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30 October 2014
U.S. Attorney Ferrer Announces District Election Officer in Connection with the Justice Department’s Nationwide Election Day ProgramRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announced today that Assistant United States Attorney (AUSA) Kimberly A. Selmore, of the Miami Office, will lead the U.S. Attorney’s Office efforts in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Selmore has been appointed to serve as the District Election Officer (DEO) for the Southern District of Florida, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Wifredo A. Ferrer said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Ferrer stated that AUSA/DEO Kimberly A. Selmore will be on duty in this District while the polls are open. AUSA Selmore can be reached by the public at (305) 961-9001.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (305) 944-9101.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Wifredo A. Ferrer added, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
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.
U.S. Attorney Appoints Contact to Handle Election ComplaintsRead the Press Release
St. Croix, USVI – United States Attorney Ronald W. Sharpe announced today that Assistant United States Attorney (AUSA) Alphonso G. Andrews, Jr. will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014 general elections. AUSA Andrews has been appointed to serve as the District Election Officer for the District of the Virgin Islands, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington, D.C.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” United States Attorney Sharpe said. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.
Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Sharpe said that Andrews will be on duty while the polls are open. He can be reached at the following telephone numbers: (340) 773-3920 ext. 24865 or (340) 344-0503.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached at (340) 718-7922 on St. Croix and at 340) 777-3363 on St. Thomas.
Complaints about possible violations of the federal voting laws can be made directly to the Civil Rights Division in Washington, D.C. as follows: by phone (800) 253-3931 or (202) 307-2767; by fax (202) 307-3961; by email [email protected], or by complaint form http://www.justice.gov/crt/complaint/votintake/index.php.
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate,” United States Attorney Sharpe said. “It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
U.S. Attorney Announces New Jersey Man Indicted for Take-Over of Government Accounts with FedexRead the Press Release
Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, announced today that Anthony Caruso, age 48, of New Jersey was indicted yesterday by a federal grand jury sitting in the Western District of Tennessee, on charges of wire fraud, conspiracy to commit wire fraud and access device fraud.
According to the 26-count indictment, Anthony Caruso was a former employee of Federal Express Corporation (FedEx) and the president and CEO of CSA Group. CSA is a New Jersey based distribution management company that negotiates shipping discounts on behalf of its customers. FedEx, the global courier and delivery service, is headquartered in Memphis, Tennessee.
The indictment states that it is the practice of FedEx to establish for its large customers what is known as a “national account.” Each national account could have sub-accounts, each with their own number so long as those sub-accounts were linked to the business holding the national account. It is also the practice of FedEx to negotiate shipping discounts for some customers who meet certain criteria. If a national account received a discount, all sub-accounts linked to the national account receive the same discount.
The United States Department of Defense (DOD) had a FedEx national account and distinct agencies of the DOD had sub-accounts linked to the national account.
The indictment alleges that beginning in November 2009 and continuing until February 5, 2011, Caruso obtained the DOD’s national FedEx account number and its sub-account numbers. Caruso then took over dormant DOD accounts at FedEx in order to access DOD’s substantial discount on shipping rates and shipped CSA customers’ goods via FedEx through the DOD account at the DOD discount rate. Caruso would allegedly charge CSA customers rates that were lower than the customers could obtain on their own, but higher than the actual cost of shipping at the DOD rate and keep the difference.
The indictment also alleges that Caruso contacted FedEx customer service agents and changed the name and billing addresses on the DOD sub-accounts so that invoices were directed to CSA Group or one of its associates.
Caruso has been charged with one count of conspiracy to commit wire fraud; 22 counts of wire fraud; and three counts of access device fraud. If convicted he faces up to 50 years in prison and a fine of up to $750,000.
This investigation was conducted by the United States Secret Service. This case is being prosecuted for the government by Assistant United States Attorney Debra Ireland.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
U.S. Attorney Announces Filing of Civil Complaint Against Local Dermatologist for Violating the Federal False Claims ActRead the Press Release
Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, announced today that a civil Complaint has been filed against Defendants Dr. George Woodbury, age 51, and his medical practice, Rheumatology & Dermatology Associates, P.C., located in Memphis, Tennessee.
The Complaint alleges that beginning in January 2008 and continuing until December 2011, Defendants engaged in various schemes to present false or fraudulent claims to Medicare for dermatological procedures. Each of these false or fraudulent claims was made by the Defendants with actual knowledge of the falsity, deliberate ignorance, or reckless disregard that fall within the meaning of the False Claims Act.
Specifically, the Complaint alleges that Defendants presented a large volume of claims to Medicare for adjacent tissue transfers or grafts that were not supported by documentation or that were medically unnecessary. In a similar scheme, Defendants presented claims for wound repairs that overstated and misrepresented the actual length of the repair. The Defendants also presented claims to Medicare that billed benign excisions as malignant; billed excisions which were not in fact excisions but instead were shavings or biopsy of tissue; and billed for unnecessary office visits. In many instances, Dr. Woodbury’s progress notes for office visits would contain cloned information from a patient’s previous visit.
The lawsuit seeks damages and penalties under the False Claims Act, 31 U.S.C. §§ 3729-3733.The False Claims Act provides the United States with a cause of action against any person who knowingly presents or causes to be presented a false or fraudulent claim for payment or approval. Damages for liability under the False Claims Act are triple the amount of actual damages suffered by the United States, plus a mandatory civil penalty of $5,500 to $11,000 for each claim. Defendants are also subject to exclusion from participation in federal health care benefit programs such as Medicare and Medicaid.
This investigation was conducted by the United States Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation. This case is being prosecuted for the government by Assistant United States Attorneys Stuart Canale, Larry Laurenzi, and David Brackstone.
The charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney Announces District Elecion OfficerRead the Press Release
United States Attorney Michael W. Cotter announced today that Assistant United States Attorney (AUSA) Victoria Francis will lead the efforts of his Office in connection with the Justice Department(s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Victoria Francis has been appointed to serve as the District Election Officer (DEO) for the District of Montana and in that capacity is responsible for overseeing the District's handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Mike Cotter said, (Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.(
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department(s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Michael W. Cotter stated that AUSA/DEO Victoria Francis will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: 406-247-4633.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at Billings, 406-248-8487, and at Helena, 406-443-3617.
Complaints about ballot access problems or discrimination can be made directly to the Civil Rights Division(s Voting Section in Washington at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Mike Cotter said, (Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.(
- Two Charged with Selling Membership in Fake Indian Tribe
Tulsa Woman Charged with Million Dollar Cancer Treatment ScamRead the Press Release
TULSA, Okla. — The operator of a cancer treatment clinic formerly located in Owasso and Broken Arrow, Oklahoma, Antonella Carpenter, 70, appeared in federal court today before United States Magistrate Judge Paul J. Cleary to face 41 counts of fraud, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. The grand jury returned the charges in a superseding indictment filed October 15, 2014. Carpenter entered a plea of not guilty to all charges.
“This prosecution demonstrates the commitment of the United States Attorney’s Office to seek justice for those most vulnerable victims of fraud who seek hope and healing after the anguish of a cancer diagnosis,” said U.S. Attorney Williams.
The superseding indictment alleges that from approximately November 2006 to December 2012, Carpenter orchestrated a scheme to obtain money from cancer patients by means of false and fraudulent representations. Carpenter claimed to be able to cure various kinds of cancer by using lasers to heat cancerous tissue injected with a mixture of saline solution and dye composed of either ordinary food dye or walnut hull extract. Carpenter called her treatment method “Light Induced Enhanced Selective Hyperthemia” or “LIESH.” The superseding indictment alleges that Carpenter made materially false claims to patients about LIESH, including that the treatments were 100% effective on any type of tissue and that they had absolutely no negative side effects. Carpenter, who is not a medical doctor, operated her clinic under the name “Lase Med.”
Counts 1 through 5 of the superseding indictment allege that Carpenter induced persons to travel in interstate commerce in an effort to defraud them of at least $5,000. Counts 6 through 39 allege that Carpenter used interstate wire communications to defraud patients. Counts 40 and 41 allege that Carpenter used the United States mails in furtherance of her fraudulent scheme.
Carpenter faces up to 10 years of imprisonment on Counts 1 through 5, and up to 20 years of imprisonment on the remaining counts, in addition to other penalties, including a forfeiture judgment in the amount of at least $1,102,160 representing proceeds obtained as a result of Carpenter’s fraudulent scheme.
The case has been investigated by the U.S. Food & Drug Administration–Office of Criminal Investigations, and is being prosecuted by Assistant U.S. Attorneys Kevin C. Leitch, Clemon Ashley and Catherine Depew.
Carpenter is a resident of Tulsa, Oklahoma. The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Antonella Carpenter
Toledo-area Men Sentenced to Prison for $24 Million Fraud Involving Iraqi CurrencyRead the Press Release
Two men from the Toledo area were sentenced to prison for their roles in the operation of a $24 million fraud scheme involving the sale of Iraqi dinar currency and non-existent hedge funds, and falsely representing that a member of their organization was a decorated Marine who was wounded in combat, announced Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of IRS Criminal Investigation, Cincinnati Field Office.
Bradford L. Huebner, 67, of Ottawa Hills, Ohio, was sentenced to 87 months in prison while Charles N. Emmenecker, 67, of Sylvania, Ohio, was sentenced to 33 months in prison.
The men were convicted of conspiracy to commit wire fraud and wire fraud following a two-week trial in May in U.S. District Court in Toledo. Huebner was also convicted on 40 additional counts of money laundering and structuring.
