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Tuesday 23 September 2014
Church Rock Man Sentenced to 36 Months in Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – James Eddy, 44, an enrolled member of the Navajo Nation who resides in Church Rock, N.M., was sentenced today to 36 months in federal prison followed by three years of supervised release for his federal assault conviction.
Eddy was arrested on Jan. 7, 2014, on a criminal complaint alleging that he assaulted a 25-year-old Navajo man on the Navajo Indian Reservation in McKinley County, N.M., on Dec. 10, 2013. Eddy subsequently was indicted and charged with assault with a dangerous weapon and assault resulting in serious bodily injury.
On May 1, 2014, Eddy entered a guilty plea to both counts of the indictment and admitted assaulting the victim with a knife with the intention of inflicting serious bodily injury. Court filings reflect that, on Dec. 10, 2013, Eddy stabbed the victim in the chest with a 17-inch knife, causing the victim to sustain a life-threatening injury.
The case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Canton City Alderman SentencedRead the Press Release
Jackson, Miss - Calvin Louis Smith, 58, a former Canton City Alderman, was sentenced to 66 months in prison followed by two years of supervised release for bribery, announced U.S. Attorney Gregory K. Davis and Acting FBI Special Agent in Charge Johnnie Sharp. He was also ordered to pay a $1,000 fine.
In May, 2014, Smith was found guilty of accepting bribes in connection with a series of transactions made on behalf of the City of Canton, Mississippi.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jerry Rushing.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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CEO of China Based Energy Company Pleads Guilty to Securities FraudRead the Press Release
The Chief Executive Officer of an energy firm headquartered in Tukwila, Washington, pleaded guilty today in U.S. District Court in Seattle to two counts of Securities Fraud. DICKSON LEE, 66, served as the CEO of L & L Energy Inc., until his arrest earlier this year. L&L, a formerly NASDAQ listed company, purported to be engaged in various aspects of the coal business including mining, washing, and wholesale distribution of coal, all within the People’s Republic of China. According to the plea agreement signed today, LEE admits he falsified reports to the U.S. Securities and Exchange Commission (SEC) regarding the existence of a Chief Financial Officer and, in a separate scheme, issued under false pretenses hundreds of thousands of shares of L&L stock to individuals controlled by LEE. LEE is scheduled for sentencing by U.S. District Judge Richard A. Jones on January 9, 2015.
According to the plea agreement, in the first count of Securities Fraud, LEE admits that in 2008 and 2009, while trying to get L&L stock listed on a national exchange, he falsely reported the identity of the company’s Chief Financial Officer (CFO) and lied about the existence of adequate internal controls in public SEC filings. In fact, the person LEE claimed was the CFO had refused to accept the position, and L&L had no CFO to ensure accurate financial reporting. In 2009, when the purported CFO discovered the fraud, LEE paid the individual tens of thousands of dollars in cash and stock in exchange for her silence, and never disclosed the arrangement to shareholders. Finally, in 2013, during a subsequent SEC investigation, LEE falsely testified under oath about the CFO’s role in the company.
In the second count of Securities Fraud, LEE admits that in 2011 and 2012, he issued hundreds of thousands of company shares to third-parties in China who, at LEE’s direction, sold the shares on the market to generate revenue for cash-strapped L&L. At the time, LEE knew that the SEC had initiated an investigation into L&L’s affairs and that raising cash through established investment banks was no longer a viable option. LEE also knew that L&L’s Board had been specifically advised that it could not authorize the direct issuance and sale of stock without public disclosure of the investigation. LEE, therefore, secretly issued L&L stock to China-based individuals under false pretenses and then directed their sale without ever disclosing the truth about the company. In order to further conceal his actions, LEE directed that the shares issued be falsely recorded in L&L’s accounting records as having been issued for compensation for services, whereas none of these individuals provided any benefit to L&L in return for the shares. Between May 2011 and March 2012, LEE directed in this manner the issuance and sale of approximately 730,000 shares.
The case is being investigated by the FBI. A parallel civil case is being pursued by the SEC. The case is being prosecuted by Assistant United States Attorney Kathryn Kim Frierson.
Buffalo Woman Pleads Guilty to Smuggling Heroin into Attica Correctional FacilityRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Elizabeth Camue Martinez, 33, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute and to distribute heroin before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of 20 years in prison, a $1,000,000 fine or both.
“The willingness of some to commit crime does not end simply by presence inside prison,” said U.S. Attorney Hochul. “In this case, the vigilance of staff, law enforcement, and local prosecutors made this prosecution possible. Prison staff everywhere must continuously monitor their institutions so that inmates once and for all lose the ability to break the law.”
According to Assistant U.S. Attorney Mary Catherine Baumgarten, between April 2013 and December 2013, the defendant smuggled gram quantities of heroin and ounces of marijuana into the Attica Correctional Facility and provided it to her husband, Andres Martinez, who was at that time incarcerated in the facility, knowing that he would then distribute the heroin and marijuana to other inmates.
The investigation resulted from two overdose deaths that occurred at the Attica Correctional Facility on December 5, 2013. Saleem Ali, 51, was found unresponsive in his cell. Ali died from acute fentanyl intoxication. Glendon Jackson, 25, was found unresponsive in his cell. Jackson also died from acute fentanyl intoxication.
During the course of the investigation a third overdose death occurred. On September 16, 2013, Avery Cureton, 45, was found unresponsive in his cell. Cureton died from acute heroin intoxication.
As part of her plea, Camue Martinez admitted purchasing the heroin and marijuana from Jerome J. Tallington. The defendant, Andres Martinez and Tallington were charged in February 2014. Charges are pending against Andres Martinez and Jerome Tallington. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Office, the New York State Police, under the direction of Major Michael Cerretto, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, the Wyoming Country District Attorney’s Office, under the direction of Donald O’Geen, and the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony Annucci.
Sentencing is scheduled for January 29, 2015 at 12:30 p.m. before Judge Arcara.Army Sergeant Pleads Guilty for Scheme to Defraud the MilitaryRead the Press Release
An Army sergeant pleaded guilty today to bribery and conspiracy to defraud the government for his role in a scheme to steal more than one million gallons of fuel from the U.S. military for resale on the black market in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina, Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service (DCIS) Southeast Field Office, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division, Director Frank Robey of the U.S. Army Criminal Investigation Command (CID) Major Procurement Fraud Unit (MPFU) and Special Inspector General for Afghanistan Reconstruction John F. Sopko made the announcement.
Christopher Ciampa, 32, of Lillington, North Carolina, entered his guilty plea before U.S. District Court Judge Terrence W. Boyle of the Eastern District of North Carolina. The sentencing hearing was scheduled for the week of December 15, 2014.
“Sergeant Ciampa took bribes to help steal millions of dollars’ worth of fuel meant to support U.S. military operations in Afghanistan,” said Assistant Attorney General Caldwell. “His greed put his fellow soldiers at greater risk, and his actions stand in stark contrast to the integrity and sacrifice demonstrated every day by the men and women of our Armed Forces.”
“The DCIS, with our investigative partners, continues to aggressively pursue those who deprive the Department of Defense of much needed resources, such as fuel, critical to accomplishing its global missions,” said DCIS Special Agent in Charge Khin. “Corruption and theft in a combat environment, especially on such a large scale, degrade the effectiveness of the U.S. armed forces, and increases the danger to our warfighters by diverting those resources to our enemies
“Sergeant Christopher Ciampa betrayed his unit and nation for personal profit by entering into illegal relationships in order to personally profit from the sale and transport of fuel valued at millions of dollars,” said FBI Special Agent in Charge Strong. “These actions, especially in a wartime environment, damage the reputation of all soldiers and impede the success of coalition war efforts. Those who put the reputation and lives of their fellow servicemen and women at risk will be aggressively pursued by the FBI and our military partners dedicated to upholding justice.”
“Our highly-trained special agents are experts in fraud investigations and untangling webs of lies and deceit,” said CID MPFU Director Robey. “Whether an individual is in or out of uniform, it makes no difference, we will do everything in our investigative power to see those who defraud the Army brought to justice.”
“The crimes alleged in this case are serious and describe actions that undermine our mission in Afghanistan,” said Special Inspector General Sopko. “SIGAR will continue to work tirelessly to protect the American taxpayers’ hard earned money and bring the full weight of the justice system to bear on anyone who seeks to rob the U.S. government.”
According to his plea agreement, Ciampa was deployed to Afghanistan with the 3rd Special Forces Group Service Detachment and was assigned to Camp Brown at Kandahar Air Field between February 2011 and January 2012. During the deployment, one of Ciampa’s chief responsibilities was management of the Transportation Movement Requests (TMRs) for fuel and other items in support of military units in Afghanistan paid for by the U.S. government.
Over the course of the conspiracy, Ciampa and others created and submitted false TMRs for the purchase of thousands of gallons of fuel that were neither necessary nor used by military units. Instead, Ciampa and his co-conspirators stole the fuel and resold it on the black market in neighboring towns. Between February 2011 and December 2011, they created false TMRs for 114 large fuel tanker trucks, which could each carry approximately 10,000 gallons of fuel. All of the TMRs were awarded to a single Afghan trucking company, despite significantly higher rates charged by this company.
As a result of the criminal conduct, the United States suffered a total loss of $10,812,000. The loss resulted from stolen fuel and payments on the fraudulent TMRs in the following amounts: $9,120,000 in lost fuel and $1,692,000 in fraudulent TMRs for the 114 large tanker trucks.
Ciampa admitted that he and his co-conspirators sent some of the illicit proceeds back to the United States via wire transfer and carried some of the cash in their luggage, and Ciampa hid $180,000 of stolen funds inside stereo equipment that he shipped back to North Carolina with his unit’s gear. He used his share of the proceeds from the scheme to purchase a truck and other personal items.
The case was investigated by DCIS, FBI, CID MPFU and the Special Inspector General for Afghanistan Reconstruction (SIGAR). The case is being prosecuted by Trial Attorney Wade Weems on detail to the Criminal Division’s Fraud Section from SIGAR and Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina.
Armed Career Criminal Receives 15-Year Federal SentenceRead the Press Release
PORTLAND, Ore. – Robert Todd Britt, 27, was sentenced today by U.S. District Judge Anna J. Brown to 15 years in federal prison following his plea of guilty to being an Armed Career Criminal in possession of a firearm. Britt pled guilty to the charge on June 11, 2014, and has been in custody since the time of his arrest on December 26, 2013.
Salem police officers arrested Britt based on a state warrant charging him with robbery II. At the time of his arrest, a loaded .22 caliber pistol was found in his front pocket. The Armed Career Criminal Act provides for a mandatory minimum sentence of 15 years’ incarceration for individuals who have previously been convicted of at least three violent felonies or serious drug offenses. Britt was eligible for the 15-year sentence based upon the following prior convictions:
- Burglary I, Marion County, 2006, sentence of 22 months imposed following revocation of the initial probationary sentence;
- Delivery of a controlled substance, Marion County, 2008, sentence of two months imposed following revocation of the initial probationary sentence; and
- Delivery of a controlled substance and felon in possession of a firearm, Marion County, 2009, sentence of 34 months.
The federal sentence was imposed to run concurrently with Marion County sentences received on June 25, 2014 for robbery II, identity theft, unauthorized use of a motor vehicle and assault on a public safety officer.
This case was investigated by ATF and the Salem Police Department. It was prosecuted by Assistant United States Attorney Fred Weinhouse.
Al Qaeda Spokesman Sulaiman Abu Ghayth Sentenced in Manhattan Federal Court to Life in Prison for Conspiring to Kill Americans, Providing Material Support to TerroristsRead the Press Release
Sulaiman Abu Ghayth Appeared with Usama Bin Laden and Ayman Al-Zawahiri Immediatelv After September 11, 2001, Threatening Additional Attacks Against the United States
United States Attorney General Eric Holder, United States Attorney for the Southern District of New York Preet Bharara, Assistant Attorney General for National Security John P. Carlin, Assistant Director-in-Charge George Venizelos of the New York Field Office of the Federal Bureau of Investigation (FBI), and New York City Police Commissioner William J. Bratton announced that Sulaiman Abu Ghayth, aka “Salman Abu Ghayth,” Usama Bin Laden’s son-in-law and the former spokesman for al Qaeda at the time of the September 11th terrorist attacks, was sentenced today in Manhattan federal court to serve life in prison by U.S. District Judge Lewis A. Kaplan. Abu Ghayth, who was arrested overseas on Feb. 28, 2013, and first appeared in this district on March 1, 2013, was found guilty on March 26, 2014, following a three-week jury trial, of conspiring to kill U.S. nationals, conspiring to provide material support to terrorists and providing material support to terrorists.
