana from Mexico into Chicago and distributed those narcotics to various wholesale customers.
On April 16, 2013, Strike Force agents seized $3,927,359 in alleged drug proceeds belonging to the Mata Madrigal organization from a residence in the 700 block of North Lincoln Avenue in Park Ridge. The cash was found inside numerous duffel bags, roller bags, and backpacks. Also seized were multiple cell phones, money counters, and packaging materials used to secure the cash. Mata Madrigal was arrested the same day and the complaint alleges that he continued to direct the drug operation while he was in custody.
The complaint charges that between April 2012 and May 2014 Mata Madrigal conspired with co-defendants JORGE SANCHEZ, of Philadelphia; JORGE MICHEL-MONROY, 45, of Philadelphia; SERGIO ZEPEDA, 30, of Berwyn; RAMON CONTRERAS, 23, of Chicago; ANTONIO MEIJA RODRIGUEZ, believed to be in Mexico; BALMORE URBANO, 31, of Bensenville; and STEPHANIE ARREDONDO, 22, of Franklin Park, to possess and distribute cocaine. The complaint also charges RICARDO HERNANDEZ, 30, of Chicago, and Urbano with possession with intent to distribute cocaine. If convicted, these nine defendants face a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine.
Another complaint charges DANIEL CONTRERAS, 36, of Bellwood, with working with multiple individuals to obtain and sell wholesale quantities of cocaine. Daniel Contreras and codefendants ROBERTO CORTEZ, 39, of Rialto, Calif., and MICHAEL AGUIRRE, 26, of Maywood, allegedly purchased cocaine from the Mata Madrigal organization. Daniel Contreras also allegedly worked separately with HECTOR MURILLO, 29, of Cicero, and ADAN BACA, 36, of Schaumburg, to sell distribution-sized quantities of cocaine. Co-defendants RAFAEL RUIZ, 36, of Bellwood; ARMANDO GARCIA, 38, of Bellwood; and JOSEPH DE LA VEGA, 52, of Chicago, were allegedly wholesale cocaine customers of Daniel Contreras. EITEL MENDOZA, 37, of Culver, Ore., allegedly worked with Cortez to transport kilos of cocaine from Oregon to Illinois. If convicted, eight of these defendants face a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine, while De La Vega alone faces a maximum sentence of 20 years in prison and a $1 million fine.
The third complaint charges JUAN MOYANO, 33, of Chicago, with purchasing narcotics from the Mata Madrigal organization and managing his own drug trafficking organization in Chicago that distributed heroin and cocaine, as well as possessed and transferred firearms. Moyano allegedly conspired with co-defendants NIKKOLAS CASILLO, 28, of Chicago, and JOSE VASQUEZ, 30, of Chicago, to distribute narcotics to their customers. Co-defendant JIM BAARTZ, 41, of Crystal Lake, was an alleged heroin customer of Moyano. If convicted, Moyano, Casillo, and Vasquez face a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine, while Baartz alone faces a maximum sentence of 20 years in prison and a $1 million fine.
The government is being represented by Assistant United States Attorneys Patrick Otlewski and Nicole Kim.
The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Madrigal Complaint
Contreras Complaint
Moyano Complaint
Tuesday 30 September 2014
White House Drug Policy Acting Director Announces Designation of 26 Cities and Counties as High Intensity Drug Trafficking Areas, Including One Western District of Virginia LocationRead the Press Release
ROANOKE, VIRGINIA – Today, Michael Botticelli, Acting Director of National Drug Control Policy (ONDCP), announced the designation of 26 additional counties and cities in 11 states as High Intensity Drug Trafficking Areas (HIDTAs). The designations will enable the 26 counties and cities to receive Federal resources to further the coordination and development of drug control efforts among Federal, state, local, and tribal law enforcement officials. It also will allow local agencies to benefit from ongoing HIDTA-coordinated initiatives working to reduce drug use and its consequences across the United States.
Locally, Tazewell County in Southwest Virginia was added to the Appalachia HIDTA.
“The admission of Tazewell County into the Appalachia HIDTA program will provide much needed resources for law enforcement in our ongoing effort to stem the tide of opiate abuse in Southwest Virginia,” United States Attorney Timothy J. Heaphy said today. “HIDTA provides valuable assistance to investigators, including funding for training, overtime and equipment. HIDTA also facilitates information sharing about particular cases and targets across jurisdictional lines. These much-needed resources will support ongoing efforts in Tazewell County and plug that county into a larger, multi-state enforcement network.”
Created by Congress in 1988, the HIDTA program serves as a catalyst for coordination among Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug trafficking regions of the United States. Law enforcement organizations working within HIDTAs assess drug-trafficking problems and design specific initiatives to decrease the production, transportation, distribution, and chronic use of drugs and money laundering. There are currently 28 HIDTAs located in 47 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
In July, the Obama Administration released a science-based drug policy that addresses the national drug challenge as a public health issue, not just a criminal justice issue. The 2014 National Drug Control Strategy is built upon the latest scientific research demonstrating that addiction is a chronic disease that can be successfully prevented and treated, and from which people can recover. The Strategy directs Federal agencies to expand community-based efforts to prevent drug use before it begins, empower healthcare workers to intervene early at the first signs of a substance use disorder, expand access to treatment for those who need it, support the millions of Americans in recovery, and expand “smart on crime” approaches to drug enforcement while reducing the stigma associated with substance use disorders.
For more information about the Office of National Drug Control Policy visit: http://www.whitehouse.gov/ondcp.
For information on the High Intensity Drug Trafficking Areas program visit: www.whitehouse.gov/ondcp/high-intensity-drug-trafficking-areas-program.
Virginia Man Sentenced to 12 Years in Prison for Sexual Assault in Southeast Washington-Defendant Laughed as EMTs Carried Unconscious Victim Out of Apartment-Read the Press Release
WASHINGTON – Jose Santos, Jr., 24, of Falls Church, Va., was sentenced today to 12 years in prison on charges stemming from a sexual assault of a woman in June of 2013, U.S. Attorney Ronald C. Machen Jr. announced.
Santos was found guilty by a jury in March 2014, in the Superior Court of the District of Columbia, of first-degree sexual abuse with aggravating circumstances. He was sentenced by the Honorable Rhonda Reid Winston. Following his prison term, Santos will be placed on five years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, Santos and the victim met during the week of the attack and had gotten together twice. On June 27, 2013, they agreed to get together a third time, and they socialized at an apartment in Southeast Washington with friends. In the midst of a consensual sexual encounter between Santos and the victim, Santos forcefully, and without the victim’s consent, grew violent and sexually assaulted her.
The victim’s injuries required several immediate surgeries, and she nearly died from having lost so much blood due to internal trauma. After the assault, Santos was seen bragging about what he had done by the emergency medical personnel who responded to the scene.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department’s Sexual Assault Unit. He also praised those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson, Paralegal Specialists D’Yvonne Key and Jason Manuel, and Litigation Technology Specialist Kimberly Smith. Finally, he commended the efforts of Assistant U.S. Attorneys Mervin A. Bourne, Jr., and Jeff Cook, who prosecuted the case at trial.
14-222Virginia Man Sentenced to 11 Years in Prison for Traveling to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – Chad Pyles, 23, of Arlington, Va., was sentenced today to 11 years in prison on federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Pyles pled guilty in February 2014 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Richard J. Leon. Upon completion of his prison term, Pyles will be placed on 25 years of supervised release.
According to the government's evidence, on Aug. 7, 2013, Pyles contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, Pyles engaged in e-mail and text message conversations with the undercover officer, whom he believed was the father of an under-aged girl. Pyles arranged with the undercover officer to meet for the purpose of engaging in sexual acts with that child.
During their communications, Pyles also sent the undercover officer five images of child pornography. On Sept. 10, 2013, Pyles traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested. Pursuant to a search of Pyles’s computer, law enforcement recovered several videos of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
14-220United States Hosts Global Alliance Against Child Sexual Abuse Online Ministerial ConferenceRead the Press Release
Today, United States Attorney General Eric Holder and European Union (EU) Commissioner for Home Affairs Cecilia Malmström welcomed high-level government officials representing over 30 members of the Global Alliance Against Child Sexual Abuse Online to a ministerial conference in Washington. The Global Alliance was launched by Attorney General Holder and Commissioner Malmström in December 2012 with the aim of uniting decision-makers all around the world to commit to more effectively identify and rescue child sexual abuse victims, investigate and prosecute online exploitation offenses, increase public awareness of the risks posed by children’s online activities, and reduce the amount of child sexual abuse images available online.
“Together, thanks to the hard work of the Global Alliance countries, this important, life-changing work has enabled us to intervene to rescue numerous child victims suffering at the hands of abusers; to arrest and prosecute those who did them harm; and to begin the long process of healing for each one of these survivors,” said Attorney General Holder. “I have no doubt that this work will continue – and be amplified – by the work we’re discussing today.”
