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Thursday 4 September 2014
Second Serra Nissan Sales Manager Charged in Loan Fraud ConspiracyRead the Press Release
BIRMINGHAM -- A second sales manager at Serra Nissan faces federal charges in connection with a conspiracy at the Birmingham car dealership to fraudulently boost loan approvals and car sales, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
A federal grand jury last week indicted GERALD R. SHEPARD, 56, of Pinson, on conspiracy and bank fraud charges. A federal judge lifted the seal on the indictment this week after the government withdrew a warrant for Shepard's arrest.
The five-count indictment charges Shepard with conspiring with others at the dealership, between August 2010 and October 2013, to defraud financial institutions, Nissan North America and Serra Nissan customers by fraudulently increasing vehicle sales in order to boost personal profits. The indictment also charges Shepard with four bank fraud counts for fraudulent loan information submitted to financial institutions in September and October of 2012.
Shepard's indictment follows federal charges earlier this year against another sales manager at Serra Nissan, Abdul Islam Mughal. Mughal, 48, of Trussville, pleaded guilty in July to conspiring with others, including Serra Nissan salesmen, general managers, sales managers and finance managers, to sell more cars by falsifying loan documents in order to defraud customers, Nissan North America and financial institutions. Mughal also pleaded guilty to one count of bank fraud for submitting falsified loan documents to financial institutions between January 2012 and October 2013. Mughal is scheduled for sentencing Nov. 5.
According to the indictment against Shepard, he and other members of the conspiracy participated in various means to carry out their fraud and obtain auto loans that, otherwise, would not have been approved. Those means included the following:
- Creating or altering documents to submit to financial institutions to show inflated income for prospective buyers.
- Directing finance managers and salesmen to submit fraudulent utility bills and bank statements to financial institutions to misrepresent proof of a customer's residency.
- Listing accessories not actually included on a vehicle so a financial institution would increase its loan amount. Shepard and others had a financial incentive to increase a loan amount in order to increase commissions paid to certain employees.
- Presenting straw buyers, who could qualify for a loan, to financial institutions when the actual buyer could not qualify.
Shepard and others also defrauded customers and financial institutions by quoting a customer an inflated monthly vehicle loan payment so that a finance manager could add a warranty and gap insurance without the customer realizing it, according to the indictment.
The maximum penalty for the conspiracy count is five years in prison and a $250,000 fine. The maximum penalty for bank fraud is 30 years in prison and a $1 million fine.
The FBI and the IRS investigated the case, which Assistant U.S. Attorney Amanda Schlager Wick is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Second Defendant Pleads Guilty in Identity Theft, $1.8 Million Dollar Fraudulent Tax Return SchemeRead the Press Release
PROVIDENCE, R.I. – Richard Lara, 22, of Providence, R.I., pleaded guilty in U.S. District Court in Providence yesterday to participating in a scheme in which personal identifying information of more than 1,200 individuals was stolen, many of which were used to file fraudulent tax returns with the IRS totaling more than $1.8 million dollars. Julian Balbi, 22, of Providence, a co-defendant in this matter, pleaded guilty on June 5, 2014, to participating in the scheme with Lara.
Lara and Balbi pleaded guilty to four counts of aggravated identity theft and one count each of conspiracy and theft of government property. The guilty pleas are announced by United States Attorney Peter F. Neronha; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
According to court records and information presented to the court, Lara and Balbi were arrested by Rhode Island State Police on January 2, 2012, on an unrelated matter during a routine traffic stop. During a court authorized search of the vehicle which was owned by Julian Balbi, State Police discovered 87 U.S. Treasury checks made out to third parties totaling $596,646.46. The investigation revealed that the checks were generated by the submission of fraudulent tax returns. Also seized were several ledgers and notebooks containing personal identifying information, including Social Security numbers and dates of birth, of hundreds of individuals; ledgers containing employer information such as Employee Identification Numbers and addresses; and a USB flash drive containing numerous spreadsheets detailing taxpayer information and fraudulent tax returns that had been filed with the IRS.
According to information presented to the court, Rhode Island State Police executed a court authorized search of Balbi’s Providence residence where they seized numerous computers and USB flash drives. A forensic examination of the computers and flash drives revealed numerous spreadsheets containing ledgers identical to those on the flash drives seized from the vehicle. A court authorized search of Lara’s residence resulted in the seizure of another ledger which allegedly contained personal identity information which matched information contained on the flash drive seized from Balbi’s vehicle.
According to information presented to the court, IRS and U.S. Secret Service agents interviewed 17 individuals listed as payees on the treasury checks seized from Balbi’s vehicle. All 17 stated they did not file the tax return in question and that they did not know Balbi or Lara. The IRS conducted an analysis of all of the information associated with the 1,258 individuals listed on the various ledgers and computers seized from Balbi and Lara. The investigation revealed that between April 2011 and January 2012, 823 fraudulent tax returns seeking refunds totaling $1,854,438.46 were filed with the IRS.
Julian Balbi is scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on September 18, 2014. Richard Lara is scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on December 4, 2014.
Conspiracy to commit a crime against the U.S. Government is punishable by statutory penalties of up to 5 years in federal prison, a fine of up to $250,000 and a term of supervised release of up to 3 years. Theft of government property (treasury checks) is punishable by statutory penalties of up to 10 years in federal prison and a fine of up to $250,000. Aggravated identity theft is punishable by statutory mandatory sentence of 2 years imprisonment, to be served consecutive to the sentence imposed for theft of government property, and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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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]Seafood Company and Owner Sentenced for False Records Conspiracy, Overharvesting Sea Scallops Off Atlantic CoastRead the Press Release
Company owner sentenced to 30 months in prison
NEWARK, N.J. – The owner of a Maine seafood company was sentenced to 30 months in prison today for his role in concealing 79,666 pounds of Atlantic sea scallops harvested off the coast of New Jersey and Cape Cod, Massachusetts, New Jersey U.S. Attorney Paul J. Fishman announced.
The owner of D.C. Air & Seafood, Christopher Byers, 42, of Winter Harbor, Maine, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with conspiring with his company and six fishing boat operators to prepare false reports to conceal the overharvesting. Judge Walls imposed the sentence today in Newark federal court. The six boat operators previously pleaded guilty before Judge Walls and await sentencing.
According to documents filed in this case and statements made in court:
D.C. Air & Seafood, a seafood wholesaler, purchased Atlantic sea scallops harvested by federally permitted vessels in the Elephant Trunk Access Area – a large sea scallop fishing ground off the mid-Atlantic coast. That area and others managed by the National Oceanic and Atmospheric Administration (NOAA) had been closed to fishing as part of an area rotation management program to rebuild the scallop population, but were open to limited scallop fishing by federally permitted vessels for two-week periods in March 2007, July 2007 and March 2008.
During those periods, individual vessels were restricted to harvesting no more than 400 pounds of scallops per vessel per trip. Vessels operated by the conspiring boat operators failed to report 79,666 pounds of scallops harvested off the coast of New Jersey and Cape Cod for purchase by D.C. Air & Seafood during the permit periods. Some of the scallops were off-loaded from the vessels in Atlantic City, New Jersey, to trucks used by Byers and D.C. Air & Seafood.
Byers admitted during his guilty plea that he, D.C. Air & Seafood and the six boat operators conspired to conceal the overharvesting of scallops by preparing fishing vessel trip reports – required to be submitted to NOAA – which falsely represented the amount of scallops harvested on certain vessel trips was 400 pounds or less.
As part of its plea agreement, D.C. Air & Seafood agreed to pay $520,371 in restitution to the United States – representing the value of the sea scallops – and to be placed on probation for five years. During the probationary period, the company will be subject to the terms of an environmental compliance plan to ensure all purchases and sales of fish comply with federal law. The company agreed not to participate in the scallop industry during that time.
In addition to the prison term, Judge Walls sentenced Byers to three years of supervised release and ordered him to pay restitution in the amount of $520,371.
U.S. Attorney Fishman credited special agents of the National Oceanic and Atmospheric Administration, under the direction of Special Agent in Charge Logan Gregory, with the investigation.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: William J. Hughes Esq., Atlantic City, N.J.Rutland Man Sentenced to over Seven Years Imprisonment for Federal Conviction for Heroin and Crack Cocaine DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Chief Judge Christina Reiss, of the United States District Court, sentenced Terrence Chenault (a.k.a. “Stucky”), 31, of Rutland, Vermont to 87 months imprisonment for conspiring to distribute heroin and crack cocaine in the Rutland area. In addition, Judge Reiss sentenced Chenault to four years supervised release, to be served after he completes his jail sentence. She also recommended to the Bureau of Prisons that Chenault participate in the 500-hour substance abuse program for federal inmates.
Chenault previously pled guilty to conspiring to distribute heroin and cocaine base in the Rutland area in 2013. The Pre-Sentence Report found that Chenault was involved in distributing at least 400 grams of heroin and 56 grams of crack cocaine. According to court records, Chenault’s co-conspirators include Eric Dixon (a.k.a. “Big E”) and Andrew Harris (a.k.a. “Dreads”), both of whom have pled guilty to conspiring to distribute narcotics and are awaiting sentencing. All three defendants lived on Park Avenue in Rutland City.In sentencing Chenault, Judge Reiss relied, in part, on his lengthy criminal record and also found that he “preyed” on drug addicts to do his work for him and that he had missed many “wake up calls” to turn his life around. The Government stated in its sentencing memorandum that “heroin and other drugs are wreaking havoc in Rutland and many other Vermont communities” and “a strong message from the Court needs to be continually sent to narcotic dealers that spreading their poison in the community will result in a lengthy jail sentence.”
The United States is represented by Assistant U.S. Attorney Joseph Perella while the defendant is represented by Richard Goldsborough, Esq. This case was jointly investigated by the Vermont Drug Task Force, the Drug Enforcement Administration, and the Federal Bureau of Investigation.Russellville, Kentucky, Convicted Felon Sentenced to 151 Months in Prison for Distribution of A Controlled Substance and Possession of A FirearmRead the Press Release
– Formerly convicted of facilitation to murder, promoting contraband and trafficking in a controlled substance
BOWLING GREEN, Ky. – A Logan County, Kentucky man formerly convicted of facilitation to murder, promoting contraband, and trafficking in a controlled substance was sentenced yesterday in U.S. District Court by Senior Judge Thomas B. Russell to 151 months in prison, followed by three years of supervised release, for multiple charges of distribution of a controlled substance and possession of a firearm by a convicted felon, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Kelly Dewayne Morris, a/k/a Kelly Crenshaw, age 36, previously admitted in court to being a felon in possession of a Taurus, model 856, .38 Special revolver, and five rounds of .38 Special ammunition, possession of body armor, and three counts of possession and distribution of crack cocaine.
According to the indictment, between August 1, 2013 and October 18, 2013, in Logan County, Kentucky, Morris possessed the firearm and body armor, and distributed crack cocaine to a confidential informant.
Morris was convicted of robbery and facilitation to murder in Todd County, Kentucky, Circuit Court on January 21, 2009. Further, Morris was convicted of promoting contraband in Warren County, Kentucky, Circuit Court on July 5, 2001, and Trafficking in cocaine in Logan Circuit Court on February 15, 1999.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the South Central Kentucky Drug Task Force.
Roff Woman Pleads Guilty to Theft of Government FundsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MARY LOUISE FARRIS, a/k/a Mary Louise Allen, age 42, of Roff, Oklahoma, pled guilty to an Information charging her with Theft Of Government Funds, in violation of Title 18, United States Code, Section 641.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General.
The Information alleged that from on or about February 22, 2012 to on or about December 18, 2012, in the Eastern District of Oklahoma, the Defendant did willfully and knowingly embezzle, steal and convert to her own use, money and things of value from the Social Security Administration, an agency of the United States, which had been paid to Mary Lou Allen, as widow benefits, to which the defendant knew she was not entitled and having a value in excess of $1,000.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion.
The statutory range of punishment is 10 years imprisonment and/or a fine of up to $250,000.
Assistant United States Attorney Chris Wilson represented the United States.
