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21 October 2014
Vienna Investment Adviser Pleads Guilty to Defrauding Numerous Elderly and Widowed ClientsRead the Press Release
ALEXANDRIA, Va. – Ismail Elmas, 49, of Vienna, Virginia, pleaded guilty today to defrauding more than 10 of his investment advisory clients—many of whom were seniors and widows—of more than $1 million in funds they entrusted to him to invest on their behalf.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga.
Elmas was charged by criminal information on October 21, 2014, on wire fraud charges. Elmas faces a maximum penalty of 20 years in prison when he is sentenced on January 16, 2015. The maximum statutory sentences 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.
In a statement of facts filed with the plea agreement, Elmas admitted to having worked as an investment adviser at Apple Financial Services (AFS), an affiliate of Apple Federal Credit Union (AFCU), during the time of his offense. Elmas also was registered with the Financial Industry Regulatory Authority (FINRA) as an investment adviser. In addition, he owned and operated a bank account in the name of “I.E. Financial Solutions.” From at least 2012 through in or around August 2014, Elmas misappropriated client funds given to him for legitimate investments in his capacity as an investment adviser, and he used those funds for his own purposes by way of his I.E. Financial Solutions bank account at NFCU. Elmas misappropriated these client funds in different ways. For example, he materially withheld the fact that I.E. Financial Solutions was his own bank account, never telling his clients that they were giving their money to his own purported investment vehicle. In other instances, Elmas falsely described I.E. Financial Solutions to clients as a particular investment vehicle (e.g., a Certificate of Deposit or a Real Estate Investment Trust). And for other clients, Elmas simply transferred the funds to his I.E. Financial Solutions account without providing truthful disclosures about the use and disposition of the funds. As a result of Elmas’ scheme, more than 10 victims lost more than $1 million but less than $7 million.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Chad Golder is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-328.Tweet
United States Attorney Stephen R. Wigginton Announces Election Day Anti-Fraud EffortsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, reminded everyone today of the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. An Assistant U.S. Attorney is designated as the District Election Officer for the Southern District of Illinois, and, in that capacity, is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Wigginton said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day. Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
“The franchise of voting is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.” noted United States Attorney Wigginton. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Wigginton will have Assistant United States Attorney, and District Election Officer, Norman R. Smith on duty in this District while the polls are open. Smith may be reached by the public at the following telephone numbers: (618) 628-3700, (618) 628-3743 or (618) 799-8775.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (618) 397-4401.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at: http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Wigginton concluded by reminding all of us that, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division. In so doing, all of our citizens may enjoy the benefits of our free and fair election system.”
U.S. Department of Justice Announces Collaborative Reform Initiative with Fayetteville Police DepartmentRead the Press Release
FAYETTEVILLE, NORTH CAROLINA—Today the U.S. Department of Justice Office of Community Oriented Policing Services (COPS) announced the beginning of a review of the Fayetteville Police Department’s use of force policies and practices. The scope of the work announced today will include an assessment of policies, training, and operations as they relate to use of force, deadly force investigations, and interactions with citizens, taking into account national standards, best practices, current and emerging research, and community expectations. Following the assessment, COPS will issue a report detailing the findings along with specific recommendations for improvement. COPS will assess progress made at the 6-month and 12-month marks issuing follow up reports.
Ronald L. Davis, Director of the Office of Community Oriented Policing Services said, “The Collaborative Reform Initiative we embark on today is just that—a collaboration—and everything this partnership entails will be done in an open and transparent fashion.”
Davis continued, “I applaud Chief Medlock for taking this proactive step to review his agencies policies and practices to ensure that they are current with the latest national standards. Often times police departments seek help too late when the only remedy available is a pattern and practice investigation, consent decree and federal monitor costing millions of dollars. The process we begin today has no cost to the city.”
The U.S. Department of Justice, Office of Community Oriented Policing Services developed the Collaborative Reform Initiative for Technical Assistance in 2011 as an independent and objective way to transform a law enforcement agency through an analysis of policies, practices, training, tactics, and accountability methods around key issues facing law enforcement today.
The goal of the Collaborative Reform Initiative is to help change the ways that law enforcement agencies build community partnerships and enhance transparency; transform agencies through decision making and policies; and institutionalize reforms with integrated accountability measures.
U.S. Attorney Booth Goodwin, Law Enforcement and Treatment Professionals Announce New Initiative to Help Heroin AddictsRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin, Prestera Center for Mental Health Services CEO Karen Yost, Charleston Police Chief Brent Webster, Kanawha County Sheriff John Rutherford, and other law enforcement representatives today announced a unique intervention program through which certain heroin addicts are being referred to treatment. The collaborative initiative is part of ongoing efforts in the Kanawha Valley to address the opiate abuse epidemic. The Kanawha County Commission provided funding earlier this year for an anti-heroin initiative known as HEAT: Heroin Eradication Associated Task Force. As a result, a roundup was conducted by area law enforcement agencies on October 16th, netting approximately 34 arrests. During the law enforcement operation, law enforcement officers referred three low-level, nonviolent offenders to treatment services instead of sending them to jail. Treatment services will be provided by Prestera. If one of these individuals deviates from the caseworker’s plan or treatment program, criminal charges will be filed and the individual would then be subject to the normal judicial process.
U.S. Attorney Booth Goodwin said, “While we in law enforcement will continue to aggressively arrest and prosecute heroin dealers and traffickers, we also know that we cannot arrest our way out of this epidemic. Opiate addiction is powerful – addicts will continue to use until they get treatment. This is not being soft on crime but rather being smart on crime.”
Karen Yost, CEO of Prestera, said, “We are excited to be a partner with law enforcement in this innovative initiative to combat drug addiction.”
Timonium Man Sentenced to 18 Months in Prison for Stealing More Than $680,000 from an NIH Research GrantRead the Press Release
Stole Money Intended for Research Conducted at the
National Institute for Drug Abuse Facilities in Baltimore
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jason Dietz, age 34, of Timonium, Maryland, today to 18 months in prison, followed by three years of supervised release, for theft of funds from a federal program, in connection with the theft of $683,705 in grant money from the National Institute for Drug Abuse for research conducted at its facilities in Baltimore. Chief Judge Blake also ordered Dietz to pay restitution of $683,705.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.
The National Institute for Drug Abuse (“NIDA”) is part of the National Institutes of Health and is located at Johns Hopkins Bayview Center in Baltimore. NIDA also operates the Archway Treatment Clinic, also in Baltimore. NIDA and its grantees conduct research on the science of addiction and treatment and publish that research in scientific and medical peer-reviewed journals. For each of the years 2006-2013, NIDA conducted from 26 – 31 studies at Bayview and the Archway Clinic.
According to Dietz’s plea agreement, from 2006 until June 2013, Dietz worked for Matthews Media Group (MMG), which was contracted by NIDA to recruit, screen, and compensate participants in NIDA’s clinical research studies conducted at Bayview and Archway. Dietz’ job was to compensate study participants, typically with cash or gift cards, obtain receipts from study participants, and keep a spreadsheet of participants’ compensation with supporting documentation—chiefly signed receipts from the study participants. Dietz was a signatory on an MMG bank account from which he withdrew cash to pay study participants; in addition, he provided cash to Archway Clinic for the clinic employees to pay study participants. MMG invoiced NIDA each month and included in its invoice amounts taken directly from the spreadsheet prepared by Dietz.
Dietz admitted that, beginning in 2007, he embezzled funds from MMG in several ways. For example, Dietz paid study participants and obtained a signed receipt from them, then logged a higher amount on the spreadsheet and pocketed the difference between the two amounts. In addition, Dietz created fictitious receipt numbers and amounts which he placed on his spreadsheet, then pocketed all the cash from these fictitious payments. Finally, Dietz listed on his spreadsheet higher amounts than were actually paid to Archway Clinic employees for them to pay Archway participants and pocketed the difference.
In 2013, MMG was responding to questions from NIDA employees when discrepancies were discovered between the signed receipts and Dietz’ spreadsheet. MMG then conducted an audit that looked at every entry on every spreadsheet which was used to bill NIDA and the back-up documentation. For the time period October 2006 through May 2013, the MMG auditor found that Dietz overstated the expenses on the spreadsheet compared to the actual receipts by $571,205, and that he deposited $586,083 into his personal bank account during that same time period. In addition, the MMG auditors discovered that Dietz had cashed $112,500 in checks from the MMG bank account on which Dietz was a signatory and that the funds were unaccounted for. Dietz admitted that in addition to depositing embezzled funds into his personal bank account, he also embezzled cash that he spent.
United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.
- Three Defendants Guilty of Tax Fraud Charges
Thomas W. Faircloth Sentenced for Distribution of Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Thomas W. Faircloth, aged 37, of Cairo, Georgia, was sentenced by the Honorable W. Louis Sands, U.S. District Court Judge, in Albany, Georgia on October 20, 2014, in connection with receiving, distributing and possessing child pornography.Mr. Faircloth was sentenced to 151 months in federal prison, to be followed by lifetime supervision. He will also be required to register as a sex offender under the Sex Offender Registration and Notification Act (“SORNA”).
Mr. Faircloth admitted that on November 13, 2012, he distributed 22 still images and 17 video files, containing depictions of child pornography, to an undercover FBI agent, using the program Gigatribe. During the execution of a search warrant on February 18, 2013, many thousands of images and video files of child pornography, including those of very young children, were found on a laptop computer in Mr. Faircloth’s possession. The images were transported in interstate and foreign commerce using the internet. When interviewed by FBI agents, Mr. Faircloth admitted to receiving, distributing and possessing child pornography.
“As we strive every day to protect our children from even the slightest harm, we must remain mindful of those individuals who victimize innocent children over and over again distributing horrific depictions of child pornography by way of the internet. We will continue to use our law enforcement resources to make sure that we catch these offenders and bring them to the justice they deserve,” said U.S. Attorney Michael Moore.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The children depicted in these images are re-victimized each time those images are re-distributed by individuals such as Mr. Faircloth. The FBI will continue to provide significant investigative resources toward identifying and presenting for prosecution those individuals who would exploit our nation’s children in such a manner.”
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Tennessee Man, John Nutter, Sentenced for Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN NUTTER, age 32, resident of Knoxville, Tennessee, was sentenced today after having previously pleaded guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base and misprision of a felony.
U.S. District Judge Jay C. Zainey sentenced NUTTER to a 38-month term of imprisonment and 3 years of supervised release.
On February 6, 2014, NUTTER was one of 15 defendants charged in an 8-count indictment. According to court documents, the indictment was based on court-authorized wiretaps that recorded conversations between STEVEN HAYNES, who has pled guilty in this case, and NUTTER, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes. NUTTER was arrested on July 3, 2013, in possession of approximately 400 grams of cocaine that he obtained from HAYNES.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Louisiana State Police, and Washington Parish Sherriff’s Office in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Statement by United States Attorney Robert Pitman Concerning the November 2014 General ElectionRead the Press Release
Today, United States Attorney Robert Pitman announced the appointment of Assistant United States Attorney (AUSA) Tom Moore as the District Election Officer. AUSA Moore will lead the efforts of the United States Attorney’s Office for the Western District of Texas in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Moore will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Pitman said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Pitman stated that AUSA/DEO Moore will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (210) 384-7188.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The San Antonio FBI field office can be reached by the public at (210) 225-6741. The El Paso FBI field office can be reached by the public at (915) 832-5000. Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.United States Attorney Pitman said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Southern California Man Gets 21 Months in Federal Prison for Income Tax Return Fraud in NevadaRead the Press Release
LAS VEGAS, Nev. – A Huntington Beach, Calif. man who defrauded the IRS of almost $800,000 in a false income tax refund scheme, was sentenced today to 21 months in prison and ordered to pay restitution to the government, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge John Collins of IRS Criminal Investigation for Nevada.
Judas Godina, 39, was sentenced by U.S. District Judge Kent J. Dawson. Godina was indicted in July 2013 and pleaded guilty on July 15, 2014, to one count of conspiracy to defraud the IRS. He must report to federal prison by Jan. 16, 2015.
“This type of tax crime harms every U.S. citizen and resident,” said U.S. Attorney Bogden. “We will aggressively work with the IRS to prosecute these cases, and will also recommend prison sentences in order to deter others from this type of fraud.”
“The substantial sentence of imprisonment and restitution handed down today on this case makes it clear that filing false claims for tax refunds is a serious crime,” said Special Agent in Charge Collins. “IRS Criminal Investigation, with the assistance of our law enforcement partners and federal prosecutors, will aggressively pursue these violations of the law and protect the integrity of the tax system and honest taxpayers.”
According to the guilty plea agreement, from about January through December 2010, Godina conspired with Felix and Walter Guzman to defraud the IRS through a false income tax refund scheme. Godina recruited customers in Las Vegas into the tax return scheme by telling them that he could prepare their individual income tax returns and generate large refunds for them. Godina requested their identification information and tax returns from prior years, and then prepared the fraudulent tax returns using the information they provided, along with fraudulent W-2’s and Schedule E’s for business losses that he created. Godina transmitted or caused to be submitted the fraudulent forms to the IRS and monitored the status of the refunds. When the customers received the refunds, Godina arranged to meet them and demanded payment of approximately one-half of the refund. Godina also offered to pay a finder’s fee to customers who referred other paying customers to him and prepared fraudulent tax returns for customers recruited by co-defendants Felix and Walter Guzman. Using this fraudulent scheme, Godina admitted that his conduct resulted in $791,666 in fraudulent refunds being issued by the IRS. The Guzman’s are currently fugitives and the charges against them are unresolved.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Kathryn C. Newman.