The conference was divided into two sessions. The morning session featured global leaders and experts from the investigative, public policy, victim advocacy and legal arenas, who shared insight and experience from the cutting edge of combating online child exploitation. They addressed a variety of topics related to the shared policy targets of the Global Alliance, including: investigative tactics that enabled the takedown of a hidden, highly sophisticated global enterprise of distributors of child sexual abuse images; the latest technological and tactical breakthroughs in identifying previously unknown victims of child sexual abuse online; and novel approaches to partnering with the private sector to combat the online proliferation of child sexual abuse images. The afternoon ministerial session featured keynote speakers from law enforcement and from the private sector with deep experience in combating the online exploitation of children. In addition, ministerial or other high-level government officials from each nation in attendance highlighted notable accomplishments over the past two years related to the Alliance’s policy targets, as well as offering their vision for the Alliance’s future.
“The threat to young people posed by online sex predators is on the rise,” said Commissioner Malmström. “Challenges are constantly evolving. Every time a picture of an abused child is shown that child is being abused, over and over again. The global alliance shows our collective willingness to fight this hideous crime, something we can only do by working together. Our collective promises must become a reality.”
The states participating in the Alliance include Albania, Armenia, Australia, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Cambodia, Canada, Costa Rica, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Ghana, Greece, Hungary, Ireland, Israel, Italy, Japan, Kosovo, Latvia, Lithuania, Luxembourg, Malta, Mexico, Montenegro, the Netherlands, New Zealand, Nigeria, Norway, the Philippines, Poland, Portugal, the Republic of Korea, the Republic of Moldova, Romania, Serbia, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Thailand, Turkey, Ukraine, the United Kingdom and the United States.
Global Alliance: Greater Commitments for Better Results
At the conclusion of the conference, the 54 Alliance members endorsed a Ministerial Declaration that commits to addressing the transborder obstacles to identifying and rescuing victims of exploitation and to identifying and prosecuting offenders, by agreeing to pursue the following potential actions where and when possible, in full respect of due process and fundamental rights requirements:
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Enabling law enforcement among Global Alliance countries to gain timely access to electronic information and evidence held by Internet service providers and other repositories of electronic information that is material to the investigation and prosecution of child sexual abuse offenses through central authorities and other legally authorized channels, so that no nation becomes a safe haven for such information;
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Facilitating prompt and comprehensive exchange among law enforcement of information and evidence pertinent to child sexual abuse offenses featuring transborder offense conduct, victims, co-conspirators or evidence repositories;
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Enabling Internet service providers and other repositories of electronic information to provide information pertinent to the identification, apprehension, and ultimate prosecution of online child sexual abuse offenders to law enforcement pursuant to legal process in a manner and time frame consistent with reasonable investigative and prosecutorial demands; and
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Augmenting existing, collaborative and transborder efforts to identify and rescue victims of online child sexual abuse.
Background
The United States, through the Department of Justice, the Department of Homeland Security, the Postal Inspection Service and other government agencies, in collaboration with non-governmental organizations (NGOs), industry and international partners, has made progress in combating all forms of child sexual exploitation.
For example, this past March, the Department of Justice obtained a 30-year sentence against a United States citizen who served as an English teacher in China, using that position of authority to molest children under the age of 12 and to produce child pornography. In July, the department obtained a sentence of 120 years against a noncommissioned officer in the U.S. military who had drugged and sexually abused children, producing images and videos of that horrific abuse.
A recent U.S. operation targeting offenders exploiting children on a global scale secured convictions of 30 and 40 years, respectively, for Peter Truong and Mark Newton. Truong and Newton were residents of Queensland, Australia who brought their five-year-old son to the United States and France to meet with other men from various countries, so that these persons could record the sexual abuse of the minor victim. Over the course of this scheme to sexually exploit their son, Newton and Truong were also found to have engaged in a conspiracy to transport the child pornography produced during these encounters to individuals around the world, including individuals living in Florida, Virginia, and Indiana. It was this trafficking of materials that alerted United States Postal Inspectors and Indiana investigators to the case, launching the two year investigation of Newton, Truong, and the other men who conspired to abuse their son. Prosecutions of these other men are ongoing.
In addition, the U.S. Congress has funded the creation of state-level task forces, known as the Internet Crimes Against Children (ICAC) Task Forces, which help state and local agencies to develop successful, long-term responses to online child exploitation. These task forces are supported by the Department of Justice, not just with funding, but with training.
As threats to our children continue to evolve in every corner of the globe, the Department of Justice is committed to drawing upon the collective experience of every country, and the cooperation of every community, to protect our young citizens and to hold abusers accountable to the fullest extent of the law. For more information regarding the Justice Department’s efforts to combat child exploitation, please visit: http://www.justice.gov/criminal/ceos.
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U.S. Attorney Paul J. Fishman Announces Department of Justice Hiring Grants to Help Reduce Violence and Protect Schools in New JerseyRead the Press Release
Grants Awarded to Hire School Resource Officers, Reduce Violence
and Address Other Critical Law Enforcement NeedsNEWARK, N.J. – U.S. Attorney Paul J. Fishman, following yesterday’s announcement by the U.S. Department of Justice Office of Community Oriented Policing Services (COPS) of nearly $124 million in nationally awarded funding, today announced the specific funding awards for the District of New Jersey.
Ten cities and counties in New Jersey will receive more than $12.2 million in funding awards aimed at creating, and in some cases protecting, 87 law enforcement positions.
“Local law enforcement is in the streets every day working to reduce violent crime and create safer neighborhoods,” said U.S. Attorney Fishman. “This federal funding recognizes the importance of community policing as a critical piece of our crime prevention strategy. Putting more cops on the beat helps to build community trust, and that is one of the most effective things we can do to combat crime.”
The grantees and amounts awarded include:
Recipient
Total Officers Awarded
Estimated Award Amount
6
$750,000
Camden County Police Department
15
$3,248,200
Irvington, Township of
8
$1,000,000
Jersey City
15
$1,875,000
Long Branch Police Department
5
$625,000
Newark, City of
15
$1,875,000
Paramus Police Department
5
$623,592
Phillipsburg, Town of
1
$125,000
Trenton, City of
12
$1,500,000
Wildwood Police Department
5
$625,000
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community police officers. The program provides salaries and benefits for officer and deputy hires for three years.
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
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U.S. Attorney Joyce White Vance Addresses Alabama Prison Reform TaskforceRead the Press Release
MONTGOMERY – In a meeting of the Alabama Prison Reform Taskforce, U.S. Attorney Joyce White Vance affirmed the Department of Justice’s support for the taskforce to conduct the process of Justice Reinvestment. Since 2010, Vance has collaborated with state criminal justice agencies through the North Alabama Reentry Council in an effort to implement best practices to improve public safety by reducing criminal recidivism.
Vance told taskforce members that federal and state prosecutors are diligent in their prosecution of criminals, but, she added, "We can't just be tough on crime. We must also be smart."
“The Department of Justice does not support Justice Reinvestment only because it is cost-efficient," Vance said. "Justice Reinvestment reduces crime and lowers criminal recidivism by giving offenders the support and training to get off drugs and get jobs.”
The Alabama Prison Reform Taskforce is a legislatively created body of representatives from a multitude of Alabama’s governmental agencies, which is charged to work with the Council of State Governments to implement Justice Reinvestment policies.
Justice Reinvestment is a data-driven process where jurisdictions evaluate current practices in criminal justice and redesign policies to become more effective in reducing crime and costs. Justice Reinvestment initiatives have been implemented in 17 states, saving a projected $4.6 billion over 10 years, Vance said. For 2014 alone, the Department of Justice has committed $85 million for Justice Reinvestment initiatives.
"We have a narrow timeframe for action," Vance said. "But, through your action, we can achieve the level of success that other states have reaped."
Two Defendants Charged in Connection with Detroit-Area Home Health Kickback SchemeRead the Press Release
Two Detroit-area residents were arrested today on charges related to a Medicare fraud scheme in which they are alleged to have referred Medicare beneficiaries to home health care agencies in exchange for kickbacks.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office, and Acting Special Agent in Charge Jarod Koopman, of the Internal Revenue Service - Criminal Investigation (IRS-CI) Detroit Field Office, made the announcement.
