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16 October 2014
Gulfport Man, Darryl Williams, Pleads Guilty to Drug Conspiracy and Gun ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRYL WILLIAMS, age 26, a resident of Gulfport, Mississippi, pled guilty today to an indictment charging him with conspiracy to possess with intent to distribute cocaine hydrochloride and being a felon in possession of a firearm.
According to the indictment, beginning on a date unknown and continuing until on or about May 21, 2014, WILLIAMS knowingly combined, conspired, confederated and agreed with persons known and unknown, to distribute and possess with the intent to distribute five hundred grams or more of cocaine hydrochloride. Also, on May 21, 2014, WILLIAMS, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting interstate commerce, a Ruger Model SR40C, .40 caliber semiautomatic handgun.
On the drug count, WILLIAMS faces a minimum term of imprisonment of five years, a maximum term of imprisonment of forty years, a fine of $5,000,000.00, four years of supervised release after imprisonment, and a $100.00 special assessment. On the gun count, WILLIAMS faces a maximum term of imprisonment of ten years, a fine of $250,000.00, three years of supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for February 26, 2015.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Andre’ Jones is in charge of the prosecution.
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Four Prosecutors Receive Attorney General Awards for Somali Pirates CaseRead the Press Release
ALEXANDRIA, Va. – Attorney General Eric Holder presented four Justice Department prosecutors with Attorney General Awards at a ceremony yesterday in Washington, D.C., in recognition of the team’s outstanding work in securing the convictions of multiple defendants for engaging in piracy off the coast of Somalia.
“With this important event, we come together to honor some of our nation’s most distinguished, dedicated, and deserving public servants,” said Attorney General Holder. “The hard work and impressive achievements of these 278 award recipients have inspired their colleagues at every level of the U.S. Department of Justice—including me. Their leadership has been indispensable in defining the past year as one of historic accomplishment in the face of nearly unprecedented challenge.”
“This prosecution demonstrates our commitment to obtaining justice for victims of piracy affecting the United States and the international community, and it sends a strong message that Somali pirates and their land-based leaders are not beyond the reach of U.S. and international law,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to commend the prosecution team, along with our investigative partners and legal support staff, for their ground-breaking work in securing these important convictions.”
The John Marshall Award for Trial of Litigation was presented to Managing Assistant U.S. Attorney Benjamin L. Hatch and Assistant U.S. Attorneys Joseph E. Depadilla and Brian J. Samuels of the Eastern District of Virginia, along with Trial Attorney Paul G. Casey from the Justice Department’s National Security Division, for their performance in prosecuting 14 sea-based Somali pirates and one land-based Somali pirate leader for their role in the capture and murders of four Americans onboard the sailboat Quest on Feb. 22, 2011.
These prosecutions resulted in two separate trials, one involving defendant Mohammad Saaili Shibin, followed by a two-month capital trial involving three defendants (Ahmed Muse Salad, Abukar Osman Beyle, and Shani Nurani Shiekh Abrar).
Shibin was the first Somali-based pirate leader ever brought to trial in the United States, and his case was the first time that U.S. piracy laws had ever been applied to a person who did not himself go onto the high seas to commit violent acts of piracy, but rather, facilitated those acts from the relative safety of Somalia. The prosecution team secured convictions on all counts and Shibin was sentenced to serve more than 12 life sentences.
In the second trial, all three defendants who were found guilty on 26 counts of the indictment. The district court subsequently imposed 19 consecutive life sentences, two concurrent life sentences, and a 30-year consecutive term in prison for each defendant.
These annual awards recognize Justice Department employees and other individuals for their dedication to carrying out the Department’s mission. The John Marshall Awards are the Department’s highest awards offered to attorneys, for contributions and excellence in specialized areas of legal performance.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
Foundry Owner Sentenced to 30 Months in Prison for $11 Million Scheme to Sell Fake Sculptures Attributed to Jasper Johns and Other Prominent ArtistsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that BRIAN RAMNARINE was sentenced in Manhattan federal court to 30 months in prison for fraudulently selling and attempting to sell, for more than $11 million, bronze sculptures that he falsely represented to be works of art by prominent artists Jasper Johns, Robert Indiana, and Saint Clair Cemin. RAMNARINE pled guilty in January 2014, on the fifth day of trial, before U.S. District Judge John G. Koeltl, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Brian Ramnarine’s only art was as a con artist who concocted and carried out not one, but three separate schemes to peddle fake sculptures to unsuspecting buyers for millions of dollars, pretending that they had been made by well-known artists. I would like to thank the Federal Bureau of Investigation, the Police Department of the Port Authority of New York and New Jersey, and the New York State Police for their assistance on this case.”
According to the Indictment, to which RAMNARINE pled guilty, evidence presented at trial, and statements made in Manhattan federal court:
In 1960, Jasper Johns created a painting titled “Flag,” which he gave to fellow artist and friend Robert Rauschenberg. Years later, Johns made a mold (the “Flag Mold”) from that painting in order to make a sculpture. In 1990, Johns provided the Flag Mold to RAMNARINE, who owned a Queens, New York, foundry. Johns instructed RAMNARINE to use the Flag Mold to make a wax cast. RAMNARINE completed the wax cast and gave it to Johns, but never returned to Johns the Flag Mold from which the wax cast was made.
In 2010, RAMNARINE began representing to various members of the art world that he owned a bronze sculpture, titled “Flag,” that was an authorized Jasper Johns work of art created in 1989 (the “Purported 1989 Bronze Sculpture”). In an effort to identify a purchaser for the Purported 1989 Sculpture, he showed it to a representative of an auction house who specialized in the sale of rare art, and to an art dealer. Around the same time, RAMNARINE also attempted to sell the Purported 1989 Bronze Flag directly to an art collector. At RAMNARINE’s direction, several art brokers were in frequent contact with the art collector, and with the art collector’s representative, regarding the possible sale of what was represented to be a genuine and authorized Jasper Johns work of art. Through an art broker to whom RANMARINE had shown the Purported 1989 Bronze Sculpture, RAMNARINE informed the art collector’s representative that he would sell it for approximately $11 million.
After the art collector expressed doubts about the authenticity of the Purported 1989 Bronze Sculpture, RAMNARINE provided false and fraudulent documents and information in an effort to deceive the art collector into believing that the artwork was genuine. For example, RAMNARINE stated that the Purported 1989 Bronze Sculpture was a gift from Johns. To support that assertion, RAMNARINE provided an art broker with a letter dated August 23, 1989, purportedly from Johns, along with other documents that falsely and fraudulently reflected that the Purported 1989 Bronze Sculpture was a genuine Johns work of art, and that it was owned by RAMNARINE.
In truth, the Purported 1989 Bronze Sculpture was a fake. Johns never authorized its production nor did he transfer ownership to RAMNARINE. Instead, against Johns’s earlier instructions and without authorization, RAMNARINE used the original Flag Mold provided by Johns to make the Purported 1989 Bronze Flag, dated it “1989,” and forged Johns’s signature on the back of the sculpture.