Science Applications International Corporation Agrees to Pay $1.5 Million to Resolve Alleged False Claims Act Violations for Undisclosed Organizational Conflicts of InterestRead the Press Release
The Justice Department announced today that Science Applications International Corporation (SAIC), now known as Leidos Holdings Inc., has agreed to pay $1.5 million to resolve a False Claims Act lawsuit alleging that it knowingly engaged in prohibited conflicts of interest as a contractor for the U.S. Nuclear Regulatory Commission (NRC) between 1992 and 2000. SAIC provides scientific, engineering and other technical services for government and commercial customers and is headquartered in Reston, Virginia.
“Organizational conflicts of interest undermine the integrity of the federal procurement process,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Even more importantly, where the conflicts relate to a government program aimed at protecting the public health, work biased by conflicts of interest can put the public’s health at risk. This resolution, reached after a long and difficult litigation, demonstrates that the Justice Department will ensure that contractors who put their financial interests above the good of the American public will be held accountable.”
Between 1992 and 2000, SAIC held two contracts with the NRC to provide scientific and technical services, including assisting the NRC in its consideration of a rule that could have permitted the release or recycling of certain types and quantities of material with very low levels of radioactivity below regulatory safety limits. The NRC decided in 2005 not to proceed with such a rule. The United States alleged that, under these contracts, SAIC was required to avoid conflicting business relationships that could bias SAIC’s work for the NRC. The United States alleged that SAIC repeatedly and falsely certified that it had no such conflicting business relationships, when SAIC actually engaged in multiple business relationships with entities that had a financial interest in the outcome of the NRC’s rulemaking effort.
“The NRC’s unique status as an independent agency dedicated to the protection of public health, safety, and the environment means that decision-making must be free from even the potential for bias,” said Mark A. Satorius, Executive Director for Operations at the NRC. “This resolution shows that the NRC and Justice Department will work together to ensure that contractors who undermine the NRC’s commitment to decision-making that is free from bias will be held accountable.”
In July 2008, after a five-week jury trial, the jury returned a verdict in favor of the United States that SAIC violated the False Claims Act and breached its contract with the NRC by engaging in undisclosed conflicts of interest. On appeal, in December 2010, the U.S. Court of Appeals for the District of Columbia Circuit affirmed judgment for the United States on the breach of contract claim, but partially reversed the judgment on the False Claims Act claims based on two instructions given to the jury and remanded the case for a new trial on those claims.
This matter was handled by the Civil Division in cooperation with the NRC. The False Claims Act claims resolved by this settlement are allegations only, and there has been no determination of liability with respect to those claims.
The case is captioned U.S. v. SAIC, 04-cv-1543 (D.D.C.).
Santa Rosa Tax Return Preparer Pleads Guilty to Tax Fraud and Failing to Report Foreign Bank AccountsRead the Press Release
SAN FRANCISCO – Efrain Arturo Jovel pleaded guilty today to filing two false tax returns and failing to report his financial interest in foreign bank accounts, U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez, announced.
According to the plea agreement, Jovel owned and operated a tax return preparation business for over 30 years, first out of his home, then out of offices on Guerneville Road, both in Santa Rosa, Calif. On average, Jovel prepared approximately 1,800 tax returns per year. Jovel admitted that for the tax years 2009 and 2010, he filed personal U.S. Individual Income tax returns that were false in that he did not disclose his foreign bank accounts in Guatemala and El Salvador. In addition, Jovel did not disclose interest income of $35,104 earned in 2009 and 2010 on the funds held in these foreign bank accounts. Jovel additionally admitted that he willfully underreported gross receipts from his tax preparation service of $244,120 and $307,846, respectively. This resulted in a tax loss of $175,023.
Jovel, 64, of Santa Rosa, was charged on September 9, 2014, with one count of willfully violating foreign bank account reporting requirements and two counts of subscribing to false tax returns. He pleaded guilty to all counts.
Jovel’s sentencing hearing is scheduled for January 20, 2014 before the Honorable Richard Seeborg, U.S. District Court Judge, in San Francisco. The maximum penalty for filing a false tax return, in violation of Title 26 U.S.C. § 7206(1), is three years in prison and a fine of $250,000. The maximum penalty for willfully violating foreign bank account reporting requirements, in violation of Title 31 U.S.C. §§ 5314 and 5322(a), is five years in prison and a fine of $250,000.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the IRS Criminal Investigation.
Professed Church Director and "Enforcer" Pleads Guilty to Racketeering and Bribery Related ChargesRead the Press Release
BOSTON – Edward J. MacKenzie, Jr., a self-professed "enforcer" for James "Whitey" Bulger, pleaded guilty today to charges relating to his decade-long scheme to siphon off the considerable financial assets of the Boston Society of the New Jerusalem Church.
MacKenzie, 56, of Weymouth, pleaded guilty before U.S. District Court Judge F. Dennis Saylor IV to 13 counts, including Rico conspiracy, racketeering, mail fraud, wire fraud, and money laundering. Sentencing is scheduled for Jan. 23, 2015 at 2:00 p.m.
In September 2002, MacKenzie became a member of the Church, which was one of the first Swedenborgian churches in Massachusetts, and in 2003, he became the “Director of Operations,” a position that had not previously existed and paid him a starting salary of over $100,000 per year. With the purpose of draining the church of its assets, he began voting himself and his associates into positions of authority within the Church, and consolidating and fortifying his control by, among other things, changing the Church’s by-laws for his own benefit. MacKenzie was able to gain control over substantial church assets, including an 18 story apartment building in downtown Boston, because the Church had a small number of voting members, many of whom were elderly.
After obtaining control, MacKenzie began to steal Church funds through a combination of fraud, deceit, theft, and bribery. Moreover, MacKenzie intimidated and threatened individuals who were employed by and did work at the Church by, among other things, providing them with signed copies of his 2003 autobiography, Street Soldier: My Life as an Enforcer for Whitey Bulger and the Boston Irish Mob. In the autobiography, MacKenzie admitted to a lengthy criminal history, including burglary, robbery, armed assault, and narcotics trafficking.
As MacKenzie admitted in Court today, a goal of the conspiracy was to obtain power and influence within the Church so that he and his co-conspirators could defraud the Church of its considerable financial holdings and profit from transactions involving the Church. MacKenzie’s fraud cost the Church millions of dollars.
“The defendant preyed on the elderly and unsuspecting congregation of a well-established Boston church for more than a decade,” said United States Attorney Carmen M. Ortiz. “Posing as a director with the best interests of the church as a guise, he was in fact just the opposite: a criminal bent on personal gain who siphoned the considerable income of the charitable institution that he had an obligation to protect.”
The charging statutes provide a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of twice the gross proceeds from the racketeering offense. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Zachary Hafer and Dustin Chao of Ortiz’s Public Corruption and Special Prosecutions Unit.
Pre-Trial Conference HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- The United States Attorney’s Office advises that there will be a pre-trial conference hearing tomorrow (October 22, 2014) in United States v. James William Lewis and Kirstie Elaine Philome Barratt. The hearing will be held at 9:30 am on October 22, 2014, before United States District Judge Joseph F. Anderson, Jr. (courtroom # 4) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
Portsmouth Man Sentenced to 35 Years in Prison for Heroin and Crack DistributionRead the Press Release
NORFOLK, Va. –Antwan Black, a/k/a “Twizzy,” 31, of Portsmouth, Virginia, was sentenced today to 30 years in prison, followed by 8 years of supervised release for the distribution of heroin and crack cocaine. He was further sentenced to an additional consecutive 5 years in prison for possessing a firearm in furtherance of drug trafficking.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after sentencing by Senior United States District Judge Robert G. Doumar.
According to court documents, Black was the leader of a drug trafficking organization out of Portsmouth, Virginia. Between 2009 and July, 2013, Black sold heroin, cocaine-base and cocaine in the Portsmouth area. In 2012 and 2013, Black began using other individuals to man hotel rooms in the downtown Portsmouth area to sell drugs. Black furnished the room with ounces of heroin and crack cocaine daily. He paid for the hotel rooms, cell phones and other costs for his dealers. At the end of the day, Black retrieved the money from sales and would re-supply the room. Black carried a firearm with him during most of his drug deliveries. He and his co-conspirators also used homes of drug users to sell their narcotics. Drug users were given free drugs for access to their homes. As part of the investigation, authorities recovered two loaded firearms – a 9 mm semi-automatic handgun and a MK99 assault rifle – from residences used by Black. Both firearms were loaded.
Black was indicted by a federal grand jury on January 10, 2014 and pleaded guilty to conspiracy to distribute 100 grams or more of heroin and 28 grams or more of crack cocaine on March 17, 2014.
This case was investigated by the Federal Bureau of Investigation and the Portsmouth Police Department. Special Assistant U.S. Attorney Amy Cross prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the EasternDistrict 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. 2:14-cr-15.
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Pineville Woman Sentenced to 15 Months in Prison for Stealing Money from Former EmployerRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. handed down a 15-month prison sentence to a Pineville woman today for stealing money from her former employer, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Joan Elliott, 69, of Pineville, was also ordered to serve three years under court supervision and to pay $406,929 as restitution.
Russell F. Nelson, Special Agent in Charge of the United States Secret Service, Charlotte Field Division joins U.S. Attorney Tompkins in making today’s announcement.
According to court to documents and today’s sentencing hearing, Elliott was employed as a bookkeeper by a Charlotte-based association representing the lumber and building material industry. Court records show that among Elliott’s responsibilities were issuing company checks to pay business expenses and depositing to the company’s bank account check payments for administrative fees from the insurance company used by members of the association. According to court filings, from 2006 to 2009, Elliott used company checks to pay for personal expenses, falsely representing that the funds were used as payment of legitimate business expenses.
Court records indicate that during the same time period, Elliott further defrauded her employer by failing to deposit to her employer’s bank account checks sent by the company’s insurance company. Instead, records show, Elliott used those checks to pay for personal expenses, by taking the checks to the bank and directing the bank to rewrite official bank checks for the same amounts that Elliott then used toward personal expenditures. Elliott fraudulently obtained between $200,000 and $400,000 from her former employer, court records indicate. According to today’s sentencing hearing, Elliott used some of the stolen funds to pay for, among other things, a car, furniture, and spa visits. Elliott pleaded guilty in January 2013 to one count of forged securities.
Elliott has been released on bond and will be allowed to self-report to begin serving her prison term once the Federal Bureau of Prisons has designated a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the U.S. Secret Service. The case was prosecuted by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Penobscot Man Convicted of Possessing Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Kevin
Lee Ross, 52, of Penobscot, Maine, was found guilty today after a one-day jury trial in U.S.
District Court of possessing child pornography.Court proceedings revealed that in July 2011 a search warrant was executed at the defendant’s residence in Penobscot. The defendant was the only person at the residence at that time. Agents found a child pornography video playing on one of the defendant’s computers. A forensic examination of computers seized from the residence revealed thousands of images and hundreds of videos of child pornography.
Ross faces 10 years in prison and a $250,000 fine, or both. He agreed to forfeit the computers. He will be sentenced after the completion of a presentence investigation report by the U.S Probation Office.
The investigation was conducted by the U.S. Postal Inspection Service and the Maine
State Police Computer Crimes Unit.Officials Take Down Alleged Gang-Affiliated Drug Traffickers in Imperial County; Take Drugs and Guns Off the StreetRead the Press Release
EL CENTRO – Thirty alleged members of a large-scale methamphetamine and heroin drug trafficking organization in Imperial County are charged in federal grand jury indictments unsealed today with conspiring to import and distribute the illicit drugs.
Early this morning, a contingent of federal, state, and local law enforcement officials arrested 43 people – including those under federal indictment plus others who will be charged by the state - and seized drugs, cash, vehicles and 14 firearms in connection with the year-long investigation. During the predawn raids, agents also served 38 search warrants in Calipatria, El Centro and Brawley. The firearms ranged from handguns to assault rifles.
The arrests were based on two grand jury indictments. The charges include conspiracy to import and distribute methamphetamine and heroin and possession of methamphetamine and heroin with intent to distribute. So far, authorities have seized more than 30 pounds of methamphetamine with an estimated street value of 1 million dollars.
“With these arrests and charges, we have taken the first step in wiping out a major connection to methamphetamine in the valley,” said U.S. Attorney Laura Duffy. “This type of investigation and prosecution has a significant impact on public safety and quality of life in this community.”
“Today the Imperial Valley law enforcement community has taken down a widespread narcotics distribution ring that supplied the vast majority of the meth and heroin on the streets in El Centro, Brawley and Calipatria,” said Joe Garcia, interim special agent in charge for ICE HSI in San Diego. “While the impact on public safety in these communities will be far-reaching for the law abiding residents, our united force sends a bold message that criminals involved in smuggling drugs and weapons and gang activity should fear.”
The investigation involved federal wiretaps and extensive surveillance. Numerous defendants are documented members or associates of gangs, including individuals with ties to the North Side Centro, East Side Centro, and West Side Centro street gangs in El Centro, California; the Broleno street gang operating in Brawley, California; and the Calipas street gang operating in Calipatria, California.