Sophia Eggleston, 52, of Farmington Hills, Michigan, and Sekne Ali, 48, of Dearborn, Michigan, were charged in a four-count indictment, unsealed today, with conspiracy to violate the Anti-Kickback Statute and substantive violations of the Anti-Kickback Statute. The indictment alleges that both defendants recruited Medicare beneficiaries to two home health agencies in Oakland County, Michigan – Prestige Home Health Services Inc. and Royal Home Health Care Inc. – and were paid kickbacks for the patient referrals. Both agencies purported to provide in-home health care services to Medicare beneficiaries.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and James P. McDonald of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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Two Additional Ironworkers Plead GuiltyRead the Press Release
PHILADELPHIA- Two members of the Ironworkers Local 401, Edward Sweeney and Shawn Bailey, pleaded guilty today in United States District Court before the Honorable Michael Baylson. Sentencing hearings have been scheduled for January 27, 2015 and February 2, 2015, respectively.
Edward Sweeney, 53, of Philadelphia, PA pleaded guilty to RICO conspiracy, maliciously damaging property by means of fire, use of fire to commit a felony, maliciously damaging property by means of fire, conspiracy to maliciously damage property by means of fire, and attempted maliciously damaging property by means of fire. At the time, Sweeney was a business agent for the Ironworkers Local 401 and participated in a series of incidents on behalf of that union as part of the plan by the defendants to force non-union contractors to hire union labor. Specifically, Sweeney admitted that he participated in 10 incidents of extortion or attempted extortion. Sweeney further admitted his involvement in the Quaker Meetinghouse arson, an arson on Grays Avenue in Philadelphia, and an attempted arson in Malvern, as well as other episodes, all of which were in retaliation for the contractors’ failure to hire union ironworkers.
Shawn Bailey, 34, of Philadelphia, PA pleaded guilty to Hobbs Act Extortion for his participation in an extortion of a non-union contractor working on a warehouse on Grays Avenue in Philadelphia.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525- Three Sentenced for Involvement in Conspiracy to Export Firearms
The Justice Department Awards $5.1 Million to Hire Police Officers in Northern OhioRead the Press Release
The U.S. Department of Justice announced funding awards to seven cities and agencies in the district, aimed at creating, and in some cases protecting, 41 law enforcement positions, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio
Nearly $124 million will be awarded nationally from the Justice Department’s Office of Community Oriented Policing Services (COPS), including $5.1 million in the Northern District of Ohio.
The list of this year’s grantees includes:
- Austintown, $250,000 for two officers.
- Canton, $1,125,000 for nine officers.
- Cleveland, $1,875,000 for 15 officers.
- The Cleveland Metropolitan Housing Authority, $500,000 for four officers.
- Lima, $375,000 for three officers.
- Lorain, $625,000 for five officers.
- Warren, $375,000 for three officers.
“The Justice Department is proud to support the brave men and women serving and protecting our communities in the Northern District of Ohio,” Dettelbach said. “As we work together to develop innovative strategies to reduce firearms violence, dismantle gang activity and break cycle of violence, we need to help the people on the front lines to fight crime.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Six Defendants Charged for $6 Million Miami Home Health Care Fraud SchemeRead the Press Release
Six South Florida residents have been indicted for their alleged participation in a $6.2 million Medicare fraud scheme involving defunct home health care company Professional Medical Home Health LLC (Professional Home Health).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
On Sept. 25, 2014, a federal grand jury in Miami returned a 14-count indictment charging Ernesto Fernandez, 48, Dennis Hernandez, 32, Jose Alvarez, 47, and Joel San Pedro, 44, all of Miami; Alina Hernandez, 38, of West Palm Beach; and Juan Valdes, 37, of Palm Springs, for their roles in defrauding Medicare and soliciting and receiving health care kickbacks.
According to allegations in the indictment, the defendants recruited patients for Professional Home Health, a Miami home health care agency. As part of the scheme, the defendants solicited and received kickbacks from the owners and operators of Professional Home Health in exchange for providing beneficiaries for home health services that were not medically necessary or not provided. The defendants and their co-conspirators also allegedly falsified patient documentation to support the fraudulent billing. From December 2008 through February 2014, Medicare paid Professional Home Health more than $6.2 million for these fraudulent home health care claims.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two other individuals have already pleaded guilty for their roles in the scheme. Annarella Garcia, an owner of Professional Home Health, pleaded guilty to one count of conspiracy to commit health care fraud, and on Aug. 26, 2014, she was sentenced to serve 70 months in prison and ordered to pay $6,257,142 in restitution. Annilet Dominguez, an administrator of Professional Home Health, pleaded guilty to one count of conspiracy to commit health care fraud and three counts of false statements related to health care matters. On Sept. 29, 2014, she was sentenced to serve 68 months in prison and ordered to pay $6,257,149 in restitution.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS 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.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
# # #
Six Defendants Charged for $6 Million Miami Home Health Care Fraud SchemeRead the Press Release
Six South Florida residents have been indicted for their alleged participation in a $6.2 million Medicare fraud scheme involving defunct home health care company Professional Medical Home Health LLC (Professional Home Health).
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
On Sept. 25, 2014, a federal grand jury in Miami returned a 14-count indictment charging Ernesto Fernandez, 48, Dennis Hernandez, 32, Jose Alvarez, 47, and Joel San Pedro, 44, all of Miami; Alina Hernandez, 38, of West Palm Beach; and Juan Valdes, 37, of Palm Springs, for their roles in defrauding Medicare and soliciting and receiving health care kickbacks.
According to allegations in the indictment, the defendants recruited patients for Professional Home Health, a Miami home health care agency. As part of the scheme, the defendants solicited and received kickbacks from the owners and operators of Professional Home Health in exchange for providing beneficiaries for home health services that were not medically necessary or not provided. The defendants and their co-conspirators also allegedly falsified patient documentation to support the fraudulent billing. From December 2008 through February 2014, Medicare paid Professional Home Health more than $6.2 million for these fraudulent home health care claims.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two other individuals have already pleaded guilty for their roles in the scheme. Annarella Garcia, an owner of Professional Home Health, pleaded guilty to one count of conspiracy to commit health care fraud, and on Aug. 26, 2014, she was sentenced to serve 70 months in prison and ordered to pay $6,257,142 in restitution. Annilet Dominguez, an administrator of Professional Home Health, pleaded guilty to one count of conspiracy to commit health care fraud and three counts of false statements related to health care matters. On Sept. 29, 2014, she was sentenced to serve 68 months in prison and ordered to pay $6,257,149 in restitution.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS 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.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Seven Indicted for Fraudulently Requesting Travel Reimbursement Expenses from the Department of Veterans AffairsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veteran Affairs, Office of Inspector General (VA-OIG), announce the indictment of seven defendants for making false statements in connection with fraudulent requests for travel reimbursements, in violation of Title 18, United States Code, Section 1001(a)(2). Dennis L. Bradley, 52, of South Bay, Lee Dixon, 55, of Boca Raton, Terrence M. Fanning, 53, of Delray Beach, Harry J. Kapton, 70, of Greenacres, Kenneth Leggett, 55, of Palm Beach Gardens, Robert Moorer, Jr., 58, of West Palm Beach, and Randi D. Seltman, 45, of Riviera Beach, were arrested. All have been released on bond pending further court proceedings.
According to affidavits filed earlier this month in support of criminal complaints, the defendants submitted travel vouchers falsely claiming entitlement to reimbursement for expenses much greater than they incurred. Combined, the defendants received approximately $148,813 in VA travel reimbursement funds.
If convicted, each defendant faces a statutory maximum penalty of up to five years in prison, to be followed by up to a three-year term of supervised release, in addition to payment of restitution.
Mr. Ferrer commended the investigative efforts of the VA-OIG. The case is being prosecuted by Assistant U.S. Attorney Brandy Galler.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.
- San Benito Resident Gets More Than 11 Years for Moving Cocaine
Real Estate Investors Plead Guilty in Widening Multimillion Dollar Loan-Fraud and Kickback SchemeRead the Press Release
SAN DIEGO - Grant McCollough, a real estate investor and owner of Tycoon Investments, and his wife, Marisa McCollough, pleaded guilty today to participating in a conspiracy to defraud mortgage lenders and impede the Internal Revenue Service.
As part of their conspiracy, the McColloughs recruited investors to act as “straw” buyers and arranged for false information to be submitted to mortgage lenders in support of the buyers’ loan applications. The McColloughs also fraudulently inflated the value of the homes and disguised the source of the down payments, in order to skim funds from the fraudulent transfer of property among their co-conspirators. They also admitted hiding their skimmed profits from the IRS.
Over a dozen of the fraudulent mortgages were arranged by coconspirator Donald Totten, a mortgage loan officer and broker operating from Rancho Santa Fe. Totten pleaded guilty in February 2014 to mortgage fraud, bankruptcy fraud, and filing a false tax return that failed to report more than $3 million in taxable income. Totten operated the businesses “Money World” and “Integrated Home Loans,” and specialized in brokering a particularly toxic stated-income, stated-asset “negative amortization” loan product, which allowed borrowers to make monthly payments less than the interest charged over the same period and without paying down the principal balance, so that the monthly payments were low but the outstanding balance of the loan increased over time. As part of his plea agreement, Totten admitted that defaults in the mortgages he brokered caused losses of between $2.5 million and $20 million. Totten, who is in custody, will be sentenced on October 20, 2014, by U.S. District Judge Michael M. Anello.
