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14 November 2014
Two Men Arrested in Interstate Burglary SchemeRead the Press Release
NEWARK, N.J. – Two men from Lancaster County, Pennsylvania, were arrested by special agents of the FBI this morning for their alleged role in a string of commercial burglaries throughout New Jersey, U.S. Attorney Paul Fishman announced.
Eliezer Medina, 36, is charged by complaint with one count of conspiracy and three counts of knowingly transporting stolen goods in interstate commerce. His brother, Jose Medina, 38, is charged by complaint with one count of conspiracy and one count of knowingly transporting stolen goods in interstate commerce. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the documents filed in this case and statements made in court:
From Nov. 3, 2013, through August 25, 2014, the Medinas allegedly burglarized at least three stores in New Jersey and transported approximately $300,000 in stolen cash across state lines. The burglaries occurred in Paramus, New Jersey, on Nov. 3, 2013, and Nov. 24, 2013, and on August 24, 2014 in Pennsauken, New Jersey. The burglaries followed the same general pattern, including advance surveillance of the stores, disabling of the stores’ alarm systems, drilling a small hole in the emergency exit door to gain access to the store, and the use of pry-bars and vertical cuts to gain access to the stores’ safes.
The counts of conspiracy to transport stolen goods each carry a maximum potential penalty of five years in prison; the counts of transportation of stolen goods each carry a maximum potential penalty of 10 years in prison; all the counts are also punishable by a fine of $250,000, or twice the gross pecuniary gain to the defendant or loss to the victim.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the N.J. State Police, under the direction of Col. Rick Fuentes, superintendent; the Wayne Police Department, under the direction of Chief James Clarke; the Paramus Police Department, under the direction of Chief Kenneth Ehrenberg; and the Lancaster Bureau of Police, under the direction of Chief Keith Sadler, for the investigation leading to today’s arrests. He also thanked special agents of the FBI, Philadelphia; the East Lampert, Pennsylvania, Police Department; the Manor Township, Pennsylvania, Police Department; and the East Hempfield Township, Pennsylvania; Police Department, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Melissa Wangenheim and Barry Kamar of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
14-399
Medina, Eliezer and Medinia, Jose Complaint
Two Executives of Japanese Automotive Parts Manufacturers Indicted for Their Role in a Conspiracy to Fix Prices and Rig BidsRead the Press Release
A Kentucky federal grand jury returned a one-count indictment against two executives of Japanese automotive parts manufacturers for their participation in a conspiracy to fix prices and rig bids of bearings, the Department of Justice announced today.
The indictment, filed late yesterday in the U.S. District Court for the Eastern District of Kentucky in Covington, charges Hiroya Hirose an executive at NSK Ltd., and Masakazu Iwami an executive at Jtekt Corporation, with conspiring to fix the prices of bearings sold to Toyota Motor Corporation and Toyota Motor Engineering & Manufacturing North America Inc. (collectively, “Toyota”) in the United States and elsewhere, beginning at least as early as 2001 and continuing until as late as July 2011.
“The division will continue to pursue executives who violate the antitrust laws,” said Assistant Attorney General Bill Baer for the Antitrust Division. “American consumers deserve the benefit of free competition between auto parts suppliers.”
Hirose was a group sales manager in NSK’s Mid-Japan Automotive Department Office from at least as early as January 2006 until at least 2009, and a general manager in that office from 2009 until at least 2011. Iwami was a Section Manager, then General Manager, in Jtekt’s Toyota Branch office from at least as early as 1999 until at least October 2007, and then Vice Branch Manager in that office from October 2007 until at least June 2009.
The indictment alleges, among other things, that Hirose, Iwami, and co-conspirators participated in, and directed, authorized, or consented to the participation of subordinate employees in, meetings, conversations, and communications to discuss the bids and price quotations to be submitted to Toyota in the United States and elsewhere. Hirose, Iwami, and their co-conspirators submitted bids and price quotations in accordance with the agreements reached at these meetings.
NSK is a corporation organized and existing under the laws of Japan with its principal place of business in Tokyo, Japan. On Oct. 28, 2013, NSK pleaded guilty and agreed to pay a $68.2 million criminal fine for its role in the conspiracy. Jtekt is a corporation organized and existing under the laws of Japan with its registered headquarters in Osaka, Japan. On Dec. 3, 2013, Jtekt pleaded guilty and agreed to pay a $103.27 million criminal fine for its role in the conspiracy. Both NSK and Jtekt were engaged in the business of manufacturing and selling bearings to Toyota in the United States and elsewhere for installation in vehicles manufactured and sold in the United States and elsewhere.
Including Hirose and Iwami, 46 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing, and bid rigging in the auto parts industry. Twenty-six of these individuals have pleaded guilty and have been sentenced to serve prison terms ranging from a year and one day to two years. Additionally, 31 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of now more than $2.4 billion in fines.
Hirose and Iwami are charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Yesterday’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office. Anyone with information on price fixing, bid rigging, and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Cincinnati Field Office at 513-421-4310.
Hirose & Iwami Indictment
Two Charged in Bill of Information for Unlawful Employment of AliensRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHNNIE SANTANGELO, III, age 29, of Tangipahoa Parish, and OBER FARFAN BRAVO, age 34, an undocumented alien living in Tangipahoa Parish, were charged yesterday in a one-count bill of information for unlawfully employing aliens.
According to the bill of information, SANTANGELO and BRAVO knowingly and unlawfully engage in a pattern and practice of hiring aliens for employment, knowing that said aliens were unauthorized aliens to work in the United States.
If convicted, SANTANGELO and BRAVO face a maximum term of six months incarceration and/or a fine of $3,000 for each unauthorized alien or twice the gross loss to any person.
U. S. Attorney Polite reiterated that the bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
(Download Bill of Information )
Two Arrested in Illegal Kickbacks Case Involving Clinical Laboratory TestingRead the Press Release
A Florida man who is already facing health care fraud and money laundering charges in federal court in Tampa was arrested again today, along with the owner of a health care marketing company, in an alleged illegal cash-for-patients kickback scheme involving clinical laboratory testing.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office, and 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.
David Brock Lovelace, 44, of Land O’ Lakes, Florida, and Dale B. DuBois, 61, of Melbourne, Florida, were arrested on a criminal complaint charging them with conspiracy to defraud the Medicare program and pay illegal kickbacks. Lovelace was charged by indictment in May 2014 with health care fraud and money laundering offenses in a case pending in the Middle District of Florida. After being arrested in that case, Lovelace was released on bond and ordered not to commit crimes or engage in any occupation relating to the health care services industry.
According to allegations in the criminal complaint filed in the new case, Lovelace and DuBois, a managing member of Healthcare Marketing Florida LLC, paid cash kickbacks to purported medical clinics in Miami-Dade County, Florida, in exchange for DNA test samples and patient information. Lovelace and DuBois then allegedly provided the test samples and patient information to laboratory companies for their submission of reimbursement claims to Medicare for clinical diagnostic laboratory services. Over the past 14 months, Lovelace has allegedly received more than $675,000 from one of the laboratory companies for the samples.
The charges contained in a complaint or indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
This case is being 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 U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Senior Trial Attorney Christopher J. Hunter 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.
Tonawanda Man Sentenced for Bank RobberyRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jason Simmons, 32, of Tonawanda, NY, who was convicted of bank robbery, was sentenced to 80 months in prison by U.S. District Court Judge Frank P. Geraci, Jr .
Assistant U.S. Attorney Jennifer M. Noto, who handled the case, stated that on October 29, 2013, the defendant and another individual, A.B. Thompson, robbed the Citizens Bank branch at 2255 Hudson Avenue in Rochester, NY. During the robbery, Simmons waited in the “get away” car while Thompson entered the bank and demanded money from a teller. While in the bank, Thompson told the teller that he had a firearm, but did not want to use it. Thompson left the bank with an amount of money and Simmons drove the “get away” vehicle as the two fled the scene.
The New York State Police (NYSP) located the vehicle heading northbound on I-90 near Batavia, NY. When troopers tried to stop the vehicle, Simmons and Thompson led them on a high speed chase that ended near Pembroke, NY. The vehicle Simmons and Thompson were driving lost control, crashed into a guiderail and struck two NYSP vehicles. The defendants were taken into custody and the stolen money was located inside the vehicle and in the pockets of the clothing worn by Simmons and Thompson.
Thompson has been convicted and is scheduled to be sentenced November 17, 2014. Simmons was on New York State parole for a robbery-related conviction at the time of the bank robbery. Judge Geraci ordered that the defendant’s federal sentence run consecutively to the time Simmons currently serving on his parole violation.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Irondequoit Police Department, under the direction of Chief Richard V. Tantalo, and the New York State Police, under the direction of Superintendent Joseph A. D’Amico.Three Sentenced for Drug Trafficking Near Local SchoolsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Three West Virginia residents were sentenced for selling crack cocaine and oxycodone near local schools, United States Attorney William J. Ihlenfeld, II, announced today.
Gary “Moe” Wade, 40, of Wheeling, West Virginia, was sentenced to 37 months in prison in prison. He pled guilty in January 2014 to one count of “Aiding and Abetting Distribution of Cocaine Base within 1000’ of a Protected Location.” An investigation by the West Virginia State Police and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Wade sold crack cocaine near Wheeling Central High School.
Kristen Nieman, 23, of Benwood, West Virginia was sentenced to 27 months in prison and ordered to pay $10,287.88 in restitution. She pled guilty in March 2014 to one count of “Aiding and Abetting the Distribution of Oxycodone within 1,000 feet of a Protected Location.” An investigation by the Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Nieman sold oxycodone near Moundsville Middle School.Devon Bertram, 25, of Wheeling, West Virginia, was sentenced to twelve months and one day in prison and ordered to forfeit $1,388.00. He pled guilty in January 2014 to one count of “Distribution of Cocaine Base within 1,000 feet of a Protected Location.” An investigation by the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Bertram sold crack cocaine near Wheeling Central Catholic High School.
United States Attorney William J. Ihlenfeld, II prosecuted Wade, Assistant U.S. Attorney Rob McWilliams prosecuted Nieman, and Assistant U.S. Attorney Randy Bernard prosecuted Bertram on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
In another matter before Judge Stamp, Amber J. Cross, 26, of New Martinsville, West Virginia, was sentenced to 57 months in prison. She pled guilty in July 2014 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone” after a West Virginia State Police investigation. Assistant U.S. Attorney Rob McWilliams prosecuted the case on behalf of the government.
Three Members of Northeast Washington Crew Sentenced on Charges Related to Three SlayingsCrew Operated in Area of 21st and Maryland Streets NE; Shootings Took Place in 2007 and 2011Read the Press Release
WASHINGTON – Jekwan Smith, Anthony Hatton, and James L. Harris, all members of a crew that operated in and near 21st Street and Maryland Avenue in Northeast Washington, were sentenced today to prison terms on charges stemming from a series of murders that took place in the area, U.S. Attorney Ronald C. Machen Jr. announced.
Smith, 23, Hatton, 21, and Harris, 22, all of Washington, D.C., pled guilty on Sept. 8, 2014, on the day their trial was to begin in the Superior Court of the District of Columbia. According to the government’s evidence, the defendants and other crew members sold drugs and carried guns in the area of 21st and Maryland NE and committed violent crimes, including killing those whose interests were contrary to those of the crew.