RAMNARINE was arrested in November 2012 on charges arising from his attempt to sell the Purported 1989 Bronze sculpture. Shortly after his arrest and while he was on bail, RAMNARINE engaged in two new schemes to defraud an online art gallery located in Queens (the “Gallery”). In particular, RAMNARINE sold to the Gallery two fake sculptures, titled “Two” and “Orb,” that he falsely claimed had been made and authorized by Robert Indiana, and numerous fake sculptures that he falsely claimed had been made and authorized by Saint Clair Cemin. The Gallery paid RAMNARINE tens of thousands of dollars for the phony sculptures.
In addition to the prison sentence, RAMNARINE, 60, of Queens, New York, was sentenced to three years of supervised release, and ordered to forfeit $34,250 and the fake sculptures and to pay $34,250 in restitution to his victims.
Mr. Bharara praised the Federal Bureau of Investigation for its outstanding work in the investigation. He also thanked the Port Authority of New York/New Jersey Police Department and the New York State Police for their assistance.
The case is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office. Assistant United States Attorney Daniel B. Tehrani is in charge of the prosecution.
Fort Walton Beach Man Sentenced to Prison AndRead the Press Release
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ORDERED TO PAY $1.2 MILLION IN RESTITUTION
FOR TAX CRIMES, MAIL FRAUD, AND CONSPIRACPENSACOLA, FLORIDA – Douglas Edward Henderson, 52, of Fort Walton Beach, Florida, was sentenced yesterday evening to prison and ordered to pay over $1.2 million in restitution following his guilty plea to an Information that charged five counts of submitting a false tax return, two counts of aiding in the preparation of a false tax return, one count of mail fraud, and one count of conspiracy to commit mail and wire fraud. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The charges were the result of an investigation by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Tiffany Eggers.
The government’s evidence showed that Henderson, as the president of Henderson Electric Heat and Air Conditioning and Henderson Electric, Inc., both located in Okaloosa County, Florida, caused over $1.8 million in personal expenses to be paid from the business accounts for the years 2008 through 2010 and caused their false classification as business expenses associated with contracts between his companies and MacDill Air Force base. These items were then falsely deducted on corporate tax returns and the personal income was never reported on Henderson’s individual income tax returns.
The government’s evidence further showed that while Henderson knew he was the subject of a federal grand jury investigation, he engaged in a fraudulent short sale of his condominium located in Miramar Beach, Florida, using a family trust and the cooperation of Henderson Electric’s then chief financial officer.
Chief U.S. District Court Judge M. Casey Rodgers sentenced Henderson to 15 months in prison followed by three years of supervised release, the first six months of which must be served on home confinement. Judge Rodgers also ordered Henderson to pay $779,122 in restitution to the Internal Revenue Service and $449,061 to the mortgage lender defrauded during the short sale.Fort Thompson Man Found Guilty of Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Santana Drapeau, age 22, of Fort Thompson, South Dakota, was convicted of two counts of Domestic Assault by a Habitual Offender and one count of Simple Assault as a result of a 2-day federal jury trial in Pierre, South Dakota. The guilty verdict was returned on October 10, 2014.
The Defendant was found not guilty of assault by strangulation.
Each habitual domestic assault conviction carries a maximum penalty of 5 years of imprisonment and/or a $250,000 fine. The simple assault conviction carries a maximum penalty of 1 year imprisonment and/or a $100,000 fine.
The conviction stems from incidents occurring on May 18, 2014, in which Drapeau assaulted his spouse and intimate partner at two different locations, by hitting the victim in the face at a bonfire and physically assaulting her at a residence. Drapeau committed these two assaults at a time when he had three final convictions in Crow Creek Sioux Tribal Court for domestic violence against the same victim.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
A presentence investigation report was ordered, and a sentencing date was set for December 22, 2014.
Drapeau was remanded to the custody of the U.S. Marshals Service pending sentencing.
Former Williamson Mayor and Bank of Mingo Official Sentenced for Lying to Federal AgentsRead the Press Release
Charleston, W.VA. – The former Mayor of Williamson, A. Darrin McCormick, was sentenced to three years of probation and a fine of $5,000 for making a materially false statement to the FBI in February 2013. McCormick lied to federal agents in the course of an investigation of suspicious banking activity by Aracoma Contracting, LLC.
In addition to being the Mayor of Williamson, McCormick was a bank manager for the Bank of Mingo in Williamson. Aracoma, a contract labor company in Williamson, had a line of credit at the Bank of Mingo. Federal agents were investigating a series of suspicious cash withdrawals by two of the principals of Aracoma, Jerome Edward Russell and Frelin R. Workman. Banks are required by federal law to report all cash transactions involving more than $10,000 to the IRS. Russell, Workman and others, regularly withdrew cash from the Bank of Mingo in amounts less than $10,000 to prevent triggering the reporting requirement and evade the payment of payroll taxes. This practice, known as “structuring” is a federal crime.
On February 19, 2013, special agents of the FBI and IRS asked McCormick if he was aware that multiple Aracoma employees had come into the Bank of Mingo at the same time to withdraw cash. McCormick denied knowledge of Aracoma’s structuring practices, though he was well aware of them.
After the sentencing, U.S. Attorney Booth Goodwin commented, “Lying to federal investigators is always a serious crime, but when a public official lies in a federal criminal inquiry, it’s especially disappointing. To put it simply, this defendant knew better. He was a high-ranking bank executive and the mayor of Williamson. The bank misconduct that he lied about allowed others to commit crimes including bribery and large-scale fraud. Instead of helping uncover and stop those crimes, he lied to help cover them up.” McCormick pled guilty in May 2014.
The FBI and IRS, assisted by the West Virginia State Police and FDIC, handled the investigation and prosecution of McCormick .
Former Hughestown Borough Police Officer Sentenced to 30 Months’ ImprisonmentRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that that United States District Court Judge Malachy E. Mannion has sentenced Robert F. Evans, Jr., age 39, of Moosic, Pennsylvania, to 30 months’ imprisonment. On July 15, 2014, Evans pleaded guilty to a one-count Criminal Information charging that he distributed oxycodone on numerous occasions between August 2012 and July 29, 2013. At the time of the offense, Evans was employed as a police officer with the Hughestown Borough Police Department.
According to United States Attorney Peter Smith, at the guilty plea hearing, Evans acknowledged distributing approximately 750 oxycodone pills during the scheme. He also admitted abusing his position of trust as a police officer which significantly facilitated and concealed the offense.
In addition to the imprisonment term, Judge Mannion ordered that Evans serve a three-year term of supervised release after completion of his prison sentence.
The case was investigated by special agents of the Federal Bureau of Investigation. Assistant U.S. Attorney John Gurganus prosecuted the case.