McCollough’s business partner at Tycoon Investments, Jason Kent, was also charged in the scheme. On July 21, 2014, Kent pleaded guilty to wire fraud, and admitted assisting Totten, Grant McCollough, Marisa McCollough, and others with carrying out this mortgage and kickback scheme. Kent’s case was transferred to the District of Hawaii and he is scheduled to be sentenced on February 26, 2015, before U.S. District Judge Leslie E. Kobayashi.
As admitted as part of the guilty pleas, the McColloughs arranged for loan applications to include made-up employment (including false employment at Tycoon Investments) and represented that borrowers earned substantial salaries from the company when, in reality, Tycoon Investments had no employees. In addition, with Totten’s help, the McColloughs and Kent would falsely represent that they jointly owned a bank account at Wells Fargo Bank, to support false claims by Marisa McCollough and Kent that they held significant assets. In reality, the funds were Totten’s. During the conspiracy, Marisa McCollough worked at Wells Fargo Bank, a position she used to help falsify records about the loan applicants’ account balances.
With Totten’s help, Marisa McCollough bought a $3.4 million oceanfront home in Lahaina, Hawaii. In order to qualify, she falsely claimed that she earned $90,000 per month, had close to $700,000 in savings, and made a down payment of $630,000. This was all false, and in fact Ms. McCollough did not contribute any of her own funds to the purchase. The McColloughs lived in the home for several years, but never made the mortgage payments they owed.
The McColloughs’ guilty pleas were taken before U.S. Magistrate Judge Ruben B. Brooks. They are scheduled to be sentenced by Judge Anello on January 5, 2015 at 9 a.m.
In addition to these defendants, Totten’s employee and loan processor, Shellie Lockard, also pleaded guilty to participating in a conspiracy to defraud mortgage lenders. According to her plea agreement, Lockard processed fraudulent loans for Totten, and earned commissions of approximately $1,000 per loan. She was sentenced on September 15, 2014, by Judge Anello, and ordered to serve six months in home detention.
According to court documents, many of the fraudulently-obtained mortgage loans subsequently defaulted, causing mortgage lenders and secondary purchasers, including Fannie Mae and Freddie Mac, to suffer significant losses as a result of the conspiracy. Fannie Mae and Freddie Mac are government-sponsored enterprises with a mission to provide liquidity, stability, and affordability to the U.S. housing market. Both enterprises assist mortgage lenders by purchasing the loans they originate, enabling the lenders to replenish their funds to finance additional mortgage loans for American homebuyers. The statements borrowers make in loan applications are an important factor in Fannie Mae’s and Freddie Mac’s determination whether to purchase a mortgage loan.
“This kind of fraud has a ripple effect through our nation’s economy,” said U.S. Attorney Laura Duffy. “We will continue to investigate and prosecute those who defraud the mortgage market.”
FBI Acting Special Agent in Charge, Robert Howe, commented, “FBI investigations such as this expose the vulnerabilities in the mortgage industry and how criminals motivated by greed will stop at nothing to support their lavish lifestyles. This kind of dishonesty is profitable only in the short run, and ultimately leads to arrest and prosecution.”
IRS Criminal Investigation’s Special Agent in Charge Erick Martinez stated: “Today Grant McCollough and Marisa McCollough are being held accountable for their role in defrauding mortgage lenders and impeding the IRS. IRS Criminal Investigation is working hard to detect income from illegal sources intentionally hidden from the IRS and ensure that all forms of income are taxed.”
DEFENDANTS Case Number: 14CR2787-MMA Grant McCollough Age: 38 Kearney, Nebraska Marisa McCollough Age: 36 Kearney, Nebraska CHARGESConspiracy to commit wire fraud and defraud the United States, in violation of 18 U.S.C. § 371.
Maximum Penalties: Five years in prison, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, restitution.
DEFENDANT Case Number: 13CR2941-MMA Donald Totten Age: 58 Oakland, California CHARGESConspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349.
Maximum Penalties: 30 years’ imprisonment, $1,000,000 fine or twice the gain or loss resulting from the offense, $100 special assessment, restitution.
Filing a false tax return, in violation of 26 U.S.C. § 7206(1)
Maximum Penalties: 3 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
Bankruptcy fraud, in violation of 18 U.S.C. § 152
Maximum Penalties: 5 years’ imprisonment, $250,000 fine or twice the gain or loss resulting from the offense, $100 special assessment, restitution.
DEFENDANT Case Number: 14CR1667-MMA Jason Kent Age: 37 Lahaina, HI CHARGESWire fraud affecting a financial institution, in violation of 18 U.S.C. § 1343.
Maximum Penalties: 30 years’ imprisonment, $1,000,000 fine or twice the gain or loss resulting from the offense, $100 special assessment, restitution.
DEFENDANT Case Number: 13CR2772-MMA Shellie Lockard Age: 44 Ventura, CA CHARGESConspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349
INVESTIGATING AGENCIES
Maximum Penalties: 30 years’ imprisonment, $1,000,000 fine or twice the gain or loss resulting from the offense, $100 special assessment, restitution.Federal Bureau of Investigation
Federal Housing Finance Agency – Office of Inspector General
Internal Revenue Service, Criminal InvestigationPhiladelphia Business Owner Found Guilty of Hiring Hitman, Related CrimesRead the Press Release
CAMDEN, N.J. – A federal jury in Camden convicted a Philadelphia business owner today for arranging a murder for hire that led to a shooting in Atlantic City, New Jersey, U.S. Attorney Paul J. Fishman announced.
Ronald Galati, 63, was found guilty of all four counts in the indictment against him: conspiracy to commit murder for hire; conspiracy to possess and use a firearm during a crime of violence; murder for hire; and aiding and abetting the possession and use of a firearm during a crime of violence.
Galati was convicted following a two-week trial before U.S. District Judge Joseph H. Rodriguez in Camden federal court. The jury deliberated for five hours before returning its verdict.
“Ronald Galati hired two men to kill his daughter’s boyfriend outside his home,” said U.S. Attorney Fishman. “This reprehensible conduct has no place in in civilized society. We are grateful to the jury for bringing Galati to justice.”
According to documents in this case and the evidence at trial:
Beginning sometime before June 2013, Galati began saying that he was going to kill his friend, Andrew Tuono. Galati told witnesses he would “kill him myself, I will strangle him, I will poke his eyes out” and “I am going to stab him right in the forehead with this thing,” referring to a pointed object. In June 2013, Galati, members of Galati’s family and associates had dinner with Tuono at a restaurant in Northfield, New Jersey. During dinner, Galati took Tuono into the kitchen and threatened to kill him.
Galati owned and operated American Collision & Automotive Center in Philadelphia, where Jerome Johnson, 45, also of Philadelphia, sometimes worked for him. Galati and Johnson approached two associates, Ronald Walker, 49, of Philadelphia, and Alvin Matthews, 47, and enlisted them to kill Tuono in a manner that would not implicate Galati. Galati promised to pay Walker $20,000 to shoot and kill Tuono.
Galati provided Johnson with several addresses associated with the intended victim. Johnson and Walker went to Tuono’s in Philadelphia.
Johnson gave Matthews a Colt .25 caliber semi-automatic handgun he had obtained near 60th Street in Philadelphia. On Nov. 30, 2013, Johnson telephoned Walker and Matthews and arranged to meet them. Galati called Johnson and told him that Tuono was in New Jersey.
Thereafter, Johnson drove Walker and Matthews to the area where Tuono lived in Atlantic City. During the drive, Johnson told Walker and Matthews that if there was a woman with Tuono, she was not to be harmed. While in Johnson’s vehicle, Matthews gave Walker the gun Johnson had given Matthews the day before. Johnson then dropped Walker and Matthews off around the corner from Tuono’s home.
Walker and Matthews then stalked Tuono from an alley adjacent to the residence. When Tuono and a woman came out of the house, Walker and Matthews approached them and got Tuono’s attention. Walker shot Tuono multiple times. The victim was transported by ambulance from the scene of the shooting to Atlantic City Medical Center for emergency surgery, where he spent six days.
Walker and Matthews were arrested as they fled from the scene.
The two conspiracy counts and the murder for hire count each carry a maximum potential penalty of 20 years in prison. The aiding and abetting firearms count carries a mandatory minimum consecutive prison sentence of 10 years and a maximum of life in prison. Each count also carries a maximum $250,000 fine. A date for sentencing has not yet been set.