The plea agreements, which were contingent upon the Court’s approval, called for Smith to be sentenced to 17 ½ years in prison, Hatton to be sentenced to 15 years, and Harris to 10 years of incarceration. The Honorable Lynn Leibovitz accepted the pleas today and sentenced the defendants accordingly.
Smith and Harris pled guilty to voluntary manslaughter while armed for the shooting death of Isaiah Sheffield, which took place at about 1:45 a.m. on Sept. 24, 2011. Mr. Sheffield, 24, was shot in the 1100 block of 21st Street NE.
Smith also pled guilty to voluntary manslaughter while armed for the shooting death of Michael Pearson, which took place at about 8:20 p.m. on Oct. 29, 2007. Mr. Pearson, 27, was shot in the 2100 block of I Street NE.
Hatton pled guilty to a charge of second-degree murder while armed for the murder of Tyrell Fogle, which took place at about 10:30 p.m. on Aug. 29, 2011. Mr. Fogle, 17, was shot multiple times and collapsed in front of a building in the 1900 block of Bennett Place NE.
In announcing the sentences, U.S. Attorney Machen praised the investigative work of the Metropolitan Police Department, U.S. Park Police, and the U.S. Marshal Service. He also expressed appreciation for the work of Dr. Lois Goslinoski and Dr. Marie Pierre-Louis of the Office of the Chief Medical Examiner of the District of Columbia. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Alesha Matthews and Meridith McGarrity; Intelligence Analyst Zachary McMenamin; Criminal Investigator Durand Odom; Witness Security Specialists Debra Cannon, David Foster, Michael Hailey, and Tanya Via; Litigation Services Specialists Ron Royal, William Henderson and Paul Howell; and Victim/Witness Advocate Marcia Rinker.
Finally, he commended the work of Assistant U.S. Attorney Laura R. Bach and former Assistant U.S. Attorney Erin O. Lyons, who investigated and prosecuted the cases.
14-258Three Individuals Arrested in a Smuggling Attempt at the BorderRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. and Customs and Border Protection Director of Field Operations Randy Howe announced today that three individuals were arrested and charged in separate criminal complaints following a smuggling attempt at the Peace Bridge Port of Entry. Tonin Ndoja, 50, a citizen of Canada is charged with bringing in aliens in exchange for financial gain which is punishable by a maximum penalty of 10 years in prison and a $250,000 fine.
Bardok Tusha, 30, and his wife Kleda Tusha, 20, both citizens of Albania, were charged with illegal entry.
Assistant U.S Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaints, on November 12, 2014, defendant Ndoja attempted to enter the United States from Canada at the Peace Bridge. Ndoja, a Free and Secure Trade (FAST) card holder and member of the trusted traveler program, was driving a tractor trailer carrying rolled steel. During a secondary inspection, officers with Customs and Border Protection discovered defendants Bardok and Kleda Tusha hidden inside the cab of the tractor trailer under a blanket.
“It is the responsibility of our Office, along with our federal partners, to protect the flow of traffic across our international crossings,” said U.S. Attorney Hochul. “Whether it be illegal narcotics, commerce, or in this case human beings, we will vigorously prosecute this and any other attempts to subvert the law at our local borders.”
"This was an outstanding job by our front line officers," said Randy Howe, Director of Field Operations for the CBP Buffalo Field Office. "Our officers possess keen observational skills and in this case, were able to determine that this driver and truck required further inspection. Human Smuggling is a serious violation of U.S. Law. We have a great working relationship with the United States Attorney's Office and we are glad they are our partner in combating Human Smuggling."
Tonin Ndoja made an initial appearance on November 13, 2014 before U.S. Magistrate Judge Jeremiah J. McCarthy. He is being detained and is due back in court on December 4, 2014. Bardok and Kleda Tusha also made an initial appearance at which time the couple pleaded guilty to the misdemeanor charge of illegal entry and were sentenced to time served.
The case is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Randy Howe.
The fact that the defendants have been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Texas Man Indicted for Fraud Involving Trade of Airplane and Aircraft PartsRead the Press Release
Oklahoma City, Oklahoma – On Wednesday, November 12, a federal grand jury returned an eight-count indictment charging LARRY DALE MORGAN of Hutto, Texas, with wire fraud in connection with the trade of an airplane and fraud and false statements involving aircraft parts, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Morgan was a pilot who owned and operated several aircraft in Cushing, Oklahoma. According to the indictment, Morgan fraudulently induced a fellow pilot from Ovid, New York, into trading the man’s Cessna 421A aircraft for Morgan’s Beechcraft Bonanza aircraft, knowing that the Beechcraft Bonanza was worth substantially less than the $123,500.00 that Mr. Morgan represented in email communications. The indictment further alleges that Morgan made multiple false and fraudulent entries in the aircraft’s logbooks, and failed to disclose an existing lien on the aircraft when he executed the Bill of Sale. Reference is made to the indictment and court record for further information.
If convicted, Morgan faces up to 20 years’ imprisonment, a $250,000 fine, and three years of supervised release on the wire fraud counts. He faces up to 15 years’ imprisonment, a $500,000 fine, and up to three years’ supervised release on the aircraft parts fraud counts, as well as up to five years’ imprisonment, a $250,000 fine, and up to three years of supervised release on the false writing count. The public is reminded that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is the result of an investigation by the Department of Transportation, Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Superseding Indictment Filed Against Boise Doctor Charged with Controlled Substance DeliveryRead the Press Release
BOISE – A federal grand jury in Boise yesterday returned a superseding indictment against Michael Minas, 49, of Boise, Idaho, charging him with 112 counts of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced.
The superseding indictment alleges that Minas distributed oxycodone 30 mg and Oxycontin 80 mg, both Schedule II controlled substances, and diazepam, a Schedule IV controlled substance, and that he did so outside the usual course of professional practice and not for a legitimate medical purpose. The original indictment charged seventeen counts of distributing a controlled substance, related to three patients. The superseding indictment adds nine additional patients, for a total of 112 counts.
Since the initial indictment, Minas has been released pending trial, currently scheduled for December 16, 2014. Pending trial, Minas has been prohibited from writing prescriptions and from engaging in the practice of medicine except for the limited purpose of transferring patient records so that patients may see other providers. He also was required to relinquish any prescription pads in his possession.
The charge of distributing a controlled substance is punishable by up to twenty years in prison, a maximum fine of $1,000,000.00 and at least three years of supervised release.
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
St. Thomas Man Sentenced to 15 Months in PrisonRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez on Thursday, November 13, 2014, sentenced Keon I. Smith, 29, to 15 months in prison, for possessing a firearm with an obliterated serial number, United States Attorney Ronald W. Sharpe announced.
On June 11, 2014, Smith pleaded guilty to count one of a three-count information charging him with possession of a firearm with an obliterated serial number. Court records show that on March 21, 2014, officers of the Virgin Islands Police Department (VIPD) conducted a traffic stop of Smith in the area of the University of the Virgin Islands on St. Thomas. A strong odor of marijuana emanating from the vehicle prompted the officers to conduct a search of the vehicle. The officers discovered a Glock Model 26, 9mm firearm, with its serial number obliterated in the back pouch of the front passenger seat. A check of VIPD records revealed that Smith was not licensed to possess a firearm.
In addition to 15 months in prison, Smith received three years’ supervised release, was ordered to pay a fine of $3,000 and a $100 special assessment. Smith was immediately remanded to the custody of the U.S. Marshals Service.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the VIPD. Assistant U.S. Attorney Everard E. Potter prosecuted the case.
St. Thomas Man Arrested for Being A Felon in Possession of AmmunitionRead the Press Release
St. Thomas, USVI- Rudy Bridges, 31, of St. Thomas appeared today in District Court on St. Thomas for an advice of rights hearing after his arrest today for being a felon in possession of ammunition, announced United States Attorney Ronald W. Sharpe. Bridges was released on his personal recognizance.
A federal grand jury indicted Bridges on November 6, 2014, in a one-count indictment charging him with being a felon in possession of ammunition on April 18, 2013. Under federal law a person convicted of being a felon in possession of ammunition faces a sentence of 10 years in prison and a $250,000 fine.
The public is reminded that an indictment is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
The case is being investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) and the Virgin Islands Police Department (VIPD). It is being prosecuted by Assistant U.S. Attorney Ishmael Meyers, Jr.
South Carolina Man Sentenced to 20 Years in Prison for Second-Degree Murder and Attempted Robbery in 1992 Slaying Near Hains PointAdmitted Taking Part in Memorial Day Killing of ManRead the Press Release
WASHINGTON – Lamont Terry, 40, formerly of Columbia, S.C., was sentenced today to 20 years in prison after earlier pleading guilty to killing a man during an attempted robbery on Memorial Day of 1992 in East Potomac Park, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department.
Terry pled guilty in September 2014 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert E. Morin. The judge sentenced Terry to a prison term of 15 years to life on a charge of second-degree murder and another five to 15 years in prison for attempted robbery while armed. He suspended all but 15 years of the murder sentence and all but five years of the attempted robbery sentence, resulting in a total 20-year prison term.
According to the government’s evidence, on May 25, 1992, Terry and other individuals drove from Arlington, Va. to the District of Columbia, looking for someone to rob. In preparation for the robbery, Terry retrieved a sawed-off shotgun, which he brought with him. At approximately 11 p.m., Terry and his friends entered the Hains Point area of East Potomac Park in Southwest Washington. At that time, they came upon the victim, Chet Matthews, 27, who was seated in a parked vehicle on Ohio Drive.
Terry forcibly removed Mr. Matthews from the car, made him get down on his knees, and began demanding money and jewelry from him. Mr. Matthews pleaded that he had nothing and struggled to remove his rings. While his accomplices searched Mr. Matthews’s car for anything of value, Terry suddenly pulled the trigger on the sawed-off shotgun. He shot Mr. Matthews one time through his chest at close range. All of the men then fled the park. Mr. Matthews, an Army veteran who was employed as a postal carrier, was pronounced dead a short time later.
Terry’s plea is among a series of successful prosecutions of older homicide cases following investigations by the Cold Case Squad of the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office. Working with the MPD and other law enforcement partners, the U.S. Attorney’s Office has a specially designated Cold Case Unit that prosecutes these older cases. Through these efforts, more than 20 defendants have been convicted of older homicides since 2009.
In this case, new evidence was obtained that led to the filing of the murder charge against the defendant in January 2012.
“More than two decades ago, Chet Matthews was killed in a senseless robbery near Hains Point, said U.S. Attorney Machen. “Thanks to the resolve of our office and the Metropolitan Police Department, Lamont Terry today is finally paying the price for that crime. This case represents our commitment to bringing murderers to justice, no matter how much time has passed. The message to criminals and the families of the victims is clear – we will not waver in our commitment to investigate and prosecute cold case homicides.”
“This case demonstrates the commitment of the Metropolitan Police Department to pursue cases no matter how old and to bring justice to the families who have lost their loved ones to senseless violence,” said Police Chief Lanier. “I commend the Cold Case Squad for their efforts.”