The indictments and search warrants describe a conspiracy among a number of family members – parents, siblings, cousins, married couples - who formed the Lozano-Gonzalez drug trafficking organization. The organization allegedly imported methamphetamine and heroin from Mexicali and smuggled it through the Calexico ports of entry via pedestrian couriers and cars, into Imperial County.
Imperial Valley street gang members and those associated with the street gangs acted as a distribution network for the methamphetamine and heroin supply. Several documented gang members and associates are charged in the indictments.
Methamphetamine is a scourge in just about every community in this country, and Imperial County is no exception.
The U.S. Attorney’s office in the Southern District of California has seen a startling increase in the number of methamphetamine cases in the last five years in Imperial County – from 88 in FY 2010 to 134 cases in FY 2014. That’s 52 PERCENT more meth cases.
Today, methamphetamine-related prosecutions make up 70 percent of all federal drug prosecutions in the Imperial Valley. Just a few years ago, in 2010, methamphetamine was just 18 percent of our drug cases.
According to the Imperial County Coroner, the number of deaths due to methamphetamine has remained steady over the last several years in the county, averaging about 8 a year, except for a big spike last year, when there were 18 deaths attributed to methamphetamine use.
“We’ve really got a tremendous public health crisis on our hands,” U.S. Attorney Duffy said. “Meth destroys lives, families and communities. We are absolutely committed to making our neighborhoods safe from violent gang activity, drug trafficking and the devastating impact of methamphetamine and other dangerous drugs.”
Duffy said her office is engaged in ongoing communications with Mexican counterparts, both here and in Mexico City, on jointly attacking this issue. “We are evaluating the problem and working to come up with strategies.”
U.S. Attorney Duffy praised the law enforcement agencies of the Immigration and Customs Enforcement, Homeland Security Investigations; the Imperial County District Attorney’s Office; the El Centro Police Department; and more than a dozen other agencies that assisted with this huge takedown, believed to be the largest in Imperial County to date.
This investigation was conducted under the federal Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program was created to consolidate and utilize all law enforcement resources in this country’s battle against major drug trafficking.
United States Attorney, Laura Duffy appearing at the press conference.
DEFENDANTS Case Number: 14-CR-3007 Francisco Lozano-Moreno, Jr. Daniel Becerra-Jimenez Ismael Lucio Guadalupe Avila-Parra Jose Alberto Jose Aquiles Gomez-Zayas Jesus Gonzalez-Lozano Rodrigo Gonzalez-Lozano Mike Angel Saiza, Jr. Armando Mayorga Ramon Munoz Joe Angel Franco Abel Hernandez Ambriz Raul Rodriguez Julissa Janeth Leal-Hernandez Alexis Pinedo Ambriz Juan Carlos Lozano Carolina Orozco-Vasquez Isabel Sanchez Breanne Nicole Williams Cindy Marie Mendivel Gerald Anthony Phillips Jason Jerry Gonzalez CHARGESConspiracy to Import Methamphetamine in violation of Title 21, U.S.C. Secs. 952, 960 and 963; Conspiracy to Distribute Methamphetamine in violation of Title 21, U.S.C., Secs. 841(a)(1) and 846; Possession of Methamphetamine with Intent to Distribute in violation of Title 21, U.S.C., Sec. 841(a)(1); (Not all counts apply to all defendants)
Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a $10 million dollar fine.
DEFENDANTS Case Number: 14-CR-3008 Raphael Villasenor Cesar Adrian Gomez Eriberto Gonzalez-Ruiz Luis Fernando Calderon Nava Orlando Quintero Monique Vania Camargo Shandra Decoye Camargo *Fugitives CHARGESConspiracy to Distribute Heroin in violation of Title 21, U.S.C. Secs. 841(a)(1) and 846; Conspiracy to Distribute Methamphetamine in violation of Title 21, U.S.C., Secs. 841(a)(1) and 846; Possession of Heroin with Intent to Distribute in violation of Title 21, U.S.C., Sec. 841(a)(1); Possession of Methamphetamine with Intent to Distribute in violation of Title 21, U.S.C., Sec. 841(a)(1); (Not all counts apply to all defendants)
INVESTIGATING AGENCY
Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a 10 million dollar fine.El Centro Police Department
Immigration and Customs Enforcement, Homeland Security Investigations
Imperial County District Attorney’s Office
Imperial County Sheriff’s Office
U.S. Customs and Border Protection, Field Operations
U.S. Border Patrol
Brawley Police Department
Calipatria Police Department
Calexico Police Department
Imperial County Narcotics Task Force
Drug Enforcement Agency
Bureau of Alcohol, Tobacco, Firearms and Explosives
Bureau of Land Management
California Highway Patrol
U.S. Marshals Service*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Ocala Man Pleads Guilty to Theft of Military EquipmentRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Pedro Luis Infantes (47, Ocala) today pleaded guilty to theft of government property. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on July 11, 2014, Infantes and his son unwittingly met with a confidential source, who was working in cooperation with law enforcement. Infantes believed that the source had connections to potential buyers who were affiliated with Mexican drug trafficking organizations. Ultimately, he negotiated a sale price of $153,500 for 17 military-grade thermal-imaging monoculars, rifle cleaning kits, and other assorted military equipment that had been stolen from the government.
When arrested and interviewed by the FBI, Infantes provided false statements to agents about how he had acquired the military items and how the serial numbers on the items had been removed. He stated that he had purchased the equipment in that condition at assorted gun shows. In fact, his son, Luis Rafael Infantes (21, Ocala), an active-duty supply sergeant in Fort Knox, Kentucky, had stolen the items from the United States Army. Luis Rafael Infantes was also charged for his role in this case, and is scheduled for trial next month.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Newark Man Sentenced to 50 Months in Prison for Multiple Armed Robberies of New Jersey EstablishmentsRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 50 months in prison for committing two armed robberies of commercial establishments in Essex County, New Jersey, U.S. Attorney Paul J. Fishman announced.
Antwon Yarbrough, 28, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of conspiring to commit Hobbs Act robberies. Judge Walls also imposed the sentence today in Newark federal court.
According documents filed in this case and statements made in court:
Between April 2013 and May 2013, Yarbrough conspired with others to rob a Krauszers store in West Orange on April 24, 2013, and a Subway restaurant in Verona on May 20, 2013. Yarbrough and his conspirators robbed these establishments at gunpoint. In each robbery, they used plastic zip ties to restrain their victims. The conspirators then stole cash, cigarettes and other items.
In the Krauszers robbery on April 24, 2013, Yarbrough and another robber entered the store wearing dark hoodies, face masks, and gloves. Yarbrough secured the door from the inside using a zip tie, while the other robber pointed a firearm at an employee and forced the employee to the floor. The robber restrained the employee with zip ties and struck the employee in the head with the gun. Yarbrough restrained the hands and feet of two other victims, one of whom he struck in the head with his forearm. Yarbrough and another robber then emptied the cash register of several hundred dollars, stole several cartons of cigarettes, and fled.
In the Subway robbery on May 20, 2013, Yarbrough and two other robbers again entered the restaurant wearing dark hoodies, face masks, and gloves. Both robbers accompanying Yarbrough brandished firearms. After entering the restaurant, the robbers restrained an employee by tying the employee’s hands and feet with zip ties. The robbers then emptied the cash register of several hundred dollars and fled.
Two others involved with these and other robberies – Bobby Dawson, 31, and Jamar Darby, 27, both of Newark – were each sentenced to serve 225 months in prison in July and October 2014, respectively.
In addition to the prison term, Judge Walls sentenced Yarbrough to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange police departments, along with the New Jersey State Police and the Essex County Prosecutor’s Office, for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Stacy Biancamano Esq., West Orange
New York Man Sentenced to 42 Months Imprisonment in Fraud and Identity Theft CaseRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Tyron Burgess, age 36, of Manhattan, was sentenced today by United States District Court Judge Gregory M. Sleet to 42 months of imprisonment and 3 years of supervised release. Mr. Burgess was also ordered to pay restitution in the amount of $129,985.02 to five different financial institutions.
The sentencing came after Mr. Burgess pleaded guilty on March 25, 2014 to one count of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349, one count of wire fraud, in violation of 18 U.S.C. § 1343, one count of bank fraud, in violation of 18 U.S.C. § 1344, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. The aggravated identity theft charge carried a mandatory 24 month term of incarceration.
Between July and November 2011, Mr. Burgess engaged in multiple fraud and identity theft schemes in and around the Dover, Delaware area. Using stolen personal identification information, Mr. Burgess secured financing for the purchase of an ATV and a Corvette. Mr. Burgess also obtained at least a dozen credit cards, in the names of others, from two separate financial institutions and purchased luxury clothing items and electronics with those cards. Mr. Burgess also obtained fraudulent bank loans from another financial institution.
U.S. Attorney Oberly stated, “I am pleased with the sentence Mr. Burgess received. Identity theft is a serious crime that has a very real impact on its victims and society. Those contemplating similar crimes should be reminded of the likely consequences of their actions. This office remains committed to prosecuting these offenses.”
“Whether the schemes involve identity theft or identity fraud, Postal Inspectors will continue to work with our law enforcement partners and the financial institutions to protect consumers, said David Bosch, Inspector-In-Charge of the Philadelphia Division of the US Postal Inspection Service”
The case was investigated by the United States Postal Inspection Service and the Social Security Administration Office of the Inspector General, with the assistance of the United States Secret Service. The case was prosecuted by Assistant United States Attorney Lesley Wolf. U.S. Attorney Oberly thanked the investigators for their hard work in pursuing this investigation.
New Orleans Man, James Conrad, Jr., Charged with Stealing from Two Federal AgenciesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAMES CONRAD, JR., age 49, a resident of New Orleans, was charged yesterday in a bill of information with theft of government funds.
According to the bill of information, from 1998 to 2013, CONRAD stole a total of $247,800 from the Social Security Administration and the Office of Personnel Management. If convicted, CONRAD faces up to ten years’ incarceration and a fine of up to twice the theft amount.
U.S. Attorney Polite reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Social Security Administration - Office of Inspector General and the Office of Personnel Management - Office of Inspector General in investigating this matter. Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.
(Download Bill of Information )
National Security Division Announces New Senior Leadership Hires and Restructuring of Counterespionage EffortsRead the Press Release
Moves Allow NSD to Continue Focus on Today’s Threats while Positioning for Tomorrow’s Challenges
John P. Carlin, the Assistant Attorney General for National Security, announced strategic changes within the Justice Department’s National Security Division (NSD) designed to put additional focus on the protection of national assets from the threat of state-sponsored economic espionage and proliferation, including through cyberspace. The announcement included new appointments within the NSD’s senior leadership, the creation of a new Deputy Assistant Attorney General Position focusing on protecting national assets and the re-designation of the Anti-Terrorism and Advisory Council (ATAC) Coordinator program as the National Security Coordinator/ATAC program, to better reflect its ongoing work on the full range of national security threats, and to empower United States Attorneys as they conduct outreach on these issues nationwide.
“The threat landscape we face is ever-changing and evolving, and while our top priority will always be combatting terrorism, we must also sharpen our focus and increase our attention on the emerging threats of economic espionage and proliferation,” said Assistant Attorney General Carlin. “We have assembled a talented, dedicated and experienced team of seasoned professionals to launch this new phase for the National Security Division. These changes will help us continue confronting today’s threats while readying the NSD workforce to engage what we see as the key emerging threats to our national security.”
The changes announced included the appointment of a new Principal Deputy Assistant Attorney General and a new Chief of Staff and Counselor, as well as the creation of a new Deputy Assistant Attorney General position to oversee NSD’s efforts to protect national assets, including its efforts to combat economic espionage, proliferation, and cyber-based national security threats, and its work on the Committee on Foreign Investment in the United States. This position will oversee the work of the National Security Cyber Specialists (NSCS) Network, consisting of prosecutors in each of the U.S. Attorney’s Offices who focus on cyber threats to the national security.
The new NSD leadership team members include Mary B. McCord to serve as the Principal Deputy Assistant Attorney General; Anita M. Singh as Chief of Staff and Counselor; and Luke Dembosky as the newest Deputy Assistant Attorney General.
Mary B. McCord, Principal Deputy Assistant Attorney General: McCord joined NSD from the U.S. Attorney’s Office for the District of Columbia, where she served for nearly 20 years, most recently as the Criminal Division Chief. In that capacity, McCord supervised the prosecution of all criminal matters in federal district court, and is highly regarded for her expertise in this area. McCord also served for more than five years as a Deputy Chief in the Appellate Division, where she supervised and argued hundreds of cases in the U.S. and District of Columbia Courts of Appeals. McCord graduated from Georgetown University Law School, and clerked for Judge Thomas Hogan of the U.S. District Court for the District of Columbia.
Anita M. Singh, Chief of Staff and Counselor: Singh was appointed Chief of Staff and Counselor after serving as the NSD Acting Chief of Staff for nearly a year and a half. Singh joined NSD as Deputy Chief of Staff in 2011 after serving as Director for Intelligence Programs and Reform at the White House on the National Security Council staff, where she focused on cyber-related issues. As NSD’s Chief of Staff, Singh focuses on strategic management issues, including the design of structural changes to support work in emerging threat areas. Singh began her legal career through the DOJ’s Honors Program, serving in the Criminal Division’s Computer Crime and Intellectual Property Section, and later as a Counsel, focused on cybersecurity, to several Assistant Attorneys General. Prior to entering government service, Singh was a management strategy consultant with the Boston Consulting Group. She graduated with her J.D. and A.M. from the University of Pennsylvania Law School.
