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Thursday 4 September 2014
Former Connecticut Residents Sentenced to Federal Prison for Structuring Embezzled FundsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LYNN A. SCHEUFLER, 36, formerly of Woodstock, Conn., and currently residing in Vermont, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 46 months of imprisonment for structuring hundreds of thousands of dollars in funds that she embezzled from her employer. In addition, Judge Thompson sentenced SCHEUFLER’s husband, CRAIG L. GALLIGAN, 42, to 18 months of imprisonment for his role in the offense. SCHEUFLER and GALLIGAN were also ordered to serve three years of supervised release, during which each are required to perform 150 hours of community service.
According to court documents and statements made in court, SCHEUFLER was the Controller and Chief Financial Officer of a company that owns and operates dining and nightlife venues in the northeastern United States, including locations at Foxwoods Casino and Resort. In that role, she was responsible for filling ATM machines located in the company’s venues out of the cash that managers collected from daily business operations and deposited into nightly deposit bags. Over the course of approximately two years, SCHEUFLER embezzled approximately $2.5 million by taking cash out of the company’s nightly deposit bags and by making unauthorized withdrawals from the company’s cash accounts using the company’s ATM cards.
SCHEUFLER, with the assistance of GALLIGAN, deposited approximately $600,000 in stolen cash into their personal bank accounts. The deposits were illegally structured so that no individual deposit exceeded the $10,000 threshold that would have triggered bank reporting requirements.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
The investigation revealed that SCHEUFLER and GALLIGAN lost a large portion of the embezzled funds gambling at Connecticut’s casinos.
As part of her sentence, SCHEUFLER was ordered to pay a money judgment of $614,390, approximately $47,000 of which has been satisfied from the sale of property.
On March 7, 2014, SCHEUFLER pleaded guilty to one count of illegally structuring financial transactions as part of a pattern of illegal activity. On August 1, 2013, GALLIGAN pleaded guilty to one count of conspiracy to structure financial transactions.
SCHEUFLER and GALLIGAN were arrested on October 10, 2012, and are currently released on bond. They were ordered to report to prison on October 7.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Michael S. McGarry.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Clinton Township Resident Sentenced for Filing False Claims Against the United StatesRead the Press Release
A former Clinton Township resident was sentenced yesterday to 37 months in prison for filing false claims against the United States, U.S. Attorney Barbara L. McQuade announced today.
Ms. McQuade was joined in the announcement by Acting Special Agent in Charge Jarod Koopman, Internal Revenue Service Criminal Investigation.
United States District Judge Gerald Rosen also imposed a three-year term of supervised release on Lamarjoire Pharr and ordered him to pay $962,952 in restitution to the Internal Revenue Service.
According to court records, from September 2009 to March 2012, Pharr prepared and electronically filed 363 fraudulent federal income tax returns. Virtually all of the tax returns were filed in the names of deceased individuals whose personal information Pharr had obtained online at the Ancestry.com website without the knowledge of those individuals or their survivors or estates. The tax returns claimed refunds of more than $1.5 million based on false information relating to dependents, various tax credits (e.g., earned income credit), and tax withholdings. Pharr filed the returns electronically from, among other places, hotels in Detroit, Miami Beach, and Atlanta. Pharr received $962,952 in refunds, which he used to further his career as a musician and music producer. Evidence gathered in the investigation shows that the refunds were also used to pay hotels, casinos, department stores, bars and adult entertainment establishments.
United States Attorney McQuade stated, "We hope that this prosecution will raise public awareness about tax fraud schemes involving returns filed on behalf of unwitting victims, who are often deceased. Criminals troll websites and death notices to find potential victims. Family members should be vigilant in safeguarding the taxpayer information of their loved ones."
“Pharr went to elaborate lengths to not only steal money from the government but also to steal the identity of innocent, and in many cases deceased, individuals. His actions caused serious harm to those individuals or their survivors, as well as the American taxpayer, who ultimately becomes the victim in these illegal activities. This sentence should serve as a warning to others that are considering similar schemes, that the IRS-CI will be very aggressive in investigating identity theft,” said Jarod Koopman, Acting Special Agent in Charge.
The investigation of this case was conducted by Special Agents of the IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorney Stephen Hiyama.Foreign National Indicted for Growing Nearly 10,000 Marijuana Plants in the Trinity Alps WildernessRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Mexican national Horacio Sierra Campos, 25, charging him with conspiracy to cultivate marijuana, cultivation of marijuana, and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on August 7, 2014, United States Forest Service agents and Trinity County Sheriff’s deputies entered a large marijuana cultivation site in the Hobo Gulch area of the Trinity Alps Wilderness, which is National Forest land. Officers located approximately 9,998 marijuana plants and 835 pounds of processed marijuana at the site. Sierra Campos was arrested at the marijuana cultivation site and is in custody. The marijuana cultivation caused significant damage to the land and natural resources of the Trinity Alps Wilderness. Law enforcement observed pesticides, insecticides, hundreds of pounds of trash, and irrigation piping diverting water from a nearby stream to the thousands of marijuana plants under cultivation.
This case is the product of an investigation by the United States Forest Service and the Trinity County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Sierra Campos faces a maximum statutory penalty of 20 years in prison and a $1 million fine for the marijuana cultivation charges and 10 years in prison and a $250,000 fine for the depredation of public lands and resources charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Grand Jury Indicts Two Odessans in Bank Fraud SchemeRead the Press Release
The owner and office manager of Shorts Electric, an Odessa company the provided oilfield and residential electric services, are in federal custody charged in connection with an estimated $400,000 bank fraud scheme announced United States Attorney Robert Pitman, Special Agent in Charge Laurie L. Younger, FDIC Office of Inspector General, Dallas Region, and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
A federal grand jury indictment unsealed yesterday charges 44-year-old Shorts Electric owner Lanny Wayne McDorman and 46–year-old Justine Jane Woods with one count of bank fraud. The indictment alleges that from June 2012 until March 2014, the defendants knowingly defrauded Commercial State Bank (CSB). According to the indictment, Shorts Electric had a Business Manager Reserve Account (BMRA) in which CSB would purchase, at a discount, Shorts Electric accounts receivable and transfer the purchase money into the BMRA, thereby allowing Shorts Electric immediate access to operating funds without having to wait for customers invoices to be paid. Full payment on the purchased Shorts Electric invoices would then be obligated to CSB. The indictment alleges that the defendants created and submitted to CSB numerous fraudulent invoices knowing that those invoices would be uncollectable because they did not represent actual money owed to Shorts Electric.
McDorman and Woods face up to 30 years in federal prison and a maximum $1 million fine upon conviction.
“Working alongside our law enforcement partners, we will continue to focus on finding, stopping, and punishing those who commit fraud schemes that impact our financial institutions,” stated FDIC-OIG Special Agent in Charge Laurie L. Younger.
“Bank fraud has the potential to cause immeasurable damage to our community and the FBI will continue to rigorously investigate these allegations with our law enforcement partners. The arrests of these individuals will send notice that the FBI will continue to protect the community from schemes to defraud financial institutions insured by the FDIC,” stated FBI Special Agent in Charge Douglas E. Lindquist.
The defendants, who were arrested by FDIC-OIG and FBI agents yesterday, remain in federal custody awaiting an arraignment and detention hearing scheduled for 3:00pm on September 9, 2014, before United States Magistrate Judge David Counts in Midland.
Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the September 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Jose Elias Aroca-Lara. Alien in the United States After Deportation. Aroca-Lara, 32, is charged with having unlawfully returned to the United States after being deported in January 20006 at Harlingen, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.
Steven Ray Auten. Bank Robbery. Auten, 30, of Owasso, is charged with robbing the International Bank of Commerce in Owasso by use of a hoax bomb. If convicted, the statutory maximum penalty is 25 years in prison and a $250,000 fine. The Federal Bureau of Investigation is the lead investigative agency.
Raymundo Duran, Jorge Jesus Campos-Rodriguez, Robert Wilkerson, Steven James Hernandez, Thomas Carranza, and Leonel Mercado. Drug Conspiracy. Duran, 29, Mercado, 22, both of Perris, California, Campos-Rodriguez, 25, of Colton, California, Wilkerson, 51, of Riverside, California, Hernandez, 56, of San Bernardino, California, and Carranza, 47, of Carson, California, are charged with a drug conspiracy involving 500 grams or more of methamphetamine from April 2012 to January 2013. If convicted, the statutory penalty is not less than 10 years and up to life in prison and a $10,000,000 fine. The defendants also face entry of a $500,000 money judgment. The Drug Enforcement Administration is the investigating agency.
Jose Bernardo Gonzalez-Ramos. Alien in the United States After Deportation. Gonzalez-Ramos, 28, is charged with having unlawfully returned to the United States after being deported in September 2011 at Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.
Steven Edward Johnson and Chailla Michelle Johnson. Possession of Methamphetamine with Intent to Distribute. Steven Johnson, 41, and Chailla Johnson, 33, both of Tulsa, are charged with possessing 50 grams or more of methamphetamine with intent to distribute. If convicted, the statutory penalty is not less than five years and not more than 40 years in prison and a $5,000,000 fine. U.S. Immigration and Customs Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigating agencies.
Agustin Lechuga-Munoz. Alien in the United States After Deportation. Lechuga-Munoz, 32, is charged with having unlawfully returned to the United States after being deported in September 2010 at Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.
Victor Lozaria-Montoya. Alien in the United States After Deportation.Lozaria-Montoya, 22, is charged with having unlawfully returned to the United States after being deported in April 2013 at Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.
Jessica Lynn Nealis. Possession of Methamphetamine with Intent to Distribute. Nealis, 27, of Springfield, Missouri, is charged with possessing methamphetamine with intent to distribute. If convicted, the statutory maximum penalty is 20 years in prison and a $1,000,000 fine. The defendant also faces entry of a money judgment and forfeiture of seized currency. The Indictment is the result of a joint investigation by the Eastern Shawnee Tribal Police and the Bureau of Indian Affairs-Office of Justice Services.
Roberto Perez-Ruano. Alien in the United States After Deportation.Perez-Ruano, 33, is charged with having unlawfully returned to the United States after being deported in September 2011 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. U.S. Immigration and Customs Enforcement is the investigative agency.
Corry Donta Purify. Felon in Possession of a Firearm and Ammunition and Maintaining a Drug Involved Premise. Purify, 38, of Tulsa, is charged with unlawfully possession of a .40 caliber pistol and ammunition after prior felony convictions and with maintaining a drug involved premise. If convicted, the statutory maximum penalty for the firearm and ammunition charge is 10 years in prison and a $250,000 fine; and for maintaining a drug involved premise charge is 20 years in prison and a $1,000,000 fine. The defendant also faces forfeiture of the firearm and ammunition. The Federal Bureau of Investigation is the investigating agency.
Truong Son Do, Hong Van Thi Nguyen, and Vinh Nguyen. Drug Conspiracy, Possession of Marijuana with Intent to Distribute, and Receipt of a Firearm While Under Indictment. Do, 30, Hong Van Thi Nguyen, 29, and Vinh Nguyen, 26, all of Broken Arrow, are charged with drug conspiracy involving marijuana and with possession of less than 50 kilograms of marijuana with intent to distribute. In addition, Do is charged with receiving an AK-47 while under Indictment in Tulsa County District Court. If convicted, the statutory maximum penalty for each count is five years in prison and a $250,000 fine. The defendants face entry of a money judgment and forfeiture of the firearm. The Federal Bureau of Investigation is the investigating agency.
Aaron Grant Washington. Distribution of Methamphetamine. Washington, 39, of Tulsa, is charged with distributing methamphetamine. If convicted, the statutory maximum penalty is 20 years in prison and a $1,000,000 fine. The indictment is the result of a joint investigation by the Osage Nation Police Department and the Bureau of Indian Affairs-Office of Justice Services.
Federal Fugitive Extradited from Argentina Sentenced to Three Years in Prison for Gun OffenseRead the Press Release
EUGENE, Ore. – Patrick Champlin Tansy, 50, was sentenced on September 2, 2014, to thirty-seven months in federal prison after pleading guilty to felon in possession of a firearm.
On November 7, 1996, Tansy and another man were cutting firewood on federal land near Lapine, Oregon. Law enforcement officers from the U.S. Bureau of Land Management, U.S. Forest Service and local police made contact with the two men after receiving information that trees in the area were being cut without proper permits.
In the course of conducting a search for officer safety, a .22 caliber pistol was discovered in Tansy’s back pocket. Police knew from previous contacts with Tansy that he was a convicted felon and they arrested him for unlawful possession of a firearm.
After Tansy’s arrest, federal authorities widened the investigation and a federal grand jury in Eugene later indicted Tansy for multiple counts of felon in possession of a firearm, as well as charges relating to the unlawful taking of timber on public land. Tansy had previously been convicted in California in 1989 on a felony narcotics charge.
In April 2002, Tansy pled guilty to one count of felon in possession of a firearm and was allowed to remain out of custody while awaiting sentencing. Tansy failed to appear for his sentencing hearing in Eugene and a warrant was issued for his arrest. Authorities later learned that Tansy fled Oregon and moved his family to Buenos Aires, Argentina. While in Argentina, Tansy assaulted his wife during a domestic dispute and was ultimately convicted and sentenced to prison. He was released to U.S. authorities in January 2014 in response to a request for extradition.
The Bureau of Land Management, U. S. Forest Service and U. S. Marshal Service worked with state and local police on the investigation. Assistant U.S. Attorney William “Bud” Fitzgerald prosecuted the case.
Federal and State Authorities Arrest 22 in Connection with Austin Area Steroid Distribution OperationRead the Press Release
In the Austin area today, federal and state authorities arrested 22 individuals, including ringleaders 54–year-old Timothy John Bruner of Leander, Texas, and 23-year-old Ryan Robert Rowland of Round Rock, Texas, in connection with a steroid distribution operation announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Six of those arrested were charged by federal criminal complaints unsealed today; the remaining 16 individuals face state charges. In addition to Bruner and Rowland, those charged by federal criminal complaint include: 42-year-old Ronald Marion Butsch of Austin; 47-year-old Dan Lee of Austin; 49-year-old Timothy John Moore of Austin; and, 58-year-old Don Glen Zachary of Austin.
Each is charged with conspiracy to possess with intent to distribute a controlled substance. The criminal complaints allege that since January 2014, the defendants conspired to distribute more than 1,000 dosage units of steroids in tablet form (Anavar and Winstrol) and over 200 10cc vials of steroids in liquid form (Testosterone, Deca Durabolin and Trenbolone).