Walker, Matthews and Johnson have each pleaded guilty to related offenses and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Aaron T. Ford; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge George P. Belsky; and detectives of the Atlantic City Police Department, under the direction of Chief Henry White, for the investigation the case. He also thanked the Philadelphia District Attorney’s Office, under the direction of District Attorney R. Seth Williams, detectives of the Philadelphia Police Department, under the direction of Commissioner Charles Ramsey; and troopers of the Pennsylvania State Police, under the direction of Commissioner Frank Noonan, for their assistance.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Anthony Voci Esq., PhiladelphiaOmar Gonzalez Indicted on Federal and Local Charges for Entering White House Grounds with A WeaponCharges Follow Sept. 19, 2014 IncidentRead the Press Release
WASHINGTON – Omar Gonzalez, 42, formerly of Copperas Cove, Texas, was indicted by a federal grand jury today on charges stemming from an incident on Sept. 19, 2014, in which he climbed a fence and ran toward and into the White House while armed with a folding knife.
The indictment was announced by U.S. Attorney Ronald C. Machen Jr. and Kathy A. Michalko, Special Agent in Charge of the Washington Field Office, U.S. Secret Service.
The grand jury in the District of Columbia returned a three-count indictment against Gonzalez, who has been in custody since his arrest on Sept. 19, 2014. Following his arrest, Gonzalez was charged with unlawfully entering a restricted building or grounds, while carrying a deadly or dangerous weapon. The grand jury today indicted him for that federal offense, as well as two additional charges alleging violations of District of Columbia law: carrying a dangerous weapon outside a home or place of business, and unlawful possession of ammunition.
The federal charge carries a statutory maximum of 10 years in prison. The D.C. charge of carrying a dangerous weapon carries a statutory maximum of five years in prison, and the charge of unlawful possession of ammunition carries a potential maximum of a year of incarceration.
According to the government’s evidence, on Sept. 19, 2014, at about 7:19 p.m., Gonzalez climbed over the north fence of the White House. An officer with the U.S. Secret Service ran toward him and yelled at him to stop. Gonzalez, however, ran toward the White House. Moments later, he went through the north doors and entered the building. He was apprehended inside the White House. Gonzalez was searched and a black folding knife was discovered in his right front pants pocket. The knife had a serrated blade that was three and one-half inches long.
After Gonzalez’s arrest, he gave oral consent to search his vehicle, which was located on Constitution Avenue NW. The vehicle contained hundreds of rounds of ammunition, both in boxes and in magazines, two hatchets, and a machete.
Gonzalez is scheduled to appear on Oct. 1, 2014, before Magistrate Judge Deborah A. Robinson in the U.S. District Court for the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the U.S. Secret Service. It is being prosecuted by Assistant U.S. Attorneys David Mudd and Thomas A. Gillice, of the National Security Section of the U.S. Attorney’s Office for the District of Columbia.
14-221Ohio Landlord Agrees to End Discriminatory Housing PracticesRead the Press Release
The Justice Department today announced that a North Ridgeville, Ohio, landlord, Emil Bagi, and his management company, Ridgeway Management Ltd., have entered into a consent decree and have agreed pay $30,000 to resolve claims that they discriminated on the basis of race at the Ridge Plaza Apartments, a 36 unit apartment complex they own and operate in North Ridgeville, Ohio. The settlement must still be approved by the federal district court in the Northern District of Ohio.
According to documents filed along with the settlement agreement the department alleges that the defendants discriminated against African Americans by quoting higher rental and application fee rates to them than to white apartment seekers, and by refusing to show African Americans vacant units when they visited while showing such units to white apartment seekers who visited the complex. The complaint is based on evidence obtained by the department’s fair housing testing program. The department sent African-American and white testers posing as prospective renters to the complex and the African-American testers were quoted higher rents and application fees than the white testers. African-American testers were also told that they could not view a unit at that time, while similarly situated white testers were shown units. The department also alleges that since acquiring ownership of the property in 1995, the defendants have never leased a unit to an African-American tenant.
Under the terms of the settlement, the defendant wills establish a settlement fund of $20,000 to compensate persons harmed by the alleged discrimination and a $10,000 civil penalty to the United States. In addition, the defendants will establish non-discriminatory rental policies, obtain fair housing training, and submit to reporting and monitoring requirements for the three year term of the settlement.
“It is simply unacceptable for a landlord to make renting an apartment more difficult and more expensive because of a person’s race,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.
“The Department of Justice is committed to enforcing the Fair Housing Act using every tool at our disposal,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio. “This landlord got caught by fair housing testers trying to charge higher rent to minority applicants. He failed the test miserably – and now he has to pay the price. Other landlords should keep that in mind when they are showing properties.”
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination at Ridge Plaza should contact the Justice Department at 1-800-896-7743 or by email at [email protected]. Persons who believe they have experienced housing discrimination elsewhere may contact the Justice Department or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Officer of Middlesex, N.J. Union Admits Accepting Bribes to Circumvent Collective Bargaining AgreementRead the Press Release
NEWARK, N.J. – A union officer for Local 594 of the Laborers International Union of North America (LIUNA) today admitting accepting $8,000 in bribes to allow a demolition contractor to use non-union workers on a New Jersey building project in violation of their collective bargaining agreement (CBA), U.S. Attorney Paul J. Fishman announced.
John Adams, 58, of Bridgewater, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of accepting between $5,000 and $10,000 in bribes from an employer working on the New York Times building in Edison, New Jersey.
According to the documents filed in this case and statements made in court:Adams is the business manager for Laborers Local 594 in Middlesex County, New Jersey. When the New York Times building in Edison was renovated in 2009, DAMICO Inc. was hired to do interior demolition work. DAMICO was obligated to use all union workers pursuant to a CBA with Local 594. A collective agreement regulates employee duties, employer responsibilities, and health care and pension benefits. Adams was responsible for making sure DAMICO followed the CBA.
During the 10-month period, ADAMS was paid on four occasions approximately $8,000 in total to permit DAMICO to use up to 18 non-union workers on a weekly basis. Consequently, DAMICO cost Local 594 union dues and benefit plan contributions.
As the project was concluding, LIUNA officials learned of the CBA violations by DAMICO and filed an arbitration claim against the company. In May 2013, an arbitrator ruled in favor of the union and charged DAMICO’s owners $500,000 in restitution for lost wages and benefit plan remittances. Adams is responsible, along with the DAMICO owners, for repaying $204,000 in losses to the union’s benefit plan.
The bribery charge to which Adams pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 5, 2015.U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea.
The government is represented by V. Grady O’Malley, Senior Litigation Counsel of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
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Defense counsel: William J. Hughes Esq., Atlantic City, New Jersey
Adams, John Information
North Ridgeville Landlord Agrees to End Discriminatory Housing PracticesRead the Press Release
The Justice Department today announced that a North Ridgeville, Ohio, landlord, Emil Bagi, and his management company, Ridgeway Management Ltd., have entered into a consent decree and have agreed pay $30,000 to resolve claims that they discriminated on the basis of race at the Ridge Plaza Apartments, a 36 unit apartment complex they own and operate in North Ridgeville, Ohio. The settlement must still be approved by the federal district court in the Northern District of Ohio.
According to documents filed along with the settlement agreement the department alleges that the defendants discriminated against African Americans by quoting higher rental and application fee rates to them than to white apartment seekers, and by refusing to show African Americans vacant units when they visited while showing such units to white apartment seekers who visited the complex. The complaint is based on evidence obtained by the department’s fair housing testing program. The department sent African-American and white testers posing as prospective renters to the complex and the African-American testers were quoted higher rents and application fees than the white testers. African-American testers were also told that they could not view a unit at that time, while similarly situated white testers were shown units. The department also alleges that since acquiring ownership of the property in 1995, the defendants have never leased a unit to an African-American tenant.
Under the terms of the settlement, the defendant wills establish a settlement fund of $20,000 to compensate persons harmed by the alleged discrimination and a $10,000 civil penalty to the United States. In addition, the defendants will establish non-discriminatory rental policies, obtain fair housing training, and submit to reporting and monitoring requirements for the three year term of the settlement.
“It is simply unacceptable for a landlord to make renting an apartment more difficult and more expensive because of a person’s race,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.
“The Department of Justice is committed to enforcing the Fair Housing Act using every tool at our disposal,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio. “This landlord got caught by fair housing testers trying to charge higher rent to minority applicants. He failed the test miserably – and now he has to pay the price. Other landlords should keep that in mind when they are showing properties.”