Terry was arrested in Columbia, S.C., in January 2012 by a fugitive apprehension task force of the U.S. Marshals Service. He has remained in custody ever since. Three other men also have pled guilty to charges in the case as a result of the renewed investigation. Norman Henderson, 41, pled guilty to a charge of voluntary manslaughter while armed. George Booth, 39, and Anthony Orr, 41, pled guilty to voluntary manslaughter. All are awaiting sentencing. Like Terry, Henderson, Booth and Orr are formerly from Arlington, Va.
In announcing the sentence, U.S. Attorney Machen and Chief Lanier commended the work of those who investigated the case for the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the U.S. Marshals Service in the District of South Carolina, as well as the Capital Area Regional Fugitive Task Force in Washington, D.C. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick, Debra Joyner, and Alesha Matthews Yette; Victim/Witness Security Specialists David Foster and Katina Adams-Washington; Victim/Witness Advocates Tamara Ince and Marcia Rinker; and Litigation Technology Specialists Joshua Ellen, Kimberly Smith, Thomas Royal, Anisha Bhatia, and Aneela Bhatia.
Finally, they commended the work of Assistant U.S. Attorney S. Vinét Bryant, who investigated and prosecuted the case.
14-257Shiprock Man Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Thomas Navaho, 21, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced yesterday afternoon to 24 months in federal prison followed by three years of supervised release for his assault conviction.
Navaho was arrested on March 4, 2014, on a criminal complaint charging him with assault, then was subsequently charged in a two-count indictment with assault resulting in serious bodily injury and assault with a dangerous weapon. According to court filings, Navaho assaulted the victim, another Navajo man, on Feb. 22, 2014, at a location within the Navajo Indian Reservation.
On July 14, 2014, Navaho entered a guilty plea to Count 1 of the indictment charging him with assault resulting in serious bodily injury. Navaho admitted that on Feb. 22, 2014, he initiated the assault by choking the victim while he was asleep. Navaho continued his assault on the victim during a physical altercation, during which the victim sustained injuries requiring medical attention.
This case was investigated by the Farmington Office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.San Jose Man Indicted for Mailing Letters Attacking Victims Sexual Orientation, Race, and ReligionRead the Press Release
SAN JOSE – A federal grand jury returned a four count indictment charging a San Jose man with transmitting threats in the mail, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, U.S. Secret Service Acting Special Agent in Charge Russell Nelson, and U.S. Postal Inspection Service, Inspector in Charge Rafael E. Nunez.
Robert Gary Toltzis, 52, of San Jose, is named as the sole defendant in all four counts of the indictment, which was unsealed earlier today. According to the indictment, beginning as early as 2006 and continuing through at least Oct. 2013, Toltzis executed a scheme to make threats of death, bodily injury, injury to reputation, and other forms of harassment to individuals based on their real or perceived sexual orientation, national origin, and ethnic background using, among other ways, the services of anonymous remailers, his own e-mail address, his Dell printer, and the U.S. mail. The scheme was directed toward at least sixteen different victims.
The indictment alleges that on certain occasions, Toltzis assumed the identity of one victim in transmitting his threats and harassing e-mails and mailings to a new or different victim, by among other ways, listing a victim's name and return address on the envelope containing a threat mailed to another victim. Toltzis also sent copies of the written threats to the co-workers or relatives of his victims.
According to the indictment, on one occasion Toltzis mailed a letter containing a round of 9mm pistol ammunition, two Craigslist postings with graphic sexual images, and text that read as follows: The pics do say it all you are a disease spreading drug addict . . . the bullet says it all: I am going to kill you!!!
The indictment further alleges that on one occasion, Toltzis mailed a letter to a victim at his home claiming that the victim was a drug addict, bad husband, and a homosexual and urging the victim to kill himself.
The indictment further alleges that on one occasion, Toltzis mailed a letter to a victim at his place of employment, addressed to the victim’s boss. The one-page letter in the mailing included what appeared to be three color photographs superimposed on a Craigslist ad. The photographs included pictures of the victim. In one of the pictures, the word “HIV+” is superimposed on the victim’s forehead. The letter also included anti-homosexual slurs and multiple death threats.
The defendant made his initial appearance in federal court in San Francisco earlier today before Magistrate Judge Jacqueline Corley, who unsealed the indictment. He was remanded to the custody of the U.S. Marshal. The defendant’s next appearance for ID of counsel and further status is scheduled for Monday, Nov. 17, 2014, at 1:30 p.m., before the Honorable Paul S. Grewal, United States Magistrate Court Judge, in San Jose.
The maximum statutory penalty for each count of sending threats in the mail is five years imprisonment, a fine of $250,000, three years of supervised release, and restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Timothy J. Lucey is the Assistant United States Attorney who is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI with substantial assistance from the United States Secret Service and United States Postal Inspection Service.
Please note that an indictment contains only allegations. As with all defendants, Robert Gary Toltzis must be presumed innocent unless and until he is proven guilty.
(Toltzis indictment )
Roswell Woman Sentenced for Trafficking Methampethamine in Lea CountyRead the Press Release
ALBUQUERQUE – Grace Roman Childers, 60, of Roswell, N.M., was sentenced yesterday in federal court in Las Cruces, N.M., to 70 months in federal prison followed by five years of supervised release for her methamphetamine trafficking conviction. Childers was also ordered to forfeit $7,420.00. The sentence was announced by U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Commander Byron Wester of the Lea County Drug Task Force (LCDTF).
Childers was arrested in Fort Worth, Texas, on July 17, 2013, on a federal criminal complaint alleging methamphetamine trafficking and firearms charges, and was transferred to New Mexico on July 31, 2013. According to the criminal complaint, officers of the LCDTF arrested Childers in Hobbs, N.M., on state charges on Feb. 19, 2013, after finding approximately 300 grams of methamphetamine and a loaded handgun when they executed a state search warrant on a vehicle Childers was driving. The officers also found a digital scale with drug residue and $7,420 cash in Childers’ vehicle. The state charges against Childers were dismissed after federal charges were filed.
On March 13, 2014, Childers entered a guilty plea to possession of methamphetamine with intent to distribute, and admitted possessing approximately 299.85 grams of pure methamphetamine on Feb. 19, 2013, in Lea County, N.M. She further admitted that she was storing the drugs in her vehicle with the intention of distributing the drugs before they were seized by law enforcement officers.
This case was investigated by the Roswell office of the FBI and the Lea County Drug Task Force, with assistance from the 5th Judicial District Attorney’s Office, and was prosecuted by Assistant U.S. Attorneys Shaheen P. Torgoley and Terri J. Abernathy.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Queens Woman Sentenced for Possesion of Counterfeit $100 BillsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Michele Sergeant, 31, of Queens, NY, who was convicted of possession of counterfeit bank notes, was sentenced to 18 months in prison by U.S. District Court Judge Frank P. Geraci. The defendant was also ordered to pay $44,700 in restitution.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that on September 22, 2013, New York State Troopers stopped a vehicle on Interstate 390 in the town of Wayland in Steuben County for going 102 mph in a 65 mph zone. Inside the vehicle, troopers found the defendant and her co-defendant, along with a small quantity of marijuana. Troopers located $8,700 in $100 bank notes inside the car along with a financial ledger book. Inside the ledger were columns which showed dollar amounts and abbreviations for retail locations. The New York State Police contacted the United States Secret Service for investigative assistance.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Acting Special Agent in Charge, Michael Adelizzio, and Investigators and Troopers of the New York State Police, under the direction of Superintendent Joseph A. D'Amico.
Secret Service Agents determined that 87 of the $100 bills recovered were actually sophisticated counterfeit bills, complete with water marks, color shifting ink, and embedded security strips. They further determined that the ledger notations were references to stores at which they passed counterfeit currency and included Home Depot, Lowes, Target, and Wal-Mart stores. As part of the investigation, Secret Service Agents reviewed store surveillance video from the dates and times of the transactions listed in the ledger. The defendant was identified on video at several area stores passing counterfeit $100 bank notes. Subsequent investigation determined that Sergeant had passed thousands of dollars’ worth of counterfeit $100 bank notes within the Western District of New York. At the time the defendant passed the counterfeit bills here, she was on release for similar conduct in the State of Massachusetts.
As part of the investigation, Secret Service Agents learned that Sergeant was identified passing counterfeit $100 bank notes in New York and several other states. The defendant and her co-defendant, who was also sentenced to federal prison back in July, passed counterfeit $100 bills throughout the Western District of New York, including Buffalo, Rochester, and all the way down to the Southern Tier. They were also identified passing counterfeit $100 bank notes in Ohio; Massachusetts; Michigan; and Arkansas. The total loss due to the defendant’s actions was over $65,000.Pennsylvania Man Sentenced for Selling Heroin Near WV PlaygroundRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Rayson Brown, 23, of West Homestead, Pennsylvania was sentenced to 37 months in prison for selling heroin near a local playground, United States Attorney William J. Ihlenfeld, II, announced today.
A West Virginia State Police Investigation revealed that Brown sold heroin near the Star City Playground in Star City, West Virginia. He pled guilty in July 2014 to one count of Aiding and Abetting Distribution of Heroin within 1000’ of Protected Location.”
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Owner of 'Polygraph.com' Indicted for Allegedly Training Customers to Lie During Federally Administered Polygraph ExaminationsRead the Press Release
A former Oklahoma City law enforcement officer and owner of “Polygraph.com” has been indicted on obstruction of justice and mail fraud charges for allegedly training customers to lie and conceal crimes during polygraph examinations.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Assistant Commissioner Mark Morgan of U.S. Customs and Border Protection’s Office of Internal Affairs and Special Agent in Charge James E. Finch of the FBI’s Oklahoma City Field Office made the announcement.
Douglas Williams, 69, of Norman, Oklahoma, was charged in a five-count indictment in the Western District of Oklahoma with mail fraud and obstruction. According to allegations in the indictment, Williams, the owner and operator of “Polygraph.com,” marketed his training services to people appearing for polygraph examinations before federal law enforcement agencies, federal intelligence agencies, and state and local law enforcement agencies, as well as people required to take polygraph examinations under the terms of their parole or probation.
The indictment further alleges that Williams trained an individual posing as a federal law enforcement officer to lie and conceal involvement in criminal activity from an internal agency investigation. Williams is also alleged to have trained a second individual posing as an applicant seeking federal employment to lie and conceal crimes in a pre-employment polygraph examination. Williams, who was paid for both training sessions, is alleged to have instructed the individuals to deny having received his polygraph training.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The investigation is being investigated by U.S. Custom and Border Protection’s Office of Internal Affairs and the FBI’s Oklahoma City Field Office. The case is being prosecuted by Trial Attorneys Mark Angehr and Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Norwich Man Charged with Assaulting Federal Officer at Naval Submarine Base in GrotonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GARY RAY BRUNACHE, 35, of Norwich, has been charged by criminal complaint with federal assault offenses related to an incident that occurred last night at the Naval Submarine Base in Groton.
As alleged in the criminal complaint, on November 13, 2014, BRUNACHE approached three Department of Defense Police Officers outside of Building 500 at the Naval Submarine Base New London in Groton and proceeded to swing a knife at one of the officers. After failing to comply with warnings from the officer, a second officer sprayed BRUNACHE with pepper spray in an effort to subdue him. BRUNACHE then turned on the second officer and stabbed him in his right thigh area. The first officer fired approximately three rounds from his service pistol at BRUNACHE as BRUNACHE was trying to stab the second officer. BRUNACHE, who was not hit by the rounds, was eventually subdued.