“The success of Operation Blue Juice exemplifies the outstanding cooperation and coordination among federal, state and local law enforcement agencies. DEA has worked closely with our law enforcement partners in the state of Texas and around the country in order to enhance the impact on this drug trafficking organization while increasing the quality of life in the surrounding communities of Austin,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration-Houston Field Division.
Upon conviction, the defendants face up to 20 in federal prison and a maximum $250,000 fine.
During this eight-month-long operation, investigators conducted several controlled purchases of steroids from Bruner and Rowland. To date, authorities have seized significant amounts of steroids, $300,000 in U.S. Currency and other assets in connection with this investigation.
These charges and arrests resulted from an investigation conducted by the Drug Enforcement Administration, Texas Department of Public Safety, Cedar Park Police Department, Austin Police Department, Williamson County Sheriff’s Office and the Williamson County Constable’s Office—Pct. 2. Assistant United States Attorney Mark Marshall is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Father and Son Charged with Illegally Importing Counterfeit Sports JerseysRead the Press Release
An indictment was filed today charging Shawn Robinson, 30, of Enola, Pennsylvania, and Neil Robinson, 62, of Bensalem, PA, with conspiracy to trafficking in and illegally import counterfeit sports jerseys and trafficking in counterfeit goods, announced United States Attorney Zane David Memeger. Neil Robinson is also charged with smuggling.
The indictment alleges that, between approximately September of 2007 and July 2, 2014, the father and son imported and sold counterfeit sports jerseys that they bought from unauthorized manufacturers in China. These included baseball, football, hockey, and basketball jerseys, and each had a counterfeit trademark of the sports league on the jersey. The indictment alleges that the Robinsons imported more than 8,500 counterfeit sports jerseys and paid the unauthorized manufacturers approximately $200,000 for these products.
If convicted, Shawn Robinson faces a maximum possible sentence of 15 years in prison, a fine of up to $2.25 million, up to three years of supervised release, restitution, forfeiture, and a $200 special assessment; Neil Robinson faces a maximum possible sentence of 175 years in prison, a fine of up to $15.5 million, up to three years of supervised release, restitution, forfeiture, and a $1,300 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Executives at Youngstown Construction Company Sent to Prison for Tax ConvictionRead the Press Release
Two officials at a Youngstown construction and excavation company were each sentenced to nearly two years in prison for willfull failure to pay taxes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Scott Bonamase, age 49, of Streetsboro, Ohio, and David Bonamase, age 53, of Canfield, Ohio, were sentenced to 21 months in prison after they avoided paying more than $279,000 in taxes, according to the indictment.
The charges were in connection with their operation of A. Bonamase Contracting, Inc., which employed between 10 to 25 employees for the years 2006 through 2009. During that time period, Scott Bonamase willfully under-reported employee gross wages to the Internal Revenue Service and Scott and David Bonamase omitted payments to employees in the books and records of the company, according to court documents.
A. Bonamase Contracting, Inc. had contracts with government agencies that required certified payroll reports to verify that they were paying the prevailing wage. Scott and David Bonamase willfully falsified, signed, and submitted certified payroll reports to the government. Scott and David Bonamase certified that their employees were being paid the prevailing when, in fact, they were paid less, according to court documents.
The case results from an investigation conducted by the United States Department of Labor and Department of Housing and Urban Development, Office of the Inspector General and the Internal Revenue Service, Criminal Investigation agents. This case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.
Eighteen Individuals Charged with Stealing More Than $1 Million as Part of Operation Walking DeadRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the filing of federal charges against individuals in 18 separate cases. These individuals have been charged with stealing more than $1 million in federal benefits to which they were not entitled. The penalty for stealing federal benefits or making false statements is up to 10 years in federal prison per count. These Middle District of Florida cases arose as the result of Operation Walking Dead, an operation initiated and overseen by the Social Security Administration - Office of Inspector General with assistance from multiple other federal and local law enforcement agencies.
These cases were investigated by the Social Security Administration – Office of Inspector General, the United States Marshals Service, the United States Secret Service, the Department of Health and Human Services - Office of Inspector General, the Department of Treasury - Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Tampa Police Department, the Orange County Sheriff’s Office, the Lake County Sheriff’s Office, and the Suwannee County Sheriff’s Office. These cases will be prosecuted by Assistant United States Attorneys throughout the Middle District of Florida, including Tama Koss Caldarone, Jeffrey Michelland, Joseph Schuster, David Haas, James Mandolfo, Robert Bodnar, Shawn Napier, Embry Kidd, David Haas, Andrew Searle, Bruce Ambrose, Amanda Kaiser, Adam Saltzman, and Stacie Harris.
An information and an indictment are merely formal charges that a defendant has committed a violation of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
Operation Walking Dead Case SummariesDonna Bennett (68, Dunedin) has been charged with theft of government funds. According to her plea agreement, from June 3, 2009 through November 1, 2013, Bennett fraudulently collected approximately $60,581.00 of her mother’s Social Security benefits after her mother’s death on May 19, 2009. At the time of her mother’s death, Bennett was an authorized user on her mother’s account, which received Social Security benefit payments. Bennett transferred the Social Security funds from her mother’s account to another account that Bennett controlled.
James Birney (47, Oldsmar) has been charged with theft of government funds. According to his plea agreement, from March 2008 through February 2014, Birney fraudulently collected approximately $95,556 of his mother’s Social Security benefits after her death in February 2008. At the time of his mother’s death, Birney had an ATM card for the account where his mother’s Social Security benefit payments were direct-deposited. After his mother’s death, Birney made ATM withdrawals of his mother’s Social Security benefits from his mother’s bank account.
Linda Byerly (37, Tampa) has been charged with theft of government funds. According to her plea agreement, beginning in June 2012, and continuing through January 2013, Byerly defrauded the Social Security Administration of $9,749.73. Byerly was a recipient of Social Security benefits. The government’s investigation revealed that Byerly reported to the Social Security office that she had not received her monthly payment. She then received a paper replacement check. Byerly took the account number from the bottom of the Social Security replacement check and placed that account number on fraudulent checks, and then wrote checks for her personal expenses against the Social Security account. The fraudulent checks totaled approximately $8,574.73. A further investigation by the Social Security Administration revealed that Byerly lied about her living arrangements, thereby resulting in the payment of $1,175.00 in Social Security benefits payments to which she was not entitled.
Mary Francenia Campbell (58, Tampa) has been charged with theft of government funds. According to the indictment, from May 2007 through March 2014, Campbell fraudulently collected approximately $81,399.40 of her mother’s Social Security benefits after her mother’s death in April 2007. The Social Security Administration has recovered $19,064.33 of the funds fraudulently paid to Campbell.
Sewan Chukes, aka Sewan Barner, (41, Sylacauga, Alabama) has been charged with theft of government funds. According to the indictment, Chukes received $34,700 in Supplemental Security Income benefits for her minor child when she was not entitled to the benefits because she was no longer had custody of her child and did not provide for her care and support.
Etheal Clark (46, Naples) has been charged with one count of theft of government property, and two counts of making false statements. According to the indictment, Clark
converted to her own use Social Security benefits that were issued to another individual, after that individual passed away on April 25, 2003. The Social Security Administration has determined the loss in this matter to be approximately $124,529.40.Lonnie Leroy Hicks (68, Estero) has been charged with theft of government funds. According to the indictment, Hicks applied for and received Social Security Administration benefits for his son while his son resided in Mexico with his mother. Hicks unlawfully collected Social Security disability payments for his son as a representative payee and concealed the fact that his son was not living with him. As a result of the fraud, Hicks secured $76,204.00 in SSA payments to which he was not entitled.
Lisa Iaeger, aka Lisa Iaeger-Ewing (37, Live Oak) has been charged with theft of government funds. According to the indictment, Iaeger received $26,050 in Supplemental Security Income benefits for her minor child when she was not entitled to the benefits because she no longer had custody of her child and did not provide for his care and support.
Frances S. Kitsock-Harbot (61, Altamonte Springs) has been charged with theft of government funds. According to the indictment, Kitsock-Harbot collected $91,051 in Social Security Retirement Insurance Benefits which she was not entitled to receive.
Mona Lesa Mackey (57, Bonita Springs) has been charged with theft of government funds. Mackey concealed the fact that her husband died and continued receiving his Social Security Administration (SSA) disability benefits after his death. As a result of the fraud, Mackey secured $139,919.47 in SSA payments to which she was not entitled.
Bilma Ruth Gonzalez Maldonado, a/k/a Bilma Ruth Fontanez, (51, Orlando) has been charged with theft of government funds. According to the indictment, beginning in March 2001 and continuing until August 2012, Gonzalez Maldonado stole $51,809 from the United States government by claiming benefits that did not belong to her.
Allena McHaffie (57, Tavares) has been charged with theft of government funds. According to the indictment, from August 2004 to January 2014, McHaffie fraudulently received $103,411 in Social Security benefits that were intended for her deceased mother.
Oveda Miller (51, Mt. Dora) has been charged with theft of government funds. According to the indictment, Miller collected more than $86,880 in benefits to which she was not entitled.
Irene Roberts (69, Lakeland) has been charged with theft of government funds and making false statements. According to the indictment, from January 2000 through December 2013, Roberts fraudulently collected approximately $75,986.00 of Supplemental Security Income benefits by providing false information about her marital status, living arrangements, and household income to the Social Security Administration.
Ruby Smith (61, Tampa) has been charged with theft of government funds. According to the indictment, from June 2004 and continuing through September 2012, Smith fraudulently collected approximately $37,211.46 of Supplemental Security Income benefits by providing false information about her marital status, living arrangements, and household income to the Social Security Administration.
Geneva Swain (66, Orlando) has been charged with theft of government funds. According to the indictment, Swain received benefits from the Social Security Administration to which she was not entitled.
Amanda Wheeler, aka Amanda Smyth (30, Orlando) has been charged with theft of government funds. According to the indictment, Wheeler received $51,564.00in Social Security Widow’s Benefits in the name of a beneficiary who was deceased. Because the beneficiary was deceased, Wheeler was not entitled to the benefits.
Robin K. Wisniewski, a/k/a "Robin Sabatine," (53, Fort Myers) has been charged with theft of government funds and concealment of an event that would have affected the ability to obtain Supplemental Security income. According to the superseding indictment, Wisniewski continued receiving Social Security Administration Retirement and Survivors Insurance benefits payments paid to her mother, after her mother’s death. Wisniewski secured at least $25,793.41 in SSA payments to which she was not entitled. Wisniewski also was a Supplemental Security Income recipient. Wisniewski did not disclose the income she received from her deceased mothers’ widow benefit, and also failed to inform SSA that she was employed and received wage income from a CPA in Fort Myers. The total loss amount in this case is $38,599.41.
Edgewood Man Sentenced for Violating Federal Wildlife Laws Prohibiting Sale of Eagle FeathersRead the Press Release
ALBUQUERQUE – Dale N. Smith, 60, of Edgewood, N.M., was sentenced today for violating the Migratory Bird Treaty Act by selling or offering to sell Bald Eagle feathers. Smith, who has been in custody since April 2014, received a sentence of time served, but will remain in federal custody until Dec. 9, 2014, for violating his parole by committing the crime of conviction in this case.
Smith was arrested on April 10, 2014, on a criminal complaint charging him with violating the Migratory Bird Treaty Act, the Lacey Act and the Bald and Golden Eagle Protection Act in March 2014, in Santa Fe County, N.M. Smith was indicted on May 7, 2014, and charged with three counts of violating the Migratory Bird Treaty Act and one count of violating the Lacey Act.
Smith, a member of the Lakota/Sioux Tribe of the Hunkpapa Band of Lakota, was charged as the result of an undercover investigation by the U.S. Fish and Wildlife Service that began on March 7, 2014, and concluded with Smith’s arrest on April 10, 2014. The investigation was initiated after the U.S. Fish and Wildlife Service received information that Smith had posted on an Internet website photographs of Indian arts and crafts which appeared to include federally protected feathers.
On March 7, 2014, an undercover agent contacted Smith and inquired about the feathers on one particular piece of art. Smith responded that the feathers were Bald Eagle feathers and offered to sell the artwork for $1,000. On March 20, 2014, Smith sold a feather fan containing Bald Eagle feathers and a medicine wheel containing Bald Eagle feathers to the undercover agent for $1,000. On March 20, 2014 and again on March 24, 2014, Smith offered to sell a headdress with bald eagle feathers to the undercover agent for $2,000.
On June 25, 2014, Smith pled guilty to one count of violating the Migratory Bird Treaty Act, and admitted selling a feather fan with Bald Eagle feathers to an undercover agent on March 20, 2014. In his plea agreement, Smith acknowledged that the Bald Eagle qualifies as a migratory bird and that he violated the Migratory Bird Treaty Act when he sold the Bald Eagle feather fan to the undercover agent.
Bald Eagles are amongst more than 1000 wild birds protected under the federal wildlife laws, including the Migratory Bird Treaty Act, the Bald and Golden Eagle Protection Act, and the Lacey Act. Among other things, these laws prohibit the possession, use, and sale of the feathers or other parts of federally protected birds, as well as the unauthorized killing of these birds, to help ensure that the Eagle and other bird populations remain healthy and sustainable.
This case was prosecuted by Assistant U.S. Attorney Paul H. Spiers. The case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement with assistance from the New Mexico Game and Fish Department, Homeland Security Investigations, the U. S. Marshals Service, and Santa Fe County Sheriff's Office.
The mission of the U.S. Fish and Wildlife Service is to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov. Connect with its Facebook page at www.facebook.com/usfws, follow its tweets at www.twitter.com/usfwshq, watch its YouTube Channel at http://www.youtube.com/usfws and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq.Duneweg Man Pleads Guilty to Sexually Exploiting 4-year-old Child, Faces at least 15 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Duneweg, Mo., man pleaded guilty in federal court today to sexually exploiting a 4-year-old child to produce child pornography.
Tony Lasiter, 32, of Duneweg, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in an Oct. 1, 2013, federal indictment.
According to court documents, Lasiter used his cell phone to take nude photos of a 4-year-old child (identified in the indictment as “Jane Doe”) while she was in the bathtub and while she was lying in a bed with someone touching her in a sexual manner. Lasiter downloaded the photos to his laptop computer, then transferred the files to an SD card. The files were discovered when the victim’s father noticed the SD card in the computer and opened the files, according to court documents. The photos were taken in August 2013.
