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Monday 15 September 2014
Federal, State and Local Programs to Join in A Statewide Awareness CampaignRead the Press Release
Contact:
WVCADV: Joyce Yedlosky / Tonia Thomas, 304-965-3552, 304-534-0641;
US Attorney’ Office, Southern District of WV: Tracy Dorsey Chapman, Victim Witness Coordinator, 800-659-8726, (304) 345-2200
US Attorney’ Office, Northern District of WV: Chris Zumpetta-Parr, 304-234-7725Recent charges of domestic violence against well-known professional athletes have heightened public interest in the tools available to assist domestic-violence victims and to prosecute domestic-violence offenses. For the past twenty years, one crucial tool in this area has been the federal Violence Against Women Act, which was enacted in September 1994.
The West Virginia Coalition Against Domestic Violence joins United States Attorneys Booth Goodwin and William Ihlenfeld in recognizing the 20th Anniversary of the Violence Against Women Act.
“The original law had three simple goals: make streets safer for women; make homes safer for women; and protect women’s civil rights.” – Senator Biden, 1990 (lobbying efforts for 1994 passage)
“VAWA ensures that victims have access to crucial services and resources by supporting shelters and local domestic violence and sexual assault programs across the state and country,” stated Joyce Yedlosky, Team Coordinator with the West Virginia Coalition Against Domestic Violence. “It also improves the criminal justice response to violence against women by providing funding for dedicated prosecutors and law enforcement who work as a team with local advocates to keep victims safe and to hold perpetrators accountable.”
United States Attorney Booth Goodwin stated, “Before the passage of VAWA, these cases were difficult to prosecute because they often involved multiple jurisdictions. Abusers often travel between states to stalk or harass their victims or to violate protective orders. Or worse yet, they drag their victims across state lines to take them away from their families and friends and support systems. VAWA equipped federal prosecutors with the necessary tools to overcome these challenges.”“We’ve made a lot of progress in the fight against domestic violence over the past two decades but much more work still needs to be done,” said Northern District U.S. Attorney William J. Ihlenfeld, II. “We must redouble our efforts to prosecute domestic violence offenders who possess firearms despite being prohibited by Federal law.”
Goodwin and Ihlenfeld will join advocates, prosecutors, law enforcement and survivors across the state this week to conduct roundtable discussions on real challenges and solutions to ending violence against women. Press are invited to attend:
Tuesday, September 16th:- 3:30 pm – 4:30 pm, Shepherd University, Martinsburg Center, 261 Aikens Center, Martinsburg, WV, room 205 (local press contact: Ann Smith, 304-263-8522 )
Wednesday, September 17th:
- 9:30 am – 11:00 am, Governor Huelett C. Smith Theatre, Tamarack, Beckley, WV; (local press contact: Patricia Bailey, Executive Director or Dee Sizemore, PR Coordinator, 304-255-2559)
- 1:30 pm – 3:00 pm, 704 Bland Street Suite 209, Bluefield, WV (local press contact: Patricia Daniels, Advocate Supervisor, 304-436-8117, ext 25)
Thursday, September 18th:
- 9:00 am – 10:30 am, Marshall University Student Center, Huntington, WV (local press contact: Amanda Weiss McComas, Director, 304-529-2382)
- 12:00 pm – 1:30 pm, YWCA, 1114 Quarrier Street, First Floor O’Connor Aultz Room, Charleston WV; (local press contact: Carol Sun, YWCA Development Director, 304-414-3113 )
- 3:30 pm – 4:30 pm, YWCA Wheeling, 1100 Chapline Street, Wheeling, WV ( local press contact: Patricia Flanigan, Program Director, (304) 232-2748
“Violence against women is the seed to so many other forms of violence and it continues to have devastating effects on families and communities across the country,” stated Yedlosky. “To end violence in our communities, we must first end violence in our homes.”
Additional resources and information about the Violence Against Women Act are attached.20 Years After the Passage of The Violence Against Women Act Resources
“In its totality, the Violence Against Women Act was the first federal law that directly held violence against women as a violation of basic civil rights and fundamental human dignity.” –Vice President Biden, 2013 (http://www.whitehouse.gov/the-press-office/2014/09/09/fact-sheet-standing-women-s-civil-rights-20-years-after-vawa )
"In 1994, VAWA was a long awaited response from the federal government to address the epidemic levels of violence against women in their homes and in their communities," said Kim Gandy, President and CEO of the National Network to End Domestic Violence (NNEDV). "At that time, many states had made progress in addressing domestic and sexual violence, but the federal government did not have a comprehensive response to violence against women." (http://nnedv.org/news/4373-nnedv-honors-vawa-s-20th-anniversary-and-calls-for-ongoing-action.html )
Here are some examples of VAWA’s effectiveness . (https://www.legalmomentum.org/blog/celebrating-20-years-violence-against-women-act ):- Between 1993, the year VAWA was introduced, and 2010, violence against family members and intimate partners in the U.S. declined 67%.
- There has been as much as a 51% increase in reporting of such violence by women and a 37% increase in reporting by men.
- Between 1993 and 2007, the rate of intimate partner homicides of women decreased by 35%, and the rate of intimate partner homicides of men decreased 46%.
- VAWA has saved taxpayers billions of dollars in costs for medical and mental health services, as well as costs for law enforcement and justice system expenditures
In West Virginia, VAWA has contributed to successful initiatives that have lead to:
- Help maintaining 14 licensed domestic violence programs that provide free, confidential, community based, services to all 55 counties in WV.
- Pro arrest laws shifting the responsibility from the victim to the state for filing criminal charges against domestic violence perpetrators;
- A network of community and system based advocates to provide support, education, and legal advocacy as victims walk through the complex, comprehensive legal systems;
- Cross system trainings, collaborative efforts and strategies with a variety of systems that impact families experiencing domestic violence;
- County wide coordinated community response teams to develop and maintain policies and protocols that facilitate safety and accountability;
- Statutory elimination of applying pretrial diversion (as evident in the Ray Rice case) to domestic violence cases preventing domestic violence perpetrators from being able to “erase” their record through a dismissal of charges for good behavior;
- Just recently, WV moved in ranking of states from 8th in the nation to 13th of women murdered by men due to domestic violence (When Men Murder Women: An Analysis of 2012 Homicide Data. http://www.vpc.org/studies/wmmw2014.pdf )
Federal Court Bars Nevada Corporation from Promoting Alleged Tax SchemeRead the Press Release
A federal court has permanently barred Sea Nine Associates Inc. from promoting and selling an alleged nationwide tax scheme that involved using welfare benefit plans to unlawfully increase and accelerate tax deductions and avoid income taxes, the Justice Department announced today.
On Sept. 12, U.S. District Judge Josephine L. Staton for the Central District of California entered a judgment of permanent injunction against Sea Nine.
According to the complaint, welfare benefit plans permit companies to pool together and make monetary contributions toward the purchase of life insurance for the benefit of each participating company’s employees or principals. Participants in legitimate welfare benefit plans may be able to deduct their plan contributions as a business expense. The government alleged that Sea Nine marketed the unlawful welfare benefit plans to more than 200 entities. The injunction order bars Sea Nine from selling and managing any purported welfare benefit plans.
In the past decade, the department’s Tax Division has obtained more than 500 injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Kenneth Elliott, etc. et al.
Default Judgment and Permanent Injunction Against Sea Nine Associates, Inc.Episcopal Ministries to the Aging Inc. to Pay $1.3 Million for Allegedly Causing Submission of Claims for Unreasonable or Unnecessary Rehabilitation Therapy at Skilled Nursing FacilityRead the Press Release
Episcopal Ministries to the Aging Inc. (EMA), a Maryland not-for-profit corporation that owns skilled nursing facilities, has agreed to pay $1.3 million to the government for submitting false claims to Medicare for unreasonable or unnecessary rehabilitation therapy purportedly provided by RehabCare Group East Inc., a subsidiary of Kindred Healthcare Inc.
“Patient need must dictate the provision of Medicare benefits rather than the fiscal interests of providers,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “ Today’s settlement demonstrates the department’s continued commitment to safeguarding both Medicare beneficiaries and taxpayer dollars by holding accountable all entities involved in billing for unnecessary services, including those that did not directly provide the unnecessary services.”
The settlement resolves allegations that EMA submitted false claims for rehabilitation therapy at William Hill Manor, a skilled nursing facility EMA owns in Easton, Maryland. EMA hired RehabCare to provide rehabilitation therapy services to its patients at that facility starting in 2010. The government alleges that EMA failed to prevent RehabCare from providing unreasonable or unnecessary therapy to patients in order to increase Medicare reimbursement to the facilities. The government contended that among other things the reported therapy did not reflect the lower amounts of therapy generally provided to patients over the course of their stay.
The settlement further resolves allegations that EMA failed to prevent other RehabCare practices designed to inflate Medicare reimbursement, including: in lieu of using individualized evaluations to determine the level of care most suitable for each patient’s clinical needs, presumptively placing patients in the highest reimbursement level unless it was shown that the patients could not tolerate that amount of therapy; providing the minimum number of minutes of therapy required to bill at the highest reimbursement level while discouraging the provision of therapy in amounts beyond that minimum threshold, despite the Medicare requirement that the amount of care provided be determined by patients’ clinical needs; arbitrarily shifting the number of minutes of planned therapy between therapy disciplines to ensure targeted reimbursement levels were achieved and reporting estimated or rounded minutes instead of reporting the actual minutes of therapy provided.
“Patients in our nation’s nursing homes should not be left to wonder whether the therapy they receive is based on their own clinical needs, or is instead tied to the financial targets of the companies providing their care,” said U.S. Attorney Carmen M. Ortiz for the District of Massachusetts. “This settlement makes clear that, when a skilled nursing facility contracts with an outside rehabilitation therapy provider, the facility remains responsible for ensuring that its patients are receiving, and Medicare is paying for, reasonable and necessary care.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the U.S. Department of Health and Human Services-Office of the Inspector General and the FBI . The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Dodge County Woman Sentenced to 10 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Tina L. Cash, of Inglewood, Dodge County, Nebraska, was sentenced on September 15, 2014, to 10 years in prison by United States District Judge Laurie Smith Camp. Cash had previously pled guilty for her involvement in assisting others with distributing methamphetamine after a January 7, 2014, search warrant on an Inglewood residence revealed more than 220 grams of crystal methamphetamine in a bedroom where Cash and another resided. After serving her sentence, Cash will be required to serve a Term of Supervised Release of at least 5 years.
This case was the result of an investigation by the III Corps Task Force.
Detroit Residents Plead Guilty to Defrauding Irs with Identities of Deceased IndividualsRead the Press Release
Two Detroit residents pleaded guilty today to charges of wire fraud and aiding and abetting in the use of false identification, U.S. Attorney Barbara L. McQuade announced today.
United States Attorney McQuade was joined in the announcement by Acting Special Agent in Charge Jarod Koopman, IRS Criminal Investigation.
Brenda Knight and Adreann Turnage, both of Detroit, entered their guilty pleas before U.S. District Court Judge Avern Cohn.
According to court records, Knight and Turnage participated in a scheme with co-defendant Willie Watkins, Knight’s husband, and others, to defraud the United States by using the names and Social Security numbers of recently deceased individuals to prepare fraudulent tax returns. Hundreds of fraudulent 2010 tax returns were filed, claiming refunds of more than $1 million dollars. The returns sought refunds by making false claims for the Earned Income Credit, Education Credits and the Making America Work Credit. The returns were transmitted electronically, utilizing public access internet connections from local hotels and coffee shops. Forty-six fraudulent returns were transmitted using an internet account registered to Turnage. The refunds were directed to bank accounts that were established for the sole purpose of receiving the fraudulent refunds. Willie Watkins had control over a number of the accounts. Knight helped recruit individuals to whom Watkins would issue checks written on the accounts. The recruits would cash the checks and bring the proceeds to Watkins for distribution to participants in the scheme, including Knight and Turnage.
"Using the identities of deceased individuals to commit crimes for financial gain is particularly egregious. Identity theft is a top priority for the IRS-Criminal Investigation and we will continue to detect and investigate these types of cases in order to protect taxpayers from being victimized," Jarod Koopman, Acting Special Agent in Charge IRS-Criminal Investigation.