Former Hedge Fund Analyst Sentenced to Five Years in Prison for Participating in Insider Trading SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MATTHEW TEEPLE, a former analyst for San Francisco-based hedge fund Artis Capital Management, L.P. (“Artis”), was sentenced today to five years in prison for participating in an insider trading scheme that yielded tens of millions of dollars in ill-gotten gains. When he pled guilty in May 2014, TEEPLE admitted that in 2008 he repeatedly gathered and passed to Artis inside information about Foundry Networks, Inc. (“Foundry”), a technology company located in Santa Clara, California, which he had obtained from David Riley, Foundry’s Chief Information Officer at the time. This inside information included the fact – before it became public on July 21, 2008 – that Brocade Communications, Inc. (“Brocade”) was planning to acquire Foundry. On October 2, 2014, following a 13-day jury trial before U.S. District Judge Valerie E. Caproni, Riley was convicted of crimes related to his role in the scheme with which he and TEEPLE were charged together. TEEPLE’s sentence today was imposed by U.S. District Judge Robert P. Patterson, who accepted TEEPLE’s guilty plea in May.
Manhattan U.S. Attorney Preet Bharara said: “Matthew Teeple flagrantly and repeatedly traded on inside information he received from a Foundry Networks, Inc. insider and convicted tipster, David Riley. With today’s sentence, Teeple joins a growing group of professionals who have forfeited their freedom for making a mockery of market rules.”
According to the agreement pursuant to which TEEPLE entered his plea of guilty, other documents filed in Manhattan federal court, and statements made during court proceedings:
From 2005 and continuing through 2008, TEEPLE gathered from Riley sensitive, nonpublic information about Foundry – specifically, its monthly and quarterly sales data and secrets relating to its impending acquisition by Brocade. As CIO and a Vice President at Foundry, Riley had access to Foundry’s sales performance numbers well before they became public and – along with only a handful of other Foundry employees – learned of the Brocade deal before it was announced publicly. TEEPLE gathered these sales- and Brocade-related secrets from Riley over the telephone and in meetings the two held in the San Jose, California, area. On several occasions, TEEPLE spoke with Riley while Riley was logged into the database that Foundry used to maintain sensitive financial information.
TEEPLE passed the inside information he received from Riley on to others, including others at Artis. From the inside information TEEPLE provided about Foundry, Artis ultimately reaped gains and avoided losses of over $36 million.
In addition to the prison sentence he received today, TEEPLE, 43, of San Clemente, California, was sentenced to one year of supervised release. TEEPLE was also ordered to forfeit $553,890.00 in illegal proceeds and to pay a $100,000 fine. Restitution will be determined at a later date.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Telemachus P. Kasulis and Sarah E. McCallum, and Special Assistant U.S. Attorney Michael P. Holland, are in charge of the prosecution.
Former FBI Ten Most Wanted Fugitive Pleads Guilty to MurderRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Juan Garcia, also known as “Cruzito,” a member of La Mara Salvatrucha, also known as the MS-13 street gang, pled guilty to murder in aid of racketeering. During the guilty plea allocution, Garcia admitted that he and another MS-13 member shot and killed 19-year-old Vanessa Argueta, and a third MS-13 member executed her two-year-old son, Diego Torres, in Central Islip, New York, on February 5, 2010. As detailed in prior court proceedings and filings, after committing the murders, Garcia and his co-conspirators, Adalberto Ariel Guzman (“Gringo”) and Rene Mendez Mejia (“Zorro”), fled to El Salvador. Garcia was a fugitive for over four years until March 2014, when, after being placed on the FBI’s Ten Most Wanted Fugitives List, he surrendered to law enforcement authorities in Nicaragua, waived extradition, and was returned to the United States for prosecution.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Thomas C. Krumpter, Acting Commissioner of the Nassau County Police Department.
“After cold-bloodedly executing a young mother and her two-year-old child, Garcia and his fellow MS-13 members fled to El Salvador. For over four years, Garcia was able to evade justice, hiding out in different parts of Central America. However, thanks to the tenacious efforts of the FBI’s Long Island Gang Task Force and FBI components around the world, Garcia was captured, returned to the United States, and held accountable for his reprehensible acts. He will now be held accountable for his allegiance to the killing machine known as MS-13,” stated United States Attorney Lynch. Ms. Lynch expressed her sincere gratitude to the members of the FBI’s Long Island Gang Task Force, the FBI’s Violent Criminal Threat Section, and the FBI’s Legal Attaches for El Salvador and Panama, for their unwavering commitment to bring Garcia and his co-conspirators to justice for the Argueta and Torres murders.
FBI Assistant Director-in-Charge Venizelos stated, “The MS-13 street gang is infamous for its senseless and depraved acts of violence, but even for the MS-13, these vicious crimes demonstrated exceptional immorality. Stopping at nothing to seek retribution, Garcia and other gang members lured Argueta and her two-year-old son into a secluded wooded area where retribution took the form of murder. After more than four years on the run, Garcia finally faces the justice he couldn’t escape. Today’s guilty plea should remind these exceedingly violent criminals that we remain committed to working with our local, state, national, and international partners to disrupt and dismantle this violent gang.”
As established at prior court proceedings, Garcia and other MS-13 members, including MS-13 leader, Heriberto Martinez, also known as “Boxer,” Guzman, and Mejia plotted to kill Argueta because they believed she had disrespected the MS-13 by sending rival gang members to attack Garcia. On February 4, 2010, when Garcia, Guzman, and Mejia planned to kill Argueta, she was with her son, and the MS-13 members decided to murder him as well. Garcia, Guzman, and Mejia lured Argueta and Torres into a secluded wooded area in Central Islip, where they executed the mother and child, shooting Argueta in the head and chest, and Torres twice in the head. Specifically, the evidence establishes that Garcia and Mejia shot and killed Argueta, while Guzman fired the two fatal shots to Torres’s head. After they murdered Argueta and Torres, Garcia, Guzman, and Mejia fled to El Salvador.
Garcia’s three co-conspirators, Martinez, Guzman, and Mejia were also arrested and indicted in connection with the Argueta and Torres murders. Martinez was convicted in March 2013, following a six-week trial, and later sentenced to life in prison, plus 60 years. Guzman was convicted in September 2013, following a three-week trial, and later sentenced to life in prison, plus 35 years. Mejia pled guilty to the murders and is pending sentence.
The convictions of Garcia and his codefendants are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador and Honduras. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2003, more than 250 MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 150 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 20 murders in the Eastern District of New York, and has convicted more than 35 MS-13 members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, and Suffolk County Police Department.
When Garcia is sentenced by United States District Judge Joseph F. Bianco, which is currently scheduled for February 6, 2015, he faces a sentence of up to life in prison.
The government’s case is being prosecuted by Assistant United States Attorneys John J. Durham and Raymond A. Tierney.
The Defendant:
JUAN GARCIA, also known as “Cruzito”
Baldwin and Inwood, New York
Age: 21
Former Executive of Japanese Automotive Parts Manufacturer Indicted for Role in Conspiracy to Fix PricesRead the Press Release
A Cincinnati federal grand jury returned a one-count indictment against a former executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to allocate markets and fix prices of pinion-assist type electric powered steering assemblies, the Department of Justice announced today.