BRUNACHE is charged with assault of a federal officer, a charge that carries a maximum term of imprisonment of 20 years, and assault with a dangerous weapon with intent to do bodily harm within the special maritime and territorial jurisdiction of the U.S., a charge that carries a maximum term of imprisonment of 10 years. He appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and is detained pending a detention hearing that is scheduled for November 19 at 12:00 p.m.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Naval Criminal Investigative Service, Federal Bureau of Investigation, Connecticut State Police, Town of Groton Police Department and Norwich Police Department. The case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]North Georgia Men Sentenced for Plot to Possess A Deadly Biological ToxinRead the Press Release
ATLANTA – Ray H. Adams and Samuel J. Crump have been sentenced to federal prison for possessing and conspiring to possess the biological toxin ricin for use as a weapon.
“Both the words and actions of these defendants supported an idea dangerous to our democracy – that violence is justifiable when citizens grow frustrated with government,” said United States Attorney Sally Quillian Yates. “This case demonstrates that we must remain vigilant in protecting our country, not only from the threat posed by international violent extremists, but also from those within our own borders who threaten our safety and security.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today's sentencing of Adams and Crump concludes a thorough and extensive investigation as well as an equally extensive and intensive prosecution. On this occasion, we would like to remind the public that the FBI's absolute number one priority is to prevent another terrorist attack on U.S. soil. We believe that we did that here. While the FBI fully understands and respects our citizens' rights to free speech, our investigations into these matters always look at the overt actions taken in furtherance of the free speech. While only time would tell the true intentions of these individuals, the FBI and its law enforcement partners cannot wait and the public expects no less from us.”
According to United States Attorney Yates, the evidence, and testimony presented in court: Between March 2011 and November 2011, Ray H. Adams and Samuel J. Crump conspired to produce and possess ricin, a deadly biological toxin. During this time period both defendants and others attended meetings where participants discussed targeting various government officials, including employees of federal agencies. These meetings were monitored by FBI agents through the attendance of a confidential source, who recorded the meetings and provided the information to the FBI.
During a recorded meeting in September 2011, Crump stated that he wanted to make ten pounds of ricin and disperse it in various cities, including Washington, D.C. and Atlanta, Ga. Crump described a scenario for dispersing the ricin in Atlanta in which the toxin would be blown from a car traveling on interstates. Crump allegedly also said that he possessed the ingredient used to make the toxin and cautioned the source about the dangers of handling it.
On November 1, 2011, FBI agents arrested Crump and Adams and executed search warrants at their residences. During a search of Adams’ residence, agents recovered castor plants, castor beans, a recipe for extracting ricin from castor beans, five mason jars and other items. During a search of Crump’s residence agents also recovered castor beans. On December 1, 2011, agents searched a storage unit rented by Crump and recovered castor beans and a copy of the same ricin recipe recovered during a search of Adams’ residence.In June 2013, after receiving information that Adams had successfully extracted ricin from the castor beans, FBI laboratory testing detected ricin in the five mason jars seized from Adams’ property. In July 2013, based on the presence of ricin in the five mason jars, the FBI obtained and executed a second search warrant at Adams’ residence and seized 28 additional mason jars, some labeled as fruit preserves. In November 2013, laboratory testing confirmed the presence of ricin in the 28 mason jars.
FBI experts found that the ricin detected in mason jars was in its non-active state and experts were unable to determine whether the ricin would have been lethal if it were inhaled or ingested. There is no evidence that Adams distributed any jars of preserves that contained ricin.
Adams, 58, of Toccoa, Ga., has been sentenced to ten years in prison to be followed by five years of supervised release. Crump, 71, also of Toccoa, Ga., has also been sentenced to ten years in prison to be followed by five years of supervised release. Adams and Crump were found guilty by a jury on January 17, 2014.
This case was investigated by the Joint Terrorism Task Force (JTTF), which includes agents of the FBI, Federal Protective Service (FPS), Georgia Bureau of Investigation (GBI), and Treasury Inspector General for Tax Administration (TIGTA). Assistance in this case has been provided by law enforcement agencies from Habersham County and Stephens County (Georgia), and the District Attorney’s Office for the
Mountain Judicial Circuit.Assistant United States Attorneys Jeffrey A. Brown and William L. McKinnon, Jr. prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Nixa Man Sentenced to 15 Years for Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today a Nixa, Mo., man has been sentenced in federal court for producing child pornography.
Michael John Kinney, 40, of Nixa, was sentenced by U.S. District Judge Gary A. Fenner on Thursday, Nov. 13, 2014, to 15 years in federal prison without parole. The court also ordered Kinney to pay $3,000 in restitution to a victim of child pornography and a $7,000 fine.
On July 30, 2014, Kinney pleaded guilty to one count of producing child pornography and one count of possessing child pornography. Kinney admitted that he used a minor victim to produce child pornography between Jan. 27, 2007, and Jan. 26, 2009. Kinney also admitted that he was in possession of child pornography on April 29, 2011.
Federal agents executed search warrants at Kinney’s residence and at his business, ABC Baby Goods, which sold children’s furniture and clothing. Agents seized two laptop computers from his residence. Investigators discovered 10 videos of child pornography that were made from a hidden camera in Kinney’s home and additional videos and images of child pornography, including children under the age of six engaged in acts of sexual intercourse with adults or other children. Investigators also discovered numerous images of child erotica, including a child victim in various stages of undress. Kinney must forfeit those computers to the government.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI, IRS-Criminal Investigation and the Christian County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Mt. Carmel Psychiatrist Charged with Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania, announced today that charges have been filed against Andrew Newton, a resident of Harrisburg, Pennsylvania.
According to United States Attorney, Peter Smith, Dr. Andrew Newton, age 42, a psychiatrist with an office in Mt. Carmel is charged in a six-count Information with false billings for psychotherapy services. Specifically, it is alleged that between August 2010, and November 2011, Newton billed Medicare for face-to-face therapy sessions when he was in fact out of the country.
The government also filed a plea agreement in the case which is subject to approval of the Court.
The investigation was conducted by the U.S. Department of Health & Human Services, Office of Inspector General, and the Federal Bureau of Investigation – Williamsport office. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.Indictments Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statutes is six years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.Michigan Physician Pleads Guilty for Role in $19 Million Medicare Fraud SchemeRead the Press Release
A Detroit-area physician, who orchestrated the submission of fraudulent claims for physician home visits and directed fraudulent referrals for home health care by his employee physicians as part of a $19 million home health care fraud scheme, pleaded guilty today for his role in the conspiracy.
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 and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Dr. Rajesh Doshi, 59, of Bloomfield Hills, Michigan, pleaded guilty before Senior U.S. District Judge Arthur J. Tarnow of the Eastern District of Michigan to conspiracy to commit health care fraud and one count of health care fraud. The sentencing hearing is set for March 3, 2015.
According to his plea agreement, Dr. Doshi admitted that between October 2005 and September 2012, he conspired with others to commit health care fraud by referring Medicare beneficiaries for home health care that was not medically necessary, and then submitting false and fraudulent claims for the purported care to Medicare for reimbursement. Dr. Doshi admitted that he submitted these false claims through Home Physicians Services (HPS), a medical practice he owned in Southfield, Michigan. Although Dr. Doshi owned HPS, he hid his ownership because of prior state court convictions.
Specifically, Dr. Doshi admitted that he paid kickbacks to recruiters to obtain Medicare beneficiaries for HPS and home health agencies owned by co-conspirators. Dr. Doshi and his co-conspirators then falsified medical and billing records for purported physician home visits, sometimes adding diagnoses to make it appear that the beneficiaries qualified for and required home care when they did not, and other times, “upcoding” physician home visits to higher levels of complexity than actually performed.
Dr. Doshi also admitted that he solicited and received kickbacks from home health agency owners in exchange for the referral of beneficiaries to those agencies, regardless of whether the beneficiaries qualified for or needed home health care. He then directed HPS physicians to falsify medical documentation and certify Medicare beneficiaries as homebound even though the HPS physicians had never met the beneficiaries or the beneficiaries were not actually homebound.
Between October 2005 and September 2012, Dr. Doshi and his co-conspirators caused Medicare to pay more than $19 million based on false claims. Three other physicians and one physician assistant have already pleaded guilty for their involvement in the health care fraud conspiracy related to the scheme at HPS.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised 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 Attorney Niall M. O’Donnell 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.
Mexican Citizen Pleads Guilty to Attempting to Transport A Child for Illegal Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Javier Guerrero Molina (age 34, Mexico) has pleaded guilty to attempting to transport a minor child from Las Vegas to Jacksonville with the intent that the child engage in sexual activity with him. Molina is a citizen of Mexico, and an immigration detainer has been placed on him. He faces a minimum mandatory sentence of 10 years, up to a maximum penalty of life imprisonment. Molina was arrested on May 30, 2014, at the Jacksonville International Airport, and he has been in custody since that time.
According to court documents, on May 29, 2014, officers with the Jacksonville Aviation Authority Police Department (JAAPD) received a telephone call from an individual who advised that a female child had disappeared from her home in Las Vegas and was believed to be traveling by air to Jacksonville. JAAPD officers learned that the Las Vegas Metropolitan Police Department (LVMPD) had made a “missing persons” entry regarding a 14-year old girl with the same name. A check of airline manifests confirmed that this child was listed as a passenger on board a flight from Las Vegas to Jacksonville, with a connection in Charlotte, North Carolina. JAAPD coordinated with officers with the Charlotte-Mecklenberg Police Department (CMPD), who intercepted the child at the Charlotte International Airport and took her into protective custody. The child had been scheduled to board a flight from Charlotte to Jacksonville that was due to arrive shortly after midnight on May 30, 2014.
As the expected arrival time for the Jacksonville flight approached, a JAAPD officer observed Javier Guerrero Molina in a waiting area in the Jacksonville International Airport lobby. When asked by the officer, Molina advised that he was there to meet a passenger. Molina was subsequently detained.
During an interview, Molina admitted that he had entered the United States in 1999 or 2000 by paying a smuggler $700 to help him cross the border on foot near Laredo, Texas. Molina stated that he had previously engaged in sexual activity with the child in Jacksonville, before she and her family moved to Las Vegas. He also stated that he had sent the child money to pay for a one-way airline ticket from Las Vegas to Jacksonville, and that he expected their sexual relationship to continue when the child returned to Jacksonville.
This case was investigated by the Jacksonville Aviation Authority Police Department, the Las Vegas Metropolitan Police Department, the Jacksonville Sheriff’s Office, the Federal Bureau of Investigation (Jacksonville and Charlotte, North Carolina), the Charlotte-Mecklenberg Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Jacksonville State Attorney’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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, 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.usdoj.gov/psc.
Member of Violent Home Invasion Robbery Crew Convicted of Conspiring to Commit Drug Robberies and Conspiring to Distribute Cocaine and HeroinRead the Press Release
Earlier today, following two weeks of trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Henry Fiorentino on both charges of conspiracy to commit Hobbs Act robberies and to distribute cocaine and heroin. The charges arose out of the defendant’s scheme to rob drug dealers while impersonating New York City police detectives. When sentenced by United States District Judge John Gleeson, the defendant faces a maximum sentence of life imprisonment and a minimum of ten years’ imprisonment on the most serious charge.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent in Charge, Drug Enforcement Administration, New York.