“This case is a sobering reminder that criminals use the identities of recently deceased individuals to steal their tax refunds,” McQuade said. “We applaud the IRS for their aggressive enforcement of this deplorable crime, and we encourage family members to be vigilant in safeguarding the taxpayer information of their loved ones.”
A sentencing hearing for Knight and Turnage will be set by the court. Wire fraud carries a maximum penalty of 20 years imprisonment and/or a fine of $250,000. Use of false identification with the intent to commit a violation of federal law carries a maximum penalty of 15 years and/or a fine of $250,000.
The investigation of this case was conducted by special agents of the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney Ross MacKenzie and Kenneth Vert, Trial Attorney, Department of Justice, Tax Division.
Dallas Man Sentenced to 15 Years in Federal Prison for Sex Trafficking of A Minor ChildRead the Press Release
DALLAS — A Dallas man who met a 15-year-old female run-away at a bus station, took her, and made her engage in sex acts for money, was sentenced this morning by U.S. District Judge David C. Godbey to 15 years in federal prison and a lifetime of supervised release. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
In June 2014, Dereck Johnson, 33, pleaded guilty to one count of sex trafficking of children. According to documents filed in the case and information revealed at today’s sentencing hearing, on June 1, 2012, a 15-year old female, “Jane Doe,” took $200 from her father before spending the night at a friend’s house. While there, she asked a friend to drive her to a Greyhound station where she bought a ticket, with several transfers, to Arizona where a friend lived. Her bus stopped at the Greyhound station in downtown Dallas, where Johnson approached her. Jane Doe told Johnson she was 15 and that her parents did not know where she was. Johnson told her to go with him, and he would help her find Wi-Fi for her phone. Instead, he called a friend who picked them up and eventually took them to his home.
While at the house, Johnson used methamphetamine and then forced Jane Doe to use it. Johnson then sexually assaulted Jane Doe. When Johnson’s friend came home and discovered Jane Doe was underage, he made them leave. Johnson’s friend then drove them back to the Greyhound bus station where Johnson and Jane Doe took a taxi to a Flying J Truck stop. There, they got a ride from a truck driver to a Love’s truck stop near another Greyhound station in Dallas. At that bus station, Jane Doe used a Greyhound employees’ cellphone to call her father to come pick her up, but she was unable to describe exactly where she was. She rushed off the phone, and Johnson was waiting for her. He told her not to contact her father again, that she was staying with him, and she needed to come with him. Jane Doe’s father called the number back and spoke to a Greyhound employee, who told him Jane Doe had left with a man.
Johnson took Jane Doe back to the Love’s truck stop with him, where he begged for money. Johnson found a truck driver who was willing to drive them to Houston, where they were dropped off at a Flying J truck stop. Johnson told Jane Doe they needed to make money so she needed to go into a specific man’s truck cab. After entering the man’s truck cab, the man repeatedly raped her and then provided Johnson compensation for the sex. Johnson forced Jane Doe to engage in several commercial sex acts while at the truck stop.
A few days later, on June 5, 2012, Johnson sent her to take a shower, and while she was in the bathroom at the truck stop, she plugged in her prepaid cellphone and was able to send out a text message for the first time since arriving at the truck stop. She was rescued soon thereafter by a local family member.
At sentencing, the now 18-year-old Jane Doe read a victim impact statement addressing the court, speaking to Dereck Johnson. In that statement, Jane Doe read, “I head you screaming at me telling me I was worthless…but you started the fire behind my drive and after that you stood no chance. I know you can’t stand the fact that I no longer fear you. That nobody will ever fear you again… That I survived when you didn’t, that you are alone. So knowing that is punishment enough for me.” She continued, “No one is ever going to be able to trick me again, not like you did.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Dallas Police Department investigated. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
Coffee County Man Sentenced to Serve 24 Years for Possession of A Firearm by A FelonRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 15, 2014, Victor Stitt, 32, of Manchester, Tenn., was sentenced to serve 290 months in prison by the Honorable Harry S. Mattice Jr., U.S. District Judge. The sentence was the result of a conviction after a jury trial in April 2014.
During trial, the jury learned that Coffee County Sheriff’s Deputies responded to a domestic violence assault call at the residence of Stitt’s then girlfriend, after receiving information that he had assaulted her and threatened her with a handgun. He had left the scene before the deputies arrived, but was subsequently located at his family’s house in Cannon County, Tenn. At that time, Stitt was within arm’s reach of a handgun.
Stitt’s lengthy sentence was a result of his classification as an armed career criminal, which was based his nine prior convictions for aggravated burglary. As a result, he faced a mandatory sentence of at least 15 years in prison.
The indictment and subsequent conviction of Stitt was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Coffee County Sheriff’s Office. Assistant U.S. Attorneys Terra L. Bay and Meredith J. Edwards represented the United States at trial.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Cleveland Man Pleads Guilty to Possession of Stolen FirearmRead the Press Release
Charleston, WV – A Cleveland, Ohio man pleaded guilty today to illegally possessing a stolen firearm, announced U.S. Attorney Booth Goodwin. James Herod III, 33, pleaded guilty in federal court in Charleston.
Herod admitted that on August 23, 2013, he was approached by police officers at the Greyhound Bus Station in Charleston. Herod, who had both a stolen firearm and marijuana in his possession ran from the officers and attempted to discard the pistol while the officers were chasing him. Herod had previously stolen the firearm in Putnam County, West Virginia. Herod faces up to 10 years in prison when he is sentenced on December 16, 2014.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Church Point Woman Pleads Guilty to Stealing from EmployerRead the Press Release
LAFAYETTE, La. –A Church Point woman pleaded guilty to stealing more than $197,000 from her employer over a five-year period, U.S. Attorney Stephanie A. Finley announced today.
Michelle Dana Lavergne, 36, of Church Point, La., pleaded guilty before U.S. District Judge Richard Haik for three counts of making and possessing a forged security, as part of a larger fraudulent scheme. According to evidence presented at the guilty plea, from April 1, 2008 to April 30, 2013 Lavergne used her position at a Lafayette law firm to embezzle funds by writing checks to herself and another employee in various amounts ranging from $350 to $5,500. The checks totaled $197,371.53 over a five-year period. She worked at the law firm for 13 years as a financial secretary and paralegal. Lavergne had access to the business checks because of her position. She obtained pre-signed checks to pay bills or she forged the signature, so she could deposit the checks into her personal account.
Lavergne faces up to 10 years in prison, three years of supervised release, forfeiture, and a $250,000 fine for each count.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Chillicothe Couple Sentenced for $4 Million Theft, Money Laundering, False Tax ReturnRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Chillicothe, Mo., husband and wife were sentenced in federal court today on charges involving the wife’s embezzlement of nearly $4 million from her employer and for the couple jointly filing a false income tax return not claiming the income from the wire fraud scheme.
Donna M. Preszler, 61, and her husband, Terrance W. Preszler, 64, both formerly of Chillicothe, were sentenced by U.S. District Judge Fernando J. Gaitan. Donna Preszler was sentenced to five years and 10 months in federal prison without parole. Terrance Preszler was sentenced to three years in federal prison without parole, which is the statutory maximum. The court also ordered the Preszlers to pay $4,049,121 in restitution to Burdg, Dunham & Associates Construction Corp. and $1,236,690 in restitution to the Internal Revenue Service, for a total restitution amount of $5,285,811.
The court also ordered the Preszlers to forfeit to the government a money judgment of $3,912,000, two residential lots, two 14kt diamond rings, eight vehicles (a 2007 Ford Taurus, a 2007 Mazda CX-7, a 2011 Nissan Versa, a 2010 Nissan 370Z, a 2010 Ford F150, a 2010 Ford Escape, a 2012 Ford Explorer and a 2012 Nissan Rogue), three 2011 Yamaha ATVs and several bank and funeral trust accounts, all of which was derived from the proceeds of the criminal violations.
On Feb. 13, 2014, Donna Preszler pleaded guilty to wire fraud, money laundering and filing a false income tax return. Terrance Preszler pleaded guilty to filing a false income tax return.
Donna Preszler was employed at Burdg, Dunham & Associates Construction Corp. (BDA) in Hamilton, Mo., from 2001 until June 2012, working as an accounting manager since 2004. BDA is a general contractor specializing in retail construction of malls, strip centers, family life centers, and other stand-alone projects. BDA serves customers in all 50 states, Puerto Rico and Canada, primarily building for national retail organizations.
Donna Preszler admitted that she embezzled $3,912,000 in a wire fraud scheme that lasted six years, from June 30, 2006 through June 15, 2012. She also admitted that she conducted financial transactions that involved the proceeds of her criminal activity.
Donna and Terrance Preszler each admitted that they failed to report the fraudulently obtained funds on their federal income tax returns for tax years 2007 through 2012. During that time, the Preszlers filed their federal income tax returns jointly and should have paid $1,236,690 in taxes on their unreported fraudulent income from BDA. For example, the Preszlers claimed their income in 2012 was only $46,863. Including the embezzled funds, according to today’s plea agreements, their income was actually $851,863 and they should have paid an additional $253,641 in taxes.
Donna Preszler utilized her role as accounting manager to add false and fictitious non-taxable payments, such as expense reimbursements, to herself. Donna Preszler transferred approximately $3,912,000 in fraudulent payments to herself and her family.
Donna Preszler also added false and fictitious overtime hours and overtime pay to her weekly payroll. Donna Preszler received $137,121 in unauthorized overtime payments to herself from November 2004 through June 2006, which were subject to BDA withholding income taxes.
Donna Preszler concealed her transfers by password protecting her payroll information, creating false and fictitious expense accounts and otherwise manipulating BDA’s payroll and accounting records.
This case was prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the FBI and IRS-Criminal Investigation.Buffalo Man Indicted for Social Security FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr., announced today that a federal grand jury has indicted Ari Elias Baum, 30, of Buffalo, N.Y., on charges of Supplemental Security Income (SSI) benefits fraud, theft of government property, and making a material false statement. The charges carry a maximum penalty of 10 years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the indictment, Baum was out of the United States from March 22, 2013, through August 13, 2013. During that time, the defendant was wrongfully collecting SSI disability benefits. Baum failed to report his absence from the country as required, and during a redetermination interview conducted on December 19, 2013, the defendant stated that he had not been out of the country since March 1, 2013. Baum’s absence from the United States resulted in an overpayment of Social Security benefits totaling $4,277.23.
The indictment is the result of an investigation on the part of the United States Social Security Administration, Office of the Inspector General, under the direction of Special Agent-in-Charge Edward J. Ryan and the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.Brothers Plead Guilty to Trafficking Fifty or More Kilos of MarijuanaRead the Press Release
PROVIDENCE, R.I. – Benjamin J. Daniels, 37, of West Bountiful, Utah, pleaded guilty in U.S. District Court in Providence, R.I., today to participating in a conspiracy to ship 239 pounds of marijuana to Rhode Island from Pennsylvania in December 2013, announced United States Attorney Peter F. Neronha and Michael S. Shea, Acting Special Agent in Charge Homeland Security Investigations (HSI) for New England.
Appearing before U.S. District Court Chief Judge William E. Smith, Benjamin Daniels pleaded guilty to conspiracy to distribute and posses with the intent to distribute fifty kilograms or more of marijuana. His brother, Michael Daniels, 32, of Tiverton, R.I., admitting to his role in the conspiracy, pleaded guilty on August 28, 2014, to conspiracy to distribute and posses with the intent to distribute fifty kilograms or more of marijuana.
According to information presented to the court, in December 2013, HSI agents in Pittsburgh, in conjunction with Customs and Border Protection Air and Marine Division in Riverside, CA, conducted an investigation of a single-engine aircraft located at an airport in New Castle, PA. A court authorized search of the aircraft resulted in the discovery of twelve sealed boxes marked “Sun Max, Hot Water Solutions” which contained a total of 239 pounds of marijuana. HSI agents determined that Benjamin Daniels arranged for the pilot to fly the packages to New England for delivery, either to Benjamin Daniels or a person designated by him.