The indictment, filed yesterday in the U.S. District Court for the Southern District of Ohio charges Akira Wada, a former executive of Showa Corporation, with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate markets, and to fix, stabilize, and maintain the prices of pinion-assist type electric powered steering assemblies sold to Honda in the United States and elsewhere. Wada was the Manager and then General Manager of Sales Department 1 at Showa from at least as early as 2003 until at least June 2009. In 2013 Wada became a Director and Operating Officer of Showa.
“Yesterday’s indictment again demonstrates that antitrust violations are not just corporate offenses but also crimes by individuals,” said Bill Baer, Assistant Attorney General for the Antitrust Division. “The division will continue to vigorously prosecute executives who circumvent the law in order to maximize profits by harming consumers.”
The indictment alleges, among other things, that from at least as early as 2007 and continuing until at least September 2012, Wada and his co-conspirators participated in meetings, conversations, and communications to discuss the market allocation scheme and price quotations to be submitted to Honda in the United States and elsewhere. It alleges that Wada and his co-conspirators submitted price quotations in accordance with the agreements reached at these meetings. Wada also directed, authorized, or consented to the participation of subordinate employees in the price fixing conspiracy.
Showa is a Japanese company with its principal place of business in Saitama, Japan. Showa was engaged in the business of manufacturing and selling pinion-assist type electric powered steering. On June 10, 2014, Showa pleaded guilty and agreed to pay a $19.9 million criminal fine for its role in the conspiracy.
Including Wada, 44 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing and bid rigging in the auto parts industry. Twenty-six of these individuals have pleaded guilty and have been sentenced to serve prison terms ranging from a year and one day to two years. Additionally, 29 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of nearly $2.4 billion in fines.
Wada is charged with market allocation and price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Yesterday's indictment is the result of an ongoing federal antitrust investigation into market allocation, price fixing, bid rigging, and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Cincinnati Field Office at 513-421-4310.
Former Engineer at Two Global Medical Technology Corporations Sentenced to 18 Months in Prison for Theft of Trade SecretsRead the Press Release
TRENTON, N.J. – An engineer who formerly lived in Mahwah, New Jersey, was sentenced today to 18 months in prison for stealing trade secrets from two global medical technology companies based in northern New Jersey, U.S. Attorney Paul J. Fishman announced.
Ketankumar Maniar, 38, aka “Ketan Maniar,” previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with two counts of theft and attempted theft of trade secrets for his own economic benefit. Maniar, an Indian national, has been in custody since his June 2013 arrest. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
C.R. Bard Inc. (Bard), based in Murray Hill, New Jersey, and Becton, Dickinson and Co. (BD), based in Franklin Lakes, New Jersey, are among the world’s leading manufacturers of medical technologies. From November 2004 until his resignation on Jan. 22, 2011, Maniar worked as an engineer at Bard’s Salt Lake City facility and was responsible for developing molding processes and specifications for catheters, ports and other medical products. From February 2012 until his resignation on May 24, 2013, Maniar worked as a staff engineer at BD’s Franklin Lakes headquarters, where he helped manufacture pre-fillable syringes and pen injectors.
Through his work at Bard and BD, Maniar was able to steal secret information related to the companies’ products, including Bard’s development of the first implantable port used for power injection of pharmaceutical drugs throughout the body. Maniar also had access to secret information related to a self-administered disposable pen injector still under development by BD and not yet available for commercial sale.
Maniar admitted he stole Bard and BD trade secrets that he kept after his resignation from those companies. Maniar downloaded numerous files containing Bard or BD product information from his work computers onto multiple computer storage devices, including external hard drives and thumb drives. He also used his work email accounts at Bard and BD to forward trade secrets to his personal email accounts.
On June 3, 2013, pursuant to court-issued federal warrants, FBI agents searched Maniar’s rental car and the New Jersey hotel room he stayed in while planning a move back to India. Agents seized – among other things – at least one hard drive containing Bard and BD trade secrets.
In addition to the prison term, Judge Pisano ordered Maniar to pay $32,454 in restitution to BD and ordered him to forfeit items used in furtherance of his crimes, including computers and storage devices.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, New Jersey, with the investigation leading to today’s sentencing. He also thanked BD and Bard for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark.
Defense counsel: Bradley L. Henry Esq. and Ryan Blanch Esq., New York
14-373Former Employee Charged with Defrauding Smucker of $4.1 MillionRead the Press Release
A former employee was charged with mail fraud for a 16-year scheme to defraud J.M. Smucker Company, of Orville, Ohio, of more than $4.1 million, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Mark R. Kershey, age 54, of Akron and formerly of Massillon, was employed as Smucker’s chief airplane mechanic at the Akron-Canton airport when, from approximately October 1997 through January 2013, he devised a false billing scheme using a fictitious entity he controlled, under the name of Aircraft Parts Services, Co., according to the one-count criminal information filed in federal court.
Kershey submitted false invoices to Smucker in the name of Aircraft Parts Services, which in all or nearly all instances were for nonexistent parts and/or for purported outside services that he actually performed as part of his salaried employment duties. Kershey submitted most invoices in amounts less than $10,000, which he was authorized to approve. A supervisor approved a few larger invoices based on his trust in Kershey, according to the information.
Kershey maintained a P.O. Box under the fake company name in Greentown, Ohio, to receive checks mailed by Smucker in reliance on the fraudulent invoices. Kershey used the proceeds of his scheme for personal uses, including the purchase and maintenance of two airplanes, the purchase of several automobiles, and payments for his personal residence, according to the information.
The information describes Kershey’s efforts in late 2012 to deceive Smucker with respect to the final three checks payable to Aircraft Parts Services totaling $44,000, which Kershey had failed to negotiate. Kershey told the employee that Aircraft Parts Services had been sold to another Smucker vendor (referred to in the information as SAI), and submitted a letter to Smucker purportedly from SAI’s owner, that Kershey fabricated and forged, falsely confirming the purported sale to SAI. Smucker then issued replacement checks to SAI, that SAI deposited after discussion between Kershey and SAI’s owner.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
In addition, the information seeks forfeiture from Kershey of his two airplanes, three automobiles, and a truck, which are alleged to be proceeds traceable to his mail fraud scheme.
The case is being handled by Special Assistant United States Attorney John M. Siegel following investigation by the Federal Bureau of Investigation, Canton, Ohio.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Former Dallas Police Department Vice Detective ConvictedRead the Press Release
DALLAS — A detective who worked in the Dallas Police Department’s (DPD) Vice Unit, Jose Luis Bedoy, 40, of Dallas, was convicted yesterday by a federal jury on all four counts of an indictment charging obstruction of official proceedings and obstruction of the due administration of justice, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each of the three counts of obstruction of an official proceeding carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The one count of obstruction of due administration of justice carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Bedoy will remain on bond pending sentencing, which is set for February 2015, before U.S. District Judge Barbara M. G. Lynn.
Bedoy worked in DPD’s Vice Unit from November 28, 2007 through July 2013. The government presented evidence at trial that in early 2009, after a DPD Vice raid on an adult entertainment establishment, Bedoy met a female prostitute who worked at that establishment. Later, when she tried to reclaim property DPD seized during the raid, Bedoy assisted her.