“Fiorentino tarnished the image of the New York City Police Department and eroded the public’s trust in our law enforcement officers by impersonating them to facilitate his drug robberies,” stated United States Attorney Lynch. “He will now be held to pay the price for his crimes.” Ms. Lynch extended her grateful appreciation to the DEA, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York State Police and the New York City Police Department.
Fiorentino was a leading member of a violent robbery crew responsible for more than 100 robberies of narcotics traffickers in the New York metropolitan area and elsewhere that netted more than 250 kilograms of cocaine and $1 million in drug proceeds. Beginning in approximately January 2001, crew members posed as law enforcement officers, staged fake arrests of the traffickers, and then forcibly seized the traffickers’ contraband. Members of the robbery crew restrained victims with handcuffs, rope, and duct tape and often brandished firearms and physically assaulted victims. The crew members then sold the stolen drugs and shared the proceeds.
Fiorentino participated in at least 19 separate robberies and attempted robberies. During these crimes, Fiorentino personally entered the residences and, on numerous occasions, he or his fellow crew members brandished firearms and abducted or restrained victims. During all of these robberies and attempted robberies, Fiorentino posed as a police officer. The robberies and attempted robberies in which Fiorentino directly participated involved at least 230 kilograms of cocaine and approximately $66,000 in drug proceeds.
The government’s case is being prosecuted by Assistant United States Attorneys Alexander Solomon and Sylvia Shweder.
The Defendant:
HENRY FIORENTINO
Age: 46
Bronx, NY
E.D.N.Y. Docket No. 08-CR-242 (S-8) (JG)
Member of "Traveling Group" of Fraudsters Pleads GuiltyRead the Press Release
BOISE — Myron Pardon, 26, from Southfield, Michigan, pleaded guilty yesterday in federal court to aggravated identity theft and credit card fraud, U.S. Attorney Wendy J. Olson announced. The defendant appeared before U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Boise.
According to the plea agreement, Myron Pardon, co-defendant Brandt Stewart and others, were part of a “traveling group” from Detroit, Michigan, that traveled to southern Idaho in December, 2013, and February, 2014, to make purchases at large “box stores” using counterfeit credit cards. Pardon knowingly and with intent to defraud used counterfeit credit cards to purchase “general use” charge cards at ten stores in Twin Falls, Boise and Meridian causing losses in the amount of $4,340.15. Some of the credit cards fraudulently used by Pardon belonged to actual account holders, thus constituting aggravated identity theft.
Pardon, Stewart and Lane were indicted by a federal grand jury on April 9, 2014. Co-defendants Brandt Stewart and Matthew Lane are set for trial on February 2, 2015. Pardon’s sentencing is set for February 2, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The charge of fraudulent use of a credit card carries a penalty of not more than 10 years in prison, a maximum fine of $250,000, and three years of supervised release. The charge of aggravated identity theft carries a penalty of not more than 10 years in prison with a mandatory minimum penalty of not less than two years in prison consecutive to the penalty imposed for other counts.
“Vigorous prosecution of those who travel here to carry out schemes to defraud Idaho citizens and businesses is a priority of this United States Attorney’s Office,” said Olson. “My office will work effectively and aggressively with local police departments and federal law enforcement agencies to put a quick end to these schemes.”
The case is the result of a joint investigation result of the Boise Police Department, United States Secret Service, and U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Massachusetts Man Sentenced to 1½ Years in Prison for Failure to Pay Child Support and Drug ChargeRead 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 Jay
Dandreo, 53, of Lynn, Massachusetts, was sentenced yesterday in U.S. District Court by Judge
Nancy Torresen to 18 months imprisonment and 5 years of supervised release for willfully failing to pay child support and possessing with the intent to manufacture or distribute marijuana.
Dandreo was convicted of both charges on July 29, 2014, after a two-day jury trial.According to evidence introduced at trial, in May 2004, the Maine Department of Health
& Human Services (MDHHS) ordered Dandreo to pay for the support of his four minor children.
Between May 2004 and November 2013, Dandreo failed to make any child support payments, resulting in an unpaid obligation of over $70,000. In August 2012, Maine Drug Enforcement
Agency (MDEA) investigators searched property located in Limerick, Maine owned by
Dandreo’s father and seized 183 marijuana plants growing at several locations on the property, as well as drug distribution paraphernalia and several firearms.The investigation was conducted by the U.S. Department of Health & Human Services, Office of Inspector General; MDHHS, Office of Family Independence, Division of Support
Enforcement & Recovery; and MDEA.Manager of Local Housing Complex and Two Associates Sentenced on Identity Theft ChargesRead the Press Release
St. Louis, MO – MARSHA HARRINGTON; CALVIN SHAW and LARRY CORNER, all of the St. Louis area, have been sentenced on charges of conspiracy to commit identity theft and identity theft. Shaw was sentenced late yesterday to 30 months in prison; Harrington was sentenced to 12 months and one day in prison on October 14; and Shaw was sentenced to 24 months prison on November 3. All defendants appeared before United States District Judge Catherine D. Perry.
According to court documents, Marsha Harrington obtained the personal identity information of others, including names and social security numbers, which she used to prepare and file false federal income tax returns and false W-2 forms. In some instances, Harrington obtained the identity information herself. For example, tenants at the Clinton-Peabody Housing Complex provided Harrington, who was the leasing manager at the time, their identity information for use in the fraudulent tax returns. Co-defendants Calvin Shaw and Larry Corner also provided identity information to Harrington. Harrington charged a fee to file the false tax returns. If the tax return used a name and social security number provided by Shaw and/or Corner, she shared those funds with them respectively.
This case was investigated by IRS Criminal Investigation and HUD Office of Inspector General. Assistant United States Attorney Stephen Casey handled the case for the U.S. Attorney's Office.
Man Sentenced to 10 Years in Prison for Transporting 14-Year-Old Girl from California to Reno for SexRead the Press Release
RENO, Nev. – A California man who brought a 14-year-old girl from Richmond, Calif., to the Reno area with the intent that she engage in sexual activity, was sentenced on Nov. 13, 2014, to 10 years in prison and lifetime supervised, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Nicholas Rider Wessel, 38, of Richmond, Calif., pleaded guilty in August to one count of transportation of a minor for illegal sexual activity and was sentenced by U.S. District Judge Miranda M. Du. Judge Du denied Wessel’s request for release on bond pending a prison designation.
“If you prey on underage children on the Internet, you face federal prosecution,” said U.S. Attorney Bogden. “The penalties are stiff, and you will be marked as a sex offender for the rest of your life.”
According to the court records, sometime in May 2014, Wessel began communicating with the 14-year-old girl on Facebook and by cell phone texts. During those conversations, Wessel arranged to pick the girl up in Modesto, Calif. and drive her to his home in Richmond. Wessel knew that she was only 14 years old. On May 5, Wessel picked her up, along with another minor girl, and they drove to his home where he engaged in sexual intercourse with the 14-year-old. The following day, Wessel drove the girl to Reno, and they again engaged in sex at a hotel in Sparks, Nev.
The investigation was conducted by the Sparks Police Department and the FBI. The case was prosecuted by Assistant U.S. Attorney Carla Higginbotham.
The case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Man Sentenced to Time Served for Illegal Re-Entry and Use of A False Social Security Number to Obtain EmploymentRead the Press Release
A man who illegally re-entered the country and used a false social security number to obtain employment in Buena-Vista County was sentenced on November 4, 2014, to time served.
Eswin Marroquin-Asturias, age 38, from Guatemala, received the prison term after an October 1, 2014, guilty plea to one count of illegal re-entry and one count of use of a false social security number.
At the guilty plea, Marroquin-Asturias admitted he had re-entered the United States without permission after being removed from the country on December 15, 2011, and that he had used an illegally obtained social security card to gain employment.
Marroquin-Asturias came to the attention of Homeland Security Investigations’ (HIS) on July 17, 2014, when law enforcement officers conducted surveillance at a residence in Storm Lake, Buena Vista County, Iowa, in an attempt to locate an individual suspected of passport fraud. Marroquin-Asturias voluntarily agreed to speak with law enforcement and admitted he had illegally purchased false identification documents and had used them to obtain employment.Marroquin-Asturias was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Marroquin-Asturias was sentenced to time served.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by HSI and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information is available at https//ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-4061.
Man Sentenced to 46 Months for Conspiracy to Traffic Counterfeit GoodsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced today Ali Fayez Nasrallah, 46, of East Elmhurst, NY, to 46 months in prison for conspiracy to traffic in counterfeit goods and for making false statements on an income tax return, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Nasrallah to pay $623,826 as restitution.
Joining U.S. Attorney Tompkins in making today’s announcement are Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed court documents and today’s sentencing hearing, from 2007 to 2010, Nasrallah conspired with others in the Western District of North Carolina and throughout the country to traffic in counterfeit clothing and shoes bearing counterfeit trademarks of numerous manufacturers, including Nike, Gucci, Coach, Timberland, Ralph Lauren Polo, among others. According to court documents and court proceedings, Nasrallah had deposited approximately $8.2 million in various bank account connected with his trafficking in counterfeit goods. On December 2, 2010, agents seized 645 boxes of counterfeit goods worth over $1.5 million from two warehouses operated by Nasrallah in Astoria, NY. Court documents indicate that Nasrallah also falsely stated his business income and taxes owed on his 2008 income tax return.
Nasrallah has been released on bond. Upon designation of a federal facility he will be ordered to report to the custody of the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
The investigation is being handled by HSI and IRS. The prosecution for the government was handled by Assistant U.S. Attorneys Tom O’Malley and Ben Bain-Creed of the U.S. Attorney’s Office in Charlotte.
Luzerne County Man Pleads Guilty to Participating in A Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 38-year-old Pittston man pleaded guilty today before Senior U.S. District Court Judge Edwin M. Kosik to conspiring with others to distribute heroin in the Luzerne County area during a four-year time period.
According to United States Attorney Peter Smith, the defendant, Sal Biscotto, admitted to committing the crime between 2010 and February 2014.
Biscotto was charged in a criminal Information filed by the United States Attorney on October 7, 2014, following an investigation by special agents of the Federal Bureau of Investigation.
Biscotto faces a potential maximum sentence of 20 years in prison and a $1 million fine. Sentencing will be scheduled after the completion of a pre-sentence report by the U.S. Probation Office.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Lubbock Man Sentenced to 151 Months in Federal Prison on Methamphetamine Trafficking ConvictionRead the Press Release
LUBBOCK, Texas — Adam Rico, 27, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 151 months in federal prison following his guilty plea in August 2014 to one count of possession with intent to distribute methamphetamine and aiding and abetting. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Co-defendant Alexis Starr Frausto, 23, also of Lubbock, was sentenced last month to 120 months in federal prison. She pleaded guilty in August 2014 to one count of being a convicted felon in possession of a firearm. Another co-defendant convicted in the case, Amber Lee Bengoa, 26, also of Lubbock, is awaiting sentencing. She pleaded guilty in August 2014 to one count of possessing a firearm in furtherance of a drug trafficking crime and aiding and abetting and faces a statutory penalty of not less than five years and up to life in federal prison and a $250,000 fine.