“Justice has been served,” said Attorney General Holder. “This outcome ensures that Sulaiman Abu Ghayth, a senior member of al Qaeda and an associate of Usama bin Laden, will never again set foot outside a prison cell. From beginning to end, this trial, conviction and sentencing have underscored the power of America’s Article III court system to deliver swift and certain justice in cases involving terrorism defendants. We will continue to rely on this robust and proven system to hold accountable anyone who would harm our nation and its people. And we will never waver, and never relent, in our pursuit of violent extremists.”
“As the face and voice of al Qaeda in the days and weeks after the 9/11 attacks, Abu Ghayth conspired with Usama Bin Laden and others and announced to the world al Qaeda’s deadly intentions to continue to attack America,” said Assistant Attorney General Carlin. “For his role in al Qaeda's plot to kill Americans, Abu Ghayth will now spend the rest of his life in prison. This case highlights our resolve to find and bring to justice - no matter how long it takes - those who plot to attack our citizens and our interests around the world. I want to thank all of the agents, analysts, and prosecutors who are responsible for this result.”
“Sulaiman Abu Ghayth was the mouthpiece of murder and menace for al Qaeda,” said U.S. Attorney Bharara. “Hours after the 9/11 attacks, Abu Ghayth, Usama bin Laden’s propaganda minister, was exhorting others to pledge themselves to al Qaeda in the cause of murdering more Americans. It has been 13 years since that terrible day, but from the day Abu Ghayth was brought to the United States 19 months ago, justice for him has been swift and fair. Today, having been afforded a fair and impartial trial in an American civilian court at which a jury unanimously convicted him of material support to al Qaeda and conspiring to kill Americans, Abu Ghayth has been sentenced to life in prison. No sentence can restore what was taken from the families of al Qaeda’s victims. But today’s sentence ensures that Sulaiman Abu Ghayth will never be free to incite or support mass murder again.”
“As the spokesman for al Qaeda, Abu Ghayth espoused messages of terror, hate and fear to motivate others to harm our country, underestimating the resiliency of the United States to stand strong in the face of violence and adversity,” said FBI Assistant Director-in-Charge Venizelos. “Today's sentence is the culmination of years of hard work and cooperative efforts among law enforcement professionals to seek justice for those who lost their lives in the 9/11 attacks. Along with its law enforcement partners, the FBI's Joint Terrorism Task Force will vigorously pursue those who support this radical terrorist agenda.”
“Sulaiman Abu Ghayth was a key spokesman for al-Qaida and had access to the terrorist group's senior leadership as he took to the airwaves and threatened further attacks as our city was recovering from the horror of 9-11,” said NYPD Commissioner Bratton. “His capture, trial and conviction is a reminder that the NYPD detectives and FBI agents of the Joint Terrorist Task Force will follow leads anywhere in the world to bring terrorists to justice.”
According to the evidence presented at trial, statements made during other public proceedings including today’s sentencing, and other court documents:
Since around 1989, al Qaeda has been an international terrorist organization, dedicated to opposing non-Islamic governments with force and violence. Usama Bin Laden served as the leader, or “emir,” of al Qaeda until his death on or about May 2, 2011. Members of al Qaeda typically have pledged an oath of allegiance, called bayat, to Bin Laden and to al Qaeda.
The core purpose of al Qaeda, as stated by Bin Laden and other leaders, is to support violent attacks against property and nationals, both military and civilian, of the United States and other countries. Between 1989 and 2001, al Qaeda established training camps, guest houses, and business operations in Afghanistan, Pakistan and other countries for the purpose of training and supporting its agenda of violence and murder. Members and associates of al Qaeda have executed a number of terrorist attacks, all in furtherance of the organization’s stated conspiracy to kill Americans, including the attacks on the United States on Sept. 11, 2001, in New York, Virginia and Pennsylvania, which killed approximately 2,976 people.
From at least May 2001 up to around 2002, Abu Ghayth served alongside Bin Laden, appearing with Bin Laden and his then-deputy and now the declared leader of al Qaeda, Ayman al-Zawahiri, speaking on behalf of al Qaeda and in support of Bin Laden’s terrorist objectives, recruiting young men to join al Qaeda and its murderous mission against the United States, and warning that attacks similar to those of Sept. 11, 2001, would continue.
In particular, around May 2001, Abu Ghayth urged young al Qaeda recruits at a guest house in Kandahar, Afghanistan, to swear bayat to Bin Laden, shortly before these men were brought to an al Qaeda training camp. On the evening of Sept. 11, 2001, immediately after the terrorist attacks on the United States, Bin Laden summoned Abu Ghayth and asked for his assistance, which Abu Ghayth agreed to provide. On the morning of Sept. 12, 2001, Abu Ghayth appeared with Bin Laden, Zawahiri, and another al Qaeda leader, and spoke on behalf of al Qaeda in a speech that would be disseminated around the world, warning the United States and its allies that “[a] great army is gathering against you” and called upon “the nation of Islam” to do battle against “the Jews, the Christians and the Americans.” Also, after the Sept. 11, 2001, terrorist attacks, Abu Ghayth delivered speeches in which he addressed the then-U.S. Secretary of State and warned that “the storms shall not stop, especially the Airplanes Storm,” and advised Muslims, children, and opponents of the United States “not to board any aircraft and not to live in high rises.” At this time, in Afghanistan, Bin Laden and others within al Qaeda were plotting to detonate shoe bombs aboard flights within or en route to the United States.
Abu Ghayth continued to speak on behalf of al Qaeda as the terrorist organization’s spokesperson through 2002, repeatedly working to drive more young men to al Qaeda. Also in 2002, Abu Ghayth arranged to be, and was, successfully smuggled from Afghanistan into Iran, where he was later arrested with other al Qaeda leaders.
* * *
In addition to a prison term of life, Abu Ghayth was ordered to forfeit all foreign and domestic assets derived from, involved in, and used and intended to be used to commit terrorism against the United States, its citizens and residents, and their property, and was ordered to pay a $300 special assessment fee.
Abu Ghayth’s conviction is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, United States Marshals Service, and other agencies – and the National Security Division of the U.S. Department of Justice. The Justice Department’s Office of International Affairs and the U.S. Department of State also provided assistance.
The prosecution is being handled by Assistant United States Attorneys John P. Cronan, Nicholas J. Lewin and Michael Ferrara of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance from Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section, Tara M. LaMorte of the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, and Diane Gujarati, Deputy Chief of the Criminal Division of the U.S. Attorney’s Office for the Southern District of New York.
Al Qaeda Spokesman Sulaiman Abu Ghayth Sentenced in Manhattan Federal Court to Life in Prison for Conspiring to Kill Americans, Providing Material Support to TerroristsRead the Press Release
Eric Holder, the Attorney General of the United States, Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, the Assistant Attorney General for National Security, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Police Commissioner of the City of New York, announced that SULAIMAN ABU GHAYTH, a/k/a “Salman Abu Ghayth,” Usama Bin Laden’s son-in-law and the former spokesman for al Qaeda at the time of the September 11th terrorist attacks, was sentenced today in Manhattan federal court to life in prison by U.S. District Judge Lewis A. Kaplan. ABU GHAYTH, who was arrested overseas on February 28, 2013, and first appeared in this District on March 1, 2013, was found guilty on March 26, 2014, following a three-week jury trial, of conspiring to kill U.S. nationals, conspiring to provide material support to terrorists, and providing material support to terrorists.
Attorney General Eric Holder said: “Justice has been served. This outcome ensures that Sulaiman Abu Ghayth, a senior member of al Qaeda and an associate of Usama bin Laden, will never again set foot outside a prison cell. From beginning to end, this trial, conviction and sentencing have underscored the power of America’s Article III court system to deliver swift and certain justice in cases involving terrorism defendants. We will continue to rely on this robust and proven system to hold accountable anyone who would harm our nation and its people. And we will never waver, and never relent, in our pursuit of violent extremists.”
Manhattan U.S. Attorney Preet Bharara said: “Sulaiman Abu Ghayth was the mouthpiece of murder and menace for al Qaeda. Hours after the 9/11 attacks, Abu Ghayth, Usama bin Laden’s propaganda minister, was exhorting others to pledge themselves to al Qaeda in the cause of murdering more Americans. It has been 13 years since that terrible day, but from the day Abu Ghayth was brought to the United States 19 months ago, justice for him has been swift and fair. Today, having been afforded a fair and impartial trial in an American civilian court at which a jury unanimously convicted him of material support to al Qaeda and conspiring to kill Americans, Abu Ghayth has been sentenced to life in prison. No sentence can restore what was taken from the families of al Qaeda’s victims. But today’s sentence ensures that Sulaiman Abu Ghayth will never be free to incite or support mass murder again.”
Assistant Attorney General John Carlin said: “As the face and voice of al Qaeda in the days and weeks after the 9/11 attacks, Abu Ghayth conspired with Usama Bin Laden and others and announced to the world al Qaeda's deadly intentions to continue to attack America. For his role in al Qaeda's plot to kill Americans, Abu Ghayth will now spend the rest of his life in prison. This case highlights our resolve to find and bring to justice – no matter how long it takes – those who plot to attack our citizens and our interests around the world. I want to thank all of the agents, analysts, and prosecutors who are responsible for this result.”
FBI Assistant Director-in-Charge George Venizelos said: “As the spokesman for al Qaeda, Abu Ghayth espoused messages of terror, hate, and fear to motivate others to harm our country, underestimating the resiliency of the United States to stand strong in the face of violence and adversity. Today's sentence is the culmination of years of hard work and cooperative efforts among law enforcement professionals to seek justice for those who lost their lives in the 9/11 attacks. Along with its law enforcement partners, the FBI's Joint Terrorism Task Force will vigorously pursue those who support this radical terrorist agenda.”
NYPD Commissioner William J. Bratton said: “Sulaiman Abu Ghayth was a key spokesman for al Qaeda and had access to the terrorist group's senior leadership as he took to the airwaves and threatened further attacks as our city was recovering from the horror of 9/11. His capture, trial and conviction is a reminder that the NYPD detectives and FBI agents of the Joint Terrorist Task Force will follow leads anywhere in the world to bring terrorists to justice.”
According to the evidence presented at trial, statements made during other public proceedings including today’s sentencing, and other court documents:
Since around 1989, al Qaeda has been an international terrorist organization, dedicated to opposing non-Islamic governments with force and violence. Usama Bin Laden served as the leader, or “emir,” of al Qaeda until his death on or about May 2, 2011. Members of al Qaeda typically have pledged an oath of allegiance, called bayat, to Bin Laden and to al Qaeda.
The core purpose of al Qaeda, as stated by Bin Laden and other leaders, is to support violent attacks against property and nationals, both military and civilian, of the United States and other countries. Between 1989 and 2001, al Qaeda established training camps, guest houses, and business operations in Afghanistan, Pakistan, and other countries for the purpose of training and supporting its agenda of violence and murder. Members and associates of al Qaeda have executed a number of terrorist attacks, all in furtherance of the organization’s stated conspiracy to kill Americans, including the attacks on the United States on September 11, 2001, in New York, Virginia, and Pennsylvania, which killed approximately 2,976 people.
From at least May 2001 up to around 2002, ABU GHAYTH served alongside Bin Laden, appearing with Bin Laden and his then-deputy and now the declared leader of al Qaeda, Ayman al-Zawahiri, speaking on behalf of al Qaeda and in support of Bin Laden’s terrorist objectives, recruiting young men to join al Qaeda and its murderous mission against the United States, and warning that attacks similar to those of September 11, 2001, would continue.
In particular, around May 2001, ABU GHAYTH urged young al Qaeda recruits at a guest house in Kandahar, Afghanistan, to swear bayat to Bin Laden, shortly before these men were brought to an al Qaeda training camp. On the evening of September 11, 2001, immediately after the terrorist attacks on the United States, Bin Laden summoned ABU GHAYTH and asked for his assistance, which ABU GHAYTH agreed to provide. On the morning of September 12, 2001, ABU GHAYTH appeared with Bin Laden, Zawahiri, and another al Qaeda leader, and spoke on behalf of al Qaeda in a speech that would be disseminated around the world, warning the United States and its allies that “[a] great army is gathering against you” and called upon “the nation of Islam” to do battle against “the Jews, the Christians and the Americans.” Also, after the September 11, 2001, terrorist attacks, ABU GHAYTH delivered speeches in which he addressed the then-U.S. Secretary of State and warned that “the storms shall not stop, especially the Airplanes Storm,” and advised Muslims, children, and opponents of the United States “not to board any aircraft and not to live in high rises.” At this time, in Afghanistan, Bin Laden and others within al Qaeda were plotting to detonate shoe bombs aboard flights within or en route to the United States.