Rockland Man Sentenced to More Than 3 Years for Pharmacy RobberyRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Elbert
Ranquist, 43, of Rockland, Maine, was sentenced today in U.S. District Court by Judge Nancy
Torresen to 43 months in prison and three years of supervised release for pharmacy
robbery. Ranquist pleaded guilty to the charge on April 17, 2014.According to court documents, on the evening of August 5, 2013, Ranquist drove to
Jensen’s Pharmacy in Rockland in his wife’s distinctive vehicle. He entered the pharmacy
wearing sunglasses, a hooded sweatshirt pulled tight around his face, a small blue backpack and
blue surgical gloves. He went to the counter holding a knife in his left hand and demanded
oxycodone from the pharmacist. The pharmacist, who recognized the defendant as a regular
customer, asked out loud if he was really being robbed by “Elbert Ranquist.” The defendant
absconded with 10 5mg oxycodone pills.In pronouncing sentence, Judge Torresen stated that Ranquist had been in a vicious cycle
with drugs for years in which he tried to self-medicate and solve personal and family problems
but only caused himself more problems.The case was investigated by the Federal Bureau of Investigation, the Rockland Police
Department, the Maine State Police and the Maine Drug Enforcement Agency.- Remaining Defendants Sent to Prison in Massive Stash House Case in Houston
Provider of Services for Special Needs Preschool Students Sentenced in Manhattan Federal Court to 24 Months in Prison for Defrauding Education Programs of More Than $2 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CHEON PARK was sentenced in Manhattan federal court to 24 months in prison and over $2 million in forfeiture and restitution for defrauding the New York State Education Department (“NYSED”) and the New York City Department of Education (“NYCDOE”) out of millions of dollars in connection with special education services and preschool programs provided to New York City children by a company that PARK owned and operated. PARK pled guilty in March 2014 to one count of mail fraud before U.S. District Judge J. Paul Oetken, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Cheon Park lined his pockets with millions of dollars meant to provide important services for special-needs children. Today, he was made to pay for his crimes through federal prison time and restitution in the millions of dollars. We will continue to do everything in our power to pursue and prosecute those who defraud the government, particularly those who shamelessly siphon scarce public money away from some of the city’s most vital programs.”
According to the Information, an earlier Criminal Complaint, and statements made at court proceedings:
Between 2005 and 2012, PARK deliberately inflated the amount of compensation Bilingual SEIT, a company PARK owned and operated, paid certain of its employees and contractors. He also misrepresented the type of work performed by certain employees on annual certified consolidated fiscal reports (“CFRs”) and financial statements submitted to NYSED and NYCDOE.
PARK owned and operated Bilingual SEIT from at least 2005 to 2012. During that time, Bilingual SEIT had a contract with the NYCDOE to provide publicly funded special education services and preschool programs to New York City schoolchildren aged three to five with physical, emotional, and/or developmental disabilities. Specifically, Bilingual SEIT received funding to provide: (1) special education itinerant teacher, commonly referred to as SEIT, services; (2) special education classes in a center-based setting for preschool students with special needs; (3) individual evaluations for preschool students with disabilities; and (4) physical, occupational, and/or speech therapy for preschool students who qualified for such services. As of September 2012, Bilingual SEIT operated out of five locations in Manhattan, Queens, and Brooklyn.
During the seven-year period that Bilingual SEIT was under contract with the NYCDOE, it claimed reimbursement for and received approximately $94.5 million in federal, New York State, and New York City funds to provide the services described above. In order to receive such money, PARK was required to file a CFR on behalf of Bilingual SEIT supported by audited financial statements with the NYSED. The CFR and audited financial statements represented the costs that Bilingual SEIT had incurred the previous year and the justification for those costs, and included compensation Bilingual SEIT purported to pay its employees and contractors. Each year, PARK signed the certification pages for the CFRs filed with the NYSED, which relied on the CFR and audited financial statements in determining the amount of public funds to pay Bilingual SEIT per student for the services Bilingual SEIT provided to New York City preschool students.
Beginning in approximately June 2011, the New York State Comptroller’s office (the “Comptroller”) conducted an audit of Bilingual SEIT to determine whether the costs reported by Bilingual SEIT on the CFRs for the years July 2007 through 2009 were properly calculated, justified, and allowable under guidance issued by the NYSED. In July 2012, the Comptroller issued a report that concluded that nearly $1.5 million of the costs that PARK certified for the two-year audit period should have been disallowed, including money paid to 26 employees whose time and attendance could not be substantiated. As a result of the Comptroller’s report, the NYCDOE cancelled Bilingual SEIT’s classes and declined to renew its contract with Bilingual SEIT.
In fact, PARK engaged in several schemes designed to inflate the costs Bilingual SEIT represented it incurred, resulting in more public money for Bilingual SEIT, much of which, as set forth below, was kicked back to PARK. PARK fraudulently received funds from New York State and New York City to pay multiple individuals who performed little or no work for Bilingual SEIT. At PARK’s request and direction, these individuals then kicked back as much as 50% of the salary they fraudulently received from Bilingual SEIT to PARK. PARK also fraudulently received funds from New York State and New York City to deliberately overpay other individuals who worked for Bilingual SEIT. At PARK’s request and direction, these individuals also kicked back a portion of the overpayment to PARK on a regular basis.
Further, in addition to receiving kickbacks, PARK used Bilingual SEIT funds for his personal benefit in other ways. PARK arranged for Bilingual SEIT to pay his ex-wife and ex-sister-in-law for work they did not perform, and also arranged for Bilingual SEIT to pay for tutoring for PARK’s children and for a Bilingual SEIT employee to clean PARK’s home twice a week.
In addition to his prison term, PARK, 46, of Manhasset, New York, was ordered to forfeit $1,924,318, representing the proceeds of the crime, as well as pay restitution in the amount of $2,151,318. Last week, PARK paid to the United States Marshals Service the entirety of the forfeiture amount. PARK was also sentenced to pay a $100 special assessment.
Mr. Bharara praised the investigative work of the Office of the State Comptroller, the Special Commissioner of Investigation for New York City’s Department of Education, and the Office of Inspector General for the United States Department of Education. He also thanked the Queens County District Attorney’s Office for its assistance.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorneys Paul Krieger and Martin Bell are in charge of the prosecution.
Private Detective Gets 21 Months for Tax FelonyRead the Press Release
Yaser Khalil Masso, 71, of Philadelphia, PA, was sentenced today to 21 months in prison and was ordered to pay $429,070 in restitution, including interest to the IRS for under-reporting the income that he earned from his detective agency. Masso filed materially false tax returns for tax years 2006 through 2009, substantially under-reporting his income from his sole proprietorship, the Masso Detective Agency. For tax years 2006 through 2009, Masso reported a total of $454,579 of taxable (net) income -- failing to report an additional $2.1 million in taxable income. Thus, Masso reported to the IRS, and paid taxes on, only a fraction of his income.
Masso’s accountants attempted to review his income tax returns with him but Masso was not interested. Masso failed to provide the records to his accountants that they needed to accurately complete his accounting and tax work. One of Masso’s accountants specifically asked him whether the 1099’s that Masso provided to his accountant included all of Masso’s income, and Masso falsely replied that they did. Despite not providing records to his accountants, Masso had a bookkeeping and invoice system in place to bill his customers for security guard services provided. Masso sent invoices to his customers regularly so that he could get paid and collect his revenue in an accurate and timely manner.
Masso opened bank accounts at various financial institutions during 2006 through 2009. Despite having access to bank accounts, Masso routinely cashed checks for significant dollar amounts from his business receipts at check cashing stores, paying additional fees to do so, but thereby hiding income. Masso did deposit some business checks in his bank accounts -- but (with one exception) he only deposited checks for amounts over $10,000, which, if cashed at a check casher, would have generated a Currency Transaction Report (“CTR”) and would have been reported to the government.
In addition to the prison term and restitution, U.S. District Court Judge Eduardo Robreno ordered one year of supervised release.
The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant United States Attorney Karen L. Grigsby.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Plattsburgh Man Arrested for Production of Child PornographyRead the Press Release
PLATTSBURGH, NEW YORK – Heath Powers, 33, of Plattsburgh, was arrested on August 11, 2014, and charged by complaint with production of child pornography announced United States Attorney Richard S. Hartunian and Federal Bureau of Investigation Special Agent-in-Charge Andrew W. Vale. Following an initial appearance before United States Magistrate Judge Larry Kudrle, Powers has been held without bond. If convicted, Powers faces at least 15 years and up to 30 years in prison, followed by a lifetime term of supervised release, a $250,000 fine, and registration as a sex offender.
The case is being investigated by the Federal Bureau of Investigation. If anyone has information regarding this matter, please contact the Federal Bureau of Investigation at telephone number 1- 800-CALL-FBI. The prosecution is being handled by Assistant United States Attorney Katherine Kopita.
The charges in the complaint are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Philadelphia Man Indicted in Jewelry Store RobberiesRead the Press Release
A Philadelphia man was indicted yesterday on charges relating to two Michigan jewelry store robberies, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office, Sheriff Larry Stelma, Kent County Sheriff’s Department and Chief Michael Patton, West Bloomfield Police Department.
Indicted was Nathaniel Pembrook, 42, of Philadelphia, Pennsylvania.
According to the indictment, on April 22, 2014, Pembrook, along with three other individuals, robbed two jewelry stores. The first robbery took place at Medawar Jewelers located on Plainfield Avenue in Grand Rapids. The second robbery took place at Tapper’s Diamonds and Fine Jewelry located on Orchard Lake in West Bloomfield. In both robberies, the robbers entered the stores during business hours with their faces covered or partially covered and brandished a firearm while ordering employees and customers to the floor. During the robbery at Medawar Jewelers, Pembrook was shot in the arm by one of the store owners. Blood recovered from the scene in Grand Rapids was DNA tested and determined to be that of Nathaniel Pembrook."We are using federal resources to address serious incidents of violent crime, such as these armed robberies, because of the high risk of harm they pose to public safety," McQuade said.
“The arrest and indictment of Mr. Pembrook for his involvement in these acts of violence reflects the dedication, cooperation, and persistence of law enforcement at every level,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “It is this collaboration—between federal, state and local authorities—that has brought justice to bear upon Mr. Pembrook, and we will continue those efforts as we move forward in the investigation.”
“This is another great example of local and federal authorities working together to keep our communities safe,” stated Kent County Sheriff Larry Stelma.
“I am very pleased that through an ongoing joint collaborative effort of the Federal Bureau of Investigation, the Kent County Sheriff’s Department and the West Bloomfield Police Department, a federal indictment has been obtained charging one of the alleged suspects in the robberies,” said Chief Michael Patton.
Pembrook has been charged with Interference with Commerce by Robbery, Possession of a Firearm in Furtherance of a Crime of Violence, Conspiracy to Interfere with Commerce by Robbery and being a Felon in Possession of a Firearm. If convicted on all charges, Pembrook faces up to life in federal prison.Pembrook was arrested in Philadelphia and is currently awaiting removal to Detroit for his arraignment on the charges.
The case was investigated by the FBI Oakland County Gang and Violent Crimes Task Force, the Michigan State Police, Oakland County Sheriff’s Office, Kent County Sheriff’s Department and the West Bloomfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel Lemisch with the United States Attorney’s Office for the Eastern District of Michigan in Detroit with the assistance of the United States Attorney’s Office for the Western District of Michigan.An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pennsylvania Company and Owner Sentenced for Violating the Clean Water and Clean Air ActRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Lycoming Construction Services, LLC., a Pennsylvania Limited Liability Company located in Williamsport, Pennsylvania, which was convicted of violating the Clean Air Act, was sentenced to two years probation and a fine of $100,000 by Chief U.S. District Court Judge William M. Skretny. In addition, Leo M. Williams, 66, the owner of Lycoming, was sentenced to one year probation and a fine of $25,000 for violating the Clean Water Act. As part of the sentencing, the corporation was also ordered to form an environmental training program for its employees, and Williams was ordered to pay $5,000 to the Occupational Safety and Health Administration to resolve OSHA violations stemming from this case.