According to information presented to the court, on December 16, 2013, federal agents followed the shipment from Pennsylvania to North Central Airport in Smithfield, RI. Once on the ground, at the direction of Benjamin Daniels, the pilot made arrangements to transport the boxes to a hotel in Lincoln, RI. Once at the hotel, the pilot was instructed by Benjamin Daniels to meet up with a person who looked just like him. Federal agents watched as Michael Daniels pulled into the hotel parking lot, met with the pilot and began loading the boxes into a rented vehicle that he was driving. HSI agents arrested Michael Daniels, and seized the twelve boxes of marijuana and $4,694 in cash found on Michael Daniels’ person.
Michael Daniels is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on November 14, 2014. Benjamin Daniels is scheduled to be sentenced on December 19, 2014.
Conspiracy to distribute and posses with the intent to distribute fifty kilograms or more of marijuana is punishable by statutory penalties of up to 20 years in federal prison, a fine of up to $1,000,000 and a term of supervised release of up to life, with a minimum mandatory term of 3 years.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The Rhode Island State Police High Intensity Drug Trafficking Area Task Force and Warwick Police Department assisted in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Bay Area Resident Pleads Guilty to Tax EvasionRead the Press Release
FRESNO, Calif. — Bay Area resident William James Kennedy, 68, pleaded guilty today to making and subscribing a false tax return, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kennedy sent tax returns to the Fresno IRS office in 2002, 2003, 2004 and 2005, in which he underreported his taxable income. Kennedy, as a financial advisor, touted a variety of tax avoidance schemes, such as the use of corporation “soles” (a corporate form that enables religious leaders to hold property and conduct business for the religious entity) and debt elimination programs, to his clients in order to allow them to avoid paying income taxes. For his financial services, Kennedy was compensated by his clients but failed to properly report that income on his tax returns. In 2002, he claimed an improper charitable deduction to an entity that was one of his own corporation soles. As a result of Kennedy’s conduct, the United States incurred a tax loss of approximately $627,000. As part of his plea agreement, Kennedy will pay restitution to the IRS in this amount.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
Kennedy is scheduled to be sentenced by United States District Judge Anthony W. Ishii on November 24, 2014. Kennedy faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Barrington Bank Robber Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Pierre S. Rheau, 34, of Providence, was sentenced on Friday to 63 months in federal prison for robbing a Barrington branch office of Bank of America while armed with a BB gun, announced United States Attorney Peter F. Neronha, Barrington Police Chief John M. LaCross, East Providence Police Chief Christopher J. Parella and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Rheau to serve 3 years supervised release upon completion of his prison term and to pay restitution to the bank in the amount of $4,871. Rheau pleaded guilty on May 14, 2014, to bank robbery and conspiracy to commit bank robbery, as charged in a two-count federal indictment.
A co-defendant in this matter, David Lasseque, 33, of Providence, was convicted at trial by a jury on June 24, 2014, of one count each of bank robbery and conspiracy to commit bank robbery. Lassegue is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 26, 2014.
According to information presented to the court, late in the afternoon of July 12, 2013, Pierre Rheau entered the Bank of America branch office while brandishing a .177 caliber BB gun. Rheau demanded money from bank tellers. Rheau fled the bank with approximately $4,871 in cash and returned to a vehicle operated by David Lasseque.Responding to a report of a bank robbery, members of the Barrington Police Department attempted to affect a traffic stop of the vehicle being driven by Lasseque. However, Lasseque refused to comply and fled, driving into East Providence with police vehicles in pursuit. The pursuit ended when Lasseque crashed his vehicle into an East Providence Police cruiser, injuring an officer. Lasseque attempted to flee on foot, but he was quickly apprehended. Rheau, who had been in the back seat of the vehicle, was arrested as he attempted to exit the vehicle. From inside the vehicle, officers seized clothing, sunglasses and latex gloves that matched the description witnesses stated were worn by the bank robber.
Additionally, officers seized a BB gun and a pile of loose money.
Both men have been detained since their arrest.
The cases are being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
Warren Police and Rhode Island State Police assisted Barrington and East Providence Police and the FBI in the investigation of this matter.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Baltimore Felon Exiled to 15 Years in Prison for Armed CarjackingRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced James Kidd, age 28, of Baltimore, Maryland, today to 15 years in prison, followed by three years of supervised release, for carjacking. Judge Hollander found that Kidd is a career offender, based on two previous convictions for robbery and drugs.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Kidd’s plea agreement, on September 9, 2012, Kidd approached the driver of a Ford Expedition and said he would pay him for a ride. Kidd asked the driver to take him from the corner of North Avenue and Charles Street to the 5800 block of Oakview Road in Baltimore to pick up his girlfriend and kids. Once they arrived at the location, Kidd took out a silver handgun, racked the slide to load the gun, pointed the gun at the driver, and ordered the driver out of the car, demanding the driver’s money and cell phone. The driver gave Kidd his two cell phones and his wallet (which contained $2) and got out of the vehicle. Kidd ordered the driver to lie on the ground and drove away.
On September 12, 2012, in relation to a burglary investigation, Baltimore City police officers were called to 2010 North Patterson Avenue in Baltimore and recovered a loaded 9mm .380 handgun from Kidd’s front pants pocket. That weapon matched the description of the gun given by the victim of the carjacking, and was stolen from another residence on North Patterson Avenue. On September 17, the carjacking victim’s phone was recovered from 2010 North Patterson Avenue.
United States Attorney Rod J. Rosenstein commended the ATF, FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg and Debra L. Dwyer, who prosecuted the case.
Bakersfield Man Pleads Guilty in Methamphetamine CaseRead the Press Release
FRESNO, Calif. —Dimas Mazon, 29, of Bakersfield, pleaded guilty today to conspiring to distribute and possess with the intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on October 23, 2012, Mazon arranged a one-pound methamphetamine sale. Mazon also admitted that the conspiracy involved approximately 444 grams of pure methamphetamine.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southern Tri-County HIDTA Task Force and the Bakersfield Police Department. Assistant United States Attorney Kevin Rooney is prosecuting the case.
Mazon is detained and being held without bail. He is scheduled to be sentenced on December 13, 2014, by United States District Judge Lawrence J. O'Neill. Mazon faces a possible maximum sentence of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Bakersfield Drug Dealer Sentenced to over 11 Years in PrisonRead the Press Release
FRESNO, Calif. —Gamaliel Salas-Mendoza, aka Rene Salas-Mendoza (Salas), 38, an undocumented alien from Mexico, was sentenced today to 11 years and eight months in prison for conspiring with his cousin Miguel Sanchez-Mendoza, 46, to distribute and to possess with the intent to distribute methamphetamine, heroin, and cocaine, United States Attorney Benjamin B. Wagner announced. United States District Judge Anthony W. Ishii also ordered Salas to register as a drug offender.
Salas was sentenced following his guilty plea in June. According to court documents, Salas and his cousin maintained a stash house in Bakersfield from where law enforcement officers seized seven pounds of methamphetamine, one and a half pounds of cocaine, and a half‑pound of heroin, all packaged for sale. In addition to the drugs, officers found and seized digital scales, precursor chemicals used in the manufacture of methamphetamine, and $9,483 in cash. The cash has been forfeited as proceeds of drug trafficking.
Sanchez pleaded guilty and was sentenced on April 28, 2014, to eight years in prison. Both men are subject to deportation following completion of their sentences.
This case is the product of an investigation by the U.S. Drug Enforcement Administration, Kern County Sheriff’s Office Narcotics Enforcement Team, Kern County Sheriff’s Office Major Violators Unit, and the California Multijurisdictional Methamphetamine Enforcement Team. Assistant United States Attorney Karen Escobar prosecuted the case.
Attorney General Holder Records Message for Cartoon Network’s “I Speak up” Campaign to Combat BullyingRead the Press Release
The Justice Department announced Monday that Attorney General Eric Holder has recorded a video message as part of the Cartoon Network’s “I Speak Up” campaign to combat bullying. The project urges young people to speak up in order to help bring bullying situations to an end.
The goal of the campaign is to collect one million user-generated videos that unite the voices of kids, parents, educators, celebrities and government officials all saying “I Speak Up.” Attorney General Holder joined other notable voices such as Education Secretary Arne Duncan, as well as actors and professional athletes, in recording a message for the campaign.
In his video, the Attorney General delivers the following message: “The violence of bullying has a devastating effect on young people. Help me defend childhood by speaking up for those who – too often – cannot speak for themselves. I’m Attorney General Eric Holder, and I am joining Cartoon Network to challenge one million people to speak up against bullying. Please go to StopBullyingSpeakUp.com to learn more.”
The full video of the Attorney General’s message is available at https://www.youtube.com/watch?v=NMH5Abirdaw.
Attorney General Holder Records Message for Cartoon Network’s “I Speak up” Campaign to Combat BullyingRead the Press Release
WASHINGTON—The Justice Department announced Monday that Attorney General Eric Holder has recorded a video message as part of the Cartoon Network’s “I Speak Up” campaign to combat bullying. The project urges young people to speak up in order to help bring bullying situations to an end.
The goal of the campaign is to collect one million user-generated videos that unite the voices of kids, parents, educators, celebrities and government officials all saying “I Speak Up.” Attorney General Holder joined other notable voices such as Education Secretary Arne Duncan, as well as actors and professional athletes, in recording a message for the campaign.
In his video, the Attorney General delivers the following message: “The violence of bullying has a devastating effect on young people. Help me defend childhood by speaking up for those who – too often – cannot speak for themselves. I’m Attorney General Eric Holder, and I am joining Cartoon Network to challenge one million people to speak up against bullying. Please go to StopBullyingSpeakUp.com to learn more.”
The full video of the Attorney General’s message is available at https://www.youtube.com/watch?v=NMH5Abirdaw.
Attorney General Holder Announces Pilot Program to Counter Violent ExtremistsRead the Press Release
Attorney General Eric Holder announced Monday that the Justice Department will launch a new series of pilot programs in cities across the country to bring together community representatives, public safety officials and religious leaders to counter violent extremism. The new programs will be run in partnership with the White House, the Department of Homeland Security, and the National Counterterrorism Center.
“Today, few threats are more urgent than the threat posed by violent extremism,” Attorney General said in a video message posted on the Justice Department’s website. “And with the emergence of groups like ISIL, and the knowledge that some Americans are attempting to travel to countries like Syria and Iraq to take part in ongoing conflicts, the Justice Department is responding appropriately.”
The complete text of the Attorney General’s video message is below:
“Last week, millions of Americans paused to mark the 13th anniversary of the attacks of September 11, 2001 – the deadliest acts of terror ever carried out on American soil. For my colleagues at every level of our nation’s Department of Justice, and for me, this anniversary was also a solemn reminder of our most important obligation: to ensure America’s national security and protect the American people from a range of evolving threats.
“Today, few threats are more urgent than the threat posed by violent extremism. And with the emergence of groups like ISIL, and the knowledge that some Americans are attempting to travel to countries like Syria and Iraq to take part in ongoing conflicts, the Justice Department is responding appropriately.
“Through law enforcement agencies like the FBI, American authorities are working with our international partners and Interpol to disseminate information on foreign fighters in Syria and Iraq, including individuals who have traveled from the United States. We have established processes for detecting American extremists who attempt to join terror groups abroad. And we have engaged in extensive outreach to communities here in the U.S. – so we can work with them to identify threats before they emerge, to disrupt homegrown terrorists, and to apprehend would-be violent extremists. But we can – and we must – do even more.
“Today, I am announcing that the Department of Justice is partnering with the White House, the Department of Homeland Security, and the National Counterterrorism Center to launch a new series of pilot programs in cities across the nation. These programs will bring together community representatives, public safety officials, religious leaders, and United States Attorneys to improve local engagement; to counter violent extremism; and – ultimately – to build a broad network of community partnerships to keep our nation safe. Under President Obama’s leadership, along with our interagency affiliates, we will work closely with community representatives to develop comprehensive local strategies, to raise awareness about important issues, to share information on best practices, and to expand and improve training in every area of the country.
“Already, since 2012, our U.S. Attorneys have held or attended more than 1,700 engagement-related events or meetings to enhance trust and facilitate communication in their neighborhoods and districts. This innovative new pilot initiative will build on that important work. And the White House will be hosting a Countering Violent Extremism summit in October to highlight these and other domestic and international efforts. Ultimately, the pilot programs will enable us to develop more effective – and more inclusive – ways to help build the more just, secure, and free society that all Americans deserve.