Under federal statutes, Lasiter is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force, the Duneweg, Mo., Police Department, the Sarcoxie, Mo., Police Department and the Jasper County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."District Man Sentenced to More Than 11 Years in Prison for Fatally Stabbing Fellow Marine-Attack Took Place in April 2012 in Southwest Washington-Read the Press Release
WASHINGTON – Michael Poth, 22, of Washington, D.C., was sentenced today to 11 years and three months in prison after earlier being found guilty of manslaughter while armed in the fatal stabbing of a fellow U.S. Marine Corps enlistee, U.S. Attorney Ronald C. Machen Jr. announced.
Poth was found guilty by a jury in December 2013, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, Poth will be placed on five years of supervised release.
According to the government’s evidence, Poth and the victim, Philip Bushong, 24, were active duty U.S. Marine Corps enlistees. At the time of the incident, the defendant was a private first class and was assigned to the Marine Barracks Washington, while the victim, a lance corporal, was a few days away from receiving an honorable discharge and was in the District of Columbia visiting friends. The men did not know one another. In the early morning hours of April 21, 2012, both were in the area near the 700 block of Eighth Street SE, near the Marine Barracks. Multiple bars and restaurants are in the area.
Poth walked by Lance Cpl. Bushong, who was with a group of friends. Shortly after he passed by the group, Lance Cpl. Bushong yelled something at the defendant. Poth took offense, took out a small pocket knife from his pocket, and waved it in the air toward Lance Cpl. Bushong and his group of friends. Poth also muttered out loud that he was going to “cut someone’s (expletive) lungs out.”
About 10 minutes later, Poth, after circling the block, aggressively walked toward Lance Cpl. Bushong, who was still in the area talking to a friend. Poth walked up to Lance Cpl. Bushong, uttered an anti-gay slur, and then kept walking. Lance Cpl. Bushong proceeded to follow Poth, and the two began to argue. As Lance Cpl. Bushong drew back his fist to punch Poth, Poth stated, “I’m going to stab you.” He then drew his knife and stabbed Lance Cpl. Bushong once in chest. Lance Cpl. Bushong died about two hours later.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department and the Naval Criminal Investigative Service, and thanked the U.S. Marine Corps for their cooperation. He also expressed appreciation for the work of the District of Columbia Department of Forensic Sciences and the District of Columbia Office of the Chief Medical Examiner. In addition, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Sandra Lane and Alesha Matthews; Victim/Witness Advocate Tamara Ince; David Foster, Katina Adams-Washington, and La June Thames, all of the Victim Witness Assistance Unit, and Litigation Technology Specialists Will Henderson and Paul Howell. Finally, he praised Assistant U.S. Attorney Michael Liebman, who prosecuted the case.
14-193District Man Pleads Guilty to Aggravated Assault, Admits Sexually Assaulting His WifeDefendant Shocked Wife with TaserRead the Press Release
WASHINGTON – A 49-year-old man, of Washington, D.C., pled guilty today to a charge of aggravated assault stemming from a recent attack in which he shocked his wife with a Taser at their apartment, U.S. Attorney Ronald C. Machen Jr. announced.
The man, who is not identified here to protect the privacy of the victim, entered the guilty plea in the Superior Court of the District of Columbia. The Honorable Russell F. Canan scheduled sentencing for Nov. 7, 2014.
According to the government’s evidence, on Aug. 3, 2014, the defendant became angry with his wife and began shocking her with a Taser, knocking her to her knees in the bedroom of their Southeast Washington apartment. He then pushed her onto the floor, sat on her chest and continued shocking her face and head. When her head began swelling up, the defendant left the room to get ice and a towel. Upon returning to the bedroom, he discovered that she was trying to crawl away. He then went to another room, retrieved a baseball bat, and began striking her in the head. He pulled the victim to her feet and began punching her in the face. Finally, he ordered the victim onto her bed, where he sexually assaulted her.
The victim suffered multiple injuries, including a fractured cheek. She pleaded with her husband to call an ambulance. Fearing that she’d report what he’d just done, he refused to do so. After the victim promised not to tell on him, he agreed to drive her to the hospital. At the hospital, when the defendant stepped away briefly, the victim reported what he had done to her. An officer with the Metropolitan Police Department, who was at the hospital on another matter, was notified and the defendant was arrested.
In announcing the plea, U.S. Attorney Machen praised the work of members of the Metropolitan Police Department’s Sexual Assault Unit. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key and Victim/Witness Advocate Veronica Vaughan. Finally, he commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
14-194Denzel Watson and Jessica Elder Sentenced for Attempted Straw Purchase of A FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Denzel Watson of Brooklyn, New York was sentenced today for aiding and abetting the making of false statements in the attempted acquisition of a firearm. Chief United States District Judge Christina Reiss, sitting in Burlington, sentenced Watson to a four-month term of imprisonment, to be followed by two years of supervised release, which includes four months of location monitoring.
According to court documents, on February 20, 2013, ATF agents responded to the Powderhorn gun shop in Williston after receiving a report of a straw purchase in progress. It is a violation of federal law for an individual prohibited from purchasing a firearm to have another purchase the firearm for him. Upon responding to the scene, agents learned that Jessica Elder of Colchester was inside the store attempting to buy a .357 caliber handgun while another individual sat in a car in the adjacent parking lot. Agents approached Elder and the waiting individual, Denzel Watson, when Elder returned to the vehicle. Subsequent investigation revealed that Watson had provided Elder with over $300 to purchase him the gun at Powderhorn. Due to law enforcement intervention, Watson and Elder were unable to complete the firearm transaction. One month after his encounter with ATF agents in Vermont, the New York City Police Department arrested Watson and charged him with attempted criminal possession of a weapon in connection with his possession of a firearm in Brooklyn. Watson sustained a misdemeanor conviction in connection with his New York case.
On June 17, 2014, Chief Judge Reiss sentenced Elder to a time-served sentence of approximately six months and three weeks, to be followed by two years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kevin J. Doyle handled the case for the government. Defense counsel is David F. Kidney of Rubin, Kidney, Myer & Vincent in Barre.
Defendant Kenneth Frederick Calvo Sentenced in U.S. District CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that KENNETH FREDERICK CALVO was sentenced this week in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood, to 108 months incarceration, and three years of supervised release.
Defendant Calvo pled guilty on December 17, 2013 to Attempted Possession of Methamphetamine with Intent to Distribute, in violation of Title 21 U.S.C. Section 841(a)(1). Defendant Calvo received a package which contained 214.9 grams of methamphetamine hydrochloride. The drug was sent from California and Defendant Calvo intended to distribute the drug on Guam. The package was detected and intercepted by the United States Postal Service.
United States Attorney Limtiaco thanks the United States Postal Service for their vigilance in the detection of drugs which are mailed to Guam through the United States Postal system. Credit is also given to Homeland Security Investigations who participated in the investigation. The case was handled by Assistant U.S. Attorney R. San Nicolas.Daughter of Breakthrough Pain Therapy Center Owners Sentenced to Serve Eighteen Years in PrisonRead the Press Release
KNOXVILLE, Tenn. – On Sept. 4, 2014, Wendi Henry, 45, of Blount County was sentenced to serve 216 months in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge.
After a jury trial in October 2013, Henry was convicted of conspiracy to distribute oxycodone and other controlled substances in conjunction with her role in the operation of Breakthrough Pain Therapy Center in Maryville. Henry’s parents, Randy and Sandra Kincaid, the co-owners of Breakthrough, and her brother Dustin Morgan, were also convicted and previously sentenced.
These charges and subsequent convictions resulted from a lengthy investigation by the Internal Revenue Service – Criminal Investigation, Fifth Judicial Drug Task Force, and Drug Enforcement Administration. The pain clinic ceased operations when it was raided by federal and local law enforcement agents in December 2010, where agents seized significant quantities of prescription narcotic pain pills, firearms, and nearly $700,000 in cash.
“Thanks to the cooperative efforts of the federal, state and local agencies who investigated this case, all of those involved received lengthy sentences for their criminal conduct,” said U.S. Attorney Bill Killian.
Assistant U.S. Attorneys Jennifer Kolman and Frank M. Dale, Jr. represented the United States during the trial and sentencing.
Covington Man Sentenced to 20 Years for Distribution of Heroin Resulting in DeathRead the Press Release
COVINGTON, KY - A Covington, Ky., man, who has previously admitted in federal court that he sold heroin that resulted in the death of one of his customers, was sentenced today to 20 years in prison.
U.S. District Judge David L. Bunning sentenced 29 year-old Timothy Tingle-Brown for distributing heroin that resulted in death. Under federal law, Tingle-Brown must serve at least 85 percent of his prison sentence and will be on supervised release for three years following the completion of his prison term.
Tingle-Brown admitted to selling heroin to a man at an apartment in Taylor Mill, Ky., on April 20, 2013. The man subsequently died from an overdose from the heroin that Tingle-Brown had sold to him.
In June of this year, Tingle-Brown pleaded guilty to the charge shortly after the start of his trial. He was indicted in September 2013.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and James V. Allen, Acting Special Agent in Charge, Detroit Field Division, Drug Enforcement Administration, jointly announced the sentence.
The investigation was conducted by the Cincinnati Resident Office of the Drug Enforcement Administration, the Taylor Mill Police Department, and the office of the Kenton County Commonwealth Attorney. Assistant U.S. Attorney Tony Bracke represented the federal government in this matter.
Coos County Man Sentenced to 27 Months for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
EUGENE, Ore. – On September 4, 2014, Richard Walsh Curtis, 44 years, of Coos Bay, Oregon, was sentenced by U.S. District Chief Judge Ann Aiken to 27 months in federal prison for unlawful possession of a firearm and ammunition. Upon his release from prison, Curtis will be on supervised release for three years.
On August 18, 2012, officers responded to a rural property near Coos Bay because a caller had reported that Curtis, a known felon, was shooting a firearm into the trees. Upon arrival, officers encountered Curtis and seized a loaded .22 caliber revolver from him. Officers learned that Curtis had previously shown the firearm to a young child and had a history of terrorizing the neighbors – for instance, one neighbor reported Curtis had used a chainsaw to cut open his house door and then assaulted him. Curtis has prior felony convictions for assault in the fourth degree constituting domestic violence, felon in possession of a firearm, and possession of a controlled substance.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oregon State Police, and the Coos County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Colombian National Pleads Guilty to Kidnapping and Murder of DEA Agent Terry WatsonRead the Press Release
ALEXANDRIA, Va. – A Colombian man extradited to the Eastern District of Virginia pleaded guilty today for his involvement in the kidnap and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson in Bogotà, Colombia, on June 20, 2013.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“Special Agent Watson gave his life in the service of his country, and we will do everything in our power to honor his sacrifice,” said Attorney General Holder. “This conviction is a critical step forward. But while this action represents the first measure of justice for his kidnapping and murder, it will not be the last. The Department of Justice will not rest until all those involved in this senseless act of violence have been held to account for their crimes. Our nation will never yield in the protection and defense of its citizens. And we will continue to demonstrate that anyone who seeks to harm an American will be found, will be prosecuted, and will be brought to justice.”
Julio Estiven Gracia Ramirez, 31, pleaded guilty before U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Gracia Ramirez faces a maximum penalty of any term of years in prison when he is sentenced on Dec. 5, 2014.
In a statement of facts filed with the plea agreement, Gracia Ramirez admitted that he and his conspirators agreed to conduct a “paseo milionario” or “millionaire’s ride” in which victims who were perceived as wealthy were lured into taxi cabs, kidnapped and then robbed. Gracia Ramirez admitted that he targeted Special Agent Watson and picked him up outside a Bogotà restaurant in his taxi. Soon after, two conspirators entered Gracia Ramirez’s taxi, and one used a stun gun to shock Special Agent Watson and the other stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.
Six other defendants have been charged in an indictment in the Eastern District of Virginia for their alleged involvement in the murder of Special Agent Watson. Gerardo Figueroa Sepulveda, 39; Omar Fabian Valdes Gualtero, 27; Edgar Javier Bello Murillo, 27; Hector Leonardo Lopez, 34; and Andrés Alvaro Oviedo-Garcia, 22, are each charged with second degree murder, kidnapping and conspiracy to kidnap. Oviedo-Garcia is also charged with assault. Wilson Daniel Peralta-Bocachica, 31, is charged for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson. Trial is set for Jan. 12, 2015.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
Co-owner of Defunct Company Admits Defrauding Service-Disabled Veteran-Owned Small Business ProgramRead the Press Release
KANSAS CITY, KAN. - The co-owner of a defunct Missouri construction company pleaded guilty Wednesday to defrauding a federal program that set aside contracts for businesses owned by service-disabled veterans, U.S. Attorney Barry Grissom said.
Michael J. Parker, 40, Blue Springs, Mo., pleaded guilty to one count of conspiracy to commit fraud against the United States, one count of major program fraud and one count of wire fraud. In his plea, he admitted that he and his father, co-defendant, Warren K. Parker, made false claims in order for their company, Silver Star Construction LLC of Blue Springs, Mo., and Stilwell, Kan., to obtain more than $6.7 million in contracts from the Veterans Administration and more than $748,000 in contracts from the Department of Defense. The contracts were awarded under the Service-Disabled Veteran-Owned Small Business Program.
After an extensive investigation, federal agents determined that in fact Warren Parker never was classified as a service-disabled veteran by the Veterans Administration or the Department of Defense.
Sentencing will be set for a later date. Both parties have agreed to recommend a sentence of 51 months in federal prison and restitution.
Co-defendants include:
Grissom commended the Small Business Administration's Office of Inspector General; the Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division and the General Services Administration's Office of Inspector General; and Assistant U.S. Attorney Tris Hunt for their work on the case.
Warren K. Parker, who was sentenced to 87 months.
Mary Parker, who is set for jury trial Oct. 6.
Thomas Whitehead, who is awaiting sentencing.
Silver Star Construction, LLC, which is set for trial Oct. 6.Claysville Man Sentenced for Firearms OffenseRead the Press Release
PITTTSBURGH - A Washington County man has been sentenced in federal court to nine months imprisonment, 12 months supervised release, and forfeiture of firearms on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Charles Merle Watson, 53, of Claysville, Pa.
According to information presented to the court, on Feb. 11, 2011, and again on June 15, 2011, Watson possessed and/or transferred a machine gun at his Washington County home which he had converted from a semi-automatic firearm. Watson can be observed handling, firing, and transferring possession of the firearms on a hidden camera.
Prior to imposing sentence, Judge Bissoon stated that Watson knew his conduct was unlawful due to his employment at a sporting goods store and was conducting an “unlawful side business,” adding that Watson let his enthusiasm cloud his judgment.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Watson.