According to documents filed in the case, in March 2014, the South Plains Auto Theft Task Force received information from OnStar that a stolen vehicle they were attempting to find was located in the area of Lubbock’s North Frankford Storage Zone. Just as OnStar was to activate the vehicle’s horn to assist the Task Force, officers saw Rico coming out of one of the storage units. In response to their inquiry, Rico confirmed that the Camaro was inside the storage unit. After officers observed a semiautomatic rifle leaning against the wall of the storage unit, they entered the unit to perform a protective sweep for additional weapons or individuals. Rico and co-defendant Frausto were the only individuals in the unit, but officers observed methamphetamine in plain view.
Officers obtained a search warrant to search the storage unit and located methamphetamine, cocaine, marijuana, $4,452 in cash, two stolen vehicles, drug packaging and scales. Frausto admitted that she and Rico knowingly possessed the semiautomatic rifle, and she further admitted that she was a convicted felon.
Approximately two weeks later, the Lubbock County Sheriff’s Office, which had been investigating Bengoa for narcotics and counterfeiting, observed her driving a vehicle without a license. During the ensuing traffic stop, it was determined that the two adult passengers in the vehicle were wanted on warrants and were arrested. With Bengoa’s consent, officers searched the vehicle and located, in the front seat, a 9mm semiautomatic handgun, methamphetamine, cocaine, and drug trafficking materials, such as packaging material and scales, all within arms’ reach of Bengoa. She admitted that she and the adult passengers in the vehicle knowingly possessed the firearm in furtherance of intending to distribute the methamphetamine in the vehicle.
The Lubbock County Sheriff’s Office led the investigation, with the assistance of the Lubbock Police Department, South Plains Auto Theft Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Justin Cunningham is in charge of the prosecution.
Local Tax Preparer Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – The owner and operator of a St. Louis County tax preparation service was sentenced for filing false returns and stealing the identities of taxpayers.
RONALD SHONIWA, of Florissant, Missouri, was sentenced to 30 months imprisonment for a stolen identity and tax fraud scheme he perpetrated as the owner of Rapid Tax Service in St. Louis County between 2009 and 2012.
According to the plea agreement, Shoniwa filed 48 false tax returns calling for $188,414 in improper refunds between 2009 and 2012. The refunds were generated by Shoniwa’s false entries as to income and educational expenses so that tax credits would be improperly paid to the individual filer. On numerous occasions, Shoniwa admitted to identity theft by preparing these false returns without the knowledge or authorization of the individual listed on the return.
Shoniwa pled guilty to theft of government funds in July. He appeared today for sentencing before U.S. District Judge Carol E. Jackson.
In addition to the term of imprisonment, Shoniwa was ordered to pay restitution to the United States in the amount of the false returns. A native of Zimbabwe, Shoniwa was also ordered to cooperate in deportation proceedings.
"While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Protecting taxpayer dollars is a matter we take extremely seriously."
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney's Office.
Leader of Green Bay Timeshare Resale Scam That Targeted the Elderly Sentenced to Federal PrisonRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin, announced that Mark S. Parks (age: 40) of Denmark, Wisconsin, was sentenced to 108 months in federal prison by Chief United States District Court Judge William C. Griesbach. Parks had previously pled guilty to a single count of conspiracy to commit mail and wire fraud and was also subject to an enhanced penalty under the “Senior Citizens Against Marketing Scams” or SCAMS Act for his role in operating a telemarketing fraud that targeted individuals over the age of 55 years old.
Parks was indicted last year along with seven others for his role in operating a fraudulent timeshare resale scheme located in Green Bay, Wisconsin, which resulted in over three thousand victims in all fifty states and Canada being defrauded of approximately $2.5 million. The scheme spanned from April 2007 to April 2011, and operated under several different business entities, including: Integrated Advertising Solutions, National Timeshare Resales, Administrative Timeshare Resales, and Midwest Timeshares. Despite the execution of a federal search warrant in April 2011, evidence showed Parks continued to operate under the name Time4Cash, LLC out of an office in Appleton, Wisconsin, until his arrest in July 2013. The court found that Parks was a leader in the conspiracy, and had worked in numerous timeshare resale scams since 2001.
Evidence showed that timeshare owners, most of them elderly, were contacted by telemarketers and told that “interested buyers” were prepared to purchase their timeshares in exchange for upfront fees ranging from a few hundred dollars to a few thousand dollars. After handing over their payment information, victims received a one page contract which informed them that they were merely paying for “advertising” on the company’s website. Telemarketers determined the fee amount based solely on the vulnerability and susceptibility of the victims to their deceitful sales pitch. Victims that contacted the companies seeking a refund or inquiring about the status of the sale of their timeshare were repeatedly told lies or given excuses designed to keep them from contacting their financial institution and stopping payment to the fraudulent entities. Many of the victims, desperate to unburden themselves of yearly maintenance fees charged by their timeshare resort, had fallen victim to similar schemes in the past.
In pronouncing sentence Chief Judge Griesbach noted the high number of victims, their level of vulnerability, and the millions of dollars in loss suffered as a result of the defendant’s fraud. The judge described Parks’ fraudulent acts as “deliberate and sophisticated” and noted that it was a “very aggravated conspiracy” that “preyed on the elderly in a very cruel way.” In addition to his prison sentence, Parks was ordered to pay restitution to his victims and was placed on three years of supervised release.
This case was a joint investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service, with assistance from the Better Business Bureau, and the Wisconsin Department of Agriculture Trade and Consumer Protection. This case was prosecuted by Assistant United States Attorneys Matthew L. Jacobs and Daniel R. Humble.
Over the past decade similar timeshare resale telemarketing schemes have grown exponentially, due to a glut of timeshare ownership and rising maintenance fees. Many of these fraudulent schemes are operated by companies based in Florida and Nevada. Timeshare owners receiving solicitations to sell or advertise their ownership interests should contact the Federal Trade Commission, United States Postal Inspection Service, local FBI office, their State’s office of consumer protection, or State Attorney General’s office
Law Enforcement Arrests Members and Associates of Various White Supremacist Organizations on Drug Trafficking Conspiracy ChargesRead the Press Release
DALLAS — Following a law enforcement operation led by the Texas Department of Public Safety Criminal Investigations Division (DPS-CID), 37 individuals have been charged with federal offenses stemming from their respective roles in a drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to October 2014, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Defendants who were charged and who are in custody include:
• George Pass, aka “Tennessee,” 40, of Desoto
• Rhonda Long, aka “Queen Saltine,” 51, of Mesquite
• Brandon Crow, 29, of Garland
• Nia Reed, 27, of Rowlett
• John Carl Hall, aka “Scooter,” 34, of Dallas
• Cesar Zarate, 26, of Duncanville
• Sarah West, 27, of Dallas
• Bradley Wiltcher, 40, of Dallas
• Michael Bass, aka “Sleepy,” 45, of Dallas
• Patrick Penney, aka “Pacman,” 29, of Mesquite
• Clifton Clowers, 36, of Mesquite
• Michael McCoy, aka “Bam Bam,” 45, of Garland
• Christopher Jacobo, aka “Taco Chris,” 39, of Garland
• Jason Eastham, 34, of Mesquite
• Cheyenne Miller, aka “CJ,” 36, of Mesquite
• Christopher Arnold, aka “Phreek,” 40, of Denison
• Sean Sharer, aka “Cowboy Sean,” 42, of Mesquite
• Alysha Hayes, 22, of Rowlett
• Jaclyn Hooker, aka “Queen Bee,” 36, of Mesquite
• Francisco Coronado, aka “Frank,” 27, of Dallas
• Kenneth Etter, 25, of Tulsa, Oklahoma
• Joseph Tenpenny, 29, of Tulsa, Oklahoma
• Dusty Bryant, 21, of Tulsa, Oklahoma
• Gregory Oldfield, aka “Casper,” 41, of Garland
• Casey Rose, 35, of Mesquite
• Matthew Hays, aka “Cody,” 32, of Richardson
• Patricia Tucker, aka “Peppermint Patty,” 44, of Mesquite
• Jeffrey Heathington, 37, of Point
• Richard Garcia, aka “Charlie Brown,” 38, of Dallas
• Michael Atkins, aka “Duke,” 38, of Garland
• William McDowell, aka “Scout,” 33, of Mesquite
• Christy McCellon, aka “90,” 38, of Quitman
The just-unsealed superseding indictment in the case charges each of the above defendants with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine. In addition, each of the defendants, with the exception of Garcia and McCellon, is charged with one substantive count of possession of methamphetamine with the intent to distribute. Penney is also charged with one substantive count of possession of heroin with intent to distribute. Crow and Garcia are also each charged with one count of being a felon in possession of a firearm.
Three other individuals, Eliezer Jarillo Gonzalez, 22, Alejando Ornelas, 33 and Javier Eduardo Dominquez, 23, all of Dallas, were also arrested and have been charged in a federal criminal complaint with their roles in the conspiracy.
According to the indictment, the defendants were members of, or associated with, various white supremacist organizations, including the “Aryan Brotherhood of Texas” (ABT), the “Aryan Circle,” the “Irish Mob,” and the “Dirty White Boys.” Despite their differences, they would often collaborate for purposes of drug distribution or other illegal ventures. The indictment alleges that since January 2013, the defendants conspired together, and with others, to possess with intent to distribute 500 grams or more of methamphetamine. According to the indictment, the defendants used stash houses and other locations to store the quantities of methamphetamine. Each of the co-conspirators was linked to one another either directly or through another co-conspirator. Certain co-conspirators acted as hubs for narcotics trafficking, supplying methamphetamine to numerous other co-conspirators. Throughout the investigation, over 16 pounds of methamphetamine and five firearms were seized.
A federal indictment is an accusation by a grand jury. A complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge; the government has 30 days to present the matter to a grand jury for indictment.
A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalty for each count of the drug trafficking conspiracy is life in federal prison and millions of dollars in fines. The statutory maximum penalty for each substantive count of possession of methamphetamine or heroin with the intent to distribute is twenty years. The maximum statutory penalty for being a felon in possession of a firearm is ten years. The indictment also includes a forfeiture allegation which would require the defendants, upon conviction, to forfeit all real or personal property derived from the proceeds of their offense.
The investigation is being led by the DPS-CID Gang Unit with assistance from the Dallas Police Department Criminal Intelligence Unit, the Garland Police Department Neighborhood Police Officer Unit, the Mesquite and Rockwall Police Departments and U.S. Immigrations and Customs Enforcement Homeland Security Investigations.
Assistant U.S. Attorney P. J. Meitl is prosecuting.
Justice Department Files Sexual Harassment Lawsuit in West Virginia Against Owner and Property Managers of Perkins Parke ApartmentsRead the Press Release
The Justice Department announced it has filed a lawsuit against Encore Management Co. Inc., Perkins Parke Limited Partnership and three former employees of Perkins Parke Apartments in Cross Lanes, West Virginia, alleging that female tenants have been subjected to sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit, filed today in federal court for the Southern District of West Virginia, alleges that Perkins Parke’s district manager, Anthony James, and maintenance worker, Christopher T. James, have sexually harassed female tenants at the complex, and that Perkins Parke’s site manager, Kisha James, failed to take appropriate steps when residents complained about the harassment. The complaint alleges that such harassment has included entering the residences of female tenants without permission or notice; conditioning housing or housing benefits on female tenants’ agreement to engage in sexual acts; coercing female tenants to engage in unwelcome sexual acts; making unwelcome sexual comments and unwelcome sexual advances to female tenants; subjecting female tenants to unwanted sexual touching and other unwanted sexual acts; and taking adverse actions against female residents when they refused the sexual advances or reported the unwelcome conduct.
