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Wednesday 17 September 2014
Jacksonville Man Pleads Guilty to Conspiracy to Commit Theft of Government Property and Identity TheftRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that George Y. Salameh pleaded guilty yesterday to conspiracy to commit theft of government property and aggravated identity theft. He faces a maximum penalty of five years in federal prison. Salameh was charged by a criminal complaint on May 7, 2013. A sentencing date has not yet been set.
According to the plea agreement, in August 2011, Salameh joined a conspiracy in which a co-conspirator, Abas Issa, would obtain fraudulent tax refund checks and fraudulent tax refund anticipation loan checks from a source in Tampa. Issa would provide the checks to individuals like Salameh who, for a fee, would then deposit the fraudulent checks into a business banking account. Once the checks cleared, Salameh would provide the net proceeds to Issa. Many of the checks involved the identities of deceased individuals who were actually dead at the time the fraudulent tax returns were filed. During 2011, Salameh deposited $129,502.71 in fraudulent tax refund checks or tax refund anticipation loan checks.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the United States Secret Service, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Mac D. Heavener, III.
Husband and Wife Sentenced on Tax Charges and Ordered to Pay the IRS Nearly $700,000 in TaxesRead the Press Release
Defendants hide assets in corporations with officers and directors named after their pets
DENVER – Mathew Zuckerman, age 70, of Woody Creek, Colorado, was sentenced on Tuesday, September 16th, 2014 by U.S. District Court Judge Robert E. Blackburn to serve 24 months in federal prison on income tax related charges, United States Attorney John F. Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Following his prison sentence, Mathew Zuckerman was ordered to serve 3 years on supervised release. He was ordered to report to a Bureau of Prisons facility after designation. Mathew Zuckerman’s wife, Sandra Zuckerman, age 67, of Woody Creek, was also sentenced that same day. She was ordered to serve 36 months’ probation by Judge Blackburn. Mathew Zuckerman was ordered to pay $693,706 in restitution to the IRS. Sandra Zuckerman was jointly liable for $112,511 of that restitution.
The Zuckermans were indicted by a federal grand jury in Denver on April 25, 2012. Mathew plead guilty on February 18, 2014 to income tax evasion and Sandra plead guilty to willful failure to pay income taxes on May 30, 2014. According to information contained in court documents, beginning in 1986 and continuing through 2009, the Zuckerman’s either failed to file an income tax return, or filed a return using incorrect income amounts. From 2003 through 2009 no income tax returns were filed with the IRS.
Starting in 1998, Mathew Zuckerman and an associate became 50/50 business partners and began to specialize in taking small companies public through reverse mergers of existing corporate shells. To operate their new venture, Zuckerman and his business partner formed Silicon Valley New Issues, Inc. (SVNI). In addition, he formed Intermountain Marketing & Finance, Inc., a corporation he solely owned which owned 50% of SVNI. As part of the scheme, Mathew Zuckerman evaded corporate income taxes on several million dollars of taxable income in 1999 from Silicon Valley New Issues, Inc. Over the course of the next 10 years, he continued to conceal his assets and business affairs from the IRS by utilizing additional corporations and trusts in order to avoid payment and collection of the Zuckerman's outstanding tax liabilities.
Specifically, to avoid IRS liens, in 1999, the Zuckerman’s caused the deed to their Woody Creek residence, purchased for approximately $1.2 million, to be recorded in the name of Hyperpanel University, Inc. ("Hyperpanel"), a Nevada corporation that listed the names of a cat and a dog as its officers and directors on its filings with the Secretary of State. Similarly, in 2004 Mathew Zuckerman formed a company called Treya, Inc. in Nevada that they used to purchase a $1.8 million home in 2004 in Toluca Lake, California. Based on the directions of Mathew, Sandra used her name from an earlier marriage, Sandra Eberli, to be used in connection with transactions conducted by Treya.
Furthermore, in December of 2004, Mathew Zuckerman created the Mathew Mark Zuckerman Trust ("MMZT") and placed himself in the position as "Trustor" and his CPA was appointed as trustee. In July of 2006, he caused his daughter to be appointed as the trustee and in 2008 caused 4,900,000 shares of Green Earth Technologies (a company for which he served as Chairman) to be issued to the trust using an incorrect employer identification number ("EIN") for MMZT. Then he instructed his daughter to sell shares of the stock and transfer funds to his personal bank accounts. By doing this he received profits in excess of $500,000 while evading payments of taxes owed to the IRS.
“The defendants established multiple entities to engage in a complex scheme to hide money owed to the IRS,” said U.S. Attorney John Walsh. “Despite their best efforts, the defendants were caught and ultimately held accountable for their criminal behavior.”
“For over a decade they committed tax fraud; it was only a matter of time until they were caught and brought to justice,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service and prosecuted by Assistant U.S. Attorney Tim Neff.
Hawaii Man Sentenced to 87 Months Improsonment for Communicating Classified National Defense Information to Unauthorized PersonRead the Press Release
WASHINGTON – Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Florence T. Nakakuni for the District of Hawaii announced today that Benjamin Pierce Bishop, 60, a former Honolulu, Hawaii, civilian defense contractor and retired lieutenant colonel in the U.S. Army, was sentenced today by U.S. District Judge Leslie E. Kobayashi to serve 87 months imprisonment and three years’ supervised release for willfully communicating classified national defense information to a person not authorized to receive it and unlawfully retaining classified national defense information at his home.
Bishop pleaded guilty to the two charges on March 13, 2014. In a plea agreement filed with the court and during court proceedings, Bishop admitted that, on March 12, 2012, he e-mailed classified information to a 27-year-old Chinese woman with whom he had a romantic relationship and who was present in the United States as a graduate student on a J1 Visa.
The classified information related to joint training and planning sessions between the United States and the Republic of Korea and was classified at the SECRET level. Bishop also admitted to unlawfully retaining at his residence multiple classified documents that related to the national defense, including the U.S. Armed Forces Defense Planning Guide for years 2014 through 2018, a document entitled Optimizing U.S. Force Posture in the Asia‑Pacific, the U.S. Department of Defense China Strategy, the 2010 Guidance for Employment of Force (GEF) and a classified photograph of a Chinese naval asset that Bishop retrieved from classified sources based on a request from the Chinese woman. The documents had been removed from Bishop’s workplace at U.S. Pacific Command.
“Willfully communicating national defense information to a person not entitled to receive it is a serious threat to our national security,” said Assistant Attorney General Carlin. “In committing this crime, Bishop violated his oath to protect the classified information with which he was entrusted. This conduct is unacceptable and we will continue to investigate and seek to hold accountable those who engage in it.”
“We remain steadfast and resolute in our pursuit of those who violate their sworn security agreements and divulge our nation’s secrets to foreign nationals and others,” said U.S. Attorney Nakakuni. “This is the second major espionage case prosecuted in the District of Hawaii, and is particularly troublesome because it involves the communication of classified information to a citizen of the People’s Republic of China.”
This case was investigated by the FBI and the Naval Criminal Investigative Service. The case was prosecuted by Assistant U.S. Attorney Ken Sorenson of the U.S. Attorney’s Office for the District of Hawaii and Senior Trial Attorney Robert E. Wallace Jr. of the Counterespionage Section of the Justice Department’s National Security Division.
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Hawaii Man Sentenced to 87 Months Imprisonment for Communicating Classified National Defense Information to Unauthorized PersonRead the Press Release
WASHINGTON – Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Florence T. Nakakuni for the District of Hawaii announced today that Benjamin Pierce Bishop, 60, a former Honolulu, Hawaii, civilian defense contractor and retired lieutenant colonel in the U.S. Army, was sentenced today by U.S. District Judge Leslie E. Kobayashi to serve 87 months imprisonment and three years’ supervised release for willfully communicating classified national defense information to a person not authorized to receive it and unlawfully retaining classified national defense information at his home.
Bishop pleaded guilty to the two charges on March 13, 2014. In a plea agreement filed with the court and during court proceedings, Bishop admitted that, on March 12, 2012, he e-mailed classified information to a 27-year-old Chinese woman with whom he had a romantic relationship and who was present in the United States as a graduate student on a J1 Visa.
The classified information related to joint training and planning sessions between the United States and the Republic of Korea and was classified at the SECRET level. Bishop also admitted to unlawfully retaining at his residence multiple classified documents that related to the national defense, including the U.S. Armed Forces Defense Planning Guide for years 2014 through 2018, a document entitled Optimizing U.S. Force Posture in the Asia Pacific, the U.S. Department of Defense China Strategy, the 2010 Guidance for Employment of Force (GEF) and a classified photograph of a Chinese naval asset that Bishop retrieved from classified sources based on a request from the Chinese woman. The documents had been removed from Bishop’s workplace at U.S. Pacific Command.
“Willfully communicating national defense information to a person not entitled to receive it is a serious threat to our national security,” said Assistant Attorney General Carlin. “In committing this crime, Bishop violated his oath to protect the classified information with which he was entrusted. This conduct is unacceptable and we will continue to investigate and seek to hold accountable those who engage in it.”
“We remain steadfast and resolute in our pursuit of those who violate their sworn security agreements and divulge our nation’s secrets to foreign nationals and others,” said U.S. Attorney Nakakuni. “This is the second major espionage case prosecuted in the District of Hawaii, and is particularly troublesome because it involves the communication of classified information to a citizen of the People’s Republic of China.”
This case was investigated by the FBI and the Naval Criminal Investigative Service. The case was prosecuted by Assistant U.S. Attorney Ken Sorenson of the U.S. Attorney’s Office for the District of Hawaii and Senior Trial Attorney Robert E. Wallace Jr. of the Counterespionage Section of the Justice Department’s National Security Division.
Harrisburg Businessman Pleads Guilty to $216,000 Withholding Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 30-year old Harrisburg man pleaded guilty today before Senior U.S. District Court Judge William C. Caldwell to tax evasion in the amount of $216,000 between October 2006 and May 2011.
According to United States Attorney Peter Smith, Howard Ginting was the sole owner of Ginting Enterprises, Inc., a Pennsylvania corporation in Harrisburg. Ginting Enterprises supplied day laborers to various businesses in central and northeastern Pennsylvania. As the owner and operator, Ginting was required to withhold from the wages of the GEI employees the Federal Insurance Contributions Act (FICA) taxes on a quarterly basis. From October, 2006 through February, 2008, Ginting Enterprises paid wages totaling approximately $851.553, but Ginting falsely reported to the IRS that he had only paid wages in the amount of approximately $68,549. He underpaid the Social Security tax and Medicare taxes owed by GEI by approximately $119,799.
In February, 2008, Ginting shut down Ginting Enterpirses and operated his same labor supply business under the name Trojan Services, Inc. Between February, 2008 and May, 2011, Trojan paid wages of approximately $638,477, but Ginting failed to report to the IRS all wages paid to his employees, underpaying Social Security tax and Medicare taxes owed by Trojan by approximately $97,047.
This resulted in underreporting the employee and employer share of the Social Security and Medicare taxes in the total amount of approximately $216,846.
Ginting was charged by a grand jury in Harrisburg in an indictment in January 2014, following an investigation by the Internal Revenue Service Criminal Investigations.
Ginting faces a potential maximum sentence of 5 years imprisonment, a $250,000 fine and up to 3 years supervised release as well as restitution and tax penalties and interest.
The case is being prosecuted by Assistant U.S. Attorney Gordon Zubrod.
Heath Powers Indicted for Production, Distribution, and Possession of Child PornographyRead the Press Release
Plattsburgh man indicted on 13 counts related to production, distribution, and possession of
child pornographyPLATTSBURGH, NEW YORK – A federal grand jury returned an indictment today charging Heath Powers, 33 years old of Plattsburgh, with 11 counts of production of child pornography, 1 count of distribution of child pornography, and 1 count of possession of child pornography announced United States Attorney Richard S. Hartunian and Federal Bureau of Investigation Special Agent-in-Charge Andrew W. Vale.
If the defendant is convicted, he faces at least 15 years and up to 30 years in prison on each production of child pornography charge; at least 5 years and up to 20 years in prison on the distribution of child pornography charge; and up to 20 years of prison on the possession of child pornography charge. If convicted, he also faces for each count a fine of up to $250,000, a lifetime term of supervised release and registration as a sex offender.
The case is being investigated by the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Katherine Kopita.
The charges in the indictment are merely accusations and the defendant is presumed innocent until and unless proven guilty.
If anyone has information regarding this matter, please contact the Federal Bureau of Investigation at telephone number 1-800-CALL-FBI.
Guatemalan Citizen Apprehended in Franklin County Charged with Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO) announced today that a 35-year-old native and citizen of Guatemala was charged on September 9 with illegal reentry into the United States.
According to United States Attorney Peter Smith, Homero Ruiz-Luis, age 35, was charged in a one-count information filed with the court in Harrisburg.
The information alleges that Ruiz-Luis, an alien who has previously been arrested and deported from the United States, reentered the United States illegally and was apprehended in Franklin County, Pennsylvania.
If convicted, Ruiz-Luis faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO). It is being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
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.
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.