Chattanooga Men Sentenced in Upper East Tennessee for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Ladarius Lebron Blunt, 27, of Chattanooga, Tenn., and Jeremy Jermaine Whatley, 29, also of Chattanooga, Tenn., were sentenced on Sept. 3, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 188 months and 60 months, respectively, in federal prison. Both Blunt and Whatley were previously convicted of conspiracy to distribute crack cocaine.
Beginning in 2011, law enforcement began investigating a large-scale crack cocaine conspiracy originating out of Chattanooga. As part of the conspiracy, numerous individuals, including Blunt and Whatley, trafficked kilogram quantities of crack cocaine to Johnson City for resale. Private vehicles, taxi cabs, and public transportation were commonly used to transport the drugs. Many of the coconspirators had ties to street gangs based in Chattanooga, including the Rollin’ 60’s Crips and the Woodlawn Crips. Upon arrival in Johnson City, Blunt, Whatley and others would distribute their drugs, return to Chattanooga with their drug sale proceeds, purchase additional drugs, and repeat the cycle.
As part of the investigation, law enforcement conducted a series of controlled drug transactions with Blunt, Whatley and other coconspirators. On two separate occasions, Blunt sold crack cocaine to individuals working on behalf of law enforcement. On two other occasions, Whatley did the same. Subsequent police actions found both Blunt and Whatley to be in possession of crack cocaine with intent to distribute.
One coconspirator remains to be sentenced in Greeneville. Numerous others are being prosecuted in Chattanooga.
This long term investigation was the product of a partnership between the Johnson City, Tennessee Police Department; Chattanooga, Tennessee Police Department; Federal Bureau of investigation; and the Drug Enforcement Administration. Assistant United States Attorney Nick Regalia represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
This case was also a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Charlotte Man Sentenced to 15 Years in Prison on Federal Gun OffenseRead the Press Release
CHARLOTTE, N.C. – On Wednesday, September 3, 2014, U.S. District Judge Robert J. Conrad, Jr. sentenced Reginald Lashawn Lockhart, 30, of Charlotte to serve to 180 months in prison to be followed by five years of supervised release for a federal gun offense, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Rodney D. Monroe of the Charlotte Mecklenburg Police Department (CMPD).
According to filed court documents and statements made in court, on September 12, 2012, CMPD police officers received information that Lockhart was in possession of two stolen firearms. Court records indicate that when law enforcement searched Lockhart’s Charlotte residence they found a Smith & Wesson, .40 caliber pistol, which was loaded with 15 rounds. According to court records and court proceedings, law enforcement later determined that the pistol was stolen. Court records show that Lockhart had six prior convictions for robbery with a dangerous weapon and two prior convictions for assault with a deadly weapon inflicting serious injury. Lockhart’s prior convictions prohibit him from carrying a firearm. Lockhart pleaded guilty in April 2013 to possession of a firearm by a convicted felon and he was sentenced as an armed career criminal.
Lockhart has been in federal custody since November 2012. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and CMPD. The case was prosecuted by Assistant United States Attorney Robert J. Gleason of the U.S. Attorney’s Office in Charlotte.
Charlotte Man Sentenced to 15 Years in Prison on Federal Gun OffenseRead the Press Release
CHARLOTTE, N.C. – On Wednesday, September 3, 2014, U.S. District Judge Robert J. Conrad, Jr. sentenced Reginald Lashawn Lockhart, 30, of Charlotte to serve to 180 months in prison to be followed by five years of supervised release for a federal gun offense, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Rodney D. Monroe of the Charlotte Mecklenburg Police Department (CMPD).
According to filed court documents and statements made in court, on September 12, 2012, CMPD police officers received information that Lockhart was in possession of two stolen firearms. Court records indicate that when law enforcement searched Lockhart’s Charlotte residence they found a Smith & Wesson, .40 caliber pistol, which was loaded with 15 rounds. According to court records and court proceedings, law enforcement later determined that the pistol was stolen. Court records show that Lockhart had six prior convictions for robbery with a dangerous weapon and two prior convictions for assault with a deadly weapon inflicting serious injury. Lockhart’s prior convictions prohibit him from carrying a firearm. Lockhart pleaded guilty in April 2013 to possession of a firearm by a convicted felon and he was sentenced as an armed career criminal.
Lockhart has been in federal custody since November 2012. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and CMPD. The case was prosecuted by Assistant United States Attorney Robert J. Gleason of the U.S. Attorney’s Office in Charlotte.
Career Offender Admits to Possessing a Firearm While Trafficking in HeroinRead the Press Release
PORTLAND, Ore. – Marcelino Lopez-Diaz, 25, of Nayarit, Mexico appeared today before U.S. District Judge Robert E. Jones and entered guilty pleas to possession with the intent to distribute heroin in quantities of 1 kilogram or more and possession of a firearm in furtherance of a drug trafficking crime. The maximum sentence on both charges is life and both carry mandatory minimum sentences of ten and five years respective. The mandatory five years sentence for the firearm charge must run consecutive to the 10 year drug sentence. Lopez-Diaz is scheduled to appear for sentencing on December 11, 2014.
On Novemeber 7, 2012 several members of the Hillsboro Police Department and the Washington County Westside Interagency Narcotics Team (WIN) responded to a residence in Hillsboro, Oregon where Jeremy Mollet was found lying on the floor of a locked bathroom. A spoon and syringe were found nearby. Mollet was transported to Tuality Hospital where he was pronounced dead. The medical examiner noticed fresh puncture marks on Mollet’s foot which were consistent with injections sites. An autopsy report confirmed that Mollet died from the combined toxic effects of heroin and oxycodone.
Agents were able to quickly examine Mollet’s cellular phone. They observed a number of text messages describing his last heroin purchase. After speaking with Mollet’s girlfriend, agents were able to identify the person who last supplied the heroin that resulted in his death. From there, agents conducted an investigation into the chain of distribution. The investigation produced five coconspirators that ended with Lopez-Diaz.
On November 11, 2012, agents executed a search warrant at Lopez-Diaz’ residence. Lopez-Diaz flushed narcotics down the toilet drain as agents entered the residence. During the execution of the search warrant, agents located and seized over two pounds of heroin, two digital scales, packaging materials, approximately $28,000 in cash, and a Beretta 9mm firearm with 5 rounds of ammunition. Lopez-Diaz admitted having prior convictions for delivering controlled substances and that he was selling heroin in order to send money home to his mother in Mexico.
The investigation of the case was led by the Washington County Sheriff’s Office, Drug Enforcement Administration (DEA) through its Portland DEA Drug Task Force, and the Washington County Westside Interagency Narcotics Team (WIN), and Oregon State Medical Examiner.
The case was prosecuted by Assistant U.S. Attorney Kemp Strickland.
Bitcoin Exchangers Plead Guilty in Manhattan Federal Court in Connection with the Sale of Approximately $1 Million in Bitcoins for Use on the Silk Road WebsiteRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT M. FAIELLA, a/k/a “BTCKing,” an underground Bitcoin exchanger, and CHARLIE SHREM, formerly the Chief Executive Officer and Compliance Officer of a Bitcoin exchange company, both pled guilty today before U.S. District Judge Jed S. Rakoff to operating an unlicensed money transmitting business, through which they knowingly transmitted money intended to facilitate criminal activity – specifically, drug trafficking on “Silk Road,” a black-market website designed to enable its users to buy and sell illegal drugs anonymously and beyond the reach of law enforcement.
Manhattan U.S. Attorney Preet Bharara said: “Robert Faiella and Charlie Shrem opted to travel down a crooked path – running an illegal money transmitting business that catered to criminals bent on trafficking narcotics on the dark web drug site, Silk Road. The approximately $1 million in Bitcoins Faiella and Shrem sold to these outlaws cost them a lot more than they bargained for and bought them today’s convictions.”
According to the Complaint, the Indictment, the Superseding Information unsealed today against SHREM, and statements made in related court proceedings:
From about December 2011 to October 2013, FAIELLA ran an underground Bitcoin exchange on the Silk Road website, a website that served as a sprawling and anonymous black market bazaar where illegal drugs of virtually every variety were bought and sold regularly by the site’s users. Operating under the username “BTCKing,” FAIELLA sold Bitcoins – the only form of payment accepted on Silk Road – to users seeking to buy illegal drugs on the site. FAIELLA never registered his business as a money transmitting business with the U.S. Treasury Department, as required under federal regulations, even though he knew that he was required to do so.
Upon receiving orders for Bitcoins from Silk Road users, FAIELLA filled the orders through a company based in New York, New York (the “Company”). The Company enabled customers to exchange cash for Bitcoins anonymously, that is, without providing any personal identifying information, and it charged a fee for its service. FAIELLA obtained Bitcoins with the Company’s assistance, and then sold the Bitcoins to Silk Road users at a markup.
SHREM was the Chief Executive Officer of the Company, and from about August 2011 until about July 2013, when the Company ceased operating, he was also its Compliance Officer, in charge of ensuring the Company’s compliance with federal anti-money laundering (“AML”) laws. SHREM was also the Vice Chairman of a foundation dedicated to promoting the Bitcoin virtual currency system.
SHREM was fully aware that Silk Road was a drug-trafficking website, and through his communications with FAIELLA, SHREM also knew that FAIELLA was operating a Bitcoin exchange service for Silk Road users. Nevertheless, SHREM knowingly facilitated FAIELLA’s business with the Company in order to maintain FAIELLA’s business as a lucrative source of revenue. SHREM knowingly allowed FAIELLA to use the Company’s services to buy Bitcoins for his Silk Road customers; personally processed FAIELLA’s orders; and gave FAIELLA discounts on his high-volume transactions. Even though it was SHREM’s job to enforce the Company’s AML restrictions and even though the Company had registered with the Treasury Department as a money services business, SHREM failed to file a single suspicious activity report with the U.S. Treasury Department about FAIELLA’s illicit activity, as he was required to do in his role as the Company’s Compliance Officer, and deliberately helped FAIELLA circumvent the Company’s AML restrictions.
Working together, SHREM and FAIELLA exchanged nearly $1 million in cash for Bitcoins for the benefit of Silk Road users, so that the users could, in turn, make illegal purchases on Silk Road.
In late 2012, when the Company stopped accepting cash payments, FAIELLA ceased doing business with the Company and temporarily shut down his illegal Bitcoin exchange service on Silk Road. FAIELLA resumed operating on Silk Road in April 2013 without the Company’s assistance, and continued to exchange tens of thousands of dollars a week in Bitcoins until the Silk Road website was shut down by law enforcement in October 2013.
FAIELLA, 54, of Cape Coral, Florida, pled guilty to one count of operating an unlicensed money transmitting business through which he knowingly transmitted funds intended to be used to promote or support unlawful activity, which carries a maximum sentence of five years in prison. SHREM, 24, of New York, New York, pled guilty to aiding and abetting FAIELLA in the operation of his unlicensed money transmitting business, which also carries a maximum sentence of five years in prison. FAIELLA and SHREM will be sentenced by Judge Rakoff on January 20, 2015, at 4:00 p.m. and 4:30 p.m., respectively. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the U.S. Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement - Homeland Security Investigations, the New York State Police, the U.S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, Office of Foreign Assets Control and the New York Department of Taxation and Finance. Mr. Bharara also thanked the FBI’s New York Field Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Serrin Turner is in charge of the prosecution, and Assistant United States Attorney Andrew Adams of the Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
U.S. v. Charlie Shrem S1 Information
U.S. v. Robert Faiella and Charlie Shrem IndictmentBillings Man Sentenced for Walgreens Drug TheftRead the Press Release
BILLINGS - A 22-year-old Billings man was sentenced today for breaking into Walgreens and stealing hundreds of prescription pills. Travis John Bell was sentencing in connection with his April guilty plea to possession with intent to distribute oxycodone. Bell was sentenced to 48 months in prison followed by 3 years of supervised release. In addition, Bell was ordered to pay $19,997.75 in restitution to Walgreens.
In an offer of proof, Assistant U.S. Attorney Paulette Stewart told the court that on January 17, 2014, Billings Police Department (BPD) officers were dispatched to the Walgreens located at 3333 Grand Avenue in Billings regarding a burglary in progress complaint. BPD dispatch advised the officers that a security company that worked for Walgreens was watching a live feed and could see a male inside the store going back and forth from the pharmacy to the back door.
Officers arrived on scene and observed a red Dodge neon near the back garage door. It appeared that the garage door was damaged. Officers also observed a tow strap, attached to the car and secured to the rolling garage door. BPD observed a male bring a plastic bag of items out of the back door and reenter the building. Later, officers determined that the plastic bag was filled with prescription medications and syringes. BPD officers then watched Bell walk inside the store through a mirror inside the store. A short time later, Bell walked out the front door where he was arrested by the officers. Bell had a hammer, a screwdriver, and seven plastic pill bottles. The bottles contained various prescription drugs, including 136 OxyContin pills.
During the investigation, law enforcement observed damage to the pharmacy window. An officer observed that the Schedule II drug cabinet in the pharmacy was damaged and items were scattered on the floor. A search warrant of Bell's vehicle revealed various tools for the burglary and plastic bag, which contained over 3,000 prescription pills, including over 600 Oxycodone pills.
The case was investigated by the Drug Enforcement Administration (DEA) and the Billings Police Department.
Barren County, Kentucky, Fugitive Sentenced to 156 Months in Prison for Burglary and Possession of Firearms by A Convicted FelonRead the Press Release
Bowling Green, Ky. – A Barren County, Kentucky, convicted felon was sentenced in U.S. District Court yesterday, by Senior District Judge Thomas B. Russell, to 156 months in prison, followed by five years of supervised release, for multiple firearms violations announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jeremy Lee Wilson, age 36, of Glasgow, Kentucky, pleaded guilty on August 6, 2013, to breaking in to the M&B Pawn Shop, located in Glasgow, on November 30, 2012, and to stealing nine firearms from a display case. Wilson pleaded guilty to being a felon in possession of firearms, possession and concealment of stolen firearms and theft of firearms shipped or transported in interstate commerce from a person licensed to deal in firearms. During the course of the burglary, Wilson caused $800 in damage to the M&B Pawn Shop property.
According to an Affidavit attached to the Criminal Complaint, Wilson was stopped by a Kentucky State Police Trooper and Barren County Sheriff’s Deputy on December 1, 2012, while walking on North 31E. A jacket containing the nine stolen firearms was found near-by and eight of the firearms still had the M&B price tags on them.