Assistant U. S. Attorney Aaron J. Mango, who handled the case, stated that both cases stemmed from the demolition of the Dahlstrom industrial complex, located at 443-499 Buffalo Street in Jamestown, N.Y., from January 2012 to November 2013. This project involved the demolition of a cluster of condemned buildings on either side of the Chadakoin River, which is a water of the United States.
Prior to the start of the demolition, an asbestos survey identified that some of the buildings contained asbestos. In February 2012, company employees entered one of the condemned buildings and removed regulated asbestos containing material without adequately wetting it, in violation of the Clean Air Act asbestos work practice standards. In addition, water contaminated with dust and debris from the demolition was allowed to flow offsite directly into the Chadakoin River. Defendant Williams should have been aware that such contaminated water was flowing into the river, and acted negligently in allowing the water to be discharged.
The conviction is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent-In-Charge Neal R. Marzloff; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau and the U.S. Occupational Safety and Health Administration.Passaic County, N.J., Man Sentenced to 10 Years in Prison for Possession of Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A former delivery driver from Totowa, New Jersey, was sentenced today to 120 months in prison for possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Anthony Chiampi, 49, previously pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to an information charging him with one count of possession of child pornography. U.S. District Judge Faith S. Hochberg imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Chiampi is registered sex offender, having been previously convicted for endangering the welfare of a child. As a result, he is subject to community supervision for life.On March 14, 2013, as part of his community supervision, officers of the N.J. Division of Parole visited Chiampi’s residence in Totowa. The officers discovered 63 disks that contained images and videos depicting child sexual abuse, including material that involved prepubescent minors.
In addition to the prison term, Judge Hochberg sentenced Chiampi to 10 years of supervised release.
U.S. Attorney Fishman credited the N.J. State Parole Board, under the direction of Chairman James T. Plousis, and special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: David A. Holman Esq., Assistant Federal Public Defender, NewarkOperation Dirty GlassRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in leading a conspiracy to distribute PCP.
Today’s sentence is a result of Operation Dirty Glass, a multi-agency investigation into large-scale PCP-trafficking in the Kansas City metropolitan area. Operation Dirty Glass resulted in a series of indictments that charged a total of 22 defendants.
Gerald W. Jones, 42, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 20 years in federal prison without parole.
On May 12, 2014, Jones pleaded guilty to his role in leading a conspiracy to distribute at least one kilogram of PCP. Jones is among 11 defendants who have pleaded guilty to the charges contained in a Nov. 9, 2012, federal indictment.
Undercover detectives and informants purchased PCP and crack cocaine from Jones on more than 20 separate occasions during the course of the investigation. A wiretap was authorized to assist investigators to identify Jones’ suppliers, associates, customers, and locations used in his drug trafficking operation. Investigators intercepted hundreds of drug-related telephone calls between Jones and his associates between Aug. 28 and Nov. 9, 2012. Investigators learned from the wiretap that Jones was primarily a PCP dealer who also sold crack cocaine.
Jones used various sources of supply for his drug trafficking business and would regularly sell bottles, dealer quantities, of PCP to his customers. Investigators learned that PCP dealers would commonly dip More brand cigarettes into the bottles containing liquid PCP and then distribute the PCP-dipped cigarettes, commonly called “sticks”, to PCP users.
On Nov. 14, 2012, investigators served a search warrant at Jones’ residence. During the search of Jones’ kitchen, investigators located numerous bottles that had been used to store PCP and several full bottles containing approximately 75 grams of PCP.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Kansas City, Mo., Police Department, the U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.One Defendant Sentenced and Two More Defendants Plead Guilty in Identity Theft Fraud Scheme Involving Personal Identifying Information from AT&T Customer FilesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Angel Arcos, 23, of Pompano Beach, was sentenced, and Monique Smith, 31, of Pompano Beach, and Arrington Basil Segu, 28, of Miami pled guilty before U.S. District Judge Marcia G. Cooke for participating in a conspiracy to unjustly enrich themselves by stealing personal identifying information and using the information to make unauthorized wire transfers from the victims’ bank accounts and obtain unauthorized credit or debit cards.
Arcos was sentenced to time served, to be followed by four years of supervised release. As a condition of his supervised release, Arcos was subject to 180 days of home detention with electronic monitoring. Arcos pled guilty on May 15, 2014, to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.
Smith pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft in violation of Title 18, United States Code, Section and 1028A. Segu pled guilty to one count of access device fraud and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Sentencing for Smith and Segu is scheduled for November 19, 2014.
On August 6, 2014, Judge Cooke sentenced Chouman Emily Syrilien, 25, of Lauderdale Lakes, to 34 months in prison, to be followed by three years of supervised release. Syrilien pled guilty to one count of possession of 15 or more unauthorized access devices and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A.
Co-defendants Jacqueline Nicole Lee Warrick, 26, of Miami, and Tracy Delva, 27, of Deerfield Beach, pled guilty on July 30, 2014, and Carlos Antonio Alexander, 24, of Orlando, pled guilty on July 16, 2014, to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Alexander’s sentencing is scheduled for October 1, 2014. Sentencing for Warrick and Delva is scheduled for October 15, 2014.
Trial is scheduled on September 22, 2014, for Shantegra La’Shae Godfrey, 23, of Deerfield Beach.
According to court documents, defendant Syrilien was employed by Interactive Response Technologies, Inc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Alexander, Delva, Godfrey, Smith and Warrick were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money.
Delva and Warrick both utilized fraudulently obtained debit and credit cards that bore their names as additional “authorized users” on victims’ accounts to make both retail purchases as well as cash advances in excess of $28,000. Alexander, Smith and Godfrey made retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity. From September 16 to 18, 2013, five withdrawals totaling $13,000 were made from the fraudulent account and deposited into Arcos’ checking account.
The defendants face a maximum of 30 years in prison for the conspiracy charge, a maximum of 10 years in prison for the access device fraud charge, and a mandatory term of two years in prison for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
Ohio Man Pleads Guilty to Threatening OfficersRead the Press Release
ABINGDON, VIRGINIA – A Crooksville, Ohio man has admitted to threatening to injure officers of the Lee County, Virginia Sherriff’s Office during a hearing this week in the United States District Court for the Western District of Virginia in Abingdon.
Jeffrey Allen Hinkle, Jr., 31, of Crooksville, Ohio, pled guilty to a one-count Information charging him with transmitting in interstate commerce a threat to injure another person.
This week in the United States District Court, Hinkle admitted that on May 21, 2014, he called the Lee County, Virginia Sherriff’s Office and threated to “pull-up beside every cruiser . . .with [a] county deputy and shoot the officer in his face” if the sheriff’s office did not intervene in a civil dispute Hinkle’s relatives were having with a neighbor in Lee County, Virginia.
At the sentencing scheduled for December 4, 2014 in Big Stone Gap, Hinkle faces a maximum possible penalty of up to 5 years in prison and/or a fine of up to $250,000.
The investigation of the case was led by Federal Bureau of Investigation with the assistance of the Lee County, Virginia Sheriff’s Office. The United States Marshals Service led the execution of the arrest warrant in Ohio. Special Assistant United States Attorney Kevin Jayne is prosecuting the case for the United States.
New York Man Admits Participating in Six Armed Robberies of New Jersey and New York Electronics StoresRead the Press Release
TRENTON, N.J. – A Brooklyn, New York, man admitted today to participating in six armed electronic store robberies, including robberies in Linden, New Jersey and Paramus, New Jersey, U.S. Attorney Paul J. Fishman announced.
Carl Williams, 30, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to a superseding indictment charging him with conspiracy to commit Hobbs Act robberies and brandishing a firearm in furtherance of a crime of violence. Williams has been in custody since his arrest on Feb. 14, 2013.
According to documents filed in this case and statements made in court:
Between June 11, 2012, and Jan. 16, 2013, Williams conspired with others to commit a series of armed electronics store robberies in New Jersey and New York. During each robbery, Williams and other conspirators would assign “look-outs” to remain outside while the rest of the group, armed with a gun, entered the store, locked the front doors, and tied-up employees and customers with zip ties before stealing the merchandise.
The charge of conspiracy to commit Hobbs Act robberies carries a maximum potential penalty of 20 years in prison. The charge of brandishing a firearm in furtherance of a crime of violence carries a mandatory minimum of seven years in prison, which must run consecutive to any other prison sentence imposed, and a maximum of life in prison. Each count carries a maximum fine of $250,000. Sentencing is scheduled for Jan. 21, 2015.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea. He also thanked the Linden and Woodbridge police departments in New Jersey, as well as the New York City and Nassau County police departments and the Kings County District Attorney’s Office in New York for their work in this case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division.
14-303Defense counsel: Mark A. Berman Esq., River Edge, N.J.
Williams, Carl Superseding Indictment
New Jersey Man Pleads Guilty to Operating Fraudulent Visa <br /> and Payroll Scheme to Facilitate Illegal ImmigrationRead the Press Release
A New Jersey man pleaded guilty today to orchestrating an eight-year scheme to falsify employment certifications to facilitate the illegal entry of Indian immigrants into the United States and to filing a false tax return.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey, Chief Richard Weber of Internal Revenue Service – Criminal Investigation (IRS-CI) and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
Sandipkumar Patel, 41, of Edison, New Jersey, pleaded guilty before U.S. District Judge William H. Walls of the District of New Jersey to conspiring to defraud the United States and to filing a false federal income tax return. Sentencing is scheduled for Jan. 6, 2015.
According to court documents filed with the plea agreement, from 2001 until 2009, Patel sponsored the visa applications of Indian nationals by falsely claiming to provide employment for them in the United States. Patel falsely certified on the visa applications that he would employ the immigrants in various technical fields at several New Jersey companies, thereby facilitating their illegal entry into the United States. Over the course of the scheme, immigrants paid Patel thousands of dollars for the false certifications to fraudulently secure the visas. To disguise the scheme, Patel issued payroll checks and other payroll forms. Patel required the immigrants to return the money from the checks and also to reimburse him for his payroll tax expenses. Patel used the fraudulent pay stubs and payroll checks to support false applications to extend the visas, and Patel charged the immigrants fees for the visa extensions.
As a result of falsely carrying the immigrant employees on his payrolls, Patel overstated his payroll expenses on his federal income tax returns by more than $1.4 million over four years, under-reporting his tax obligation by over $400,000 for those years.
This case was investigated by the IRS-CI and DSS. The case is being prosecuted by Senior Trial Attorneys Hope S. Olds and William H. Kenety of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Danielle M. Corcione of the District of New Jersey, with assistance from the Criminal Division’s Asset Forfeiture and Money Laundering Section.New Jersey Man Pleads Guilty to Operating Fraudulent Visa and Payroll Scheme to Facilitate Illegal ImmigrationRead the Press Release
NEWARK, N.J. – A New Jersey man pleaded guilty today to orchestrating an eight-year scheme to falsify employment certifications to facilitate the illegal entry of Indian immigrants into the United States and to filing a false tax return.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Chief Richard Weber of Internal Revenue Service – Criminal Investigation (IRS-CI) and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
Sandipkumar Patel, 41, of Edison, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to conspiring to defraud the United States and to filing a false federal income tax return. Sentencing is scheduled for Jan. 6, 2015.
According to court documents filed with the plea agreement, from 2001 until 2009, Patel sponsored the visa applications of Indian nationals by falsely claiming to provide employment for them in the United States. Patel falsely certified on the visa applications that he would employ the immigrants in various technical fields at several New Jersey companies, thereby facilitating their illegal entry into the United States. Over the course of the scheme, immigrants paid Patel thousands of dollars for the false certifications to fraudulently secure the visas. To disguise the scheme, Patel issued payroll checks and other payroll forms. Patel required the immigrants to return the money from the checks and also to reimburse him for his payroll tax expenses. Patel used the fraudulent pay stubs and payroll checks to support false applications to extend the visas, and Patel charged the immigrants fees for the visa extensions.
As a result of falsely carrying the immigrant employees on his payrolls, Patel overstated his payroll expenses on his federal income tax returns by more than $1.4 million over four years, under-reporting his tax obligation by over $400,000 for those years.
This case was investigated by IRS-CI and DSS. The case is being prosecuted by Senior Trial Attorneys Hope S. Olds and William H. Kenety of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Danielle M. Corcione of the District of New Jersey, with assistance from the Criminal Division’s Asset Forfeiture and Money Laundering Section.