Greece Woman Sentenced for Supplying Guns Used in Christmas Eve ShootingRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Dawn Nguyen, 25, of Greece, N.Y., who was convicted of knowingly making a false statement in connection with the purchase of firearms; selling and disposing of firearms to William Spengler, a known felon; and possession of firearms while being an unlawful user of marijuana, was sentenced to 96 months in prison by U.S. District Judge David G. Larimer.
The charges involve the purchase and disposition of the firearms that were used in the Christmas Eve shooting in December 2012 that resulted in the deaths of Webster Police Lieutenant Michael Chiapperini and West Webster Firefighter Tomasz Kaczowka, and seriously injured Firefighters Theodore Scardino and Joseph Hostetter.
Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that Nguyen made false statements during the purchase of a Bushmaster semiautomatic rifle and a Mossberg 12 gauge shotgun at Gander Mountain in Henrietta, N.Y., in order to acquire those firearms on behalf of William Spengler, Jr. The defendant gave those firearms to Spengler with the knowledge that Spengler was a convicted felon. In addition, Nguyen unlawfully possessed the firearms at a time when she was an unlawful user of marijuana.
The sentencing is the culmination of an investigation on the part of the Webster Police Department, under the direction of Chief Gerald Pickering, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, New York Field Division, the New York State Police, under the direction of Major Scott Crozier, and the Monroe County Sheriff’s Department, under the direction of Sheriff Patrick O’Flynn.Former Union Official Sentenced to Nine Months of Confinement for Embezzling More Than $190,000 in FundsDefendant Spent Thousands on Hotel Stays, Clothing, Other Personal ExpensesRead the Press Release
WASHINGTON – JC Stamps, a former union official, was sentenced today to nine months of confinement in a community correctional facility for embezzling more than $190,000 from two labor organizations he founded and an employee benefits fund.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Bill Jones, Special Agent in Charge for the Washington Region of the U.S. Department of Labor’s Office of Inspector General - Office of Labor Racketeering and Fraud Investigations; Mark Wheeler, District Director of the Washington District Office of the U.S. Department of Labor’s Office of Labor-Management Standards, and Marc Machiz, Philadelphia Regional Office Regional Director, Labor Department’s Employee Benefits Security Administration.
Stamps, 67, of Upper Marlboro, Md., pled guilty in June 2014 to one count of theft from an employee benefit plan. He was sentenced by the Honorable Chief Judge Richard W. Roberts. Upon completion of his period of confinement, Stamps will be placed on three years of supervised release. During that time, Chief Judge Roberts ordered that Stamps perform 100 hours of community service, and be prohibited from holding a position in or being a consultant to a labor organization or employee benefit plan. Chief Judge Roberts also ordered Stamps to pay a total of $192,091 in restitution, as well as a forfeiture money judgment of $84,745.
Stamps, a retired detective from the Metropolitan Police Department (MPD), founded two labor organizations based in Washington, D.C.: the National Union of Protective Services Associations, which represented private security guards, and the National Union of Law Enforcement Associations, which represented police officers. In addition, he founded a security guard firm, Stamps Associates, which also was based in Washington, D.C.
According to a statement of offense, signed by the defendant as well as the government, between 2004 and 2008, Stamps devised a scheme to defraud and embezzle money in several ways from the unions and the National Union of Protective Services Health and Welfare Fund.
In 2007 and 2008, for example, Stamps used money from the health and welfare fund’s bank account to pay American Express for a total of $48,541 in credit card charges for personal purchases and union expenses. None of these charges were related to the administration and operation of the health and welfare fund. Instead they paid for personal expenses, such as hotel stays, furniture, men’s fragrances, clothing, other retail purchases, and online services, as well as for union expenses, including hotel rental (for a holiday party) and automobile rentals.
Also, according to the statement of offense, from 2006 to 2008, Stamps caused the withdrawal of $36,203 from the health and welfare fund bank account to pay an attorney for legal expenses incurred by the unions – and not for the fund’s intended purpose.
In addition to the theft and embezzlement from the health and welfare fund, Stamps stole and embezzled at least $109,866 from the unions from 2004 to 2008. According to the statement of offense, more than half of this money was used to cover debts of Stamps Associates, the security guard company. Other money was used for personal expenses and fraudulent salary payments to an individual identified only as “Person A” in the court documents. “Person A,” who is described in the statement of offense as a close personal friend of Stamps, was nominally the sole owner of Stamps Associates, although Stamps controlled the company.
This case was investigated by the U.S. Department of Labor’s Office of Inspector General, as well as the Labor Department’s Office of Labor-Management Standards and Employee Benefits Security Administration. Assistance was provided by Assistant U.S. Attorney Anthony Saler, who is handling forfeiture issues; Paralegal Specialist Donna Galindo, and former Paralegal Specialists Shanna Hays, Lenisse Edloe, and Nicole Wattelet, all of the U.S. Attorney’s Office for the District of Columbia.
The case was prosecuted by Assistant U.S. Attorney Ellen Chubin Epstein of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Kelly Pearson of the Department of Justice’s Organized Crime and Gang Section.
14-209Former North Liberty Man Sentenced for Federal Methamphetamine ConspiracyRead the Press Release
DAVENPORT, IA – On September 11, 2014, Donald Lee Engstrom, age 41, formerly of North Liberty, Iowa, was sentenced by United States District Judge John A. Jarvey to 120 months imprisonment for conspiracy to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Engstrom was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning in approximately July 2013 and continuing until about November 14, 2013, Engstrom conspired with other persons to distribute ice methamphetamine in the Muscatine, Iowa, and North Liberty, Iowa areas. On multiple occasions, Engstrom obtained ice methamphetamine in Arizona, ranging in weight from ½ to multiple pounds, and drove it to Iowa where he sold the methamphetamine to various customers. On November 14, 2013, law enforcement intercepted a vehicle occupied by Engstrom as it arrived at the home of co-defendant Terry Joe Burns near North Liberty. The vehicle contained 333 grams of highly pure ice methamphetamine and $9,255 in U.S. currency. Engstrom was traveling to meet Burns because he had arranged a meeting with Burns and an acquaintance of Burns for the purpose of selling that person ½ pound of ice methamphetamine.
Co-defendant Burns has pled guilty to conspiracy to distribute methamphetamine and is awaiting sentencing.
This case was investigated by the Johnson County Drug Task Force, the United States Drug Enforcement Administration, the Iowa Department of Narcotics Enforcement, and the police departments from North Liberty and Iowa City, Iowa. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former McHenry County Sheriff's Deputy Sentenced to 50 Years in Federal Prison for Child Sexual Abuse and ExploitationRead the Press Release
ROCKFORD — A former McHenry County sheriff’s deputy who was that department’s representative on the state’s Internet Crimes Against Children Task Force was sentenced today to 50 years in federal prison for child sexual abuse and exploitation. The defendant, GREGORY M. PYLE, 39, of Crest Hills, Ill., formerly of Crystal Lake, Ill., was also placed on lifetime supervision after release from custody by U.S. District Court Judge Frederick J. Kapala, who imposed the sentence in Federal Court in Rockford.
Pyle, a sheriff’s deputy for more than a decade, pleaded guilty on Jan. 3 of this year, admitting that he crossed a state line with intent to engage in a sexual act with a minor. Today’s sentencing hearing will be completed at 2:30 p.m. on Oct. 21, 2014, when restitution and special conditions of supervised release will be imposed.
“For over five years, [Pyle] was entrusted with the efforts of the McHenry County Sheriff’s Office to protect children from exploitation and abuse. When he knew he was under investigation, [Pyle] successfully obstructed investigators determining the full scope of his criminal conduct,” Assistant U.S. Attorney Michael D. Love argued in requesting a 50-year sentence.
In pleading guilty, Pyle admitted that on Dec. 13, 2008, he had custody of a child under 12 years of age, when he drove the child from Crystal Lake, Ill. to Milwaukee, Wis., intending to engage in sexual acts with the child and to produce visual depictions of the sexual conduct. Pyle admitted that he stayed overnight in a Milwaukee hotel and engaged in sexual acts with the child that were sadistic, masochistic, and violent. The defendant produced images of the child engaged in these sexual acts and later distributed the images over the Internet.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois State Police, the McHenry County Sheriff’s Department, and the Illinois Internet Crimes Against Children Taskforce assisted in the investigation.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Former Iowa City Man Sentenced on Federal Heroin ChargeRead the Press Release
DAVENPORT, IA – On September 10, 2014, Kyle Cameron Messerle, age 24, formerly of Iowa City, Iowa, was sentenced by Chief United States District Judge James E. Gritzner to 60 months imprisonment for distribution of heroin, announced United States Attorney Nicholas A. Klinefeldt. Messerle was also ordered to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
On or about the night of November 10, 2012, Messerle was at a party in Iowa City and later admitted that he provided a quantity of “china white” heroin to two individuals. That same night, both of these individuals used the heroin provided by Messerle. The next day, one of these individuals was found dead, the result of mixed heroin and ethanol intoxication.
This case was investigated by the United States Drug Enforcement Administration, Johnson County Drug Task Force, and the Iowa City, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former Fairfield Community High School Cross Country Team Coach Pleads Guilty to Sex Offenses Involving MinorsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 17, 2014, Timothy C. Going, 43, formerly of Fairfield, IL, where he worked as the coach for the cross country team, the assistant coach for the track team, and a math teacher at Fairfield Community High School, pled guilty to a four-count Indictment charging him, in Counts 1 through 3, with the Attempted Sexual Exploitation of Minors and, in Count 4, with Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct.
For the three counts of Attempted Sexual Exploitation of Minors, Going faces a term of not less than fifteen years but not more than thirty years in federal prison, a fine up to $250,000, and a term of supervised release of not less than five years to life for each count. For the offense of Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, Going faces a term of not more than ten years in federal prison, a fine up to $250,000, and a term of supervised release of not less than five years to life.
Going’s sentencing is scheduled for January 5, 2015, in East St. Louis, Illinois. Going has been held without bond since his arraignment on July 21, 2014.
Court documents revealed that Going’s criminal activities began on May 5, 2014, when a hidden video camera was discovered above a bathroom stall in the girls’ locker room at Fairfield Community High School. The video camera was wired to a black box with an antennae attached to it and a SD card slot in it. The next day, an Illinois State Police (ISP) crime scene investigator collected the camera and black box as evidence and transported them to the ISP’s forensics crime lab in Springfield, Illinois.
An ISP Forensic Technician began a forensic examination of the SanDisk micro SD card (SD card) removed from the black box that was wired to the hidden video camera and discovered several video clips from May 5, 2014, which depicted teenage girls using the bathroom stall or standing or walking next to the bathroom stall in the girls’ locker room in various stages of undress. There were other video clips that had been deleted that showed that the camera had been hidden in different locations in the girls’ locker room, including the changing area, before being placed above the bathroom stall.
The SD card also contained a video clip from May 2, 2014, which captured the placement of the hidden camera in the location in which it was found, by a white male wearing shorts and white ankle socks at approximately 10:28 p.m. that night. A review of the school’s surveillance video showed Going entering the school near that time wearing black shorts, a black hoodie, a gray stocking cap, tennis shoes, and white ankle socks. The school’s surveillance system captured Going later going into the dark gym area, and, at approximately 10:28 p.m., leaving the gym area wearing his white ankle socks and carrying his shoes. The surveillance camera then showed Going exit the school, sit on the stairs to put on his shoes, walk to his truck and drive away.
Additional images recovered from the SD card showed images of members of the girls’ cross country team in various stages of undress as they prepared to and/or finished showering in what appeared to be different hotel bathrooms. Illinois State Police Special Agents spoke with the administration at Fairfield Community High School and learned that Going had taken the cross country team on two overnight trips in 2012 and one overnight trip in 2013 to attend track meets and two regional competitions at Southern Illinois University in Edwardsville, Illinois. Going drove the bus that carried both the cross country team to the meet and regional competitions.
Members of the girls’ 2012 and 2013 cross country teams were interviewed regarding these overnight trips. The interviews revealed that Going had the same routine when he arrived at and left the motel with the cross country team. He would either have the team wait on the bus or in the lobby while he checked them in and took the keys from the hotel clerk. He would then tell the kids to wait so he could check the rooms for any “damage” so that the damage would not be attributed to the students occupying the room, and subsequently charged to the school. After he returned, he would assign rooms to the girls and the boys, and give them the keys to their rooms. Likewise, before checking out of the motel the next day, Going would again have the team either wait in the lobby or on the bus while he would take their keys and tell them that he was going to check the rooms for any “damage” and to make sure all personal belongings had been removed. He would then turn the keys into the motel clerk and they would leave. It was at these times that Going installed and removed the hidden video camera from the bathroom of rooms he specifically assigned to members of the girls’ cross country team.