ABU GHAYTH continued to speak on behalf of al Qaeda as the terrorist organization’s spokesperson through 2002, repeatedly working to drive more young men to al Qaeda. Also in 2002, ABU GHAYTH arranged to be, and was, successfully smuggled from Afghanistan into Iran, where he was later arrested with other al Qaeda leaders.
ABU GHAYTH, 48, was convicted after trial of one count of conspiring to kill U.S. nationals, in violation of Title 18, United States Code, Section 2332(b); one count of conspiring to provide material support to terrorists, in violation of Title 18, United States Code, Section 2339A; and one count of providing material support to terrorists, in violation of Title 18, United States Code, Section 2339A. In addition to a prison term of life, ABU GHAYTH was ordered to forfeit all foreign and domestic assets derived from, involved in, and used and intended to be used to commit terrorism against the United States, its citizens and residents, and their property, and was ordered to pay a $300 special assessment fee.
ABU GHAYTH’s conviction is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, United States Marshals Service, and other agencies – and the National Security Division of the U.S. Department of Justice. The Justice Department’s Office of International Affairs and the U.S. Department of State also provided assistance.
The prosecution is being handled by Assistant United States Attorneys John P. Cronan, Nicholas J. Lewin, and Michael Ferrara of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance from Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section, Tara M. LaMorte of the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, and Diane Gujarati, Deputy Chief of the Criminal Division of the U.S. Attorney’s Office for the Southern District of New York.
21 Alleged Southside York Gang Members Charged Federally with Racketeering ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the Bureau of Alcohol, Tobacco, Firearms and Explosives announced today that a federal grand jury in Harrisburg has indicted 21 residents of York, Pa. known as members of the “Southside Gang” on charges of racketeering and drug trafficking conspiracy over a 12 year period.
The federal indictment charges that the Southside Gang is a criminal enterprise whose purpose is to protect its territory and power through intimidation, violence and threats, generate profits primarily through open-air drug dealing within its territory and violent crime, defend and retaliate on behalf of gang members, and assist members through retaliation against witnesses and thwarting efforts of law enforcement.
15 of the defendants are already in state or county prison, serving sentences for drug dealing and other violent crimes. Four men were taken into custody earlier today by ATF agents and York City Police in a coordinated operation. Four of the defendants were charged with conspiracy to distribute drugs in a federal indictment filed earlier this year.
The racketeering conspiracy indictment was filed last week under seal in the U.S. District Court in Harrisburg and unsealed today.
According to U.S. Attorney Peter Smith and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Essam E. Rabadi, the racketeering conspiracy indictment is the result of a massive two-year combined investigation by ATF, York City Police Department and the York County District Attorney’s Office with participation by the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, and the Federal Bureau of Investigation. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
“The alleged RICO offenses and resultant arrests today make certain that York City streets belong to its rightful residents and not to armed criminals. This is a stern and loud message not to join a street gang, not to illegally possess or misuse firearms, and not to pursue a life of crime,” said ATF Special Agent in Charge Sam Rabadi. “ATF, along with our state and local partners, will continue a laser-like focus on investigating and removing armed gang members from our neighborhoods to prevent and reduce firearms related violence.”
The names of those charged in the indictment are listed below. Those taken into custody today appeared before Chief Magistrate Judge Martin C. Carlson in Harrisburg. All were held in custody pending detention hearings to be held at a future date.
According to the indictment, all 21 men are or have been members or participants in the Southside Gang, which is located in the southern area of the City of York. The center of the gang area is near Maple and Duke Streets in York, a location locally known as “the Jungle.”
The gang’s continuing presence allegedly functions through an organized structure, including senior leaders “who are feared and respected;” drug traffickers engaged in narcotics distribution; and “shooters,” who commit violent acts on behalf of the gang and to protect each other. Seniority is allegedly based on “generations,” i.e., ages of the members. The “older generation” of members rules by fear and intimidation; they direct or require the “younger generation” to engage in drug trafficking, robberies or shootings in support of the Southside Gang. Order is maintained through intimidation, threats, violence and, in some cases, murder.
The indictment alleges that defendant James Abney has been a principal leader and organizer, along with six other indicted individuals. The indictment also alleges that the Southside Gang includes a group of violent drug traffickers, originally affiliated with the “Bloods,” primarily a New York-based national violent street gang. The defendants who have been the alleged leaders of the drug source group are Rolando Cruz and Mark Hernandez.
The indictment alleges criminal acts, including 15 listed in the indictment, involving violence against a rival York gang, called “Parkway,” allegedly resulting in deaths of members of both gangs and innocent bystanders.
At the same time, Southside Gang members allegedly distribute illegal drugs, mainly crack cocaine, as a major part of the criminal enterprise’s business and used and possessed firearms to protect the drugs. The indictment alleges 62 such acts carried out in furtherance of the conspiracy.
According to U.S. Attorney Smith, many gang members involved in specific drug offenses and violent acts have been investigated and prosecuted by York and York County law enforcement agencies for years as individual cases. The federal prosecution aims at dismantling the organization by exposing and attacking its ongoing structure and leadership. The U.S. Attorney’s Office and ATF noted that the federal investigations of gang violence and drugs in York are continuing in full cooperation with local police and the York County District Attorney’s Office.
In a separate case involving violent crime activity in York, the U.S. Attorney’s Office announced the indictment last week of Jermaine Johnson, a/k/a “Face”, age 39, on charges of possession of ammunition as a felon. Johnson was arrested in New York yesterday on the basis of a federal arrest warrant issued in Harrisburg.
Indictments and 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 statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is life 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.
Name and Street Name
Age
Rolando Cruz, a/k/a “Mico”
29
29
Douglas Kelly, a/k/a “Killer”
36
Roscoe Villega, a/k/a “P Shawn”
40
James Abney, a/k/a “Doocs”
28
Tyree Eatmon, a/k/a “Ree”
26
Jahkeem Abney, a/k/a “Foo”
24
Maurice Atkinson, a/k/a “Mo”
27
Anthony Sistrunk, a/k/a “Kanye”
26
Cordaress Rogers, a/k/a “Tank”
28
Eugene Rice, a/k/a “B Mor”
26
Angel Schueg, a/k/a “Pocko”
24
Marquis Williams, a/k/a “Quis”
26
Jalik Frederick, a/k/a “Murder Cat”
21
Brandon Orr, a/k/a “B Or”
22
Malik Sturdivant, a/k/a “Base”
22
Jabree Williams, a/k/a “Minute”
23
Ronald Payton, a/k/a “Ron Ron”
22
Jerrod Brown, a/k/a “Boogie”
25
Quintez Hall, a/k/a “Q”
21
Richard Nolden, a/k/a “Rich”
24
Monday 22 September 2014
Washington County Man Misappropriated $300K in Clients' FundsRead the Press Release
PITTSBURGH - A Washington County resident pleaded guilty in federal court to charges of wire fraud and filing false tax returns, United States Attorney David J. Hickton announced today.
James Grimes, 35, of Lawrence, Pennsylvania pleaded guilty to seven counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Grimes misappropriated $313,000.00 in funds belonging to clients of his brokerage firm. He also allegedly failed to report the income realized on his tax return for the years 2007-2009.
Judge Fischer scheduled sentencing for Jan. 29, 2015 at 9 a.m. The law provides for a total sentence of 89 years in prison, a fine of $1,750,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued James Grimes’ bond.
Assistant United States Attorney James Y. Garrett is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of James Grimes.
Ville Platte Man Sentenced to 105 Months in Prison for Role in Armed Robbery of a Truck Stop/CasinoRead the Press Release
LAFAYETTE, La. –A Ville Platte man was sentenced last week to 105 months in prison for participating in the armed robbery of a St. Landry Parish casino and truck stop, U.S. Attorney Stephanie A. Finley announced today.
Dudley Stevens Nelson, 25, of Ville Platte, La., was sentenced Friday by U.S. District Judge Elizabeth E. Foote, to 21 months in prison for one count of interference with commerce by robbery and to 84 months in prison for one count of use and carrying of a firearm during and in relation to a crime of violence, for a total of 105 months in prison. He was also sentenced to serve five years of supervised release and ordered to pay $11,675 in restitution. According to evidence presented at the October 28, 2013 guilty plea, the defendant along with Ville Platte residents Arinskie Tryvon Orlandeze Jones and Ronald James Doomes robbed the Tiger Trax truck stop and casino in Whiteville, La., on April 8, 2011. Nelson admitted to driving the vehicle and knowing beforehand that a gun would be used. After robbing the truck stop and casino, the defendants left with $11,675 in a white sports utility vehicle. Authorities located the vehicle and attempted a traffic stop. Three individuals exited the vehicle and fled on foot. Nelson was apprehended. Jones and Doomes turned themselves in to authorities six days later.
A federal jury found Doomes guilty of one count of armed robbery and one count of use and carrying of a firearm during and in relation to a crime of violence. Doomes’ sentencing is scheduled for November 15, 2014, and he faces a prison term of seven years to life. Jones was found guilty of one count of interference with commerce by robbery on August 27, 2014. He faces 20 years in prison. A sentencing date has not been set. They both face five years of supervised release and up to a $250,000 fine.
This case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety. The PSN attorneys prosecute a variety of federal firearms violations listed in Titles 18 and 26 of the U.S. Code, including illegal possession of firearms and commission of crimes with firearms.
The FBI, ATF and the St. Landry Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
United States Attorney Hartunian Addressed Taxpayers Against Fraud Conference and Detailed Office’s Fraud-fighting EffortsRead the Press Release
Discussed Northern District of New York’s Aggressive Civil Frauds Program
ALBANY, NEW YORK – On Wednesday, September 17, 2014, United States Attorney Richard S. Hartunian and other senior Department of Justice officials addressed the membership of Taxpayers Against Fraud, a nonprofit organization dedicated to combating fraud against the government and protecting public resources through public-private partnerships. The Acting Associate Attorney General of the United States spoke about the Department of Justice’s national fraud priorities, while United States Attorney Hartunian addressed his office’s aggressive and innovative efforts to fight fraud in upstate and central New York.
Mr. Hartunian was asked to focus his remarks on the Northern District of New York’s application of the False Claims Act, which is the United States’ strongest civil tool to deter and redress fraud committed against government programs. The Act has unique qui tam provisions, which allow private citizens to file suit alleging fraud on behalf of the government. If the government prevails in the action, the whistleblower (known as a “relator”) receives up to 30 percent of the recovery. The Department of Justice secured $3.8 billion in False Claims Act settlements and judgments last fiscal year alone, of which relators received $345 million. Several million of those dollars were recovered as a result of cases worked by Mr. Hartunian’s staff.
“As a United States Attorney, my responsibilities include protecting the public fisc and our people from harm. I am committed to fulfilling that responsibility aggressively and fairly, and I have instructed my staff to be both aggressive and fair in their interpretation and application of the False Claims Act,” explained United States Attorney Hartunian. Mr. Hartunian highlighted the following fraud cases that his office resolved this past year:
Marketing of prescription drugs for unapproved uses: His office, in conjunction with its colleagues in the Eastern District of Pennsylvania, resolved criminal and civil investigations arising from Endo Pharmaceuticals’ marketing of the prescription drug Lidoderm for uses not approved as safe and effective by the Food and Drug Administration. In total, the company agreed to pay $192.7 million in civil damages, criminal forfeiture, and monetary penalties and to enter into a deferred prosecution agreement with enhanced compliance measures. This settlement emphasized that public health is protected by compliance with FDA’s drug approval process and requirement that product labeling be based on performance, rather than profitability.
Administering drugs outside of the presence of a qualified physician: Thanks to the assistance of a whistleblower, his office reached a $3.57 million settlement to resolve allegations that Imagimed (operating as “Open MRI”), its owners, and chief radiologist, submitted false claims to federal healthcare programs for magnetic resonance imaging services with a contrast dye without the direct supervision of a qualified physician. Since a potential adverse side effect of contrast dye is anaphylactic shock, federal regulations require that a physician supervise the administration of contrast dye when it is used for an MRI. Such a resolution stripped away the profit motive for circumventing the physician supervision requirements that safeguard patients.