Rudolph M. Coenen, 47, of Jacksonville, Florida, previously pleaded guilty to crimes related to his role in the conspiracy. He was sentenced last month to more than five years in prison.
Michael L. Teadt, 68, of Maumee, Ohio, was convicted on one count of mail fraud. He was sentenced to two years of probation and ordered to pay $5,767 in restitution.
Investors lost approximately $23.8 million from dinar sales and more than $700,000 from the sale of non-existent hedge fund “seats” and “placements” as a result of the defendants’ conduct, according to court documents and trial testimony.
“The trial evidence showed that these defendants swindled many people out of their hard-earned money with grandiose fraud claims and offensive lies,” said U.S. Attorney Dettelbach. “From misrepresenting U.S. and global fiscal realities to lying about a defendant's military record, these defendants' conduct not only broke the law, but offended basic concepts of decency.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Special Agent in Charge Enstrom. “Today’s verdict reinforces our commitment to every taxpayer that we will identify and prosecute those who promote illegal financial transactions.”
Beginning about August 2010, Huebner, Coenen, and Emmenecker conspired to operate the “BH Group” in Toledo and “Bayshore Capital Investments” in Jacksonville in order to defraud investors through investments in the Iraqi dinar currency and two non-existent hedge funds.
The conspirators promoted the dinar and non-existent hedge funds through the dissemination of a series of material falsehoods conveyed primarily through weekly interstate conference calls and through the conspirators’ web site, according to court documents and trial testimony.
False claims included statements about the U.S. Treasury Department’s holdings of dinar and involvement in the Iraqi dinar investment market, according to court documents.
Additional material false statements made by the defendants include, but are not limited to, the portrayal of Coenen as a former vice president at JP Morgan Chase and a former Marine who was awarded the Purple Heart after being wounded in Iraq during Operation Desert Storm.
Coenen worked for JP Morgan Chase for one day as an account executive/loan officer. He never served in the first Gulf War, was never wounded in combat and never received a Purple Heart, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Gene Crawford and Matthew W. Shepherd following an investigation by the Internal Revenue Service – Criminal Investigation.
Three Louisiana Residents Sentenced for Federal Lacey Act ViolationsRead the Press Release
GULFPORT, Miss. – Ronald W. Reine, 67, Brian R. Reine, 44, Bruce A. Swilley Jr., 27, and Omni Pinnacle, LLC, all of Slidell, Louisiana, were sentenced in federal court today on violations of the Lacey Act for importing white-tailed deer into Mississippi, announced U.S. Attorney Gregory K. Davis, Special Agent in Charge Luis Santiago of the U.S. Fish and Wildlife Service and Director of Investigations Robert T. Oliveri with the Mississippi Department of Wildlife, Fisheries and Parks.
Brian Reine, who previously pled guilty to the felony offense of importing white-tailed deer, was sentenced to nine months in the custody of the Bureau of Prisons and two years of supervised release. His father, Ronald Reine, who previously pled guilty to the misdemeanor offense of importing white-tailed deer, was sentenced to three years of probation, six months home confinement and a $10,000 fine. Bruce Swilley, who previously pled guilty to the misdemeanor offense of importing white-tailed deer, was sentenced to three years of probation, nine months home confinement and a $10,000 fine. Their closely held corporation, Omni Pinnacle, LLC, pled guilty to a felony and was sentenced to five years of probation.
All defendants were ordered to pay restitution to the Mississippi Department of Wildlife, Fisheries, and Parks in the amount of $1.5 million. Each defendant forfeited all interest in the white-tailed deer, a truck and breeding facility.
In the latter part of 2012, the U. S. Fish and Wildlife Service and the Mississippi Department of Wildlife, Fisheries and Parks initiated an investigation into the illegal importation of live white-tailed deer into the state of Mississippi. Omni Pinnacle, a corporation based in Slidell, Louisiana, along with Brian Reine, Ronald Reine and Bruce Swilley, Jr., all residents of Slidell, conspired to import the white-tailed deer onto their property in Lamar County and Pearl River County, Mississippi. From 2009-2012, at least nine shipments of white-tailed deer, with a value exceeding $100,000, were released onto their property known as Half Moon Ranch and Hunter’s Bluff.
Importing live white-tailed deer and falsifying records is a violation of state and federal law. Importing live white-tailed deer can introduce Chronic Wasting Disease into the native deer herds and bovine tuberculosis and bovine brucellosis into livestock. In addition, the importation of white-tailed deer represents a great danger to Mississippi’s hunting heritage and to the $900 million economic benefit white-tailed deer provide to the state.
“The Department of Justice is committed to enforcing the Lacey Act and other federal laws to protect our wildlife resources,” said U.S. Attorney Gregory K. Davis. “This office will continue to work closely with the U.S. Fish and Wildlife Service and Mississippi Department of Wildlife, Fisheries and Parks to enforce the Lacey Act. It is my hope that the $1.5 Million payment in restitution will help mitigate any damage done by these defendants and send a strong message that the illegal importation of white tail deer into our State will not be tolerated.”
United States Fish and Wildlife Service Special Agent in Charge Luis Santiago stated, “We take our mission working with the Mississippi Department of Wildlife, Fisheries, and Parks and the citizens of Mississippi in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously. We will continue working vigorously investigating those who choose to violate state and federal laws.”
Mississippi Department of Wildlife, Fisheries and Parks Director of Investigations Robert T. Oliveri commented, “The importation of white-tailed deer into Mississippi is a violation of both state and federal law and that this sentence should act as a deterrent to others who might consider importing white-tailed deer into the state.”
This case was prosecuted by Deputy Criminal Division Chief Darren LaMarca.
Three Indicted in Stolen Identity Refund Fraud RingRead the Press Release
Tamaica Hoskins and Roberta Pyatt, of Phenix City, Alabama, and Lashelia Alexander, of Columbus, Georgia, were indicted for their roles in a stolen identity refund fraud (SIRF) conspiracy, Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of the indictment.
According to the indictment, in 2014, Hoskins and Pyatt obtained stolen identities and used those identities to file more than 1,000 federal income tax returns that claimed more than $4 million in tax refunds. In order to carry out their fraud scheme, Hoskins and Pyatt opened up bank accounts in order to receive tax preparation fees. In addition, Hoskins and Pyatt printed out fraudulent tax refunds using check stock provided by the financial institutions. Hoskins, Pyatt and Alexander caused the fraudulent checks to be cashed at several businesses and banks.
If convicted, the defendants face a statutory maximum potential sentence of 20 years in prison for the conspiracy to commit wire fraud count and for each wire fraud count, a statutory maximum sentence of 10 years in prison for each theft of public money count and a mandatory two-year sentence in prison for the aggravated identity theft counts. The defendants are also subject to fines, forfeiture and mandatory restitution, if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation. Trial Attorneys Michael Boteler and Gregory Bailey of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama are prosecuting the case.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
- Three Ft. Hood Soldiers Plead Guilty to Alien Smuggling
Swedish Hospital Agrees to Settle Claim that it Failed to Provide Effective Communication Services for Individuals who are Deaf or Hard of HearingRead the Press Release
The U.S. Department of Justice and Swedish Edmonds Hospital have entered into a settlement agreement to remedy alleged violations of the Americans with Disabilities Act (“ADA”), announced Acting United States Attorney Annette L. Hayes. The U.S. Attorney’s Office for the Western District of Washington began the investigation after a complainant, who is deaf, alleged that during an emergency room visit to the hospital for her 13-year-old son she requested a sign language interpreter, but none was provided. During the more than five hours in which her son was treated at the hospital following a severe fall, he underwent an EKG, blood draws, and stitches. Because no sign language interpreter was made available, the complainant relied upon a non-medically certified interpreter on loan from her son’s school in order to communicate with doctors and staff regarding her son’s medical treatment.
“Every parent understands the importance of being able to communicate directly with a child’s healthcare provider, especially in a hospital setting,” said Acting U.S. Attorney Annette L. Hayes. “This resolution demonstrates our unwavering commitment to protect the rights of those who are deaf or hard of hearing and to ensure that they too are able to communicate with health care professionals.”
Under the settlement reached October 10, 2014, the hospital admits no law violation, wrongdoing or misconduct but agreed to: (1) adopt policies and procedures that ensure that individuals who are deaf or hard of hearing receive auxiliary aids and/or services (including sign language interpreters when necessary) that insure effective communication; (2) train its staff on the ADA’s effective communication requirements; and (3) pay $3,000 to the complainant.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against disabled individuals by health care providers, including hospitals. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on this critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, at www.ada.gov/hospcombr.htm. For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed by email to [email protected].
This matter was handled by Assistant United States Attorney Christina Fogg.
Springfield Man Sentenced for Bankruptcy FraudRead the Press Release
Springfield, Ill. – A Springfield, Ill., man, Michael A. Carr, 51, of St. James Court, has been ordered to serve 10 months in federal prison for concealing assets and making false statements related to bankruptcy proceedings, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. At sentencing, on Oct. 27, 2014, U.S. District Judge Sue E. Myerscough further ordered that Carr pay $7,750 in restitution and remain on supervised release for three years following completion of his prison sentence. Carr was ordered to self-report to the federal Bureau of Prisons as directed by the U.S. Marshals Service.