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Patel, Sandipkumar Information
New England Compounding Center Supervising Pharmacist Arrested at Logan International AirportRead the Press Release
A Canton, Massachusetts, man was arrested today at Boston's Logan International Airport in connection with the ongoing criminal investigation of New England Compounding Center (NECC) by the Justice Department’s Civil Division and U.S. Attorney’s Office for the District of Massachusetts.
Glenn Adam Chin, 46, was attempting to board a plane to Hong Kong when he was arrested by federal authorities on one count of mail fraud. He is scheduled to appear before Chief Magistrate Judge Jennifer C. Boal in the U.S. District Court for the District of Massachusetts later today. The maximum sentence under the statute is 20 years in prison, followed by three years of supervised release and a $250,000 fine.
The U.S. Attorney’s Office and the Civil Division’s Consumer Protection Branch have conducted an active ongoing criminal investigation of NECC since the nationwide fungal meningitis outbreak began in the fall of 2012. Following the outbreak, the Center for Disease Control (CDC) reported that 751 patients across the country were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate, or MPA, compounded at NECC. The CDC reported that of those 751 patients, 64 died.
Chin was a supervising pharmacist at NECC who was involved in compounding the contaminated MPA that caused the outbreak. The criminal complaint charges Chin with participating in a scheme to fraudulently cause one lot of MPA to be labeled as injectable, meaning that it was sterile and fit for human use, and shipped to one of NECC’s customers, Michigan Pain Specialists. As alleged in the affidavit, after receiving the MPA from NECC, doctors at Michigan Pain Specialists injected the drug into their patients believing it to be injectable as labeled. As a result, 217 of those patients contracted fungal meningitis, and 15 of those patients died.
Although the criminal investigation of Chin and others is ongoing, the U.S. Attorney's Office charged and arrested Chin today after federal authorities learned that he was planning to leave the country on an international flight that was scheduled to depart this morning.
If you are a victim in the NECC matter you may call the U.S. Attorney's Office victim assistance message line at 888-221-6023 or email [email protected] to obtain case status information or assistance. You may also find information at: http://www.justice.gov/usao/ma/news.html .
U.S. Attorney Carmen M. Ortiz; Assistant Attorney General Stuart F. Delery for the Civil Division; Acting Special Agent in Charge James Royal of the Food and Drug Administration, Office of Criminal Investigations; Special Agent in Charge Vincent Lisi of the FBI’s Boston Field Division; Inspector in Charge Kevin Niland of the U.S. Postal Inspection Service; Special Agent in Charge Jeffrey Hughes of the U.S. Department of Veterans Affairs, Office of Inspector General Northeast Field Office and Resident Agent in Charge Patrick J. Hegarty of the Defense Criminal Investigative Service-Office of Inspector General in Boston, made the announcement today. The case is being prosecuted by George P. Varghese and Amanda P.M. Strachan of U.S. Attorney Ortiz’s Health Care Fraud Unit, and John W.M. Claud of the Civil Division’s Consumer Protection Branch.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nespelem Man Sentenced to Federal Prison for Multiple AssaultsRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Vernon Mason Saulque, age 32, of Nespelem, Washington, was sentenced on Wednesday, September 3, 2014, after having previously pleaded guilty on May 21, 2014, to four counts of Assault With a Dangerous Weapon. United States District Court Chief Judge Rosanna Malouf Peterson sentenced Saulque to a 21-month sentence on each count, to run consecutively, for a total of 84 months of imprisonment, to be followed by three years of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, on July 13, 2013, Saulque was at the home on the Colville Indian Reservation of one of the victims, when he was asked to leave because of inappropriate behavior. A few minutes later, the four victims got into a car and left the house. About one block from the house, Saulque, who had stepped out of his truck and waited for the victims, fired 16 rounds at the car with an AR-15-22 semi-automatic rifle, striking the car 8 times. Fortunately, nobody was struck. Saulque fled in his truck. He was arrested a short time later by Colville Tribal Police.
Michael C. Ormsby stated, “firearm violence is a significant issue in this country and we are very appreciative of the hard work and complete investigation done by the Colville Tribal Police and the FBI.” The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to aggressively prosecuting violent crimes, especially those committed with firearms that occur within federal jurisdiction, including the Indian reservations in the District.
This investigation was conducted by FBI, the Colville Tribal Police Department, and the assistance of the Washington State Patrol Crime Lab. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CR-13-00136-RMP
NECC Supervising Pharmacist Arrested at Logan International AirportRead the Press Release
BOSTON - A Canton man was arrested today at Boston’s Logan International Airport in connection with the U.S. Attorney’s Office’s and the Justice Department’s Civil Division’s ongoing criminal investigation of New England Compounding Center (NECC).
Glenn Adam Chin, 46, was attempting to board a plane to Hong Kong when he was arrested by federal authorities. He was charged in U.S. District Court with one count of mail fraud. He is scheduled to appear before Chief Magistrate Judge Boal later today.
The U.S. Attorney’s Office and the Civil Division’s Consumer Protection Branch have had an active ongoing criminal investigation of NECC since the nationwide fungal meningitis outbreak began in the Fall of 2012. Following the outbreak, the CDC reported that 751 patients across the country were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate, or MPA, compounded at NECC. The CDC reported that of those 751 patients, 64 died.
Chin was a supervising pharmacist at NECC who was involved in compounding the contaminated MPA that caused the outbreak. The criminal complaint charges Chin with participating in a scheme to fraudulently cause one lot of MPA to be labeled as injectable, meaning that it was sterile and fit for human use, and shipped to one of NECC’s customers, Michigan Pain Specialists. As alleged in the affidavit, after receiving the MPA from NECC, doctors at Michigan Pain Specialists injected the drug into their patients believing it to be injectable as labeled. As a result, 217 of those patients contracted fungal meningitis, of which 15 died.Although the criminal investigation of Chin and others is ongoing, the U.S. Attorney’s Office charged and arrested Chin today after federal authorities learned that he was planning to leave the country on an international flight that was scheduled to depart this morning.
If you are a victim in the NECC matter you may call the U.S. Attorney’s Office victim assistance message line at 888-221-6023 or email [email protected] to obtain case status information or assistance. You may also find information on our website at http://www.justice.gov/usao/ma/news.html.
The maximum sentence under the statute is 20 years in prison, followed by three years of supervised release and a $250,000 fine.
U.S.Attorney Carmen M. Ortiz; Assistant Attorney General for the Civil Division Stuart F. Delery; James Royal, Acting Special Agent in Charge of the Food and Drug Administration; Office of Criminal Investigations; Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Patrick J. Hegarty, Resident Agent-in-Charge, Office of Inspector General, Defense Criminal Investigative Service in Boston made the announcement today. The case is being prosecuted by George P. Varghese and Amanda P.M. Strachan of Ortiz’s Health Care Fraud Unit, and John W.M. Claud of DOJ’s Consumer Protection Branch.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Mount Olive Minister Sentenced in Child Pornography CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today in federal court United States District Judge Terrence W. Boyle, sentenced TIMOTHY JACK STRICKLAND to 151 months imprisonment followed by 5 years supervised release.
On February 18, 2014, a Federal Grand Jury returned a Criminal Indictment charging STRICKLAND. On May 14, 2014, STRICKLAND, pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
According to the investigation, in March, 2013, while attending training, a Federal Bureau of Investigation Task Force Officer engaged in a chat with STRICKLAND, who it was determined later, was a minister at Jones Grove Pentecostal Church in Mount Olive. During the chat the agent observed that STRICKLAND’s directory contained child pornography files. A search warrant was later executed at STRICKLAND’s residence, where a laptop, several harddrives and other media devices were seized. Computer forensics revealed approximately 124,391 images of child pornography.
The criminal investigation of this case was conducted by the Federal Bureau of Investigation, Wayne County Sheriff’s Office, Duplin County Sheriff’s Office and the Mount Olive Police Department. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Men Arrested in Bakersfield Indicted for Cocaine SmugglingRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jimmy Gil, 34, of Shafter, Jose Luis Montoya-Salazar, (Montoya), 42, of Mexico City, and Luis Ricardo Eslava-Corral (Eslava), 42, of Sinaloa, Mexico, charging them with conspiring to import, distribute, and possess with intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced. Montoya was also charged with being an alien found in the United States after two prior deportations.
According to court documents, on August 19, 2014, Customs and Border Protection officers at the Otay Mesa, California Port of Entry discovered cocaine in a hidden compartment in the floor of a trailer that was being driven by Eslava. Federal agents were called in and began following the truck. The truck made stops in San Diego and San Clemente and on August 20, 2014, continued driving toward Bakersfield. Gil met the truck at a site south of Bakersfield and took possession of the tractor trailer. Gil and Montoya began unloading 18 one-kilogram packages of cocaine from the compartment in the floor of the trailer and placed the packages in Montoya’s vehicle. Gil and Montoya were arrested before they were able to unload the remaining packages of cocaine. Follow-up investigation resulted in the seizure of over $3.1 million in cash hidden in an asphalt roller at another location in Bakersfield. Thirty-eight kilograms of cocaine were seized with an estimated street value of over $3 million.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, Kern County Sheriff’s Office, Tulare County Sheriff’s Office, and Bakersfield Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
The defendants are scheduled to be arraigned on September 8, 2014. If convicted of the drug conspiracy, they face 10 years to life in prison and a $10 million fine. Montoya also faces a maximum prison term of two years and a fine of $250,000, if convicted of being a deported alien found in the United States. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, Eslava and Montoya are subject to deportation to Mexico after serving any prison sentence imposed.
Man Who Shot at Wilmington Police Officer Sentenced to 420 Months in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today that in federal court, Chief United States District Judge James C. Dever III sentenced JERMAINE CORDOVA , 38, Council, North Carolina, to 420 months imprisonment, followed by 5 years of supervised release.
JERMAINE CORDOVA was named in an Indictment filed on August 21, 2013; charging him with Possession of a Firearm and Ammunition by a Felon. On March 26, 2014, CORDOVA pled guilty to this charge.
According to the investigation, on January 2, 2013, CORDOVA contacted a female stripper and asked her to strip for the victim in this case for $500.00. The female agreed and set up the meeting at her apartment via text message. Upon the victim’s arrival, CORDOVA, along with a male co-conspirator, ambushed the victim, shooting him in the leg. The victim fell to the ground and was shot at least four more times by CORDOVA and/or the co-conspirator. The victim identified CORDOVA as one of the shooters.
On January 29, 2013, a traffic stop was conducted by the Wilmington Police Department on a vehicle occupied by CORDOVA and the co-conspirator. An officer approached the stopped vehicle and asked CORDOVA, who was sitting in the driver’s seat, if he had anything on his person. CORDOVA surrendered a bag containing 12.85 grams of marijuana. CORDOVA’s left arm was restrained with a handcuff as he sat in the vehicle. CORDOVA then became upset and pulled out a loaded semi-automatic pistol, pointed it at the officer, and fired a shot. The officer returned fire missing CORDOVA. CORDOVA then began to flee on foot and ran into a second officer on the scene. CORDOVA raised his firearm at this officer and the officer fired, striking CORDOVA in the left leg. CORDOVA continued to flee and barricaded himself inside a storage building.
Police were forced to break down the door and found CORDOVA inside holding a firearm to his head. After several hours, CORDOVA finally came to the door of the storage building and put down his firearm. CORDOVA was immediately taken into custody and transported to a local hospital for medical treatment.
Investigation of this case was conducted by the Wilmington Police Department along with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Special Assistant United States Attorney Charity Wilson represented the government. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute violent crime, firearm related cases, and narcotic crimes.