Luke Dembosky, Deputy Assistant Attorney General: Dembosky joins NSD from DOJ’s Computer Crime and Intellectual Property Section where he served as Deputy Chief for Litigation. Dembosky previously served as the DOJ representative at the U.S. Embassy in Moscow, Russia, where he represented DOJ to Russia on matters of transnational crime, including cybercrime and IP crimes, and worked with Russian law enforcement and other government officials to build cooperation between the two countries. Prior to working in Moscow, Dembosky was based in Pittsburgh as a member of DOJ’s Computer Hacking and Intellectual Property (CHIP) network of federal prosecutors. He has been involved in some of the largest and most groundbreaking cybercrime prosecutions and disruptions in U.S. history, including the recent GameOver Zeus botnet disruption, coordination of the Silk Road takedown, and U.S. v. Max Ray Butler. Prior to entering government service, Dembosky worked in civil practice at a Philadelphia law firm. He graduated from the University of Pittsburgh School of Law and clerked for Judge Richard L. Nygaard of the U.S. Court of Appeals for the Third Circuit. Dembosky will manage NSD’s newly created portfolio covering protection of national assets, including efforts to combat economic espionage, proliferation, and cyber-based national security threats, and its work on the Committee on Foreign Investment in the United States. He will also oversee NSD’s Office for Justice for Victims of Overseas Terrorism.
Re-designation: The Anti-Terrorism and Advisory Council (ATAC) Coordinator program will be re-designated as the National Security Coordinator/ATAC program, to better reflect its ongoing work on the full range of national security threats, including combating economic espionage and counterproliferation.
Miami-Area Physician Assistant Sentenced to 15 Years in Prison for $200 Million Medicare Fraud SchemeRead the Press Release
A Miami licensed physician assistant was sentenced today to serve 15 years in prison for participating in a Medicare fraud scheme involving approximately $200 million in fraudulent billings by American Therapeutic Corporation (ATC), a mental health company that was headquartered in Miami.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.
Roger Bergman, 65, of Miami, was sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. In addition to the prison sentence, Bergman was ordered to pay more than $85.3 million in restitution, both jointly and severally with his co-conspirators.
After a six-day trial, on July 18, 2014, a federal jury in the Southern District of Florida found Bergman guilty of one count of conspiracy to commit health care fraud and wire fraud, and one count of conspiracy to make false statements relating to health care matters.
Evidence at trial demonstrated that Bergman and his co-conspirators submitted false and fraudulent claims to Medicare through ATC, which operated purported partial hospitalization programs (PHPs) in seven different locations throughout South Florida and Orlando. A PHP is a form of intensive treatment for severe mental illness.
Evidence at trial also demonstrated that Bergman and other medical professionals at ATC fabricated and signed fraudulent medical documentation and patient files in order to justify ATC’s fraudulent billings to Medicare. Included in these false submissions to Medicare were claims for patients who were ineligible for PHP treatment because they were in neuro-vegetative states, in the late stages of diseases causing permanent cognitive memory loss, or had substance abuse issues and were living in halfway houses. Many of these patients were forced by assisted living facility owners and halfway house owners to attend ATC, and they did not receive treatment for their actual medical conditions.
ATC, an associated management company, and more than 20 individuals, including ATC’s owners, have all previously pleaded guilty or been convicted at trial. Bergman has been in federal custody since his conviction.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorneys Nicholas E. Surmacz and Kelly Graves of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Miami-Area Physician Assistant Sentenced to 15 Years in Prison for $200 Million Medicare Fraud SchemeRead the Press Release
A Miami licensed physician assistant was sentenced today to serve 15 years in prison for participating in a Medicare fraud scheme involving approximately $200 million in fraudulent billings by American Therapeutic Corporation (ATC), a mental health company that was headquartered in Miami.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.
Robert Bergman, 65, of Miami, was sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. In addition to the prison sentence, Bergman was ordered to pay more than $85.3 million in restitution, both jointly and severally with his co-conspirators.
After a six-day trial, on July 18, 2014, a federal jury in the Southern District of Florida found Bergman guilty of one count of conspiracy to commit health care fraud and wire fraud, and one count of conspiracy to make false statements relating to health care matters.
Evidence at trial demonstrated that Bergman and his co-conspirators submitted false and fraudulent claims to Medicare through ATC, which operated purported partial hospitalization programs (PHPs) in seven different locations throughout South Florida and Orlando. A PHP is a form of intensive treatment for severe mental illness.
Evidence at trial also demonstrated that Bergman and other medical professionals at ATC fabricated and signed fraudulent medical documentation and patient files in order to justify ATC’s fraudulent billings to Medicare. Included in these false submissions to Medicare were claims for patients who were ineligible for PHP treatment because they were in neuro-vegetative states, in the late stages of diseases causing permanent cognitive memory loss, or had substance abuse issues and were living in halfway houses. Many of these patients were forced by assisted living facility owners and halfway house owners to attend ATC, and they did not receive treatment for their actual medical conditions.
ATC, an associated management company, and more than 20 individuals, including ATC’s owners, have all previously pleaded guilty or been convicted at trial. Bergman has been in federal custody since his conviction.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorneys Nicholas E. Surmacz and Kelly Graves of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .
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.
Medford Felon Sentenced to 10 Years Federal Prison for Possessing FirearmRead the Press Release
MEDFORD, OREGON— On Monday, October 20, 2014, Senior U.S. District Judge Owen M. Panner sentenced Dennis William Lee, 45, of Medford, Oregon, to 10 years in federal prison for being a felon in possession of a firearm. Lee will be on three years of supervised release after he completes his prison term. Lee’s 10-year sentence is the maximum allowed under federal law.
On November 12, 2013, the Medford Area Drug and Gang Enforcement team (MADGE) served a search warrant at defendant’s residence after developing probable cause through surveillance and controlled heroin purchases from Lee. Lee was standing outside when police approached and he grabbed a female standing next to him, shoved her at the police, and turned to flee, only to encounter two MADGE detectives approaching from behind. Lee threw a cup of alcoholic beverage into one detective’s face and then collided into him. Officers wrestled Lee to the ground, where he continued fighting until he was tased and taken into custody.
Officers found a loaded 9mm handgun in Lee’s pocket and $2,616 cash. Detectives searched Lee’s trailer and found digital scales, a half-pound marijuana, $6,975 cash, and assorted drug packaging materials that smelled of heroin, and a small amount of methamphetamine.
Lee recently moved to Medford from Sacramento, California. His criminal history shows 40 arrests, with felony convictions for obstruct/resisting executive officer in 2007 (16 months prison), possession of heroin for sale in 2005 (four years prison), possession of methamphetamine for sale in 1997 (five years prison), sale of rock cocaine in 1990 (three years prison), possession of a controlled substance in 1993 (three years prison), and receiving stolen property in 2010 (16 months prison). In addition, Lee has misdemeanor convictions for assault with a weapon, resisting arrest, possession of burglary tools and reckless driving.
This case was investigated jointly by the Medford Area Drug and Gang Enforcement Team and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Manhattan U.S. Attorney Announces Charges Against Two Individuals for Participating in Large-Scale Stolen Identity Refund Fraud Tax Scheme Involving in Excess of 40,000 Stolen IdentitiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Acting Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), today announced charges against two individuals for participating in a large-scale tax refund scheme that used tens of thousands of stolen identities to file fraudulent returns to obtain fraudulent tax refund checks. GERARDO ENMANUEL LUNA MARMOLEJOS, a/k/a “Jorge Rodriguez Burgos,” and YOHAURIS RODRIGUEZ HERNANDEZ, a/k/a “Joana Esquilin,” a/k/a “Joana Esquilin Ramirez,” a/k/a “Carla Nunos,” citizens of the Dominican Republic, are charged in a tax fraud scheme involving in excess of 40,000 stolen identities and millions of dollars in fraudulent returns. LUNA MARMOLEJOS and RODRIGUEZ HERNANDEZ were charged in a superseding indictment today and will appear in Manhattan federal court before U.S. District Judge Naomi Reice Buchwald at 3:30 p.m.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Luna Marmolejos and Rodriguez Hernandez conspired to steal tens of thousands of identities in order to file fraudulent tax returns and collect millions of dollars in fraudulent refunds. Tax fraud amounts to theft from the general treasury; and in effect, these defendants allegedly conspired to steal money that belongs to the public. I commend IRS-CI and our other law enforcement partners on this case.”
IRS-CI Acting Special Agent-in-Charge Shantelle P. Kitchen said: “One of the ways the Internal Revenue Service is addressing the identity theft problem is through the vigorous investigation of stolen identity tax refund fraud schemes. These investigations send a clear message about the consequences of filing tax refunds using stolen information, as those involved expose themselves to criminal prosecution and sentences of imprisonment.”
According to the Superseding Indictment filed today in Manhattan federal court:
From at least December 2011 through September 29, 2014, LUNA MARMOLEJOS and RODRIGUEZ HERNANDEZ conspired and engaged in a scheme to steal the names, dates of birth, and Social Security Numbers of individuals, which the defendants then used to file fraudulent income tax returns that claimed tax refunds to which the defendants were not entitled.
LUNA MARMOLEJOS, 23, and RODRIGUEZ HERNANDEZ, 33, both citizens of the Dominican Republic and residing in New Jersey at the time of their arrest, are each charged with one count of conspiracy to steal government funds, which carries a maximum sentence of 5 years in prison, one count of conspiracy to file false claims, which carries a maximum sentence of 10 years in prison, one count of conspiracy to engage in wire fraud, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft in connection with the tax fraud scheme, which carries a mandatory sentence of 2 years in prison, to be served consecutively to any other sentence imposed. In addition, LUNA MARMOLEJOS is charged with one count of bail jumping, which carries a maximum sentence of 5 years in prison, to be served consecutively to any other sentence, and one count of visa fraud, which carries a maximum sentence of 10 years in prison. RODRIGUEZ is also charged with one count of visa fraud, which carries a maximum sentence of 10 years in prison, and one count of passport fraud, which carries a maximum sentence of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the Court.
Mr. Bharara praised the outstanding investigative work of IRS-CI, the United States Postal Inspection Service, Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Marshals Service, and the U.S. Department of State’s Diplomatic Security Service.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Carolina A. Fornos is in charge of the prosecutions.
The charges and allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Gerardo Enmanuel Luna Marmolejos & Yohauris Rodriguez Hernandez S1 Indictment
Manhattan U.S. Attorney and EPA Announce Settlement of Superfund Claims Against Getty Relating to Newtown Creek Superfund Site in Brooklyn and QueensRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith A. Enck, Regional Administrator for the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has entered into a settlement agreement with a bankruptcy trust on behalf of GETTY PETROLEUM MARKETING INC. (“GPMI”) and GETTY TERMINALS CORP. (“GETTY TERMINALS”) (collectively, “GETTY”), which filed for bankruptcy on December 5, 2011. The settlement resolves Getty’s liabilities at Newtown Creek, a Superfund Site in Brooklyn and Queens, New York, and one of the nation’s most polluted waterways. Pursuant to the settlement agreement, which addresses Getty’s liability under the Comprehensive Environmental Response, Compensation and Liability Act (also known as the Superfund law) and the federal Oil Pollution Act, Getty agrees that the United States will receive an allowed $16 million claim in the bankruptcy process.
U.S. Attorney Preet Bharara said: “For more than a century, irresponsible industrial activities turned Newtown Creek into a tributary of toxic waste. Today’s settlement ensures that Getty takes responsibility for its contribution to that sad legacy, and pays a fair share of clean-up costs at the site. This Office is committed to holding those who contaminate our nation’s lands and waterways accountable for their actions, and bankruptcy is not a free pass for polluters.”
EPA Regional Administrator Judith Enck said: “The Superfund program operates on the principle that polluters should pay for the cleanups, rather than passing the costs to taxpayers. Getty’s decades of irresponsibility and indifference to the environment could pose significant environmental risks to Newtown Creek communities and must be addressed. EPA added Newtown Creek to its Superfund National Priorities List of the country’s most hazardous waste sites in September 2010 because its water and sediment contain a range of contaminants including pesticides, heavy metals, polychlorinated biphenyls (PCBs) and volatile organic compounds. EPA is dedicated to cleaning up this area and will hold all responsible parties accountable.”
In its proof of claim, the United States asserted claims against Getty on behalf of the EPA for clean-up costs at the Newtown Creek Superfund Site and on behalf of the U.S. Department of the Interior (“DOI”) and the National Oceanic and Atmospheric Administration (“NOAA”) of the U.S. Department of Commerce for injuries to natural resources at the site. The proof of claim alleged, among other things, that Getty Terminals operated a facility adjacent to Newtown Creek that stored, blended, and distributed gasoline, fuel oil, and gasoline blending additives, and that Getty Terminals utilized underground and aboveground tanks at the facility for the storage of gasoline, diesel, and fuel oil. As alleged in the proof of claim, during the course of operations of the facility, Getty Terminals discharged contaminants from the facility to Newtown Creek, including effluent with lead concentrations and other hazardous substances.