“As we move forward together, our work must continue to be guided by the core democratic values – and the ideals of freedom, openness, and inclusion – that have always set this nation apart on the world stage. We must be both innovative and aggressive in countering violent extremism and combating those who would sow intolerance, division, and hate – not just within our borders, but with our international partners on a global scale. And we must never lose sight of what violent extremists fear the most: the strength of our communities; our unwavering respect for equality, civil rights, and civil liberties; and our enduring commitment to justice, democracy, and the rule of law.”
The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Army Sergeant Pleads Guilty for Scheme to Defraud the MilitaryRead the Press Release
WASHINGTON – An Army sergeant pleaded guilty today to bribery and conspiracy to defraud the government for his role in a scheme to steal more than one million gallons of fuel from the U.S. military for resale on the black market in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina, Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service (DCIS) Southeast Field Office, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division, Director Frank Robey of the U.S. Army Criminal Investigation Command (CID) Major Procurement Fraud Unit (MPFU) and Special Inspector General for Afghanistan Reconstruction John F. Sopko made the announcement.
Christopher Ciampa, 32, of Lillington, North Carolina, entered his guilty plea before U.S. District Court Judge Terrence W. Boyle of the Eastern District of North Carolina. The sentencing hearing was scheduled for the week of December 15, 2014.
“Sergeant Ciampa took bribes to help steal millions of dollars’ worth of fuel meant to support U.S. military operations in Afghanistan,” said Assistant Attorney General Caldwell. “His greed put his fellow soldiers at greater risk, and his actions stand in stark contrast to the integrity and sacrifice demonstrated every day by the men and women of our Armed Forces.”
“The DCIS, with our investigative partners, continues to aggressively pursue those who deprive the Department of Defense of much needed resources, such as fuel, critical to accomplishing its global missions,” said DCIS Special Agent in Charge Khin. “Corruption and theft in a combat environment, especially on such a large scale, degrade the effectiveness of the U.S. armed forces, and increases the danger to our warfighters by diverting those resources to our enemies
“Sergeant Christopher Ciampa betrayed his unit and nation for personal profit by entering into illegal relationships in order to personally profit from the sale and transport of fuel valued at millions of dollars,” said FBI Special Agent in Charge Strong. “These actions, especially in a wartime environment, damage the reputation of all soldiers and impede the success of coalition war efforts. Those who put the reputation and lives of their fellow servicemen and women at risk will be aggressively pursued by the FBI and our military partners dedicated to upholding justice.”
“Our highly-trained special agents are experts in fraud investigations and untangling webs of lies and deceit,” said CID MPFU Director Robey. “Whether an individual is in or out of uniform, it makes no difference, we will do everything in our investigative power to see those who defraud the Army brought to justice.”
“The crimes alleged in this case are serious and describe actions that undermine our mission in Afghanistan,” said Special Inspector General Sopko. “SIGAR will continue to work tirelessly to protect the American taxpayers’ hard earned money and bring the full weight of the justice system to bear on anyone who seeks to rob the U.S. government.”
According to his plea agreement, Ciampa was deployed to Afghanistan with the 3rd Special Forces Group Service Detachment and was assigned to Camp Brown at Kandahar Air Field between February 2011 and January 2012. During the deployment, one of Ciampa’s chief responsibilities was management of the Transportation Movement Requests (TMRs) for fuel and other items in support of military units in Afghanistan paid for by the U.S. government.
Over the course of the conspiracy, Ciampa and others created and submitted false TMRs for the purchase of thousands of gallons of fuel that were neither necessary nor used by military units. Instead, Ciampa and his co-conspirators stole the fuel and resold it on the black market in neighboring towns. Between February 2011 and December 2011, they created false TMRs for 114 large fuel tanker trucks, which could each carry approximately 10,000 gallons of fuel. All of the TMRs were awarded to a single Afghan trucking company, despite significantly higher rates charged by this company.
As a result of the criminal conduct, the United States suffered a total loss of $10,812,000. The loss resulted from stolen fuel and payments on the fraudulent TMRs in the following amounts: $9,120,000 in lost fuel and $1,692,000 in fraudulent TMRs for the 114 large tanker trucks.
Ciampa admitted that he and his co-conspirators sent some of the illicit proceeds back to the United States via wire transfer and carried some of the cash in their luggage, and Ciampa hid $180,000 of stolen funds inside stereo equipment that he shipped back to North Carolina with his unit’s gear. He used his share of the proceeds from the scheme to purchase a truck and other personal items.
The case was investigated by DCIS, FBI, CID MPFU and the Special Inspector General for Afghanistan Reconstruction (SIGAR). The case is being prosecuted by Trial Attorney Wade Weems on detail to the Criminal Division’s Fraud Section from SIGAR and Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina.
Armed Drug Trafficking Pleads Guilty to Drug, Firearms ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Luis Abril, 31, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to conspiracy to possess with intent to distribute and to distribute 28 grams or more of crack cocaine and 100 grams or more of heroin, and possession of firearms in furtherance of a drug trafficking crime. The charges carry mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $5,250,000 or both.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Abril was a member of a Rochester-based drug conspiracy led by Raymond Collazo, in which large quantities of crack cocaine and heroin were processed, packaged and resold in various quantities in Rochester. Abril and Collazo utilized multiple locations, including 617 Ridgeway Avenue in Rochester to store, process and distribute the narcotics, and armed themselves while doing so.
On April 24, 2014, Abril, Collazo and others were arrested following the execution of multiple search warrants in Rochester, as well as Collazo’s residence in Orlando, Florida. Abril and Collazo were taken into custody at 617 Ridgeway Avenue, where officers seized over 12 grams of cocaine packaged for sale, 200 grams of heroin, three loaded handguns, one of which was stolen, dozens of rounds of ammunition, $2,466 in U.S. currency, and paraphernalia for processing, packaging, and distributing cocaine and heroin.
Charges are pending against Collazo. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The conviction is the culmination of an investigation by the Organized Crime Drug Enforcement Task Force, and included involvement by the part of Rochester Police Department, under the direction of Chief Michael Ciminelli, Special Agents of the Federal Bureau of Investigation, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, New York Field Division, Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
Sentencing is scheduled for December 17, 2014 at 10:00 am before Judge Siragusa.Albuquerque Man Pleads Guilty to Possessing Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
ALBUQUERQUE – Ronald Lewis Chavez, 46, of Albuquerque, N.M., pleaded guilty today to possessing a firearm in furtherance of a drug trafficking crime charge. Under the terms of his plea agreement, Chavez will be sentenced to 12 years in federal prison followed by a term of not more than five years of supervised release.
Chavez was arrested on Jan. 27, 2014, based on a criminal complaint charging him with possession of methamphetamine with intent to distribute and possession of a firearm by a convicted felon. Chavez subsequently was indicted in Feb. 2014, charging him with possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm and ammunition.
According to court filings, law enforcement officers seized a handgun located underneath the mattress of Chavez’ bed and ammunition that was concealed in two black boxes next to the bed when they executed a search warrant at his residence in southwest Albuquerque on Jan. 24, 2014. Officers also seized plastic bags containing methamphetamine from a fanny pack buckled around Chavez’ torso.
Today Chavez pled guilty to possession of a firearm in furtherance of a drug trafficking crime. Chavez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Louis E. Valencia.
Sunday 14 September 2014
Westerly Resident Admits to Fraudulently Collecting Federal Disaster Unemployment Assistance, Social Security Disability Benefits, SNAP BenefitsRead the Press Release
PROVIDENCE, R.I. – Donald S. Gingerella, 53, of Westerly, pleaded guilty in U.S. District Court in Providence on Friday to theft of government funds and Social Security fraud, after an investigation revealed that since January 2008, Gingerella collected nearly $83,000 from various federally funded public assistance programs to which he was not entitled. He faces statutory penalties of up to 25 years in federal prison when he is sentenced on December 11, 2014.
Donald Gingerella’s guilty plea is announced by United States Attorney Peter F. Neronha; Robert L. Panella, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations; William G. Squires, Special Agent in Charge of the Northeast Region of the United States Department of Agriculture, Office of Inspector General; and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
At the time of his guilty plea, Gingerella admitted to the court that he applied for and collected a total of $82,346 in public assistance payments based on fraudulent statements made to the Rhode Island Department of Labor and Training (RIDLT), the Social Security Administration (SSA) and the Supplemental Nutrition Assistance Program (SNAP), all federally funded programs.
According to information presented to the court, in November 2012, following Hurricane Sandy, Gingerella applied for Disaster Unemployment Assistance benefits, claiming the storm resulted in his being unemployed. As proof of employment Gingerella provided an IRS document claiming income in 2011 from self-employment.Among the false claims he made on his application to RIDLT, Gingerella stated that he was not receiving SNAP benefits and that he was not receiving Social Security disability benefits. RIDLT investigators researched Gingerella’s claims and determined that they were false. While investigating Gingerella’s November 2012 claim for benefits, RIDLT investigators discovered that Gingerella was the recipient of Disaster Unemployment Assistance benefits as the result of the March 2010 floods. After denying his immediate request for assistance, all of the information gathered by RIDLT was turned over to the U.S. Department of Labor – Office of Inspector General (DOL- OIG) for further investigation.
According to information presented to the court, the investigation by DOL-OIG revealed that Gingerella received federally funded unemployment benefits following the March 2010 flood, based on a claim submitted to RIDLT. At the time, Gingerella claimed that his business, AAA Recreational, was “under six feet of water” and that most of his equipment “was damaged and most got sucked away in [the] river.” The most recent investigation revealed that no such business existed. At the time of his guilty plea, Gingerella admitted to the court that, based on fraudulent statements he made following the March 2010 flood, he received federally funded unemployment compensation totaling $15,417 to which he was not entitled.
The investigation by DOL-OIG also determined that from approximately 2008-2012, numerous unexplained cash deposits were made into numerous business bank accounts controlled by Gingerella, as well as paychecks he earned while working as a lifeguard in Westerly and while working at a marina. Upon discovering this information, agents investigated Gingerella’s eligibility for SNAP benefits and SSDI benefits.The investigation revealed that in November 2006, when applying for SNAP benefits and in subsequent re-certifications, Gingerella inflated his living expenses and failed to report income, including cash deposited into his bank accounts. The investigation revealed that Gingerella began to receive SNAP benefits in 2006. At the time of his guilty plea, Gingerella admitted to failing to disclose income and making false statements which led to him receiving at least $11,366 in SNAP benefits to which he was not entitled between 2008-2012.
Additionally, it was learned that Gingerella owned and operated several businesses over the years, including Don’s Beach Parking, Three Fish Fisheries, AAA Recreational, East Coast Hospice Furniture LLC, and Goldstar Rentals and Sales LLC. At different times, these businesses were listed as the owner of Gingerella’s Westerly property and of some of his vehicles, including three late model trucks and a 2009 Kawasaki motorcycle. Gingerella received income from work performed for these businesses, which he failed to report to the Social Security Administration. At the time of his guilty plea, Gingerella admitted that he knowingly failed to report his return to work and his earned income, and that he received $56,563 in SSDI benefits to which he was not entitled.
Appearing before U.S. District Court Judge Mary M. Lisi, Gingerella pleaded guilty to two counts of theft of government property and one count of Social Security fraud.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]
Friday 12 September 2014
York Man Charged with Being A Convicted Felon in Possession of A FirearmRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shannon Williams, age 36, of York, Pennsylvania was indicted and charged with being a felon in possession of a firearm and ammunition.