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination at Ridge Plaza should contact the Justice Department at 1-800-896-7743 or by email at [email protected]. Persons who believe they have experienced housing discrimination elsewhere may contact the Justice Department or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Nampa Man Sentenced to 63 Months in Prison for Drug Charge and Obstruction of JusticeRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Timothy Alan Butterbaugh, 46, of Nampa, Idaho, was sentenced to 63 months in prison followed by four years of supervised release for distribution of methamphetamine. Chief U.S. District Judge B. Lynn Winmill sentenced Butterbaugh at the federal courthouse in Boise. Butterbaugh pleaded guilty to distribution of methamphetamine on November 7, 2013. Butterbaugh later admitted that he obstructed justice by conspiring with others in an attempt to intimidate or retaliate against the informant that participated in the drug transaction.
According to the plea agreement and information presented in court, Butterbaugh admitted to selling methamphetamine on June 27, 2013, to a person who was assisting law enforcement as a confidential informant. After he was arrested, Butterbaugh informed others of the identity of the informant and conspired with others to intimidate, or retaliate against, the informant. The informant was never actually harmed. During
During the court hearing today, Judge Winmill found that Butterbaugh’s conduct amounted to an obstruction of justice, which resulted in a higher advisory sentencing guideline range. Judge Winmill also ordered Butterbaugh to have no contact with gang members, including outlaw motorcycle gangs, upon release from prison.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Michigan Home Health Agency Owner Charged in Connection with $2.6 Million Home Health Care SchemeRead the Press Release
An owner of a Detroit-area home health agency has been charged for her alleged role in a $2.6 million home health care scheme involving the payment of kickbacks to patient recruiters and physicians for the referral of Medicare beneficiaries.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office, and Special Agent in Charge Jarod Koopman of the Internal Revenue Service – Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.
Rahmat Begum, 48, of Farmington Hills, Michigan, was charged in a six-count indictment, unsealed today, with conspiracy to commit wire fraud, false statements relating to health care matters, conspiracy to violate the Anti-Kickback Statute and money laundering.
According to allegations in the indictment, Begum co-owned and operated Empirical Home Health Care Inc., an Oakland County, Michigan, home health agency that purported to provide in-home health care services to Medicare beneficiaries. Begum allegedly paid kickbacks to patient recruiters and physicians for their referral of Medicare beneficiaries to Empirical Home Health Care. The indictment also alleges that Begum laundered the proceeds of the scheme through a company known as Focal Project Management Consulting.
According to the indictment, Medicare paid Empirical approximately $2,661,331 for false and fraudulent home health care claims where the referrals were obtained through the payment of kickbacks.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and James McDonald of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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Miami-Dade County Resident Sentenced for Identity Theft Schemes Involving Fraudulent Social Security Benefits and Income Tax RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General (OIG), Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Thervil Alcinor, 34, of Miami, was sentenced before U.S. District Judge Cecilia M. Altonaga to 88 months in prison, followed by three years of supervised release.
Alcinor previously pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, from January 2013 through May 2014, Alcinor was involved in the use of personal identifying information (names, dates of birth, and social security numbers belonging to real people) to file fraudulent applications for Social Security Retirement Insurance Benefits (RIB) and Social Security Disability Insurance Benefits (DIB), and to file fraudulent income tax returns with the IRS claiming false refunds.
Court documents state that Alcinor was involved in establishing online accounts on the Social Security Administration website, MySSA.gov, for already-existing RIB or DIB beneficiaries to redirect RIB and DIB payments to accounts (often prepaid debit card accounts) controlled by him. Law enforcement identified 945 fraudulently established MySSA accounts, all with similarly concocted fraudulent email addresses. The fraudulent claims resulted in $700,462 in fraudulent RIB and DIB payments.
According to court documents, Alcinor was also involved in the filing of fraudulent tax returns claiming refunds from the IRS which he directed into accounts (often prepaid debit card accounts) controlled by him. Specifically from April 2012 through September 2013, 54 fraudulent income tax refunds, totaling $174,862.20, were identified by H&R Block records as having been deposited into accounts associated with Alcinor. An additional 14 fraudulent tax refunds, totaling $31,137.28, were connected to the scheme by IRS.
Mr. Ferrer commended the investigative efforts of SSA-OIG, IRS-CI and FBI. The case was prosecuted by Assistant U.S. Attorney Frank R. Maderal.
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.
Miami Home Health Care Agency Owner Indicted in $8 Million Medicare Fraud SchemeRead the Press Release
The owner of a Miami home health care agency has been arrested in connection with an $8 million health care fraud scheme involving Acclaim Home Healthcare Inc.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
In an indictment returned on Sept. 25, 2014, and unsealed today, Orelvis Olivera, 45, of Miami, was charged with conspiracy to commit health care and wire fraud, conspiracy to pay and receive kickbacks and paying and receiving kickbacks in connection with a federal health care benefit program.
According to the indictment, Acclaim Home Health was a Miami-based home health care agency that purported to provide home health care and physical therapy services to Medicare beneficiaries. Olivera allegedly paid kickbacks to patient recruiters in return for the recruiters’ referral of Medicare beneficiaries to Acclaim Home Health. In addition, Olivera allegedly solicited and received kickbacks in return for referring Medicare beneficiaries to other Miami-based home health care agencies.
As alleged in the indictment, from May 2008 to June 2014, Acclaim Home Health billed Medicare approximately $8 million for fraudulent claims, and was paid approximately $7.3 million by Medicare for those claims.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Kelly Graves of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
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Men Sentenced for Passing Counterfiet CurrencyRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R. Brown, announces that CHRIS CHARLES CHAMBERS and SCOTT THOMAS TOTO have been sentenced passing counterfeit United States currency in violation of Title 18, United States Code, Section 471. Judge William Steele sentenced Chambers to serve 30 months imprisonment and Toto to serve 33 months imprisonment. Both defendants have to pay a $100 SA, restitution and serve three years supervised release after their release from incarceration.
This case was investigated by Baldwin County Sheriff’s Office and the United States Secret Service. The case was prosecuted by the United States Attorney=s Office for the Southern District of Alabama, AUSA Maria E. Murphy.
Man Who Fled Newark Bank Robbery in A Taxi Pleads GuiltyRead the Press Release
NEWARK, N.J. - An Essex County man who left the scene of the crime by hailing a cab admitted today to robbing the New York Community Bank in Newark, U.S. Attorney Paul J. Fishman announced.
Willie Chestnut Jr., 61, of Newark, pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of bank robbery.
According to documents filed in this case and statements made in court:
Chestnut robbed the New York Community Bank in Newark on Oct. 11, 2013, by intimidating the teller and another bank employee who attempted to intercede. He approached the teller and told her he needed to make a withdrawal. After the teller handed him a withdrawal slip, Chestnut demanded bills from the top teller drawer.
Chestnut was arrested by officers of the Newark Police Department shortly after the robbery fleeing the scene in a taxi cab, wearing the same clothes he wore during the robbery, with the stolen money and the withdrawal slip in his pocket.
The bank robbery count carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gain or loss from the offense. Sentencing is currently scheduled for Jan. 5, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Newark Police Department for its contribution.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Assistant Federal Public Defender Lisa Mack Esq., NewarkChestnut Willie Jr Information.pdf
Man Sentenced to Prison for Selling Counterfeit Baseball Cards, Including Babe Ruth and Mickey Mantle FakesRead the Press Release
A Pennsylvania man was sentenced to nearly three years in prison for selling counterfeit baseball cards of Mickey Mantle, Babe Ruth and others on eBay, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Steven Norris, 39, of Milton, Penn., was sentenced to 32 months in prison after pleading guilty earlier this year to three counts of mail fraud. Norris was also ordered to pay restitution totaling $49,660.
Norris’ brother and co-defendant, Scott Norris, 40, of Brecksville, was previously sentenced to four years of probation for his role in the offense and was ordered to pay restitution of $28,160.
“These defendants used the legends of America’s pastime to fraudulently get tens of thousands of dollars,” Dettelbach said. “This prison sentence should send a message to would-be fraudsters, whether they use baseball cards or elaborate investment schemes to rip off the public.”
From 2006 through 2012, Steven and Scott Norris advertised various baseball cards for sale on eBay. They utilized numerous email addresses to list the cards for sale. The cards, if genuine, would have been rare and valuable, including 1952 Mickey Mantle cards and 1933 Babe Ruth cards, according to court documents.
The Norris’ accepted payments from bidders but failed to deliver the cards as required. In some instances, Steven and Scott Norris sent counterfeit or “reprinted” cards to successful bidders rather than the genuine cards advertised for sale, according to court documents.
In other instances, Steven and Scott Norris contacted individuals who bid on the cards, represented the high bidder was unable to complete the transaction, and asked if the “runner up” bidder was interested in buying the item. They would then negotiate a sales price and direct the buyer to mail a cashier’s check to an address in Brecksville owned by the defendants’ parents. After receiving payment, Steven and Scott Norris would fail to deliver the items in question or sent counterfeit or “reprinted” baseball cards to the buyers, according to court documents.