In the settlement agreement filed in bankruptcy court today, the bankruptcy trustee acknowledges Getty’s admission that GPMI was formed to run the marketing and sales business of the former Getty Petroleum Corporation, including the Newtown Creek facility, and that GPMI leased the facility. The bankruptcy trustee also acknowledges Getty’s admission that Getty Terminals operated the facility and exercised actual control or held significant authority to control activities at the facility. Further, the trustee acknowledges in the settlement agreement that Getty has admitted that a spill occurred at the facility in October 2005.
Under the settlement agreement, the United States will receive an allowed general unsecured claim in the amount of $14,844,800 for EPA in settlement of the United States’ claim for the costs of clean-up at the Newtown Creek Superfund Site, and an additional allowed general unsecured claim in the amount of $1,155,200 for claims by DOI and NOAA relating to natural resource damages and costs of assessment at the Newtown Creek Superfund Site. The allowed claims will be paid in an amount to be determined through the bankruptcy process.
The settlement agreement will be lodged with the Bankruptcy Court for a period of at least 30 days before it is submitted for the Court’s approval, to provide public notice and to afford members of the public the opportunity to comment on the consent decree.
Mr. Bharara praised the efforts of EPA, DOI, and NOAA in this case.
This case is being handled by the Office’s Environmental Protection Unit and Tax and Bankruptcy Unit. Assistant United States Attorney Joseph N. Cordaro is in charge of the case.
In Re Getty Notice of Lodging
Louisville Man Sentenced to 15 Years in Prison for Producing Child PornographyRead the Press Release
LOUISVILLE, Ky. – Senior United States District Court Judge Charles R. Simpson III, sentenced Craig Ian Elliott, age 47, to 15 years in prison followed by 20 years of Supervised Release for violating federal child pornography laws, namely, the production of child pornography, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to a written Plea Agreement previously filed in open court, on April 2, 2010, the defendant was living at a residence on Algonquin Parkway in Jefferson County, Kentucky, with his girlfriend. On that date, his girlfriend was at work, but her 17-year-old daughter was at home with Elliott after she finished school for the day. Elliott used his girlfriend’s cell phone - a Boostmobile Sanyo Mirro Model SCP 3810 - to take sexually explicit photos of the girl. The cell phone was manufactured outside the Commonwealth of Kentucky. The metadata from the images showed that the pictures were taken at approximately 4:08 P.M.
After Elliott took the photos of the girl, he used the cell phone to transmit the images, via the Internet, to his Yahoo! account. There is no evidence that he distributed the images to anyone else.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department’s Crimes Against Children Unit, in conjunction with the Federal Bureau of Investigation, conducted the investigation as part of Kentucky’s Internet Crimes Against Children Task Force.
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."
Lewiston Man Sentenced to 18 Years for Being a Felon in Possession of AmmunitionRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jerome
Hudson, 44, of Lewiston, Maine, and formerly of Danvers, Massachusetts, was sentenced yesterday in U.S. District Court by Judge Jon D. Levy to 18 years in prison and five years of supervised release for being a felon in possession of ammunition. Hudson pleaded guilty to the charge on June 11, 2014.Court records and evidence presented at the sentencing hearing reveal that on January 13, 2014, Hudson was living in a Lewiston townhouse apartment with his girlfriend and her young children. Shortly before 8:00a.m., he got into an argument with the father of those children when the father arrived to help them get on the school bus, as he did daily. Hudson retrieved a 9 mm handgun from the apartment, ran outside, chased and fired multiple shots at the father as nearby school children began filing outside to catch their bus. Hudson then fled the scene on foot.
A search of Hudson’s bedroom revealed a safe containing 38 rounds of ammunition, some of which matched that used to shoot at the father. Hudson hid from the police for several hours in a neighbor’s townhouse. He was captured three hours after the shooting. He refused to tell investigators where the handgun was hidden and it remains unrecovered.
As a result of prior convictions for drug trafficking offenses and violent felonies in
Massachusetts between 1997 and 2005, Hudson was subject to an enhanced sentence as an
Armed Career Criminal requiring a mandatory minimum of 15 years in prison.Judge Levy said that his main focus in imposing the lengthy sentence was the need to protect the public from further crimes by Hudson.
The investigation was conducted by the Lewiston Police Department, the Central Maine
Violent Crime Task Force and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.Lewis County Man Sentenced for Painkiller DistributionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Shane Brantley, 38, of Lewis County, West Virginia, was sentenced for his role in distributing prescription painkillers through the office of Dr. Edita Milan, United States Attorney William J. Ihlenfeld, II, announced today.
Brantley, who is currently serving a 51 month sentence for unlawful possession of a firearm, was sentenced to an additional 8 months in prison.
Brantley pled guilty in June 201 4 to one count of “Conspiracy to use the DEA Registration Number of Another Person” after a Greater Harrison County Drug Task Force investigation revealed that he used Dr. Milan’s DEA registration number to obtain oxycodone, hydrocodone, and alprazolam. The investigation began with citizen complaints surrounding prescription writing practices in Dr. Milan’s Bridgeport, West Virginia office. Milan is scheduled for trial on November 5, 2014.
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided
Las Vegas Man Sentenced to Prison for Conspiring to Submit False Federal Income Tax ReturnsRead the Press Release
A Las Vegas man was sentenced to serve 15 months in prison to be followed by three years of supervised release and ordered to pay $192,632 in restitution to the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada.
Damon Boswell pleaded guilty to conspiracy to submit false claims for federal income tax refunds on May 29. He was sentenced yesterday by U.S. District Court Judge Jennifer A. Dorsey.
According to the plea agreement, between April 2009 and May 2009, Boswell, along with others, conspired to defraud the United States by assisting in the filing of federal tax returns falsely claiming refunds based on the First-Time Home Buyers Credit.
Boswell obtained personal identifying information from individuals by falsely telling them that if they had not filed their 2008 federal income tax returns and did not owe back taxes, they were entitled to receive “Obama Stimulus” money. The personal information, including names, dates of birth and social security numbers, was then used to file federal income tax returns claiming refunds to which the individuals were not entitled. The individuals did not authorize Boswell or anyone else to file or cause the filing of tax returns in their names. Boswell’s co-conspirator, Cheryl Ramos, pleaded guilty on Jan. 24 and has been sentenced.
The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Christina Brown and Trial Attorney Sonia M. Owens of the Tax Division.
Klamath Falls Felon Sentenced to 15 Years Federal Prison for Possessing FirearmsRead the Press Release
MEDFORD, Ore. - Today Senior U.S. District Judge Owen M. Panner sentenced Vincent Sanchez, Jr., 37, of Klamath Falls, Oregon, to 15 years in federal prison for being a felon in possession of a firearm. Sanchez will be on five years of supervised release after he completes his prison term. The maximum sentence he faced was life in prison.
On December 12, 2013, Klamath County Sheriff’s detectives observed Sanchez in the front passenger’s seat of a vehicle. Sanchez had an outstanding felony arrest warrant, and deputies had information that he was carrying a firearm. Deputies stopped the vehicle, ordered defendant out, searched him, and found a loaded 9mm handgun in a shoulder holster concealed under his sweatshirt. A black zippered bag in the front passenger’s seat contained three baggies of methamphetamine (62 grams actual meth), drug notes, and digital scales. Deputies then searched the home where Sanchez was staying and retrieved a loaded SKS assault rifle and a Ruger 7mm bolt action rifle Sanchez had stored at the residence.
Under federal law, any person who possesses a firearm or ammunition after being previously convicted of three violent felonies or drug trafficking crimes qualifies as an Armed Career Criminal and faces a 15 year mandatory minimum prison sentence. Based upon defendant’s prior felony convictions for felony attempt to elude, assault on a police officer (three counts), conspiracy to delivery methamphetamine, and burglary, Sanchez was sentenced as an Armed Career Criminal. His criminal history also includes felony convictions for supplying contraband, transportation of a controlled substance, tampering with a witness, and possession of a methamphetamine, and misdemeanor convictions for strangulation, possessing a switchblade knife, interfering with police, false information to police, theft and disorderly conduct.
This case was investigated jointly by the Klamath County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Kentucky Cardiologists Agree to Pay $380,000 to Settle False Claims Act Allegations Based on Illegal ReferralsRead the Press Release
The Department of Justice announced today that two cardiologists based in London, Kentucky, have agreed to pay $380,000 to resolve allegations that they violated the False Claims Act by entering into sham management agreements with Saint Joseph Hospital, also based in London, Kentucky, in exchange for the referral of cardiology procedures and other healthcare services to Saint Joseph.
“Physicians who place their financial interests above the well-being of their patients will be held accountable,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “The Department of Justice is committed to preventing illegal financial relationships that undermine the integrity of our public healthcare programs.”
Satyabrata Chatterjee and Ashwini Anand jointly owned Cumberland Clinic, a physician group that provided cardiology services. The government alleged that St. Joseph Hospital entered into sham agreements with Chatterjee and Anand, under which the physicians were paid to provide management services but did not in fact do so. The government further alleged that, in exchange for the sham agreements, Chatterjee and Anand agreed to enter into an exclusive agreement with St. Joseph to refer Cumberland Clinic patients to the hospital for cardiology and other services in violation of the Stark Law and the Anti-Kickback Statute. The Stark Law forbids a hospital from billing Medicare for certain services referred by physicians who have a financial relationship with the entity. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare.
“Financial relationships between healthcare providers that put profits over patients are a threat to the programs upon which millions of Americans depend,” said U.S. Attorney Kerry Harvey for the Eastern District of Kentucky. “We will continue to use all the tools available to us to safeguard our federally funded healthcare programs from those who seek to profit from them through illegal means.”
In addition to payment of the settlement amount, which was based on Chatterjee and Anand’s financial ability to pay, Chatterjee and Anand have agreed to enter into integrity agreements with the Department of Health and Human Services-Office of Inspector General (HHS-OIG), which obligate them to undertake substantial internal compliance reforms and to commit to a third-party review of their claims to federal health care programs for the next three years.
“Physicians who accept kickbacks in exchange for referrals undermine the integrity of the medical profession," said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta region. “OIG will continue to protect both patients and taxpayers by holding physicians and hospitals accountable for improper claims."
The government previously entered into a $16.5 million settlement with Saint Joseph Hospital for the allegedly sham management contracts the hospital executed with Chatterjee and Anand, as well as for allegedly billing for unnecessary and excessive cardiology procedures by other members of Chatterjee and Anand’s cardiology practice.
The settlement announced today stems from a complaint filed by three Lexington, Kentucky, cardiologists pursuant to the whistleblower provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the United States. The act permits the United States to intervene in the lawsuit and take over the allegations, as the government did in this case. The three whistleblowers, Drs. Michael Jones, Paula Hollingsworth and Michael Rukavina, will collectively receive $68,400.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.5 billion through False Claims Act cases, with more than $14.3 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation was conducted by the FBI, HHS-OIG, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Eastern District of Kentucky. The claims settled by this agreement are allegations only and there has been no determination of liability.
The lawsuit is captioned United States ex rel. Jones, Hollingsworth, and Rukavina v. St. Joseph Health System et al., no. 11-cv-81-GFVT (E.D.Ky.)
Kenner Man, Jose Rafael Hiraldo-suarez, Sentenced for Unlawful Transfer of Identification DocumentRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE RAFAEL HIRALDO-SUAREZ, age 35, a resident of Kenner, was sentenced today after having previously pled guilty to a one-count indictment for the unlawful transfer of identification document.
U.S. District Judge Jay C. Zainey sentenced HIRALDO-SUAREZ to 2 years probation to include 3-months of home confinement.
According to court documents, on or about February 18, 2014, HIRALDO-SUAREZ transferred, without lawful authority, a means of identification of another person, to wit, a Social Security card, with the intent to commit, or to aid or abet, or in connection with, unlawful activity that constitutes social security fraud.
U.S. Attorney Polite praised the work of the Department of Homeland Security Investigations and Immigration and Customs Enforcement Agencies in investigating this matter. Assistant United States Attorney Irene Gonzàlez is in charge of the prosecution.
Javier Pleads Guilty to Theft and Forgery of Social Security BenefitsRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that FRANCISCO A. JAVIER, age 50, of Waianae (Honolulu County), Hawaii, pled guilty on October 17, 2014, in the U.S. District Court, District of Hawaii, to one count of Theft of Government Money and one count of Forging Endorsements on Treasury Checks. For each count, the maximum sentence under the statute is 10 years in prison and a $250,000 fine. JAVIER had been previously charged on April 30, 2014 by a federal grand jury in the District of Guam with multiple counts of the above referenced offenses. JAVIER self-surrendered May 2, 2014 at the Federal Bureau of Investigation (“FBI”) Honolulu Division field office. Sentencing for JAVIER in the District of Hawaii is scheduled for February 12, 2015.
According to court documents, JAVIER’s mother died in April 2002, but JAVIER, from June 2002 to May 2010, received Social Security retirement insurance and other related benefits intended for his mother. The Social Security Administration, an agency of the United States, was unaware of the beneficiary’s death and continued to mail U.S. Treasury checks to the beneficiary at a post office box address in Guam. JAVIER forged his mother’s signature and fraudulently endorsed the checks, cashed them and received payments totaling $80,343.