“No woman should have to live in fear of sexual harassment in her home,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department enforces the Fair Housing Act to vindicate these important rights.”
“Safe and secure housing is one of humanity’s most basic needs,” said U.S. Attorney R. Booth Goodwin for the Southern District of West Virginia. “Threats to that safety and security, such as those alleged in the complaint, and making housing available contingent upon the performance of unwelcome acts is both a violation of federal law and human decency and will not be tolerated.“
“These housing providers preyed on poor women by sexually harassing them and retaliating against them,” said Gustavo Velasquez, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD is committed to working with the Justice Department to stop this unacceptable and illegal behavior.” The suit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination.
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 http://www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination at Perkins Parke Apartments or elsewhere can contact the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations must be proven in federal court.
Jacksonville Man Pleads Guilty to Federal Charge of Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Arnold Bernard Conrad, Jr. (51, Jacksonville) has pleaded guilty to possessing child pornography. He faces a maximum penalty of 10 years in federal prison and life term of supervised release. A sentencing date has not yet been set.
According to court documents, a detective from the Jacksonville Sheriff’s Office began an undercover operation to identify persons using a particular Internet file sharing program to obtain and share child pornography. During the investigation, the detective determined that Conrad was offering images of child pornography for distribution.
On December 15, 2011, a search warrant was executed at Conrad’s residence and two laptops and three external hard drives were seized. During an interview, Conrad stated, among other things, that the age of the youngest child in any of the downloaded child pornography was “maybe six.” Subsequent forensic analyses revealed that the computer media contained 504 images and 145 videos depicting child pornography.
This case was investigated by the Jacksonville Sheriff=s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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, 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.usdoj.gov/psc.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Strong in Great Falls on November 13, 2014, and entering pleas of Not Guilty were:
KYLE YOUNG, a 33-year-old resident of Hays, appeared on charges of strangulation and assault resulting in serious bodily injury. If convicted of the most serious charges contained in the indictment, YOUNG, faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation.. PACER Case Reference: 14-104
Appearing before U.S. Magistrate Judge Ostby in Billings on November 12, 2014, and entering pleas of Not Guilty were:
KRISTOFER MIKAL WRIGHT, a 27-year-old resident of Cody, Wyoming, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug crime. If convicted of the most serious charges contained in the indictment, WRIGHT, faces life in prison, $5,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference: 14-112
Appearing before U.S. Magistrate Judge Ostby in Billings on November 10, 2014, and entering pleas of Not Guilty were:
JUSTIN JAMES SHELTON, a 32-year-old resident of Billings, appeared on charges of failure to register as a sex offender. If convicted of the charge contained in the indictment, SHELTON, faces 10 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference: 14-110
LAWRENCE WALTER LARSON, a 45-year-old resident of Great Falls, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, LARSON, faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-17
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.
Hardee County Man Sentenced to More Than 8 Years for Trafficking in MethamphetamineRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Jefferson Lee Kirkland (68, Zolfo Springs) to eight years and one month in federal prison for conspiracy to possess with intent to distribute and to distribute methamphetamine. He pleaded guilty on August 12, 2014.
According to court documents, on March 27, 2014, Kirkland sold a pound of methamphetamine to a confidential source working for DEA. He was arrested later that day. During a search of Kirkland’s residence agents found an additional 5.5 ounces of methamphetamine, a .22 caliber handgun, and a shotgun. Kirkland identified his source of supply as his co-defendant, Jerry Mendez. Agents then arrested Mendez and executed a search warrant at his residence. Inside, they found one pound of pure methamphetamine in a kitchen freezer and a smaller amount of methamphetamine in a bedroom. They also found approximately 100 grams of cocaine powder, $12,400 in currency, and 3 handguns with ammunition inside the home. Mendez later admitted to having another 3 pounds of methamphetamine in the attic of his residence, which the agents found and seized. On September 23, 2014, Mendez pleaded guilty to the same charge as Kirkland. He is scheduled to be sentenced on December 18, 2014. The firearms and cash seized during the course of the investigation have been administratively forfeited.
This case was investigated by the Drug Enforcement Administration and the Hardee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kathy J.M. Peluso.
Grand Jury Indicts Nampa Woman on Charge of Use of Interstate Commerce Facilities in the Commission of Murder-for-HireRead the Press Release
BOISE – Monique Christine Martinez, 33, of Nampa, Idaho, was indicted on Wednesday, November 12, 2014, by the federal grand jury on one count of using interstate commerce facilities in the commission of murder-for-hire, U.S. Attorney Wendy J. Olson announced. Martinez is in custody of the U.S. Marshals Service, after having been arrested on a warrant on October 22, 2014.
According to the indictment, Martinez contacted an individual by Facebook in California in order to hire someone to kill her husband. On October 17, 2014, Martinez met with an undercover FBI Special Agent, whom she believed was a hit man. Martinez advised the undercover agent that she wanted her husband dead and provided the agent with $350 in U.S. currency and promised additional payment later in the week. She provided the agent with a handwritten note, which contained her husband’s name, the address of his employment and the address of his mother’s home, where he was recently living. Martinez showed the agent photographs of her husband on her smartphone, provided his work schedule, described his tattoos, and described the vehicle he drove. Martinez suggested that the best time to kill her husband was either as he got off work or when he was leaving his gym. Martinez was arrested on October 22, 2014, at her residence in Nampa.
Using interstate commerce facilities in the commission of murder-for-hire is punishable by up to ten years in prison, a $250,000 fine, and three years of supervised release.
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.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Grand Junction Business Owner Charged with Income Tax EvasionRead the Press Release
DENVER – Michael E. Ho, age 68, of Grand Junction, Colorado, was indicted by a federal grand on October 28, 2014 on charges of income tax evasion, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Ho was arrested yesterday without incident and appeared before a U.S. Magistrate Judge in Grand Junction federal court for his initial appearance, where he was advised of his rights, the charges pending against him, and the penalties associated with those charges. The indictment remained sealed until his initial appearance.
According to the indictment, Ho a resident of Grand Junction and owner of Five-O Enterprises, Inc. (hereinafter “Five-O”), had and received taxable income which was owed to the United States of America an income tax. He willfully attempt to evade and defeat the income tax due and owing by him for the following years:
Year
Taxable Income
Tax Owed
2006
$292,455
$41,682
2007
$214,927
$31,746
2008
$320,647
$69,473
2009
$213,887
$40,578
2010
$124,244
$11,919
2011
$208,537
$40,052
Ho evaded income tax due and owing by committing affirmative acts of evasion. Specifically, between 2006 and 2010, he attempted to conceal his ownership in, and income from a dental practice known as Skyline Dental in Grand Junction, Colorado. Ho operated as a d/b/a (“doing business as”) of Five-O. Ho owned the building in which Skyline Dental was located, and a “consulting” contract with the on-site dentist gave Ho control over almost every aspect of the practice.
In 2009 Ho instructed an accounting firm not to issue a Form 1099 to him for $156,005 in interest payments he received in 2008. In March 2010, Ho converted Skyline Dental to a non-profit corporation called Colorado Community Dental Services, and continued to operate, control and receive income from the dental practice. Between 2006 and 2011, HO willfully and intentionally failed to disclose true and accurate information to his accountant/tax preparer regarding.
Furthermore, Ho did not timely file personal or business income tax returns with or make timely tax payments to the IRS for the tax years 2006 through 2011. In February 2013, after learning of an IRS investigation, Ho caused the preparation and filing of U.S. Income Tax Forms 1040, as well as Forms 1120S prepared for Five-O, for the tax years 2006 through 2011. The income information reported on the forms was false. The Forms 1120S failed to properly report all income earned by Five-O d/b/a Preventative Dental, which unreported income would have flowed through to Ho’s Forms 1040.
Ho was charged with six counts of income tax evasion which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Michelle M. Heldmyer.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Georgia Residents Indicted for Retail Fraud SchemeRead the Press Release
Ten Defendants Used Fraudulent Debit Cards to Make Purchases in Treasure Valley
BOISE - Rakeen Anderson, 31, of Atlanta, Georgia, Kyandre Banks, 34, of Lilburn, Georgia, Terrance Barimah, 26, of Floranceville, Georgia, Clarence Collins, 34, of Douglasville, Georgia, Jean Estinville, 26, of Lawrenceville, Georgia, Rashine Kale, 38, of Lawrenceville, Georgia, Charles Moore, 25, of Stone Mountain, Georgia, Jonathan Penn, 20, of Suwanee, Georgia, Brian Treadwell, 25, of Buford, Georgia, and Mikki Williams, 24, of Atlanta, Georgia, were indicted by a federal grand jury Wednesday on charges relating to a wire fraud scheme, U.S. Attorney Wendy J. Olson announced. Banks, Collins, Estinville, Kale, Moore, Penn, Treadwell, and Williams are each charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Anderson is charged with conspiracy to commit wire fraud and wire fraud. Barimah is charged with conspiracy to commit wire fraud and illegal possession of device-making equipment.
The Boise Police Department arrested each of the defendants on October 6, 2014, on charges of burglary and possession of fraudulent financial transaction cards. Those charges were dismissed as to each of the defendants in light on the federal charges. An arraignment dates has not been set.
The indictment charges the defendants with devising a scheme to defraud retail stores in Idaho by materially false and fraudulent pretenses, representations, and promises, by fraudulently using pre-paid debit cards encoded with unauthorized access device numbers belonging to unknowing third party victims to purchase pre-paid debit and gift cards from retail stores. The indictment alleges that the defendants traveled to Idaho for the purpose of executing their scheme, rented automobiles and hotel rooms, and traveled to numerous retail stores in the Boise area on October 5and 6, 2014. The indictment alleges that the merchandise purchases resulted in an interstate wire transmission, and that the unauthorized access device numbers belonged to real individuals.
“These charges send the clear message that law enforcement in Idaho will work, quickly, cooperatively and aggressively to disrupt traveling fraudulent debit and credit card scams,” said Olson. “Idaho retailers are not open game, and Idahoans will not tolerate this conduct. I commend the outstanding investigative work of the Boise Police Department and the United States Secret Service.”
Conspiracy to commit wire fraud and wire fraud is punishable by up to 20 years in prison, a $250,000 fine, and three years of supervised release. Aggravated identity theft is punishable by a mandatory two years in prison, to be served consecutively to the sentence imposed for the underlying felony. Illegal possession of device-making equipment is punishable by up to 15 years in prison, a $250,000 fine, and three years of supervised release.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Gastonia Man Sentenced to 7-Year Prison Term on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – On Thursday, November 13, 2014, U.S. District Judge Max O. Cogburn, Jr. sentenced Joseph Lee Schaffer, 44, of Gastonia, N.C. to 84 months in prison on child pornography charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Moore was ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division and Chief Robert C. Helton of the Gastonia Police Department.