Bedoy later contacted her and expressed an interest in seeing her and wanting a massage from her. A relationship ensued between the two and they began communicating, with Bedoy giving her advice on the adult entertainment establishments at which she could work. Bedoy later met her for a massage, and during the massage, he explained how to screen her clients to avoid being arrested. Bedoy and the female began an intimate relationship.
From 2009 until 2013, while they were engaged in a sexual relationship, Bedoy provided law enforcement-sensitive information to her about DPD Vice Unit prostitution raids and other enforcement actions. In January 2013, Bedoy met her at her residence and showed her a DPD investigative case file targeting “Wet,” an adult entertainment establishment, which he had brought with him. Two days later, Wet was raided, and after the raid, Bedoy arranged to meet her at her residence.
When the Coppell Police Department began an investigation of “Studio Serene,” an adult entertainment establishment, it enlisted the help of the DPD Vice Unit in its investigation. In March 2013, Bedoy advised the female that Studio Serene was being targeted and advised her against working there. Bedoy told her that the information was only for her benefit, but she relayed the information to Studio Serene’s owner. Based on that information, Studio Serene closed for a number of days.
After it reopened on April 25, 2013, however, the Coppell Police Department and the DPD Vice Unit raided Studio Serene. In subsequent interviews they conducted, members of the Coppell Police Department were informed that a DPD Vice Unit detective, named “Jose,” later identified as Bedoy, had “tipped off” the business weeks earlier about the pending raid.
On multiple occasions, Bedoy instructed the female on how to avoid being arrested while using Backpage.com for prostitution. He advised her to not only change her phone number every two weeks, but also advised her of the best days and times to work and the best days and times to avoid. On June 25, 2013, Bedoy contacted her to ensure that she wasn’t working Backpage.com during that week because DPD Vice was “working Backpage” that week. In fact, that same day, DPD Vice Unit, including Bedoy, and the FBI conducted a joint operation that was designed to deter prostitution by directing enforcement efforts at Internet-based prostitution.
As a result of Bedoy’s conduct, FBI and federal grand jury investigations were initiated. After learning of the investigation, Bedoy obstructed the federal grand jury proceeding by telling the female to move, to never give her real name if she is pulled over by law enforcement, to not let the FBI into her apartment to talk to her, and to change her cell phone so that there would be no link between them. Bedoy also lied to law enforcement about his contacts with the female and whether he provided her with sensitive law enforcement information.
The FBI and the DPD’s Public Integrity Unit investigated. Assistant U.S. Attorneys Errin Martin and P.J. Meitl prosecuted.
Former City of Buffalo Employee Sentenced for Stealing Thousands of Dollars from Parking metersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Franklin Lopez, 34, of Buffalo, N.Y., who was convicted of stealing thousands of dollars from the City of Buffalo, a Governmental agency which receives federal funding, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $69,000 in restitution.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was employed part time as a coin collector in the City of Buffalo Department of Parking Enforcement between 2002 and 2011. In this capacity, Lopez was responsible for collecting coins deposited into parking meters.
“This investigation demonstrated that what began as thefts of nickels and dimes, in the end cost taxpayers hundreds of thousands of dollars,” said U.S. Attorney Hochul. “In fact, since these defendants were removed from their positions, the City of Buffalo has seen an increase of over $700,000 in parking meter revenues. Let this case serve as a warning that we will continue to pursue any official who violates a duty to the public.”On August 16, 2011, Buffalo Police found over $1,300 in coins inside the defendant's work vehicle, money that was supposed to be deposited into the city treasury. Further investigation, including a review of Lopez's banking records, revealed a substantial amount of cash deposits and cash payments for a variety of items. Between November 2002 and August 2011, Lopez stole approximately $69,000 from city parking meters.
Lopez is the fourth employee of the Department of Parking Enforcement to be convicted and sentenced in this case. James Bagarozzo was convicted of stealing over $200,000 from Buffalo parking meters and sentenced to 30 months in prison. Bagarozzo was also ordered to pay $210,000 in restitution. Lawrence Charles has also been convicted of stealing over $10,000 from Buffalo parking meters and was sentenced to six months and prison and ordered to pay $15,000 in restitution. Francis Tronolone was convicted of stealing $9,000 in coins from city parking meters and was sentenced to six months in prison and ordered to pay $9,000 in restitution. The amount of money proven to be stolen by these convicted defendants exceeds $300,000.
The sentencing is the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Former Altamont, Illinois, Man Faces Federal Computer Harassment and Extortion ChargesRead the Press Release
Follow @SDILNewsA federal grand jury in Benton, Illinois, has charged Stephen B. Mislich, 23, of Bowling Green, Ohio, and formerly of Altamont, Illinois, with 4 counts of computer-related harassment and extortion offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The criminal complaint and indictment allege that Mislich engaged in a pattern of terrorizing women via “hacked” online accounts, misappropriating sexually oriented photos of these women and attempting to obtain further sexually oriented pictures and videos from the women by coercion and blackmail. Mislich faces up to 2 years in federal prison on each of the two extortion charges against him, and up to 5 years in federal prison on each of the two harassment charges against him. He also faces a potential $250,000 fine on each of the four counts against him. Upon his arrest, a Federal Magistrate Judge in the Northern District of Ohio ordered that Mislich be held without bond pending his trial on these charges.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The case was investigated by the Federal Bureau of Investigation, the Effingham, Illinois, Police Department and the Effingham County Sheriff’s Department. Anyone who may believe that they are a potential victim of this case, or any other similar circumstance, is requested to call one of these law enforcement agencies for assistance. The case is assigned to Assistant United States Attorney Thomas E. Leggans.
Federal Grand Jury Charges San Angelo, Texas, Psychiatrist with 52 Counts of Health Care FraudRead the Press Release
LUBBOCK, Texas — A licensed psychiatrist, who submitted claims for services rendered to nursing home residents in San Angelo, Texas, and other communities in the counties surrounding Tom Green County, Texas, is in federal custody on charges that he defrauded Medicare and Medicaid of nearly $1.75 million, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Robert Hadley Gross, who is licensed by the Texas Medical Board with a primary practice in psychiatry, is charged in an indictment returned yesterday by a federal grand jury in Lubbock, Texas, with 52 counts of health care fraud. Gross was arrested yesterday evening at his office in San Angelo and is scheduled to make his initial appearance before a U.S. Magistrate Judge today in Abilene, Texas.
The indictment alleges that beginning in approximately January 2009 and continuing to approximately June 20, 2014, Gross ran a scheme to defraud Medicare and Medicaid, and other health insurance carriers, by filing claims for payment for services that were never rendered and for services that were billed using inappropriate CPT codes. When submitting a claim, the provider identifies the type of service performed in each submitted claim by means of a code for the type of service listed in the American Medical Association’s publication called the Current Procedural Terminology (CPT) Manual. This five-digit code dictates the amount of payment the provider receives for the rendered service.