Alicia A.G. Limtiaco stated “the United States Attorney’s Office is committed to working with its law enforcement partners to help maintain the integrity of the Social Security Program for seniors and other beneficiaries who have rightfully earned these benefits.” This case is the result of an investigation conducted by the Social Security Administration, Office of the Inspector General and the FBI Guam Resident Agency. The prosecution was handled by Assistant U.S. Attorney Marivic David.Head of the Gulf Cartel Appears in Beaumont Federal Court on Drug Trafficking ChargesRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - U.S. Attorney John M. Bales announced today that the current head of the Mexican drug trafficking organization, the Gulf Cartel, or Cartel del Golfo, has made an initial appearance in the Eastern District of Texas on drug trafficking charges.
Juan Francisco Saenz-Tamez, 23, of Camargo, Tamaulipas, Mexico, was arrested by federal agents on Oct. 9, 2014 while shopping in Edinburg, Texas.
A federal investigation into the large-scale trafficking of illegal drugs from Mexico into the Eastern District of Texas led to the identity of Saenz-Tamez. The investigation revealed thousands of kilograms of cocaine and marijuana were shipped into the Eastern District of Texas and then to locations across the nation, including Florida, Ohio, Michigan, Mississippi, Louisiana, Washington D.C., Pennsylvania, Tennessee, Maryland and Georgia.
Saenz-Tamez was indicted by a federal grand jury on Sep. 5, 2013 and charged with conspiracy with intent to distribute cocaine, conspiracy with intent to distribute marijuana, and conspiracy to money launder. Saenz-Tamez was transported from McAllen, Texas to Beaumont where he appeared before U.S. Magistrate Judge Zack Hawthorn for a detention hearing and initial appearance today.
If convicted, Saenz-Tamez faces a minimum of 10 years and up to life in federal prison for the drug charges and up to 20 years in federal prison for the money laundering charge.
"The news that Juan Saenz-Tamez has been arrested is further proof that justice is prevailing in Mexico,” said U.S. Attorney Bales. “I am encouraged that the efforts of so many law enforcement officers are now paying off. Congratulations to them and I look forward to seeing Saenz-Tamez answer for his crimes in a Beaumont courtroom."
“Juan Francisco Saenz-Tamez became the head of the Gulf Cartel following the 2013 arrest of former leader Mario Ramirez-Trevino,” said DEA Administrator Michele M. Leonhart. “He moved steadily up the cartel ranks, working as a lookout, record keeper, plaza boss, and finally its leader. Thanks to the quick actions of DEA and our local partners, we were able to identify and safely arrest Saenz-Tamez while he was in the United States. He oversaw much of the violence and bloodshed that has plagued Mexico and DEA is pleased he will face justice in the United States.”“The arrest of Juan Francisco Saenz-Tamez, will put a stop to his role in the distribution of illegal drugs and the laundering of drug proceeds,” said IRS-CI Special Agent in Charge Lucy Cruz. “Laundering their profits is as important and essential to drug traffickers as the distribution of their illegal drugs. IRS CI is proud to provide assistance as we work alongside our law enforcement partners to bring these criminals to justice."
This case is the result of ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigations, Operation South Park, Operation La Mano Negra, Operation Frontera Chica and Operation Iceberg. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This joint law enforcement investigation was led by the U.S. Drug Enforcement Administration and Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, United States Marshals Service, Texas Department of Public Safety, Texas Attorney General’s Office, National Guard of Texas – Joint Counterdrug, Beaumont Police Department, Houston Police Department, Nacogdoches Police Department, Jefferson County Sheriff’s Office, and the Harris County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney John Craft.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Haroon Aswat Extradited from the United Kingdom to the Southern District of New York to Face Terrorism ChargesRead the Press Release
Assistant Attorney General for National Security John Carlin, United States Attorney Preet Bharara for the Southern District of New York, Assistant Director-in-Charge George Venizelos of the New York Field Office of the Federal Bureau of Investigation (FBI), and Commissioner William J. Bratton of the New York City Police Department (NYPD), announced the extradition of Haroon Aswat from the United Kingdom to face charges of conspiring to provide and providing material support to al Qaeda and terrorists for attempting to establish a terrorist training camp in the United States.
Aswat was arrested in Zambia in July 2005, and in August 2005, Aswat was deported from Zambia to the United Kingdom, where he was arrested pursuant to a provisional warrant that was issued in response to a request by the U.S. government in connection with this case. On Sept. 4, 2014, the United Kingdom ordered Aswat extradited to the United States on the charges described below. In coordination with British authorities, Aswat was extradited from the United Kingdom to the Southern District of New York on Oct. 21, 2014. Aswat will make his first court appearance later today before U.S. District Judge Katherine B. Forrest.
According to the allegations contained in the Indictment, statements made at related court proceedings, and evidence presented at prior trials:
In late 1999, Aswat, along with co-defendants Mustafa Kamel Mustafa, aka Abu Hamza (Abu Hamza), Ouassama Kassir, and Earnest James Ujaama, attempted to create a terrorist training camp in the United States to support al Qaeda, which has been designated by the United States Secretary of State as a foreign terrorist organization. Aswat conspired with Abu Hamza, Kassir and Ujaama to establish the terrorist training camp on a rural parcel of property located in Bly, Oregon. The purpose of the Bly, Oregon, camp was for Muslims to receive various types of training – including military-style jihad training – in preparation to fight jihad in Afghanistan. As used by the conspirators in this case, the term “jihad” meant defending Islam against purported enemies through violence and armed aggression, including, if necessary, by using murder to expel non-believers from Muslim holy lands.
In a letter faxed from Ujaama, in the United States, to Abu Hamza, in the United Kingdom, the property in Bly was described as a place that “looks just like Afghanistan,” and the letter noted that the men at Bly were “stock-piling weapons and ammunition.” In late 1999, after transmission of the faxed letter, Abu Hamza directed Aswat and Kassir, both of whom resided in London, England, and attended Abu Hamza’s mosque there, to travel to Oregon to assist in establishing the camp. On Nov. 26, 1999, Aswat and Kassir arrived in New York, and then traveled to Bly.
Aswat and Kassir traveled to Bly for the purpose of training men to fight jihad. Kassir told witnesses that he supported Usama Bin Laden and al Qaeda, and that he had previously received jihad training in Pakistan. Kassir also possessed a compact disc that contained instructions on how to make bombs and poisons. After leaving Bly, Aswat and Kassir traveled to Seattle, Washington, where they resided at a mosque for approximately two months. While in Seattle, Kassir, in Aswat’s presence, provided men from the mosque with additional terrorist training lessons – including instructions on different types of weapons, how to construct a homemade silencer for a firearm, how to assemble and disassemble an AK-47, and how an AK-47 could be altered to be fully automatic and to launch a grenade. On another occasion, with Aswat sitting by his side, Kassir announced to the men in Seattle that he had come to the United States for martyrdom and to destroy, and he informed his audience that some of them could die or get hurt.
In September 2002, special agents from the FBI recovered a ledger, among other items, from an al Qaeda safe house in Karachi, Pakistan. The ledger listed a number of individuals associated with al Qaeda, including Aswat. The al Qaeda safe house was used by Khalid Sheikh Mohammed, al Qaeda’s chief operational planner and the alleged planner of the terrorist attacks of Sept. 11, 2001.
* * *
The indictment charges Aswat, 40, a British citizen, with four offenses that carry the following maximum penalties:
Charge
Statutory Violation
Maximum Prison Term
Conspiracy to provide material support to terrorists
18 U.S.C. § 371
Five years
Providing material support to terrorists
18 U.S.C. §§ 2339A, 2
10 years
Conspiracy to provide material support to a foreign terrorist organization (al Qaeda)
18 U.S.C. §2339B
10 years
Providing material support to a foreign terrorist organization (al Qaeda)
18 U.S.C. §§ 2339B, 2
10 years
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
On May 12, 2009, after a four-week jury trial in the Southern District of New York, Kassir was found guilty of charges relating to his efforts to establish the terrorist training camp in Bly, and his operation of several terrorist websites. On Sept. 15, 2009, U.S. District Judge John F. Keenan sentenced Kassir to life in prison.
On May 19, 2014, after a four-week jury trial in the Southern District of New York, Abu Hamza was found guilty of charges relating to his role in the conspiracy to establish the terrorist training camp in Bly, as well as his role in a hostage-taking in Yemen in 1998 that resulted in four deaths, and his support of violent jihad in Afghanistan in 2000 and 2001. Abu Hamza is scheduled to be sentenced on Jan. 9, 2015, before U.S. District Judge Katherine B. Forrest.
U.S. Attorney Bharara praised the outstanding efforts of the FBI’s Manhattan-based Joint Terrorism Task Force, which principally consists of agents and detectives of the FBI and the NYPD, the United States Marshals Service, and the Metropolitan Police Department of London, England. U.S. Attorney Bharara also thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs, and the United States Department of State for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys John P. Cronan and Ian McGinley are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Haroon Aswat Extradited from the United Kingdom to the Southern District of New York to Face Terrorism ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced the extradition of HAROON ASWAT from the United Kingdom to face charges of conspiring to provide and providing material support to al Qaeda and terrorists for attempting to establish a terrorist training camp in the United States.
ASWAT was arrested in Zambia in July 2005, and in August 2005, ASWAT was deported from Zambia to the United Kingdom, where he was arrested pursuant to a provisional warrant that was issued in response to a request by the U.S. Government in connection with this case. On September 4, 2014, the United Kingdom ordered ASWAT extradited to the United States on the charges described below. In coordination with British authorities, ASWAT was extradited from the United Kingdom to the Southern District of New York on October 21, 2014. ASWAT will make his first court appearance later today before U.S. District Judge Katherine B. Forrest.
According to the allegations contained in the Indictment, statements made at related court proceedings, and evidence presented at prior trials:
In late 1999, ASWAT, along with co-defendants Mustafa Kamel Mustafa, a/k/a “Abu Hamza” (“Abu Hamza”), Ouassama Kassir, and Earnest James Ujaama, attempted to create a terrorist training camp in the United States to support al Qaeda, which has been designated by the United States Secretary of State as a foreign terrorist organization. ASWAT conspired with Abu Hamza, Kassir, and Ujaama to establish the terrorist training camp on a rural parcel of property located in Bly, Oregon. The purpose of the Bly, Oregon camp was for Muslims to receive various types of training – including military-style jihad training – in preparation to fight jihad in Afghanistan. As used by the conspirators in this case, the term “jihad” meant defending Islam against purported enemies through violence and armed aggression, including, if necessary, by using murder to expel non-believers from Muslim holy lands.
In a letter faxed from Ujaama, in the United States, to Abu Hamza, in the United Kingdom, the property in Bly was described as a place that “looks just like Afghanistan,” and the letter noted that the men at Bly were “stock-piling weapons and ammunition.” In late 1999, after transmission of the faxed letter, Abu Hamza directed ASWAT and Kassir, both of whom resided in London, England, and attended Abu Hamza’s mosque there, to travel to Oregon to assist in establishing the camp. On November 26, 1999, ASWAT and Kassir arrived in New York, and then traveled to Bly.
ASWAT and Kassir traveled to Bly for the purpose of training men to fight jihad. Kassir told witnesses that he supported Usama Bin Laden and al Qaeda, and that he had previously received jihad training in Pakistan. Kassir also possessed a compact disc that contained instructions on how to make bombs and poisons. After leaving Bly, ASWAT and Kassir traveled to Seattle, Washington, where they resided at a mosque for approximately two months. While in Seattle, Kassir, in ASWAT’s presence, provided men from the mosque with additional terrorist training lessons – including instructions on different types of weapons, how to construct a homemade silencer for a firearm, how to assemble and disassemble an AK-47, and how an AK-47 could be altered to be fully automatic and to launch a grenade. On another occasion, with ASWAT sitting by his side, Kassir announced to the men in Seattle that he had come to the United States for martyrdom and to destroy, and he informed his audience that some of them could die or get hurt.
In September 2002, special agents from the FBI recovered a ledger, among other items, from an al Qaeda safe house in Karachi, Pakistan. The ledger listed a number of individuals associated with al Qaeda, including ASWAT. The al Qaeda safe house was used by Khalid Sheikh Mohammed, al Qaeda’s chief operational planner and the alleged planner of the terrorist attacks of September 11, 2001.
The Indictment charges ASWAT, 40, a British citizen, with four offenses that carry the following maximum penalties:
1) Conspiracy to provide material support to terrorists (18 U.S.C. § 371): Five years
2) Providing material support to terrorists (18 U.S.C. §§ 2339A, 2): 10 years
3) Conspiracy to provide material support to a foreign terrorist organization (al Qaeda) (18 U.S.C. §2339B): 10 years
4) Providing material support to a foreign terrorist organization (al Qaeda) (18 U.S.C. §§ 2339B, 2): 10 years
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
On May 12, 2009, after a four-week jury trial in the Southern District of New York, Kassir was found guilty of charges relating to his efforts to establish the terrorist training camp in Bly, and his operation of several terrorist websites. On September 15, 2009, U.S. District Judge John F. Keenan sentenced Kassir to life in prison.
On May 19, 2014, after a four-week jury trial in the Southern District of New York, Abu Hamza was found guilty of charges relating to his role in the conspiracy to establish the terrorist training camp in Bly, as well as his role in a hostage-taking in Yemen in 1998 that resulted in four deaths, and his support of violent jihad in Afghanistan in 2000 and 2001. Abu Hamza is scheduled to be sentenced on January 9, 2015, before U.S. District Judge Katherine B. Forrest.