As a result of the scheme, individual bidders and PayPal suffered losses of approximately $60,310, according to court documents.
The case was prosecuted by Assistant United States Attorney Robert W. Kern following an investigation by the United States Secret Service and the Brecksville Police Department.
Man Sentenced to 35 Years in Prison for Child Pornography OffensesRead the Press Release
TUCSON, Ariz. – On Sept. 29, 2014, Howard Wesley Cotterman, 73, of Truckee, Calif., was sentenced by Chief U.S. District Judge Raner C. Collins to serve 35 years in prison for child exploitation offenses. Following a trial in June 2014, Cotterman was found guilty of two counts of production of child pornography, one count of transportation of child pornography, one count of possession of child pornography, and one count of importation of obscene materialCotterman’s term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender.
On June 27, 2007, Cotterman was indicted by a federal Grand Jury. An investigation revealed that Cotterman sexually abused a young girl multiple times over a two year period, beginning when she was seven years old. The photographs and videos memorializing the abuse were discovered on Cotterman’s laptop after he crossed the international border from Mexico into Arizona. Before his arrest, Cotterman fled to Australia, requiring that he be extradited back to the United States for prosecution.
Cotterman was convicted in 1992 in California of thirty-three offenses, which included two counts of use of a minor in sexual conduct, two counts of lewd and lascivious conduct upon a child, and three counts of annoy/molest a child.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by Homeland Security Investigations, Tucson. The prosecution was handled by Carin C. Duryee and Carmen F. Corbin, District of Arizona, Tucson.
CASE NUMBER: CR-07-01207-TUC-RCC
RELEASE NUMBER: 2014-055_Cotterman- Long-Time Nigerian Fugitive Ordered to Prison for Importing Heroin into the U.S.
Lebanon Man Pleads Guilty to Firearm ChargeRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Lawrence Young, 54, of Lebanon, Maine, pled guilty today in U.S. District Court before Judge
D. Brock Hornby to being a felon in possession of a firearm.According to court records, Young was discovered hunting with a 16-gauge shotgun in
the area of Acton, Maine on May 1, 2014. Young was prohibited from possessing firearms on
account of two prior felony convictions.
Young faces up to 10 years in prison and a $250,000 fine. He will be sentenced after
completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Maine State Police and the Bureau of Alcohol,
Tobacco, Firearms and Explosives.Lawrence Woman Pleads Guilty to Embezzling More Than $750,000Read the Press Release
TOPEKA, KAN. - A Lawrence woman pleaded guilty Tuesday to embezzling more than $750,000 from her employer, U.S. Attorney Barry Grissom said.
Sharon Ann Holladay, 58, Lawrence, Kan., pleaded guilty to one count of embezzlement. In her plea, she admitted the crime occurred while she worked as the officer manager for Westheffer Company, a Lawrence business that manufactures and sells agricultural chemical spray equipment.
Holladay used her access to the company’s financial system to transfer money from the operations account to a petty cash fund she controlled. She also used her access to the payroll system to give herself unauthorized bonuses and commissions. In addition, she made unauthorized purchases on the company’s credit card.She embezzled a total of between $750,000 and $1 million from the company.
Sentencing will be set for a later time. She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the Lawrence Police Department, the FB I and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Largo Man Sentenced to More Than Eight Years for Accessing and Viewing Child PornographyRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Eric Thomas (37, Largo) to eight years and one month in federal prison for accessing with the intent to view child pornography. Thomas was indicted on September 25, 2013. A federal jury found him found guilty on June 12, 2014.
According to testimony and evidence presented at trial, on July 21, 2012, Thomas’s then wife discovered evidence that he had been using the couple’s home computer to look at child pornography on the Internet. She notified law enforcement. A subsequent search and forensic analysis of the computer revealed that more than 850 images of child pornography had been deleted from the computer. Thomas had taken considerable steps to conceal his activities and remove Internet history and child pornography files from his computer.
This case was investigated by the Federal Bureau of Investigation, Largo Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Josephine W. Thomas.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Justice Department Settles Allegations of Disability-Based Housing Discrimination with West Virginia DeveloperRead the Press Release
The Justice Department announced today that developer Douglas Pauley and entities affiliated with him have agreed to pay $110,000 and make approximately $1.7 million in retrofits required to remove accessibility barriers at 30 apartment complexes, involving more than 750 units in West Virginia. The parties’ agreement will settle the United States’ claims that defendants had violated the Fair Housing Act and the Americans with Disabilities Act by building the complexes with a variety of features that made them inaccessible to persons with disabilities. The United States District Court for the Southern District of West Virginia approved the settlement yesterday.
Under the terms of the agreement, Pauley, as General Partner of 30 limited liability partnerships, must take extensive actions to make the complexes accessible to persons with disabilities, including wheelchair users. These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb ramps to allow persons with disabilities to access the sidewalks from the parking areas, replacing cabinets in bathrooms and kitchens to provide sufficient room for wheelchair users, and reducing door threshold heights. In addition, defendants will pay $100,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations and $10,000 as a civil penalty.
“The Fair Housing Act protects the rights of persons with disabilities to have equal opportunities to enjoy the housing of their choice,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “And this comprehensive resolution will ensure equal access to persons with disabilities at 30 apartment complexes and will compensate those injured by the failure to provide accessible housing.”
“Housing is a fundamental human need, and it’s deeply unfair to deny persons with disabilities equal access to it,” said Booth Goodwin, United States Attorney for the Southern District of West Virginia. “Thanks to this case, the developer will be required to devote nearly $2 million to correcting and compensating for the harm that he and his companies have caused. That’s an important victory for West Virginians with disabilities.”
Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement. Notices of the settlement and a list of subject properties will be published in the Charleston Gazette. Persons who believe they were subjected to unlawful discrimination at one of those properties either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993 or e-mail the Justice Department at [email protected].
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Justice Department Settles Allegations of Disability-based Housing Discrimination with West Virginia DeveloperRead the Press Release
Note: The consent order is available here: Pauley Consent Order
_________________________________________________________________________
FOR IMMEDIATE RELEASE CRT
TUESDAY, SEPTEMBER 30, 2014 (202) 514-2007
WWW.JUSTICE.GOV TTY (866) 544-5309WASHINGTON – The Justice Department announced today that developer Douglas Pauley and entities affiliated with him have agreed to pay $110,000 and make approximately $1.7 million in retrofits required to remove accessibility barriers at 30 apartment complexes, involving more than 750 units in West Virginia. The parties’ agreement will settle the United States’ claims that defendants had violated the Fair Housing Act and the Americans with Disabilities Act by building the complexes with a variety of features that made them inaccessible to persons with disabilities. The United States District Court for the Southern District of West Virginia approved the settlement yesterday.
Under the terms of the agreement, Pauley, as General Partner of 30 limited liability partnerships, must take extensive actions to make the complexes accessible to persons with disabilities, including wheelchair users. These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb ramps to allow persons with disabilities to access the sidewalks from the parking areas, replacing cabinets in bathrooms and kitchens to provide sufficient room for wheelchair users, and reducing door threshold heights. In addition, defendants will pay $100,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations and $10,000 as a civil penalty.
“The Fair Housing Act protects the rights of persons with disabilities to have equal opportunities to enjoy the housing of their choice,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “And this comprehensive resolution will ensure equal access to persons with disabilities at 30 apartment complexes and will compensate those injured by the failure to provide accessible housing.”
“Housing is a fundamental human need, and it’s deeply unfair to deny persons with disabilities equal access to it,” said Booth Goodwin, United States Attorney for the Southern District of West Virginia. “Thanks to this case, the developer will be required to devote nearly $2 million to correcting and compensating for the harm that he and his companies have caused. That’s an important victory for West Virginians with disabilities.”
Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement. Notices of the settlement and a list of subject properties will be published in the Charleston Gazette. Persons who believe they were subjected to unlawful discrimination at one of those properties either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993 or e-mail the Justice Department at [email protected].
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Justice Department Releases New Technical Assistance on the Voting Rights of People with DisabilitiesRead the Press Release
The Justice Department announced today it has published a new technical assistance publication about federal laws that protect the rights of voters with disabilities, including the Americans with Disabilities Act, the Voting Rights Act, the National Voter Registration Act and the Help America Vote Act. The publication, “The Americans with Disabilities Act & Other Federal Laws Protecting the Rights of Voters with Disabilities,” is intended to help election officials, poll workers and voters understand how the ADA and other federal laws ensure equality in the voting process for people with disabilities.
“The right to vote is the foundation upon which our country is built,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “For too long in our history, many people with disabilities have been excluded from exercising this fundamental right and have been prevented from being a full participant in our democracy. A number of federal civil rights laws, including the Americans with Disabilities Act and the Voting Rights Act, have been put in place to address fairness in the voting process for people with disabilities. The Justice Department is fully committed to enforcing these laws to ensure that voters with disabilities are no longer discriminated against in the election process.”