At the time of his arrest, Wilson was a fugitive, wanted in Tyler, Texas, for the October 1, 2012, theft of four firearms from a Wal-Mart. The Texas conduct was accounted for in the sentence imposed today in Kentucky. Further, Wilson is an armed career criminal with four prior felony convictions from Texas and Arkansas dating back to November 2001.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Glasgow Police Department, the Barren County Sheriff’s Department and Kentucky State Police.
Bank Robber Gets Five Years PlusRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that David A. Parker, age 53, of the Burlington area, was sentenced today to 63 months in jail by Chief Judge Christina Reiss in United States District Court in Burlington.
On the morning of November 7, 2013, Parker attempted to rob the TD Bank in Burlington, and that afternoon robbed the Peoples United Bank in South Burlington. He was arrested by the South Burlington Police Department minutes after the robbery. Arresting officers also recovered most of the stolen money. Indicted by a federal grand jury for both offenses on November 14, 2013, on April 8, 2014 Parker pleaded guilty to the Peoples United robbery
At sentencing today before Chief Judge Reiss, Parker, through his attorney, Federal Public Defender Michael Desautels, requested a sentence of 40 months in jail. Parker personally apologized for his conduct. Mr. Desautels urged that Parker suffered from mental health problems and alcoholism. On behalf of the United States, Assistant U.S. Attorney William Darrow sought a sentence toward the high end of the 63 - 78 month Sentencing Guideline range. Darrow emphasized Parker=s 51 criminal convictions in the State of Vermont, and the fact that he repeatedly had been provided with substance abuse treatment programs by multiple Vermont health care providers.
Imposing the 63 month term, Judge Reiss stated that she would have imposed a higher sentence, but for the mental health issues. Judge Reiss also ordered Parker to pay the victim bank the $109 that was not recovered at his arrest, and imposed a three-year term of supervised release.
Parker has been in the custody of the U.S. Marshals Service since November 8, 2013. The United States Attorney thanked the Federal Bureau of Investigation, and the South Burlington Vermont Police Department, for investigating the case.
Attorney General Holder Announces Next Steps to Address Concerns Regarding the City of Ferguson and St. Louis County Police DepartmentsRead the Press Release
Attorney General Eric Holder announced today that the Justice Department has launched two initiatives to address concerns about police services in the city of Ferguson and in St. Louis County, Missouri. First, in addition to the ongoing criminal civil rights investigation, the Civil Rights Division has opened a civil pattern or practice investigation into allegations of unlawful policing by the City of Ferguson Police Department (FPD). Second, the Attorney General announced that the Community Oriented Policing Services (COPS) Office has launched a Collaborative Reform Initiative with the St. Louis County Police Department (SLCPD).
“The Department of Justice is working across the nation to ensure that the criminal justice system is fair, constitutional and free of bias,” said Attorney General Holder. “The interventions in Missouri are an important part of that commitment. While there is much work left to do, we feel confident that there are solutions to any issues we find and that community trust in law enforcement can be restored and maintained. Ferguson and St. Louis County are not the first places that we have become engaged to ensure fair and equitable policing and they will not be the last. The Department of Justice will continue to work tirelessly to ensure that the Constitution has meaning for all communities.”
The pattern or practice investigation will look at whether officers of the Ferguson Police Department have engaged in systemic violations of the Constitution or federal law. The investigation will focus on the Ferguson Police Department’s use of force, including deadly force; stops, searches and arrests; discriminatory policing; and treatment of detainees inside Ferguson’s city jail by Ferguson police officers. The department will consider all relevant information, particularly the efforts that FPD has undertaken to ensure compliance with federal law, and the experiences and views of the community.
Over the past five fiscal years, the Civil Rights Division has opened over 20 pattern or practice investigations into police departments across the country, which is more than twice as many as were opened in the previous five fiscal years. The division is enforcing 14 agreements to reform law enforcement practices at agencies both large and small. These agreements have already resulted in tangible changes in these communities by ensuring constitutional policing, enhancing public safety and making the job of delivering police services safer and more effective.
The investigation is being conducted by attorneys and staff from Civil Rights Division. They will be assisted by experienced law enforcement experts. The department encourages anyone wishing to provide relevant information to contact the department at 1-855-856-2132, or via email at [email protected] .
The COPS Collaborative Reform Technical Assistance process with the SLCPD is a voluntary process that will include an open, independent and objective assessment of key operational areas of the police department, such as training, use of force, handling mass demonstrations, stops, searches, arrests, and fair and impartial policing. The assessment will include the SLCPD police academy which trains officers for many police departments in the region, including the FPD. The findings of this assessment, and recommendations to address any deficiencies that it uncovers, will be provided in a public report and shared with the community. Additionally, SLCPD Chief Jon Belmar has requested that COPS conduct an after action report on the SLCPD’s response to the protests following the shooting of Michael Brown.
The Collaborative Reform process is an initiative in which the COPS Office, in partnership with a designated technical assistance provider and subject matter experts, works with a law enforcement agency to assess an issue that affects police and community relationships. Grounded in the principles of constitutional policing and procedural justice, it is a means to organizational transformation through an analysis of policies, practices, training, and tactics around a specific issue that can jeopardize an agency’s legitimacy within its community. It is not a short term solution for a serious deficiency, but a long term strategy that identifies the issues within an agency that affect public trust and offers recommendations on how to improve the issue and enhance the relationship between the police and the community.
The Collaborative Reform process was initially launched in 2011. The Las Vegas Metropolitan Police Department was the first agency to participate and complete the process, which resulted in the adoption of over 75 recommendations regarding the use of force. The COPS Office is currently working with the Philadelphia and Spokane police departments with this process.
“Today we are launching a comprehensive review of the Ferguson Police Department to assess whether police practices are constitutional and fair in Ferguson,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “We are encouraged by the pledge of cooperation from Mayor Knowles and Chief Jackson, and we look forward to working with them as our process moves forward.”
“The recent disturbances in Ferguson have revealed significant mistrust between the community and police agencies throughout the county, including the St. Louis County Police Department,” said COPS Director Davis. “The county has expressed a strong desire to take steps to create a relationship of trust and to ensure fairness and equity in its policing practices, and I applaud St. Louis County Police Chief Jon Belmar for seeking technical assistance and agreeing to the Collaborative Reform process. The advancements that will be made through this effort will not only benefit the St. Louis county police department; they will serve as a model for all police agencies in the region and throughout the nation.”
The department is also conducting in a thorough, fair and independent criminal investigation into the circumstances of the fatal shooting of Michael Brown on in Ferguson on Aug. 9, 2014. Although the department is working cooperatively with the local investigators, the federal investigation supplements, but does not supplant, the St. Louis County Police Department’s investigation into the shooting incident. The initiatives announced today are also separate from the ongoing current criminal investigations related to the death of Michael Brown.
The Civil Rights Division has an ongoing, separate investigation of the St. Louis County Juvenile Court to determine whether it engages in patterns or practices of violations of young people’s rights. The section is assessing whether there are violations of due process, equal protection or access to counsel. Anyone wishing to provide information related to that investigation can email the department at [email protected] or call toll free 855-228-2151.
The Justice Department has taken similar steps involving a variety of state and local law enforcement agencies, both large and small, in jurisdictions throughout the United States using its authority under the Violent Crime Control and Law Enforcement Act of 1994, the Omnibus Crime Control and Safe Streets Act of 1968, and Title VI of the Civil Rights Act of 1964. Under Attorney General Holder’s leadership, more investigations have resulted in comprehensive, court-overseen agreements to fundamentally change the law enforcement agency’s police practices than in any other five-year period in the department’s history.
Artesia Man Sentenced to Nineteen Years for Federal Firearms and Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Bryan O’Keef Kimble, 30, of Artesia, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 230 months in prison for his conviction on firearms and methamphetamine trafficking charges. Kimble will be on supervised release for four years after completing his prison sentence.
U.S. Attorney Damon P. Martinez said that Kimble was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“This is a great example of our cooperative enforcement efforts with our state and local partners. Our community is much safer with this repeat offender behind bars,” stated Special Agent in Charge Thomas Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives,
Kimble was transferred from state custody to federal custody in March 2013 to face federal charges in a criminal complaint alleging that law enforcement authorities seized firearms, methamphetamine and other drugs from Kimble on two separate occasions in Aug. and Sept. 2012. In Aug. 2013, Kimble was indicted and charged with two counts of being a felon in possession of a firearm and ammunition (Counts 1 and 4); two counts of carrying a firearm in relation to a drug trafficking crime (Counts 2 and 5); two counts of possession of methamphetamine with intent to distribute (Counts 3 and 7); and one count of possession of a firearm with an obliterated serial number (Count 6).
Kimble was prohibited from possessing firearms or ammunition in 2012 because he previously had been convicted of the following felony offenses: possession of a controlled substance in the 3rd Judicial District Court for the State of New Mexico (Doña Ana County); and being a felon in possession of a firearm and possession of a controlled substance with intent to distribute in the U.S. District Court for the District of New Mexico.
According to the criminal complaint, on Aug. 12, 2012, the Doña Ana County Sheriff’s Office arrested Kimble in Las Cruces on local charges after a deputy found a loaded handgun and methamphetamine in Kimble’s possession. During a search of Kimble’s vehicle, deputies found another firearm, more methamphetamine, marijuana and heroin. On Sept. 14, 2012, the Las Cruces Police Department and U.S. Marshals Service arrested Kimble in Las Cruces on an outstanding state warrant. At the time of this second arrest, Kimble was in possession of methamphetamine, approximately 40 pills, and $4,725 in cash; a 9 mm pistol with an obliterated serial number was later found in Kimble’s vehicle.
On Feb. 5, 2014, Kimble entered a guilty plea to all but Count 5 of the seven-count indictment. Subsequently, Kimble pled guilty to state offenses arising out of the two incidents leading to his federal charges in the 3rd Judicial District Court for the State of New Mexico and is awaiting sentencing in his state case.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Dona Ana County Sheriff’s Office, the Las Cruces Police Department, the Las Cruces office of the U.S. Marshals Service and the 3rd Judicial District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Another Vendor Indicted in Corruption Case Against Former Georgia National Guard EmployeeRead the Press Release
ATLANTA – Angela Thicklin (f/k/a Angela Stanback Kinlaw) has been indicted for allegedly conspiring with Raytosha Elliott, a former contracting official with the Georgia Department of Defense, to obtain contracts in exchange for illegal kickbacks.
“Thicklin is the second vendor charged in this corruption case involving a former Georgia National Guard employee who is charged with awarding contracts to her friends, like Thicklin, in exchange for illegal kickbacks,” said United States Attorney Sally Quillian Yates.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The alleged actions of these defendants reflect that they have no sense of duty and that they defy the rule of law. They exhibited a very active scheme to defraud. The FBI, in working with its many law enforcement partners, will continue to make such public corruption cases an investigative priority.”
Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service, commented, “Ensuring the integrity of Department of Defense programs will always remain one of DCIS' top priorities. DCIS special agents, in collaboration with our Federal and State partners, will fully investigate and bring to justice corrupt employees who undermine the public trust, and use their Government positions for personal gain.”
“Corruption at any level diminishes the hard work and dedication of the thousands of government employees who are dedicated to providing honest services to the American public,” stated Special Agent in Charge, IRS Criminal Investigation Veronica F. Hyman-Pillot. “IRS-Criminal Investigation stands committed to weed out individuals who to take the path to financial success through greed and corruption.”
Interim Inspector General Deb Wallace of the State of Georgia Office of Inspector General said, “This second indictment should serve notice that the State of Georgia Office of Inspector General and its investigative counterparts will vigorously pursue all parties who choose to perpetrate fraud schemes in government.”
According to United States Attorney Yates, the charges and other information presented in court: From May 2007 through April 2012, Elliott worked for the Georgia Department of Defense, the state agency charged with coordinating and supervising all agencies and functions of the Georgia National Guard. Elliott worked as an Engineering Operations Manager out of the Clay National Guard Center, located at Dobbins Air Reserve Base, in Marietta, Ga. In that position, Elliott worked with engineering firms to develop bid-ready construction projects, prepared bid documents, and oversaw no-bid purchase orders. Under the rules governing the contracting process that Elliott oversaw, projects that cost less than $5,000 did not need to go through a competitive bidding process, allowing Elliott to award the contracts. She then certified that the work had been completed for those projects, and facilitated payment to the vendors who allegedly completed such projects.
In that position, Elliott awarded numerous contracts under $5,000 to vendor companies created by her friends and associates, including co-defendant Angela Thicklin. In return, the friends and associates paid Elliott kickbacks, equal to 50% of the value of the contracts, for steering the contracts to them. Elliott falsely certified that work had been completed when, in fact, it had not been, in order to facilitate payment. One of the vendor companies was 3M Construction LLC, which was owned by co-defendant Thicklin. Elliott awarded 3M Construction at least six contracts with a total value of approximately $25,000. Those contracts were for a variety of services supposedly to be performed by 3M Construction, including electrical work, landscaping, and HVAC work.
Instead, the defendants split the money awarded under these contracts and spent it on personal items, including travel, meals, and merchandise. As part of the scheme, Elliott owned a company named Tech Group Investments, LLC. Thicklin took money she had obtained from the Georgia Department of Defense contracts, and paid kickbacks to Elliott through this company.Elliott also awarded at least 17 contracts, worth approximately $75,000, to a company named Total Source Solution, LLC, which was owned by Lakeysha Ellis. On March 27, 2014, Ellis pleaded guilty to conspiring with Elliott to obtain these contracts in exchange for kickbacks. The alleged scheme involving Total Source Solution worked in a similar fashion to the one involving 3M Construction.
Additionally, Ellis pleaded guilty to conspiring with Elliott to defraud Baumueller-Nuermont Corporation, an industrial equipment company with offices in Atlanta, Ga. The indictment alleges that Elliott and Ellis defrauded the company from January 2009 through May 2011, when Ellis was an accountant there. Ellis falsified employee records in the corporation’s payroll system to disguise payments to the defendants’ two companies. Ellis created at least two phantom employees by altering the names of real employees (by switching their first and last names) and slightly changing their Social Security numbers. She then caused the payroll system to make fraudulent salary payments to Total Source Solution and Tech Group Investments for these new, non-existent employees. Baumueller-Nuermont lost about $85,000 from this scheme.
The 15-count superseding indictment charges Elliott, 34, and Thicklin, 43, both of Atlanta, Ga., with conspiracy and bribery of a public official. Elliott is also charged with separate counts of conspiring with Ellis and wire fraud. After the original indictment was returned on January 14, 2014, Ellis, 36, of Atlanta, Ga., pleaded guilty to two counts of conspiracy.