On Sept. 23, 2013, Carr pled guilty to filing a bankruptcy petition that concealed property and included false statements to discharge his debts under Chapter 7 of the U.S. Bankruptcy Code. Carr admitted that when he filed the petition, in June 2010, he concealed ownership of a motorcycle, sport utility vehicle, four all-terrain vehicles, and a pending insurance claim arising from the theft of a 1995 Harley-Davidson Softail motorcycle.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the Central District of Illinois Bankruptcy Fraud Working Group. The charges were investigated by the FBI and the U.S. Postal Inspection Service. Assistant U.S. Attorney Gregory K. Harris prosecuted the case.
“Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system and undermines public confidence in that system,” stated Nancy J. Gargula, U.S. Trustee for Central Illinois, Southern Illinois and Indiana (Region 10). “I am grateful to U.S. Attorney Lewis and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
# # # #Six Sentenced to Prison on Cocaine and Crack Cocaine Trafficking Conspiracy ChargesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. handed down prison sentences ranging from 168 to 84 months to six defendants involved in a drug trafficking conspiracy, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The six men each pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine and crack cocaine.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Robert C. Helton of the Gastonia Police Department.
Judge Conrad sentenced Torbent Lamont Jackson, 34, of Charlotte to 168 months in prison; James Russell Coulter, 35, of Grover, N.C., to 132 months in prison; Mario Demond Floyd, 34, of Charlotte, to 120 months in prison; Larry Donnell Erby, Jr., 35, of Gastonia, N.C to 120 months in prison; Thomas Monteres Burris, 34, of Gastonia, to 87 months in prison; and Carroll Macarthur Williams, Jr., 35, of Winston-Salem, N.C. to 84 months in prison. Each defendant was also ordered to serve five years under court supervision upon release from prison.
According to filed court documents and court proceedings, from 2002 to September 2013, in Gaston and Mecklenburg Counties and elsewhere, the defendants conspired with each other and others to distribute and to possess with intent to distribute controlled substances, including dozens of kilograms of cocaine and dozens of ounces of crack cocaine with a street value in excess of $2 million. Coulter’s and Floyd’s sentences were enhanced because of their prior criminal histories and because they possessed a firearm in furtherance of the conspiracy.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The defendants are currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The case was investigated by the FBI and Gastonia PD. Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte handled the prosecution.
Sentencings for October 23 - October 30, 2014Read the Press Release
Candelario Castro-Andraca, 54, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 30, 2014, for illegal re-entry of a previously deported alien into the United States. Castro-Andraca was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Daryll Giron, 27, of Salt Lake City, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 23, 2014, for conspiracy to possess with intent to distribute, and to distribute, 500 grams of methamphetamine and for conspiracy to launder money. Giron was arrested in Salt Lake City, Utah. He received 102 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Joseph Richard Parry, 28, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 23, 2014, for being a felon in possession of a firearm. Parry was arrested in Cheyenne, Wyoming. He received 27 months imprisonment, to be followed by three years of supervised release, and was ordered a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Queens Man Arrested for Sexually Abusing Three Girls at Fort Hamilton Military BaseRead the Press Release
Federal agents arrested a Queens man earlier today on charges of coercing and enticing three minors to engage in sexual activity and sexually abusing minors. The defendant, Fausto Bonifaz, is scheduled to be arraigned later today before United States Magistrate Judge Robert M. Levy at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The arrest was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
According to a detention memorandum filed today and an indictment returned by a grand jury yesterday, the defendant sexually abused three girls, whose ages ranged from 12 to 13, at the Fort Hamilton Army Base in Brooklyn, New York. The defendant was a civilian who had been admitted to the base because he worked with a victim’s mother and had access to her house. The defendant’s actions were uncovered when, years later, one of the victims reported the abuse to a counselor. Prior to his arrest, the defendant admitted to FBI agents that he had sexually abused one of the victims and signed a written statement detailing the abuse.
“Protecting children from sexual predators is one of our highest priorities. We will not allow people such as the defendant to prey on the families of our military, and we will investigate all allegations of abuse,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation who investigated this case.
FBI Assistant Director-in-Charge Venizelos stated, “The act of sexual abuse haunts its victims long after the crime has been committed, setting them up for a life overshadowed by despair. Today’s charges underscore our commitment to protect our children -- our nation’s greatest asset -- from this type of violence carried out by predators who seek to destroy their innocence.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a minimum of ten years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorney Tiana Demas.
The Defendant:
Name: FAUSTO BONIFAZ
Age: 39
Queens, New York
Prosecutor Appointed as District Election OfficerRead the Press Release
United States Attorney Barbara L. McQuade announced today that Assistant United States Attorney (AUSA) Dawn N. Ison will lead the efforts of her Office in connection with monitoring local elections in Detroit and Hamtramck. AUSA Ison has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Michigan, and in that capacity is responsible for overseeing the District=s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney McQuade stated that AUSA/DEO Ison will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: 313-226-9567.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached at (313) 965-2323.
United States Attorney McQuade said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI or the Civil Rights Division.”
Complaints about ballot access problems or discrimination can also be made directly to the Civil Rights Division=s Voting Section in Washington by phone at 1-800-253-3931, or (202) 307-2767, by fax at (202) 307-395, by email to [email protected].Pocatello Man Indicted on Two Counts of Bank Robbery with the Use of A Dangerous WeaponRead the Press Release
Defendant Remains a Fugitive
POCATELLO - Randy Ted Jordan, 44, of Pocatello, Idaho, and formerly of Montana, was indicted on Tuesday, October 28, 2014, by the federal grand jury on two counts of bank robbery with the use of a dangerous weapon, U.S. Attorney Wendy J. Olson announced. A warrant was issued for Jordan’s arrest and authorities are actively working to locate and arrest him.
Jordan was charged with the robbery of the Idaho State University Credit Union in Chubbuck, Idaho, on July 26, 2014, and with the robbery of the Global Credit Union in Coeur d’Alene, Idaho, on October 4, 2014. He used a gun in both robberies and took cash from bank tellers.
Bank robbery with the use of a gun is punishable by up to 25 years in prison, a $250,000 fine and three years of supervised release.
Jordan was separately indicted on September 24, 2014, in the District of Utah for one count of bank robbery with the use of a dangerous weapon for the robbery of the Bank of Utah in Ogden, Utah, on August 7, 2014.
The cases were investigated by the Chubbuck Police Department, the Coeur d’Alene Police Department, and the Federal Bureau of Investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Pittsburg Resident Charged in Tax Fraud SchemeRead the Press Release
San Francisco – Ebony Standifer, was charged with conspiracy to file false claims, wire fraud, and aggravated identity theft, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
According to the indictment, between May 2010 and February 2012, Standifer and others conspired to defraud the IRS by obtaining false and fraudulent refunds. As part of the scheme, Standifer procured the names and Social Security numbers of others and used that information to file false federal income tax returns. The returns falsely claimed that the people listed on the returns earned wages in amounts specified on fictitious Forms W-2 that were filed with the tax returns. The fraudulent refunds were transmitted into bank accounts or onto debit cards. In some instances, Standifer agreed to pay co-conspirators who supplied the identities used in the scheme.
Standifer, of Pittsburg, was arrested this morning and made her initial appearance before the Honorable Elizabeth D. Laporte, United States Magistrate Court Judge. Standifer is scheduled to appear before the Honorable Charles R. Breyer, United States District Court Judge, on Nov. 5, 2014.
The maximum statutory penalty for conspiracy to file false claim, in violation of 18 U.S.C. § 286, is ten years in prison and a fine of $250,000. The maximum penalty for wire fraud, in violation of Title 18, U.S.C § 1343, is 20 years in prison and a fine of $250,000. The maximum penalty for aggravated identity theft, in violation of Title 18, U.S.C. § 1028A, is a mandatory consecutive sentence of two years in prison, and a fine of $250,000 plus restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant US Attorney Thomas Newman is prosecuting the case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Please note that an indictment contains only allegations. As with all defendants, Ebony Standifer must be presumed innocent unless and until she is proven guilty.
(Standifer indictment )
Oklahoma Dental Clinics Pay over $5 Million to Settle Allegations of False Medicaid Claims for Dental Restoration ProcedureRead the Press Release
Oklahoma City, Oklahoma -- Sanford C. Coats, United States Attorney for the Western District of Oklahoma and E. Scott Pruitt, Attorney General for the State of Oklahoma, jointly announce that OCEAN DENTAL, P.C, has agreed to pay $5,050,000 to settle civil claims stemming from allegations that it violated the False Claims Act by submitting false Medicaid claims for work that was either never performed or billed at a higher rate than allowed.
"We continually strive to protect government programs, such as Medicaid, from fraud and abuse by ensuring they are used properly and only by those who are in need and are eligible," said U.S. Attorney Sanford C. Coats. "This case is a good example of the value of coordination between state and federal law enforcement, as well as the coordinated use of parallel proceedings, to achieve a successful civil and criminal resolution."
"Preventing fraud is a priority at the Attorney General's Office because fraud limits the ability of those truly deserving of assistance from receiving the help for which they are eligible," said Attorney General Scott Pruitt. "We appreciate partnering with the U.S. Attorney's Office in order to hold accountable those who would perpetrate fraud against the taxpayers."
Ocean Dental operates dental clinics throughout Oklahoma. As part of its practice, Ocean Dental provides dental services to patients, including children, covered by the Oklahoma Medicaid program.
The United States and Oklahoma contend that Ocean Dental submitted false claims for payment to the Oklahoma Medicaid program for dental restorations during the period from January 1, 2005 through September 30, 2010. Specifically, it is alleged that claims for dental restorations furnished to Medicaid beneficiaries by Ocean Dental’s then-employee Robin Lockwood, D.D.S., were false because they were either (1) upcoded by billing for more restored surfaces than were actually performed or (2) not performed at all.