According to U.S. Attorney Peter Smith, on March 19, 2014, police were dispatched to a York residence in response to a domestic disturbance complaint. During a consent search, police located a gun allegedly used to threaten the victim of the domestic incident. Williams is a previously convicted felon prohibited from possessing firearms. If convicted, Williams faces a term of imprisonment of up to ten years and a fine of $250,000.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Wisconsin Pharmacist and Nevada Pharmacologist <br /> Charged with Smuggling Counterfeit Pharmaceuticals<br /> Using a Costa Rican Internet PharmacyRead the Press Release
A Wisconsin pharmacist and a Nevada pharmacologist were arraigned on an indictment today in Federal Court in Central Islip, New York, before United States Magistrate Judge Gary Brown. The defendants are charged with conspiring to supply at least four million misbranded and counterfeit pharmaceuticals to an illegal Internet pharmacy based in Costa Rica that catered to U.S. customers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; United States Attorney Loretta E. Lynch of the Eastern District of New York; Assistant Director in Charge George C. Venizelos of the FBI’s New York Field Office; Acting Special Agent in Charge James Royal of the U.S. Food and Drug Administration (FDA), Office of Criminal Investigations’ New York Field Office and Special Agent in Charge James T. Hayes Jr. of Homeland Security Investigations’ (HSI) New York Field Office made the announcement.
The 10-count indictment charges Marla Ahlgrimm, 59, of Madison, Wisconsin, and Balbir Bhogal, 67, of Las Vegas, Nevada, with importing and distributing controlled substances and misbranded drugs, trafficking in counterfeit drugs, mail and wire fraud, smuggling and money laundering.
According to the indictment and information presented at the arraignment, from June 2007 through May 2010, Ahlgrimm and Bhogal, who is a dual U.S. and Indian citizen, allegedly arranged for the manufacture in India of millions of tablets of controlled substances, including alprazolam and phentermine, and prescription drugs, including carisoprodol and counterfeit Viagra. Although they did not hold an importer’s license from the Drug Enforcement Administration, the defendants allegedly arranged for the importation of the same drugs into the United States. Neither the incoming packages nor the tablets themselves were labeled or identified as controlled substances or prescription drugs.
The drugs were allegedly intended to supply an Internet pharmacy based in Costa Rica that catered to customers within the United States, including Brooklyn and Queens, New York. The Internet pharmacy used call centers and websites based outside the United States, but filled the orders from inside the United States using individuals who were not licensed pharmacists to bottle, label and drop-ship the drugs. To facilitate the operation, the defendants allegedly wired money from Costa Rica to the United States and then to India.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
The case was jointly investigated by the FBI, FDA’s Office of Criminal Investigations, and HSI. The case is being prosecuted by Senior Counsel Evan C. Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William P. Campos of the Eastern District of New York.Wisconsin Pharmacist and Nevada Pharmacologist Charged with Smuggling Counterfeit Pharmaceuticals Using A Costa Rican Internet PharmacyRead the Press Release
WASHINGTON – A Wisconsin pharmacist and a Nevada pharmacologist were arraigned on an indictment today in federal court in Central Islip, New York, before United States Magistrate Judge Gary Brown. The defendants are charged with conspiring to supply at least four million misbranded and counterfeit pharmaceuticals to an illegal Internet pharmacy based in Costa Rica that catered to U.S. customers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; United States Attorney Loretta E. Lynch of the Eastern District of New York; Assistant Director in Charge George C. Venizelos of the FBI’s New York Field Office; Acting Special Agent in Charge James Royal of the U.S. Food and Drug Administration (FDA), Office of Criminal Investigations’ New York Field Office and Special Agent in Charge James T. Hayes Jr. of Homeland Security Investigations’ (HSI) New York Field Office made the announcement.
The 10-count indictment charges Marla Ahlgrimm, 59, of Madison, Wisconsin, and Balbir Bhogal, 67, of Las Vegas, Nevada, with importing and distributing controlled substances and misbranded drugs, trafficking in counterfeit drugs, mail and wire fraud, smuggling and money laundering.
According to the indictment and information presented at the arraignment, from June 2007 through May 2010, Ahlgrimm and Bhogal, who is a dual U.S. and Indian citizen, allegedly arranged for the manufacture in India of millions of tablets of controlled substances, including alprazolam and phentermine, and prescription drugs, including carisoprodol and counterfeit Viagra. Although they did not hold an importer’s license from the Drug Enforcement Administration, the defendants allegedly arranged for the importation of the same drugs into the United States. Neither the incoming packages nor the tablets themselves were labeled or identified as controlled substances or prescription drugs.
The drugs were allegedly intended to supply an Internet pharmacy based in Costa Rica that catered to customers within the United States, including Brooklyn and Queens, New York. The Internet pharmacy used call centers and websites based outside the United States, but filled the orders from inside the United States using individuals who were not licensed pharmacists to bottle, label and drop-ship the drugs. To facilitate the operation, the defendants allegedly wired money from Costa Rica to the United States and then to India.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
The case was jointly investigated by the FBI, FDA’s Office of Criminal Investigations, and HSI. The case is being prosecuted by Senior Counsel Evan C. Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William P. Campos of the Eastern District of New York.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Justin Magee, 26, of South Bend, Indiana pled guilty to the felony offenses of attempting to damage a motor vehicle by means of fire and being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 12/15/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Isaiah Mark Samelton, 19, of South Bend, Indiana pled guilty to the felony offense of being a felon in possession of firearm and ammunition. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 12/22/ 2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Frederick Dotson 39, of South Bend, Indiana was sentenced to 60 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of possession of a firearm in furtherance of a drug trafficking crime. According to documents filed in this case, Dotson sold cocaine out of his residence in St. Joseph County and possessed a Hi Point .40 cal. handgun to protect his drug business. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Jose Mario Sanchez, 40, of Goshen, Indiana was sentenced to 24 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of conspiring to distribute cocaine. According to documents filed in this case, from September 2013 up to and including October 2013, Sanchez was involved with several individuals, in distributing cocaine in the Northern District of Indiana. On several occasions Sanchez and others delivered cocaine to an individual Sanchez was unaware was working for law enforcement. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Jose Guadalupe Leal, 39, of Elkhart, Indiana was sentenced to 97 months imprisonment with 3 years supervised release after pleading guilty to the felony offenses of possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. According to documents filed in this case, on August 28th, 2013, Leal lived in Elkhart, Indiana and had in his possession about an ounce of cocaine he intended to sell. While executing a search warrant on Leal’s residence, law enforcement officers located the narcotics, drug dealing paraphernalia and a loaded semi-automatic pistol hidden in Leal’s bedroom. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney William Grimmer.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Mark William Bartell, 28, of Gary, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 11/24/2014. This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
- Robinson Morales, 37, of Hammond, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 12/5/2014. This case is being prosecuted by Assistant United States Attorney Nick Padilla.
- Jordan Schwind, 26, of South Bend, Indiana pled guilty to the felony offense of conspiracy to distribute heroin. This charge was filed as a result of an investigation by the Drug Enforcement Agency. Sentencing has been set for 12/3/2014. This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Augustine L. Luna, 36, of Fort Wayne, Indiana was sentenced to 120 months imprisonment, 5 years supervised release, and ordered to pay a $100 special assessment after pleading guilty to the felony offense of knowingly conspiring to distribute and possess with intent to distribute 5 kilograms or more of cocaine. According to documents filed in this case, this investigation began with controlled buys of powder and crack cocaine and progressed with wiretaps of several cocaine suppliers. Augustine Luna was identified as a distributor in one of the drug supply networks. This case was the result of an investigation by Federal Bureau of Investigation, G-Net, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force, and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Joseph Luna, 37, of Fort Wayne, Indiana was sentenced to 135 months imprisonment, 5 years supervised release, and ordered to pay a $100 special assessment after pleading guilty to the felony offense of knowingly conspiring to distribute and possess with intent to distribute 5 kilograms or more of cocaine. According to documents filed in this case, this investigation began with controlled buys of powder and crack cocaine and progressed with wiretaps of several cocaine suppliers. Joseph Luna was identified as a distributor in one of the drug supply networks. This case was the result of an investigation by Federal Bureau of Investigation, G-Net, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force, and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Narciso G. Soto, III, 32, of Fort Wayne, Indiana was sentenced to 87 months imprisonment, 2 years supervised release, and ordered to pay a $100 special assessment after pleading guilty to the felony offense of maintaining a drug involved premises. According to documents filed in this case, this investigation began with controlled buys of powder and crack cocaine and progressed with wiretaps of several cocaine suppliers. Narciso Soto was identified as operating a stash location for several of the distributors in one of the drug supply networks. This case was the result of an investigation by Federal Bureau of Investigation, G-Net, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force, and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
Warren County, N.J., Man Charged with Stalking and Sexual Exploitation of MinorsRead the Press Release
NEWARK, N.J. – A Washington, New Jersey, man is charged with stalking a female minor and soliciting another to produce images of herself engaging in sexually explicit conduct, U.S. Attorney Paul J. Fishman announced today.
Brandon McIntyre, 22, is charged by complaint with one count of stalking and one count of sexual exploitation of a child. He is scheduled to appear today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
McIntyre allegedly met various female minors through Facebook, sometimes pretending to be a teenage girl. Disguised under the Facebook alias of “Katie Thompson,” McIntyre urged one female minor to go on trips with him. When she refused, McIntyre, still using the alias, threatened to hurt her boyfriend and kill her family.
During his interaction with another female minor, McIntyre allegedly sent images of his genitals and asked her to send nude images of herself. When the victim refused, McIntyre claimed he was a police officer and would make her life a “living hell.” McIntyre threatened the victim with fines, school expulsion, and jail time until she sent him pictures of her engaging in sexually explicit conduct.
The charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The charge of stalking carries maximum penalty of five years in prison and a $250,000 fine.U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and Hunterdon County Prosecutor’s Office for the investigation leading to the arrest. He also thanked special agents from FBI in Anchorage, Alaska, and Albany, New York, for their assistance.
The government is represented by Special Assistant U.S. Attorney Jillian J. Reyes of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.14-323
McIntyre, Brandon Complaint
United States Seeks Civil Contempt Against Bayer Corporation for Failure to Substantiate Promotional Claims for Phillips’ Colon HealthRead the Press Release
The Department of Justice announced today that it filed a motion to show cause why Bayer Corporation should not be held in civil contempt for violating a court order in the U.S. District Court for the District of New Jersey. The court order, entered in 2007 in United States v. Bayer Corporation, prohibits Bayer from making unsubstantiated claims for any dietary supplement it promotes or sells. The government alleges in today’s motion that Bayer promotes one of its products, Phillips’ Colon Health, using claims about the product’s purported benefits without having evidence to substantiate those claims.
The court order prohibits Bayer from making any claim about the performance or efficacy of any dietary supplement, multivitamin or weight-control product unless, at the time Bayer makes the claim, the company possesses “competent and reliable scientific evidence” to support the claim. In its motion, the United States alleges that Bayer expressly claims Phillips’ Colon Health can “defend against” occasional constipation, diarrhea, and gas and bloating, and impliedly claims that Phillips’ Colon Health prevents, treats and cures constipation, diarrhea, and gas and bloating, even though the company lacks competent and reliable scientific evidence for those claims.
“Bayer is required to abide by a longstanding court order to back up claims it makes about the products it sells,” said Assistant Attorney General Stuart F. Delery for the department’s Civil Division. “The Department of Justice will not tolerate companies that seek to gain an unfair advantage over their competitors by promoting to consumers unsubstantiated claims about the health benefits of their products.”
In its motion, the United States describes Bayer’s multimillion dollar nationwide marketing campaign for Phillips’ Colon Health, which includes print advertisements and television commercials featuring “The Colon Lady,” in addition to claims on the product’s packaging. The motion further alleges that consumers have paid hundreds of millions of dollars for Phillips’ Colon Health, even though Bayer lacks the evidence to support the claims of the purported benefits of this product.
The Consumer Protection Branch of the Civil Division and the U.S. Attorney’s Office for the District of New Jersey filed the motion for contempt with the assistance of the Federal Trade Commission (FTC). The matter is filed as United States v. Bayer Corporation, No. 07-0001, in the District of New Jersey.
In 2007, the United States filed a civil complaint against Bayer alleging that Bayer marketed its One-A-Day WeightSmart multivitamin and dietary supplement with unsubstantiated claims that, among other things, One-A-Day WeightSmart helped prevent some of the weight gain associated with a decline in metabolism in users over the age of 30. The complaint alleged that those unsubstantiated claims violated an order issued in 1991 by the FTC against Bayer’s predecessor, Miles Inc., that required all claims about the benefits of One-A-Day brand vitamins to be substantiated by competent and reliable scientific evidence.