In addition to regularly submitting claims for services rendered to nursing home residents, Gross also regularly submitted claims for services provided to clients of mental health and mental retardation (MHMR) organizations in San Angelo, Midland, and Abilene, Texas, in addition to claims for services rendered to patients in his office in San Angelo. In addition, during 2009 and 2010, Gross submitted claims for services provided to foster care children in Brownwood, Texas.
As part of his scheme, according to the indictment, Gross, for numerous dates of service, filed claims for services rendered which, for each of those dates, would entail Gross spending more time than his typical workday. In many instances involving his nursing home, MHMR and office patients, Gross upcoded claims for services for patients with whom he actually had contact. Upcoding is a fraudulent practice in which a provider claims a higher level CPT procedure code than was actually performed, resulting in a higher payment to the provider.
Gross, in numerous instances involving his nursing home patients, filed claims for services on dates he did not actually see the patients. In those instances, the patient may have been present at the nursing home at the time of his visit, or the patient may have died or been discharged before Gross’ visit.
Counts one through five of the indictment allege that Gross submitted claims to Medicaid and Medicare for services allegedly rendered on days in April and May 2014, to patients at MHMR and nursing home facilities, which Gross could not have rendered during the limited amount of time he was at the facilities.
Count six alleges that on March 20, 2013, Gross submitted a claim to Medicaid and Medicare for services allegedly rendered to a patient at a nursing home in San Angelo on the patient’s actual date of death, when, in fact, the patient had been discharged from the nursing home the previous day and admitted to the hospital where the patient died.
Counts seven through 52 allege that on various dates ranging from March 26, 2009, to July 20, 2012, Gross submitted claims to Medicare and Medicaid for services allegedly rendered after patients had died.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each of the 52 counts of health care fraud carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. In addition, the indictment includes a forfeiture allegation that would require Gross, upon conviction, to forfeit: 1) at least $1.75 million in a money judgment for the proceeds traceable to the commission of each offense; 2) approximately $3 million in cash seized from various bank accounts in San Angelo and in Ft. Washington, Pennsylvania, as well as from T. Rowe Price accounts; and 3) three parcels of real estate in San Angelo and Rockport, Texas.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, and Medicaid Fraud Control Unit, Office of the Texas Attorney General are investigating. Assistant U.S. Attorney Ann Cruce-Haag is handling the prosecution, and Assistant U.S. Attorney John de la Garza is handling the forfeiture.
FBI Seeks the Public’s Assistance in Locating Fugitive Wanted on Federal Criminal Charges and Offers up to $5,000 Reward for Information That Leads to His ArrestRead the Press Release
The FBI is seeking the public’s assistance in locating DARRELL BARHAM who is wanted for his alleged involvement in a heroin trafficking and distribution enterprise comprised of members and associates of the "Bricks R Us" street gang, which operated in Allegheny County, Pennsylvania. The FBI is offering a reward of up to $5,000 for information that leads to BARHAM’s arrest. The reward is available for 90 days.
A Federal arrest warrant was issued for DARRELL BARHAM on May 22, 2014, by the United States District Court, Western District of Pennsylvania, charging him with Conspiracy to Possess with Intent to Distribute and Distribution of One Kilogram or More of Heroin. BARHAM should be considered ARMED AND DANGEROUS AND AN ESCAPE RISK. A link to the wanted poster created for BARHAM is listed below.
“We know all too well the destructive effect that heroin and other drugs have on our neighborhoods,” said Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Field Office. “I encourage anyone with information concerning the whereabouts of BARHAM to call the Pittsburgh Division of the FBI at (412) 432-4000.”
On May 29, 2014, law enforcement personnel from over fourteen (14) federal, state, and local law enforcement agencies arrested thirty-nine (39) individuals for their alleged involvement in a heroin trafficking and distribution enterprise comprised of members and associates of the "Bricks R Us" street gang. The arrests resulted in the dismantling of several overlapping and interrelated heroin distribution networks operating in Southwestern Pennsylvania.The arrests were the result of a long-term, multi-agency investigation conducted by the Greater Pittsburgh Safe Streets Gang Task Force (GPSSGTF) and the investigative partnership between the Federal Bureau of Investigation, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Allegheny County Police Department, Monroeville Police Department, Pennsylvania Office of the Attorney General-Bureau of Narcotics Investigations, Munhall Police Department, Duquesne Police Department, West Mifflin Police Department, Pittsburgh Bureau of Police, and Pennsylvania State Police. Representatives from the Kittanning Police Department, Port Authority of Allegheny County Police Department, Penn Hills Police Department, U.S. Marshal Service, and Indiana Police Department, also participated in the arrests on May 29, 2014.
BARHAM remains at large and is wanted by the FBI.
http://www.fbi.gov/wanted/cei/darrell-barham/view
An arrest warrant is based on an indictment or complaint, which is an accusation that a defendant has committed a violation of the federal criminal laws and, in itself, is not proof of the defendant’s guilt. All defendants are presumed innocent until such time as they are adjudicated guilty in a court of law.
Anyone with information regarding this fugitive may contact the FBI Pittsburgh Field Office, 24 hours a day, at telephone number (412) 432-4000. All information will remain confidential.
El Paso Repeat Sex Offender Sentenced to 30 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
In El Paso today, U.S. District Judge Kathleen Cardone sentenced 34-year-old repeat sex offender Berry Jay Miller to 30 years in federal prison followed by a lifetime of supervised release for distribution of child pornography announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On August 11, 2014, Miller pleaded guilty to a child pornography distribution charge. By pleading guilty, Miller, a registered sex offender, admitted to using public terminals at the El Paso Public Library to exchange images of child pornography via email with other individuals, including an undercover agent. According to court records, Miller has two prior sex offenses in El Paso County—one for indecency with a child and one for solicitation of a minor. Miller has remained in federal custody since FBI agents arrested him on March 10, 2014.
“The sentencing of Berry Miller is a prime example of the dedication and hard work of the El Paso Child Exploitation Task Force, comprised of the FBI, El Paso Police Department, El Paso Sheriff’s Office, Texas Department of Public Safety and Homeland Security Investigations. We are dedicated to protecting the El Paso Community from predators who commit heinous crimes against children and will continue to rigorously investigate and prosecute them,” stated FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Assistant United States Attorney Robert Almonte prosecuted this case on behalf of the Government.
Edgemont Man Defrauds the Government by Submitting False Unemployment ClaimsRead the Press Release
United States Attorney Brendan V. Johnson announced that an Edgemont, South Dakota, man recently reached a settlement agreement with the United States Government for submitting false unemployment claims.
Terry Beard, age 48, was laid off from his job as a conductor for the Burlington Northern Railroad in December of 2008. He submitted 23 claim forms certifying he was entitled to receive payments for unemployment benefits from March 2009 through January 2010 with the U.S. Railroad Board (RRB). Beard failed to advise the RRB that he was at the same time employed with the City of Edgemont. Beard knowingly and willfully falsified claims to the government for unemployment benefits.