To resolve the civil allegations brought by the United States and Oklahoma, Ocean Dental agreed to pay $5,050,000. Under the Settlement Agreement, Ocean Dental and Chad Hoecker, D.D.S., owner and president of Ocean Dental, are being released from civil liability related to the allegations. Ocean Dental has also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General which requires, among other things, additional record-keeping, reporting and compliance requirements.
"With this settlement, Ocean Dental has agreed to strict new reporting and compliance requirements that will help guard against billing abuses moving forward," said Winston Whittington, Assistant Special Agent in Charge of the OIG’s Dallas office. "Those who perpetrate fraud threaten the health of both the program and the people who depend on it for their care. We will continue to actively pursue these investigations."
In reaching this settlement, Ocean Dental did not admit liability and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
In a separate related criminal case, Dr. Lockwood pled guilty in July of 2012 to committing health care fraud for her role while employed at Ocean Dental. In November of 2012, Dr. Lockwood was sentenced to serve 18 months in federal prison and ordered to pay $375,672.27 in restitution to Medicaid.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, the Oklahoma Attorney General’s Office Medicaid Fraud Control Unit, and the Oklahoma Healthcare Authority. The case was prosecuted by Assistant United States Attorneys Ronald R. Gallegos and Scott Maule, and Oklahoma Assistant Attorney General Niki S. Batt.
Office on Violence Against Women Announces National Tour to Commemorate the 20th Anniversary of the Violence Against Women ActRead the Press Release
In honor of the 20th anniversary of the Violence Against Women Act, the Department of Justice today announced a nationwide tour of Office on Violence Against Women (OVW) grant recipients. The tour will engage with communities dedicated to ending violence against women though coordinated community response (CCR) teams. OVW launched the tour today with a visit to programs in Brooklyn, New York. OVW and department officials will visit diverse communities across the country through May 2015. Officials will participate in roundtable conversations with local law enforcement, victim service providers, judges, prosecutors and other members of the coordinated community response team.
This tour is an important part of the department’s ongoing effort to prevent and address violence against women. Officials will see how best practices are playing out across the nation – especially in areas such as prosecution, law enforcement, victim services, cultural competency, language access, prevention and public awareness.
“Research shows that efforts to address violence against women are particularly effective when they are combined and integrated into a coordinated community response,” said Principal Deputy Director Bea Hanson of the Office on Violence Against Women. “We know that when police departments, courts, and victim service providers work together to create multi-disciplinary response teams, the quality of victim services and justice system responses are improved, which can influence and change the way communities understand and talk about violence against women.”
Currently, OVW administers 24 grant programs, authorized by the Violence Against Women Act of 1994 and subsequent legislation, designed to develop the nation’s capacity to reduce domestic violence, dating violence, sexual assault and stalking by strengthening services to victims and holding offenders accountable. Since 1995, OVW has awarded more than $5.7 billion to address domestic violence, dating violence, sexual assault and stalking in communities across the country.
The planned national tour sites are: Brooklyn, NY; Oklahoma City, OK; Alameda County, CA; Contra Costa County, CA; Vermont; New Orleans, LA; San Diego, CA; Duluth, MN; Idaho; Maryland; Multnomah County, OR; San Francisco, CA. Additional sites and tour participants will be announced at a future date.
North Carolina Man Pleads Guilty to Attempting to Aid International Terrorist OrganizationRead the Press Release
Assistant Attorney General for National Security John Carlin, U.S. Attorney Ripley Rand for the Middle District of North Carolina and Special Agent in Charge John Strong of the FBI in North Carolina announced today that Donald Ray Morgan pleaded guilty to attempting to provide material support to a designated foreign terrorist organization and possession of firearm by a felon.
Morgan, 44, of Rowan County, North Carolina, pleaded guilty this morning before U.S. District Court Judge Thomas D. Schroeder. Morgan was charged on Oct. 30, 2014, in a bill of information with attempted provision of material support to a foreign terrorist organization. The offense is punishable by a maximum of fifteen years imprisonment and a $250,000 fine.
“Today’s plea represents our continued commitment to confronting those who attempt to travel abroad to support terrorist organizations,” said Assistant Attorney General Carlin. “Preventing individuals from joining ISIL and holding accountable those who attempt to provide material support to the terrorist organization remains one of our highest priorities.”
“Today's plea is a sad reminder that those who wish to aid foreign terrorist organizations can come from any community and from any background,” stated U.S. Attorney Rand. “We will continue to do everything we can to work effectively with our law enforcement partners and protect innocent people from terrorist activity, whether here in the United States or abroad.”
“Donald Ray Morgan proved himself to be a threat to national security,” said Special Agent in Charge Strong. “He traveled overseas with intentions to join the violent terrorist group, ISIL in Syria. American citizens who support terrorist organizations must be held accountable for their actions.”
According to court documents, Morgan knowingly attempted to provide support and resources beginning in January 2014 until on or about Aug. 2, 2014, including his own services, to al-Qa’ida in Iraq, also known as Islamic State of Iraq and the Levant (ISIL) and the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. On at least one occasion Morgan unsuccessfully attempted to travel from Lebanon to Syria to join ISIL/ISIS. Morgan also frequently used social media and an interview with an American journalist to express his support for ISIL/ISIS and violent terrorist activities.
Morgan was initially arrested on Aug. 2, 2014, at JFK International Airport in New York City on a federal indictment for possession of a firearm by a felon. The firearm offense occurred in January 2012. Possession of a firearm by a felon is punishable by a maximum of ten years imprisonment a $250,000 fine.
Sentencing is set for Feb. 18, 2015.
edThe investigation was conducted by the FBI’s Charlotte Division, and Resident Agency Joint Terrorism Task Force (JTTF). The Greensboro JTTF consists of the following agencies: FBI, Greensboro Police Department, Guilford County Sheriff’s Office, High Point Police Department and the Winston-Salem Police Department. The prosecution is being handled by Assistant U.S. Attorney Graham Green with the assistance of the Counterterrorism Section of the Justice Department’s National Security Division.
North Carolina Man Pleads Guilty to Attempting to Aid International Terrorist OrganizationRead the Press Release
GREENSBORO, N.C. – John Carlin, Assistant Attorney General for National Security, Ripley Rand, United States Attorney for the Middle District of North Carolina and John Strong, Special Agent in Charge of the FBI in North Carolina announced today that Donald Ray Morgan pleaded guilty to attempting to provide material support to a designated foreign terrorist organization and possession of firearm by a felon.
Morgan, 44, of Rowan County, North Carolina, pleaded guilty this morning before United States District Court Judge Thomas D. Schroeder. Morgan was charged on Oct. 30, 2014, in a bill of information with attempted provision of material support to a foreign terrorist organization. The offense is punishable by a maximum of fifteen years imprisonment and a $250,000 fine.
“Today’s plea represents our continued commitment to confronting those who attempt to travel abroad to support terrorist organizations,” said Carlin. “Preventing individuals from joining ISIL and holding accountable those who attempt to provide material support to the terrorist organization remains one of our highest priorities.”
"Today's plea is a sad reminder that those who wish to aid foreign terrorist organizations can come from any community and from any background," stated Rand. "We will continue to do everything we can to work effectively with our law enforcement partners and protect innocent people from terrorist activity, whether here in the United States or abroad."
"Donald Ray Morgan proved himself to be a threat to national security,” said Strong. “He traveled overseas with intentions to join the violent terrorist group, ISIL in Syria. American citizens who support terrorist organizations must be held accountable for their actions.
According to court documents, Morgan knowingly attempted to provide support and resources beginning in January 2014 until on or about Aug. 2, 2014, including his own services, to al-Qa’ida in Iraq, also known as Islamic State of Iraq and the Levant (ISIL) and the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. On at least one occasion Morgan unsuccessfully attempted to travel from Lebanon to Syria to join ISIL/ISIS. Morgan also frequently used social media and an interview with an American journalist to express his support for ISIL/ISIS and violent terrorist activities.
Morgan was initially arrested on Aug. 2, 2014, at JFK International Airport in New York City on a federal indictment for possession of a firearm by a felon. The firearm offense occurred in January 2012. Possession of a firearm by a felon is punishable by a maximum of ten years imprisonment a $250,000 fine.
Sentencing is set for Feb. 18, 2015.
The investigation was conducted by the Federal Bureau of Investigation, Charlotte Division, and Resident Agency Joint Terrorism Task Force (JTTF). The Greensboro JTTF consists of the following agencies: Federal Bureau of Investigation, Greensboro Police Department, Guilford County Sheriff’s Office, High Point Police Department and the Winston-Salem Police Department. The prosecution is being handled by Assistant United States Attorney Graham Green with the assistance of the Counterterrorism Section of the Justice Department’s National Security Division.
New York Man Guilty of Role in Extortion SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford jury has found EDWARD MEMOLI, 65, of Unadilla, N.Y., guilty of federal extortion charges.According to the evidence at trial, between approximately September 2010 and December 2011, MEMOLI conspired with Joseph Casolo of Norwalk to extort money from a small-business owner in Fairfield County by impersonating organized crime figures. Casolo threatened the victim in person, in phone conversations and in text messages using multiple personas, repeatedly stating or implying that if the victim failed to make the extortion payments, the victim, the victim’s spouse, and the victim’s daughter would be harmed with violence. Casolo enlisted the assistance of MEMOLI who identified himself as “Lorenzo,” the organized crime family’s “enforcer,” and made at least 20 threatening calls to the victim at Casolo’s direction. At the time, MEMOLI was living in Greenville, South Carolina.