On May 9, 2014, Going was arrested and charged by the Wayne County State’s Attorney with unauthorized videotaping of students as well as burglary to the school. That same day, a state search warrant was executed at Going’s residence and numerous electronic media devices were seized. These electronic media devices, including, but not limited to, a MSI Generic desktop computer, a HP Pavilion laptop computer, were also submitted to the ISP’s forensics crime lab for forensic examination. During the forensic examinations of the MSI Generic desktop computer and the HP Pavilion laptop computer, a large number of visual depictions of minors engaged in sexually explicit conduct were found. The majority of the images had been downloaded via the internet, and depicted sexual interactions between minors and adults, as well as sexual interactions between minors, and the lascivious display of the genitals of minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Illinois State Police, the Fairview Heights Police Department, and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Former Contract Employee for U.S. Citizenship and Immigration Services Sentenced to 26 Months in Prison for Theft, Sale of FormsRead the Press Release
NEWARK, N.J. - A former contract employee for U.S. Citizenship and Immigration Services (USCIS) was sentenced today to 26 months in prison for stealing hundreds of immigration forms from the warehouse where he worked and selling them for ultimate use as part of a criminal enterprise, U.S. Attorney Paul J. Fishman announced.
Martin Trejo, 47, of Rialto, California, was previously convicted of one count of conspiracy to steal government property and transport it in interstate commerce and one count of transportation of stolen goods in interstate commerce. Trejo was convicted following a one-week trial before U.S. District Judge Faith S. Hochberg, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
While working as a contract employee for USCIS, Trejo stole hundreds of immigration forms from the warehouse where he worked and sold them to a conspirator, who sold the forms to a criminal enterprise that used them to obtain hundreds of driver’s licenses for individuals living in New Jersey and other states illegally.
In addition to the prison term, Judge Hochberg sentenced Trejo to serve two years of supervised release and fined him $4,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and agents of the Department of Homeland Security, Office of Inspector General, under the direction of Acting Special Agent in Charge Edward Nasiatka of the New York field office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Anthony Moscato and David M. Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
14-329Defense counsel: John P McGovern Esq., Newark
Former Clark County Family Court Judge Steven Jones and Four Co-Defendants Plead Guilty to Investment Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Clark County Family Court Judge Steven E. Jones and four co-defendants pleaded guilty today to conspiracy charges for defrauding over 22 people of millions in an investment fraud scheme involving bogus water rights and real estate transactions, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Laura Bucheit, Special Agent in Charge of the FBI for Nevada. As part of his plea agreement with the government, Jones agreed to step down from the bench and surrender his law license to the State Bar of Nevada.
Jones, 56, Thomas A. Cecrle, Jr., 57, and Terry J. Wolfe, 59, of Henderson, Nev., and Mark L. Hansen, 56, of Corvallis, Ore., pleaded guilty before U.S. District Judge Jennifer A. Dorsey to one count of conspiracy to commit wire fraud. Also in connection with the same fraud scheme, Constance C. Fenton, 70, of Gig Harbor, Wash., pleaded guilty to one count of conspiracy to commit money laundering. They each face up to 20 years in prison, $250,000 in fines, and mandatory restitution, and are scheduled to be sentenced on Jan. 26, 2015. A sixth defendant charged in the scheme, Ashlee M. Martin, 30, of Las Vegas, Nev., pleaded guilty on Aug. 11 to conspiracy to commit money laundering, and is scheduled to be sentenced in August 2015.
“This prosecution was the result of a long, thorough, and resource-intensive investigation and should serve as a vivid reminder that public officials who use their offices as a means to commit a crime of whatever nature will be pursued vigorously and prosecuted to the utmost rigor of the law,” said U.S. Attorney Bogden. “Defendant Jones knowingly used his office to lull victims into a false sense of security about investments he knew were scams. No one is above the law, especially a person holding the office of judge.”
"These guilty pleas serve as evidence to the public that the FBI, working with our law enforcement partners and the U.S. Attorney’s Office, will continue to ensure that no one is above the law, and when public corruption is identified, it will be aggressively investigated and prosecuted,” said Special Agent in Charge Bucheit.
According to the plea memoranda, defendants lured victims into a fraud scheme by falsely telling them that Cecrle worked as a contractor for the U.S. Department of Homeland Security, purchasing and selling water rights worth millions of dollars as part of a secret government program. The co-conspirators then solicited money by falsely claiming that Cecrle needed short-term cash loans to complete his phantom water deals, loans he promised to repay in short order along with a very large return. Cecrle and his co-conspirators concocted a similar story involving a land deal on the Las Vegas Strip where Cecrle needed short-term loans to supposedly close a deal with Sir Richard Branson. In truth, however, Cecrle held no position with the federal government and there were no land or water rights deals.
Using his office as an elected state court judge, defendant Jones knowingly vouched for Cecrle and the legitimacy of the deals to potential investors when he knew the deals were, in fact, scams. According to the plea memorandum, Jones continued to further the conspiracy by receiving money from a victim in the parking lot of the Family Division Courthouse, meeting with at least one potential investor in his chambers and elsewhere in the courthouse to discuss the investment, obtaining an “Own Recognizance” bond to release Cecrle from custody after he was arrested for bad checks he had passed to a victim, and opening and maintaining a joint checking account with Cecrle, through which flowed over $260,000 in illegal proceeds. During the entire conspiracy, which lasted from about September 2002 to October 2012, the defendants defrauded at least 22 victims of more than $2.6 million, money they quickly converted to their own use.The case was investigated by the FBI and prosecuted by First Assistant U.S. Attorney Steven W. Myhre and Assistant U.S. Attorney Daniel R. Schiess of the U.S. Attorney’s Office for the District of Nevada.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Former Army Energy Program Manager Faces Additional Charges of Defrauding the Army at Fort KnoxRead the Press Release
LOUISVILLE, Ky. – A former Fort Knox Energy Program Manager was charged in a second superseding indictment today with devising multiple wire fraud schemes to defraud the United States and violating criminal conflict of interest laws, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Gary T. Meredith, age 65, of Leitchfield, Kentucky is charged in a 38 count second superseding indictment. According to the indictment, while he was still a government employee Meredith violated federal conflict of interest laws by creating a contract establishing a lucrative post-retirement job for himself as a contractor with Nolin Rural Electric Cooperative Corporation (Nolin). In the process of creating the outside job as a contractor, Meredith is charged with fraudulently diverting to Nolin a $582,329.85 credit received by the U.S. Army from Louisville Gas & Electric Company, for the purpose of funding his post-retirement contract position with Nolin.
Once Meredith began working as a Nolin contractor in October 2007, the indictment alleges that he violated another criminal conflict of interest law by representing Nolin before the Army, with the intent to influence, on the same contracts and matters that he had participated in personally and substantially before his retirement, while an Army employee. Meredith continued working as a Nolin contractor at Fort Knox until April 2012, when Senior District Judge John G. Heyburn II granted the United States’ motion for a restraining order, in a separate civil lawsuit, which barred Meredith from continuing to receive payment for work in the contractor position.
The second superseding indictment further charges Meredith with numerous counts of wire fraud committed while a Nolin contractor, including:
- Between January 2009 and August 2010, Meredith created a scheme to defraud the United States at Fort Knox by instructing Nolin to overbill for natural gas provided under Energy Conservation Order (ECO) 70. Meredith then approved the fraudulently inflated bills for payment, resulting in over $320,000 in overpayments to Nolin.
- Between January 25, 2010 and February 26, 2010, Meredith devised a scheme to defraud the United States Army at Fort Knox by instructing Nolin RECC to charge nearly $200,000 in unauthorized ECO 68 related expenses (ECO 68 was never approved) to ECO 78, an unrelated but approved contract. Meredith then approved the fraudulent ECO 78 invoices for payment by the Army.
- Between February 19, 2010 and May 26, 2010, Meredith devised a scheme to defraud the United States Army at Fort Knox by instructing Nolin to charge over $94,000 in unapproved and unauthorized expenses for a solar panel project to ECOs 13, 53, and 70, unrelated but approved contracts. Meredith then approved the fraudulent invoices for payment by the Army.
- Meredith knew that Nolin RECC could not charge the Army for services before those services were rendered, but on October 20, 2009, Meredith approved a $190,401 Nolin invoice for one year of Meredith’s contractor salary in advance.
On September 8, 2014, the Department of Defense, Office of Inspector General, released a report of an audit conducted on the Fort Knox energy program. Amongst other things, the audit concluded that “Fort Knox officials did not properly award and administer 108 task orders, valued at about $270 million, for energy savings projects. In addition, Fort Knox officials could not support the claim that projects achieved the projected energy savings. . . . Furthermore, the lack of adequate internal controls increases the risk of fraud, waste and abuse.” http://www.dodig.mil/pubs/report_summary.cfm?id=5958
If convicted of the charges, Meredith faces a maximum sentence of 730 years in prison, a maximum fine of $9,500,000, and a maximum three year period of supervised release. This case is being prosecuted by Assistant United States Attorney David Weiser and was investigated by the Defense Criminal Investigative Service (DCIS), Dayton Resident Agency.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Florida Home Health Care Company and its Owners Agree to Resolve False Claims Act Allegations for $1.65 MillionRead the Press Release
A Plus Home Health Care Inc. and its owners, Tracy Nemerofsky and her father, Stephen Nemerofsky, have agreed to pay $1.65 million to the United States to settle allegations that A Plus paid spouses of referring physicians for sham marketing positions in order to induce patient referrals, the Justice Department announced today. A Plus is a home health care company located in Fort Lauderdale, Florida.
“Kickback schemes drive up the cost of health care and cause physicians to make decisions based on their own bottom line instead of what is in the best interest of their patients,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We will hold any health care company, and the individuals that own those companies, responsible for using kickbacks to line their pockets at the expense of taxpayers and federal health care beneficiaries.”
The United States filed a complaint against A Plus and Tracy Nemerofsky alleging that, beginning in 2006, A Plus engaged in a scheme to increase Medicare referrals in the heavily saturated home health care market in southern Florida. The company allegedly hired at least seven physicians’ spouses and one physician’s boyfriend to perform marketing duties, but required the spouses and boyfriend to perform few, if any, actual job duties. Instead, the spouses’ and boyfriend’s salaries allegedly served as an inducement and reward for the physicians’ referrals of Medicare patients to A Plus. According to the complaint, Tracy Nemerofsky fired at least two spouses when their husbands failed to refer a certain number of patients to A Plus. Tracy Nemerofsky allegedly reaped large rewards for the scheme, receiving a salary of $685,000 from A Plus in 2010, when A Plus’ business increased as a result of Medicare referrals generated from the sham marketer scheme.
“Kickback schemes undermine the integrity of our public health care programs,” said U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida. “The settlement announced today holds A Plus accountable for its submission of false claims, including restoring funds paid as a result of the false claims to Medicare. We will not relent in our efforts to combat these kinds of fraudulent schemes.”
“Home health care company owners who engage in such blatant, aggressive kickback schemes to get physicians to refer Medicare patients for the company’s services will instead pay for their improper conduct at the settlement table,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “We will continue to crack down on such illegal, wasteful business kickback arrangements, which undermine impartial medical judgment, corrode the public’s trust in the health care system and divert scarce Medicare funding.”
The settlement resolves allegations that were originally brought by William Guthrie, a former director of development at A Plus, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for the submission of false claims and to receive a share of any recovery. The False Claims Act authorizes the United States to intervene in such lawsuits and take over primary responsibility for litigating them, as the United States did here. Guthrie’s share of this settlement has not yet been determined.
The United States previously settled with five couples that allegedly accepted payments from A Plus: Steven and Fortuna Hornreich, Mark and Meredith Rogovin, Sam and Christy Sareh, Gary and Stacy Wolfson, and Keifer Wyble and Nuria Rodriguez.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary 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 this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation of this matter reflects a coordinated effort among the Commercial Litigation Branch of the Civil Division, the U.S. Attorney’s Office for the Southern District of Florida, HHS-OIG and the FBI.
The lawsuit is captioned U.S. ex rel. Guthrie v. A Plus Home Health Care, Inc., 12 CV 60629 (S.D. Fla.). The claims settled by the lawsuit are allegations only, and there has been no determination of liability.
Florida Home Health Care Company and Its Owners Agree to Resolve False Claims Act Allegations for $1.65 MillionRead the Press Release
A Plus Home Health Care Inc. and its owners, Tracy Nemerofsky and her father, Stephen Nemerofsky, have agreed to pay $1.65 million to the United States to settle allegations that A Plus paid spouses of referring physicians for sham marketing positions in order to induce patient referrals, the Justice Department announced today. A Plus is a home health care company located in Fort Lauderdale, Florida.
“Kickback schemes undermine the integrity of our public health care programs,” said U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida. “The settlement announced today holds A Plus accountable for its submission of false claims, including restoring funds paid as a result of the false claims to Medicare. We will not relent in our efforts to combat these kinds of fraudulent schemes.”
“Kickback schemes drive up the cost of health care and cause physicians to make decisions based on their own bottom line instead of what is in the best interest of their patients,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We will hold any health care company, and the individuals that own those companies, responsible for using kickbacks to line their pockets at the expense of taxpayers and federal health care beneficiaries.”
The United States filed a complaint against A Plus and Tracy Nemerofsky alleging that, beginning in 2006, A Plus engaged in a scheme to increase Medicare referrals in the heavily saturated home health care market in southern Florida. The company allegedly hired at least seven physicians’ spouses and one physician’s boyfriend to perform marketing duties, but required the spouses and boyfriend to perform few, if any, actual job duties. Instead, the spouses’ and boyfriend’s salaries allegedly served as an inducement and reward for the physicians’ referrals of Medicare patients to A Plus. According to the complaint, Tracy Nemerofsky fired at least two spouses when their husbands failed to refer a certain number of patients to A Plus. Tracy Nemerofsky allegedly reaped large rewards for the scheme, receiving a salary of $685,000 from A Plus in 2010, when A Plus’ business increased as a result of Medicare referrals generated from the sham marketer scheme.