Mr. Bharara praised the outstanding efforts of the FBI’s Manhattan-based Joint Terrorism Task Force, which principally consists of agents and detectives of the FBI and the NYPD, the United States Marshals Service, and the Metropolitan Police Department of London, England. Mr. Bharara also thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys John P. Cronan and Ian McGinley are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
HIDTA Front Range Drug Task Force Takes Down Major Heroin Drug Trafficking Organization with A Connection to MexicoRead the Press Release
DENVER – The Front Range Task Force, working with the U.S. Marshals Service, U.S. Attorney’s Office, Drug Enforcement Administration, Denver Police Department, Arapahoe County Sheriff’s Office, Aurora Police Department, Internal Revenue Service – Criminal Investigation, U.S. Immigration and Customs Enforcement, and the Bureau of Alcohol, Tobacco, Firearms & Explosives, has dismantled a major Denver Metropolitan Area heroin trafficking organization with roots in Sinaloa, Mexico, authorities announced today. A total of 50 defendants were arrested over the course of this investigation on either federal or state charges. During the final phase of the investigation 28 additional arrests were made during an operation conducted last week in the Denver area. Thirteen of the defendants were indicted by a federal grand jury in Denver. Some of the federally indicted defendants remain at large. Also, a total of 16 search warrants were executed during the latter part of the investigation.
During the course of this multi-state investigation, which began in October 2012, over 23 pounds of heroin, 4 firearms, $300,000 in currency and 7 vehicles were seized.
The underlying investigation disclosed that the target drug organization has a source of supply echelon with roots in Sinaloa, Mexico. In the Denver metropolitan area, in the last several years, the most plentiful kind of heroin has been “black tar heroin” originating in Mexico. A substantial portion of the black tar heroin distributed in the Denver metropolitan area originates in the State of Sinaloa, Mexico.Source of supply echelon members arranged to have large amounts of black tar heroin brought to Colorado on a periodic basis. Using their inventory of heroin, the source of supply members provided ounce sized portions of heroin to street level dealers in the Denver metropolitan area on a regular basis. The underlying investigation showed the source of supply level members would charge the street level dealer members approximately $700.00 an ounce for heroin. The street level dealers, in turn would sell heroin in gram and half gram quantities to customers, users, and lower level re-distributors, generally charging $60.00 for a gram of heroin.
The source of supply echelon members in the Denver metro area during the period of the underlying investigation generally consisted of three or four adult males at any given time. The source of supply echelon members apparently remained in the Denver metropolitan area for a period of time on assignment, and periodically returned to Mexico. One of the three to four males would act as the primary contact for communications with the street level dealers, setting appointments, handling potential issues of suitable quality or proper quantity, timely payment, operational security, etc.
“Trafficking and abuse of heroin in Colorado has skyrocketed,” said U.S. Attorney John Walsh. “With no way for users to determine purity, heroin has the potential of not only making people sick, but killing them outright, as rising overdose death statistics tragically demonstrate. The Front Range Task Force’s work to get this staggering amount of high grade heroin off the street makes our communities safer, and makes it harder for those who use heroin to find the drug.”
The Special Agent in Charge of the Drug Enforcement Administration for the Denver area, Barbra M. Roach, said that “This sustained investigation and enforcement has disrupted a well-entrenched heroin distribution cell in the Denver Metro area controlled by a Sinaloa, Mexico Cartel”
Denver Police Chief White stated that “The Front Range Task Force is proud to have partnered with the U.S. Attorney’s Office, DEA and several local and state law enforcement entities to investigate this drug trafficking group. The investigation of the DTO involved a two year investigation targeting street level heroin dealers and working the case up to an international drug organization. With the amount of heroin seizures, assets and weapons, the investigation dismantled the Denver cell of this Drug Organization. This case was unique because it required investigators to work with several different levels of drug dealers, including street deals, mid-level operations and ultimately, a major drug trafficking organization. The Front Range Task Force relied heavily on other jurisdictions and DEA Groups in dismantling the Denver Cell of this Drug Trafficking Organization and is proud of the fact the case was able to reduce the amount of heroin on the streets today.”
The defendants charged in the federal case each face conspiracy to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of heroin. If convicted, each defendant faces not more than 20 years in federal prison, and up to a $1,000,000 fine.The Front Range Task Force is comprised of the DEA, the Denver Police Department, the Arapahoe County Sheriff’s Office, the Aurora Police Department, and the Douglas County Sheriff’s Office. The Internal Revenue Service – Criminal Investigation (IRS CI) participated in this investigation as well.
This case is being prosecuted by Assistant U.S. Attorney Guy Till, with the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty
Georgia Convicted Felon Sentenced in El Paso to Seven Years in Federal Prison for Possessing A Firearm During Interstate KidnappingRead the Press Release
In El Paso today, 27-year-old Wano McSwain of Dahlonega, Georgia, was sentenced to seven years in federal prison for being a convicted felon in possession of a firearm during an interstate kidnapping announced United States Attorney Robert Pitman and Douglas E. Lindquist, Federal Bureau of Investigation (FBI) Special Agent in Charge of the El Paso Division.
In addition to the prison term, United States District Judge Philip R. Martinez ordered that McSwain be placed under supervised release for a period of three years after completing his prison term and forfeit two firearms and an assortment of ammunition seized by law enforcement at the time of his arrest.
According to court records, on February 5, 2014, a 78-year-old man reported to a store clerk at the Love’s Truck Stop on Interstate 10 in Anthony, TX, that he was in fear of his life. The man told the clerk that two days prior, while in Georgia, McSwain forced him at gunpoint to drive McSwain to Albuquerque, NM. Anthony police officers arrived on the scene and began searching for McSwain. They subsequently arrested McSwain nearby and recovered a .25 caliber pistol and a .20 gauge shotgun belonging to McSwain.
McSwain’s criminal history reveals that he was convicted of Pandering of a Child on April 19, 2005 in Clark County, NV, and subsequently sentenced to two to eight years in the Nevada Department of Corrections. Further investigation revealed a police report on file in Lumpkin County, GA, which alleged that McSwain stole the .20 gauge shotgun recovered by authorities on February 5, 2014. On August 29, 2014, McSwain pleaded guilty to the federal felon-in-possession charge in El Paso.
This case was investigated by special agents with the Federal Bureau of Investigation together with the Anthony Police Department. Assistant United States Attorney Rifian Newaz prosecuted this case on behalf of the Government.Gaston Man Pleads Guilty to Federal Firearms and Ammunition ChargeRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Warren Dominique McDaniel, age 28, of Gaston, South Carolina pled guilty as charged today in federal court. McDaniel plead guilty to two (2) counts of being a felon in possession of firearms and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). McDaniel plead straight up to both charges in the federal indictment without a plea agreement. United States District Judge Michelle Childs accepted the plea and will impose a sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on July 22, 2010, officers with the Columbia Police Department executed a state search warrant at a Columbia residence following the controlled purchase of a small amount of marijuana from a male inside the residence. During a search of the residence, officers recovered a Romarm 7.62x39mm rifle with a 30-round high capacity magazine, a Taurus .45 caliber pistol, rounds of .45 caliber ammunition, a digital scale, a box of ziplock bags, and a marijuana blunt. McDaniel, who lived at the residence at the time, admitted that the guns and marijuana belonged to him and that he bought the guns off the street because he was a felon. McDaniel was charged by state authorities and plead guilty to simple possession of marijuana and paid a fine. Evidence presented at the change of plea hearing today further established that on April 12, 2014, officers with the Lexington County Sheriff’s Department responded to a shooting at a birthday party in Gaston, South Carolina and found that a 7 year-old female had been shot and killed and a 5 year-old male had been shot in the arm. The investigation revealed that during the party, McDaniel’s girlfriend had unlocked the trunk of McDaniel’s vehicle to allow a child to retrieve a toy. Unbeknownst to her, while looking for the toy, the child found a loaded FEG 7.62x39mm rifle with a 30-round high capacity magazine in the trunk of the vehicle and pulled the trigger, causing the rifle to fire while inside the trunk, striking the other two (2) children who were standing outside the vehicle. The investigation revealed that the firearm belonged to McDaniel, who admitted that he had purchased it off the street approximately 4 ½ years earlier. McDaniel further admitted that he sold marijuana and that he kept the gun for protection.
The investigation revealed that McDaniel is prohibited under federal law from possessing firearms and/or ammunition based upon his prior state convictions for unlawful carrying of a weapon (two separate counts), possession of a stolen pistol, possession of marijuana, possession of a stolen pistol, possession of less than 1 gram of crack cocaine, giving false information, possession with intent to distribute marijuana, and simple possession of marijuana.
Mr. Nettles stated that McDaniel faces a statutory maximum sentence of ten (10) years, a fine of $250,000 and a term of supervised release of up to three (3) years following the term of imprisonment. However, if McDaniel were found to have three (3) prior violent felony convictions and/or serious drug convictions, he would be deemed an armed career criminal under federal law and face a statutory mandatory minimum of fifteen (15) years imprisonment with a maximum of life, a fine of $250,000 and a term of supervised release of up to five (5) years following the term of imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Lexington County Sheriff’s Department, and the Columbia Police Department, and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.Gardiner Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert
Richard, 26, of Gardiner, Maine, pleaded guilty today in U.S. District Court to Interference with
Commerce by Robbery, in connection with the November 28, 2013 (Thanksgiving Day) robbery of the Rite Aid pharmacy in Bridgton, Maine.Court records reveal that on Thanksgiving in 2013, Richard entered the Rite Aid in
Bridgton wearing a hooded sweatshirt, sunglasses, and a bandana, and handed the pharmacist a note that read, “All your oxycodone now!” The pharmacist handed Richard a bag containing oxycodone pills and Richard fled from the pharmacy in a car with a concealed license plate.Richard faces up to 20 years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Federal Bureau of Investigation and the Bridgton
Police Department, with additional assistance provided by the Augusta and Gardiner Police
Departments, and the Kennebec County Sheriff’s Department.Fraudster Homebuilder Sentenced to 15 Years in Prison for Defrauding Investors of $19.805 Million and Evading $2.6 Million in TaxesRead the Press Release
“The Sentence Fits the Crime”
Baltimore, Maryland - U.S. District Judge J. Frederick Motz today sentenced Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Selbyville, Delaware to 15 years in prison followed, by three years of supervised release, on charges of wire fraud conspiracy, wire fraud and tax evasion. Judge Motz also entered an order that Belzner pay $19.805 million in restitution.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“This lengthy sentence fits the crime," said U.S. Attorney Rod J. Rosenstein. "This was a longstanding and complex fraud scheme perpetrated by experienced con artists.”
According to Belzner’s plea agreement and court documents, from the fall of 2009 through August 2011, Belzner, a home builder, worked for a real estate development business known as the McCloskey Group, which was owned by another home builder named Brian McCloskey. During that time, Belzner conspired with McCloskey; Kevin Sniffen, a Maryland title company attorney; Mervyn Phelan, who held the title of “Senior Underwriter” with a California loan brokerage company named IAG; and Gregory Grantham, a California attorney who was the legal counsel of IAG, to defraud investors through a fraudulent investment scheme.
Specifically, Belzner and the conspirators advised wealthy individuals and investment advisers that in order for the McCloskey Group to obtain large loans for various real estate projects through IAG, it was necessary for the McCloskey Group to deposit substantial sums of money in an escrow bank account to establish that it had cash reserves or “liquidity.” Belzner and his co-conspirators, including Phelan and Grantham, further represented to potential lenders that it was acceptable for the McCloskey Group to borrow these funds. They also represented that the funds would be maintained under the control of Sniffen, a licensed attorney and escrow agent; would not be used for any other purpose; and that the money would be returned to the investor, either upon the funding of the loan or after a specified (and usually relatively short) period of time if the loan did not fund by the expected date. In return for this temporary use of the investor's funds, Belzner and McCloskey promised to pay potential lenders substantial fees or interest.
Contrary to these representations, Belzner admitted that he instead directed McCloskey to remove the investors’ funds soon after they had been deposited into the escrow account. Belzner and McCloskey then used the stolen funds to pay for their personal and business expenses, as well as to make partial repayments to earlier lenders, to pay fees to some of the victim investors to keep them from demanding the return of their money, and to pay IAG for its supposed work and expenses in attempting to locate financing sources. Belzner also directed McCloskey and others to use some of the stolen escrow funds to make payments to other individuals from whom Belzner alone had borrowed money in the past.
Belzner and his co-conspirators attempted to conceal the fraud by providing lenders with false bank statements reflecting that the funds received were still being held in the escrow account; falsely representing in emails and in telephone conversations that the funding of the loans sought by the McCloskey Group and the return of the lenders’ funds was imminent; or by making “extension” payments to lenders in return for being allowed to hold their funds for a longer period than originally promised. Belzner also wrote scripts for other conspirators to use in telephone conversations or written or email communications with the escrow account lenders and their counsel in order to lull them into believing that their funds were safe and would be returned to them as promised.
The court determined today that Belzner and his conspirators' fraudulent scheme caused losses in excess of $19.805 million to more than 26 victim investors.