Madill Woman Pleads Guilty to Wire FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that KRISTEN RENEA BROWN, age 19, of Madill, Oklahoma, pled guilty to an Information charging her with WIRE FRAUD, in violation of Title 18, United States Code, Section 1343.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Information alleged that from on or about September 23, 2013 to on or about October 1, 2013, KRISTEN RENEA BROWN, within the Eastern District of Oklahoma and elsewhere, the defendant herein, did execute a scheme to defraud Victim #1, an account holder at Landmark Bank in the Eastern District of Oklahoma, to-wit: the defendant transferred money from the bank account of Victim #1 into Defendant’s own bank account at Landmark Bank, and by means of debit card used said money to purchase items for her own use and benefit and the use and benefit of others. As part of the scheme to defraud, the defendant transmitted and caused to be transmitted by means of wire communication in interstate commerce, writings, signs, signals, pictures, or sounds, for the purpose of executing and attempting to execute the aforesaid scheme and artifice to defraud.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion.
The statutory range of punishment is 20 years imprisonment and/or a fine of up to $250,000.
Assistant United States Attorney Chris Wilson represented the United States.
Luzerne County Man Pleads Guilty to Conspiracy to Commit Sex Trafficking of A MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 30-year-old Pittston resident pleaded guilty today before Senior U.S. District Court Judge Edwin M. Kosik to conspiring with others to recruit, harbor, and transport minor females to engage in commercial sex acts for money during the summer of 2013 in Luzerne and Dauphin counties.
According to United States Attorney Peter Smith, the defendant, Gregory Boone, admitted to participating in a scheme to use minor females to engage in prostitution. Boone and his co-conspirators used cell phones to produce and transmit photographs of the females which were posted on a website to facilitate prostitution activities in motels in Luzerne County and in the Harrisburg area of Pennsylvania.
Boone was indicted by a federal grand jury in December 2013, as a result of an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, Pittston Police, and the Luzerne County District Attorney’s Office.
Boone faces a potential maximum sentence of life in prison and a $250,000 fine. Judge Kosik ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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."
Keshena, WI Man Sentened to Prison for Sexual AbuseRead the Press Release
United States Attorney James L. Santelle announced that James F. King, Sr., (age: 40), of Keshena, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on July 28, 2014, in United States District Court to 87 months of imprisonment, followed by a term of 10 years on supervised release. The sentence was the result of a guilty plea by King on March 25, 2014, to a federal indictment charging him with one count of sexually abusing a person incapable of declining participation.
The investigation revealed that on November 20, 2013, King, sexually abused a 25-year-old female, who was asleep at the time. The victim indicated that she sleeping in the basement of the residence when she was awakened by someone tugging at her clothing. The victim kicked King and yelled for help as he ran from the residence. Law enforcement interviewed King and he admitted that he sexually assaulted the victim.
The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.
# # # #Keshena, WI Man Sentenced to 20 Years in Prison for Sexual Abuse of a ChildRead the Press Release
United States Attorney James L. Santelle announced that James A. Peters, (age: 27), of Keshena, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on August 28, 2014, in United States District Court to 240 months of imprisonment, followed by a term of 15 years on supervised release. The sentence was the result of a guilty plea by Peters on May 28, 2014, to a federal information charging him with one count of engaging in a sex act with a person incapable of appraising the nature of the conduct.
The investigation revealed that on January 8, 2014, Peters, sexually abused an 11-year-old female. Peters admitted that he sexually assaulted the victim.
The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.
# # # # #Jury Convicts Columbia Man of Heroin ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was convicted by a federal trial jury today of his role in a conspiracy to distribute heroin.
Clifford Andrew Lake, 55, of Columbia, was found guilty of participating in a conspiracy to distribute heroin in Boone County, Mo., from Sept. 24 to Oct. 28, 2013.
Co-defendants Ravid Donald Smith, Jr., 50, and Lemont Michael Livingston, 27, both of Columbia, have pleaded guilty to their roles in the drug-trafficking conspiracy.
Evidence introduced during the trial indicated that Lake accompanied co-defendants Smith and Livingston during multiple trips to Chicago to obtain heroin, and that he assisted them in selling heroin to others.
In January 2013, Columbia police officers began receiving information that Livingston was obtaining heroin from St. Louis, Mo., and distributing it in the Columbia area. An investigation revealed that beginning in late summer 2013, Livingston began to bring drugs from Chicago, and was being assisted by Smith and Lake. Investigators used a cooperating source to make a controlled drug buy from Smith on Sept. 24, 2013. Livingston and Lake were present during the transaction.
On Oct. 28, 2013, investigation revealed that Livingston was en route back to Columbia from Chicago, and that he possessed a distribution quantity of heroin. Officers had obtained a search warrant for Livingston’s residence and decided to serve it on that date. At approximately 7:05 a.m. Livingston arrived at his residence, driving a blue BMW X5. Officers made contact with him, detained him, and advised him of the search warrant. The BMW was searched and inside a backpack located in the vehicle, officers recovered a plastic bag containing 196 grams of heroin.
Officers then entered Livingston’s residence and encountered Lake inside. During a search of the residence, additional items associated with drug trafficking were recovered, including digital scales, cutting materials for the heroin, and a handgun.
Livingston admitted he made multiple trips to Chicago to obtain heroin, and that he had just returned with a quantity of heroin. He stated that Smith had accompanied him, and had also returned with a shipment of heroin. Livingston told officers that he was responsible for collecting money for the sale of heroin.
A cooperating witness agreed to assist investigators in making contact with Smith, and acquired 32 grams of heroin from him. Smith was arrested later that day.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for about half an hour before returning the guilty verdict to U.S. District Judge Nanette K. Laughrey, ending a trial that began Wednesday, Sept. 3, 2014.
Under federal statutes, Lake is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $1 million. Smith and Livingston are each subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $5 million. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration and the Columbia, Mo., Police Department.Jasper County Man Pleads Guilty to Producing Child Porn, Faces at least 15 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jasper County, Mo., man who contacted a child victim on Facebook pleaded guilty in federal court today to producing child pornography.
Ian Holman, 33, of Jasper County, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in an Oct. 1, 2013, federal indictment.
According to court documents, law enforcement authorities received reports regarding two minors that Holman contacted via Facebook. One of the minors, a 13-year-old in Carthage, Mo., told officers that Holman (using the screen name “Lucky Holman”) offered to pay her $75,000 to $100,000. He also asked her to send him sexually explicit pictures of herself, which she did.
On Sept. 11, 2013, after receiving the report from Jane Doe, a sheriff’s deputy was dispatched to Holman’s residence. Holman attempted to elude the deputy by running out the back of the house and into the woods. The deputy, along with two other officers and a K9 unit, pursued Holman into the woods. The officers searched for Holman for approximately 45 minutes. The deputy was able to contact Holman by phone and persuade him to turn himself in.
According to court documents, Holman told officers that he friended numerous 12-to-14-year-old girls in the Carthage and Webb City area and used Facebook instant messaging to contact the girls.
Under federal statutes, Holman is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Jasper County, Mo., Sheriff’s Department and Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."James Robert Morton Sentenced to over Seven Years in Prison for Distribution of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On Sept. 3, 2014, James Robert Morton, 46, of Rockford, Tenn., was sentenced to serve 88 months in prison by the Honorable Leon Jordan, U.S. District Judge. Morton pleaded guilty in August 2013 to federal charges of knowingly distributing child pornography.
Upon his release from prison, Morton will serve a life term of supervised release during which his activities will be supervised by the U.S. Probation Office. Morton was further ordered to pay $4,000 in restitution to victims whose digital images were distributed by him. Also, as a result of the conviction, the federal Sex Offender Registration and Notification Act will require Morton to register upon his release from prison with the state sex offender registry anywhere he resides, is employed, or is a student.
The conviction and sentencing of Morton was the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew T. Morris 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.”
Indictment: Keebler Employees Filed False Reports to Receive Unemployment BenefitsRead the Press Release
KANSAS CITY, KAN. – Federal indictments were returned Wednesday charging that 16 people who worked for Keebler Company in Kansas City, Kan., fraudulently received unemployment benefits, U.S. Attorney Barry Grissom.
The indictments allege that while working for Keebler each of the defendants received unemployment benefits by submitting false reports to the Kansas Department of Labor.
Defendants, who are charged in separate indictments with one count each of theft of government funds and one count of bank fraud, include the following:
Angie Raffurty, 43, Blue Springs, Mo., who is alleged to have fraudulently received $10,488 in benefits.
Bobby Grant, 49, Kansas City, Kan., who is alleged to have fraudulently received $31,466.
Darrell Haywood, 32, Kansas City, Kan., who is alleged to have fraudulently received $10,564.
Debbie Gleghorn, 55, Kansas City, Kan., who is alleged to have fraudulently received $10,633,
Durail Bailey, 36, Kansas City, Kan., who is alleged to have fraudulently received $12,693.
Herman Callands, Jr., 46, Kansas City, Kan., who is alleged to have fraudulently received $13,766.
James Mango, 50, Kansas City, Mo., who is alleged to have fraudulently received $17,893
Julian Emery, 38, Blue Springs, Mo., who is alleged to have fraudulently received $15,788.
Maxine Nelson, 44, Kansas City., Mo., who is alleged to have fraudulently received $12,795.
Randy Laughlin, 55, Blue Springs, Mo., who is alleged to have fraudulently received $27,388.
Rodney Taylor, 44, Kansas City, Mo., who is alleged to have fraudulently received $15,598.
Rodrigo Diacono, 35, Lenexa, Kan., who is alleged to have fraudulently received $10,168.
Tina Cooper, 48, Kansas City, Mo., who is alleged to have fraudulently received $18,796.
Donald Barnett, 42, Independence, Mo., who is alleged to have fraudulently received $11,490.
Edith Clark, 53, Kansas City, Mo., who is alleged to have fraudulently received $12,820.
Kaven Daniels, 43, Kansas City, Mo., who is alleged to have fraudulently received $12,633.If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the theft of government funds, and a maximum penalty of 30 years and a fine up to $1 million on the bank fraud charge. The Kansas Department of Labor, the U.S. Department of Labor Employee and Benefits Security Administration, the U.S. Department of Labor – Office of Inspector General and the FBI investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
OTHER INDICTMENTS
K. Kevin James, 57, Lenexa, Kan., and his son, Charlie M. James, 35, Desoto, Kan., are charged with wire fraud and other counts.
K. Kevin James is charged with 10 counts of bank fraud, eight counts of wire fraud and one count of conspiracy to defraud the United States.
Charlie M. James is charged with four counts of wire fraud, one count of conspiracy to defraud the United States, three counts of tax evasion and one count of bankruptcy fraud.The indictment alleges the crimes were committed while the defendants were owners of KC United, LLC, a holding company for five construction companies that was located in Kansas City, Kan. One of the companies owned by KC United was Miller Paving and Construction.
The indictment alleges that K. Kevin James and others obtained business loans from Bank of Blue Valley by hiding and falsely representing the failing financial condition of KC United. The fraud resulted in a loss to the bank of more than $877,382. The bank received federal funds from the U.S. Treasury’s Troubled Asset Relief Program (TARP). The indictment also alleges the defendants diverted prevailing wage fringe benefit payments for employees for other purposes.
“The Bank of Blue Valley suffered losses on the loans and was unable to repay TARP or their quarterly TARP dividend, and eventually sold the loans at a loss of $877,000,” said Christy Romero, Special Inspector General for Tarp (SIGTARP).”
Upon conviction, the crimes carry the following penalties:
Bank fraud: A maximum penalty of 30 years in federal prison on each count and a fine up to $1 million.
Wire fraud: A maximum penalty of 20 years on each count and a fine up to $250,000.
Conspiracy to defraud the United States: A maximum penalty of five years and a fine up to $250,000.
Tax evasion: A maximum penalty of five years and a fine up to $250,000.
Bankruptcy fraud: A maximum penalty of five years and a fine up to $250,000.The Internal Revenue Service and Special Investigator for the Troubled Asset Relief Program investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Charles R. Waits, 53, Lenexa, Kan., is charged with one count of bank fraud. The crime is alleged to have occurred in 2010 in Johnson County, Kan.
The indictment alleges that while Waits was the managing member of a corporation that operated the Kansas City Sports Grill he provided false financial information to the Community America Credit Union in order to obtain $605,000 in business loans.
The U.S. Secret Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Damon Harlin, Jr., 35, Kansas City, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Aug. 20, 2014, in Kansas City, Kan.