MEMOLI specifically threatened to cause the business owner’s daughter, who was pregnant, to have a miscarriage.
The investigation revealed that the victim made more than $200,000 in cash payments to Casolo as a result of these threats. Casolo shared a portion of these funds with MEMOLI by sending them to him via Western Union money transfer.
Casolo and MEMOLI also targeted another Fairfield County resident for extortion. Posing as “Lorenzo,” MEMOLI called the victim both on his cellular telephone and at his place of work, and made veiled threats to the victim’s wife and two children.
Law enforcement learned of Casolo and MEMOLI only after information regarding their extortion scheme came to light on a court-authorized wiretap investigating organized crime activity in Fairfield County.
MEMOLI was found guilty today of one count of conspiracy to obstruct interstate commerce by extortion, and one count of aiding and abetting the obstruction of interstate commerce by extortion, both of which carry a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on January 20, 2015.
Casolo pleaded guilty to one count of extortion and, on October 24, 2013, he was sentenced to 57 months of imprisonment.
This matter was investigated by the FBI Fairfield County Organized Crime Task Force and the Stamford Police Department, with the assistance of the FBI’s Binghamton Field Office. The case is being prosecuted by Assistant U.S. Attorney Hal Chen and Special Assistant U.S. Attorney Charles Rombeau.
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(203) 821-3722 [email protected]New Jersey Man Sentenced to Three Months in Prison in Manhattan Federal Court for Hiding over $1 Million in Secret Swiss Bank AccountRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that VIKTOR KORDASH was sentenced today to three months in prison for willfully failing to file Reports of Foreign Bank and Financial Accounts (“FBARs”) with the IRS regarding a secret Swiss bank account that he maintained and controlled at Wegelin & Co. (“Wegelin”), a Swiss bank formerly headquartered in St. Gallen, Switzerland, which separately pled guilty in January 2013 to assisting U.S. taxpayers in maintaining undeclared accounts. During the time that KORDASH maintained his undeclared account at Wegelin, KORDASH received tens of thousands of dollars in cash distributions from his undeclared account. KORDASH pled guilty in May 2014 before U.S. District Judge Ronnie Abrams, who also imposed today’s sentence.
According to the Information filed in Manhattan federal court, other court documents, and statements made in connection with KORDASH’s guilty plea and sentencing:
In the early 1980s, KORDASH opened an account at Wegelin. At that time, KORDASH was living in Russia and was a Russian citizen. In 1984, however, KORDASH emigrated to the United States, and in 1986, KORDASH applied for and was granted citizenship in the United States. After immigrating to the United States, and after becoming a United States citizen, KORDASH continued to maintain his account at Wegelin, and failed to declare it to the IRS, up until approximately November 2010. KORDASH used the undeclared account as an operating and investment account for his antique reproductions business, which he operated out of New York, New York.
During the time period that KORDASH maintained his undeclared account at Wegelin, capital gains and losses were generated in the account from KORDASH’s investments in foreign securities. Between 2007 and 2010, the high value of KORDASH’s undeclared account was over $1.5 million. Further, between at least April 2008 and June 2010, KORDASH received a series of cash distributions from the undeclared account from Wegelin’s correspondent account in Stamford, Connecticut, which totaled over $168,000. In November 2010, KORDASH closed the undeclared account and transferred the balance to his wife. The balance of the undeclared account at the time of its closure and transfer was nearly $1 million.
For each of the calendar years from at least 1986 through 2010, Kordash failed to file an FBAR with the IRS, as he was required to do, disclosing his signatory or other authority over his undeclared account at Wegelin. He was required to identify the financial institution with which his account was held, the type of account, the account number, and the maximum value of the account during the calendar year for which the FBAR was being filed. He willfully failed to do so.
In addition to the sentence of three months in prison, KORDASH, 64, of Cliffside Park, New Jersey, was also sentenced to three years’ supervised release, and ordered to pay back taxes of over $268,000 and a civil penalty of over $750,000.
Mr. Bharara praised the outstanding efforts of IRS-CI in the investigation. Mr. Bharara also thanked U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul and Jason H. Cowley are in charge of the prosecution.
Nashville Man Indicted for Bankruptcy FraudRead the Press Release
Michael Ross Smith, 43, of Brentwood, Tenn., was indicted on October 22, 2014, by a federal grand jury in Nashville, on three counts of bankruptcy fraud, announced David Rivera, U.S. Attorney for the Middle District of Tennessee .
The indictment alleges that Smith filed for bankruptcy and then committed bankruptcy fraud by providing false testimony, under oath, during an examination conducted by the U.S. Trustee. Smith testified that he had been a temporary employee of a Nashville business and also testified that he was no longer employed by the business. According to the indictment, Smith was in fact employed by the business as the President of Sales and earned an annual base salary of $150,000. The indictment also charges Smith with fraudulently withholding documents related to his employment and financial affairs, in violation of an order issued by the Bankruptcy Court for the Middle District of Tennessee.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigation to enforce the bankruptcy laws.
If convicted, Smith faces a maximum penalty on each count of five years in prison, a fine of $250,000 and a $100 mandatory assessment fee.
This investigation was conducted by the FBI with assistance from the U.S. Trustee. The government is represented by Assistant U.S. Attorney Stephanie N. Toussaint and Special Asst. U.S. Attorney Lloyd E. Mueller.
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
Mission Woman Sentenced for Assaulting A Federal EmployeeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, woman charged with Assaulting, Resisting, or Impeding a Federal Employee pled guilty to and was sentenced on October 23, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Twila Two Strike, age 56, was sentenced to 6 months of unsupervised probation, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on April 14, 2014, when a Rosebud Sioux Tribe Realty Officer went to Two Strike’s home to investigate community complaints regarding a padlocked gate impeding cars from accessing the Blue Thunder Cemetery. While the Realty Officer was speaking with a member of the Two Strike’s family through a screen door, Two Strike approached him from outside his peripheral line of vision and threatened to physically assault him if he did not get off their land. Two Strike swung her hand toward the Realty Officer in an attempt to strike him.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Two Strike was released.
Mission Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on October 27, 2014, by U.S. Judge Roberto A. Lange.
Mark Antoine, age 23, was sentenced to 24 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Antoine was indicted for Assault with a Dangerous Weapon and Assaulting, Resisting, Opposing, and Impeding a Federal Officer by a federal grand jury on December 10, 2013. He pled guilty to Assault with a Dangerous Weapon on July 27, 2014.
On October 29, 2013, Antoine was at a home on the Rosebud Indian Reservation and got upset at his relative, the victim. Antoine assaulted the victim, including knocking her down, attempted to choke her, and he also menaced her with an object. While the victim was on the floor, he slammed an item, presumably a can, against the floor next to her head. When the victim got up, Antoine pushed her onto a couch and menaced her with a screw driver, stabbing the screw driver into the couch next to her body. Antoine also kicked the victim in the chest while wearing shoes. The victim tried to call police for help, but Antoine broke the phone.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Antoine was immediately turned over to the custody of the U.S. Marshals Service.
Miami-Dade Resident Sentenced in Treasury Check Cashing and Stolen Identity SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that Victor Diroggiero, 45, of Miami, was sentenced today to 101 months in prison, followed by three years of supervised release and ordered to pay $745,000 in restitution.
Diroggiero previously pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, from April through August 2009, Diroggiero went to Fast Cash Check Cashing, a check cashing store in North Miami, and cashed over one hundred stolen United States Department of Treasury checks. The checks were social security checks, thrift savings program checks and tax refund checks issued to different, real persons who did not authorize Diroggiero to possess the checks.
Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. The case was prosecuted by Assistant U.S. Attorneys Jonathan E. Kobrinski, Monique Botero, Kurt Lunkenheimer and Robert Watson.
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.
Manchester Man Pleads Guilty to Social Security FraudRead the Press Release
BOSTON – A Manchester man pleaded guilty today to stealing more than $160,000 in government benefits.
Charles Gerbutavich, 70, pleaded guilty before U.S. District Judge Rya W. Zobel to theft of public money. In October 2014, Gerbutavich was charged in a felony information. Sentencing is scheduled for Feb. 3, 2015.
Gerbutavich’s father died in 1993, but his monthly Social Security benefits continued to be directly deposited into a joint bank account in his and Gerbutavich’s names. From 1993 to 2014, Gerbutavich continued to receive his deceased father’s benefits totaling $161,587.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died. Since October 2013, the U.S. Attorney’s Office has prosecuted several such cases involving a total of more than $1 million in stolen government money.
In October 2014, Mary Murphy of Dorchester was sentenced to 18 months of home confinement, 10 hours per week of community service, and was ordered to pay a fine of $40,000 and $331,630 in restitution – which she paid in full in October. Murphy pleaded guilty in connection with taking her deceased mother’s Social Security and Civil Service retirement benefits, which were directly deposited into a joint bank account after her death in 1977.
Also in October 2014, Richard Oldham of Old Orchard Beach, Maine, was sentenced to four months in prison, six months of home confinement, and was ordered to pay $195,862 in restitution for endorsing Social Security checks in his deceased mother’s name following her death in 1993.