The publication provides guidance about how the federal disability rights laws apply to the election process, from registration to voting. The publication discusses the need for policies, procedures, and programs to be in place to ensure that voters with disabilities are not discriminated against or illegally excluded from voting. For example, the guidance discusses local governments’ obligations under the ADA to ensure polling places are physically accessible to voters with mobility disabilities, as well as their obligation to provide effective communication with voters who have vision and hearing disabilities. Voters with disabilities must be able to access their polling place like everyone else, and vote alongside their neighbors and friends.
The “The Americans with Disabilities Act & Other Federal Laws Protecting the Rights of Voters with Disabilities” publication may be found at http://www.ada.gov/ada_voting/ada_voting_ta.pdf or http://www.ada.gov/ada_voting/ada_voting_ta.htm. Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 1-800-514-0301 (V) or 1-800-514-0383 (TTY), or visit its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
Justice Department Files Lawsuit Alleging Disability-Based Discrimination by West Virginia DevelopersRead the Press Release
The Justice Department filed a lawsuit yesterday against West Virginia-based developer Biafora’s Incorporated (Biafora) and several affiliated companies, for violating the Fair Housing Act and the Americans with Disabilities Act (ADA). The lawsuit alleges that the defendants violated these laws when they designed and constructed twenty-three residential properties with barriers that make them inaccessible to persons with disabilities.
“For over two decades, the Fair Housing Act and ADA have required those who design and build multifamily housing complexes to make them accessible to persons with disabilities,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Residential complexes built with steps but without ramps or other means of access deny Americans with disabilities the basic right to equal housing opportunities.”
“The United States Attorney’s Office is committed to working together with the Civil Rights Division to ensure that the rights of citizens with disabilities in the Northern District of West Virginia are fully protected,” said U.S. Attorney William J. Ihlenfeld for the Northern District of West Virginia. “It’s important that building developers in our district design and construct housing units which comply with the Fair Housing Act and the Americans with Disabilities Act.”
The suit, filed in U.S. District Court in Clarksburg, West Virginia, alleges that twenty-three properties located in Monongalia County, Harrison County, and Marion County, West Virginia, as well as in Greene County, Pennsylvania, have significant barriers, including steps leading to building entrances, non-existent or excessively sloped pedestrian routes from apartment units to site amenities (e.g., picnic areas, dumpsters, clubhouse/leasing offices), insufficient maneuvering space in bathrooms and kitchens, excessively high light switches and temperature controls and inaccessible parking.
The suit seeks a court order requiring the defendants to bring properties they have designed and constructed since 1991 into compliance with the Fair Housing Act and the ADA, as well as monetary damages for persons harmed by the lack of accessibility and civil penalties to the United States. The suit also names Biafora’s affiliates Falconcrest LLC, Five Star Holdings LLC, Metro Rentals LLC, Metro Rentals II LLC, RDR Properties LLC, RDR Properties II LLC, The Gables LLC, The Woodlands LLC, 3BT LLC and CMC Company LLC. Anyone with information about the inaccessible conditions at these properties should call the Justice Department at 1-800-896-7743, and follow the prompts to enter mailbox 998.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, and disability. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in federal court.
Jury Convicts Nashville Man of Drug Trafficking & Firearms ChargesRead the Press Release
Defendant Used Armed Juveniles to Guard Stash House
Brice N. Marchbanks, 32, of Nashville, Tennessee, was found guilty yesterday by a federal jury of multiple drug trafficking and firearms offenses, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. After a week-long trial, the jury returned guilty verdicts on all counts, including drug conspiracy, maintaining a drug house, possessing firearms in furtherance of drug crimes and distributing drugs to a 14 year-old.
United States Attorney David Rivera stated, “Drugs, guns, and kids are a toxic combination. The proof showed that Marchbanks, as a 27 year-old man, was distributing drugs to 14 year old kids and using them as armed guards in a drug house. In return, Marchbanks provided them with marijuana to smoke and offered them $100 to murder another gang member. We will seek an appropriate sentence for the conduct of the defendant.”
Marchbanks’ drug operation was uncovered as part of a lengthy investigation into various Rollin’ 60 Crips gang members who were committing armed robberies of suspected drug dealers under the belief that such violent crime would not be investigated fully and that the targeted victims would not cooperate with law enforcement. Marchbanks is the final defendant to be tried in a case which began in 2009 and involved more than 30 defendants who were charged with drug crimes, firearms and other offenses as part of the investigation. All of the defendants in this case have now been convicted, including more than five gang members who held the status of “OG” (“Original Gangsta”), the highest rank available in Tennessee.
According to the proof at trial, Marchbanks was the target of such a robbery by other gang members and was in fact shot during that robbery. When questioned by police, Marchbanks falsely claimed that the robbery was not drug-related. The investigation, however, showed that Marchbanks was running a drug house in the Creekwood Drive area of Nashville
and was using armed minors to guard the house.The trial also included proof that Marchbanks wrongly suspected another Rollin’ 60 Crips gang member of having participated in that robbery, and solicited the murder of that person. A 15 year- old and a person who is still unidentified then shot the gang member whom they suspected. The wounded gang member survived and the investigation determined that he was not involved in the robbery of Marchbanks. The three people involved in the actual robbery of Marchbanks have been convicted and are also in custody.
Marchbanks faces up to life in prison when he is sentenced on January 14, 2015.
The investigation was conducted by the FBI, the ATF and the Metropolitan Nashville Police Department. Assistant United States Attorneys Sunny A.M. Koshy and Louis Crisostomo prosecuted the jury trial,
Jerome Woman Pleads Guilty to Bank FraudRead the Press Release
Defendant Used Her Position as a Bank Teller to Obtain Money from Customer Account
BOISE – Azucena Ortega, 32, of Jerome, Idaho, pleaded guilty today in United States District Court to one count of bank fraud, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, the defendant used her position as an employee of Wells Fargo Bank in Twin Falls, Idaho to access a customer's checking account, and order an ATM card, without the customer's permission. The defendant admitted receiving the ATM card at the bank, setting a PIN number, and raising the daily cash withdrawal limit on the account. The defendant also admitted using the ATM card on four occasions to withdraw cash from ATM machines in Twin Falls, Idaho, obtaining a total of $1,484.00 from the customer's account. The government is seeking forfeiture of assets and restitution for the victim of the fraud.
Bank fraud is punishable by up to 30 years in prison, a maximum fine of $1,000,000, and up to five years of supervised release.
Sentencing is set for January 7, 2015, before Chief U.S. District Judge B. Lynn Winmill, at the federal courthouse in Boise.
The case was investigated by the United States Secret Service, the United States Postal Inspector Service, and the Twin Falls Police Department.
Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office today announced that during a federal court session in Great Falls, Montana on September 29, 2014, before U.S. Magistrate Judge Strong, the following individuals appeared:
LAWRENCE GEORGE GRINER, a 43-year-old resident of Butte, made an initial appearance on a complaint alleging conspiracy to possess with intent to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, GRINER, faces life in prison, $10,000,000 in fines and 5 years supervised release.. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation is being conducted by the Russell Country Drug Task Force. PACER Case Reference: 14-71
JEFFREY EDWARD JUNE, a 45-year-old resident of Augusta, made an initial appearance on a complaint alleging conspiracy to possess with intent to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, JUNE, faces life in prison, $10,000,000 in fines and 5 years supervised release.. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation is being conducted by the Russell Country Drug Task Force. PACER Case Reference: 14-71
MARTIN EDWARD LELAND, a 32-year-old resident of Belt, made an initial appearance on a complaint alleging conspiracy to possess with intent to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, LELAND, faces life in prison, $10,000,000 in fines and 5 years supervised release.. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation is being conducted by the Russell Country Drug Task Force. PACER Case Reference: 14-71
EDUARDO OCEQUEDA-RUIZ, a 30-year-old resident of Los Angeles, California, made an initial appearance on a complaint alleging conspiracy to possess with intent to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, OCEQUEDA-RUIZ, faces life in prison, $10,000,000 in fines and 5 years supervised release.. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation is being conducted by the Russell Country Drug Task Force. PACER Case Reference: 14-71
JOSHUA ALBERTO RODRIGUEZ, a 25-year-old resident of Los Angeles, California, made an initial appearance on a complaint alleging conspiracy to possess with intent to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, RODRIGUEZ, faces life in prison, $10,000,000 in fines and 5 years supervised release.. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation is being conducted by the Russell Country Drug Task Force. PACER Case Reference: 14-71
A complaint is merely a written statement of the essential facts constituting the offense(s) charged. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.