If convicted, he faces a penalty of not less than 15 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Timothy R. Whittington, Jr., 34, Leavenworth, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Aug. 16, 2014, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Christopher S. Virgil, 42, formerly of Leavenworth, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred April 27, 2012, in Leavenworth, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Highland Heights Man Pleads Guilty to Sending White Powder to IRSRead the Press Release
A Highland Heights man pleaded guilty today after sending a letter containing white powder to the Internal Revenue Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
John T. Buchak, 27, pleaded guilty to one count of threatening use of a weapon of mass destruction. He is scheduled to be sentenced on Dec. 4.
Buchak sent a letter via the U.S. Mail to the Internal Revenue Service on March 31, 2014, that contained white powder, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Chelsea Rice following an investigation by the Federal Bureau of Investigation.
Greensburg Man with 1992 Child Porn Conviction Charged with Possessing Sexual Images and Videos of MinorsRead the Press Release
PITTSBURGH - A Westmoreland County resident has been indicted by a federal grand jury in Pittsburgh on charges of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Aug. 26 and unsealed today, named John Mallory, 60, of Greensburg, Pa., as the sole defendant.
According to the indictment, Mallory was found to be in possession of visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Because Mallory was convicted in 1992 for receiving child pornography, he faces a mandatory minimum of 10 years imprisonment for the current charges.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Department of Homeland Security conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.justice.gov/psc.
Georgia Man Pleads Guilty to Stealing Deceased Persons' Identities to Gain $2.3 Million in State Tax RefundsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Georgia man pleaded guilty in federal court today to a wire fraud scheme in which he used the identity information of deceased persons to obtain more than $2.3 million in tax refunds from several states.
Sirhon Rivers, also known as “Ron,” 40, of Georgia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to one count of wire fraud, one count of aggravated identity theft, one count of conspiracy to commit money laundering and one count of conspiracy to commit wire fraud and aggravated identity theft.
By pleading guilty today, Rivers admitted that he unlawfully obtained $547,000 from the Missouri Department of Revenue from January 2008 to August 2012 by filing fraudulent tax returns. Rivers used the same scheme in others states – including Kansas, Alabama, Arizona, Connecticut, Delaware, Georgia, Idaho, Louisiana, Michigan, Minnesota, New York, North Carolina, North Dakota, Oklahoma, Rhode Island and Virginia – to unlawfully acquire a total of $2,365,617 in fraudulent state tax refunds.
Rivers obtained personal identification information – including names, Social Security numbers, and dates of birth – from deceased persons. He submitted state tax returns using that information, adding false and fraudulent information such as employment and wages earned. State tax returns were submitted electronically, with the refunds electronically transferred to bank accounts that Rivers opened at several financial institutions.
Rivers must forfeit to the government $2,365,000, which constitutes the amount of money fraudulently received from the various states into his bank accounts.
Under federal statutes, Rivers is subject to a sentence of up to 60 years in federal prison without parole, plus a fine up to $1 million and an order of restitution. Rivers is also subject to a mandatory consecutive sentence of two years in federal prison without parole for aggravated identity theft. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, the Missouri Department of Revenue Criminal Tax Investigations Bureau and the Missouri Department of Revenue Compliance and Investigation Bureau.
Founder of USA Harvest Sentenced to 24 Months in Prison for Embezzling from the Charity and Tax FraudRead the Press Release
– Hugh “Stan” Curtis ordered to pay $183,354 in restitution
LOUISVILLE, Ky. – USA Harvest founder, Hugh “Stan” Curtis was sentenced today by Chief Judge Joseph H. McKinley Jr., to serve 24 months in prison, followed by a three year period of supervised release and ordered to pay $183,354 in restitution, announced David J. Hale, United States Attorney for the Western District of Kentucky. Restitution to the IRS will be handled independently by the civil division of the IRS, and the amount owed in taxes will be calculated independently by the IRS. Curtis pleaded guilty in U.S. District Court in Louisville to a to a seven count federal indictment charging him with mail fraud, money laundering and filing false income tax returns with the Internal Revenue Service (IRS) on July 3, 2014.
“As founder and sole officer of USA Harvest, Stan Curtis occupied a position of significant responsibility and trust. He abused that trust by diverting charitable donations intended for the poor and hungry,” stated U.S. Attorney Hale. “Curtis will spend 24 months in prison and has been ordered to pay back the $187,354 that he stole from the foundation and used for his own personal benefit.”
Curtis, 65, of Louisville, Kentucky, admitted that from September 2005 through September 2007, he stole $183,354 in donations that he solicited on behalf of USA Harvest, non-profit, I.R.C. 501(c)(3) organization he founded. Of these donated funds, Curtis acknowledged that he deposited $164,620 into his personal account and cashed donation checks totaling $18,734 – and thereafter used the funds for his personal benefit. The $164,620 includes checks written to USA Harvest on August 29, 2007 for $20,000 from Play Like the Pros, LLC and a September 5, 2007 donation from Richemont North America, Inc., for $25,000 which Curtis deposited into his own personal bank account and used for his own personal gain. Curtis did not report the $183,354 as income with the Internal Revenue Service.
Curtis also admitted that from 2005 through 2008, he failed to report to the Internal Revenue Service approximately $553,891.67 in personal income derived from donations made to USA Harvest. From 2005 through 2008 Curtis falsely included approximately $353,165 in unreimbursed travel expense deductions on his federal income tax returns. Of the $553,891.67 in unreported income, Curtis used approximately $370,537.67 in USA Harvest funds to pay for personal meals, personal travel and personal entertainment expenses. In total, defendant Curtis failed to pay $270,000 in federal income tax from calendar years 2005 through 2008.
Curtis admitted to filing false tax returns with the IRS. In 2005, Curtis failed to report approximately $160,549.56 in income and falsely deducted approximately $134,623 in unreimbursed travel expenses from USA Harvest on his 2005 federal income tax return filed on April 15, 2006. For the year 2006 Curtis failed to report approximately $217,085.18 income and falsely deducted approximately $130,739 in unreimbursed travel expenses from USA Harvest on his 2006 federal income tax return filed on May 9, 2007. For the year 2007 Curtis failed to report approximately $97,264.48 and falsely deducted approximately $87,803 in unreimbursed travel expenses from USA Harvest on his federal income tax return filed on April 15, 2008. For the year 2008 Curtis failed to report approximately $78,992.45 in income from USA Harvest on his 2008 federal income tax return filed on October 16, 2009. The return was filed by Curtis and signed under the penalty of perjury.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Internal Revenue Service, Criminal Investigations Division.
Former Virginia Governor and Former First Lady<br /> Convicted on Public Corruption ChargesRead the Press Release
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office, Chief Richard Weber of Internal Revenue Service – Criminal Investigation (IRS-CI) and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
A federal jury returned guilty verdicts today against former Virginia Governor Robert F. McDonnell and former First Lady of Virginia Maureen G. McDonnell for participating in a scheme to violate federal public corruption laws.
Robert McDonnell and Maureen McDonnell, both 60 and of Glen Allen, Virginia, were convicted of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right. Robert McDonnell was convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right, while Maureen McDonnell was convicted on two of the three honest services wire fraud counts and four of the six counts of obtaining property under color of official right. Maureen McDonnell also was convicted of one count of obstruction of an official proceeding. In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of 9 of 13 counts.
“As Virginia’s governor, Robert McDonnell and his wife turned public service into a money-making enterprise, abusing the Commonwealth’s highest office to benefit a Virginia businessman in exchange for more than $170,000 in gifts and loans,” said Assistant Attorney General Caldwell. “In pursuit of a lifestyle that they could ill afford, McDonnell and his wife eagerly accepted luxury items, designer clothes, free vacations and the businessman’s offer to pay the costs of their daughter’s wedding. In return, McDonnell put the weight of the governor’s mansion behind the businessman’s corporate interests. The former governor was elected to serve the people of Virginia, but his corrupt actions instead betrayed them. Today’s convictions should send a message that corruption in any form, at any level of government, will not be tolerated.”
“This is a difficult and disappointing day for the Commonwealth of Virginia and its citizens,” said U.S. Attorney Boente. “When public officials turn to financial gain in exchange for official acts, we have no choice but to prosecute them. I thank the Assistant U.S. Attorneys, FBI, Virginia State Police, and the Internal Revenue Service – Criminal Investigation for their exceptional efforts in the investigation and prosecution of this case.”
“Public corruption, particularly among our elected officials, is the FBI’s highest criminal investigative priority,” said FBI Special Agent in Charge Lee. “We will engage and engage vigorously when we receive credible allegations of any federal, state, or local public official illegally using the power of their position to receive a personal benefit. The people of the Commonwealth deserve better than pay-to-play politics.”
“When public officials commit crimes as part of their official duties, they are violating the public trust,” said IRS-CI Chief Weber. “IRS-CI agents play a critical role in rooting out public corruption of elected officials. The public expects more of their leaders in government and our agents work tirelessly on their behalf to ensure that we are all playing by the same rules.”
According to the evidence presented at trial, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., then Star Scientific’s chief executive officer. The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote, and obtain research studies for Star’s products, including the dietary supplement Anatabloc.
According to court records and evidence, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value. As part of the scheme, the official actions that Robert McDonnell performed included arranging meetings for Williams with Virginia government officials, hosting and attending events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating its relationships with Virginia government officials.
The evidence further showed that the McDonnells attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.
Similarly, on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with Williams. Additionally, after her interview with law enforcement, Maureen McDonnell drafted a handwritten note to Williams in which she falsely attempted to make it appear that she and Williams had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence, and impede the investigation.
The case is being investigated by the FBI, IRS-CI and the Virginia State Police. The case is being prosecuted by Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber and Ryan S. Faulconer o f the U.S. Attorney’s Office for the Eastern District of Virginia.Former Virginia Governor and Former First Lady Convicted on Public Corruption ChargesRead the Press Release
RICHMOND, Va. – A federal jury returned guilty verdicts today against former Virginia Governor Robert F. McDonnell and former First Lady of Virginia Maureen G. McDonnell for participating in a scheme to violate federal public corruption laws.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief, IRS Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
Robert McDonnell and Maureen McDonnell, both 60 and of Glen Allen, Virginia, were convicted of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right. Robert McDonnell was convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right, while Maureen McDonnell was convicted on two of the three honest services wire fraud counts and four of the six counts of obtaining property under color of official right. Maureen McDonnell also was convicted of one count of obstruction of an official proceeding. In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of 9 of 13 counts.
“This is a difficult and disappointing day for the Commonwealth of Virginia and its citizens,” said U.S. Attorney Boente. “When public officials turn to financial gain in exchange for official acts, we have no choice but to prosecute them. I thank the prosecutors, FBI, Virginia State Police, and the Internal Revenue Service-Criminal Investigation for their exceptional efforts in the investigation and prosecution of this case.”
“As Virginia’s governor, Robert McDonnell and his wife turned public service into a money-making enterprise, abusing the Commonwealth’s highest office to benefit a Virginia businessman in exchange for more than $170,000 in gifts and loans,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “In pursuit of a lifestyle that they could ill-afford, McDonnell and his wife eagerly accepted luxury items, designer clothes, free vacations and the businessman’s offer to pay the costs of their daughter’s wedding. In return, McDonnell put the weight of the governor’s mansion behind the businessman’s corporate interests. The former governor was elected to serve the people of Virginia, but his corrupt actions instead betrayed them. Today’s convictions should send a message that corruption in any form, at any level of government, will not be tolerated.”
“Public corruption, particularly among our elected officials, is the FBI’s highest criminal investigative priority,” said FBI Special Agent in Charge Adam Lee. “We will engage and engage vigorously when we receive credible allegations of any federal, state, or local public official illegally using the power of their position to receive a personal benefit. The people of the Commonwealth deserve better than pay-to-play politics.”
“When public officials commit crimes as part of their official duties, they are violating the public trust,” said Richard Weber, Chief, IRS Criminal Investigation. “IRS-CI agents play a critical role in rooting out public corruption of elected officials. The public expects more of their leaders in government and our agents work tirelessly on their behalf to ensure that we are all playing by the same rules.”
According to the evidence presented at trial, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts, and other things of value from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., then Star Scientific’s chief executive officer. The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote, and obtain research studies for Star’s products, including the dietary supplement Anatabloc.