Violations of the Recovery Act’s “Buy American” requirement: His office recently resolved, for $500,000, a case involving allegations that Jett Industries, a Colliersville-based general contractor, had falsely certified compliance with the American Recovery and Reinvestment Act’s “Buy American” provision. Jett purchased key project components in France, and then created and submitted paperwork in an effort to mislead the government into believing that the cheaper, French-made products were produced in the United States.
City acknowledges that it mismanaged federal funds: Another recent case that involved a seven-figure monetary recovery, an admission of wrongdoing, and other forward-looking (non-monetary) components was a settlement reached last month with the City of New York. This settlement resolved allegations, brought to our attention by a whistleblower, that the New York City Human Resources Administration (HRA) violated the False Claims Act by causing various managed care organizations to provide health care coverage to individuals that HRA knew, or should have known, were ineligible to receive benefits through New York State’s Medicaid program. As part of the settlement, HRA accepted responsibility for failing to timely review and close Medicaid cases after being provided information that the beneficiaries moved outside of New York City, and it admitted that its inaction caused one or more MCOs to receive payments to insure individuals who were ineligible for benefits through New York State’s Medicaid program. HRA also agreed as part of the settlement to establish a process to investigate and close Medicaid cases whenever it learns that a beneficiary no longer resides within its coverage area.
Unlawful physician compensation arrangements: A settlement was also reached last month with the New York Heart Center. In that case, a group of upstate New York cardiologists agreed to pay $1.34 million to resolve allegations that its physicians’ compensation was determined using a formula that took into account the volume or value of each physician’s ordering of designated health services from other physicians in the practice, in violation of the Stark Law. By pursuing such cases, physicians in Northern New York and elsewhere will think twice before entering into financial arrangements where a physician’s medical judgment may be compromised by financial incentives.
Billing the government for no-show jobs: With the assistance of another whistleblower, his office resolved allegations that Ithaca-based defense contractor Agave BioSystems and its president submitted false claims to the Department of Defense, seeking reimbursement for work that was never performed. Mr. Hartunian concluded his remarks at the conference with the following observation: “The Northern District of New York is committed to building a leading qui tam practice because the False Claims Act works. It works because it is an effective tool to fight fraud across the full spectrum of federal programs. It works because it provides powerful incentives for companies and individuals to do business honestly. And it works because it safeguards taxpayer money, protects public safety, and improves confidence in government.”
Union Negotiator Pleads Guilty to FraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Frank Aquila, 76, of Amherst, N.Y., pleaded guilty to fraud involving a scheme to defraud the Buffalo Educational Support Team (BEST), a union representing approximately 900 teacher’s aides and assistants in the City of Buffalo School District, before Chief U.S. District Judge William M. Skretny. The charge carries a maximum sentence of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that between March 2006 and December 2011, the defendant served as the chief negotiator for BEST during 2008 collective bargaining negotiations with the City of Buffalo School District. Aquila, as chief negotiator for BEST, refused to reach final agreement with the district on a collective bargaining agreement until and unless the district agreed to allow BEST to (1) select its own insurance broker; (2) make commission payments totaling $135,000 per year for four years to an insurance broker selected by BEST; and (3) agreed to make four payments to BEST of $65,000 each for costs and expenses associated with administering health insurance benefits for its members.
The defendant failed to disclose to the district or BEST that he would share in commissions paid to the insurance broker selected by BEST, and in payments made to BEST to administer health insurance benefits for its members. Aquila unlawfully obtained $332,500.The plea is the culmination of an investigation by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent-in-Charge Cheryl Garcia of the New York Regional Office.
Sentencing is scheduled for January 28, 2015, at 9:00 a.m. before Judge Skretny.Two Taiwan Nationals Admit International Drug Trafficking, Attempting to Export United States Military Drone Technology to People's Republic of ChinaRead the Press Release
NEWARK, N.J. - Two Taiwan nationals today admitted their roles in an international scheme to import narcotics and attempting to export sensitive United States’ military technology, U.S. Attorney Paul J. Fishman announced.
Hui Sheng Shen, 47, and Huan Ling Chang, 43, each pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to one count of conspiracy to import illegal drugs and one count of conspiracy to violate the Arms Export Control Act.
According to documents filed in this case and statements made in court:
From June 2010 through February 2012, Shen and Chang engaged in a wide-ranging pattern of global criminal activity that touched on the United States, the People’s Republic of China (PRC), the Philippines, Taiwan, Hong Kong, and elsewhere.
In September 2011, Shen and Chang asked undercover agents from the FBI (UCs) whether they could obtain and pass along highly sensitive American military technology, including defense articles restricted from export, for the benefit of individuals and organizations operating on behalf of the PRC. In December 2011, the UCs told Shen and Chang that the UCs could obtain certain drone technology, including a small drone known as the “RQ-11B,” and a manual for the RQ-4 “Global Hawk” drone, and asked Shen and Chang to find out if their clients were interested in these items. Shen and Chang later e-mailed the UCs that their clients were interested in the RQ-11B (as well as the RQ-4 and related manuals), and asked how much each would cost.
In February 2012, Shen and Chang arrived in New York and told a UC that they purchased cameras to take pictures of military technology. They explained they intended to delete them from the memory cards and use one of their contacts in the PRC to retrieve the deleted photos from the cameras’ memory, avoiding detection by law enforcement.
At another meeting, Shen and Chang examined the RQ-11B, as well as manuals relating to the RQ-4. A UC explained that it was illegal to export any of the items being discussed, and pointed out the warnings to that effect affixed to each of the items. Shen then told the UCs how he and Chang planned to remove the RQ-11B from the United States, and stated that he could use techniques that he had learned from narcotics trafficking, such as using scuba divers to swim out to a ship docked offshore with parts from the RQ-11B, or loading the parts onto a remote controlled semi-submersible vehicle to rendezvous with a ship.
Shen and Chang were then shown manuals for the RQ-4 and the RQ-11B, and Shen and Chang took photographs of both manuals. The pair were arrested before they could delete the photographs.
In February 2011 a conspirator introduced Shen and Chang to the UCs at a meeting in Manila. The conspirator and Shen arranged for the delivery of a sample of crystal methamphetamine to the UCs, who then negotiated the purchase of one kilogram of crystal meth for $70,000. In July 2011, the drug was shipped to the United States hidden in a shipping container, which was discovered by law enforcement agents in the exact location described by Shen and Chang.
The drug charge to which Shen and Chang pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. The arms export control act violation carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencings are scheduled for January 5, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty pleas. He also thanked officers of the U.S. Customs and Border Protection, under the direction of Robert E. Perez, Director, Field Operations; FBI special agents in Manila, Beijing, Hong Kong and Taiwan; the Philippine authorities; and the Department of Justice’s Organized Crime and Gangs Section, Office of Enforcement Operation and Office of International Affairs, for their roles in the case.
The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.14-337
Defense counsel:
Shen: Kenneth Kayser Esq., West Orange, N.J.
Chang: Maria Noto, Esq., Matawan, N.J.Shen, Hui Sheng Information
Chang, Huan Ling Information- Two Sent to Prison in Stolen Identity Tax Refund Fraud Scheme
Two People from Minnesota Indicted for Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a man and a woman from Minneapolis, Minnesota, have been indicted by a federal grand jury for Sex Trafficking by Force, Fraud and Coercion.
David Nance, age 31, and Ashley Crayton, age 26, appeared before U.S. Magistrate Judge John E. Simko on September 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 15 years in custody or a maximum of life imprisonment. There could also be a $250,000 fine, a minimum of 5 years supervised release, up to life, and restitution may also be ordered.
Sioux Falls police responded to a call from the Red Roof Inn regarding a complaint of possible prostitution activity at the hotel. Several men were observed entering and leaving a specific room in the hotel. Further investigation was conducted and the two defendants were subsequently arrested.
The charge is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sioux Falls Police Department and U.S. Immigration and Customs Enforcement's Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Nance and Crayton were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for November 25, 2014.
Two Ironworkers Plead Guilty to RICO ChargesRead the Press Release
PHILADELPHIA- Two members of the Ironworkers Local 401, Francis Sean O’Donnell and William Gillin pleaded guilty today to RICO conspiracy, arson, and related charges in United States District Court before the Honorable Michael Baylson. Sentencing hearings are scheduled for January 13, 2015 for Francis Sean O’Donnell and for January 14, 2015 for William Gillin.
Francis Sean O’Donnell, 43, of Warminster, PA pleaded guilty to RICO conspiracy, conspiracy to maliciously damage property by means of fire, and attempted maliciously damaging property by means of fire. During the offense conduct, O’Donnell acted as a business agent for the Ironworkers Local 401 and participated in more than 10 extortions or attempted extortions with the intent to force non-union contractors to hire union labor. O’Donnell recruited other members of the Ironworkers Local 401, whom he called his “Shadow Gang,” to assist him in these crimes. If a contractor refused to hire union labor, O’Donnell and the “Shadow Gang” typically would enter a non-union construction site at night, use sledgehammers to destroy anchor bolts, and cause tens of thousands of dollars in damage.
William Gillin, 43, of Philadelphia, PA pleaded guilty to RICO conspiracy, maliciously damaging property by means of fire, use of fire to commit a felony, maliciously damaging property by means of fire, conspiracy to maliciously damage property by means of fire, and attempted maliciously damaging property by means of fire. Gillin participated in a series of incidents on behalf of the Ironworkers Local 401 as part of the plan by the defendants to force non-union contractors to hire union labor. Specifically, Gillin admitted that he participated in the Quaker Meetinghouse arson, an arson on Grays Avenue in Philadelphia, and an attempted arson in Malvern as well as other episodes – all in retaliation for the contractors failure to hire union ironworkers.
O’Donnell faces a statutory maximum sentence of 60 years in prison, with a five year mandatory minimum sentence, three years of supervised release, a $750,000 fine, and a $300 special assessment; Gillin faces a statutory maximum sentence of 110 years in prison, with a 15 year mandatory minimum sentence, three years of supervised release, a $1.5 million fine, and a $600 special assessment.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Tennessee Man Sentenced to 78 Months in Federal Prison for Theft of Interstate ShipmentRead the Press Release
Roderick Earl Nunn Stole Semi-Trucks and Trailers Containing More than $1,000,000 Worth of Goods
GRAND RAPIDS, MICHIGAN – Roderick Earl Nunn, 40, of Memphis, Tennessee, was sentenced today to 78 months in federal prison for stealing semi-trucks and trailers containing more than $1,000,000 of goods traveling in interstate commerce. The Honorable Robert J. Jonker imposed the sentence.
Nunn pled guilty in March 2014 to stealing a semi-truck and trailer in Romeoville, Illinois on April 15, 2012, which contained $175,000 worth of Wrigley candy products. He was driving the stolen cargo to Detroit, Michigan, when he was stopped by police outside of Marshal, Michigan. At sentencing, the court determined that in 2006-2012, Nunn had stolen eight other semi-trucks and trailers containing more than $1,000,000 worth of goods.
U.S. Attorney Patrick A. Miles, Jr., said, “Protecting the shipment of goods between the states is important to the financial well-being of our citizens. We continue to vigorously prosecute these types of brazen thefts.”
The case was investigated by the FBI, the Michigan State Police Southwestern Commercial Auto Recovery Unit, the Marshall, Michigan Police Department, and the Calhoun County Sheriff’s Department. It was prosecuted by Assistant U.S. Attorney Clay Stiffler.
END
Statement of Manhattan U.S. Attorney Preet Bharara on Status of Rikers Island InvestigationRead the Press Release
Forty-nine days ago, on August 4th, this Office issued a report detailing the appalling treatment of adolescents at Rikers Island. Since then, we have been engaged in making sure that the City and Department of Correction are moving swiftly to implement reforms that are meaningful, effective, and permanent. As the relevant City authorities are well aware, while we are listening to their promises to take various steps, we have an independent responsibility to ensure that the Constitution is respected and upheld everywhere, including on Rikers Island, and part of that duty is to guarantee that needed reforms are lasting, verifiable, and enforceable. Another part of our duty is to make sure that only accurate information is put forward and that competent and attentive leadership is in place at all levels. If, as has been reported, incomplete and inaccurate information has been provided to us, and questionable promotions may have occurred, it does not instill confidence in us that the City will quickly meet its constitutional obligations. We are not, at this early stage, jumping to conclusions about the City’s commitment to change, and our dialogue is ongoing. However, now that the 49-day waiting period has elapsed and all options are available to us, we stand ready to take legal action to compel long-overdue reforms at Rikers, if that becomes necessary to get the job done.