In September 2014, Frances Kenney Moseley of Boston, pleaded guilty to stealing over $220,000 in Social Security benefits, which were directly deposited into her father’s bank account after his death in 2003. Moseley is scheduled to be sentenced on Dec. 22, 2014.
In August 2014, George Bergstrom of Shrewsbury, was sentenced to one year of probation and was ordered to pay $57,948 in restitution – which he paid in full in August – for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 2009.
In October 2013, John Flaherty of Newburyport, was sentenced to 10 months in prison and was ordered to pay $168,830 in restitution for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 1993.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The Gerbutavich case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Man Sentenced to Prison for More Than 12 Years for CarjackingsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced a Charlotte man today on charges stemming from two 2012 carjackings committed in Charlotte, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Antonio Cordiara McClary, 25, of Charlotte, was sentenced to 148 months in prison, followed by three years of supervised release.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Tompkins in making today’s announcement.
According to court documents and today’s sentencing hearing:
McClary carjacked a woman on January 5, 2012, and forced her to drive to her bank and withdraw $500 from an ATM. During the carjacking, McClary pointed what appeared to be a firearm at the victim’s head. Following the forced withdrawal of money from the ATM, McClary forced the victim into the trunk of her 2010 Honda Accord while he drove around for thirty minutes. McClary later abandoned the car with the victim locked in the trunk and told her not to get out. An hour later, the victim was able to escape the trunk and call police.
On January 20, 2012, McClary confronted a second woman who was getting out of her car in her apartment parking lot and forced her back into her car with what appeared to be a firearm and a knife. McClary took the victim’s car keys and drove the woman to the bank ATM, forcing her to withdraw $500. Later, while driving from the ATM, McClary threatened to “splatter the victim’s brains all over the windshield.” Following the carjacking, McClary abandoned the victim in her car and told her not to report the carjacking to the police because he knew where she lived and said he would come back and kill her. In both incidents, what appeared to be a firearm was later determined to have been an air rifle that fired pellets. In April 2013, McClary pleaded guilty to two counts of carjacking.
In announcing the sentence, Judge Conrad stated that the offenses were a “heinous couple of carjackings that caused unfathomable terror to the victims.” Judge Conrad noted that he imposed the 148 month sentence to protect the public from further crimes of the defendant.
The defendant has been in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by ATF and CMPD. The prosecution for the government was handled by Assistant U.S. Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte.
Malheur County Armed Career Criminal Sentenced to 15 Years in Federal Prison for Possessing a Firearm and AmmunitionRead the Press Release
EUGENE, Ore. – Ramiro Martinez Tristan, 40, of Ontario, Oregon, was sentenced yesterday by U.S. District Chief Judge Ann Aiken to 15 years in federal prison for unlawful possession of a firearm and ammunition. Upon his release from prison, Tristan will be on supervised release for five years.
U.S. Attorney Amanda Marshall praised the sentence imposed on Tristan stating, “Ontario and Eastern Oregon are better places with Ramiro Tristan removed from the community. This case is the result of the excellent collaboration between the Ontario Police Department, the High Desert Drug Enforcement Task Force, Oregon State Police, the Malheur County District Attorney’s Office, ATF, and my office. Coordination between federal and state partners is key to prosecuting the most dangerous criminals and keeping our communities safe, and my office is committed to working with our local partners to achieve these results.”
On September 10, 2013, Ontario, Oregon police officers executed a search warrant at an apartment where Tristan was staying and found, among other things, a stolen .40 caliber handgun next to Tristan’s identification card. A search of recovered cell phones revealed photographs of Tristan displaying bundles of cash and holding a handgun. Officers booked Tristan into the Malheur County Jail. Officials later learned that around the time of his September 10 arrest, Tristan had secreted methamphetamine in his rectum, brought the methamphetamine into the Malheur County Jail, and distributed it to other inmates.
Tristan has a significant criminal history with prior felony convictions for multiple assaults, felon in possession of a firearm, and burglary in the second degree. Under federal law, any person who possesses a firearm or ammunition after being previously convicted of three violent felonies or felony drug trafficking crimes is an Armed Career Criminal and faces a 15-year mandatory minimum sentence.
Assistant U.S. Attorney Nathan J. Lichvarcik prosecuted this case.
Long Island Attorney Charged with Forging Signature of Bankruptcy JudgeRead the Press Release
An indictment was unsealed today in federal court in the Eastern District of New York charging Jeffrey I. Stark, Esq., with forgery of the signature of a judge of the United States Bankruptcy Court for the Eastern District of New York. Stark is alleged to have forged the signature of a judge on a purported order in a case in which he had been retained to file for bankruptcy. However, Stark never commenced any action with the bankruptcy court on behalf of his client. Stark was arrested and his initial appearance was held before United States Magistrate Judge Lindsay at the federal courthouse in Central Islip.
The charge and Stark’s arrest were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“As alleged, Stark violated his ethical obligation to his clients and committed a serious crime which strikes at the foundation of our judicial system,” stated United States Attorney Lynch. “Attorneys are expected to uphold the law, not to violate it.” Ms. Lynch extended her grateful appreciation to the FBI.
FBI Assistant Director-in-Charge Venizelos stated, “As alleged, Stark’s conduct demonstrated a lack of respect for the legal system and those who serve it. As officers of the court, attorneys are held to a higher standard and are expected to uphold the law and its ethics. The FBI is committed to investigating corrupt lawyers who commit fraudulent practices.”
If convicted, the defendant faces a maximum sentence of 5 years of imprisonment. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
JEFFREY I. STARK
Age: 51
Levittown, New York
E.D.N.Y. Docket No. 14-CR-572 (ADS)(ARL)
Local Coaches Embrace Domestic Violence AwarenessRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Throughout October, National Domestic Violence Awareness Month, the U.S. Attorney’s Office has partnered with the Wheeling YWCA to promote Coaching Boys into Men, a coach-to-athlete training program designed to promote domestic violence awareness and healthy relationships, United States Attorney William J. Ihlenfeld, II, announced today.
The Coaching Boys into Men program, administered by Futures Without Violence, provides high school athletic coaches with resources to promote respectful behavior among their players and help prevent relationship abuse, harassment, and sexual assault. The program was launched in 2001 as a national public service announcement campaign in partnership with the Advertising Council.
“This is a critical message for student athletes and all young adults in our community,” stated Ihlenfeld. “Young people represent the future of our economy and learning to build healthy relationships is vital for a thriving community and workforce. Student athletes, in particular, are expected to play aggressively and win games. This program stresses the importance of tempering that aggression and promoting respect both on and off the field. We thank the football coaches at Wheeling Central Catholic High School, Brooke High School, and Wheeling Park High School for allowing us to speak with the teams and kick off this initiative. We look forward to introducing additional programing in the coming months.”
“We need to end the cycle of domestic violence,” said Patricia Flanigan, Family Violence Prevention Program Director for the Wheeling YWCA. “During a recent meeting of the Ohio Valley Athletic Conference, I met with local athletic directors and we are thrilled that many of them are embracing the opportunity to play hard and win games while developing their players into compassionate, respectful men. John Marshall High School has committed to implement the program and we look forward to collaborating with other local schools to foster this important message.”
Anyone interested in additional information on Coaching Boys into Men is encouraged to visit www.coachescorner.org.
Laurel Woman Admits to Stealing Almost $300,000 in Social Security Benefit Checks over A 17 Year PeriodRead the Press Release
In Unrelated Case, Baltimore Man Admits Stealing $127,000 in SSA Benefits Over 16 Years
Greenbelt, Maryland –Yvonne Isadora Whiteman, age 69, of Laurel, Maryland pleaded guilty today to theft of government property.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division.According to her plea agreement, Whiteman’s mother received monthly social security retirement benefits based on her earnings record. Whiteman’s mother moved to Trinidad, West Indies in the summer of 1997 to live with Whiteman’s sister, and died there on October 8, 1997. Her death was not reported to SSA.
At the time of her mother’s death, the benefits were paid by direct deposit to a joint bank account held by Whiteman and her mother. Whiteman sent the benefits to her sister in Trinidad during the short period her mother was alive and living there.
In 2013, SSA determined that because Whiteman’s mother had not used Medicare services, the mother was likely deceased. On December 13, 2013, Whiteman met with a SSA specialist and provided a forged death certificate purporting to show that her mother died on October 8, 2013. When the SSA specialist later advised Whiteman that she would use the consular process to obtain the true death certificate, Whiteman admitted that she had lied about her mother’s date of death.
SSA paid a total of $299,951 from October 8, 1997 until October 2013 when the benefits were terminated. At the time the benefits were terminated, the mother’s monthly benefit amount was $1,847. Whiteman used all but approximately $4,000 of her mother’s benefits to pay for her own personal expenses.
Whiteman faces a maximum sentence of 10 years in prison. Whiteman has agreed to pay restitution of $299,951. U.S. District Judge Deborah K. Chasanow scheduled sentencing for February 2, 2015, at 11:30 a.m.
In an unrelated case, Allen Thomas Wilson, age 72, of Baltimore, pleaded guilty today in U.S. District Court in Baltimore, to theft of government property in connection with a similar scheme in which he spent retirement benefits paid by SSA for the benefit of his mother for his personal use. From the time of his mother’s death on September 19, 1997, until January 2014, when benefits were terminated, SSA paid a total of $127,700. Wilson has agreed to pay restitution in this amount. U.S. District Judge Ellen L. Hollander has scheduled sentencing for December 19, 2014, at 9:15 a.m.