In April 2014, the United States brought a civil action against Beard to recover damages and civil penalties pursuant to the False Claims Act (FCA), 31 U.S.C. §§ 3729-3733, for the false claims Beard knowingly submitted to the RRB.
The FCA imposes liability on persons and companies who knowingly submit false claims to the government or causes another to submit a false claim to the government, or knowingly makes a false record or statement to get a benefit paid by the government. Persons who submit a false claim must pay to the United States a civil penalty of not less than $5,500 and not more than $11,000 for each false claim, plus three times the amount of damages which the government sustained.
The government signed a settlement agreement with Beard on May 27, 2014. Beard consented to a judgment in favor of the United States in the amount of $40,000 and agreed to make monthly payments over five years for submitting the false claims for unemployment insurance benefit payments to the RRB.
Previously, Beard was also indicted by a grand jury and pled guilty to the offense of making a false claim pursuant to 18 U.S.C. § 287, a Felony, for knowingly submitting the false claims to the RRB. A criminal judgment was entered against Beard in federal court, and he was sentenced on October 23, 2013, to a term of 5 years’ probation and ordered to pay restitution in the amount of $12,407.00.
The U.S. Attorney’s Office places a high priority on criminal and civil enforcement in cases involving all types of fraud committed against the government and works with various law enforcement agencies to identify and investigate these matters.
The investigation in this case was conducted by the U.S. Railroad Retirement Board. Former Assistant U.S. Attorney Wayne Venhuizen and Assistant U.S. Attorney Cheryl Schrempp DuPris prosecuted the criminal and civil cases respectively.
Eagle Butte Man Charged with Third Degree Burglary and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary and Larceny.
Randall Little Shield, age 22, was indicted on September 16, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 9, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in June 2014, Little Shield unlawfully entered the Cheyenne-Eagle Butte Junior High School and took and attempted to carry away, with intent to steal and purloin, desktop computer towers, computer keyboards, computer monitors, and various other school office supplies of a value of more than $1,000.
The charges are merely an accusation and Little Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Little Shield was remanded to the custody of the U.S. Marshals Service pending trial. Trial date has been set for November 18, 2014.
Durham Public School Employee Pleads Guilty to Federal Student Aid FraudRead the Press Release
WINSTON-SALEM, N.C. – Jasmine Crossland, of Durham, NC, pleaded guilty in federal court on October 9, 2014, to making false statements on student financial aid applications. Crossland is currently employed as a Teacher's Assistant in the Durham Public School System.
Ripley Rand, United States Attorney for the Middle District of North Carolina, and Mark A. Smith, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Technology Crimes Division, made the announcement after the pleas were accepted by United States District Judge Thomas D. Schroeder.
Jasmine Crossland’s sentencing is scheduled for February 17, 2015. Jasmine Crossland faces a maximum penalty of 5 years in prison, a fine of up to $250,000, and full payment of restitution.
Jasmine Crossland's guilty plea in this matter is an admission of the facts contained in the Criminal Information by which she was indicted. The Factual Basis of the Indictment states Jasmine Crossland attended North Carolina Central University (NCCU) as a student from 2007 to 2012. During that period, Jasmine Crossland was awarded $67,405 in U.S. Federal Education grants or loans, and $54,388 in tuition grants from the D.C. Office of the State Superintendent of Education, Government of the District of Columbia (“OSSE”) that were used to pay costs associated with attending NCCU. Over $39,000 of the grant money was refunded directly to Jasmine Crossland by NCCU. For each year Jasmine Crossland attended NCCU between 2008 and 2012, she filed a Free Application for Federal Student Aid (FAFSA) with the U.S. Department of Education and reported that her mother, Donnica Crossland, had no income. During that same period, Jasmine Crossland filed applications for education grants with the D.C. OSSE, and in those applications stated Donnica Crossland was not employed and received no income. Jasmine Crossland also submitted a Federal Student Aid Verification worksheet containing false information to NCCU and provided additional false documents in support of the worksheet, including fraudulent copies of an IRS Form 1040 that she purported to be signed by her father. When interviewed by federal agents concerning this matter, Jasmine Crossland provided a sworn written affidavit denying any fraudulent activity.
To help obtain OSSE grants for Jasmine Crossland’s use at NCCU, and to help obtain OSSE grants for Jasmine Crossland’s sister for use at a Virginia college, Donnica Crossland affirmed and signed applications on five separate occasions falsely stating that she was not employed and received no income. For each year during the period from December 2006 through December 2012, however, Donnica Crossland received substantial income, earning a total of $521,819 from her employment with the U.S. Department of Transportation. On September 18, 2014, Donnica Crossland pled guilty in Richmond, VA, to making false statements to federal agents in connection with an investigation of student aid fraud. In total, the Crossland family fraudulently obtained $234,981 from the U.S. Department of Education and OSSE.
In 2013, the U.S. Department of Education’s Office of the Inspector General commenced an investigation of the Crosslands’ aid applications and supporting documents. On July 30, 2013, Department of Education Inspector General agents interviewed Donnica Crossland. During the interview, Donnica Crossland attempted to conceal her involvement by knowingly and falsely stating that she had filled out some of Jasmine Crossland’s paperwork during the summer prior to her first year of college, but had nothing to do with their financial aid applications thereafter. On November 7, 2013, Department of Education Inspector General agents again interviewed Donnica Crossland. During the interview, Donnica Crossland attempted to conceal her involvement by knowingly and falsely stating that she had no knowledge of any of the financial assistance applications submitted by Jasmine Crossland after 2007.
This case was investigated by the U.S. Department of Education’s Office of the Inspector General. Assistant U.S. Attorney Stephen Inman is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Middle District of North Carolina. Related court documents and information may be found on the website of the District Court for the Middle District of North Carolina or on PACER by searching for Case No. 1:14-CR-381.
Detroit Heroin Courier Sentenced in Federal CourtRead the Press Release
Charleston, W.Va. – Darnez Turner, 26, of Detroit, Michigan was sentenced in federal court in Charleston today to six months of imprisonment, followed by three years of supervised release announced United States Attorney Booth Goodwin. Turner previously pled guilty in July of this year, admitting that in July of 2011 he transported heroin from Detroit to Charleston by Greyhound Bus. Turner was in route to deliver the heroin when he was stopped by an off-duty Charleston Police Officer working security at the bus station. After the officer discovered heroin in Turner’s backpack, Turner admitted that he had agreed to transport the heroin for cash on delivery.
The case was investigated by the Charleston Police Department and the Metropolitan Drug Enforcement Network Team. The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The Office of the United States Attorney, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill and heroin trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Daytona Man Convicted of Federal Drug OffenseRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell yesterday found Fortune Tyrone Hill (33, Daytona Beach) guilty of possessing with intent to distribute 28 grams or more of cocaine base, commonly known as “crack” cocaine. He faces a minimum mandatory penalty of 5 years, up to a maximum of 40 years in federal prison. Hill was indicted on July 30, 2014, and a sentencing hearing is scheduled for January 12, 2015.