“Home health care company owners who engage in such blatant, aggressive kickback schemes to get physicians to refer Medicare patients for the company’s services will instead pay for their improper conduct at the settlement table,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “We will continue to crack down on such illegal, wasteful business kickback arrangements, which undermine impartial medical judgment, corrode the public’s trust in the health care system and divert scarce Medicare funding.”
The settlement resolves allegations that were originally brought by William Guthrie, a former director of development at A Plus, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for the submission of false claims and to receive a share of any recovery. The False Claims Act authorizes the United States to intervene in such lawsuits and take over primary responsibility for litigating them, as the United States did here. Guthrie’s share of this settlement has not yet been determined.
The United States previously settled with five couples that allegedly accepted payments from A Plus: Steven and Fortuna Hornreich, Mark and Meredith Rogovin, Sam and Christy Sareh, Gary and Stacy Wolfson, and Keifer Wyble and Nuria Rodriguez.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary 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 this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation of this matter reflects a coordinated effort among the Commercial Litigation Branch of the Civil Division, the U.S. Attorney’s Office for the Southern District of Florida, HHS-OIG and the FBI.
The lawsuit is captioned U.S. ex rel. Guthrie v. A Plus Home Health Care, Inc., 12 CV 60629 (S.D. Fla.). The claims settled by the lawsuit are allegations only, and there has been no determination of liability.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Five Individuals Charged in Connection with Unlawful ATV Ride in Recapture CanyonRead the Press Release
SALT LAKE CITY - A two-count misdemeanor information filed in federal court Wednesday morning in Salt Lake City charges five individuals in connection with an unlawful ATV ride in Recapture Canyon on May 10, 2014. The information alleges one count of conspiracy to operate off-road vehicles on public lands closed to off-road vehicles and one count of operation of off-road vehicles on public lands closed to off-road vehicles.
Charged in the information are Phillip Kay Lyman, age 50, of Blanding; Monte Jerome Wells, age 50, of Monticello; Jay Demar Redd, age 40, of Santa Clara; Shane Morris Marian, age 33, of Monticello; and Franklin Trent Holliday, age 31, of Blanding. A summons will be issued to the five to appear in federal court in Salt Lake City on Oct. 17, 2014, at 2 p.m., before U.S. Magistrate Judge Evelyn Furse. Each count in the information carries a potential penalty of up to a year in jail and a fine of $100,000. The investigation in the case is ongoing.
The information charges the five individuals with conspiracy to operate off-road vehicles on public lands closed to off-road vehicles. According to the information, from about Feb. 27, 2014, and continuing until about May 10, 2014, the defendants conspired among themselves, with each other, and with others known and unknown to operate off-road vehicles through land restricted to off-road vehicles and administered by the BLM. The information alleges the purpose of the conspiracy was to unlawfully operate off-road vehicles through the restricted area as a means of expressing opposition to the BLM and its management of Recapture Canyon.
“We respect the fact that the citizens of this State have differing and deeply held views regarding the management and use of Recapture Canyon, and recognize that they have the right to express those opinions freely. Nevertheless, those rights must be exercised in a lawful manner and when individuals choose to violate the law, rather than engage in lawful protest, we will seek to hold those individuals accountable under the law,” Acting U.S. Attorney Carlie Christensen said today.
“Regrettably, a number of individuals organized and engaged in an illegal ATV ride through Recapture Canyon, an area rich in archaeological history” said BLM Director Neil Kornze. “Today’s actions by the U.S. Attorney’s Office underscore the importance of protecting culturally significant areas and holding accountable those who broke the law.”
Count one of the information alleges that beginning on or about March 2, 2104, Lyman began advertising the proposed ATV ride through the restricted area to occur on May 8, 2014, through social media. It was further part of the conspiracy, the information alleges, that on April 11, 2014, Lyman advertised the proposed ATV ride through the restricted area of Recapture Canyon by publishing an article in the Deseret News. The information alleges Lyman further promoted the published article using social media. Later in April, according to the information, Lyman, using social media, began advertising a change in the date for the proposed ATV ride from May 8, 2014, to May 10, 2014, to allow more people to participate.
The information alleges that in late April, Lyman and Wells used social media websites to publish and promote an invitation, with accompanying instructions, to the public to join the proposed ATV ride through the off-road vehicle restricted area in Recapture Canyon on May 10, 2014.
Around May 5, 2014, Lyman and Wells filmed a three-part video interview in which they discussed the nature, origin, and plans for the proposed ATV ride through the off-road vehicle restricted area in Recapture Canyon. It was further part of the conspiracy, according to the information, that Lyman and Wells used various social media websites to advertise and promote the proposed ATV ride.
According to the information, Lyman and Redd spoke to a large gathering of people at a meeting in Blanding the morning of May 10, 2014, before the ride, instructing and encouraging the group assembled regarding the proposed ATV ride.
The information alleges each defendant committed an overt act in furtherance of the conspiracy by knowingly and willfully operating an off-road vehicle through the restricted area of Recapture Canyon on May 10, 2014.
Count two of the information alleges the five defendants operated an off-road vehicle through land closed to off-road vehicles and administered by the Bureau of Land Management and did aid and abet each other.
An information is not a finding of guilt. Individuals charged in an information are presumed innocent unless or until proven guilty in court.
Recapture Canyon is federal public land managed by the Bureau of Land Management. Recapture Canyon contains unique archaeological resources, including ancient rock art and dwellings that are culturally significant and irreplaceable. According to the BLM, the archaeological record left behind shows that the area was previously occupied for at least 2,000 years. For this reason, Recapture Canyon was closed to motorized use in 2007 but remains open to the public for walking, hiking and horseback riding.
There are more than 2,800 miles of OHV trails administered by the BLM in southeast Utah that are open to public use. The BLM will continue to work with all stakeholders to address the various uses of public lands, including the development of new OHV trails.
Federal Jury in El Paso Convicts Businessman for Small Business Administration Contract Fraud SchemeRead the Press Release
In El Paso, a federal jury convicted 55–year-old Thomas Gregory Harris of Friendswood, TX, former Sr. Vice President for Luster National Inc., yesterday afternoon of 16 counts of wire fraud in connection with a scheme to defraud the Small Business Administration (SBA) announced United States Attorney Robert Pitman and Special Agent in Charge Douglas E. Lindquist of the FBI’s El Paso Division.
SBA administers a program pursuant to the Small Business Act called the “Section 8(a) program” that is intended to promote the business development of companies owned and operated by “socially and economically disadvantaged individuals.” In that program, certain government contracts are sometimes set aside for performance by so-called “8(a) concerns,” that is, business entities whose owners/operators the SBA has determined meet the criteria for being "socially and economically disadvantaged."
In July 2010, the SBA approved a joint venture, called Tropical Luster Joint Venture ("TLJV"), between two business entities: Tropical Contracting, LLC ("Tropical"), which is based in San Antonio, and Luster National, Inc. ("Luster"), which has offices in Houston and California. The SBA had approved Tropical as an 8(a) concern in 2009. Luster was not a qualifying 8(a) concern.
Evidence presented during trial revealed that in 2010 and 2011, Harris, unbeknownst to the SBA, used Tropical’s qualifying 8(a) status to obtain three restricted contracts awarded by the SBA.
In 2011, the SBA awarded Harris and TLJV the “Net Zero contract” at Fort Bliss in El Paso to design and implement a written plan to reduce energy consumption at the base. In January 2012, the U.S. Army paid TLJV approximately $492,000 as compensation for work on the Net Zero contract.
In 2010 and 2011, the SBA awarded Harris and TLJV two separate contracts with the U.S. Army Corps of Engineers (USACE) in Galveston, TX for project management duties as assigned by USACE. From 2010 to 2012, USACE paid TLJV approximately $895,000 as compensation for work on USACE projects.
In all three matters, Tropical, the 8(a) concern, did not manage and control TLJV's performance of the contracts as required by law. In fact, personnel associated with Tropical did no work whatsoever on the contracts. Harris managed and controlled TLJV's entire performance of the contracts. Luster personnel, or subcontractors Luster retained, did all of the work. Had the SBA known that Tropical was not managing and controlling TLJV's work on any of the contracts, it would have disqualified TLJV as an approved 8(a) joint venture, which would have rendered it ineligible for the contracts to perform the work at Fort Bliss or USACE in Galveston.
“Today’s conviction of Mr. Harris, should serve as a strong message regarding the FBI’s pursuit and prosecution of vendors in the El Paso community who take advantage of socially and economically disadvantaged small businesses for self-profit. Nothing erodes the public trust more than those who illegally manipulate a contract acquisition process to benefit from taxpayer dollars,” stated FBI Special Agent in Charge Douglas E. Lindquist.
Harris is on bond pending sentencing. Sentencing is scheduled for 8:00am on December 10, 2014, before United States District Judge Philip R. Martinez in El Paso. Each wire fraud charge calls for up to 20 years in federal prison.This case was investigated by the Federal Bureau of Investigation (FBI) together with the United States Army Criminal Investigation Command, Major Procurement Fraud Unit. Assistant United States Attorneys John Klassen and Gregory McDonald are prosecuting this case on behalf of the Government.
Farrell Man Serving Time in State Prison Gets 7 More Years in Federal Prison for Gun CrimeRead the Press Release
PITTSBURGH - A resident of Farrell, Pa., was sentenced yesterday in federal court after pleading guilty to a charge of brandishing a firearm during and in relation to drug trafficking, United States Attorney David J. Hickton announced today.
On June 10, 2014, Jashaad Coleman, 20, pleaded guilty to one count of brandishing a firearm during and in relation to drug trafficking before Senior United States District Judge Maurice B. Cohill. On Sept. 16, 2014, Judge Cohill sentenced Coleman to seven years in federal prison, to be served consecutively to the 4- to 11- year sentence Coleman is currently serving in Pennsylvania state custody for a firearm and robbery conviction.
In connection with the guilty plea and sentencing, the Court was advised that in the early morning hours of July 31, 2012, a vehicle carrying two individuals known to be associated with drug trafficking was stopped by officers employed by the Southwest Mercer County Regional Police Department. Coleman knew that this vehicle was carrying a quantity of crack cocaine for distribution, and upon learning that this vehicle had been subject to a traffic stop, he rode to the scene of the stop. There, Coleman pulled out a 9mm firearm, which he discharged towards the officers, with the goal of distracting the officers from the vehicle that they had stopped. Law enforcement took cover, and both the occupants of the vehicle and the crack cocaine were not recovered by the police.
In February, 2013, Coleman was tried before a Mercer County jury for unauthorized possession of a firearm as it related to the abovementioned shooting. Coleman was acquitted of this crime. Federal charges were then brought resulting in the guilty plea to the federal firearms charge.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the United States.
The Pennsylvania State Police, the Southwest Mercer County Regional Police, the Mercer County District Attorney's Office, and the Federal Bureau of Investigation conducted the investigation that led to the successful prosecution of Jashaad Coleman.
Doctor Indicted for Illegal Distribution of PainkillersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – A West Virginia physician has been indicted on charges that she prescribed prescription painkillers outside the scope of her professional practice.
United States Attorney William J. Ihlenfeld, II, announced that Dr. Tressie M. DUFFY, age 44 of Martinsburg, W. Va., was indicted on 100 felony counts alleging that she aided and abetted the distribution of narcotic controlled substances. The indictment asserts that DUFFY signed blank prescription orders and then allowed employees at her medical practice to issue the prescriptions without being seen by a physician, all in violation of Federal law. DUFFY is alleged to have issued 157 prescriptions for controlled substances to 96 patients outside the course of professional practice.
DUFFY is engaged in the practice of medicine under the business name of “West Virginia Weight and Wellness, Inc.” She was indicted along with Amanda CLARK, age 29 of Martinsburg, an office assistant at West Virginia Weight & Wellness, and Tracie COLBERT, age 33 of Martinsburg, an employee of AIT Laboratories. DUFFY, CLARK, and COLBERT are each alleged to have aided and abetted the distribution of Oxycodone, Oxymorphone, Methadone, and Methylphenidate, HCL, all Schedule II controlled substances.
DUFFY and her co-defendants face up to twenty years in prison on each count, along with a fine of up to $1,000,000. Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of each defendant. The charges contained in the indictment are merely accusations and are not evidence of guilt. The defendants are presumed innocent until and unless proven guilty.
The case will be prosecuted by Assistant U.S. Attorney Paul T. Camilletti and was investigated by the Drug Enforcement Administration.
Davenport Woman Sentenced on Federal Drug Trafficking OffenseRead the Press Release
DAVENPORT, IA – On September 11, 2014, Leann Sue Perez, age 39, of Davenport, Iowa, was sentenced by United States District Judge John A. Jarvey for possession with intent to distribute cocaine, announced United States Attorney Nicholas A. Klinefeldt. Perez was sentenced to 40 months in prison, and was ordered to serve three years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
On June 17, 2013, law enforcement executed a search warrant for a Davenport, Iowa, residence associated with Perez and her co-defendant, Jose Antonio Garcia. At that residence agents located, among other things, over one-half kilogram cocaine, digital scales, and packaging material. Perez possessed this cocaine and intended to distribute some or all of it to other persons. Prior to the June 17 search, Perez and Garcia obtained additional quantities of cocaine from a source of supply and distributed that cocaine to customers in the Davenport, Iowa, area.