Members of the public are reminded that the indictment contains only allegations. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation; the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; Internal Revenue Service - Criminal Investigation; the U.S. Army Criminal Investigation Command; the Deputy Inspectors General of the State of Georgia Office of the Inspector General; and the Georgia Bureau of Investigation.
Assistant United States Attorney Stephen H. McClain is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Allenwood Inmate Charged with Assaulting Another InmateRead the Press Release
The United States Attorney for the Middle District of Pennsylvania, announced that charges have been filed against Donny Jo Gumfory of Roswell, New Mexico.
According to United States Attorney, Peter J. Smith, Gumfory, age 36, is charged in a one-count information with assault resulting in serious bodily injury to another inmate while they both were incarcerated at the FCC – Allenwood Penitentiary.
The investigation was conducted by the Federal Bureau of Prisons Special Investigative Services, and the Federal Bureau of Investigation, Williamsport Resident Agency. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is ten years imprisonment, and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.Alien Sentenced for Illegal Re-entryRead the Press Release
Had Been Removed Five Times
ALBANY, NEW YORK – Jesus Vasquez-Loyola (28, of Valatie, NY) was sentenced today to serve 14 months in prison by Chief United States District Court Judge Gary L. Sharpe announced United States Attorney Richard S. Hartunian and the Department of Homeland Security, Immigration and Customs Enforcement (ICE). In May, Vasquez-Loyola pled guilty to illegally reentering the United States following removal, a felony under federal law. Following the completion of the term of imprisonment, the Department of Homeland Security will process Vasquez-Loyola for removal from the United States to Mexico.
In April 2014, Vasquez-Loyola was arrested by New York State Police Officers in Kinderhook, New York and charged with several offenses including driving while intoxicated. Vasquez-Loyola had been previously removed to Mexico five times, most recently in July 2012 after his conviction in the Northern District of New York for illegally entering the United States after removal.
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement (ICE), Albany, NY.
Albuquerque Man Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Andres Salinas, 19, of Albuquerque, N.M., was arrested yesterday by Homeland Security Investigations (HSI) on federal child pornography charges. Salinas made his initial appearance in federal court earlier today, and remains in custody pending a detention hearing scheduled for tomorrow morning.
Salinas is charged in a criminal complaint with possessing and receiving visual depictions of minors engaged in sexually explicit conduct. According to the criminal complaint, the New Mexico Attorney General’s Office (NMAGO) initiated the investigation leading to Salina’s arrest in July 2014 after identifying an IP address that allegedly was being used to download child pornography. Subsequent investigation revealed that the IP address was subscribed to Salinas’ residence.
Yesterday, HSI and other law enforcement agency members of the New Mexico Internet Crimes Against Children (ICAC) Task Force executed a federal search warrant at Salinas’ residence and seized computer media from Salinas’ bedroom. A preliminary examination of the computer media revealed that it contained images consistent with child pornography.
If convicted of the charges in the criminal complaint, Salinas faces a federal prison term of not less than five years and not more than 20 years. Salinas also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of HSI, the NMAGO and other members of the New Mexico ICAC Task Force. The case is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Accused Alien Smuggler Appears in Federal CourtRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Roberto Rivera-Ortiz, 27, a resident of the New York City area, appeared today in United States District Court in Burlington on a charge of alien smuggling. Magistrate Judge John M. Conroy ordered that Rivera-Ortiz be temporarily detained pending another hearing on September 4.
According to court records, on the morning of September 2, 2014, Border Patrol agents in Derby Line encountered a male and a female after they had walked across the border through a clump of trees in a residential area. When the two individuals noticed a marked Border Patrol cruiser nearby, they began running in a southerly direction. Agents apprehended the male, who proved to be Jose Segura-Perez, a Mexican national with no status in the United States. The female at that time evaded capture.
At about the same time, another Border Patrol agent noticed Rivera-Ortiz standing beside a vehicle on a street in Derby Line, near where the aliens had been encountered. The hood on Rivera-Ortiz's vehicle was up and he was talking on a cellphone. Immigrations records showed that Rivera-Ortiz's car had entered Canada at Niagara Falls last June, and had entered the United States at Derby Line earlier that morning. When questioned about his nationality and immigration status, Rivera-Ortiz appeared nervous. Agents escorted the defendant to the Newport Border Patrol station, where they soon established that he had transported the two aliens from Montreal to just north of the border, let them out to cross the border on foot, entered the United States lawfully in his car and was in the process of attempting to pick them up to drive them to New York when he was approached by the Border Patrol.
Court records indicate that Border Patrol agents today finally located and arrested the woman who had absconded on September 2. She is also an undocumented alien.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, the defendant faces up to ten years of imprisonment and a fine of up to $250.000. The actual sentence would be determined with reference to federal sentencing guidelines.
Rivera-Ortiz is represented by Assistant Federal Public Defender Stephen Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Wednesday 3 September 2014
Woman Sentenced for Assault and Causing Serious Bodily InjuryRead the Press Release
COEUR D'ALENE - Marisa Belle Hawk, 28, of Wapato, Washington, was sentenced yesterday to 85 months in prison for assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Hawk to serve three years of supervised release following her prison term. She pleaded guilty on June 17, 2014.
According to court documents, Hawk admitted that on November 23, 2013, she shot the victim in the leg with a handgun. The offense happened on the Nez Perce Reservation. Both the defendant and the victim are members of federally recognized tribes.
The case was investigated by Federal Bureau of Investigation (FBI) and the Nez Perce Tribal Police.
Windham Man Sentenced to 8 Months for Passing Counterfeit Traveler’s ChecksRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Keith
A. Coleman, 48, of Windham, Maine, was sentenced today in U.S. District Court by Judge Nancy
Torresen to eight months in prison and three years of supervised release for passing $19,000
worth of counterfeit $100 American Express traveler’s checks. He was also ordered to pay
$19,000 in restitution. He pled guilty to the charge on May 1, 2014.According to court records and information disclosed at his sentencing hearing,
between December 17, 2013 and January 10, 2014, the defendant passed 190 counterfeit $100
American Express traveler’s checks at Applebee’s, Best Buy, CVS Caremark, Denny’s, TGI
Fridays, Longhorn Steakhouse, Olive Garden, Radio Shack, Rite Aid, Ruby Tuesday, Staples,
Target and Toys ‘R Us in Maine and Massachusetts.This case was investigated by the United States Secret Service and the Auburn, Augusta,
Biddeford, South Portland and Topsham, Maine and the Everett, Massachusetts Police
Departments.West Monroe Man Sentenced to 90 Months in Prison for Firearms Possession, Drug TraffickingRead the Press Release
MONROE, La. –A West Monroe man was sentenced to 90 months in prison and three years of supervised release for drug trafficking and illegally possessing a firearm, U.S. Attorney Stephanie A. Finley announced today.
Kerry D. Gayfield, 30, of West Monroe, was sentenced by U.S. District Judge Robert G. James for one count of possession of a firearm by a convicted felon, one count of possession with intent to distribute marijuana, and one count of possession of a firearm in relation to drug trafficking. According to evidence presented at the June 10, 2014 guilty plea, West Monroe police searched a home on January 10, 2013, and discovered Gayfield standing behind a bar in the living room with a digital scale in front of him and a bag of marijuana in his hand. Officers also found a Smith and Wesson, .38 Special revolver loaded with five rounds on him. After conducting a search of the premises, officers found a total of 43.5 grams of marijuana (most packaged for street level sale), scales, marijuana cigars, pipes, $469, a bottle of liquid hydrocodone in someone else’s name, two hydrocodone pills, cocaine, an envelope with handwritten notes indicating drug sales and weight to money ratios, and a second firearm, a Jennings Model J22, .22 caliber pistol loaded with six rounds.
Gayfield has been convicted of five felonies in the Fifth Judicial District Court in West Carroll Parish. He was convicted of simple burglary and forgery in June of 2003, simple burglary and unauthorized use of motor vehicle in January of 2004, and illegal possession of stolen things in April of 2008.
This case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety. The PSN attorneys prosecute a variety of federal firearms violations listed in Titles 18 and 26 of the U.S. Code, including illegal possession of firearms and commission of crimes with firearms.
The West Monroe Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Waynesville Man Sentenced for Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Waynesville, Mo., man was sentenced in federal court today for robbing Security Bank of Pulaski County in St. Robert, Mo.
Arthur John Green, 42, of Waynesville, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years and seven months in federal prison without parole.
On April 2, 2014, Green pleaded guilty to robbing the Security Bank of Pulaski County. Green entered the bank on Feb. 20, 2014, and handed a teller a note that demanded money. The teller gave him $1,100 and he quickly left the bank. Several hours later, a Pulaski County Sheriff’s deputy spotted Green’s vehicle. Green pulled over and was arrested without incident.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Pulaski County, Mo., Sheriff’s Department and the FBI.United States Settles with Costco to Cut Ozone-Depleting and Greenhouse Gas Refrigerant Emissions NationwideRead the Press Release
Costco Wholesale Corporation, one of the nation’s largest retailers, has agreed to cut its emissions of ozone-depleting and greenhouse gases from leaking refrigeration equipment at more than half of its stores nationwide.
In the settlement announced today by the U.S. Environmental Protection Agency and U.S. Department of Justice, Costco will pay $335,000 in penalties for federal Clean Air Act violations and will fix refrigerant leaks and make other improvements at 274 of its stores, which EPA estimates will cost about $2 million over the next three years.
“Compliance with the nation’s Clean Air Act is key to protecting all Americans from air pollution that damages our atmosphere and changes our climate,” said Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Industry needs to lead the way in abandoning harmful chemicals in favor of using and developing greener, environmentally friendly alternatives to protect our health and our climate.”
“Cutting harmful greenhouse gas emissions is a national priority for EPA, and this settlement will lead to significant reductions of an ozone-depleting gas that is 1,700 times more potent than carbon dioxide,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Fixing leaks of refrigerants, improving compliance and reducing emissions will make a real difference in protecting us from the dangers of ozone depletion, while reducing the impact on climate change.”
Costco violated the Clean Air Act by failing to promptly repair refrigeration equipment leaks of the refrigerant R-22, a powerful ozone-depleting hydrochlorofluorocarbon, between 2004 and 2007. Costco also failed to keep adequate records of the servicing of its refrigeration equipment to prevent harmful leaks. Destroying the ozone layer results in dangerous amounts of cancer-causing ultraviolet solar radiation striking the earth, increasing skin cancers and cataracts. R-22 is also a potent greenhouse gas with 1,800 times more global warming potential than carbon dioxide or CO2.
The settlement requires Costco to retrofit or replace commercial refrigeration equipment at 30 of its stores to reduce ozone-depleting and greenhouse gas emissions. Costco must also implement a refrigerant management system to prevent and repair coolant leaks and reduce its corporate-wide average leak rate at least 20 percent by 2017. In addition, Costco will install and operate environmentally friendly glycol refrigeration systems and centrally monitored refrigerant leak detection systems at all new stores.
Today’s settlement is part of EPA’s national enforcement initiative to control harmful air pollution from the largest sources of emissions. The Clean Air Act requires owners or operators of commercial refrigeration equipment that use over 50 pounds of ozone-depleting refrigerants and have an annual leak rate over 35 percent to repair all leaks within 30 days.
Corporate commitments to reduce emissions from refrigeration systems have been increasing in recent years. EPA’s GreenChill Partnership with food retailers reduces refrigerant emissions and decreases their impact on the ozone layer and climate change by transitioning to environmentally friendlier refrigerants, using less refrigerant and eliminating leaks, and adopting green refrigeration technologies.
Costco, headquartered in Issaquah, Washington, operates 466 stores in the U.S. and additional stores worldwide, with revenues of $105.2 billion in 2013. Today’s settlement covers 274 Costco stores with regulated commercial refrigeration equipment, including 67 stores in California, 14 in Arizona, five in Nevada, and four in Hawaii.
The proposed settlement is subject to a 30-day public comment period and final court approval.
Read the proposed settlement at: http://www.usdoj.gov/enrd/Consent_Decrees.html
U.S. and Indiana Enter into Settlement for $26 Million Cleanup in East Chicago, IndianaRead the Press Release
Under a proposed settlement reached with the United States and the state of Indiana, the Atlantic Richfield Company and E.I. Du Pont de Nemours and Co. (DuPont) will pay for an estimated $26 million cleanup of lead and arsenic contamination in parts of a residential neighborhood in East Chicago, Indiana, announced the U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA).
The yards in this neighborhood are contaminated with lead and arsenic through industrial operations that took place from at least the early 1900s through 1985. During that time, lead smelting and refining as well as other manufacturing processes that used lead and arsenic were located on and near the area that came to be known as the Calumet neighborhood of East Chicago. The cleanup will involve digging up contaminated soil, hauling it away for disposal, and restoring the yards with clean soil.
Under the settlement, EPA itself will do the work in the neighborhood. EPA will identify the yards that need to be remediated, will work with property owners to develop property‑specific drawings showing which soils on each property must be excavated, will do the excavation, and will restore the properties after excavation is complete. Atlantic Richfield and DuPont will pay for EPA’s work and will also be responsible for transporting the contaminated soil out of the neighborhood and properly disposing of it.
To manage the cleanup, EPA and the state divided the Calumet neighborhood into three zones. Today’s settlement covers two of them: a neighborhood that includes the Carrie Gosch Elementary School and residences operated by the East Chicago Housing Authority and a neighborhood located between the Elgin & Joliet Railway Line on the west and Parrish Avenue on the east. Cleanup of the third area of the Calumet neighborhood is the subject of further discussions.
“Under this settlement, Atlantic Richfield and DuPont will fund the first phase of cleaning up historical lead and arsenic contamination in residential properties in part of East Chicago,” said Sam Hirsch, Acting Assistant Attorney General for the Department of Justice’s Environment and Natural Resources Division. “This marks the start, not the end, of cleaning up the contamination that has burdened this community for far too long.”
“This settlement ensures that almost 300 residential properties, parks and public spaces in East Chicago will be cleaned up – and that the companies responsible for contaminating those sites will pay 100 percent of the costs for this phase of the cleanup,” said EPA Regional Administrator Susan Hedman.
“My office previously has worked through the federal courts in other cases to improve the quality of life for citizens of East Chicago,” said Indiana Attorney General Greg Zoeller, whose office represented the Indiana Department of Environmental Management. “Under this appropriate cooperative effort between the state of Indiana and federal EPA, and with the commitments of the settling corporations, East Chicago residents will see progress made toward removing a health hazard and producing long-term benefit for their community.”