In order to resolve the complaint’s allegations, in 2007, Bayer agreed to pay a $3.2 million civil penalty and agreed that it would not make unsubstantiated representations regarding the benefits, performance, efficacy, safety or side effects of any dietary supplement, multivitamin or weight-control product. In 2007, the U.S. District Court for the District of New Jersey entered an order resolving the complaint’s allegations and prohibiting Bayer from making unsubstantiated claims about its products.
Assistant Attorney General Delery commended the efforts of the FTC to investigate Bayer’s compliance with the 2007 court order and for referring this latest matter for enforcement. This case is being handled by the Civil Division’s Consumer Protection Branch.
This motion contains a set of allegations. If this motion is litigated, the government would need to prove the allegations by clear and convincing evidence.
United States Seeks Civil Contempt Against Bayer Corporation for Failure to Substantiate Promotional Claims for Phillips' Colon HealthRead the Press Release
WASHINGTON—The Department of Justice announced today that it filed a motion to show cause why Bayer Corporation should not be held in civil contempt for violating a court order in the U.S. District Court for the District of New Jersey. The court order, entered in 2007 in United States v. Bayer Corporation, prohibits Bayer from making unsubstantiated claims for any dietary supplement it promotes or sells. The government alleges in today’s motion that Bayer promotes one of its products, Phillips’ Colon Health, using claims about the product’s purported benefits without having evidence to substantiate those claims.
The court order prohibits Bayer from making any claim about the performance or efficacy of any dietary supplement, multivitamin or weight-control product unless, at the time Bayer makes the claim, the company possesses “competent and reliable scientific evidence” to support the claim. In its motion, the United States alleges that Bayer expressly claims Phillips’ Colon Health can “defend against” occasional constipation, diarrhea, and gas and bloating, and impliedly claims that Phillips’ Colon Health prevents, treats and cures constipation, diarrhea, and gas and bloating, even though the company lacks competent and reliable scientific evidence for those claims.
“Bayer is required to abide by a longstanding court order to back up claims it makes about the products it sells,” said Assistant Attorney General Stuart F. Delery for the department’s Civil Division. “The Department of Justice will not tolerate companies that seek to gain an unfair advantage over their competitors by promoting to consumers unsubstantiated claims about the health benefits of their products.”
In its motion, the United States describes Bayer’s multimillion dollar nationwide marketing campaign for Phillips’ Colon Health, which includes print advertisements and television commercials featuring “The Colon Lady,” in addition to claims on the product’s packaging. The motion further alleges that consumers have paid hundreds of millions of dollars for Phillips’ Colon Health, even though Bayer lacks the evidence to support the claims of the purported benefits of this product.
The Consumer Protection Branch of the Civil Division and the U.S. Attorney’s Office for the District of New Jersey filed the motion for contempt with the assistance of the Federal Trade Commission (FTC). The matter is filed as United States v. Bayer Corporation, No. 07-0001, in the District of New Jersey.
In 2007, the United States filed a civil complaint against Bayer alleging that Bayer marketed its One-A-Day WeightSmart multivitamin and dietary supplement with unsubstantiated claims that, among other things, One-A-Day WeightSmart helped prevent some of the weight gain associated with a decline in metabolism in users over the age of 30. The complaint alleged that those unsubstantiated claims violated an order issued in 1991 by the FTC against Bayer’s predecessor, Miles Inc., that required all claims about the benefits of One-A-Day brand vitamins to be substantiated by competent and reliable scientific evidence.
In order to resolve the complaint’s allegations, in 2007, Bayer agreed to pay a $3.2 million civil penalty and agreed that it would not make unsubstantiated representations regarding the benefits, performance, efficacy, safety or side effects of any dietary supplement, multivitamin or weight-control product. In 2007, the U.S. District Court for the District of New Jersey entered an order resolving the complaint’s allegations and prohibiting Bayer from making unsubstantiated claims about its products.
Assistant Attorney General Delery commended the efforts of the FTC to investigate Bayer’s compliance with the 2007 court order and for referring this latest matter for enforcement. This case is being handled by the Civil Division’s Consumer Protection Branch.
This motion contains a set of allegations. If this motion is litigated, the government would need to prove the allegations by clear and convincing evidence.
14-975
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Motion in Bayer 9-12-14
United States Attorney General Recognizes Federal Prosecutor in MississippiRead the Press Release
WASHINGTON – Mike Hurst, an Assistant United States Attorney in the Southern District of Mississippi, was recently recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony held this week in Washington D.C.
The Southern District of Mississippi was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building on Wednesday, September 10, 2014.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Mr. Hurst was awarded the Director’s Award for Superior Performance as a Criminal AUSA for the outstanding prosecution of the largest and most complex mortgage fraud Ponzi scheme in the history of the State of Mississippi, United States v. Charles H. Evans, Jr. and Jon Christopher Evans. AUSA Hurst’s efforts helped result in the defendants’ guilty pleas to money laundering and bank fraud; sentences of 14 years for Jon Christopher Evans and 20 years for Charles H. Evans, Jr.; a forfeited money judgment in the amount of $18,594,221.58; a loss calculation for sentencing purposes in the amount of $26,660,602.78; and restitution ordered to numerous banks and title insurance companies totaling $25,441,938.48. The case encompassed over $80 million dollars worth of loans involving almost 30 shell or fictitious corporations created by the defendants to launder their illegal proceeds, adversely affecting almost 50 financial institutions, local governments and hundreds of parcels of land in Mississippi and Texas. This prosecution was particularly significant given the sheer size, scope, length, and complexity of the scheme, as well as the difficult legal and logistical issues relating to calculating loss amounts for sentencing and restitution.
“We are pleased that the U.S. Department of Justice has recognized Assistant U.S. Attorney Hurst for his outstanding contribution to the Department and its mission,” said U.S. Attorney Davis.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Union County Resident Pleads Guilty to Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn September 11, 2014, Rusty J. Smith, 35, of Cobden, Illinois, pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that Smith was involved with co-defendant Ruth Diane Wiseman and others in the manufacture of methamphetamine. Wiseman and others supplied pseudoephedrine pills to Smith to use to manufacture methamphetamine. The offense occurred between 2012 and March 2014, in Union, Williamson, and Jackson Counties. The methamphetamine offense carries a penalty of up to 20 years in federal prison, to be followed by 3 years of supervised release, and a fine of $1,000,000. Smith is currently being held without bond pending a December 16, 2014, sentencing hearing. Wiseman has previously pled guilty and is awaiting sentencing. Two co-defendants have pled not guilty and are awaiting a jury trial.
The ongoing investigation is being conducted by the Union County Sheriff’s Office, Jackson County Sheriff’s Office, Illinois State Police, Williamson County Sheriff’s Office, Marion Police Department, Carbondale Police Department, Illinois State Police Methamphetamine Response Team and Drug Enforcement Administration. The 19th Judicial District Drug Task Force (Tennessee) assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
U.S. Attorney Machen Announces Formation of Conviction Integrity UnitInitiative Follows Comprehensive Review of Older CasesRead the Press Release
WASHINGTON – U.S. Attorney Ronald C. Machen Jr. today announced the creation of a Conviction Integrity Unit in the U.S. Attorney’s Office for the District of Columbia, promising a vigorous effort to identify and investigate cases that resulted in wrongful convictions. The unit also will make recommendations about ways to improve training, investigations, and prosecution practices to ensure the integrity of future convictions.
The unit will review cases in which defendants convicted of violent felonies can proffer new evidence that merits reconsideration, including those in which DNA testing of biological material may establish actual innocence. Cases will be reviewed by experienced prosecutors and investigators, who then will determine if further action is needed.
“As prosecutors, our goal is not to win convictions, but to do justice,” said U.S. Attorney Machen. “Although wrongful convictions remain a rare phenomenon, their consequences are tragic – for the defendants involved, for the victims of the crimes that remain unsolved, and for the community we work every day to protect. This new unit will work to uncover historical injustices and to make sure that we are doing everything in our power to prevent such tragedies in the future.”
This is the first Conviction Integrity Unit created within a U.S. Attorney’s Office. A number of prosecutors’ offices nationwide have established such units in recent years, including the Manhattan District Attorney’s Office and the Dallas County District Attorney’s Office.
Today’s announcement follows a four-year review by the U.S. Attorney’s Office of more than 2,000 files involving FBI analysis of hair or fiber evidence. That review was done in the wake of the exoneration of Donald Gates, who was convicted in 1982 of a rape and murder in part on the basis of testimony involving hair evidence. DNA testing – which was not available at the time of Mr. Gates’s trial -- proved in 2009 that he was not the perpetrator.
Over the past several years, the U.S. Attorney’s Office has devoted thousands of hours – including the hiring and assignment of additional staff – to link FBI files documenting hair and fiber analyses to any actual criminal prosecutions that resulted from the investigative work.
More than 100 cases, all prior to 2000, were identified in which convictions were obtained by guilty plea or at trial. A task force of veteran prosecutors then reviewed these matters, and identified one case that recently led to the exoneration of Kevin Martin, who was convicted in 1984 of taking part in a rape-murder. The in-depth reviews of these decades-old cases required enormous effort. The task force consisted of 30 Assistant U.S. Attorneys, who carefully reviewed case-related materials from the courts and law enforcement agencies to assess whether the use of hair or fiber evidence was material to the conviction. The office is sharing results of its work with defense counsel, as well as the Mid-Atlantic Innocence Project.
In addition to Mr. Gates and Mr. Martin, the U.S. Attorney’s Office joined in a request for a certificate of innocence for a man who was convicted in 1981 of rape, armed robbery, and other charges; DNA evidence, which was not available at the time of trial, established that he was not the attacker. The U.S. Attorney’s Office also agreed to vacate the conviction of a man who was convicted in 1981 of felony murder while armed and armed robbery, based largely on testimony involving hairs found on a stocking mask that was located near the scene of the crime. DNA evidence conclusively showed that the hair found in the stocking cap did not belong to the defendant. In that case, the U.S. Attorney’s Office also consented to vacate the conviction of a co-defendant whose conviction was materially affected by the hair found in the stocking cap.
Throughout the four-year review, the U.S. Attorney’s Office reached out to leaders of the local defense bar, reinforcing its commitment to working with defense counsel on cases where previously unavailable DNA testing methodologies might produce profiles from existing biological crime scene evidence that could support a viable claim of innocence.
Now, in designing the Conviction Integrity Unit, the U.S. Attorney’s Office is seeking to establish a program that is both backward and forward-looking, combining a review of existing convictions with an analysis of data to determine ways to improve training, investigation, and practices.
The unit will be part of the office’s Special Proceedings Division, which handles all post-conviction litigation in both the U.S. District Court for the District of Columbia and the Superior Court of the District of Columbia. The unit’s work will be reviewed by a Conviction Integrity Committee, which also will focus on developing better prosecution practices and training.
The review process will include an examination of all materials relating to a defendant’s original conviction, as well as an investigation into the integrity of new evidence proffered by the defendant. The review will recommend whether relief is warranted, such as vacation of the conviction and the issuance of a certificate of actual innocence. Final recommendations are to be submitted to the Conviction Integrity Committee and the U.S. Attorney for approval.
In cases leading to exoneration, the U.S. Attorney’s Office will work to identify the actual perpetrators of the crimes at issue, particularly when DNA evidence is available.
The Special Proceedings Division most commonly responds to motions alleging ineffective assistance of counsel, prosecutorial misconduct, and newly discovered evidence. The Division also responds to motions for release filed by defendants found not guilty by reason of insanity, habeas petitions challenging the actions of the U.S. Parole Commission or the Bureau of Prisons, motions to seal arrest records, and post-sentence motions filed under the Innocence Protection Act and the Sex Offender Registration Act.
14-201Two Men, Including Former Car Salesman at Prominent Los Angeles Dealership, Charged with Conspiring to Roll Back Odometers in Large-Scale Scheme That Defrauded Car BuyersRead the Press Release
A former salesman at a prominent Los Angeles car dealership and another Southern California man were charged with odometer tampering, the Justice Department announced today.
Jeffrey Levy, 62, and Shamai Salpeter, 65, both of Woodland Hills, California, were charged in separate criminal informations with conspiracy to commit odometer tampering.