According to court records and evidence, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value. As part of the scheme, the official actions that Robert McDonnell performed included arranging meetings for Williams with Virginia government officials, hosting and attending events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating its relationships with Virginia government officials.
The evidence further showed that the McDonnells attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.
Similarly, on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with Williams. Additionally, after her interview with law enforcement, Maureen McDonnell drafted a handwritten note to Williams in which she falsely attempted to make it appear that she and Williams had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence, and impede the investigation.
As a result of the jury’s verdicts, the McDonnells could each face a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the conspiracy to commit honest-services wire fraud count, the honest-services wire fraud counts, the conspiracy to obtain property under color of official right count, and the obtaining property under color of official right counts; and a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the obstruction of an official proceeding count.
The maximum statutory sentences outlined above are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber, and Ryan S. Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI, IRS-CI, and the Virginia State Police.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-12.
Former Virginia Governor and Former First Lady Convicted on Public Corruption ChargesRead the Press Release
RICHMOND, Va. – A federal jury returned guilty verdicts today against former Virginia Governor Robert F. McDonnell and former First Lady Maureen G. McDonnell for participating in a scheme to violate federal public corruption laws.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief, IRS Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
Robert McDonnell and Maureen McDonnell, both 60 and of Glen Allen, Virginia, were convicted of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right. Robert McDonnell was convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right, while Maureen McDonnell was convicted on two of the three honest services wire fraud counts and five of the six counts of obtaining property under color of official right. Maureen McDonnell also was convicted of one count of obstruction of an official proceeding. In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of 9 of 13 counts.
“This is a difficult and disappointing day for the Commonwealth of Virginia and its citizens,” said U.S. Attorney Boente. “When public officials turn to financial gain in exchange for official acts, we have no choice but to prosecute them. I thank the Assistant U.S. Attorneys, FBI, Virginia State Police, and the Internal Revenue Service-Criminal Investigation for their exceptional efforts in the investigation and prosecution of this case.”
“As Virginia’s governor, Robert McDonnell and his wife turned public service into a money-making enterprise, abusing the commonwealth’s highest office to benefit a Virginia businessman in exchange for more than $170,000 in gifts and loans,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “In pursuit of a lifestyle that they could ill-afford, McDonnell and his wife eagerly accepted luxury items, designer clothes, free vacations and the businessman’s offer to pay the costs of their daughter’s wedding. In return, McDonnell put the weight of the governor’s mansion behind the businessman’s corporate interests. The former governor was elected to serve the people of Virginia, but his corrupt actions instead betrayed them. Today’s convictions should send a message that corruption in any form, at any level of government, will not be tolerated.”
“Public corruption, particularly among our elected officials, is the FBI’s highest criminal investigative priority,” said FBI Special Agent in Charge Adam Lee. “We will engage and engage vigorously when we receive credible allegations of any federal, state, or local public official illegally using the power of their position to receive a personal benefit. The people of the Commonwealth deserve better than pay-to-play politics.”
“When public officials commit crimes as part of their official duties, they are violating the public trust,” said Richard Weber, Chief, IRS Criminal Investigation. “IRS-CI agents play a critical role in rooting out public corruption of elected officials. The public expects more of their leaders in government and our agents work tirelessly on their behalf to ensure that we are all playing by the same rules.”
According to the evidence presented at trial, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts, and other things of value from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., then Star Scientific’s chief executive officer. The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote, and obtain research studies for Star’s products, including the dietary supplement Anatabloc.
According to court records and evidence, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value. As part of the scheme, the official actions that Robert McDonnell performed included arranging meetings for Williams with Virginia government officials, hosting and attending events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating its relationships with Virginia government officials.
The evidence further showed that the McDonnells attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.
Similarly, on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with Williams. Additionally, after her interview with law enforcement, Maureen McDonnell drafted a handwritten note to Williams in which she falsely attempted to make it appear that she and Williams had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence, and impede the investigation.
As a result of the jury’s verdicts, the McDonnells could each face a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the conspiracy to commit honest-services wire fraud count, the honest-services wire fraud counts, the conspiracy to obtain property under color of official right count, and the obtaining property under color of official right counts; and a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the obstruction of an official proceeding count.
The maximum statutory sentences outlined above are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber, and Ryan S. Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI, IRS-CI, and the Virginia State Police.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-12.
Former TSA Employee Sentenced to Ten Years in Federal Prison for Distributing Child PornographyRead the Press Release
ALBUQUERQUE – John A. Crowe, 54, of Albuquerque, N.M., was sentenced today for distributing visual depictions of minors engaged in sexually explicit conduct. Crowe will serve a prison term of ten years followed by a five-year term of supervised release. He will be required to register as a sex offender after he completes his prison sentence. Crowe also was ordered to pay $500.00 in restitution to the victim depicted in the image at issue in the crime of conviction.
Crowe was arrested on May 28, 2011, on a criminal complaint charging him with transportation and possession of child pornography, and has been in federal custody since that time. At the time of his arrest, Crowe was employed by the Transportation Security Administration.
In June 2011, Crowe was indicted on child pornography charges. A superseding indictment was filed in July 2012, charging Crowe with advertising child pornography in March 2011, transportation of child pornography in Nov. 2010; distribution of child pornography on two occasions in March 2011, and possession of child pornography from April 2011 to May 2011. The indictment alleged that Crowe committed these offenses in Bernalillo County, N.M.
According to court filings, the investigation leading to Crowe’s arrest began in March 2011, when an officer with the Online Predator Unit of the New Mexico State Police (NMSP) identified an IP address that was being used to share files containing child pornography while conducting an investigation targeting those who share child pornography on peer-to-peer file sharing networks. Subsequent investigation revealed that the IP address was subscribed to Crowe at a residence in the west side of Albuquerque.
On May 26, 2011, Homeland Security Investigations (HSI) and the NMSP executed a search warrant at Crowe’s residence seized a computer and computer-related media. During a recorded interview that day, Crowe admitted using his computer to search for and download child pornography. A forensic examination of the computer and computer-related media revealed that they contained images and videos of child pornography, including videos of minor females who appeared to be filmed by a hidden camera located in a bathroom and a bedroom of a residence. During a recorded interview on May 28, 2011, Crowe admitted recording the videos when he lived in Alabama and Georgia and that the minor females were daughters of former girlfriends who were unaware that he was filming them as they undressed. Crowe acknowledged bringing the child pornography with him when he moved to New Mexico in Nov. 2010.
On Jan. 9, 2014, Crowe pled guilty to Count 6 of the superseding indictment charging him with distribution of child pornography, and admitted distributing child pornography on March 12, 2011.This case was investigated by the Albuquerque office of HSI and the NMSP. It was prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Senior Vice President of Marketing at A&P Sentenced to Three Years in Prison for Wire FraudRead the Press Release
NEWARK N.J. – The former senior vice president of marketing at A&P, a U.S. supermarket and liquor store chain, was sentenced today to 36 months in prison for his role in a scheme to defraud A&P by selling for personal gain event tickets that were intended for A&P’s use, U.S. Attorney Paul J. Fishman announced.
John R. Moritz, 45, of Mason, Ohio, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
From December 2010 through December 2011, Moritz worked at A&P, a U.S. supermarket and liquor store chain headquartered in Montvale, New Jersey. He arranged for A&P to purchase thousands of tickets to sporting events, concerts and other shows that were to be used to reward high-performing A&P employees and for other legitimate business purposes. However, Moritz resold more than 7,000 tickets to third parties over the internet, without A&P’s knowledge or consent. Some of these tickets were for the 2011 Super Bowl, the 2011 New York Yankees playoff games and Bon Jovi, Lady Gaga and U2 concerts. He admitted that as a result of his conduct he fraudulently obtained $1,218,192.
In addition to the prison term, Judge McNulty sentenced Moritz to three years of supervised release and ordered to pay restitution of $3.2 million.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark and Evan Weitz of the Asset Forfeiture and Money Laundering Unit.
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Defense Counsel: Lawrence S. Feld Esq. and Paul Silverman Esq. New YorkFormer Senior Vice President of Marketing at A&P Sentenced to Three Years in Prison for Wire FraudRead the Press Release
NEWARK N.J. – The former senior vice president of marketing at A&P, a U.S. supermarket and liquor store chain, was sentenced today to 36 months in prison for his role in a scheme to defraud A&P by selling for personal gain event tickets that were intended for A&P’s use, U.S. Attorney Paul J. Fishman announced.
John R. Moritz, 45, of Mason, Ohio, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
From December 2010 through December 2011, Moritz worked at A&P, a U.S. supermarket and liquor store chain headquartered in Montvale, New Jersey. He arranged for A&P to purchase thousands of tickets to sporting events, concerts and other shows that were to be used to reward high-performing A&P employees and for other legitimate business purposes. However, Moritz resold more than 7,000 tickets to third parties over the internet, without A&P’s knowledge or consent. Some of these tickets were for the 2011 Super Bowl, the 2011 New York Yankees playoff games and Bon Jovi, Lady Gaga and U2 concerts. He admitted that as a result of his conduct he fraudulently obtained $1,218,192.
In addition to the prison term, Judge McNulty sentenced Moritz to three years of supervised release and ordered to pay restitution of $3.2 million.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark and Evan Weitz of the Asset Forfeiture and Money Laundering Unit.
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Defense Counsel: Lawrence S. Feld Esq. and Paul Silverman Esq. New YorkFormer Office Manager from Jones Charged with Embezzling Nearly $1 Million from Employer and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – JULIE ANN SMITH (a/k/a "Julie A. Judkins" and "Julia A. Judkins Smith"), of Jones, Oklahoma, has been indicted by a federal grand jury and charged with bank fraud, mail fraud, forged securities, and tax fraud, in connection with embezzling nearly one million dollars from a metro company, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On September 2, 2014, the federal grand jury returned a 36-count superseding indictment against Smith. The superseding indictment alleges that Smith worked from 2000 until around late June 2012 at Power Equipment & Engineering, Inc. ("PE&E"), in Oklahoma City. At PE&E, Smith was the accounts-payable clerk and officer manager, where she prepared checks and paid invoices for the company. It is alleged that Smith forged approximately 192 PE&E checks, from June of 2002 through June of 2012, by using the company owner’s signature stamp without PE&E’s permission or knowledge. The 192 checks totaled approximately $985,540.14. It is further alleged that Smith disguised the forged checks through false entries on PE&E’s ledger, wrote many of the forged checks to a fake company under her control, and directed other forged checks to credit card companies, financial institutions, and vendors for her personal benefit.
In the superseding indictment, counts 1-16 charge Smith with bank fraud and allege that she fraudulently obtained PE&E’s money, under the control of a local bank, by causing the forged checks to be presented for payment against PE&E’s account at the bank. Counts 17-24 charge Smith with mail fraud. According to these counts, Smith used interstate mail to send forged checks to institutions to pay personal credit card expenses from around January 2007 through June 2012. Count 25 of the superseding indictment charges Smith with aggravated identity theft for fraudulently using the company owner’s signature on a forged check during and in relation to a specific mail fraud count. In the superseding indictment, counts 26-31 allege that Smith made and possessed forged securities of an interstate business—specifically, the forged PE&E checks—with the intent to deceive various payees. The final five counts (32-36) allege that Smith filed materially false federal income tax returns for years 2008 through 2012.
If convicted, Smith faces a prison sentence of up to 30 years for each bank fraud count, up to 20 years for each mail fraud count, up to 10 years for each forged securities count, up to three years for each false tax return count, and a mandatory two-year prison term under the aggravated identify theft count. Smith could also receive an additional $250,000 fine on each count if convicted. The public is reminded that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Trial is scheduled to start on October 6, 2014, in Oklahoma City.
These charges are the result of an investigation conducted by the Internal Revenue Service - Criminal Investigations, United States Secret Service, Federal Bureau of Investigation, and Oklahoma City Police Department. The case is being prosecuted by Assistant U.S. Attorneys Chris M. Stephens and Jessica L. Perry.
Reference is made to court filings for further information.