“This is great news for the citizens whose homes have been impacted,” said Indiana Department of Environmental Management (IDEM) Commissioner Thomas Easterly. “Everyone wins when responsible parties come together and agree to do what is best for the community.”
The Calumet neighborhood is part of an EPA Superfund site known as the USS Lead Site. EPA previously investigated the contamination in this neighborhood and issued a decision calling for its cleanup.
In a complaint filed simultaneously with the settlement, the United States and the state allege that Atlantic Richfield and DuPont are liable under the Superfund law for the cleanup because they or their predecessors either are owners or were owners/operators of plants that released lead and arsenic into the environment.
The terms of the settlement are included in a proposed consent decree filed with the U.S. District Court in Hammond, Indiana. The consent decree is subject to a 30‑day public comment period and court approval. The consent decree will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html
U.S. Attorney Jenny A. Durkan, Justice Department Leader on Cybercrime, to Step DownRead the Press Release
Jenny A. Durkan announced today that she will step down as U.S. Attorney for the Western District of Washington at the end of the month, after serving five years in office. She has informed the President, Attorney General Eric Holder and U.S. Senators Murray and Cantwell of her decision. Durkan, known nationally for her trial and legal work, was in the first group of six U.S. Attorneys nominated by President Obama in May 2009; she was confirmed unanimously by the U.S. Senate in September 2009.
“I have been honored to serve the communities in Western Washington, to lead an office of extraordinary people and public servants, and to work with dedicated federal, state, local and tribal law enforcement. Together we have taken on a range of challenges, threats and bad actors. We have made our nation and communities safer, while also making our civil rights stronger,” said U.S. Attorney Jenny A. Durkan.
“As United States Attorney for Western Washington, Jenny has served as a tireless advocate for the American people, for the citizens of Washington State, and for the cause of justice,” said Attorney General Eric Holder. “Jenny has been an exceptional leader in the Justice Department’s fight against cyber-crime… Jenny Durkan exemplifies the highest standards of personal integrity and professional excellence. For the past five years, I have been grateful for Jenny’s dedicated service and her wise counsel. I am certain that the people of Western Washington will continue to benefit from her service for years to come. And although I wish her the very best as she takes the next step in her career, I will miss her leadership, her contributions, and her friendship.”
Durkan served for two years on Attorney General Holder’s original Attorney General Advisory Committee, and has chaired his advisory Subcommittee on Cybercrime and Intellectual Property Enforcement since 2009.
Durkan is known for her national role in fighting cybercrime, and for increasing the federal capabilities to meet cyber-based national security threats. She helped craft the Department of Justice’s cyber strategy, and has worked with international partners to increase cyber security. At the same time, Durkan served on the Terrorism and National Security subcommittee. Durkan faced the reality of such a terrorist threat when authorities discovered a plot to bomb a military recruiting office in Seattle. The building also housed a daycare. The plot was disrupted and the men convicted.
During her tenure, Durkan moved the U.S. Attorney’s office to more proactive enforcement efforts, leading “hot spot” initiatives in areas of persistent crime and by targeting armed criminals and gun crimes. Under Durkan, these initiatives and other prosecutions were often coupled with forfeiture actions to recover money for taxpayers and strip criminals of their assets. In January of this year, the office announced that its work with DOJ and other U.S. Attorneys’ offices led to the recovery of over $800 million, while the office’s independent work recovered an additional $22 million.
Durkan’s office has received national recognition for its work against cartel-related drug trafficking organizations — cases notable for their use of wiretaps and sophisticated financial analyses. Assuming her position in the wake of the financial meltdown, Durkan took a hard line on “white collar” financial fraud, resulting in a number of convictions and significant prison terms for defendants. Durkan also formed a civil rights section in the U.S. Attorney’s office that has increased enforcement of civil rights laws, including the employment rights of returning military personnel.
Her office also joined with the United States Department of Justice (DOJ) Civil Rights Division to investigate the Seattle Police Department’s use of force and concerns of biased policing. This led to broad reforms in the SPD and ongoing monitoring of a consent decree by the federal court. The team from the U.S. Attorney’s office that worked on the case will receive an award for their work from the DOJ next week in Washington, D.C.
ADDITIONAL INFORMATION ON WORK OF THE U.S. ATTORNEY’S OFFICE UNDER DURKAN
National Leader on Cybercrime Upon becoming U.S. Attorney, Durkan moved quickly to prioritize investigations and prosecutions of cybercrime and the theft of intellectual property. Her office increased outreach to and collaboration with cyber-security and privacy experts, academics, local businesses, international companies based in Western Washington, and area schools. She has hosted in Seattle an annual cybercrime conference, which featured industry leaders, privacy and security experts, government officials, and top national security experts.Her office has brought a number of successful cyber prosecutions, and is currently prosecuting Roman Seleznev, a Russian national accused of large-scale illegal hacking and credit card fraud. As chair of the Attorney General’s cybercrime subcommittee, Durkan also has been a national leader in DOJ efforts to fight the rising threat of cybercrime, and has testified before Congress on the issue. Working with the Justice Department’s National Security Division, she helped form a network of national security cyber prosecutors to ensure that every U.S. Attorney’s office had a prosecutor able to handle such cases. She also serves on DOJ’s Cyber Advisory Council, helped craft the federal cyber strategy and serves on DOJ’s Intellectual Property Enforcement Task Force. She has worked with international law enforcement partners to increase collaboration in cyber-security issues.
Durkan believes that cyber-based threats and digital crime are now the most significant challenges facing the country.
“Individual privacy, national security and the global economy are all at risk,” said Durkan. “We have always been a country built on innovation, but now we must focus that genius on building digital security into every product, home and business. We cannot afford to let criminal gangs or rogue states outpace us.”
Proactive Initiatives with Law Enforcement. As U.S. Attorney, Durkan has emphasized proactive enforcement initiatives to identify and fight crime. Those initiatives have depended upon strong collaboration among federal, state, local and tribal law enforcement. Early in her tenure, the office worked with a variety of law enforcement agencies to stem criminal conduct by the so-called “sovereign citizen” movement. She also prioritized prosecution of gun crimes, including illegal gun show sales, and the illegal possession of firearms by felons. Working with state and local law enforcement, Durkan’s office has spearheaded a number of “hot spot” initiatives in White Center, Kent Valley, and Tukwila, and focused efforts on the “worst of the worst” criminals who were harming communities in Clark, Skagit and Whatcom Counties. Durkan increased outreach to tribal partners, and created the first tribal Special Assistant United States Attorney to improve the office’s work in Indian country. She recognizes that to be most successful, prosecutions need to be combined with strong community outreach, education and prevention efforts.
Increased Emphasis on Forfeitures. Advocating an “all-tools” approach, Durkan’s office has aggressively used forfeiture powers to benefit the community and strip criminals of their profits. One recent joint law enforcement initiative led to the seizure of three motels in Tukwila, near Sea-Tac airport, and the prosecution of their owners. Crime in the Tukwila area dropped significantly as a result of these efforts. Similarly, when her office obtained guilty pleas from Frank Colacurcio, Jr. and his associates, Durkan insisted all of Colacurcio strip clubs be forfeited to the government and sold. And when Colton Harris-Moore pleaded guilty, Durkan required that he forfeit all rights to his story and all proceeds from a planned movie go to victims. As noted, in January of this year, the office announced that its work with DOJ and other U.S. Attorneys’ offices had led to the recovery of over $800 million and the office’s independent work recovered to another $22 million.
Obligation to Protect Civil Rights. A fundamental obligation of DOJ and every U.S. Attorney is to protect the civil rights of all. To better discharge this obligation, Durkan formed a civil rights unit in her office, which includes criminal and civil AUSAs. The unit has brought hate crime prosecutions and has worked to protect a range of civil rights from fair housing, to language access, to the employment rights of returning soldiers. The office also increased outreach to communities of color, other minority communities and to the Arab, Muslim and Sikh communities. Together with the Justice Department’s Civil Rights Division, the U.S. Attorney’s office launched a civil rights investigation of the Seattle Police Department’s use of force and treatment of minority communities. The investigation led to a landmark consent decree negotiated with the City of Seattle and current monitoring by a federal court. Today, all new policies required by the decree have been implemented, and training is underway. The court-approved policies seek to minimize the need for force while keeping officers safe, to enhance skills and resources for dealing with people in crisis and to bridge the gap between police and racial and minority communities.
Countering Terrorism and National Security Threats. During Durkan’s term, a terrorist threat against a local military facility that was discovered by the Seattle Police Department and the FBI Joint Terrorism Task Force. A Seattle-area man, Abdul Latif and his co-conspirator, Walli Mujahidh, were successfully investigated, arrested, charged and convicted. Under Durkan, the office also finally brought to conclusion the prosecution and appeals of Ahmed Ressam, the so-called Millennium Bomber. In October 2012, Ressam was sentenced to 37 years in prison. Her office also has brought a number of prosecutions for the illegal export of weapons and technology to prohibited countries.
White Collar Prosecutions. Durkan’s office has prosecuted several large-scale bank and fraud schemes, as well as a number of serious environmental violations. Examples include Darren Berg, who was sentenced to 18 years in prison for his role in the largest fraud scheme to be prosecuted in Western Washington; Shawn Portman, an executive with collapsed Pierce Commercial Bank, who received 10 years for his role in pushing fraudulent loans; and Patrick Dooley, who was sentenced to 33 months in prison for illegally dumping a hazardous chemical. These cases reflect Durkan’s belief that so-called “white collar” defendants must also face serious sanctions, including incarceration when appropriate.
Combatting Drug Trafficking Organizations. Durkan has been outspoken on the threat that cartel-related crime poses for the Northwest. Her office has been a national leader in prosecuting large-scale drug trafficking organizations, and in seizing the assets relating to those cases. During Durkan’s tenure, the office has brought a number of cases — often aided by wiretaps and experienced financial investigators— to dismantle and prosecute the drug organizations and strip them of their proceeds. At the same time, Durkan recognized the need to implement other tools to deal with non-violent addicted offenders. Working with U.S. District Judge Ricardo Martinez, Durkan helped form one of the first diversionary federal drug courts in the country. In addition, Durkan helped craft the federal response to marijuana legalization in Washington, focusing resources on harms associated with interstate trafficking, use of firearms, and sales to minors. To address clear federal interests and threats to public safety, the office has prosecuted a number of marijuana storefront operators, and moved strongly against any sales to children or near schools. Recently, the office charged a number of defendants in connection with explosions and fires in multiple cities caused by the manufacture of so-called Butane Honey Oil (BHO) — used in edible marijuana products.
Recognition and Awards as U.S. Attorney. Awards and recognition include: Warren G. Magnuson Memorial Award, Seattle Municipal League (2014); Inspiring Women, Seattle Storm (2014); Special Contribution to the Judiciary, Washington Women Lawyers (2013); Jaswant Singh Khalra Award for Social Justice, Sikh Community (2013);Leadership and Justice Award, Mother Attorneys Mentoring Association of Seattle (2012); Distinguished Alumni, University of Washington School of Law (2011); Woman of the Year, Seattle University School of Law (2011); Seattle’s Most Influential People, Seattle Magazine (2011 and 2012); Women of Power In Law, Women of Color (2010); Fellow, American College of Trial Lawyers; AV Preeminent (highest) Peer Rating in both Legal Ability and Ethics, Martindale-Hubbell (1997 – 2014).
Term of Office. Durkan was appointed to a four-year term. When her original term of four years expired a year ago, the federal government was locked in budget disputes and a government shutdown. Durkan’s office faced a rising vacancy rate because of a long-term hiring freeze. Durkan stayed on to guide the office through the budget challenges, and to shepherd some key cases through important stages. Durkan says she will take time to find the right “next challenge” after she steps down.
Two Suspected Smugglers Charged with Leaving A Woman to Die in the Otay MountainsRead the Press Release
SAN DIEGO – Two suspected alien smugglers, Fernando Armenta-Romero and Carlos Hernandez-Palma, were arrested over the Labor Day weekend for allegedly leaving a woman to die in the Otay Mountains over the 2013 Christmas holidays. Yesterday, charges of bringing in an illegal alien resulting in death were filed against the alleged smugglers, who were arraigned today before U.S. Magistrate Judge Karen S. Crawford.
According to the amended complaint, on or about December 29, 2013, at approximately 7:10 PM, the Border Patrol Search Trauma and Rescue (“Border Patrol”) unit responded to a report of a 32-year-old undocumented alien female abandoned in the Otay Mountain Wilderness. The Otay Mountain Wilderness is located near the U.S.-Mexico border in southeastern San Diego County. This is a rugged and isolated area with limited access to roads and no development. Border Patrol agents contacted the reporting party, later identified as Baltazar Razo-Barreto (“Razo”). Mr. Razo identified himself as the husband of the 32-year-old woman, who he identified as Jaqueline Capistran-Ochoa (“Capistran”). He told the agents that Ms. Capistran had been in medical distress when he left her in the care of others while he sought help.
After an extensive search of the mountainous area over a period of two days, Mr. Razo eventually led Border Patrol agents to an area where they discovered the body of a woman, who Mr. Razo identified at the scene as his wife, Ms. Capistran. When Ms. Capistran was found, she had no pulse and displayed signs of rigor mortis. According to the medical examiner, Ms. Capistran’s death was attributed to hyperglycemia and ketoacidosis due to diabetes mellitus and hypothermia from environmental exposure. As alleged in the complaint, the medical examiner reported that Ms. Capistran was pregnant and estimated the gestational age of the fetus at approximately 11 to 12 weeks.
According to court documents, Mr. Razo and his wife, Ms. Capistran, made arrangements with smugglers in Mexico to be brought illegally into the United States in December 2013. The smugglers identified themselves to Mr. Razo as “CARLOS” and “ARMENTA,” according to the complaint.
The following information is alleged in the complaint:
The smugglers told Mr. Razo that they would smuggle him and Ms. Capistran into the United States for $12,000. During their discussion, the smugglers explained that the journey from Mexico into the United States would take 1.5 to 2 days, including frequent breaks. They added that it was not particularly arduous as the terrain was mostly flat. The smugglers told Mr. Razo that the hardest part was climbing the U.S.-Mexico border fence. Mr. Razo relayed this information to Ms. Capistran. She had developed diabetes after the birth of their second child and was on diabetes medication. They also suspected that she might be pregnant.Before leaving Tijuana, Mexico, for their journey into the United States, the smugglers took Ms. Capistran for walks around the park to determine whether she was fit enough to make the trip, especially since she appeared overweight and tired. Ms. Capistran walked with the smugglers through the park, but often grew tired and repeatedly required rest stops. The smugglers argued about whether she could make the smuggling trek. Despite their misgivings, they decided to take the chance given the promised payment. On or about December 26, 2013, CARLOS and ARMENTA smuggled Mr. Razo and Ms. Capistran into the United States by climbing over the U.S./Mexico boundary fence in Tijuana, Mexico.