United States Attorney Rod J. Rosenstein praised the Social Security Administration - OIG for its work in the investigations, and thanked Special Assistant U.S. Attorney Paul K. Nitze, assigned from the Social Security Administration, who is prosecuting these cases.
Lake Charles Woman Sentenced to 14 Months in Prison for Stealing more than $250,000 from EmployerRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that a Lake Charles woman was sentenced to 14 months in prison for stealing more than a quarter of a million dollars from her employer.
Kristen Brady, 47, of Lake Charles, was sentenced by U.S. District Judge Patricia Minaldi for one count of bank fraud. She was also sentenced to complete 50 hours of community service and ordered to pay $255,324.04 in restitution. According to the evidence presented at the July 24, 2014 guilty plea, Brady worked for a Lake Charles rental company as a bookkeeper for 12 years before her employment was terminated in November 2013. It was later discovered that she had forged authorizing signatures on more than 200 checks to her benefit in the company’s name, and in the process, received $255,324.04 of which she was not entitled.
The U.S. Secret Service and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.
Kittery Man Sentenced for Structuring and Illegally Purchasing LobstersRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that John
W. Price, 59, of Kittery, Maine, was sentenced yesterday in U.S. District Court by Judge D.
Brock Hornby to 45 days in prison for structuring currency transactions and for illegally purchasing lobsters. Price was also fined $100,000.Court records reveal that between 2008 and 2010, Price, the owner of J.P.’s Shellfish, a seafood distributor in Eliot, Maine, purchased lobsters for cash from a dock employee of the
Spruce Head Fisherman’s Co-op in South Thomaston, Maine. Price directed his employees who withdrew the cash from the J.P.’s Shellfish business bank account not to withdraw more than
$10,000 in cash at any one time, so as to avoid federal regulations requiring banks to file reports involving cash transactions of more than $10,000. The dock employee who sold the lobsters to
Price was not a licensed seafood dealer, making the sales illegal under Maine law. Under the federal Lacey Act, it is illegal to purchase lobsters in violation of state law.“This scheme to transact enormous amounts of American lobster on the black market undermines the ability of the National Oceanic and Atmospheric Administration (NOAA) and the State of Maine to sustainably manage this fishery, which is so critical to Maine’s overall economy,” said NOAA Special Agent in Charge Logan Gregory. “The Office of Law
Enforcement will continue to work with its state and federal partners to expose these schemes and hold the participants accountable.”The charges are the result of a collaborative investigation conducted by the Internal
Revenue Service, NOAA, Office of Law Enforcement, and the Knox County Sheriff’s Office.Kingston Man Sentenced to A 48 Month Term of Imprisonment for Cocaine DistributionRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that yesterday Senior United States District Court Judge A. Richard Caputo has sentenced Thomas Ceprish, age 32, of Kingston, Pennsylvania, to 48 months’ imprisonment for distributing cocaine on numerous occasions between 2008 and April 2, 2013.
According to United States Attorney Peter Smith, Ceprish obtained cocaine in Wilkes-Barre for distribution to others in the Luzerne County area. On June 18, 2014, Ceprish appeared in federal court and pleaded guilty to the charge.
In addition to the 48-month term of imprisonment, Judge Caputo ordered that Ceprish be placed under the supervision of the United States Probation Office for a period of three years following the service of his prison sentence.
The case was investigated by the Federal Bureau of Investigation; the Pennsylvania Attorney General’s Office; and the Luzerne County District Attorney’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
Justice Department Requires Divestitures in Media General Inc. Acquisition of LIN Media LLCRead the Press Release
The Department of Justice announced today that it will require Media General Inc. to divest WVTM-TV(NBC), located in the Birmingham, Alabama, Designated Market Area (DMA); WJCL-TV (ABC) and WTGS (FOX), both located in the Savannah, Georgia, DMA; WALA-TV (FOX), located in the Mobile, Alabama/Pensacola, Florida, DMA; WJAR-TV (NBC), located in the Providence, Rhode Island/New Bedford, Massachusetts, DMA; and WLUK-TV(FOX) and WCWF-TV (CW), both located in the Green Bay/Appleton, Wisconsin, DMA, in order to proceed with its acquisition of LIN Media LLC for $1.5 billion. The department said that without the required divestitures, prices for broadcast television spot advertising would likely increase to advertisers in the DMAs.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.
“Media General’s stations and LIN’s stations compete head-to-head in the sale of broadcast television spot advertising in several markets around the country, and this competition benefits advertisers and, ultimately, consumers,” said Bill Baer, Assistant Attorney General for the Antitrust Division. “The divestitures required by the department will ensure that these stations remain vigorous competitors in their designated market areas.”
Under the terms of the proposed settlement, Media General and LIN must divest assets used in the operation of WVTM-TV and WJCL-TV to Hearst Television Inc.; WALA-TV to Meredith Corporation; and WJAR-TV, WLUK-TV, WCWF-TV, and WTGS to Sinclair Broadcast Group Inc., or to other acquirers approved by the United States.
Media General, a Virginia corporation with its headquarters in Richmond, Virginia, owns and operates 31 broadcast television stations in 29 metropolitan areas, including broadcast television stations in each of the DMA Markets.
LIN, a Delaware corporation with its headquarters in Austin, Texas, owns and operates, or provides programming, operating, or sales services to more than 50 stations in 23 metropolitan areas, including broadcast television stations in each of the DMA Markets.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60‑day comment period to David C. Kully, Chief, Litigation III Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4000, Washington, DC 20530. At the conclusion of the 60‑day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Jemez Pueblo Man Sentenced to Eight Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Irving Shendo, 59, a member of the Jemez Pueblo, was sentenced yesterday afternoon to eight years in federal prison followed by five years of supervised release for his aggravated child sexual abuse conviction. Shendo will be required to register as a sex offender after he completes his prison sentence.
Shendo was arrested in July 2013, based on a criminal complaint alleging that he engaged in a sexual act with a Jemez Pueblo child under the age of 12 years. According to court filings, Shendo sexually abused the child victim in August 2008 in a residence located on Jemez Pueblo, N.M., but his criminal conduct was first reported to law enforcement authorities in April 2013.
On June 20, 2014, Shendo admitted that on Aug. 1, 2008, he engaged in a sexual act with the child victim. He further acknowledged committing the crime in Jemez Pueblo.
This case was investigated by the Albuquerque office of the FBI, the Jemez Pueblo Tribal Police Department and the Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
James Glen Murphy, Jr. Sentenced to Twenty-Seven Years in Prison for Producing Child PornographyRead the Press Release
GREENEVILLE, Tenn.—On Oct. 29, 2014, James Glen Murphy, Jr., 31, of Bristol, Tenn., was sentenced to serve 27 years in prison by the Honorable J. Ronnie Greer, U.S. District Judge. The court also imposed a life term of supervised release with special conditions of release.
In July 2014, Murphy pleaded guilty to a federal grand jury indictment charging him with producing, distributing, and possessing child pornography. In sentencing Murphy, Judge Greer noted the seriousness of the offenses Murphy committed including: the fact that he victimized two identified children; the long-term impact on the two child victims; that in addition to the child pornography Murphy produced, the officers found more than 12,000 still images and more than 80 videos of child pornography; the very harsh impact that such crimes have on the fabric of our community; the need to protect the community; the high risk of recidivism for such crimes; and the need for federal courts to send the message that these are serious crimes which will be punished severely.
The indictment and subsequent conviction of Murphy were the result of an investigation conducted by the Federal Bureau of Investigation and the Bristol Tennessee Police Department. Assistant U.S. Attorney Helen Smith represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Inglewood Gang Member Sentenced to Nearly 5 Years in Prison for Running Identity Theft Ring the Produced Counterfeit Credit CardsRead the Press Release
LOS ANGELES – An Inglewood gang member was sentenced this afternoon to 57 months in federal prison for running an identity theft ring that victimized scores of individuals and merchants in three states, resulting in an estimated $1 million in financial losses.
Lancelot Joshua Wilburn, who used the moniker “El Dog,” 33, a member of the Queen Street Bloods street gang, was sentenced today by United States District Judge Dolly M. Gee. In addition to the prison term, Judge Gee ordered the defendant to pay just over $50,000 in restitution.
Wilburn pleaded guilty in June to four felony counts: possessing counterfeit or unauthorized access devices (credit cards), possessing device-making equipment, using counterfeit access devices and aggravated identity theft.From January 2011 to May 2012, Wilburn and his co-conspirators used stolen account numbers, counterfeit credit cards, and fake drivers’ licenses to rent cars and purchase luxury items in California, Nevada and Kansas. Wilburn and those acting at his direction converted merchandise into cash by repeatedly exchanging fraudulently purchased items for other luxury goods, gift cards and cash refunds.
The stolen personal identifying information came from stolen medical intake forms, Russian computer hackers and other sources. According to court records, authorities executed a search warrant on Wilburn’s apartment in May 2012. Inside the residence, agents found a counterfeit credit card manufacturing plant, hundreds of stolen medical profiles, counterfeit credit cards, counterfeit currency, counterfeit drivers licenses, stolen credit reports, 770 stolen credit card numbers and 166 counterfeit American Express Traveler’s Checks.
Wilburn continued his criminal activity even after being arrested in Kansas in 2012 in relation to the use of counterfeit credit cards. While in custody there, Willburn threatened to kill a cooperating witness, and he directed others to destroy evidence and remotely “wipe” his seized cell phones. While he was free on bond in the Kansad case, Wilburn directed associates to steal more medical profiles, and to raise additional money for his defense by using the counterfeit credit cards at Nordstroms, Saks Fifth Avenue and other retailers.