On August 15, 2014, Judge Jarvey sentenced co-defendant Jose Antonio Garcia, age 44, of Davenport, Iowa, to 108 months in prison, and also ordered Garcia to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
This case was investigated by the Davenport, Iowa, Police Department and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Court Bars Florida Tax Preparer from Preparing Returns for OthersRead the Press Release
A federal district judge in the U.S. District Court for the Middle District of Florida has permanently barred Jeanne Covington, of Tampa, Florida, and her company, Jeanne’s Tax Preparation and Bookkeeping Inc., from preparing federal income tax returns for others, the Justice Department announced today.
The suit alleges that Covington has prepared returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes, including fabricating or inflating business expenses that Covington’s customers never paid or incurred. The complaint also alleges that Covington prepared returns that wrongfully claimed tax credits, including education credits and the residential energy credit. Altogether, the government complaint alleges that Covington’s activities may have caused millions of dollars in loss to the U.S. Treasury.
Return preparer fraud is one of the IRS' 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. Jeanne Covington, et al.
OrderConvicted Felon Sentenced for Owning FirearmRead the Press Release
CINCINNATI – Santonio Watkins, 28, of Cincinnati, was sentenced in U.S. District Court to 72 months in prison for possessing a firearm as a felon.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF) and Cincinnati Police Chief Jeffrey Blackwell, announced the sentence handed down today by Senior U.S. District Judge Sandra Beckwith.
While engaged in a traffic stop on January 29, 2014, law enforcement officers discovered Watkins was in possession of a 9mm pistol and 11 rounds of ammunition. As a previously convicted felon, this violated federal firearm statutes.
U.S. Attorney Stewart commended the cooperative investigation by the ATF and Cincinnati Police Department, as well as Cincinnati Branch Chief Anthony Springer, who represented the United States in this case.
Watkins pleaded guilty on May 12, 2014 to felon in possession of a firearm.Buffalo Man Pleads Guilty to Conspiracy to Commit ArsonRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today Michael Fijal, 61, of Buffalo, NY, pleaded guilty to conspiracy to commit arson before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of five years in prison, a $250,000 fine or both.
According to Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, in May 2011, Fijal, a local bank employee, conspired with others to burn down a duplex at 179 Mackinaw Street which is located in Buffalo's Old First Ward neighborhood. The defendant withdrew money from a local bank for the purpose of paying an accomplice to burn the building and paying the accomplice both before and after the fire on May 22, 2011.
The plea is the result of investigation on the part of Special Agents of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, New York Field Division, and Investigators with the Buffalo Fire Department, under the direction of Commissioner Garnell Whitfield.
Sentencing is scheduled for January 16, 2015 at 1:00 p.m. before Judge Arcara.Battlefield Man Sentenced for $945,000 Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Battlefield, Mo., man has been sentenced in federal court for embezzling $945,000 from his employer.
Travis E. Honaker, 36, of Battlefield, was sentenced by U.S. Chief District Judge Greg Kays on Tuesday, Sept. 16, 2014, to three years and one month in federal prison without parole. The court also ordered Honaker to pay $945,200 in restitution.
On March 18, 2014, Honaker pleaded guilty to wire fraud and money laundering. Honaker admitted that he engaged in a scheme to defraud his employer, Prime, Inc., from Aug. 22, 2007, to December 2011. Through his schemes, Honaker embezzled at least $945,200 over the five-year period of the investigation. The illegally obtained funds were used for Honaker’s personal living expenses and paid for such items as a 2005 BMW SUV, a 2009 Range Rover SUV, a down payment and subsequent mortgage payments on a residence in Battlefield and his wife’s extensive gambling expenses.
Honaker was employed as a salesperson at Success Leasing, Inc., an affiliated company of Prime. Honaker sold used equipment, including auxiliary power units (APUs) and used trucks that had previously been leased by Success to others. After the lease period expired and the trucks and equipment were returned to the company, Honaker was tasked with managing their sale to others.
In December 2011, Prime became aware that Honaker was engaged in illegal activity when they discovered that he was not reporting cash payments for APUs that he sold for Prime. A further audit of Honaker’s activities at Prime revealed that he was also receiving payments for unauthorized “finder’s fees,” “inspection fees,” or “deposits” on trucks owned by Prime that he sold. Honaker charged several of Prime’s largest clients a fee for “finding,” “inspecting,” or “holding” trucks for them. These payments, which Honaker never reported to his employer, typically amounted to $500 or $1,000 per truck, depending on the age or condition of each truck.
Honaker created a shell company, T&H Consulting, LLC, in January 2011 for the purpose of receiving these finder’s fees and deposits. Purchasers wired funds to this account, then Honaker transferred the funds to his personal bank accounts. The creation of the T&H account served to mask the nature of the transactions by creating a layer between Honaker and the purchasers.
This case was prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the U.S. Secret Service, IRS-Criminal Investigation and the Springfield, Mo., Police Department.
Baltimore Felon Exiled to over 8 Years in Prison for Robbery ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles Jr. sentenced Greyling Chase, age 53, of Baltimore, Maryland, today to 105 months in prison followed by three years of supervised release for conspiring to commit an armed robbery of a drug dealer.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.According to Chase’s plea agreement, in March 2013, Chase agreed with a confidential source to rob a stash house full of cocaine. Chase and the source subsequently met to plan the robbery and Chase confirmed that he would bring a gun to use during the robbery. On April 8, 2013, Chase and codefendant Rodney Ellis met with the source to commit the robbery. Chase’s vehicle was stopped and the two were arrested. Law enforcement recovered a 9mm handgun and a .32 caliber handgun from the vehicle.
Chase subsequently agreed to be interviewed by law enforcement and admitted that he planned to participate in the robbery of a drug dealer and that he had obtained a gun to use in the robbery.
Rodney Ellis, of Baltimore, pleaded guilty to his role in the conspiracy and was sentenced to 97 months in prison on June 17, 2014.
United States Attorney Rod J. Rosenstein commended the ATF, DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted the case.
Baltimore Armed Robber Admits to Robbing and Attempting to Rob Three Stores and Two Customers in One DayRead the Press Release
Items From Two Robberies Committed Two Days Earlier Were Found in Defendant’s Home
Baltimore, Maryland – Thomas Mims, age 53, of Baltimore, pleaded guilty today to robbery and using a firearm during a robbery.The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Baltimore City State’s Attorney Gregg L. Bernstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement, on February 3, 2014, Mims walked into a Rite-Aid on Belair Road in Baltimore, gestured towards his waistband to suggest that he was armed and demanded money from the cashier. The cashier ran away. After first trying to run after her, Mims ran from the store and drove away.
Later that day, Mims walked into Foreman Mills, a retail store also on Belair Road, and demanded money from an employee who was holding a cash register drawer at the customer service desk. Mims lifted his shirt to display the butt of a handgun. The employee ran away with the drawer into a back office. Mims then approached a cashier and demanded money from her register. The cashier saw Mims holding the gun in his hand. Mims also demanded that a customer give him her purse. When the customer’s fiancé intervened by pushing Mims away, Mims pointed the gun at the customer and pulled the trigger. The gun did not fire.
Mims left the store and pointed his gun at another customer in the parking lot, demanding her purse. When that customer did not immediately comply, Mims snatched her purse, ran to his vehicle and drove away.
Later that day, Mims entered the Rainbow Shop on Erdman Avenue in Baltimore and displayed his gun, demanding money from the cashier. The cashier gave him $400 from the register. Mims demanded more money and when the cashier said there was none, Mims put his finger on the trigger of the gun and told the cashier she better not have lied to him. Mims then fled and drove away.
Witnesses called 911. Baltimore police officers soon located a vehicle that matched descriptions provided by witnesses. When officers pursued the vehicle, it sped off and led officers on a high speed chase. Police trapped Mims’ vehicle in a cul-de-sac and as officers approached on foot, Mims sped toward them in his car. As a result, one officer shot Mims in the arm. Several minutes later the chase ended and Mims was arrested.
Police executed a search warrant at Mims’ house and car. They seized a loaded handgun, two ski masks, and clothing worn by the suspect in an earlier robbery at a Subway restaurant two days earlier on February 1, 2014, along with items stolen from an earlier robbery at Walgreens, also on February 1.
Mims faces a mandatory minimum sentence of seven years consecutive to any other sentence imposed, and a maximum sentence of life for using a firearm during a robbery; and a maximum sentence of 20 years in prison for the robbery. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for December 16, 201, at 1:00 p.m.
United States Attorney Rod J. Rosenstein commended the Baltimore City State’s Attorney’s Office, FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer and Special Assistant United States Attorney Piper F. McKeithen, a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who is prosecuting the case.
Aurora Return Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
DENVER – Keith G. Smith, age 54, of Aurora, Colorado, pled guilty yesterday before U.S. District Court Judge Raymond P. Moore for filing and assisting in preparing false tax returns, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Judge Moore is scheduled to sentence Smith on December 9, 2014. Smith was indicted by a federal grand jury in Denver on March 11, 2014.
According to information contained in the indictment and plea agreement, beginning in 1987 Smith operated a tax return preparation business. He told some of his clients that he formerly worked for the IRS and conducted audits, seized assets, and carried a weapon. When in fact, for about four years Smith worked in an administrative positon at the IRS; he was not a criminal investigator, he did not conduct audits, and he did not seize assets. In 2000, the IRS assessed Smith a civil penalty because of underreported tax liabilities on returns that he had prepared for clients. Smith thereafter continued to prepare clients' returns but no longer signed them as preparer, instead indicating on the returns that they were prepared by the taxpayers.
Among the returns that Smith prepared for the years 2006 through 2010 were 40 false tax returns requesting refunds, in amounts ranging from $715 to $7,124, all of which the IRS paid. Many of the returns falsely claimed deductions for medical and dental expenses, home mortgage interest payments, education expenses, and charitable contributions. The false statements on the 40 returns resulted in a total tax loss of $138,148. In addition, Smith falsified his personal income tax returns for years 2008 and 2009.
On December 8, 2011, two IRS special agents interviewed Smith at his residence in Aurora and the agents informed Smith that he was under investigation for preparing false returns for clients and for his own returns. Smith acknowledged that he had been preparing returns for clients since his IRS employment ended and he admitted that he falsified clients' returns. Smith said he falsified Schedules C and misstated other items on clients' returns. "I'm ready to bite the bullet," he said. "I did it. It's done. I'm guilty."
Each of the charges to which Smith pled guilty, one count of aiding and assisting in the preparation of a false tax return and one count of filing a false tax return, carries a penalty of not more than 3 years in federal prison and a fine of up to $100,000.
This case was investigated by Internal Revenue Service – Criminal Investigation.
Augusta Man Sentenced for Repackaging Pesticide and Making A False Statement to Federal AgentsRead the Press Release
Augusta, GA: Zong Geng Chen, 47, of Augusta, Georgia was sentenced last week by U. S. District Court Judge J. Randal Hall to 5 months in prison followed by 5 months of home confinement and 3 years of supervised release for illegally repackaging pesticides to distribute to restaurants across the country and for making a false statement to federal agents.
According to the evidence presented during the guilty plea and sentencing hearings, the United States Environmental Protection Agency (“EPA”) was referred to investigate Chen and his company, Chen and Friends Pest Solutions, later renamed C&Z Pest Solutions, after state investigators discovered repackaged pesticide inside a restaurant in Missouri that Chen had distributed. In December, 2012, after an EPA investigation, Chen entered into a Consent Order and Final Agreement with the EPA where he agreed to cease repackaging pesticide and pay a fine of $9,433.01 for previous violations. In late 2013, investigators with the EPA received information that additional repackaged insecticide was recovered in restaurants in Indiana and Missouri. An investigation showed that these bottles of repackaged pesticide could be traced back to Chen and were distributed after Chen agreed to cease repackaging. As part of the labeling on his repackaged pesticide, Chen warned not to show the pesticide to the “health department.”
Thereafter, Special Agents with the EPA conducted a covert conversation with Chen, during which the agents posed as perspective customers and Chen stated that he was allowed to sell pesticide. A few days later, EPA Special Agents held another conversation where they identified themselves and questioned Chen about his repackaging pesticides and his compliance with the Consent Order and Final Agreement. At that time, Chen falsely assured agents that he was not repackaging pesticides again because he knew it was wrong.
“If pesticides are not handled safely and as directed there can be severe, even fatal, consequences,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in Georgia. “Last week’s sentencing demonstrates EPA’s commitment to implementing pesticide regulations to protect public health. EPA and its partner agencies will prosecute those who break the law in order to make a profit.”
United States Attorney Edward J. Tarver said, “In this case, the defendant was repacking and distributing pesticides to restaurants, thereby putting patrons in harm’s way. This Office will continue to assist its partner agencies in investigating and prosecuting those who put the safety of our communities at risk.”