Despite the smugglers’ description of the terrain as mostly flat, the hike was actually mountainous, covered with large boulders and difficult to traverse. After approximately two days, Ms. Capistran began to slow down and required more frequent rest stops. Ms. Capistran told Mr. Razo that she felt like there was water in her lungs, and she was having a hard time breathing. Soon she was unable to walk at all.
Mr. Razo repeatedly pleaded with the smugglers to seek help and to use their cellular phone. However, the smugglers refused. They claimed the phone did not work and that it had been destroyed. After the third day, on December 29, 2013, Ms. Capistran was unresponsive. Since the smugglers refused to seek help, Mr. Razo left his wife with CARLOS and ARMENTA, and hiked into the wilderness on his own. With the help of a Good Samaritan, Mr. Razo eventually contacted Border Patrol for assistance. Unfortunately, by the time Border Patrol agents and Mr. Razo found Ms. Capistran in the Otay Mountains, it was too late. Ms. Capistran had died and was left along a trail in the mountains. CARLOS and ARMENTA were gone. They had hiked out of the mountains two days before and called ARMENTA’s brother to pick them up.
CARLOS and ARMENTA made their initial appearance today before Judge Crawford for arraignment. The Government moved to detain both alleged smugglers based on risk of flight and danger to the community. A detention hearing is scheduled for September 9, 2014, at 9:30 a.m., before Judge Crawford.
DEFENDANT Case Number: 14MJ2956-KSC Fernando Armenta-Romero Age: 43 Carlos Hernandez-Palma Age: 35 CHARGESCount 1: Title 18, United States Code, Section 1324 – Bringing in Illegal Aliens Resulting in Death – statutory maximum of 10 years in prison, a maximum fine of $250,000, a 3-year term of supervised release, and $100 special assessment.
INVESTIGATING AGENCY
All defendantsU.S. Border Patrol - Chula Vista Intelligence Division
*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.
Two Plead Guilty to Defrauding AIG Out of Hundreds of Thousands of DollarsRead the Press Release
DES MOINES, IA – Former Iowa resident Christina M. Pender and California resident Robert K. Taylor have pled guilty to defrauding insurance company AIG out of hundreds of thousands of dollars. Taylor also pled guilty to making false statements to a financial institution involving a mortgage fraud scheme in California. Pender pled guilty on April 17, 2014, and Taylor pled guilty on August 27, 2014.
On May 21, 2013, a federal grand jury in the Southern District of Iowa indicted Pender and Taylor for wire fraud. From approximately April 1, 2010 to January 5, 2011, Pender and Taylor perpetrated a scheme whereby Pender, then an AIG insurance adjuster located in West Des Moines, Iowa, approved payments to companies owned by Taylor for expert services that were never provided. Taylor’s companies were based in California, where he resided, and included TEI Group Associates, Inc., TEI Group, Inc., and Equitable Consulting Solutions. Pender also approved payments for expert services that were not provided to another Iowa-based company, MDP Group, which was owned, in part, by her then-boyfriend. All of the alleged services were supposed to be for consulting in furtherance of AIG’s handling of construction defect claims that were in litigation. In total, Pender admitted that she approved approximately $925,406 in payments by AIG for services that were not provided. Taylor received $666,128.98 of those payments.
During the pendency of the prosecution for wire fraud, the Government discovered that Taylor was also part of a mortgage fraud scheme in California. From approximately December 2005 through April 2006, Taylor applied for and received mortgage loans and lines of credit that he used for the purchase and refinance of several real properties in Kingsburg, California. In his mortgage loan and line of credit applications for these properties, Taylor knowingly and fraudulently identified his social security number as a number which he knew was not his social security number in an effort to influence the approval and funding of the loans. Taylor ultimately defaulted on his payment obligations, and the Kingsburg properties were foreclosed. Then, on November 20, 2012, Taylor subsequently filed a petition for bankruptcy using the fraudulent social security number. As a result of Taylor’s false statements for the purpose of obtaining the mortgage loans and lines of credit, Taylor caused lending institutions, including Countrywide Bank, losses of $326,100. Taylor pled guilty to an Information charging him with making false statements to a financial institution.
Pender faces a maximum sentence of 20 years in prison and a fine of $250,000. Taylor faces a maximum sentence of 30 years in prison and a fine of $1 million.
The wire fraud case was investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.The case involving false statements to a financial institution was investigated by the Federal Deposit Insurance Corporation—Office of Inspector General and prosecuted by the United States Attorney’s Offices for the Eastern District of California and the Southern District of Iowa.
(Download Press Release )
Two More Individuals Sentenced for Their Roles in Large-scale Medicare Fraud SchemeRead the Press Release
BATON ROUGE, LA – A facility administrator and mental health therapist have been sentenced for their roles in an extensive Medicare fraud scheme. Chief U.S. District Court Judge Brian A. Jackson sentenced the individuals as follows:
• ARTHUR SMITH, JR., age 32, of Baton Rouge, Louisiana. According to court documents, SMITH was employed at Shifa and Serenity Community Mental Health Centers from in or around 2005 through in or around 2011, and became a managing employee and administrator of Serenity Center in 2008. On numerous occasions, SMITH would falsify documents, including patient records, group progress notes, and other medical documentation, to make it appear as though social workers had provided services and/or treatments to patients, despite the fact that the treatments had not been provided. On September 2, 2014, SMITH was sentenced to a 30-month term of imprisonment, a 2-year term of supervised release following his release from imprisonment, and restitution in the amount of $14,146,106.
• ANNA NGANG, age 56, of Houston, Texas. From in or around 2010 through in or around 2012, NGANG was employed by Shifa Texas as a therapist tasked with conducting group therapy sessions. At the direction of her supervisors, NGANG knowingly participated in the falsification of documents, including patient records, group progress notes, and other medical documentation, so that her supervisors could use the false documents to support false claims to Medicare. On September 2, 2014, NGANG was sentenced to a 10-month term of imprisonment and $52,308 in restitution.
According to documents filed in the case, the investigation into three community mental health centers - Shifa Community Mental Health Center of Baton Rouge, Serenity Center of Baton Rouge, and Shifa Community Mental Health Center of Texas - was opened in 2011, and since then has resulted in the convictions of seventeen (17) individuals employed by the facilities, including therapists, marketers, administrators, owners and the medical director. Over a period of approximately seven years, the companies billed Medicare for partial hospitalization program services for the mentally ill that were unnecessary or never provided. The companies, collectively, submitted more than $258 million in claims to Medicare during this period. Medicare paid approximately $43.5 million on those claims.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Louisiana J. Walter Green, Special Agent-in- Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent-in-Charge Michael Anderson of the FBI’s New Orleans Division, and Louisiana State Attorney General James Buddy Caldwell made the announcement.
The case is being investigated by HHS-OIG, the FBI, and the Medicaid Fraud Control Unit of the Louisiana Attorney General’s Office, 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 Middle District of Louisiana. The case is being prosecuted by Trial Attorneys Abigail Taylor and Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant United States Attorney Shubhra Shivpuri of the U.S. Attorney’s Office for the Middle District of Louisiana.
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 and 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.
Two Illegal Aliens Charged with Immigration ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced today that separate criminal charges were filed today against two illegal aliens.
Juan Torres-Garcia, age 33, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg today. The indictment alleges that Torres-Garcia, previously arrested and deported from the United States in October 2008, knowingly and unlawfully reentered the United States and was apprehended in York County, Pennsylvania.
If convicted, Torres-Garcia faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
Marcelo Barranco-Ramirez, age 25, was charged in a one-count indictment by a federal grand jury in Harrisburg today. The indictment alleges that Barranco-Ramirez, an alien who has previously been arrested and deported from the United States in April 2007, reentered the United States illegally and was apprehended in Adams County, Pennsylvania.
If convicted, Barranco-Ramirez faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
The investigations were conducted by the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and is being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Two Employees of Veterans Affairs Hospital, Including Logistics Warehouse and Mail Center Supervisor, Charged with Conspiracy to Distribute CocaineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Jeffrey G. Hughes, Special Agent-in-Charge, Northeast Field Office, of the Department of Veterans Affairs, Office of Inspector General (“VA-OIG”), and Albert Aviles, Chief of the Department of Veterans Affairs Police Detachment in Bronx, New York, announced that ROBERT TUCKER, of Bronx, New York, and ERIK CASIANO, of West Orange, New Jersey, were arrested yesterday for allegedly engaging in a conspiracy to distribute more than five kilograms of cocaine. The defendants will be presented in Manhattan federal court this afternoon before U.S. Magistrate Judge Ronald L. Ellis.
U.S. Attorney Preet Bharara said: “As alleged, the defendants used the cover of a facility dedicated to caring for our nation’s heroes to further a scheme to distribute large amounts of cocaine. I would like to thank the United States Postal Inspection Service, the Department of Veterans Affairs, Office of Inspector General, and the Department of Veterans Affairs Police for their outstanding work on this case.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “These employees allegedly took advantage of the trust placed in them by their employer and the US Government. Criminals involved in drug trafficking should take note, U.S. Postal Inspectors will vigorously pursue, arrest and bring to justice anyone who uses the US Mail to facilitate the transport of illegal drugs, firearms or drug proceeds.”
VA-OIG Special Agent-in-Charge Jeffrey G. Hughes said: “The arrest of two VA Medical Center employees comes as a result of an outstanding collaborative effort of all the federal agencies involved. The Department of Veterans Affairs, Office of Inspector General is committed to uncovering illegal activities at VA facilities and assisting in the prosecution of those who place their own interest ahead of the safety of both veterans receiving treatment and dedicated VA employees.”
VA Police Chief Albert Aviles said: “Drug abuse is a national epidemic and communities everywhere must be vigilant to suspicious activities. Thanks to vigilance and good police work, we can report today that these drugs are off the street and that the alleged perpetrators of this activity are under arrest. We are grateful to the Postal Inspection Service and our own VA Police staff, for their diligence and professionalism. We are grateful to our community law enforcement partners, for their significant involvement in this investigation. This was truly a team effort and a strong 'win' for law enforcement. Through this effort we can continue to assure a safe environment of care for all of our Veterans.”
According to the Complaint filed today in Manhattan federal court:
Since at least November 2013, the defendants used the United States Postal Service and the mailroom at the Veterans Affairs Medical Center in the Bronx, New York (the “Medical Center”), to receive and distribute narcotics, including cocaine. TUCKER has been employed by the Medical Center since 1997, and has served as the Supervisor of the Logistics Warehouse and Mail Center since 2012. CASIANO has been employed by the Medical Center since 2012 as a pipefitter in the Plumbing Department.
In December 2013, Postal Inspectors in San Juan, Puerto Rico, seized a suspicious package that was addressed to the Medical Center, to the attention of “Warehouse,” and discovered approximately two kilograms of cocaine inside the package.
On four separate occasions in July and August 2014, TUCKER was observed by undercover law enforcement personnel retrieving packages similar in size and weight to the aforementioned package from the Medical Center mailroom. The packages had been sent from San Juan, Puerto Rico, to the Medical Center, to the attention of “Logistic[s] Warehouse.” On each occasion, TUCKER brought the package to his office, and CASIANO subsequently went into TUCKER’s office and retrieved the package’s contents before carrying them out of the Medical Center building. Two of the four packages handled by CASIANO and TUCKER were examined by drug-sniffing dogs prior to delivery and tested positive for the presence of narcotics.
On September 2, 2014, TUCKER was observed on video surveillance retrieving another similarly addressed package from the Medical Center mailroom. TUCKER then brought the package to his office and met in the office with CASIANO, who provided $500 in cash to TUCKER. Thereafter, CASIANO brought the package to his car. As CASIANO attempted to drive out of the Medical Center facility, he was arrested by Postal Inspectors, VA-OIG agents, and DEA agents who seized one kilogram of cocaine from the car.
TUCKER, 64, and CASIANO, 29, are each charged with one count of conspiracy to distribute and possess with intent to distribute a controlled substance, in violation of 21 U.S.C. § 846. They each face a mandatory minimum of 10 years in prison and a maximum of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the USPIS, the Department of Veterans Affairs OIG, the Veterans Affairs Police, the DEA New York Organized Crime Drug Enforcement Task Force, and the Port Authority of New York and New Jersey Police, and thanked the Veterans Affairs Medical Center for its assistance. The DEA’s New York Organized Crime Drug Enforcement Strike Force comprises agents and officers of the U. S. Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, the U.S. Marshals Service, New York National Guard, Office of Foreign Assets Control, and the New York Department of Taxation and Finance.
This case is being prosecuted by the Office’s Narcotics Unit. Assistant United States Attorney Andrew DeFilippis is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Robert Tucker & Erik Casiano Complaint
Theresa Blow Pleads Guilty to Grand Isle EmbezzlementsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Theresa Blow, 65, of South Hero, pled guilty yesterday in United States District Court in Burlington to a charge of federal program embezzlement. U.S. District Judge William K. Sessions III released Blow on conditions pending sentencing, which has been scheduled for February 2, 2015.
Last week, the United States Attorney filed a one-count information charging Blow with embezzling from the Champlain Islands Parent-Child Center, a non-profit pre-school and after-school care center in South Hero for which she served as a contract bookkeeper. Blow pled guilty to that charge today. According to the information, between 2010 and March 2014, Blow embezzled tens of thousands of dollars from the Center by writing without authorization checks that were made payable to herself or to her husband's business, then forging the signature of the authorized signer on the Center's checking account. Blow deposited the forged checks into her personal bank account and used the proceeds for her own benefit.
The information charges that, in roughly the same time frame, Blow also embezzled tens of thousands of dollars from Grand Isle County, for which she served as appointed treasurer. She stole this money by issuing without authorization checks to herself of to her husband's business, then depositing the checks into her personal bank account.
The exact amount of the embezzlements is still under investigation and will be determined by the court at sentencing.
Blow faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Vermont State Police and the Federal Bureau of Investigation.Blow is represented by Mark Kaplan. The prosecutor is Assistant U.S. Attorney Gregory Waples.