Sioux Falls Man Indicted for Wire FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Wire Fraud.
Eugene Joseph Drong, age 71, was indicted on September 9, 2014. He appeared before U.S. Magistrate Judge John E. Simko on September 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Drong was indicted in federal court on 21 counts of wire fraud.
The charge is merely an accusation and Drong is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Drong was released on bond pending trial. A trial date has not been set.
Sioux Falls Man Indicted for Wire FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Wire Fraud.
Brent Alan Fowler, age 52, was indicted on September 9, 2014. He appeared before U.S. Magistrate Judge John E. Simko on September 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 2 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Fowler has been charged with 20 counts of wire fraud during the time period of June 2011 through December 2012.
The charge is merely an accusation and Fowler is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Fowler was released on bond pending trial. A trial date has not been set.
Round Rock Business and Management Indicted for Allegedly Employing Undocumented AliensRead the Press Release
In Round Rock, TX, today, federal authorities arrested Richard Anthony Corrales, 55–year-old President of CORTEC Precision Sheet Metal, Inc., and two others for allegedly employing undocumented aliens announced Robert Pitman, United States Attorney for the Western District of Texas, and Janice Ayala, Special Agent in Charge for Homeland Security Investigations (HSI) in San Antonio.
A two-count federal grand jury indictment, unsealed today, charges Corrales, CORTEC, 44-year-old old CORTEC brake operator Leopoldo Yepez, and 42–year-old CORTEC Human Resources Manager Mon Prum Cerda with one count of harboring undocumented aliens and one count of unlawful employment of undocumented aliens.
The indictment alleges that beginning in September 2013, the defendants concealed from law enforcement undocumented aliens employed by CORTEC. According to the indictment, agents with the Department of Homeland Security (DHS) supplied the defendants with names of at least 16 undocumented aliens employed at the company and provided the defendants with 10 days notice to provide valid documentation. The indictment further states that in January 2014, the defendants knowingly employed the undocumented aliens after representing to DHS that they had been fired. In June 2014, the defendants informed DHS that many of the positions previously held by the undocumented aliens were still vacant when in fact, they were still employing undocumented aliens.
The defendants face up to ten years in federal prison if convicted of the harboring charge and up to six months in federal prison if convicted of the unlawful employment charge. CORTEC faces fines of up to $250,000 on the harboring charge and up to $3,000 for each undocumented alien employed.
“Today’s arrest of three employees of the CORTEC Precision Sheet Metal Company comes in the wake of an investigation where these individuals were knowingly hiring an illegal workforce,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “Investigations of these criminal violations play an important role in HSI’s mission. Employers are encouraged to participate in the ICE Mutual Agreement between Government and Employers (IMAGE) Program, an outreach program designed to provide employers with the tools and knowledge that will enable them to hire and maintain a legal workforce.”
These charges and arrests resulted from an investigation conducted by Homeland Security Investigations (HSI). Assistant United States Attorney Douglas Gardner is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Rochester Man Pleads Guilty to Robbing the Same Bank Three TimesRead the Press Release
ROCHESTER N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Edward Brown, 51, of Rochester, NY, pleaded guilty to bank robbery before U.S. District Judge Charles J. Siragusa. The charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated the defendant entered the Citizens Bank at 40 Franklin Street in Rochester on June 25, 2014 and told the teller “I got a gun in my waist, I don’t want anybody to get hurt. Give me money in small bills.” The teller gave Brown a specific amount of money.
On July 31, 2014, the defendant entered the same Citizens Bank, approached a teller and said “Give me money in small bills.” The teller again gave Brown a specific amount of money.
The defendant entered the Franklin Street branch a third time on August 4, 2014. On that date, Brown told the teller “I have a gun and I’ll use it.” Once again, the teller gave Brown a specific amount of money.
The plea is the culmination of an investigation on the part of the Rochester Police Department’s Major Crimes and Tactical Units, under the direction of Chief Michael Ciminelli, the Federal Bureau of Investigation, and the NYS Department of Corrections and Community Service under the direction of Acting Commissioner Anthony J. Annucci.
Sentencing is scheduled for December 19, 2013 at 10:30 a.m. before Judge Siragusa.Rapid City Man Indicted for Firearm ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm with Altered or Obliterated Serial Number and Possession of a Firearm by a Prohibited Person.
Moses Crowe, age 21, was indicted on May 20, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 15, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
On January 8, 2014, Crowe, who has a previous domestic abuse conviction, was in possession of a firearm with the manufacturer’s serial number removed, altered and obliterated.
The charge is merely an accusation and Crowe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Crowe was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rapid City Father and Daughter Indicted for Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man and woman have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Michael Gallas, age 56, and Charissa Gallas, age 31, were indicted on August 26, 2014. Michael and Charissa appeared before U.S. Magistrate Judge Veronica L. Duffy on September 12, 2014, and September 16, 2014, respectively, and both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
Beginning no later than December of 2013, Michael Gallas and Charissa Gallas conspired with others to distribute methamphetamine in the District of South Dakota.
The charge is merely an accusation and both are presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Michael Gallas was remanded to the custody of the U.S. Marshals Service pending trial. Charissa Gallas was released on bond pending trial. A trial date has been sent for November 18, 2014.
Ohio Man Sentenced to Federal Prison for Selling Heroin in ParkersburgRead the Press Release
CHARLESTON, W.Va. – An Ohio man who distributed heroin in Parkersburg, West Virginia in 2013 was sentenced today to seven years in federal prison, announced United States Attorney Booth Goodwin. Marion Alonvo Felder, 30, of Upper Sandusky, Ohio, previously pleaded guilty in May of 2014 to distribution of heroin.
On three occasions in September and October 2013, Felder sold heroin to an informant working with police in Parkersburg. Felder admitted coming to Parkersburg from Marion, Ohio in early 2013 to sell heroin. Felder’s case was part of a larger investigation into heroin being brought from Chicago, Illinois and Marion, Ohio to be sold in and around Parkersburg.
The Parkersburg Police Department and the Washington County, Ohio Major Crimes Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Oacoma Man Sentenced for Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oacoma, South Dakota, man charged with Lacey Act violations pled guilty to and was sentenced on September 17, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Anthony Nogy, age 35, was sentenced to 1 year of unsupervised probation, a $5,000 fine, $750 in restitution to the Ontario Ministry of Natural Resources, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place between September 24, 2013, and September 30, 2013, when Nogy and six friends from South Dakota and Minnesota went on a moose hunt in Ontario, Canada. While on the hunt, Nogy shot and killed a gray wolf without a license. The following day, Nogy purchased a wolf tag and had it flown to the camping site and then attached it to the wolf. At the international border, Nogy declared the moose he had killed during the trip, but failed to declare the wolf hide.
The investigation was conducted by the U.S. Fish & Wildlife Service. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
O.C. Resident Sentenced to Federal Prison for Selling Stolen Hospital Supplies over Internet in Scheme That Brought Him $1.8 MillionRead the Press Release
SANTA ANA, California – An Irvine man has been sentenced to serve 15 months in federal prison for selling stolen hospital supplies over the Internet, including on eBay and Alibaba.com.
Bahram Khandan, 50, was sentenced today by United States District Judge Cormac J. Carney, who also ordered the defendant to spend nine months on home detention following the completion of the prison term.
Additionally, Judge Carney scheduled a hearing for November 10 to determine how much Khandan shall pay in restitution to victim hospitals.
Khandan pleaded guilty on February 20 to misbranding of a drug with intent to defraud and interstate transportation of stolen property.
Khandan ran a company in Irvine variously known as United Capital Group, Inc.; UCGI Health; and UCGIMedicx (UCGI). Khandan received prescription drugs, biological products and medical supplies from his sister, who stole products from hospitals where she worked, including the UC Irvine Medical Center in Irvine, Kaiser Permanente’s Riverside Medical Center, and the Arrowhead Regional Medical Center in Colton.
Khandan sold the stolen prescription drugs, biological products and medical supplies on eBay and Alibaba.com. On March 18, 2011, search warrants were executed an Irvine house owned by Khandan, where the UCGI business was based, and authorities seized stolen medical products and $141,516 in cash.
Khandan realized profits of $1,883,390 by selling the stolen products over the Internet to customers across the United States and in foreign countries.
Khandan’s sister, Goli Alai-Khandan, was prosecuted by the Riverside County District Attorney’s office on charges related to thefts from the Kaiser Permanente facility. Alai-Khandan was sentenced to one year in state prison. Khandan was also charged in that case in relation to the thefts from Kaiser’s Riverside hospital. He received a sentence of six months in that state court case, a sentence that was taken into account by authorities in the federal case.
The federal case against Khandan was investigated by the U.S. Food and Drug Administration – Office of Criminal Investigation, which is responsible for enforcing the provisions of the Food, Drug and Cosmetics Act, a federal statute designed to ensure that drugs sold for use by humans are safe, effective and accurately labeled.
“Protecting the legitimate supply chain of regulated prescription drugs is an FDA priority,” said Lisa Malinowski, Special Agent in Charge of the FDA’s Office of Criminal Investigations. “Once these products are removed from the closed system that FDA oversees, there can be no guarantee that the products are safe, effective or even that they are what they purport to be. These illegal products could threaten the health of patients who rely on the drugs.
Release No. 14-123
Neosho Man Sentenced to 20 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Neosho, Mo., couple have been sentenced in federal court for their roles in a conspiracy to distribute methamphetamine in Jasper and Newton counties.
Gregory M. Holcomb, 53, of Neosho, was sentenced today by U.S. District Judge Gary A. Fenner on Friday, Sept. 19, 2014, to 20 years in federal prison without parole. Co-defendant Malinda Sue Willis, 49, also of Neosho, was sentenced on Thursday, Sept. 18, 2014, to six years in federal prison without parole.
On April 17, 2014, Holcomb pleaded guilty to participating in a conspiracy to distribute methamphetamine from January 2009 to July 13, 2011. Holcomb and other conspirators distributed methamphetamine primarily in Jasper and Newton counties. The total amount of methamphetamine that Holcomb knew was being distributed (or was responsible for assisting to distribute) during the conspiracy is in excess of 1.5 kilograms.
According to court documents, Holcomb possessed numerous firearms, traded firearms for drugs and was involved in dismantling stolen vehicles in a garage on his property. A July 11, 2011, search warrant executed at the residence Holcomb shared with Willis yielded 21 firearms, including several shotguns and an SKS assault rifle, multiple rounds of ammunition and items related to the packaging and distribution of narcotics. Agents also located approximately 200 grams of methamphetamine that was 95 to 100 percent pure, along with $1,949.
After being indictment, Holcomb fled from the Western District of Missouri and moved with Willis to Honduras for three months to evade prosecution.
Willis also pleaded guilty to her role in the conspiracy. Willis admitted that she assisted Holcomb, who was the main source of supply of methamphetamine in the conspiracy, by selling or distributing methamphetamine she obtained from Holcomb to other persons. Willis also assisted Holcomb in setting up methamphetamine transactions with other persons.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the police departments of Ozark, Springfield and Joplin, Mo.; the sheriff’s departments of Barry, Lawrence, Jasper and Ottawa County, Mo.; COMET (the Combined Ozarks Multi-jurisdictional Enforcement Team); the SWDTF, the Jasper County Drug Task Force, the Oklahoma Bureau of Narcotics; the Missouri State Highway Patrol; the Oklahoma State Highway Patrol; the Oklahoma State Bureau of Investigation; the Eastern Shawnee Tribal Police; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; IRS-Criminal Investigation; and the Bureau of Indian Affairs.Murdo Man Acquitted of Sexual Abuse ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Murdo, South Dakota, man was acquitted of Aggravated Sexual Abuse of a Child, Abusive Sexual Contact, and Sexual Abuse of a Minor, as a result of a four-day federal jury trial in Pierre, South Dakota. The trial ran September 9 through September 12, 2014.
Shannon White Buffalo, age 46, was indicted by a federal grand jury on August 21, 2013.
The charges stemmed from alleged incidents that occurred between August 2010 and December 2013, when White Buffalo allegedly sexually abused three different minor victims in Mellette County.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The U.S. Attorney's Office prosecuted the case.
Middlesex County, N.J., Woman Admits Conspiring to Defraud U.S. Treasury Department of More Than $900,000Read the Press Release
TRENTON, N.J. - A Middlesex County, New Jersey, woman today admitted her role in defrauding the United States Department of the Treasury of more than $900,000 in income tax return checks, U.S. Attorney Paul Fishman announced today.