“ Victims of odometer fraud lose thousands of dollars on what can turn out to be unreliable and potentially dangerous vehicles ,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “To help ensure that Americans can have confidence in the cars they buy, we will continue to prosecute car salesmen and others who violate federal law by tampering with a vehicle’s odometer.”
Levy was a salesman at Galpin Ford in North Hills, California. Levy referred customers and friends to his co-conspirator, Salpeter, who rolled back odometers in the driveway of his Woodland Hills residence. Levy is alleged to have known that some of these people had exceeded the maximum allowed mileage under the terms of their leases and wished to avoid fees and penalties. According to the charges, Levy also knew that other customers wanted to lower the mileage on their odometers to make their vehicles more valuable when they traded in the vehicles. After Salpeter altered the odometers, Levy’s customers returned or traded in their vehicles with falsified lower mileage readings. Levy then accepted the vehicles without alerting Galpin Ford that the odometer readings were false, thus defrauding future owners of the vehicles. Galpin Ford cooperated with the government’s investigation.
Salpeter altered odometers for friends, acquaintances and strangers, including customers referred by Levy. Salpeter charged between $100 and $400 per odometer and used electronic tools to set the odometer to the mileage requested by his customer.
This case was investigated by the National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA) and California’s Department of Motor Vehicles. This case is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch.
NHTSA has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
An update on the status of the case is available at: http://www.justice.gov/civil/cpb/cpb_currentcases.html#_Odom More information on odometer fraud is available at: http://www.nhtsa.gov/Odometer-Fraud , and tips on detecting and avoiding odometer fraud are available at: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf .
Todd Adam Rigney Sentenced to 16 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On Sept. 8, 2014, Todd Adam Rigney, 44, of Morristown, Tenn., was sentenced to serve 200 months in prison by the Honorable Ronnie Greer, U.S. District Judge.
Upon his release from prison, Rigney will be under the supervision of the U.S. Probation Office for the remainder of his life. He will also be subject to numerous special conditions of release which restrict his access to children and the internet. He has remained in custody since January 2014.
Rigney pleaded guilty in May 2014 to a federal grand jury indictment charging him with the distribution, receipt and possession of child pornography. He received and distributed the child pornography from his home in Morristown, Tenn.
The indictment and subsequent conviction of Rigney was the result of an investigation conducted by the Morristown Police Department and Knoxville Police Department Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Helen Smith represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
St. Louis Man Sentenced for Robbery of Chili's Bar and GrillRead the Press Release
Follow @SDILNewsChristopher Ford, 29, of St. Louis, Missouri, was sentenced to a 57 month term in federal prison, to be followed by a three year term of supervised release, and ordered to pay $1,883.30 in restitution at his sentencing, today, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced. Ford had been charged with Interference with Commerce by Violence, a violation of the Hobbs Act, in connection with the robbery of Chili’s Bar and Grill in Fairview Heights on August 1, 2013. Ford, who has been in custody since his arrest on August 1, 2013, will remain in custody until he serves his prison sentence.
“While I am pleased to note that armed robberies of businesses have declined, I am still concerned that, as shown by the recent Circle K robbery near Belleville, the bad guys are not getting the message. Again, I want these persons to know that they will be caught and they will do federal time far from their homes and families.” said United States Attorney Wigginton. “My federal initiative will not cease until this kind of crime is eliminated. All of our citizens should feel safe in going to restaurants, convenience stores and gas stations. To ensure this, I will continue to use the Hobbs Act and every tool that I have to investigate and prosecute those who rob businesses engaging in interstate commerce.”
At the time of Ford’s guilty plea, court records showed that on August 1, 2013, at approximately 9:24 p.m., Ford and his co-defendants entered Chili’s Restaurant (in Fairview Heights) to commit a robbery. Ford and one of his co-defendants were masked and armed with BB guns which resembled genuine semi-automatic firearms. The third co-defendant was unarmed and unmasked. In total, over twenty customers and employees were present in the restaurant when the defendants entered a side door to commit the robbery. The manager was ordered at gunpoint by Ford to open the safe, which contained a cash drawer and box. The two co-defendants maintained watch over customers and employees (some of whom were ordered to the back of the restaurant and the ground) while monies were being taken. Some customers fled the restaurant during the robbery. An alert customer was able to record the Missouri license plate number of the getaway car, and to provide it to police during a 911 call.
Police officers quickly located the getaway car, and, after a chase, were able to catch it when it drove into the City of St. Louis and ran into a dead end street. The defendants attempted to flee the police on foot, but were quickly apprehended.
The case was investigated by the Fairview Heights Police Department and was prosecuted by Assistant United States Attorney Suzanne M. Garrison for prosecution.
San Antonio Man Sentenced to Federal Prison for Murder Plot in Connection with 2013 Fort Sam Houston Shooting IncidentRead the Press Release
In San Antonio today, 52-year-old Alvin Roundtree was sentenced to the maximum 20 years in federal prison for plotting to kill his intimate partner announced United States Attorney Robert Pitman, FBI Special Agent in Charge Christopher H. Combs, San Antonio Division, and United States Marshal Robert Almonte.
Chief United States District Judge Fred Biery also ordered that Roundtree be placed under supervised release for a period of three years after completing his prison term and forfeit his military pension. Judge Biery continued the sentencing of Roundtree’s nephew and co-defendant, 29-year-old Leonard Roundtree, III, of Richardson, TX. No new sentencing date has been scheduled.
In April, a jury convicted Leonard Roundtree of one count of conspiracy to commit murder. In March, Alvin Roundtree pleaded guilty to one count of assaulting an officer or employee of the United States with a deadly weapon. Evidence presented in open court revealed that on June 10, 2013, Alvin Roundtree shot and wounded his intimate partner with a .45 caliber handgun inside the Medical Training Facility located on Fort Sam Houston Army Post. The victim, who suffered a total of seven gunshot wounds, was immediately taken into surgery and survived the incident. Authorities subsequently apprehended Roundtree while still on Fort Sam Houston and recovered the firearm. Recorded phone calls between the defendants revealed that the two conspired to hire someone to kill the victim to prevent her testimony in court. The evidence revealed that Leonard Roundtree agreed to, and in fact did, deliver information between his uncle and the hitman ultimately agreeing to pay $10,000 upon proof the murder.
Assistant United States Attorneys Bettina Richardson and Joey Contreras prosecuted this case on behalf of the Government.
SORNA Offender Sentenced to 48 Months in Federal PrisonRead the Press Release
ABILENE, Texas — Troy E. Powell, 46, most recently of Tuscola, Texas, was sentenced yesterday by U.S. District Judge Jorge A. Solis to 48 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Following a bench trial before Judge Solis in April 2014, Powell was convicted on an indictment charging one count of failure to register as a sex offender.
The government presented evidence that law enforcement learned in late 2013 that Powell, a sex offender from Illinois, had moved to the Abilene, Texas area, and that he may be in violation of his obligation under federal law to register as a sex offender. The investigation validated that fact and revealed that Powell had located and purchased a piece of property with a home on it in Tuscola, Texas, where he had been living since December 26, 2013.
The government presented further evidence that Powell left his residence in Illinois in November 2013 and travelled in interstate commerce to the Abilene, Texas, area. Powell never registered in Texas as a sex offender, as required by the Sex Offender Registration and Notification Act (SORNA), as he had been convicted of a sex offense in Fremont County, Colorado, and sentenced in September 1992.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the U.S. Marshals Service, the Abilene Police Department, the Texas Department of Public Safety and the Sterling, Illinois, Police Department. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
Rochester Man Sentenced for Possessing Ammunition as a Convicted FelonRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Frederick Stokes, 36, of Rochester, NY, who was convicted of possessing ammunition while being a convicted felon, was sentenced to 63 months in prison by U.S. District Court Judge David G. Larimer.
Assistant U.S. Attorneys Craig Gestring and Charles E. Moynihan, who handled the case, stated that Stokes was previously convicted in 2002 in Monroe County of Forgery in the Second Degree and in 1999 in Oneida County of Assault in the Second Degree. As a result of these previous convictions, the defendant was prohibited from possessing any firearms or ammunition.
On April 12, 2013, members of the Rochester Police Department Tactical Unit arrested Stokes in the area of Ringle Street and Post Avenue in Rochester. Officers were looking for the defendant in connection with an unrelated investigation. When officers attempted to take Stokes into custody, he ran from them which resulted in a foot chase. During the chase, the defendant discarded a dark, denim jacket in the area of 93 Post Avenue. Officers arrested Stokes in front of 95 Post Avenue and recovered the jacket nearby. They found seven rounds of .45 caliber ammunition, which were placed inside of a magazine for a Sturm Ruger .45 caliber semiautomatic pistol, inside one of the jacket pockets.
The sentencing is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of James S. Higgins, Acting Special Agent in Charge, New York Field Office, and the Rochester Police Department, under the direction Chief Michael Ciminelli.Registered Sex Offender Sentenced to 235 Months in Prison for Attempting to Entice A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Jeffrey S. Katz, Chief, Boynton Beach Police Department (BBPD), announce that Paul David Culbreth, 52, of Loxahatchee, was sentenced by U.S. District Judge Kenneth L. Ryskamp to 235 months in prison, a life term of supervised release and will have to continue to register as a sex offender, for enticing a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b).
Culbreth pled guilty to enticing a minor to engage in sexual activity on May 15, 2014. According to court records, Culbreth sent numerous sexually explicit messages via a web-based social media application to an undercover officer who posed as a 15 year old boy. Culbreth then attempted to meet the minor to engage in illegal sexual activity on New Year’s Eve. Culbreth was arrested by Special Agents from ICE-HSI after he drove to a location where he believed he would pick up the 15 year old boy. Culbreth was found with lubricant and condoms in his vehicle and is a registered sex offender in Palm Beach County.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer and Mr. Aronberg commended the investigative and cooperative efforts of ICE-HSI, BBPD and the South Florida Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney and Assistant State Attorney Gregory Schiller.
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.
Ray Dwight Sluss Sentenced to 17 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On Sept. 11, 2014, Ray Dwight Sluss, 49, of Johnson City, Tenn., was sentenced to serve 210 months in prison by the Honorable Leon Jordan, Senior U.S. District Judge. Sluss pleaded guilty in February 2014 to a federal indictment charging him with the receipt and possession of child pornography.
Upon his release from prison, Sluss will remain on federal supervised release for the remainder of his life. He is also subject to numerous special conditions of release which restrict his access to children and the internet. He has remained in custody since July 2013.
Sluss, purchased polygraph counter-measures while he was on supervised release by the Tennessee Board of Probation and Parole for a previous offense. During a search of his home, state court probation officers and other law enforcement officers found more than 18,000 images of child sexual abuse on external hard drives which were concealed in his home. He physically attacked some of the law enforcement officers.
The indictment and subsequent conviction of Sluss was the result of an investigation conducted by the Federal Bureau of Investigation, Tennessee Board of Probation and Parole, and Washington County Sheriff's Office. Assistant United States Attorney Helen Smith represented the United States in the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Port Saint Lucie Return Preparer Sentenced for Tax Fraud and Identity Theft SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Stevens Nore, 33, of Port Saint Lucie, was sentenced today before U.S. District Judge Kenneth A. Marra to 84 months in prison, followed by three years of supervised release and ordered to pay $2,761,397 in restitution.
Nore was previously convicted by a jury of 30 counts, including 21 counts of preparing false tax returns, in violation of Title 26, United States Code, Section 7206(2), four counts of filing false individual tax returns, in violation of Title 26, United States Code, Section 7206(1), three counts of theft of public money, in violation of Title 18, United States Code, Section 641, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to records filed in this case and statements made in court, from June 11, 2009 through April 2012, Nore owned and operated Fraternity Tax and Services, a tax return preparation business located in Fort Pierce, Florida. Nore prepared and submitted Individual Tax Returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2009 to 2011. Nore also filed false tax returns for 2010 through 2013 by falsely stating the amount of gross receipts and sales on Schedule C forms. Nore stole three tax refunds totaling $26,349.30 to which he was not entitled, and used the identity of two individuals without their permission.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Russell R. Killinger.
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.