Former Medical Technician Charged with Accepting Bribes in Exchange for Falisfying Urinalysis Drug TestsRead the Press Release
TULSA, Okla. — A former medical technician was charged in U.S. District Court Tuesday for accepting bribes in exchange for fraudulently submitting urine specimens for drug analysis, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
William Ray Allen, 33, of Tulsa, was charged with four counts of honest services mail fraud and three counts of accepting a bribe. According to the Indictment returned by the Federal Grand Jury, Allen was employed as a medical technician at 12 & 12, Incorporated, a drug treatment facility contracted by the U.S. Probation Office to provide drug testing and treatment services to persons under supervision by order of the U.S. District Court, and was responsible for collecting urine specimens for random urinalysis drug testing.
The Indictment alleges that from July of 2011 to August of 2014: Allen provided prior notification to those who had been selected for random drug testing; substituted his own urine or the urine of others for drug testing instead of collecting and submitting urine samples from the persons subject to Court ordered random drug testing; and, submitted falsified certifications with the substituted urine submitted for analysis. The Grand Jury charged that, as part of the mail fraud, Allen knowingly shipped the fraudulently substituted urine specimens via Federal Express to the U.S. Probation Drug Laboratory in Albuquerque, New Mexico. According to the Indictment, the bribes Allen accepted was the money he received in exchange for the fraudulent submission of false urine specimens for drug analysis.
If convicted, the defendant could be sentenced up to 20 years imprisonment and a $250,000 fine on each count of honest services mail fraud; and, not more than 15 years imprisonment and a $250,000 fine for each bribery count.
The Federal Bureau of Investigation is the investigating agency and Assistant U.S. Attorney Joel-lyn A. McCormick is prosecuting on behalf of the United States.
U.S. v. William Ray Allen
Former Head of Cleveland Anti-Poverty Agency Pleads Guilty to Bribery and Related CrimesRead the Press Release
The former head of a Cleveland-area anti-poverty agency pleaded guilty to accepting more than $23,000 in cash, home renovations and other things of value in exchange for steering work to specific contractors, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office..
Jacqueline K. Middleton, 69, of Shaker Heights, pleaded guilty to two counts of honest services fraud, one count of bribery in federally funded programs and one count of Hobbs Act Conspiracy. She is scheduled to be sentenced Dec. 3.
“Middleton violated the trust of taxpayers and the people she had pledged to serve,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
"Middleton padded her pocket with monies for federally funded contracts she awarded," Anthony said. "Law enforcement will continue to root out individuals illegally capitalizing on their trusted position. ”
Middleton served as president and chief executive officer of the Council of Economic Opportunities of Greater Cleveland. The CEOGC was organized with the purpose of serving low-income people of Cuyahoga County and Greater Cleveland. The CEOGC administered several federal, state and local programs designed to address the needs of low-income individuals, including Head Start, the Community Services Block Grant program and the Home Energy Assistance program.
From 2008 through around August 7, 2012, Middleton used her official position to enrich herself by soliciting and accepting gifts, payments and other things of value from contractors who did business with CEOGC. These gifts and payments were made in exchange for favorable action from Middleton for the payors and their companies, according to the information.
Middleton solicited and accepted gifts, payments and other things of value totaling more than $12,017 from a person identified as Contractor No. 1 and totaling approximately $11,200 from a person identified as Contractor No. 2. The things of value included kickbacks from CEOGC payments, home renovation work and payments to vendors for related supplies on her behalf, according to the information.
Middleton provided official favorable action Company No. 1 and Contractor No. 2 as requested and as opportunities arose. That included authorizing CEOGC contracts which retained Contractor No. 2 for consulting services and which retained Company No. 1 for work including parking lot renovations, classroom remodeling and flooring remodeling at various sites and offices administered by CEOGC, according to the information.
The case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer following an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services – Office of Inspector General.
Former FBI Special Agent, Owner of Retail Pharmacy Plead Guilty to Conspiracy to Defraud the IRSRead the Press Release
TRENTON, N.J. - A former FBI special agent and his wife today admitted colluding to hide her income as part-owner of a retail pharmacy in Piscataway, New Jersey, from the Internal Revenue Service – instead using the cash to pay for home renovations and other personal expenses, U.S. Attorney Paul J. Fishman announced.
Pritesh Desai, 47, and his wife, Darshna Desai, 45, both of Watchung, New Jersey, surrendered to federal authorities this morning. Each pleaded guilty to one count of conspiring to defraud the IRS. The pair entered their guilty pleas to an information before U.S. District Judge Michael A. Shipp in Trenton federal court.
According to documents filed in this case and statements made in court:
At the time of the conspiracy, Pritesh Desai was employed as a special agent with the FBI’s New York Field Office until his resignation in July 2013, and Darshna Desai was a part-owner in DVS Pharma Inc., known as Heights Pharmacy. From June 2004 to June 2012, the couple conspired with each other and with Darshna Desai’s partner to conceal cash income from the pharmacy.
Darshna Desai admitted that she or her partner would separate the cash earned by Heights Pharmacy from other income received, pay a portion to Darshna Desai as cash salary, and then split the remainder.
Pritesh and Darshna Desai admitted they took certain actions to conceal her share of the cash, depositing it into various financial institutions and multiple accounts. They also acknowledged they used cash to pay personal living expenses, including renovating their residence, and gave cash to others in exchange for checks the Desais deposited in their personal bank accounts. Pritesh Desai also admitted providing false information to his employer, the FBI, when submitting financial disclosure forms for years 2007 through 2011. He falsely claimed the cash held by his family was gifts from other family members.
For tax years 2004 through 2011, Darshna Desai and her partner filed false corporate income tax returns for the pharmacy. For those same tax years, Darshna Desai and Pritesh Desai filed false joint personal income tax return which also failed to disclose the cash. The total tax loss from the fraud was between $200,000 and $400,000.
The offense to which the Desais pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for Dec. 11, 2014.
U.S. Attorney Fishman credited special agents of the Department of Justice, Office of the Inspector General, under the direction of Special Agent in Charge Ronald G. Gardella, and IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Maureen Nakly and Jacques Pierre of the U.S. Attorney’s Special Prosecutions Division in Newark.
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Pritesh Desai: Michael Critchley and John Vazquez Esqs., Roseland, N.J.
Darshna Desai: Lawrence Horn and Richard Sapinski Esqs., NewarkDesai, Pritesh, Information
Desai, Darshna InformationFormer Executive Director of West Haven Housing Authority Admits Receiving $1.5 Million in BribesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL SIWEK, 55, of North Haven, waived his right to indictment and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to receiving approximately $1.5 million in bribes while serving as the executive director of the West Haven Housing Authority. SIWEK also pleaded guilty to related tax charges.
According to court documents and statements made in court, SIWEK was the executive director of the West Haven Housing Authority (“WHHA”), an agency that received federal funding. As parties of his duties, SIWEK had substantial discretion over awarding WHHA business and contracts. From approximately February 2007 through February 2012, SIWEK received approximately $1.5 million in payments from individuals in exchange for the awarding of business and contracts with the WHHA and entities that the WHHA controlled. SIWEK received these bribes through wire transfers and check payments to himself individually, and to Four Star Development Company LLC, a limited liability corporation that he controlled. SIWEK also received payments that were characterized as “loans,” but which were not subject to any terms or conditions typically associated with commercial loans.
In addition, SIWEK did not report these payments to the IRS, and filed false tax returns that underreported his income and tax liability.
SIWEK pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds, which carries a maximum term of imprisonment of five years; one count of bribery, which carries a maximum term of imprisonment of 10 years; and one count of tax evasion, which carries a maximum term of imprisonment of five years.
As part of his plea, SIWEK has agreed to pay restitution in the amount of $1,503,096.91, and back taxes, penalties and interest in the amount of $363,781.70.
A sentencing date is not yet scheduled.
On November 6, 2013, Harry Miconi pleaded guilty to paying hundreds of thousands of dollars in bribes to SIWEK. He also awaits sentencing.
U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Deputy United States Marshal Pleads Guilty to Felony Distribution of Unapproved New Drugs and Felony Distribution of Misbranded DrugsRead the Press Release
SAN JOSE – Aris Aristidis Vavasis pleaded guilty in federal court yesterday to Felony Distribution of Unapproved New Drugs and Felony Distribution of Misbranded Drugs, announced United States Attorney Melinda Haag, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick, and U.S. Food and Drug Administration Office of Criminal Investigations Acting Director Philip J. Walsky, and Department of Justice Office of the Inspector General Special Agent in Charge Ronald G. Gardella, New York Field Office.
In pleading guilty, Vavasis admitted to being the owner of the internet supplement company Nutrition Dome, Inc., located at 4518 11th Avenue, 2nd level, Brooklyn, New York, 11219, and to using that company to knowingly distribute two purported dietary supplements, “Methastadrol,” and “Lipodrene,” both of which contained misbranded drugs, in interstate commerce, including to the Northern District of California. Methastadrol contained the Schedule III anabolic steroid Methasterone (also known by the chemical name 17a-methyldrostanolone) as an active ingredient.
Lipodrene contained the active ingredient ephedrine. On February 11, 2004, the FDA published in the Federal Register a final rule that established a regulation declaring dietary supplements containing ephedrine alkaloids adulterated under the Federal Food, Drug, and Cosmetic Act because they present an unreasonable risk of illness or injury under the conditions of use recommended or suggested in labeling, or if no conditions of use are suggested or recommended in labeling, under ordinary conditions of use (69 FR 6787). The final rule became effective on April 12, 2004.
Vavasis admitted that during the time he was operating Nutrition Dome, Inc., he was employed as a Deputy United States Marshal in the Eastern District of New York. In addition to his home computer system, Vavasis utilized the computer system of the United States Marshals Service in the Eastern District of New York, without authorization, to operate Nutrition Dome, Inc. business, including but not limited to communicating with purchasers, fulfilling orders, and otherwise administering the business of Nutrition Dome, Inc. Vavasis retired from the United States Marshals Service after the execution of a federal search warrant at the location of Nutrition Dome in July, 2012.
“The distribution of anabolic steroids and misbranded drugs through internet supplement companies constitutes a serious danger to the health and safety of consumers,” said United States Attorney Melinda Haag. “The fact that this defendant abused his position as a Deputy United States Marshal and utilized the computer system of the United States Marshals Service in the Eastern District of New York to commit these crimes is especially disturbing.”
“Distribution of anabolic steroids and misbranded drugs is a danger to the community. DEA will continue to collaborate with our law enforcement partners to pursue those who violate public trust and put their health and safety at risk,” stated Drug Enforcement Administration, San Francisco Field Office Special Agent in Charge Jay Fitzpatrick.
“Dietary supplements and drugs each have very specific FDA requirements that manufacturers must meet in order to protect the public’s health,” said Philip J. Walsky, acting director, FDA’s Office of Criminal Investigation. “Our agents will continue to pursue and bring to justice those who would put consumers’ health at risk through false representations about the status and safety of the products they sell.”
New York Field Office Special Agent-in-Charge Ronald G. Gardella of the Department of Justice Office of the Inspector General thanked the Drug Enforcement Administration and Food and Drug Administration Office of Criminal Investigation agents who collaborated in the investigation, stating that “the public has every right to expect the highest integrity from those entrusted with authority and we are determined to hold accountable anyone who betrays that trust.”
Vavasis, 51, of Brooklyn, New York, was charged with the introduction and delivery for introduction of an unapproved new drug into interstate commerce, in violation of 21 U.S.C. § 331(d), and the introduction and delivery for introduction of a misbranded drug, in violation of 21 U.S.C. § 331(a). Under the plea agreement, Vavasis pleaded guilty to all counts.
Vavasis was released on a recognizance bond, and his sentencing hearing is scheduled for Dec. 22, 2014, before the Honorable Lucy H. Koh, United States District Court Judge, in San Jose. The maximum statutory penalty for each count in violation of 21 U.S.C. § 331(d) & 331(a) is 3 years custody, 3 years supervised release, and a fine of $10,000.00 plus restitution if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Matt Parrella and Jeff Nedrow are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the DEA, the FDA Office of Criminal Investigation, and the Department of Justice Office of the Inspector General.
(Vavasis superseding information )