“Many people think financial crime is victimless, but this case proves that is simply not true. What makes this investigation particularly disturbing is that Mr. Belzner manipulated, lied to and stole from his friends and next-door neighbors. He took money from hardworking, trusting people and then heartlessly flaunted his theft in front of his victims,” stated Steve Vogt, FBI Special Agent in Charge of the Baltimore Division. “Mr. Belzner has shown no remorse for his crimes, and deserves to sit in prison reflecting on what his own greed cost his family and friends.”
Belzner also pleaded guilty to evasion of assessed tax payments. In 1995, 1996 and 1998, Belzner stole $1,111,304.78 from his employer at the time, and in 1998, he stole $186,146.71 from another employer, none of which he reported as income on his tax returns for those years. A subsequent IRS audit of those tax years resulted in the assessment of additional taxes, interest and penalties against Belzner of $1,150,935.25 for the 1995 and 1996 tax years and $246,424.50 for the 1998 and 1999 tax years.
To avoid paying those taxes, Belzner admitted that between January 2006 and June 2011, he intentionally concealed income and assets from the IRS and made no payments on his tax debt. For example, Belzner placed his residences, other real estate and automobiles in the names of corporations that he formed. Belzner paid his personal expenses, including his mortgage, ground rent for a vacation home, construction costs on a house that he built, car payments, Ravens season tickets, and private school tuition from bank accounts he opened in the names of the corporations or from payments out of McCloskey Group accounts. Belzner used individuals to act as “straw purchasers” for property that he acquired and to conduct financial and other transactions on his behalf. At Belzner’s direction, McCloskey Group employees and others also cashed more than $175,870 in company checks made payable to them, returning the cash to Belzner or using the cash to pay Belzner's creditors. Belzner also arranged for the McCloskey Group to pay many of his personal living expenses, rather than issuing him salary checks. For example, between January 2009 and June 2011, the McCloskey Group paid more than $1.5 million of Belzner’s personal expenses, including health and life insurance premiums, car, personal loan and mortgage payments, and utility and cable bills. In February 2006 and again in January 2009, Belzner submitted forms to the IRS falsely claiming that he did not have sufficient income to make any payments on the assessed back taxes, penalties and interest. The total amount of assessed tax, interest and penalties owed by Belzner as of August 2013 was $2,619,870.
"Throughout a decade of deceit, Patrick Belzner not only defrauded his investors, but also the American tax system, said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Motivated by pure greed, Belzner created an elaborate scheme to hide his stolen funds and evade paying his tax liability. In cooperation with our federal partners, IRS-CI is committed to holding thieves, such as Belzner, accountable for their misdeeds."
Brian McCloskey, age 44, of Baltimore; Kevin Sniffen, age 53, of Phoenix, Maryland; Mervyn A. Phelan, Sr., age 74, of Newport Beach, California; and Gregory E. Grantham, age 57, of Oceanside, California, have each pleaded guilty to their roles in the conspiracy. In addition, Sean Krondak, of Irvine, California, another IAG employee, has pled guilty to a charge of obstruction of justice arising out of IAG’s destruction of incriminating emails in response to a federal grand jury subpoena. Grantham and Phelan are respectively scheduled to be sentenced on November 14, 2014 and December 5, 2014, while Krondak and McCloskey are both scheduled to be sentenced on December 12, 2014. Sniffen is scheduled to be sentenced on December 19, 2014.
Today’s announcement is part of efforts undertaken by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI and IRS – Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Jefferson M. Gray and Kathleen O. Gavin, who prosecuted the case.
- Four Laredoans Arrested in Money Laundering Conspiracy
Former USP Hazelton Inmates Sentenced for Assaulting Inmate and Correctional OfficerRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Two former inmates at the United States Penitentiary in Hazelton, West Virginia were sentenced to additional time in prison for assaulting a fellow inmate and a correctional officer, United States Attorney William J. Ihlenfeld, II, announced today.
John David Pinke, 36, and Edward C. Crow, 44, were each sentenced to an additional 275 months in prison and ordered to pay $281,548.47 in restitution for assaulting a fellow inmate. Crow was also sentenced to an additional 240 months in prison for assaulting a correctional officer. Crow’s sentences will run consecutively. Both Pinke and Crow are currently incarcerated at the Federal Correctional Institution, Gilmer.
In January 2013, Pinke and Crow assaulted a fellow USP Hazelton inmate in one of the prison’s recreational areas. The victim suffered stab wounds from razor blades, broken bones, and cognitive impairment. A federal jury found both Pinke and Crow guilty of one count of “Conspiracy to Commit Assault with Intent to Commit Murder,” one count of “Assault with Intent to Commit Murder – Aiding and Abetting,” one count of “Assault with a Dangerous Weapon with Intent to do Bodily Harm,” and one count of “Assault Resulting in Serious Bodily Injury.” The jury also found Crow guilty of one count of “Possession of a Prohibited Object – Weapon.”
In a separate April 2013 incident, Crow used a handcrafted spear to stab a correctional officer through the food slot in his cell door. A federal jury found Crow guilty of one count of “Assaulting, Resisting, and Impeding Certain Officers or Employees,” one count of “Assault With a Dangerous Weapon With Intent to Do Bodily Harm,” and one count of “Possession of a Prohibited Object – Weapon.”
Assistant U.S. Attorney Andrew Cogar and former Assistant United States Attorney Brandon Flower prosecuted the cases on behalf of the government. The Federal Bureau of Prisons and the Special Investigative Staff at USP Hazelton led the investigations.
U.S. District Judge Irene M. Keeley presided.
Former Tutoring Company Owners Admit Defrauding Dallas and Fort Worth Independent School DistrictsRead the Press Release
DALLAS — Two individuals who ran a tutoring business from offices located in Hurst, Texas, appeared in federal court today, before U.S. Magistrate Judge Paul D. Stickney, and pleaded guilty to federal offenses stemming from their fraudulent operation of that business, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Flori Mati, aka “Florine Shaw,” 42, and David Mbugua, 43, each pleaded guilty to one count of conspiracy to make false, fictitious or fraudulent claims. Each faces a statutory maximum penalty of five years in federal prison, a $250,000 fine and restitution. Following their arrests in March 2014, the Court determined they were flight risks and ordered them to remain in federal custody. Sentencing is set for February 20, 2015, before U.S. District Judge Barbara M. G. Lynn.
Under the No Child Left Behind Act of 2001, federal funds were distributed to state educational agencies, which in turn distributed them to school districts in the form of sub-grants. School districts used a portion of these federal dollars to fund a Supplemental Education Services (SES) program. That SES program provided extra academic assistance, such as tutoring, for eligible students at no cost. Tutoring providers billed the local school districts for the hours of tutoring provided and the school district paid for the tutoring with federal grant money.
For the 2011-2012 and 2012-2013 school years, the Dallas Independent School District (DISD) and the Fort Worth Independent School District (FWISD) each received sub-grants and offered an SES program to eligible students at eligible schools.
From 2011 through the beginning of August 2012, Mati, a former DISD teacher, and Mbugua formed four tutoring companies: Wise Links, LLC; Diverse Links, Inc.; Boost Academy and Avenue Academy. They operated all four entities as one business from offices located on West Bedford Euless Road in Hurst. Beginning in September 2011 and continuing through the end of May 2013, Mati and Mbugua contracted with DISD and FWISD, as well as other school districts in Texas, to provide tutoring services under the SES program.
Mati and Mbugua formed these four separate companies to hide their true ownership and mislead the Texas Education Agency into believing they were unrelated companies, and thus, obtain more SES business than a single company could obtain from the various school districts.
They also obtained as many student names as possible. Mati obtained student identifying information by using her online teacher access to the DISD network. Mati, Mbugua and their employees would also go door-to-door with gifts and prizes to induce students to sign up for their tutoring services, regardless of the students’ intent to attend. Mati, Mbugua and their empoyees would then use student information to mass enroll students, via the Internet, from their residence, their Hurst offices and even from Kenya. They falsified documentation supporting their fraudulent claims by inducing students to sign attendance logs for tutoring sessions they did not receive. They even recruited a friend and her children to complete false and forged attendance sheets.
During the course of their conspiracy, Mati, Mbugua and others submitted false claims to DISD, FWISD and other school districts in Texas, for tutoring services under the SES program that were not provided to students. They billed DISD $2,730,389, and they were paid $1,523,079. They billed FWISD $1,430,687, and they were paid $1,003,318. Approximately 75% of the total amounts billed – approximately $3,120,807 – was for services not provided. Mati and Mbugua wired some of the proceeds they received from these false claims to Kenya, beyond the reach of U.S. authorities.
The FBI and U.S. Department of Education – Office of Inspector General investigated. Assistant U.S. Attorneys Nancy Larson and Megan Fahey are prosecuting.
Former Rocky Boy Health Clinic Ceo Sentenced to One Year in PrisonRead the Press Release
GREAT FALLS - The United States Attorney's Office today announced that Fawn Patricia Ann Tadios, 52, of Box Elder, the former Chief Executive Officer of the Rocky Boy Health Board Clinic, was sentenced to one year and one day in prison, $15,000 in restitution, and two years on supervised release by U.S. District Brian Morris of Great Falls.
Tadios was convicted by a federal jury in June of using tribal travel funds from the health clinic to visit her husband, former Chippewa Cree Tribal Chairman Raymond "Jake" Parker, in federal prison in Yankton, South Dakota. Parker was incarcerated at the federal facility in Yankton from December 2011 through November 2012 following his conviction for theft from the Chippewa Cree Tribe using a tribal credit card for personal purchases and cash advances.
Tadios was allowed to voluntarily surrender to prison when a facility is designated.
Former Pasco Teacher Pleads Guilty to Online Enticement of A MinorRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that David Wendel Thompson (49, Seffner) pleaded guilty yesterday to online enticement of a minor. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison and a potential life term of supervision. His sentencing hearing is set for January 20, 2015. According to the plea agreement, between December 14, 2013, and March 14, 2014, Thompson used Facebook to attempt to persuade two minor females in Belize, ages 13 and 15, to engage in sexual intercourse with him. He did so using his own Facebook account and a fake Facebook account that he had set up to appear as though it belonged to a female teenager in Belize.
On March 14, 2014, Thompson flew from Tampa to Belize, with a layover in Miami, to meet the minors with the intent of engaging in sexual activity. He was arrested in Miami and has remained in federal custody since that time. Thompson admitted to communicating with the females on Facebook and to knowing that they were underage. Prior to his arrest, Thompson was a social studies teacher at Centennial Middle School in Dade City.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, in conjunction with the U.S. Department of State. It is being prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Immigration Officer Who Took Bribes from Immigrants Sentenced to 51 Months in Federal PrisonRead the Press Release
Ex-Federal Employee and His Wife Were Also Found Guilty of Witness Tampering
SANTA ANA, California – A former immigration officer who was found guilty of taking bribes from Cambodian immigrants in exchange for immigration benefits, including granting the immigrants temporary legal status, has been sentenced to more than four years in federal prison.
Billy Louis Nelms Sr., 54, of Los Angeles, was sentenced to 51 months in prison late Monday afternoon by United States District Judge Andrew J. Guildford.
During the federal court proceeding Monday, Judge Guilford called the corruption offenses a “disappointment,” noting that “we live in a cynical time where people are not believing in their government.” Judge Guilford also stated that Nelms’ corrupt actions sent a poor message to immigrants, essentially telling them: “Pay the man, get the result.”
Following a seven-day trial, a federal jury on August 1 found Nelms guilty of conspiracy to commit bribery and defraud the United States, bribery, conspiracy to witness tamper and witness tampering.
“These corrupt actions challenged the integrity of an immigration system Mr. Nelms had sworn to uphold,” said Acting United States Attorney Stephanie Yonekura. “Mr. Nelms may have believed that he was above the law, but the prison sentence imposed today shows that everyone will be held accountable for their illegal actions.”
Nelms’ wife, Sokhon Nelms, 60, also of Los Angeles, also was found guilty of conspiracy to witness tamper and witness tampering for threatening two witnesses at the behest of her husband. Sokhon Nelms is scheduled to be sentenced by Judge Guilford on November 6.
“Maintaining the integrity of our nation’s immigration system remains one of the top priorities for the Department of Homeland Security (DHS), Office of Inspector
General (OIG),” said Roger T. Merchant, Special Agent in Charge of DHS OIG, Los Angeles Field Office. “There is no place within the Department for those who knowingly commit corrupt acts for their own personal gain. The DHS OIG will continue to aggressively pursue, investigate and prosecute those who break the law and violate the public trust.”
The evidence at the couple’s trial showed that, between 2005 and August 2008, Billy Nelms worked in the Santa Ana federal building as an immigration officer in the Fraud Detection and National Security unit, which is part of U.S. Citizenship and Immigration Services (USCIS). As part of his job, Nelms was involved in, among other things, investigating marriage fraud on applications for an immigration benefit.
The bribery scheme involved Cambodian immigrants who were present in the United States without legal status and promised permanent legal status by Nelms. The immigrants paid as much as $5,000 in cash, and, in exchange for this, Nelms stamped immigration documents that gave the immigrants temporary legal status in the United States – but not the permanent status they sought.
After Nelms was indicted on bribery charges in June 2013, Mr. and Mrs. Nelms tampered with two of the witnesses in the bribery case.
This case is the product of an investigation by the Department of Homeland Security’s Office of Inspector General (DHS-OIG).
USCIS’s Fraud Detection and National Security Directorate and Immigration Services and U.S. Immigration and Customs Enforcement’s Homeland Security
Release No. 14-137