Rosanna Rodriguez, 29, of Middlesex, New Jersey, pleaded guilty today before U.S. District Judge Anne E. Thompson in federal court in Trenton, to an information charging her with one count of conspiracy to defraud the United States.
According to documents filed in the case and statements made in court:
Rodriguez was the head teller at a bank located in Perth Amboy, New Jersey, and received Treasury checks from her conspirators. Rodriguez’ role in the scheme was to negotiate Treasury checks against unknowing third-party bank accounts at the bank. She admitted the total loss from the conspiracy was more than $900,000, and that she used a portion of that money for her own personal expenses, knowing the money had been fraudulently obtained from the U.S. Treasury.
The count of conspiracy to defraud the United States is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for January 12, 2015.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and special agents of Homeland Security Investigations, Immigration and Customs Enforcement, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, N.J.
14-335
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, NewarkRodriguez, Rosanna Information
Maryland Man Sentenced to Seven Years in Prison for Bank Fraud and Identity Theft SchemeRead the Press Release
ALEXANDRIA, Va. – Taofik Gbadamosi, 42, of Bowie, Maryland, was sentenced on Friday to seven years in prison, followed by four years of supervised release, for supervising a bank fraud and identity theft scheme in the Washington, D.C. metro area. Gbadamosi also was ordered to pay restitution and forfeiture of approximately $781,697.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Kathy A. Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Earl L. Cook, Alexandria Chief of Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Gbadamosi pleaded guilty on May 29, 2014 to conspiracy to commit bank fraud and aggravated identity theft. According to court documents, Gbadamosi and his co-conspirators opened business accounts at banks in the Washington metro area, including in the Eastern District of Virginia, and the group funded the accounts through stolen and counterfeit checks and unauthorized wire transfers.
Gbadamosi was a manager and supervisor in the conspiracy, driving other conspirators from bank to bank and directing them to withdraw stolen funds. Gbadamosi gave false identification documents to his co-conspirators, who would then enter the banks and use the IDs to cash checks drawn on the fraudulently funded accounts. These IDs contained the names and birthdates of real people who did not know their identities had been stolen. On at least one occasion, Gbadamosi gave the real driver’s license of an individual to a co-conspirator, whom Gbadamosi then directed to make unauthorized withdrawals from that individual’s bank account.
Gbadamosi is the second co-conspirator to be sentenced in the case. On March 14, 2014, Samuel Goines was sentenced to five years in prison and three years of supervised release. Gbadamosi managed and supervised Goines during his participation in the conspiracy.
This case was investigated by the FBI’s Washington Field Office, U.S. Secret Service, and Alexandria Police Department. Assistant U.S. Attorney Kosta S. Stojilkovic and Special Assistant U.S. Attorney William E. Johnston prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-161.
Marrero Men Plead Guilty to Drug ConspiracyRead the Press Release
U.S. Attorney Kenneth Polite announced today that STOKLEY AUSTIN, age 33, and DONALD JONES, JR., age 33, both residents of Marrero, Louisiana, pleaded guilty before U.S. District Judge Ivan L.R. Lemelle to conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine hydrochloride and a quantity of cocaine base (“crack”) and firearms offenses. AUSTIN and JONES also entered guilty pleas to possessing firearms in furtherance of a drug trafficking crime. Additionally, AUSTIN pleaded guilty to being a felon in possession of a firearm.
According to court documents the conspiracy involved multiple kilogram quantities of powder cocaine being transported into the New Orleans metropolitan area and delivered to AUSTIN and JONES. At the time of AUSTIN’s arrest on July 23, 2013, agents discovered approximately 2485.7 gross grams of powder cocaine, approximately 39.7 gross grams of crack cocaine, approximately $45,870.00 cash, a loaded Smith and Wesson .22 caliber rifle, a loaded Ruger P-89 9mm semi-automatic pistol, in addition to drug distribution and packaging materials at his residence. On the same date, at the time of JONES’ arrest, agents discovered approximately 1907 gross grams of powder cocaine, approximately 63 gross grams of crack cocaine, approximately 269 gross grams of heroin, approximately $22,535.00 cash, and four guns: an AK-47 assault rifle, a Browning Arms 9mm pistol, a Smith & Wesson .22 caliber pistol, and Taurus 9mm pistol at his residence.
Due to a prior felony drug conviction, AUSTIN faces a mandatory minimum of 25 years in prison, a maximum of life imprisonment, a fine of up to $20 million, and at least 10 years of supervised release. JONES faces a mandatory minimum of 15 years in prison, a maximum of life imprisonment, a fine of up to $10 million, and at least 8 years of supervised release. Sentencing is scheduled on January 7, 2015.
The case was investigated by the Drug Enforcement Administration, the Jefferson Parish Sheriff’s Office, and the Westwego Police Department. The case was prosecuted by Assistant U. S. Attorneys Theodore R. Carter, III and Spiro Latsis.
Lucas Man Sentenced to 20 Years in Prison for Production of Child PornographyRead the Press Release
A Lucas man was sentenced to 20 years in prison for crimes related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert A. Anderson, 69, pleaded guilty earlier this year to four counts, including production of child pornography, receipt of visual Depictions of minors engaged in sexually explicit conduct and removal of property to prevent seizure.
From 2003 through 2011, Anderson did use, persuade, induce, entice and coerce two minors to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced or transmitted using materials that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer, according to court documents.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Department of Homeland Security Investigations, Cleveland Office.
Lower Brule Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation and Suffocation, Assault with a Dangerous Weapon, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Vincent Abraham Battese, age 27, was indicted on September 9, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about September 1, 2014, Battese unlawfully assaulted a female victim by strangling and suffocating her. He also assaulted her with shod feet, which resulted in substantial bodily injury.
The charge is merely an accusation and Battese is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Battese was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Leader of Fraudulent Internet Company and Longtime International Fugitive Pleads Guilty in $13 Million SchemeRead the Press Release
SANTA ANA, California – A former Newport Beach resident who fled the country 15 years ago after federal agents executed search warrants relating to his fraudulent Internet company pleaded guilty this afternoon to federal fraud charges, admitting his role in a scheme that raised nearly $13 million from investors around the country in the late 1990s.
James Eberhart, 73, pleaded guilty to two counts of mail fraud before United States District Judge Cormac J. Carney. Eberhart has been in custody since he was arrested in Malaysia in 2012 after living as a fugitive abroad for more than 12 years.
Eberhart and his co-schemer, Eugene M. Carriere, operated a fraudulent Newport Beach company that used dozens of “boiler room” telemarketing firms and an unwitting celebrity spokesman, the late Tom Bosley, to raise investor funds. YES Entertainment Network, Inc. raised nearly $13 million from victims who were falsely told that the company was creating an 18-channel, multimedia, family-oriented entertainment website and that YES would generate profits through the sale of advertising on the website. Eberhart and Carriere told investors that the company planned an initial public offering of its stock for the fall of 1999, which would potentially make early investments worth millions of dollars.
Eberhart and Carriere used only 1 percent of the investors’ fund to build the YES website, and that was little more than a façade to reassure investors. Approximately 45 percent of the funds was used to pay sales commissions to the telemarketers. Most of the rest of the money was wired to bank accounts in Hong Kong and Singapore in the names of offshore corporations, all of which Eberhart had formed with the help of an attorney.
In November 1999, while Eberhart was under investigation by the U.S. Securities and Exchange Commission for an earlier investment fraud scheme, and shortly after FBI agents had executed search warrants at the offices of telemarketing companies affiliated with YES, Eberhart, Carriere, and another employee destroyed company documents and fled the country.
Eberhart remained a fugitive until May 2012, when the FBI Legal Attaché in Kuala Lumpur, acting on a tip that Eberhart was residing in Malaysia, coordinated with Malysian authorities to arrest him. Malaysia deported Eberhart to the United States because his U.S. passport had expired. At the time of his arrest, Eberhart was living on a custom-built, 58-foot yacht.
Eberhart faces up to 10 years in custody when he is sentenced by Judge Carney on December 8.
Carriere was a fugitive for six years before being arrested in Thailand in April 2005. Carriere pleaded guilty in 2007 to two counts of mail fraud and was sentenced to three years in federal prison and ordered to pay $12,838,045 in restitution.
“Today's announcement delivers justice to many victims who waited years while Mr. Eberhart remained a fugitive, living life abroad after stealing their money,” said Bill Lewis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “This case, which culminated in Mr. Eberhart's arrest overseas more than a decade after he was charged, is a perfect example of the global and persistent arm of the law.”
In addition to Eberhart and Carriere, five other defendants – including the owners of telemarketing operations used by YES – were indicted, pleaded guilty, and were sentenced to as much as 142 months in federal prison.
This case is the result of an investigation by the Federal Bureau of Investigation and the U.S Postal Inspection Service. The U.S. Securities and Exchange Commission provided substantial assistance on the case.
Release No. 14-126
Las Cruces Man Sentenced to Thirty-Seven Months in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – William Edward Jenne, 24, of Las Cruces, N.M., was sentenced this afternoon in Las Cruces federal court to 37 months in federal prison followed by ten years of supervised release for his child pornography conviction. Jenne will be required to register as a sex offender after completing his prison sentence.
Jenne was arrested by Homeland Security Investigations (HSI) agents on Dec. 4, 2012, on a criminal complaint alleging federal child pornography charges. According to court filings, the investigation leading to Jenne’s arrest was initiated in mid-Nov. 2012, when an officer of the Las Cruces Police Department (LCPD) who was working online in an undercover capacity connected with an IP Address that was sharing files that appeared to contain child pornography. After determining that the IP Address was subscribed to Jenne, HSI and LCPD executed a search warrant at Jenne’s residence and seized computers and computer-related media. During an interview, Jenne admitted that the computers and computer-related media contained child pornography.
On July 24, 2013, Jenne entered a guilty plea to a felony information charging him with possession of child pornography in Doña Ana County, N.M. Jenne admitted that from Aug. 2012 to Dec. 2012, he knowingly possessed child pornography. During today’s sentencing hearing, Jenne was ordered to pay $1000.00 in restitution to the victim whose image was involved in the child pornography possessed by Jenne.
This case was investigated by the Las Cruces office of HSI and the LCPD and was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Kewa Pueblo Man Pleads Guilty to Federal Rape ChargeRead the Press Release
ALBUQUERQUE – Javin Keith Reano, 22, a member and resident of Kewa Pueblo, pleaded guilty this morning to a federal aggravated sexual abuse charge. Under the terms of his plea agreement, Reano will be sentenced to 84 months in federal prison followed by a term of supervised release to be determined by the court. Reano will be required to register as a sex offender after he completes his prison sentence.
Reano was arrested in May 2014, on an indictment charging him with aggravated sexual abuse. According to court filings, on July 19, 2013, Reano sexually assaulted the victim, an Indian woman, in a location within Kewa Pueblo in Sandoval County, N.M.
Today, Reano entered a guilty plea to the indictment and admitted raping the victim on July 19, 2013. In his plea agreement, Reano acknowledged forcing the victim to engage in a sexual act victim against her will.
Reano has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Justice Department Wins Lawsuit Against California Employer That Discriminated Against Foreign-Born WorkersRead the Press Release
The Justice Department announced today that it won a lawsuit against Life Generations Healthcare LLC, doing business as Generations Healthcare (GHC), regarding allegations that the company engaged in a pattern or practice of discrimination against foreign-born workers. The case was decided by the Office of the Chief Administrative Hearing Officer, the administrative court authorized to hear discrimination cases under the Immigration and Nationality Act (INA).
The court found that GHC, an assisted-living facility with 18 locations in California, violated the INA when it required foreign-born job applicants and employees to produce more, different, and specific documents to prove their employment eligibility verification, while native-born U.S. citizens were allowed to produce the documentation of their choice. The court also found that, in some cases, foreign-born individuals were prevented from working for the company even though they had sufficient proof of their work authorization. The case now moves to the remedial phase for the court to determine what relief GHC must provide for violating the law.
“Companies cannot create discriminatory barriers for workers and applicants based purely on where those individuals are born,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “This ruling sends a powerful message that this type of discrimination will not be tolerated.”
The case was tried by the Justice Department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), which is responsible for enforcing the anti-discrimination provision of the Immigration and Nationality Act. The statute prohibits employers from placing additional documentary burdens on work-authorized applicants or employees during the employment eligibility verification process because of their citizenship status or national origin. The statute also prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee, as well as retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Justice Department Seeks to Shut Down West Michigan Tax Return PreparerRead the Press Release
The Justice Department announced today that it has asked a federal court in Grand Rapids, Michigan, to permanently bar Jim Sanzone, who does business as Lakeshore Professionals LLC from preparing federal tax returns for others.