Pharmacist Convicted on Drug Distribution ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistDefendant faces up to 44 years incarceration, will forfeit pharmacy license
CLARKSBURG, WEST VIRGINIA – A West Virginia pharmacist has been convicted on charges that he dispensed prescription painkillers outside the scope of his professional practice.
United States Attorney William J. Ihlenfeld, II announced that Mario BLOUNT, 51 of Bridgeport, W. Va., entered guilty pleas today to the felony offenses of “Conspiracy to Distribute Schedule II Controlled Substances”, “Distribution of Oxymorphone”, and “False or Fraudulent Material Omissions.”
BLOUNT, who was employed by Best Care Pharmacy at the time of the crimes, admitted that he conspired with Angela Davis and April Davis between 2011 and 2014 to distribute prescription painkillers for non-legitimate medical purposes. BLOUNT also admitted that he failed to report the filling of a prescription for oxymorphone for Angela Davis in June of 2013, and that he illegally distributed oxymorphone pills to her in September of 2013.
According to evidence offered at the plea hearing, BLOUNT’s pharmacy practice was outside the course of professional practice, leading to duplicate and excessive quantities of controlled substances being supplied. BLOUNT also supplied controlled substances that were contraindicated, and he accepted a prescription that he knew to be fraudulent for a person that he knew to be deceased. The decedent for whom the prescription was written was the late son of Angela Davis.
The investigation into BLOUNT began when it was discovered that he filled a significant number of prescriptions for patients of Dr. Edita Milan, a Bridgeport physician who is under Federal indictment on charges similar to BLOUNT’s. The Greater Harrison County Drug Task Force executed search warrants in October of 2013 at Best Care Pharmacy locations in the West Virginia towns of Bridgeport, Lumberport and Belington. The evidence gathered during those searches was used to bring charges against BLOUNT and his co-conspirators.
Angela Davis and April Davis, who are mother and daughter, are scheduled to be in court on September 23 for plea hearings. Milan is scheduled for trial on November 5.
As part of the plea agreement BLOUNT must relinquish his West Virginia Board of Pharmacy license and he is prohibited from applying for its reinstatement.
BLOUNT faces up to forty-four years in prison, a fine of up to $2,500,000, and three years of supervised release. Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of BLOUNT.
The Task Force includes agents and officers from the Bridgeport Police Department, the Clarksburg Police Department, the West Virginia State Police – Bureau of Criminal Investigation (BCI), and the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorney John C. Parr with assistance from U.S. Attorney Ihlenfeld.U.S. District Judge Irene Keeley presided.
Palm Beach County Couple Charged with Bankruptcy FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that husband and wife Richard S. Krugman, 61, and Tamara B. Giordano, 53, of Palm Beach County, were charged today with bankruptcy fraud, in violation of Title 18, United States Code, Section 152(1).
According to an information filed today, Krugman and Giordano filed for bankruptcy on August 27, 2008, in United States Bankruptcy Court in Palm Beach County before U.S. Bankruptcy Judge Erik P. Kimball. At the time of filing, the defendants claimed they owed approximately $2.9 million to creditors, and had available assets worth less than $13,000. The information charges that the defendants concealed from their creditors, the trustee, and the Bankruptcy Court a number of valuable items including a women’s gold and diamond Rolex watch, a gold ring with two carats of diamonds, diamond earrings, Royal Dalton china, Waterford crystal, silver, and two George Rodrigue “Blue Dog” lithographs, signed and numbered.
The case will be heard by Senior U.S. District Judge Kenneth L. Ryskamp in West Palm Beach.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Carolyn Bell.
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.
Pain Clinic Owners and Medical Directors Indicted for Alleged “Pill Mill” Relocated from Florida to MarylandRead the Press Release
“Pharmaceutical Pills can be Just as Harmful as Illegal Drugs”
Baltimore, Maryland - Baltimore, Maryland - A federal grand jury has indicted the three owners and two medical directors of Healthy Life Medical Group, a purported pain management clinic, on drug conspiracy and other charges. The indictment was returned on September 3, 2014, and unsealed today upon the arrest of the defendants. Charged in the indictment are:Michael Resnick, a/k/a Michael Reznikov, age 53, of Brooklyn, New York;
Resnick’s wife, Alina Margulis, age 48, also of Brooklyn, New York;
Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 81, of Boca Raton, Florida;
William Crittenden III, age 50, of Kensington, Maryland; and
Daniel Alexander, age 51, of Pikesville, Maryland.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
“Medical professionals who distribute oxycodone without valid medical need place users in grave danger,” said U.S. Attorney Rod J. Rosenstein. “Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper oversight.”
“Pill Mills that are established to masquerade as legitimate pain management facilities by purported health care professionals will not be tolerated by DEA,” said Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration. “Those who operate these facilities do so out of pure greed and disregard for human life. I am proud of the combined efforts of DEA, the Baltimore County Police Department, the Baltimore County States Attorney’s Office, and the United States Attorney’s Office during this three year investigation. The arrests today prove that our work is not done yet. We will remain diligent in our efforts to end prescription drug abuse and hold pill mill doctors accountable.”
According to the indictment, from March 1, 2011 through May 15, 2012, Resnick, Margulis and Wiseberg owned and operated Healthy Life Medical Group, a purported “pain management” clinic in Maryland. Physicians William Crittenden and Daniel Alexander served as the medical directors of Healthy Life.
The 43-count indictment alleges that the defendants conspired to distribute drugs, especially oxycodone and alprazolam, outside the scope of professional practice and/or not for a legitimate medical purpose to cash-paying customers, the majority of whom were not from Maryland and were abusing, misusing, and distributing the drugs.
From March 2010 through February 2011, Gerald Wiseberg owned and operated Total Care Medical Center, a pain management clinic located in Deerfield Beach, Florida. The DEA executed a search and seizure warrant at Total Care in February 2011, and as a result, Total Care was forced to temporarily shut down. According to the indictment, at about that time, Wiseberg approached Resnick and Margulis about opening a similar pain management clinic in Maryland. After visiting Total Care and being trained by Wiseberg in the operation of the business, Resnick and Margulis opened Healthy Life, with Wiseberg as part owner of the business. Wiseberg also served as a consultant to Resnick and Margulis, for which he was paid $12,000 per month. William Crittenden was hired by Resnick, Margulis and Wiseberg, to serve as the medical director of Healthy Life, for which he was paid $1,500 per day, until his resignation in August 2011. Daniel Alexander was hired as medical director in September 2011. Healthy Life first opened in Owings Mills, Maryland, but in October 2011, moved to a larger office in Timonium, Maryland.
The indictment alleges that customers to Healthy Life paid at least $300 for an initial visit and at least $250 for all subsequent visits and the fees were collected upfront. Further the indictment alleges that more than 80% of Healthy Life’s customers came from out of state. According to the indictment, between April 2011 and August 17, 2011, Crittenden issued prescriptions to 1,051 customers on 1,874 separate office visits for approximately 328,520 oxycodone pills - a total dosage amount of 7,631,085 mg of oxycodone. Between September 2011 and March 2012, Alexander issued prescriptions to 624 customers on 946 separate office visits for approximately 178,151 oxycodone pills - a total dosage amount of 3,879,500 mg of oxycodone. On each office visit with Crittenden and Alexander, customers received a least one prescription for oxycodone more than 96% of the time.
From March 2011 through March 13, 2012, customers allegedly paid Resnick, Margulis and Wiseberg, through Healthy Life, at least $2 million for office visits. Most of these proceeds were collected as cash. According to the indictment, although Healthy Life regularly received more than $10,000 in cash payments per day, Resnick made deposits of less than $10,000 into bank accounts he controlled with his wife, and instructed the office manager at Healthy Life to also make cash deposits of less than $10,000, in order to avoid detection by law enforcement.
The indictment seeks forfeiture of $2 million from all the defendants for the drug distribution conspiracy. The indictment seeks forfeiture from Michael Resnick in the amount of $1,012,410, for the structuring of currency deposits.
The defendants face a maximum sentence of 20 years in prison and a $1 million fine for the conspiracy. Crittenden and Alexander also face a maximum of 20 years in prison for narcotics distribution. Resnick, Margulis and Wiseberg face a maximum sentence of 20 years in prison for maintaining a drug involved premises. Resnick and Margulis face a maximum of 10 years in prison for money laundering; and Resnick faces a maximum of 10 years in prison for structuring of currency deposits. Resnick and Margulis are expected to have an initial appearance later today in U.S. District Court in Brooklyn, New York. Initial appearances are scheduled for William Crittenden today and for Daniel Alexander on September 15, 2014, both in U.S. District Court in Baltimore. No court appearance has been scheduled for Gerald Wiseberg.An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, IRS-CI, Baltimore County Police Department and Baltimore County State’s Attorneys’ Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Jason D. Medinger, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Operator of Local Frison Flea Market Convicted of Federal Fraud ChargesRead the Press Release
St. Louis, MO - JACK FRISON, SR. was convicted of multiple charges relating to his involvement in the sale of counterfeit goods and DVD?s.
According to testimony presented at trial, for more than two decades, Frison owned and operated the Frison Flea Market, in Pagedale, Missouri. Vendors paid Frison a rental fee to rent and operate sales booths at his Flea Market. For more than ten years, many of Frison’s vendors openly sold counterfeit goods from their booths at the Market. The counterfeit goods included clothing, footwear, purses, accessories, movie DVDs and music CDs. Some of the vendors sold counterfeit purses and similar luxury items bearing marks owned by Coach, Louis Vuitton, Dolce & Gabbana and others. Frison knew that the goods were counterfeit and allowed vendors to continue selling such goods. Rather than removing vendors selling illegal goods, Frison fined them instead, adding to his income.
Frison, Frontenac, Missouri, was convicted of one felony count of conspiracy to traffic in counterfeit goods, one felony count of aiding and abetting copyright infringement and one felony count of aiding and abetting trafficking counterfeit goods. The two-day trial was held in June before United States District Judge Rodney Sippel. He returned his ruling today and set sentencing for January 2015.
The conspiracy and copyright infringement charges each carry a maximum penalty of five years in prison and/or fines up to $250,000 and trafficking in counterfeit goods carries a maximum of 10 years in prison and/or fines up to $2,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Assistant United States Attorneys John Bodenausen and Jennifer Roy are handling the case for the U.S. Attorney's Office.
Oklahoma Man Found Guilty for Making A Bomb Threat Against Sheriff Joseph ArpaioRead the Press Release
PHOENIX – Gregory Lynn Shrader, 55, of Jay, Okla., was found guilty of willfully making a threat to kill by means of an explosive, transport of explosive material with the intent to intimidate, mailing injurious articles, and possession of explosive material by a prohibited possessor by a federal jury in Phoenix. The case was tried before U.S. District Judge Neil V. Wake between Sept. 4, 2014 and Sept. 11, 2014. The defendant is being held after trial. Sentencing is set before Judge Wake on Dec. 1, 2014.
The evidence at trial showed that Shrader threatened to kill Sheriff Joe Arpaio with an improvised explosive device on April 10, 2013. The evidence at trial showed that Shrader made the mail bomb threat as part of a revenge scheme to frame a former business partner. Sometime in early 2013, Shrader constructed an explosive device and placed it into a United States Postal Express Mail Box and designed it to appear operational.
The evidence at trial showed that Shrader was unhappy with the results of two failed lawsuits filed against his former business partner. As an act of revenge, Shrader addressed his package to Sheriff Joe Arpaio with a return address belonging to his former business partner.A conviction for willfully making a threat to kill by means of an explosive carries a maximum penalty of 10 years, a $250,000 fine or both. A conviction for transport of explosive material with the intent to intimidate carries a maximum penalty of 10 years, a $250,000 fine or both. A conviction for mailing injurious article carries a maximum penalty of 1 year, a $100,000 fine or both. A conviction for possession of explosive material by a prohibited possessor carries a maximum penalty of 10 years, a $250,000 fine or both. In determining an actual sentence, Judge Wake will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The Judge, however, is not bound by those guidelines in determining a sentence.
The investigation in this case was conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys Raymond K. Woo and Paul Stearns, District of Arizona, Phoenix.
CASE NUMBER: CR-14-0355-PHX-NVW
RELEASE NUMBER: 2014-051_Shrader
# # #For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
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