EPA Special Agents Chuck Carfagno, Mike Sparks, and Kimmy Poon conducted the investigation which led to the information and plea. Assistant United States Attorney C. Troy Clark is the prosecutor in this case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Arizona Woman Pleads Guilty to Federal Assault Charge in New MexicoRead the Press Release
ALBUQUERQUE – Maraintoinette Lynn Yazzie, 26, an enrolled member of the Navajo Nation who resides in Lukachukai, Ariz., pleaded guilty this morning to an assault with a dangerous weapon charge under a plea agreement with the U.S. Attorney’s Office.
Yazzie, 26, and her brother Antonio Yazzie, 22, also of Lukachukai, Ariz., were arrested in April 2014, on a criminal complaint alleging that they attacked a Navajo man at his home in Tohlakai, N.M., on Feb. 26, 2014. The two subsequently were indicted in May 2014, and charged with one count of assault with a dangerous weapon and two counts of robbery. According to court filings, Yazzie and her brother assaulted the victim by restraining him and striking him repeatedly in the face and head with a rock and a coffee mug. The two then allegedly robbed the victim of cash and his truck.
During today’s plea hearing, Yazzie pled guilty to Count 1 of the indictment, charging her with assault with a dangerous weapon. Yazzie admitted that she and her brother struck the victim in the head and the face with a rock and a coffee mug with the intent to do bodily harm.
Antonio Yazzie previously entered a guilty plea to Count 1 of the indictment on Sept. 9, 2014. Both siblings have been in federal custody since their arrests and remain detained pending their sentencing hearings, which have yet to be scheduled. At sentencing, each faces a statutory maximum penalty of ten years in prison.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
American from Philippines Sentenced for Abusive Sexual Contact of A MinorRead the Press Release
Rennie W. Wells, 74, most recently living in the Philippines, was sentenced on September 15, 2014, by United States District Judge Aleta Trauger, to 78 months in prison for abusive sexual contact with a minor, announced David Rivera, United States Attorney for the Middle District of Tennessee. The prison sentence will be followed by 15 years of supervised release. Wells had previously pleaded guilty to the offense on April 10, 2014.
Wells’ conviction and sentencing came after an investigation that began in September 2005, after Wells was observed fondling a four year old girl while attending a cookout on the Fort Campbell Army Base. Wells and his wife, who had been doing missionary work for a church in the Philippines, were home in the United States visiting friends and family.
Shortly after the cookout, Wells and his wife returned to the Philippines and continued their missionary work. Several years later, after learning of allegations of child abuse, Wells’ wife urged him to return to the United States to turn himself into authorities. In August 2013, Wells returned to the U.S. and surrendered to the Montgomery County Sheriff’s Department and admitted that he had engaged in abusive sexual contact in 2005 with the child at the Fort Campbell Army Base, as well as two other minor girls in another state. Since the cookout in September 2005, several other individuals have disclosed having been victims of sexual abuse perpetrated by Wells.This matter was investigated by the FBI and the Montgomery County Sheriff’s Department. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.
Albuquerque Woman Pleads Guilty to Attempted Theft from Laguna Pueblo’s Route 66 CasinoRead the Press Release
ALBUQUERQUE – Charlene Baca, 43, of Albuquerque, N.M., pleaded guilty this morning to a felony information charging her with theft from an Indian gaming establishment.
Baca was arrested on Oct. 5, 2013, on a criminal complaint charging her with threatening a cashier and attempting to rob the Route 66 Casino located on Laguna Pueblo in Cibola County, N.M. According to the complaint, Baca told the cashier that she had a bomb in the casino and demanded money.
During today’s proceedings, Baca entered a guilty plea to a felony information and admitted that she attempted to steal money belonging to the Route 66 Casino on Oct. 5, 2013, by suggesting to the to the cashier that there was a destructive device in the Casino that would explode in seconds. Baca admitted suggesting to the cashier that she could remotely deploy the bomb if the cashier did not give her money. Baca was arrested by officers of the Pueblo of Laguna Trial Police Department shortly thereafter.
Baca remains on conditions of release at a half-way house pending her sentencing hearing, which has yet to be scheduled. Under the terms of her plea agreement, Baca will be sentenced to time served followed by three years of supervised release.This case was investigated by the Albuquerque office of the FBI with assistance from the Pueblo of Laguna Pueblo Tribal Police Department, the Laguna Agency of the BIA’s Office of Justice Programs, the Bernalillo County Sheriff’s Office, the New Mexico State Police and the Albuquerque Police Department. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
14 El Paso Area Barrio Azteca Members and Associates Face Federal Racketerring Influenced Corrupt Organization (RICO) Conspiracy ChargeRead the Press Release
RICO Charge Alleges Murder, Extortion, Robbery, Assault, Drug Distribution, and Money Laundering
In El Paso, Barrio Azteca (BA) members and associates, including 41-year-old heroin supplier Rigoberto Alvarado of El Paso, are in custody charged with conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lundquist, El Paso Division.
Today, state and federal authorities arrested eight (8) El Paso residents for their roles in the RICO conspiracy. They are: 34-year-old Raul Lopez (aka Garfield); 54-year-old Manuel Minjares (aka Manny); 43-year-old Eugene Lozano (aka Gino, Polvos); 43-year-old Gabriel Aldana (aka Mookie); 35-year-old Rito Alvarez (aka Ewok); 55-year-old Jose Minjares (aka Paz); 48-year-old Ramon Sanchez (aka Magic); and, 43-year-old Jose Angel Barrios (aka Chamuco). Alvarado and five others involved in the RICO conspiracy were already in state custody prior to today. They are: 40-year-old Fernando Madrid (aka Muneco); 34-year-old Richard Espino (aka Cricket); 45-year-old Hector Bernal (aka Bouncer); 30-year-old Eddie Mendoza (aka Raskal); and, 35-year-old Barbara Rodriguez (aka Barbie). Defendants face up to life in federal prison upon conviction of the RICO conspiracy charge.
According to the RICO indictment, the Barrio Azteca, which began in the 1980’s as a violent prison gang and has expanded into a transnational criminal organization, is primarily based in West Texas; Juarez, Mexico; and throughout state and federal prisons in the U.S. and Mexico. In furtherance of the enterprise, BA members collect a street tax, also known as “cuota,” “quota,” “renta,” or “taxes.” The proceeds from the “cuota” are used to support members of the BA who are arrested, to pay for lawyers, bail bonds, fines, and any other fees associated with legal proceedings. The proceeds from the “cuota” are also used to purchase money orders, which are mailed through the United States Postal Service (USPS) to inmate accounts. The proceeds are also reinvested back into the BA enterprise activities for the purchase of assets, commodities, and other property that are related to the day-to-day function of the BA, including firearms, ammunition, and controlled substances.
The indictment alleges that since August 2010, the defendants conspired to commit racketeering acts in furtherance of criminal enterprise including murder, attempted murder, extortion, drug distribution, and money laundering. The indictment specifically alleges that on March 25, 2012, defendant Jose Angel Barrios murdered Raymundo Puga by injecting what’s referred to by BA’s as a “hotshot,” or lethal amount of heroin, which caused a heroin overdose. Other overt acts alleged in the indictment included mailing heroin to Georgia so that it could be delivered to incarcerated BA members; purchasing money orders with criminal proceeds and sending them to incarcerated BA members; heroin and cocaine sales; and, threats to individuals for not paying cuotas or theft of cuotas.
In addition to the RICO conspiracy charge, the indictment charges: Barrios with violating the VICAR statute, or Violent Crime in Aid of Racketeering, for the murder of Puga; Alvarado and Aldana with conspiracy to import heroin; Alvarado, Aldana, Sanchez, and Rodriguez with conspiracy to distribute heroin; Rodriguez with conspiracy to distribute cocaine; and, Madrid, Lopez, Lozano, Alvarado, Aldana, Espino, Alvarez, Sanchez, and Mendoza with conspiracy to commit money laundering.
“The FBI and together with our law enforcement partners will continue to investigate gang members engaged in organized criminal activity to ensure the continued safety of our community,” stated FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
“Organized crime, drug trafficking and gang activity pose an undeniable threat to the safety of all communities across the state. This extensive investigation is a great example of the successful partnership between DPS and our law enforcement colleagues in El Paso. We proudly work together around the clock to help prevent crime in this area and to take criminals off our streets,” stated Texas Department of Public Safety Commander Carey Matthews.
These charges and arrests resulted from a joint investigation conducted by the Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI), together with the Texas Department of Public Safety, El Paso Police Department Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
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.
Tuesday 16 September 2014
Wisconsin Man Charged with Child Exploitation OffensesRead the Press Release
Christopher Heath-Lowther, age 30, of Platteville, Wisconsin, has been charged with one count of transporting a minor across a state line with intent to engage in criminal sexual activity and one count of traveling across a state line for the purpose of engaging in illicit sexual conduct. The charges are contained in an Indictment filed on September 10, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, between December 2013 and February 2014, Heath-Lowther traveled across a state line for the purpose of engaging in illicit sexual conduct and transported a minor across a state line with the intent to engage in sexual activity that is illegal in Wisconsin.
If convicted, Heath-Lowther faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, a $200 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Heath-Lowther appeared for a detention hearing today in federal court in Cedar Rapids and was released to home detention with GPS monitoring. Heath-Lowther’s next appearance for trial is set for November 17, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation, the Platteville, Wisconsin, Police Department, and the Maquoketa Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-1014.
Vancouver Woman Sentenced to Four Years in Federal Prison for Transporting Minor for SexRead the Press Release
PORTLAND, Ore. — U.S. District Court Judge Robert E. Jones sentenced Laura Lambden, 60, of Vancouver, Washington, to 48 months in federal prison, for transporting a young girl from Vancouver, Washington, to Oregon City, Oregon, for the purpose of prostitution. At the sentencing hearing on Monday, September 15th, Judge Jones further ordered defendant to serve a five-year term of supervised release at the time of her release from federal prison.
Lambden pleaded guilty in June 2014 to violating the Mann Act. Lambden admitted to transporting another person from Vancouver to Oregon City in November 2012, for the purpose of prostitution, but denied knowing that the girl she transported was a minor. The customer (or, “john”) in Oregon City, was 64-year-old Ben Riggs, who has also pleaded guilty to violating the Mann Act. Riggs is scheduled to be sentenced on September 29, 2014.
“The commercial sexual exploitation of our children violates federal sex trafficking laws, whether the exploiter is male or female, pimps don’t always fit the stereotype” stated U.S. Attorney S. Amanda Marshall. “Anyone who traffics a child in the District of Oregon will be prosecuted.”
This case stemmed from a coordinated investigation by members of the Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force, including the FBI and the Vancouver Police Department. The FBI’s Child Exploitation Task Force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims. The case was prosecuted by Assistant U.S. Attorney Stacie Beckerman.
U.S. Settlement with Michigan Utility to Reduce Emissions at Its Coal-Fired Power Plants, Fund Projects to Benefit Environment and CommunitiesRead the Press Release
WASHINGTON – In a settlement with the United States, Consumers Energy, a subsidiary of CMS Energy Corporation, has agreed to install pollution control technology, continue operating existing pollution controls and comply with emission rates to reduce harmful air pollution from the company’s five coal-fired power plants located in West Olive, Essexville, Muskegon and Luna Pier, Michigan, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today. The settlement will resolve claims that the company violated the Clean Air Act by modifying their facilities in a way that caused the release of excess sulfur dioxide and nitrogen oxide.
EPA expects that the actions required by the settlement will reduce harmful emissions by 46,500 tons per year, which includes approximately 38,400 tons per year of sulfur dioxide (SO2) and 8,100 tons per year of nitrogen oxide (NOx). The company estimates that it will spend approximately $1 billion to implement the required measures. The pollution reductions will be achieved through the installation, upgrade, and operation of state-of-the-art pollution control devices designed to reduce emissions and protect public health. Consumers Energy will also take several coal-fired units offline and may repower additional coal-fired units with natural gas.
The settlement also requires that the company pay a civil penalty of $2.75 million to resolve Clean Air Act violations and spend at least $7.7 million on environmental projects to help mitigate the harmful effects of air pollution on the environment and benefit local communities.
“Today’s settlement will bring cleaner air to residents in Michigan by removing tens of thousands of tons of harmful air pollution from the atmosphere,” said Acting Assistant Attorney General Sam Hirsch of the Justice Department’s Environment and Natural Resources Division. “This agreement will render benefits to communities far into the future with pollution-reduction projects that will improve public health and help restore natural resources downwind of the plants."
“The required pollution controls and funding for mitigation projects will reduce harmful pollution in American communities,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “This case demonstrates that energy can be provided to local communities in a responsible way that significantly reduces sulfur dioxide and nitrogen oxide known to contribute to serious health concerns.”
“Michigan’s greatest assets are our natural resources,” said U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan. “This settlement will protect the health of Michigan residents and ensure clean air for future generations.”
The settlement requires that the company install pollution control technology and implement other measures to reduce sulfur dioxide, and particulate matter emissions from its five coal-fired power plants, comprising 12 operating units. Among other requirements, the company must comply with declining system-wide limits for SO2 and NOx and meet emission rates. In addition, the company must retire or refuel two units to natural gas and retire an additional five units.