The complaint alleges that Sanzone inappropriately claims deductions and credits for customers on their tax returns, causing them to receive tax refunds or increased refund amounts to which they are not entitled.
According to the complaint, Sanzone claims false deductions and credits on customers’ federal tax returns by including fabricated or inflated claims for charitable contributions, medical expenses, mortgage interest and state and local taxes paid on tax returns that he and his business prepared since 2010. Sanzone also allegedly reports fake business expenses in order to fraudulently reduce customers’ taxable income. The complaint also alleges that Sanzone prepares tax returns for customers that falsely claim education credits, even though the customers did not attend school or have qualifying education-related expenses, and so were ineligible for the credit.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
USA v. Jim Sanzone, etc
Complaint for Permanent InjunctionJustice Department Awards $87 Million to Enhance, Support Tribal Justice and SafetyRead the Press Release
The Department of Justice today announced the awarding of 169 grants to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees. The grants will provide more than $87 million to enhance law enforcement practices and sustain crime prevention and intervention efforts in nine purpose areas including public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; violence against women; juvenile justice; and tribal youth programs.
Assistant Attorney General Karol V. Mason for the Office of Justice Programs, Principal Deputy Director Bea Hanson for the Office on Violence Against Women (OVW) and Director Ron Davis for the Office of Community Oriented Policing (COPS) made the announcement while attending the Affiliated Tribes of Northwest Indians (ATNI) Annual Convention hosted by the Confederated Tribes of the Umatilla Indian Reservation. ATNI represents 57 northwest tribal governments from Oregon, Washington, Idaho, Northern California, Southeast Alaska, and Western Montana. This year’s announcement includes awards to 22 of the represented tribes at the convention. The awards are made through the department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs.
“This work covers every area of public safety in Indian country, from supporting children and youth to protecting and serving native women to the hiring of tribal police officers to strengthening tribal criminal and juvenile justice systems,” said Assistant Attorney General Mason. “The CTAS programs are not only critical to reversing crime in Indian country but are integral strengthening and sustaining healthy communities.”
The safety of American Indian and Alaska Native women is a top priority of OVW, and a clear priority of the entire Department of Justice. With funding from OVW’s Tribal Governments Program, tribes are able to develop and strengthen the tribal justice system’s response to violence against American Indian and Alaska Native women that meets the specific needs of their tribe. This funding has played a significant role in increasing programs and services available to tribes, and has both improved and increased the effectiveness of services provided by tribal court systems. This coordinated approach allows OVW and its sister grant-making components to consider the totality of a tribal community’s overall public safety needs in making award decisions.
“We know from our work across Indian country and elsewhere, that early intervention that interrupts or deters a pattern of escalating violence is the key to avoiding more serious and deadly violence in the future,” said Principal Deputy Director Hanson. “And it is the key to saving more women’s lives and protecting more children from growing up in a home where violence is the norm.”
COPS funding through CTAS improves public safety and enhances community policing in federally recognized tribal jurisdictions. These funds will allow tribal jurisdictions to expand the implementation of community policing and meet the most serious needs of law enforcement. With this funding, 21 tribal agencies will be able to hire or re-hire career law enforcement officers and village public safety officers. Funds awarded today may also be used to procure basic equipment and training to assist in the initiation or enhancement of tribal community policing efforts.
“I am pleased that COPS can help tribal jurisdictions hire more officers to help control crime through community policing,” said Director Davis. “These funds also support tribal jurisdictions by covering the costs of basic equipment and training. It’s a comprehensive package of support that delivers much needed help to tribal communities.”
The department developed CTAS through its Office of Community Oriented Policing, Office of Justice Programs and Office on Violence against Women, and administered the first round of consolidated grants in September 2010. Over the past five years, it has awarded over 1,100 grants totaling more than $530 million.
Information about the consolidated solicitation is available at www.justice.gov/tribal.
FY 2014 CTAS Award List
FY 2014 CTAS Fact SheetToday’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.
Jury Finds Wakpala Man Guilty of Second Degree Murder, Four Counts of Sexual Abuse of A Minor, and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Stoney End Of Horn, age 36, of Wakpala, South Dakota, was convicted of Second Degree Murder, four counts of Sexual Abuse of a Minor, and Assault Resulting in Serious Bodily Injury, following a four-day jury trial in Pierre, South Dakota. The verdict was returned on September 12, 2014.
These charges carry a maximum penalty of up to life in custody and/or a $250,000 fine. The jury also found End Of Horn not guilty of one count of Sexual Abuse of a Minor.
End Of Horn was initially charged in two separate indictments, but the charges were consolidated for trial. End Of Horn was first indicted by a federal grand jury on June 12, 2013, for one count of Aggravated Sexual Abuse of a Child and five counts of Abusive Sexual Contact of a Minor. The second indictment was on September 17, 2013, when End of Horn was charged by a federal grand jury for Second Degree Murder and Assault Resulting in Serious Bodily Injury.
The Second Degree Murder and Assault Resulting in Serious Bodily Injury convictions arose out of the same incident, which occurred in September 2008 near Wakpala, when End Of Horn assaulted the victim, which eventually led to her death. The assault in 2008 caused multiple facial fractures and internal injuries to the victim’s brain. The surgeon that repaired the victim’s face described the bones as “busted up so bad they were like a bag of potato chips.” These injuries caused the victim to have a cerebellar infarction on February 9, 2010. The evidence at trial established that the victim never recovered from the cerebellar infarction and died at Triumph Long-Term Care Hospital in Mandan, North Dakota, on June 25, 2010.
End Of Horn’s Sexual Abuse convictions arose from incidents in 2009 and 2010, when End Of Horn, who had previously been convicted in South Dakota State Court for Possession, Manufacturing, and Distributing Child Pornography, knowingly engaged in and attempted to engage in sexual acts with a minor in Wakpala.
End Of Horn’s cases were investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, Standing Rock Agency, National Park Service, and the Mobridge Police Department. The cases were prosecuted by Assistant U.S. Attorneys Troy Morley and Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for December 8, 2014.
End Of Horn was remanded to the custody of the U.S. Marshals Service to await his sentencing.
Jury Finds Dixon Man Guilty of Mortgage Fraud After TrialRead the Press Release
SACRAMENTO, Calif. — A federal jury today found Hubert Rotteveel, 52, of Dixon, guilty of one count of mail fraud affecting a financial institution relating to his role in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to evidence produced at trial, Rotteveel acted as a real estate salesperson for 13 properties in Dixon that were purchased by just two buyers. Rotteveel inflated the values of the properties and worked with loan officers to provide false information to lenders about the income and liabilities of the buyers to induce the lenders to fund loans for the properties. Rotteveel made the down payments on the homes, including two that he owned and sold, and got that money (and usually more) back from the lenders at closing. For most of the transactions, when the sales closed, the escrow officer distributed funds to a bank account in the name of Windmill Properties, a company owned by Rotteveel, without disclosing these payments to the lenders. All 13 properties were used as rentals, with Rotteveel collecting the rents through Windmill Properties. Rotteveel netted over $300,000 through the sales in just seven months. According to the indictment, the lenders lost more than $3 million when all 13 properties underwent foreclosure.
Rotteveel’s conviction marked the third mortgage fraud conviction following trial in the past four weeks in the Eastern District. Anna Kuzmenko was convicted following a jury trial on August 29, 2014, and Alan David Tikal was convicted following a bench trial on September 15, 2014.
U.S. Attorney Wagner stated: “Hubert Rotteveel manipulated every aspect of the real estate process for his personal gain. As so often occurs in these cases, the result was losses to the financial institutions and neighborhoods burdened with foreclosed properties. We are grateful for the diligence, professionalism and cooperation that we have received from the FBI, the IRS, and all of our law enforcement partners in prosecuting these cases.”
“The defendant induced lenders to fund loans under false pretenses and then diverted a portion of the loan proceeds to himself,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “Each of the homes purchased during the course of the scheme was foreclosed upon. The impact of this type of fraud on homeowners and communities is devastating. IRS-CI is committed to pursuing those who line their pockets with profits from these schemes.”
“Rotteveel’s personal greed replaced the integrity maintained by licensed real estate agents. He intentionally defrauded the mortgage industry, artificially inflating home prices and facilitating loans that were destined for bankruptcy for personal gain,” said Assistant Special Agent in Charge John Gliatta of the Sacramento FBI. “Our FBI agents are committed to working with our investigative partners, such as the IRS and others, to identify and investigate individuals who erroneously believe such schemes have no victims and have no effect on the region’s economy.”
This case is the product of an investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Justin L. Lee are prosecuting the case.
Rotteveel is set to be sentenced before Senior United States District Judge William B. Shubb on December 15, 2014, at 9:30 a.m. Rotteveel faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Joyce Allen Found Guilty of Wire Fraud, Mail Fraud and Money Laundering Related to Benchmark Capital, Inc.Read the Press Release
KNOXVILLE, Tenn. – On Sept. 22, 2014, Joyce Allen, 66, of Alcoa, Tenn., was found guilty by a jury in U.S. District Court in Knoxville, of charges contained in a March 2014 superseding indictment involving wire fraud, mail fraud and money laundering. Sentencing has been set for 10:00 a.m., January 13, 2015, before the Honorable Thomas A. Varlan, Chief U.S. District Judge.
Allen faces a potential term of up to life in prison, along with the forfeiture of any proceeds of the offense and the obligation to pay restitution.
In March 2014, a grand jury returned a 10-count superseding indictment against Allen and five other individuals associated with Benchmark Capital, Inc. (Benchmark), a Knoxville business owned by Charles D. Candler. The business purpose of Benchmark was to defraud investors by taking their funds in exchange for worthless and nonexistent investments, and paying a portion of the funds received to earlier investors under the guise of paying dividends, interest and mortgage payments, thereby encouraging new investors to entrust their funds to Benchmark. Details of the scheme are outlined in the superseding indictment on file with the U.S. District Court.
According to facts outlined in the superseding indictment, Allen was the president of J. Allen and Associates, Inc., based in Louisville, Tenn. Through this business, Allen induced individuals to pay funds to her in exchange for annuity investments with Benchmark, knowing that these funds would not be placed with Benchmark or any other company for investments, but converted to personal use by Allen and her other co-conspirators.
The other five individuals named in the superseding indictment have previously pleaded guilty and are awaiting sentencing in U.S. District Court. Candler died in March 2012 before he could be charged in the conspiracy.
The superseding indictment and subsequent conviction of Allen and the other five co-conspirators was the result of an investigation by the Internal Revenue Service, U.S. Postal Inspection Service, and Federal Bureau of Investigation. Assistant U.S. Attorneys Frank M. Dale, Jr., and Jennifer Kolman represented the United States at trial.
Insurance Adjuster Pleads Guilty to Defrauding New Jersey Turnpike Authority, Insurance Companies of $900,000Read the Press Release
NEWARK, N.J. – The owner of a New Jersey-based insurance adjusting company today admitted his role in a scheme to defraud the New Jersey Turnpike Authority (NJTA) and various insurance companies of at least $900,000, U.S. Attorney Paul J. Fishman announced.
Robert Napolitano, 54, of Clifton, New Jersey, owner of Dawn to Dusk LLC, pleaded guilty today before U.S. District Judge Kevin McNulty to an information charging him with using the mails to facilitate a scheme to defraud the NJTA and insurance companies through false and fraudulent pretenses, representations and promises.
According to the documents filed in this case and statements made in court:
In October 2011, Napolitano reached an agreement with Gerardo Blasi, 56, of Clifton, New Jersey, who was employed as claims manager for the NJTA. It was Blasi’s job to negotiate and recover the costs of repairs from insurance companies of motorists who caused damage to property belonging to the NJTA. As part of the agreement, it was Napolitano’s responsibility to evaluate the damage caused by the insured motorist, create an estimate of the cost to repair the damage, and negotiate with the particular insurance company to arrive at the repair amount. Napolitano would request that the checks issued by the insurance companies for the costs of repairing the damage be made payable to Dawn to Dusk and mailed to Napolitano’s business.
Once Napolitano received these checks he would keep a portion of the proceeds for himself, provide Blasi with a share of the proceeds, and sometimes send the remaining amount to the NJTA as payment for the damages caused by the insured motorist. However, on several occasions, he and Blasi simply kept all of the proceeds. As a result of this scheme, Napolitano and others defrauded the NJTA and various insurance companies of approximately $900,000.