Schaffer pleaded guilty in April 2013 to one count of transportation of child pornography and aiding and abetting the transportation of child pornography and one count of possession of child pornography. According to filed documents and statements made in court, in December 2011, law enforcement became aware of Schaffer’s extensive collection of child pornography which he was downloading from and sharing over the Internet. Court records indicate that law enforcement executed a search warrant at Schaffer’s home and seized his computers. A forensic examination of Schaffer’s computers revealed that he possessed over 6,000 images and hundreds of videos of children being sexually abused, including 1,540 images of child pornography victims under the age of five. Court records show that the child pornography in Schaffer’s possession included at least 87 different children already identified by law enforcement as victims of child pornography.
Schaffer has been ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and the Gastonia Police Department. Assistant U.S. Attorneys Cortney S. Randall and David A. Thorneloe prosecuted the case.
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 U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Former Owner of Empire Towers Indicted in Fraudulent $7 Million Bond SchemeRead the Press Release
Allegedly Misled Over 50 Individual Investors Who Bought Bonds
Baltimore, Maryland - A federal grand jury has indicted Wilfred T. Azar, III, age 53, formerly of Queenstown, Maryland, on charges of securities fraud. The indictment was returned on
November 4, 2014, and unsealed today.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Sharon B. Binger, Director of the Securities and Exchange Commission’s Philadelphia Regional Office.
Empire Corporation owned Empire Towers Corporation. Empire Towers Corporation’s primary asset was Empire Towers, a 10 story office building in Glen Burnie, Maryland. Azar was president and majority owner of Empire Corporation and Empire Towers Corporation.
The indictment alleges that by January 2006, Empire Corporation could no longer pay its expenses and was effectively insolvent. By 2007, Empire Towers Corporation had exhausted its lines of credit from lending institutions.
From January 2006 to April 2010, Azar caused Empire Corporation to sell bonds to over 50 individual investors for more than $7 million. While many of the bonds were titled “registered,” the bonds were not registered with either the U.S. Securities and Exchange Commission (SEC) or the State of Maryland.
According to the indictment, Azar falsely told investors that Empire Corporation was in good financial health, and that the money would be used to renovate the Empire Towers office building. Azar failed to inform investors that he used most of the money raised from previous bond sales for his own personal purposes. Although the bonds were issued by Empire Corporation, Azar diverted millions of dollars of proceeds from the bond sales to his own bank account and the bank accounts of other companies that he controlled. He used the money to pay his personal expenses, including the purchase of luxury vehicles and vacations, as well as to finance his other real estate ventures and yacht brokerage business.
Azar faces a maximum sentence of 20 years in prison. No court appearance has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Also today, the SEC has filed a complaint against Azar and another individual in connection with the scheme.
United States Attorney Rod J. Rosenstein praised the FBI and SEC for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory Bockin and Trial Attorney Kenneth Vert of the U.S. Justice Department, Tax Division, who are prosecuting the case.
Former Executives of Nuclear Power Company IndictedRead the Press Release
Donald L. Gillispie and Jennifer R. Ransom Charged with 14 Counts of Conspiracy, Securities and Wire Fraud, False Tax Returns, False Statements
BOISE - Donald L. Gillispie, 71, of Meridian, Idaho, and Jennifer R. Ransom, 40, of Meridian, Idaho, were indicted November 13, 2014, by a federal grand jury sitting in Boise. The defendants were charged with 14 counts of conspiracy, securities fraud, wire fraud, filing false tax returns, and making false statements to federal agents, U.S. Attorney Wendy J. Olson announced. An initial appearance is set for Gillispie on November 14, 2014.
The indictment alleges that the defendants were executives of Alternate Energy Holdings, Inc. (“AEHI”), a development stage company headquartered in Eagle, Idaho, that planned to construct and operate a nuclear power plant in Payette County, Idaho. Mr. Gillispie was the founder, and at various times since 2006, the President, Chief Executive Officer, Chief Operating Officer, Director, and Chairman, of AEHI. Ms. Ransom was the Senior Vice President of Administration and Secretary of AEHI.
The indictment alleges that, beginning in October of 2006, and continuing through December of 2010, the defendants conspired to manipulate and inflate the market price of AEHI stock, which was traded on the public over-the-counter and Pink Sheet markets. According to the indictment, the purpose of attempting to inflate the market price of AEHI was to attract private investors to purchase AEHI stock – which AEHI offered to them at a discount from the market price – and thus obtain cash financing for the company. The indictment alleges that, the defendants recruited nominees to purchase AEHI stock, provided them with company funds, and instructed them on the timing, quantity, and price to purchase AEHI stock, so as to most effectively attempt to artificially inflate the price.
According to the indictment, during a period when attempts were being made to artificially inflate the price of AEHI stock, Ms. Ransom sold approximately 1,000,000 shares of her AEHI stock and received approximately $675,326 in return. Of this amount, she provided approximately $190,000 to Mr. Gillispie. Also during this period, relatives of Mr. Gillispie sold approximately 10,778,000 shares of their AEHI stock and received approximately $3,715,927 in return.
The indictment alleges that, from October of 2006 to October of 2010, AEHI raised approximately $14 million in capital financing from private investors. During this period of time, AEHI did not generate any material income. From the $14 million in investor money, the defendants received significant salaries and other compensation that they did not report as income to the Internal Revenue Service.
According to the indictment, Ms. Ransom made false statements to a tax compliance officer during a civil audit interview, and later, to investigating law enforcement agents of the Internal Revenue Service and Federal Bureau of Investigation.
“Those who manipulate securities markets and deceive investors pose a significant risk to our financial system,” said Olson. “Those who further defraud the United States and their fellow tax payers by failing to pay taxes on their ill-gotten gains must not be allowed to manipulate the system. The Department of Justice and its federal law enforcement partners will vigorously investigate and prosecute such conduct.”
“Their motivation in this stock scheme was based purely on greed which was coupled with tax fraud and lying to IRS agents,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the state of Idaho.
The charge of conspiracy to commit securities fraud is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of securities fraud is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of filing false tax returns is punishable by up to three years in prison, a maximum fine of $100,000, and up to one year of supervised release. The charge of false statements to federal agents is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case is being investigated by the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation. The case is being prosecuted by the United States Attorney’s Office, District of Idaho, and the United States Department of Justice, Tax Division.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Former Education Exec Sentenced for Stealing from Program Receiving Federal FundsRead the Press Release
PITTSBURGH - A resident of Grove City, Pennsylvania, has been sentenced in federal court to three years probation, which includes two months in a community confinement center, 150 hours of community service, and a $2,000 fine on her conviction of theft concerning a program receiving federal funds, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Cecelia Yauger, 56.
According to information presented to the court, from in and around January 2012, to in and around December 2012, Yauger, being an agent of the Midwestern Intermediate Unit IV (“IU4”), did knowingly steal property worth at least $5,000, which was owned by and under the custody and control of IU4.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service, and the United States Department of Education, Office of Inspector General for the investigation leading to the successful prosecution of Yauger.
Former Eaton Employee Indicted for Installing MalwareRead the Press Release
A federal indictment was unsealed today charging Arturas Samoilovas, age 35, of Stow, Ohio, with one count of transmitting and attempting to transmit computer codes, programs or commands, intending to cause damage to a protected computer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
“This defendant sought to disrupt a company’s operations through its computer system,” Dettelbach said. “Cyber security is a priority for our office, to protect both our national security and the companies and employers in our district.”
“Mr. Samoilovas, a former contractor at Eaton with considerable knowledge of the company's computer networks, must be held responsible for his criminal actions,” Anthony said. “If activated, his placement of malicious software, also known as ‘malware’, would have caused significant damage to Eaton Corporation's internal computer network.”
Samoilovas was employed at Eaton Corporation as a contract employee between November 2013 and May 21, 2014, where he worked as a financial analyst. Samoilovas applied for several other positions at Eaton prior to the expiration of his temporary employment contract, but was not selected, according to the indictment.
On or about May 21, 2014, Samoilovas accessed the Eaton Corporation computer system and inserted certain malicious computer codes, programs or instructions which would delete files or data from the Eaton Corporation computer system. The malicious code was discovered after Samoilovas contacted a former co-worker on May 23, 2014, and disclosed the existence of the malicious code, according to the indictment.
The case is being prosecuted by Assistant United States Attorney Robert W. Kern following an investigation by the Cleveland office of the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Crisp & Cole Office Manager Sentenced to 18 Months in PrisonRead the Press Release
FRESNO, Calif. – United States District Judge Lawrence J. O’Neill sentenced Sneha Ramesh Mohammadi, 52, of Bakersfield, to 18 months in prison, to be followed by five years of supervised release, for her involvement in an extensive mortgage fraud scheme that ran from January 2004 to September 2007, United States Attorney Benjamin B. Wagner announced today. Judge O’Neill also ordered her to join her co-defendants in paying $10,747,073 in restitution.
According to court documents, David Crisp and Carl Cole owned and operated Crisp & Cole Real Estate (CCRE) and Tower Lending, an affiliated mortgage brokerage. Between January 2004 and September 2007, these defendants and others at CCRE and Tower Lending carried out a scheme to defraud mortgage companies and federally insured financial institutions, in part by using straw purchasers to acquire properties with funds borrowed from lenders based on false and fraudulent loan applications. The properties were nominally owned in the names of the straw buyers, but were controlled by the defendants and CCRE, and held for the benefit of the defendants and CCRE. According to her plea agreement, Mohammadi, who worked as the office manager at Tower Lending and then as a financial officer at CCRE between March 2005 and April 2007, admitted causing lenders losses of more than $10 million based on her involvement in the conspiracy. In addition to her role as an employee of CCRE, Mohammadi also admitted purchasing properties as a straw buyer based on false and fraudulent applications and receiving cash payments for acting as a straw buyer, all in furtherance of the conspiracy.
Mohammadi is the last defendant to be sentenced among nine others who were indicted in 2011 for their roles in the Crisp & Cole mortgage fraud scheme. David Crisp and Carl Cole each were sentenced to 17 years and seven months in prison. CCRE Chief Operations Officer Julie Farmer, the only defendant who took her case to trial, was sentenced to three years in prison. Loan officer Jayson Peter Costa was sentenced to six years and six months in prison. Real estate agent Michael Munoz was sentenced to two years in prison. Caleb Cole was sentenced to five months in prison. Jennifer Crisp was sentenced to five years of probation. Robinson Nguyen has completed his 27-month sentence.
Before Mohammadi and the other Crisp & Cole defendants were indicted, five separate cases were brought, in 2009 and 2010, against five defendants who pleaded guilty to charges relating to the Crisp & Cole scheme. Jerald Allen Teixeira is scheduled to be sentenced on February 9, 2015. The sentences for the other defendants are as follows: Megan Balod – 36 months’ probation; Christopher Lance Stovall – one year in prison; Kevin Patrick Sluga – 20 months in prison; and Leslie Sluga – three years’ probation.
The Crisp & Cole case was prosecuted by Assistant U.S. Attorneys Kirk E. Sherriff, Henry Z. Carbajal III, and Christopher D. Baker.
This case was investigated and prosecuted in coordination with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.