SO2 and NOx, two predominant pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants are converted in the air to particulate matter that can cause severe respiratory and cardiovascular impacts, and premature death.
The settlement also requires Consumers Energy to spend at least $7.7 million on projects that will benefit the environment and local communities, including paying $500,000 to the National Park Service for the restoration of land, watersheds, vegetation and forests or combating invasive species in the Cuyahoga Valley National Park and the Sleeping Bear Dunes National Lakeshore Park.
The remaining $7.2 million will be spent on a series of mitigation projects. Potential projects include efforts to reduce vehicle emissions, install renewable energy and energy efficiency projects, replace or retrofit wood burning appliances and protect and restore ecologically significant lands in Michigan. Consumers Energy has five years to complete its selected projects.
This settlement is part of EPA’s national enforcement initiative to control harmful emissions from large sources of pollution, which includes coal-fired power plants, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from all these settlements will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.
Consumers Energy is Michigan’s second-largest electric and natural gas utility, providing electric service to more than 6 million people in the Lower Peninsula of Michigan.
The settlement was lodged with the U.S. District Court for the Eastern District of Michigan and is subject to a 30-day public comment period and final court approval. It can be viewed at www.justice.gov/enrd/Consent_Decrees.html.
More on the settlement: www2.epa.gov/enforcement/consumers-energy-clean-air-act-settlement
More information about EPA’s enforcement initiative: www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html
Two New Jersey Doctors Admit Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
31 Defendants – including 20 Doctors – Have Pleaded Guilty to Roles in Massive Scheme
NEWARK, N.J. – Two doctors with practices in Secaucus and Hawthorne, New Jersey, today admitted accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Eugene DeSimone, 60, of Eatontown, New Jersey, who practiced in Secaucus, and Douglas Bienstock, 48, of Wayne, New Jersey, who practiced in Hawthorne, each pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to one count of accepting bribes.
According to documents filed in this and related cases and statements made in court:
DeSimone admitted accepting $1,500 in cash per month between August 2010 and March 2013 in return for referring patient blood specimens to BLS. Bienstock admitted that in return for patient blood specimens referrals to BLS he was paid more than $2,500 per month under a sham service contract. BLS also paid Bienstock $100 in cash for each of a certain type of blood test that he ordered. The two doctors acknowledged generating a total of at least $1.6 million in lab business for BLS from their respective practices.
As part of their guilty pleas, DeSimone and Bienstock agreed to forfeit a combined total of $339,000.
On April 9, 2013, federal agents arrested David Nicoll, 40, of Mountain Lakes, New Jersey, Scott Nicoll, 33, of Wayne, New Jersey, a senior BLS employee and David Nicoll’s brother, and Craig Nordman, 35, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Frank Santangelo, 44, of Boonton, New Jersey. In June 2013, David and Scott Nicoll, Nordman and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo, a doctor, pleaded guilty in August 2013 to charges relating to his role in the scheme.
The bribery counts to which DeSimone and Bienstock pleaded guilty carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for Dec. 16, 2014.
Including DeSimone and Bienstock, 31 people have now pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. So far, 11 employees or associates of BLS, and 20 doctors have pleaded guilty to their roles in the bribery scheme. The investigation has recovered more than $10.2 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Defense counsel:
Eugene DeSimone: Alain Leibman Esq., Lawrenceville, N.J.Douglas Bienstock: Alan Zegas Esq., Chatham, N.J.
Desimone, Eugene Information
Bienstock, Douglas InformationTwo Bakersfield Drug Trafficking Cases SentencedRead the Press Release
FRESNO, Calif. — Two sentences for drug trafficking were handed down on Monday for cases originating in Bakersfield, United States Attorney Benjamin B. Wagner announced.
Martin Barragan, 39, of Bakersfield, was sentenced by United States District Judge Lawrence J. O'Neill to four years in prison for using an interstate facility to aid racketeering. According to court documents, from June 1, 2012, to November 30, 2012, Barragan conspired with others to cultivate and distribute more than 900 marijuana plants. Barragan used a cellphone to manage his marijuana grow operation and business.
Marco Antonio Granados, 21 of Fontana, was sentenced by United States District Judge Anthony W. Ishii to four years and one month in prison for conspiring to distribute and possess with intent to distribute over 500 grams of methamphetamine. According to court documents, on October 16, 2013, Granados and his cousin met with a confidential informant in a parking lot on Weedpatch Highway in Bakersfield to negotiate the sale of 30 pounds of methamphetamine. When Granados and his cousin showed the informant a large cardboard box filled with methamphetamine in the cargo area of their vehicle, law enforcement personnel arrested them. Officers searched the vehicle and recovered 31 individually wrapped and “food saver” sealed packages of methamphetamine.
Both cases were the product of investigations by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney prosecuted the cases.
Texan Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
SHREVEPORT, La. – A Dallas man pleaded guilty to bringing a minor to Bossier City, La., for prostitution, U.S. Attorney Stephanie A. Finley announced today.
Qualyn D. Mitchell, 31, of Dallas, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of sex trafficking of a minor. According to evidence presented at the guilty plea, law enforcement agents responded in an undercover capacity to an online advertisement for prostitution on November 21, 2013, and found a 16-year-old minor at a Bossier City hotel engaged in prostitution. Mitchell was found in an adjacent hotel room with another prostitute. Upon further investigation, it was learned that Mitchell had met the minor a few days earlier and had brought her from Dallas to Bossier City. He instructed her to give him the money she made from prostitution. Agents found $1,200 on Mitchell at the time of the arrest.
Mitchell faces 10 years to life in prison, five years to life of supervised release, and up to a $250,000 fine. Sentencing was set for January 23, 2015.The FBI-Violent Crimes Against Children Task Force, Bossier City Police Department, and the Bossier City Marshal’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case. This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Those concerned may leave tips with the FBI at tips.fbi.gov and may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
Tax Preparer Pleads Guilty to Identity TheftRead the Press Release
NORFOLK, Va. – Sherry R. Kelley, age 41, of Exmore, Va., pleaded guilty today to engaging in aggravated identity theft.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service-Criminal Investigations Washington Field Office; Clark Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and Captain Timothy A. Reibel, Virginia State Police Bureau of Criminal Investigations, made the announcement after the plea was accepted by Senior United States District Judge Robert G. Doumar.
A Norfolk federal grand jury indicted Kelley on June 18, 2014 on ten counts of aggravated identity theft and ten counts of using others' social security numbers. As a result of her guilty plea to count one of the indictment, Kelley faces a mandatory penalty of two years of incarceration when she is sentenced on January 20, 2015.
As reported in a statement of facts filed with the plea agreement, Kelley previously owned and operated four H & R Block tax franchise stores located in Belle Haven, Onley, Melfa, and Cheriton on Virginia's Eastern Shore. While overseeing the operation of these stores, Kelley gained access to and misused the identity information of approximately 20 tax clients. Unbeknownst to her clients or H & R Block, Kelley electronically applied for and obtained lines of credit from H & R Block Bank in her clients' names and forged her clients' signatures to account paperwork. Then, using debit cards issued with the approved credit lines, Kelley made thousands of dollars in purchases and ATM cash withdrawals against the fraudulently obtained accounts, before later repaying the sums taken.
This case was jointly investigated by agents with the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, and the Virginia State Police. Assistant United States Attorney Robert J. Krask is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
- Tanzanian National Guilty in Tax Fraud Scheme Involving More Than 600 Victims
Swanton Man Sentenced to Prison for Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Timothy Keevan, 49, of Swanton, Vermont, was sentenced on September 15, 2014, in United States District Court in Burlington, Vermont, to serve 48-months imprisonment and a 15-year period of supervised release following his conviction on one count of accessing child pornography with the intent to view it, in violation of 18 U.S.C. § 2252(a)(4)(B). Chief Judge Christina Reiss also ordered Keevan to pay a $100 special assessment.
According to court records and proceedings, Keevan, an operations support technician with U.S. Citizen and Immigration Service who works in the shipping and receiving warehouse in St. Albans, Vermont, used a work-issued computer to access websites that displayed images of child pornography. Keevan’s activities were discovered because his computer, like all government issued computers, was continually monitored for non-work related or other inappropriate activity. The computer was confiscated and the images of child pornography were discovered on it.
In 2011, Keevan was charged with sexual assault of a child after a child who had been a player on the Little League team Keevan was coaching in 1997 disclosed that Keevan had fondled him during a sleep-over at Keevan’s house. Keevan ultimately pleaded guilty to a misdemeanor and was placed on probation. He was on probation when he used his work computer to access with intent to view child pornography.
United States Attorney Coffin commended the efforts of the Department of Homeland Security Office of Inspector General, under the direction of Special Agent in Charge Gregory K. Null for the Northeast Region, the Vermont State Police, the United States Secret Service, and the Office of Immigration and Customs Enforcement, in the prosecution of Keevan.
The prosecution of Keevan was handled by Assistant U.S. Attorney Barbara A. Masterson. Keevan was represented by Federal Defender Michael L. Desautels.
U.S. Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
South Carolina Man Pleads Guilty to Second-Degree Murder in 22-Year-Old Murder Case-Admits Taking Part in Memorial Day Killing of Man at Hains Point-Read the Press Release
WASHINGTON – Lamont Terry, 39, formerly of Columbia, S.C., pled guilty today to a charge of second-degree murder in the slaying of a man during an attempted robbery on Memorial Day of 1992 in East Potomac Park, U.S. Attorney Ronald C. Machen Jr. announced.
Terry pled guilty on the same day that his trial was to begin in the Superior Court of the District of Columbia. The plea agreement, which is contingent upon the Court’s approval, calls for a sentence of 20 to 60 years in prison, with all but 20 years to be suspended. The Honorable Robert E. Morin scheduled sentencing for Nov. 14, 2014.
According to the government’s evidence, on May 25, 1992, Terry and several other individuals drove from Arlington, Va. to the District of Columbia, looking for someone to rob. In preparation for the robbery, Terry retrieved a sawed-off shotgun, which he brought with him. At approximately 11 p.m., Terry and his friends entered the Hains Point area of East Potomac Park in Southwest Washington. At that time, they came upon the victim, Chet Matthews, 27, who was seated in a parked vehicle on Ohio Drive.
Terry forcibly removed Mr. Matthews from the car, made him get down on his knees, and began demanding money and jewelry from him. Mr. Matthews pleaded that he had nothing and struggled to remove his rings. While his accomplices searched Mr. Matthews’s car for anything of value, Terry suddenly pulled the trigger on the sawed-off shotgun. He shot Mr. Matthews one time through his chest at close range. All of the men then fled the park. Mr. Matthews, an Army veteran who was employed as a postal carrier, was pronounced dead a short time later.
Today’s plea is the latest in a series of successful prosecutions by the U.S. Attorney’s Office of older homicide cases. Working with the Metropolitan Police Department (MPD) and other law enforcement partners, the office has a specially designated Cold Case Unit that prosecutes these older cases. In this case, new evidence was obtained that led to the filing of the murder charge against the defendant in January 2012.
Terry was arrested in Columbia, S.C., in January 2012 by a fugitive apprehension task force of the U.S. Marshals Service. He has remained in custody ever since.
In announcing the plea, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the U.S. Marshals Service in the District of South Carolina, as well as the Capital Area Regional Fugitive Task Force in Washington, D.C. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick, Debra Joyner, and Alesha Matthews Yette; Victim/Witness Security Specialists David Foster and Katina Adams-Washington; Victim/Witness Advocate Tamara Ince; and Litigation Technology Specialists Joshua Ellen, Kimberly Smith, Thomas Royal, Anisha Bhatia, and Aneela Bhatia.
Finally, he commended the work of Assistant U.S. Attorney S. Vinét Bryant, who investigated and prosecuted the case.
14-208Somerset County, N.J., Man Admits Production and Transportation of Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Watchung, New Jersey, man today admitted producing and transporting sexually explicit videos of children, U.S. Attorney Paul J. Fishman announced.
Patrick T. Deck, 54, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with two counts of transportation of child pornography.
According to documents filed in this case and statements made in court:
On Aug. 12, 2012, Deck was arrested at the Land of Make Believe amusement park in Hope, New Jersey, by the N.J. State Police for allegedly filming children, without their or their parents’ knowledge, in the men’s restroom. The following day, law enforcement officers executed a search warrant at Deck’s home in Watchung and discovered multiple videos and images containing child sexual abuse on Deck’s computers and other electronic devices.
Deck also admitted that between 1997 and 2010, he transported two minors, beginning when they were approximately 11 years old, to locations across the country, including New Jersey, New York, Pennsylvania, Colorado and Montana for the purpose of filming the minors in sexually explicit conduct. Deck produced the videos and images of child pornography and then transported those images back to his home in Watchung.