The charge to which Napolitano pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for January 8, 2015.
U.S. Attorney Fishman credited special agents from the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s plea. He also thanked the N.J. Turnpike Authority, under the direction of Veronique Hakim, for its cooperation during the investigation.Blasi pleaded guilty on December 11, 2013, and is due to be sentenced on Nov. 12, 2014.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office, Special Prosecution’s Division.
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Defense counsel: John Yauch Esq., Assistant Federal Public Defender, NewarkNapolitano, Robert Information
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 Lynch in Missoula on September 19, 2014, and entering pleas of Not Guilty were:
BRIAN ROSS SHIRLEY, a 33-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, SHIRLEY faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Missouri River Drug Task Force. PACER Case Reference: 14-16
RONNIE LYNN SMITH, SR., a 41-year-old resident of Poplar, appeared on charges of kidnapping, assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted of the most serious charges contained in the indictment, SMITH faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 14-87
Appearing before U.S. Magistrate Judge Strong in Great Falls on September 22, 2014, and entering pleas of Not Guilty were:
JUSTIN LEN COCHRAN, a 27-year-old resident of Great Falls, appeared on charges of felon in possession of a firearm. If convicted of the most serious charge contained in the indictment, COCHRAN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference: 14-75
FRANK GEORGE HENRY, a 51-year-old resident of Box Elder, appeared on charges of conspiracy to embezzle federal grand and contract funds, theft from an Indian tribal government receiving federal funding, bribery, and theft from and Indian tribal organization. If convicted of the most serious charges contained in the indictment, HENRY faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Environmental Protection Agency Officer of Inspector General, Internal Revenue Service and the Federal Bureau of Investigation. PACER Case Reference: 14-66
MELODY BILLY HENRY, a 49-year-old resident of Box Elder, appeared on charges of conspiracy to embezzle federal grand and contract funds, theft from an Indian tribal government receiving federal funding, bribery, and theft from and Indian tribal organization. If convicted of the most serious charges contained in the indictment, HENRY faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Environmental Protection Agency Officer of Inspector General, Internal Revenue Service and the Federal Bureau of Investigation. PACER Case Reference: 14-66
BERNARD JOHN LAMBERT, a 66-year-old resident of Poplar, appeared on charges of wire fraud and theft from a local government receiving federal funds. If convicted of the most serious charge contained in the indictment, LAMBERT faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Environmental Protection Agency Officer of Inspector General, Internal Revenue Service, Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. PACER Case Reference: 14-68
DESIREE DEAN KIRN LAMBERT, a 58-year-old resident of Poplar, appeared on charges of wire fraud, theft from a local government receiving federal funds, and aggravated identity theft. If convicted of the most serious charge contained in the indictment, LAMBERT faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Environmental Protection Agency Officer of Inspector General, Internal Revenue Service, Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. PACER Case Reference: 14-68
KAYCEE DINARD LAMBERT, a 35-year-old resident of Poplar, appeared on charges of wire fraud and theft from a local government receiving federal funds. If convicted of the most serious charge contained in the indictment, LAMBERT faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Environmental Protection Agency Officer of Inspector General, Internal Revenue Service, Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. PACER Case Reference: 14-68
KAYLA LOU ANN LAMBERT, a 30-year-old resident of Poplar, appeared on charges of wire fraud and theft from a local government receiving federal funds. If convicted of the most serious charge contained in the indictment, LAMBERT faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General, Environmental Protection Agency Officer of Inspector General, Internal Revenue Service, Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. PACER Case Reference: 14-68
CHRISTOPHER TODD STEFANI, a 46-year-old resident of Great Falls, appeared on charges of possession with intent to distribute methamphetamine, manufacture of methamphetamine, manufacture of methamphetamine on premises where children are present, and possession of a listed chemical with intent to manufacture a controlled substance. If convicted of the most serious charges contained in the indictment, LAMBERT faces 40 years in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration and the Great Falls Police Department. PACER Case Reference: 14-76
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.
Hospital and Cardiologist Settle False Claims Act CaseRead the Press Release
ATLANTA, GA - The United States Attorney’s Office announced it has reached settlements with Banks-Jackson-Commerce Hospital and Nursing Home Authority d/b/a Banks Jackson Commerce Medical Center (BJC) and Dr. Narasimhulu Neelagaru that total over $500,000.
“Kickbacks pervert our health care system, which is designed to insure that health care providers make decisions based solely on what is best for the patient,” said Sally Quillian Yates, United States Attorney for the Northern District of Georgia.“The sustainability of the Medicare Trust Fund is dependent, in large part, upon medical facilities and professionals being prudent and responsible in their billing of health care programs,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This settlement demonstrates the OIG’s commitment to ensuring that those who bill the government for services do so in a manner that is in accordance with the law.”
The civil settlement resolves the United States’ investigation into BJC’s practices related to paying compensation to Dr. Neelagaru for professional services and medical director services that was in excess of fair market value. The alleged period for these improper payments and patient referrals was from 2000-2009. Because of the nature of these payments to Dr. Neelagaru by BJC, the United States claims that BJC received improper payments by the Medicare program for patients referred to BJC by Dr. Neelagaru.
This settlement also resolves a lawsuit filed by Ralph D. Williams under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained.
The case, pending in the Northern District of Georgia, is filed under United States of America ex rel. Ralph D. Williams v. Banks-Jackson-Commerce Hospital and Nursing Home Authority d/b/a Banks Jackson Commerce Medical Center (“BJC”), Narasimhulu Neelagaru, M.D. and North Georgia Cardiology, PC, No. 1:08-cv-3235. Mr. Williams will receive a share of the settlement payment that resolves the qui tam suit that he filed. The claims settled in the civil settlement are allegations only, and there has been no determination of liability.BJC reached its settlement with the United States in September 2010, but the case remained under seal pursuant to a Court order until the United States settled with Dr. Neelagaru. In connection with its settlement, BJC entered into a Corporate Integrity Agreement with the Department of Health and Human Services. That agreement imposes certain obligations on BJC to bolster its compliance program, including independent review of BJC’s financial arrangements with medical providers who refer patients to BJC.
BJC paid $329,000 to settle the case and Dr. Neelagaru has agreed to pay $200,000. The settlement resolves claims that BJC improperly billed the Medicare program for certain procedures and services rendered to patients in violation of the Physician Self-Referral Law, commonly known as the Stark Law, and in violation of the Anti-Kickback Statute.
This resolution is part of the government’s emphasis on combating health care fraud under the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009, by Attorney General Eric Holder and Kathleen Sebelius, then-Secretary of the Department of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $14 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $20 billion.
This case was investigated by Special Agents of the Health & Human Services, Office of Inspector General. The civil settlement was reached by Assistant United States Attorney Christopher J. Huber.
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/.
Former Postal Manager Sentenced to Nearly Four Years in Prison for Taking BribesRead the Press Release
The former manager of the U.S. Postal Service’s Vehicle Maintenance Facility in Cleveland was sentenced to nearly four years in prison for taking cash bribes in exchange for awarding business and contracts from the Postal Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Monica Weyler, Special Agent in Charge of the U.S. Postal Service Office of Inspector General.
Kevin Hood, 46, of Richmond Heights, was sentenced to 46 months in federal prison by U.S. District Judge Dan Polster. Hood pleaded guilty earlier this year to one count each of Hobbs Act extortion and theft of government property.
“Some defendants appear to still have not gotten the message that accepting bribes has no place in Northeast Ohio,” Dettelbach said. “I commend the work of U.S. Postal Service Office of Inspector General’s special agents. The corruption was persistent and pervasive, and would be continuing but for their hard work.”
“This crime is particularly egregious considering the defendant was promoted to this position because the former manager was convicted on similar charges,” Weyler said.
Hood worked for the Postal Service since 1998 and most recently served as the manager of the Vehicle Maintenance Facility at 1801 Broadway Avenue in Cleveland. In that job, Hood had the ability to award and monitor contracts on behalf of the Postal Service.
The owner of a Cleveland company that has contracts with the Postal Service said Hood approached him for money in order to get work and contracts from the Postal Service. In late 2011, the business owner paid Hood in cash and believed he had to continue to pay Hood to receive work, according to court documents.
Hood received $15,000 in bribes, more than $4,000 in free vehicle repairs, at least $900 worth of stolen parts, according to court documents and statements.
On March 6, the owner paid Hood $4,500 in $100 bills. Hood placed the envelope containing the bills in his left boot. The transaction was monitored and recorded by USPS Office of Inspector General Special Agents, according to court documents.
Judge Polster addressed Hood during the sentencing hearing: “It is hard to fathom on top of that for you to continue that conduct when you pick up the paper every day and hear about the prosecution and investigation of other individuals. I’m not sure if you thought it was okay or nobody’s going to find you. I don’t know what you were thinking.”
Hood is the third vehicle maintenance facility (VMF) manager is recent years to be sentenced to prison as the result of investigations by Cleveland USPS OIG special agents. In 2009, a former Cleveland VMF manager was sentenced to 22 months in prison after pleading guilty for his role in a postal theft and kickback conspiracy. In 2012, a former Akron VMF manager was sentenced to three months in custody and three years of probation after pleading guilty for his role in a conspiracy to accept gifts and payments in exchange for providing postal vehicle repair work to a contractor.
This case was prosecuted by Assistant U.S. Attorneys Miranda Dugi and Antoinette T. Bacon following an investigation by the U.S. Postal Service Office of Inspector General.
Former Owner of Los Angeles-Area Medical Equipment Supply Company Sentenced for $2.6 Million Medicare Fraud SchemeRead the Press Release
The former owner of a Long Beach, California, medical supply company was sentenced today to serve 30 months in prison and ordered to pay $1,490,532 in restitution for his role in a scheme to provide unnecessary power wheelchairs to Medicare patients, resulting in $2.6 million in fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement. U.S. District Judge Philip S. Gutierrez of the Central District of California imposed the sentence.
According to court documents, Akinola Afolabi, 55, of Long Beach, California, was the owner and president of Emmanuel Medical Supply, a durable medical equipment supply company in Long Beach. From June 2006 through September 2009, Afolabi provided medically unnecessary power wheelchairs and other medical equipment to Medicare beneficiaries, and submitted fraudulent claims to Medicare for this equipment. Afolabi admitted that he paid “marketers” to obtain Medicare beneficiary information that he used on the false claims. Afolabi admitted that prescriptions for the equipment and related medical documents were fraudulent, and that some of the beneficiaries did not even receive the wheelchairs or other medical supplies that were billed.
From June 2006 through September 2009, Afolabi submitted approximately $2,668,384 in fraudulent claims to Medicare for power wheelchairs and related services, and Medicare paid approximately $1,490,532 on those claims.
The case was investigated by the FBI 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 Central District of California. This case is being prosecuted by Trial Attorney Fred Medick 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 U.S. Department of Health and Human Services’ (HHS) Centers for Medicare and Medicaid Services, working in conjunction with HHS’ Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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Former Owner of Long Beach Medical Equipment Supply Company Sentenced to 2½ Years in Prison in $2.6 Million Medicare ScamRead the Press Release
LOS ANGELES – The former owner of a Long Beach medical supply company was sentenced today to 30 federal months in prison and ordered to pay nearly $1.5 million in restitution for his role in a scheme to provide unnecessary power wheelchairs to Medicare patients.
Akinola Afolabi, 55, of Long Beach, received the sentenced from United States District Judge Philip S. Gutierrez.
Afolabi was the owner and president of Emmanuel Medical Supply, which sold durable medical equipment. Afolabi provided medically unnecessary power wheelchairs and other medical equipment to Medicare beneficiaries, and submitted fraudulent claims to Medicare for this equipment. Afolabi admitted that he paid “marketers” to obtain Medicare beneficiary information that he used on the false claims. Afolabi admitted that prescriptions for the equipment and related medical documents were fraudulent, and that some of the beneficiaries did not even receive the wheelchairs or other medical supplies that were the subject of bills submitted to Medicare.
From June 2006 through September 2009, Afolabi submitted approximately $2,668,384 in fraudulent claims to Medicare for power wheelchairs and related services, and Medicare paid approximately $1,490,532 on those claims.
This case was investigated by the Federal Bureau of Investigation and was brought as part of the Medicare Fraud Strike Force, which is supervised by the United States Attorney’s office and the Fraud Section of the Justice Department’s Criminal Division.
Release No. 14-124