In a sentencing memo filed with the court, prosecutors wrote that Wilburn “has mocked the criminal justice system by threatening violence against cooperators, attempting to bribe witnesses, and destroying evidence.”The case against Wilburn was the result of an investigation by the United States Secret Service. The United States Department of Housing and Urban Development – Office of Inspector General; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Inglewood Police Department; the Los Angeles Police Department; the Los Angeles County Sheriff’s Department; and the California Highway Patrol provided assistance.
Release No. 14-143
Indianapolis Man Sentenced to 10 Years in Prison for Ecstasy TraffickingRead the Press Release
JOHNSTOWN, Pa. – A resident of Indianapolis has been sentenced in federal court to 120 months in prison and three years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Charles J. Gooch, Jr., 42, of Indianapolis, Indiana.
According to information presented to the court, on May 25, 2007, Gooch and a co-defendant possessed with the intent to distribute a quantity of 3,4-methylenedioxyamphetamine, commonly known as ecstasy.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Pennsylvania State Police, Somerset Turnpike Barracks, for the investigation leading to the successful prosecution of Gooch.
Illegal Aliens Indicted for Violations of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERTO HERRERA-VILLAGOMEZ, age 23, and JUAN MANUEL HERRERA-VILLAGOMEZ, age 32, both citizens of Mexico, were each charged today in two-count indictment with violations of the Federal Gun Control Act.
According to the indictment, on or about October 15, 2014, ROBERTO HERRERA-VILLAGOMEZ and JUAN MANUEL HERRERA-VILLAGOMEZ, both illegal aliens, were found in possession of loaded firearms. Both defendants were found while executing a search warrant in an ongoing investigation into the harboring of illegal aliens at a mushroom farm in Tangipahoa Parish.
If convicted, ROBERTO HERRERA-VILLAGOMEZ and JUAN MANUEL HERRERA-VILLAGOMEZ, each face a maximum term of imprisonment of ten years, a fine of $250,000 and up to three years of supervised release following any term of imprisonment.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised work of the Department of Homeland Security, Homeland Security Investigations (“HSI”) in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
(Download Indictment )
Illegal Alien, Juan Carlos Moscoso-cardenas, Indicted for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN CARLOS MOSCOSO-CARDENAS, age 28, a citizen of Honduras, was charged today in a one-count indictment with illegal reentry by an alien previously removed.
According to the indictment, on or about October 15, 2014, LOPEZ-VELASQUEZ, an alien who had previously been removed from the United States, was found in the United States, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
If convicted, JUAN CARLOS MOSCOSO-CARDENAS, faces a maximum term of imprisonment of two years, a fine of $ 250,000 and one year of supervised release following any term of imprisonment.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Homeland Security Investigations (“HSI”) for investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
(Download Indictment )
Huntsville Insurance Broker Indicted for Defrauding CustomersRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Huntsville insurance broker for mail fraud in a scheme to divert customers' insurance premiums to his own benefit, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A one-count indictment filed in U.S. District Court charges that DAVID RANDALL "RAND" MULLINS, 45, caused Travelers Insurance Company to mail a policy cancellation notice for one of Mullins' customers from the company's office in Hartford, Conn., to Mullins' home address in Huntsville.
Mullins was an independent insurance broker and owner of Mullins Insurance Agency in Huntsville, which provided commercial, residential, automobile and workers compensation insurance. At least a dozen insurance companies, including Travelers, appointed Mullins to act on their behalf.
According to the indictment, it was part of Mullins' scheme to change customers' mailing addresses, without their knowledge, to his home address. The address changes ensured that those customers would not receive statements and notices sent from Travelers and other insurance companies.
Mullins conducted his fraud between January 2010 and December 2013 as follows, according to the indictment:
Mullins opened a bank account to receive customers' insurance premium payments, but also used the account to pay personal expenses. Without informing customers, he changed their premium payment schedules from annual payments to monthly payments. Mullins collected the full annual premium payment from the customer, deposited it into his bank account, and then sent the insurance provider a monthly payment. He used the difference for personal expenses.
Customers did not receive late payment or cancellation notices, or notices of the unauthorized changes to their payment plans or addresses because Mullins had diverted their mail from Travelers and other insurance companies to his address.
Mullins could face a maximum penalty of 20 years in prison and a $250,000 fine if convicted of the mail fraud.
The FBI investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Grove Man Sentenced to over 3 Years in Prison for Laundering Money Fraudulently Obtained from Elderly WomanRead the Press Release
TULSA, Okla. — Today, United States Attorney Danny C. Williams Sr. announced that William J. Butler II, 61, of Grove, Oklahoma, was sentenced to 38 months in prison for money laundering. Butler pleaded guilty on July 23, 2014, to a criminal Information filed on May 6, 2014.
Butler pleaded guilty to depositing $40,000 of funds fraudulently obtained from an elderly woman into a bank account in Grove, Oklahoma on June 19, 2012. Butler admitted that, in addition to the $40,000 deposited, an additional fraudulently obtained $33,985.85 was deposited from March 21, 2012 until June 19, 2014.
In addition to the term of incarceration, U.S. District Judge John E. Dowdell ordered Butler to pay restitution in the amount of $77,985.85. The court also entered a money judgment in the amount of $40,000 against Butler.
The matter was investigated by the IRS- Criminal Investigation. Assistant U.S. Attorneys Shannon Bears Cozzoni and Catherine Depew prosecuted the case on behalf of the United States.
U.S. v. William J. Butler III
Fort Thompson Man Sentenced for Distribution of A Controlled Substance and Aiding and AbettingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Distribution of a Controlled Substance and Aiding and Abetting was sentenced on October 27, 2014, by U.S. District Judge Roberto A. Lange.
Emmanuel Harrison, a/k/a Manny Harrison, age 29, was sentenced to 5 months in custody, 3 years of supervised release, $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Harrison was indicted for two counts of Distribution of a Controlled Substance by a federal grand jury on April 15, 2014. He pled guilty to one count of Distribution of a Controlled Substance and Aiding and Abetting on July 29, 2014.
The conviction arose from an October 16, 2013, incident at Fort Thompson when Harrison knowingly and intentionally distributed a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, and aided and abetted in the commission of the distribution.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Harrison was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Former United Commercial Bank Chief Financial Officer Charged with Conspiracy to Mislead AuditorsRead the Press Release
SAN FRANCISCO – Craig S. On was charged in an Information filed today with one count of Conspiracy to Make a Materially False and Misleading Statement to an Accountant, announced U.S. Attorney Melinda Haag; Federal Deposit Insurance Corporation, Office of the Inspector General, Special Agent in Charge Wade Walters; Special Inspector General for the Troubled Asset Relief Program Christy Romero; Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Office of the Inspector General, Special Agent in Charge Scott Redington; and FBI Special Agent in Charge David J. Johnson.
On, 62, of Berkeley, Calif., is the former Chief Financial Officer (CFO) of United Commercial Bank (UCB). UCB was a commercial bank headquartered in San Francisco, Calif., with branch offices throughout the United States as well as in China and Taiwan. Until 2009, its holding company, UCBH Holdings, Inc., was publicly traded on NASDAQ.
On Nov. 6, 2009, UCB was taken over by the Federal Deposit Insurance Corporation (FDIC). According to the Information, the Troubled Asset Relief Program (TARP) provided approximately $297 million in federal funds to UCB on Nov. 14, 2008, during the 2008 financial crisis.
According to the Information, On, beginning in 2009, together with others, allegedly engaged in a conspiracy to deceive UCB’s auditors by manipulating the bank’s books and records in a manner that misrepresented and concealed the bank’s true financial condition and performance and caused the bank to issue materially false and misleading financial statements in violation of 18 U.S.C. § 371.
The maximum statutory penalty for a conviction for conspiracy in violation of 18 U.S.C. § 371 is five years in prison and a fine of $250,000, plus restitution. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Adam A. Reeves and Robert David Rees are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Denise Oki, Phillip Villanueva and Bridget Kilkenny. The prosecution is the result of an investigation by the FDIC Office of Inspector General, the Special Inspector General of the Troubled Asset Relief Program, the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau Office of Inspector General and the Federal Bureau of Investigation.
Please note, an information contains only allegations against an individual and, as with all defendants, Craig S. On must be presumed innocent unless and until proven guilty.
(On information )
Former Teacher Pleads Guilty to Producing and Distributing Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Matthew C. Graziotti (43, Edgewater) today pleaded guilty to seven counts of production of child pornography, one count of distribution of child pornography, and one count of possession of child pornography involving children under the age of 12. Graziotti faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison for each count of producing child pornography. For the distribution count, he faces a mandatory minimum of 5 years, up to 20 years in federal prison, and the maximum penalty for the possession count is 20 years’ imprisonment. A sentencing hearing has been set for January 26, 2015.
According to court documents, Graziotti distributed 141 images and 6 videos depicting the sexual abuse and exploitation of children to an undercover FBI agent. During the execution of a search warrant, agents located thousands of child pornography images on Graziotti’s computer involving children under the age of 12. One computer file folder, named “personally known,” contained sexually explicit photographs and videos of 29 children that Graziotti had sexually abused when they were under the age of 12. Graziotti stored the sexually explicit images that he produced in subfolders bearing each child’s name. He produced these images from 2010 through 2014. During this period, Graziotti taught elementary school in South Daytona and was the director of the school’s summer day camp program. He also coached youth sports.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.