In 1988, Deck was convicted in N.J. Superior Court, Burlington County, of two counts of endangering the welfare of a child. Those convictions arose out of prior incidents where Deck photographed or filmed minors engaged in prohibited sexual acts. As a result of Deck’s prior convictions, each count of transportation of child pornography to which Deck pleaded guilty carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison and a $250,000 fine. Sentencing is currently scheduled for Jan. 12, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, the N.J. State Police, under the direction of Col. Rick Fuentes, and the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: James Wronko Esq., Somerville, New Jersey
Deck, Patrick Information
Senior Information Systems Engineer at National Law Firm Charged in Manhattan Federal Court with Insider TradingRead the Press Release
Dmitry Braverman Charged with at Least Eight Different Trades Based on Nonpublic Information About Mergers and Acquisitions Activity of the Law Firm’s Clients
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DMITRY BRAVERMAN was arrested this morning on securities fraud charges stemming from his involvement in an insider trading scheme. Specifically, BRAVERMAN traded on material nonpublic information about potential merger and acquisition activity of at least eight clients of his employer – a national, full-service law firm – resulting in profits of approximately $300,000. BRAVERMAN is expected to be presented today in San Francisco federal court before a United States Magistrate Judge.
U.S. Attorney Preet Bharara said: “As alleged, Dmitry Braverman, undeterred by the many felony convictions of others for insider trading, abused his access to nonpublic information about mergers and acquisitions for personal gain. Braverman’s charged actions are yet another example of brazen disregard for laws that are intended to keep the playing field level.”
FBI Assistant Director-in-Charge George Venizelos said: “Our message of deterrence has apparently still not been heard. Braverman used his computer prowess to snoop on deals and get inside information. He then made numerous trades with his illegal edge. Braverman finds himself under arrest and faces stiff jail time for his alleged crimes.”
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against BRAVERMAN.
According to the one-count Complaint unsealed today in Manhattan federal court:
From at least in or about September 2010 through December 2013, BRAVERMAN was engaged in an insider trading scheme. BRAVERMAN, who is a senior systems engineer at a full-service law firm (the “Law Firm”), was primarily responsible for maintaining and designing software in connection with the Law Firm’s finance function and had access to financial and billing databases. BRAVERMAN’s level of computer and database systems access of the Law Firm gave him access to information about, among other things, the Law Firm’s clients in potential merger and acquisition activity, as well information about the identities of the other parties to the potential deal.
Between about 2010 and 2011, BRAVERMAN engaged in at least four trades that were based on inside information, and tipped another person (“Individual-1”), who engaged in two of the same trades. In April 2011, however, BRAVERMAN and Individual-1 abruptly closed out the last of these trades on the same day that another employee of the Law Firm was arrested on separate insider trading charges. In November 2012, BRAVERMAN opened a new brokerage account and (again) began trading on the basis of inside information he obtained from the Law Firm. Specifically, between November 2012 and the present, BRAVERMAN engaged in at least four additional trades based on inside information. In total, BRAVERMAN made more than approximately $300,000 in profits from the trades between 2010 and the present.
BRAVERMAN, 41, was arrested this morning at his home in San Mateo, California. He is charged with one count of securities fraud. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the SEC for its assistance. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Matthew L. Schwartz and Benjamin Naftalis are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is
presumed innocent unless and until proven guilty.
U.S. v. Dmitry Braverman Complaint
Dmitry Braverman transactions chartSciencefriday, Inc. and Ira Flatow to Pay $145,531 to Resolve Allegations of Misuse of Nsf GrantRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Allison C. Lerner, Inspector General of the National Science Foundation, today announced that SCIENCEFRIDAY, INC. (“SCIENCE FRIDAY”) and IRA FLATOW, both individually and in his capacity as president of SCIENCE FRIDAY, have entered into a civil settlement agreement with the government in which SCIENCE FRIDAY and FLATOW will pay $145,531 to resolve allegations that they violated the False Claims Act and the common law in the management of a $998,554 federally-funded grant awarded to SCIENCE FRIDAY by the National Science Foundation (“NSF”) for the period between August 2009 and July 2011. SCIENCE FRIDAY, a for-profit corporation based in Stamford, sought the funds from NSF for the purpose of extending the impact of its weekly National Public Radio program to a new and younger audience through the use of cyber-space platforms and interactive tools such as Facebook and Twitter.
In addition to payment of the settlement sum, SCIENCE FRIDAY and FLATOW voluntarily agreed to exclusion from participation in federal programs, grants, and contracts, or from providing services under grants and contracts, with the U.S. government, any department or agency of the U.S. government, or any projects, grants or contracts directly funded by the U.S. for a period of one year, commencing on the effective date of the settlement agreement. SCIENCE FRIDAY and FLATOW also agreed to adhere to a five-year compliance plan, which shall be implemented upon the parties being identified in a proposal for an NSF grant as a possible recipient of NSF funds, in any capacity.
The investigation focused on allegations involving several types of mischarges to the federal grant. The grant required that SCIENCE FRIDAY comply with several administrative requirements, including in part: (1) the submission and certification of quarterly Federal Financial Reports (“FFRs”) reporting the amounts of federal grant money expended in each financial quarter; (2) the submission and certification of advances or reimbursements of grant funds each time federal money was drawn down by the company; (3) the submission of a budget(s) detailing the expected use of the grant funds; (4) the establishment of an accounting system capable of recording grant expenditures according to budget categories; (5) the preparation of adequate time and effort reports accounting for the expenditure of grant funds; and (6) compliance with federal regulations and policies applicable to all awards and grants, and with regulations and policies specific to the NSF grant.
As the result of an investigation conducted by the NSF Office of Inspector General (“OIG”), the government identified a number of alleged deficiencies in SCIENCE FRIDAY’s use of the grant funds: (1) SCIENCE FRIDAY submitted nine false FFRs to the U.S. certifying that all disbursements “have been made for the purposes and conditions…of the [Award]”; (2) SCIENCE FRIDAY submitted 19 false cash advance requests to the U.S. certifying that the requests for advance were correct; (3) SCIENCE FRIDAY maintained a time and effort system incapable of tracking the time spent working on the grant award and the amount of salary charged to the grant; and (4) SCIENCE FRIDAY inappropriately used grant money to cover unallowable and unsupported costs.
The False Claims Act provides for up to treble damages and penalties of $5,500 to $11,000 per false claim submitted to the Government.
“This settlement sends a clear message that recipients of federally-funded grants must strictly adhere to the regulations applicable to those grants,” stated U.S. Attorney Daly. “If recipients fail to do so, they risk significant consequences.”
“My office will aggressively pursue those who misuse federal grant funds intended to advance science education,” added NSF Inspector General Lerner. “I commend the U.S. Attorney’s Office for its efforts in reaching this settlement agreement.”
U.S. Attorney Daly also noted that SCIENCE FRIDAY and FLATOW cooperated with the government’s investigation.
As a result of the settlement, there will be no lawsuit filed against SCIENCE FRIDAY and FLATOW regarding the grant covered by the settlement agreement. In entering into the settlement, SCIENCE FRIDAY and FLATOW did not admit liability or wrongdoing, and the agreement indicates that the parties settled this matter to avoid the delay, uncertainty, inconvenience, and expense of litigation.
The matter was handled within the U.S. Attorney’s Office by Assistant U.S. Attorney William A. Collier and Auditor Susan N. Spiegel.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Rochester Man Pleads Guilty to Charges Involving Stolen PropertyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Brandon Meade, 27, of Rochester, NY, pleaded guilty to conspiring to transport and transfer stolen property with an aggregate value of $5000 in interstate commerce before District Court Judge Richard J. Arcara. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Scott S. Allen, Jr. and Anthony M. Bruce, who are handling the case, stated that the defendant ran East Side Gold and Car Audio, a pawn shop located at the corner of North Goodman and Clifford Avenues in Rochester. In that role, Meade assisted several other individuals, including do-defendant Rico J. Vendetti, in obtaining over $350,000 in merchandise. The merchandise was obtained through organized rings of shoplifters who stole from big box stores such as Walmart, Sears, Home Depot, JoAnn Fabrics, Tops and Wegmans. The merchandise was then allegedly sold by Vendetti on eBay for about half of its retail value.
Vendetti, along with Arlene Combs, Albert Parsons, and Donald Griffin, all of Rochester, N.Y., are charged with felony murder in the death of 78-year old Homer Marciniak during the course of a home invasion robbery at Marciniak’s home in Medina, N.Y. in July, 2010. In addition, Vendetti and Combs are charged with racketeering, which includes the murder, witness tampering and transporting stolen goods in interstate commerce. If convicted of the felony murder charge, Vendetti, Combs, Parsons and Griffin face a mandatory sentence of life in prison without parole.
According to the indictment, Vendetti, Combs, Parsons and Griffin planned and carried out a July 5, 2010 home invasion robbery at Marciniak’s Medina home. During the robbery, Marciniak’s valuable collection of collectible comic books was stolen and Marciniak was beaten. Several hours after being treated for bruises and lacerations suffered during the robbery and released from the hospital, Marciniak was readmitted to the hospital where he died of a heart attack.
Vendetti is scheduled to be tired in front of Judge Aracara in December. Charges are pending against defendants Combs, Parsons, and Griffin. 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 Indictment is the result of an investigation on the part of Special Agents from the Federal Bureau of Investigation, the New York State Police, under the direction of Major Scott Crosier, the Orleans County Sheriff’s Department, under the direction of Sheriff Scott Hess, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Medina Police Department, under the direction of Chief Jose Avila and Officers from the Rochester Police Department under the direction of Chief James Sheppard.
Sentencing is scheduled January 12, 2015 at 12:30 p.m. before Judge Arcara.Rochester Man Indicted on Charges of Attempting to Provide Material Support to ISIS, Attempting to Kill U.S. Soldiers and Possession of Firearms and SilencersRead the Press Release
ROCHESTER, N.Y.— Attorney General Eric Holder, Assistant Attorney General for National Security John Carlin and U.S. Attorney William J. Hochul Jr. for the Western District of New York announced today that a federal grand jury in Rochester has returned a seven-count indictment charging Mufid A. Elfgeeh, 30, of Rochester, with three counts of attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), aka the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization. In addition, Elfgeeh is also charged with one count of attempted murder of current and former members of the United States military, one count of possessing firearms equipped with silencers in furtherance of a crime of violence, and two counts of receipt and possession of unregistered firearm silencers.
“We will remain aggressive in identifying and disrupting those who seek to provide support to ISIL and other terrorist groups that are bent on inflicting harm upon Americans,” said Attorney General Holder. “As this case shows, our agents and prosecutors are using all the investigative tools at our disposal to break up these plots before individuals can put their plans into action. We are focused on breaking up these activities on the front end, before supporters of ISIL can make good on plans to travel to the region or recruit sympathizers to this cause.”
“Disrupting and holding accountable those who seek to provide material support to foreign terrorist organizations is and shall remain a critical national security priority,” said Assistant Attorney General Carlin. “I want to thank the agents, analysts and prosecutors who are responsible for the arrest and charges in this case.”
“With today's indictment of Mufid Elfgeehr, the government demonstrates that it will use all available tools to disrupt and defeat ISIS,” said U.S. Attorney Hochul. “The case also demonstrates that by working with the community, law enforcement is able to identify those who would harm our country or our returning soldiers.”
The material support charges each carry a maximum sentence of 15 years in prison, the attempted murder charge carries a maximum sentence of 20 years in prison, the firearms possession charge carries a mandatory minimum sentence of 30 years and a maximum of life in prison, and the firearm silencer charges each carry a maximum sentence of 10 years in prison.
According to court records, Elfgeeh attempted to provide material support to ISIS in the form of personnel, namely three individuals, two of whom were cooperating with the FBI. Elfgeeh attempted to assist all three individuals in traveling to Syria to join and fight on behalf of ISIS. Elfgeeh also plotted to shoot and kill members of the United States military who had returned from Iraq. As part of the plan to kill soldiers, Elfgeeh purchased two handguns equipped with firearm silencers and ammunition from a confidential source. The handguns were made inoperable by the FBI before the confidential source gave them to Elfgeeh.
According to court documents, in 2013 and into early 2014, Elfgeeh encouraged the two confidential sources (CS-1 and CS-2) to travel overseas to engage in violent jihad. After CS-1 and CS-2 agreed to travel to Syria to join ISIS, Elfgeeh took several steps to prepare them for the trip. Elfgeeh also sent $600 to an individual in Yemen for the purpose of assisting that individual in traveling from Yemen to Syria for the purpose of joining and fighting on behalf of ISIS.
Court documents also indicate that Elfgeeh first discussed the idea of shooting United States military members in December 2013 when he told CS-2 that he was thinking about getting a gun and ammunition, putting on a bulletproof vest, and “just go[ing] around and start shooting.” In February 2014, Elfgeeh told CS-2 that he needed a handgun and silencer. Elfgeeh later gave CS-2 $1,050 in cash to purchase two handguns equipped with silencers and ammunition. On May 31, 2014, CS-2 delivered the two handguns equipped with silencers and ammunition to Elfgeeh. After Elfgeeh took possession of the items, he was arrested by members of the Rochester Joint Terrorism Task Force. Elfgeeh is currently being held in custody.
The indictment is the result of an investigation on the part of the Rochester Joint Terrorism Task Force of the Federal Bureau of Investigation.
The defendant is being prosecuted by Assistant United States Attorneys Brett A. Harvey and Frank H. Sherman, with the assistance of Trial Attorney Steven P. Ward of the National Security Division’s Counterterrorism Section.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
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