According to court documents and evidence presented during the bench trial, on May 20, 2014, officers from the Daytona Beach Police Department responded to an apartment complex after an individual called 911 and reported that her vehicle license tag had been stolen. When officers arrived at the complex, Hill attempted to flee and struck one of the officers. He was eventually arrested. Plastic bags containing a total of more than 100 grams of “crack” cocaine, two digital scales, and $1,020 were recovered during a search of Hill. Officers also recovered an additional $1,630 from Hill’s rental car.
This case was investigated by the Daytona Beach Police Department and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Couple Who Lost Home in Witch-Creek Fire Indicted for FraudRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that Deborah and Douglas Tumlinson of Valley Center were arraigned today before U.S. Magistrate Judge Bernard G. Skomal on a ten-count indictment for various fraud charges they allegedly orchestrated after losing their home in the 2007 Witch Creek fire.
In October 2007, the Tumlinsons’ home in Ramona was destroyed by wildfire. The Tumlinsons originally joined a class-action lawsuit against San Diego Gas & Electric (“SDG&E”) to recoup losses from the fire. The indictment alleges that although the Tumlinsons did not enter a settlement with SDG&E, they obtained a loan from U.S. Claims, a funding company, by falsely claiming they had reached a settlement and promising to use the settlement funds as collateral. They were later sued by U.S. Claims for not making any payments on the loan.
The indictment also charges that the Tumlinsons took the proceeds from the U.S. Claims loan and laundered over $500,000 to purchase a new house in Valley Center. Next, the Tumlinsons allegedly made material misrepresentations on a loan application to Seaside Funding, Inc., a Carlsbad mortgage broker company, to obtain a $250,000 home equity loan on their new Valley Center home. They also failed to repay the Seaside Funding loan.
Finally, the Tumlinsons filed for bankruptcy three times, but are accused of intentionally failing to list the outstanding loan debt to U.S. Claims on their bankruptcy petitions.
The Tumlinsons are scheduled to appear before U.S. District Court Judge Janis L. Sammartino for a motion hearing on November 14, 2014.
DEFENDANT Case Number: 14CR2978-JLS Deborah Tumlinson Age: 43 (Counts 1-9) Douglas Tumlinson Age: 40 (Counts 1, 3-8, 10) CHARGESCount 1: Title 18, United States Code, Sections 371 (Conspiracy)
Maximum penalty: 5 years of custody; $250,000 FineCount 2: Title 18, United States Code, Sections 1343 (Wire Fraud)
Maximum penalty: 20 years of custody; $250,000 FineCounts 3-4: Title 18, United States Code, Sections 1341 (Mail Fraud)
Maximum penalty: 20 years of custody; $250,000 FineCount 5: Title 18, United States Code, Sections 1344 (Bank Fraud)
Maximum penalty: 30 years of custody; $150,000 FineCount 6: Title 18, United States Code, Sections 1014 (False Statement on Loan Application)
Maximum penalty: 30 years of custody; $1,000,000 FineCount 7: Title 18, United States Code, Sections 1957 (Money Laundering)
Maximum penalty: 10 years of custody; $250,000 FineCounts 8-10: Title 18, United States Code, Sections 152(3) (Bankruptcy Fraud)
Maximum penalty: 5 years of custody; $250,000 Fine INVESTIGATING AGENCYFederal Bureau of Investigation
*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.Collinsville Man Pleads Guilty to Theft of Medicaid FundsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 15, 2014, Lawrence Thigpen, 53, of Collinsville, Illinois, pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
Facts brought out in Court showed that Thigpen was falsifying time sheets in order for his girlfriend, who was also his personal assistant, to receive payments for time periods when she was actually locked up in jail. Sentencing has been set for February 13, 2015, in United States District Court in East St. Louis, Illinois. Thigpen will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Ranley Killian and Special Assistant United States Attorney Michael Hallock.
Chester County Resident Charged with Illegal ReentryRead the Press Release
Baltazar Lopez-Zamudio, a/k/a “Baltazar Lopez,” a/k/a “Jorge Sanchez-Rodriguez,” 28, of Kennett Square, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about September 17, 2014, Lopez-Zamudio, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about March 5, 2010.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Terri Marinari.
An Indictment 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, 215-861-8525Cedar Rapids Man Sentenced to More Than 11 Years in Federal Prison for Distributing Heroin That Caused Overdose DeathRead the Press Release
A man who distributed heroin to an individual who died from using the heroin was sentenced today to more than 11 years in federal prison.
Austin Allen Martens, age 24, from Cedar Rapids, received the prison term after a July 28, 2014, guilty plea to distributing heroin.
In a plea agreement, Martens admitted that he distributed $80 worth of heroin to another individual in March 2013. The purchaser was found deceased the next day, having overdosed after using the heroin distributed by Martens.
Martens was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Martens was sentenced to 135 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Martens is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-40-1-LRR.
Cahokia Man Pleads Guilty to Health Care FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 15, 2014, Quincy O. Gamble, 39, of Cahokia, Illinois, pled guilty to an indictment charging that he engaged in a scheme to commit health care fraud. Sentencing has been set for February 15, 2015, in United States District Court in East St. Louis, Illinois. Gamble will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During his plea hearing, Gamble admitted that he had submitted false and fraudulent bills in relation to his alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Gamble admitted to falsely billing the program between December 15, 2012 and March 31, 2014, when he purportedly rendered personal assistant services to a customer when he, in fact, did not. He even submitted claims for six months after the customer, his girlfriend, died. As a result, Gamble improperly billed $7,836.56 in payments for services not performed.
This prosecution is part of the third wave of the “Operation Home Alone” initiative announced on June 5, 2014, by United States Attorney Stephen R. Wigginton. The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police, Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Liam Coonan and Special Assistant United States Attorney Michael Hallock.
If you suspect or know of an individual or company not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Broker Pleads Guilty in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Richard L. Pearson, 57, of Miami, pled guilty today in West Palm Beach before U.S. Magistrate Judge William Matthewman to conspiracy to commit wire fraud in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. At his sentencing, scheduled for January 9, 2015, before U.S. District Judge Kenneth A. Marra, the defendant faces a maximum five years imprisonment.
In connection with his guilty plea, Pearson admitted that he agreed to act as a broker for Rothstein’s settlements. Pearson would receive a sales commission from Rothstein derived from the money paid by the investor, and would pay a portion of that sales commission to RRA attorney David Boden for his assistance in the sale of these settlement. Beginning in September 2009, a group of investors (hereinafter referred to as “the Investor Group”) began investing in the confidential settlement agreements following a meeting with Rothstein. Boden and Pearson agreed that the Investor Group would pay a sales commission directly to Pearson. The Investor Group was not informed by Boden or Pearson that they were also receiving an additional undisclosed sales commission from the money paid by the Investor Group to Rothstein. The defendant further admitted that, through material misstatements and omissions made to the Investor Group, Pearson and Boden caused the Investor Group to incur a loss of approximately $2,400,000.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bonners Ferry Men Arraigned on Indictment for Violent ATM Theft in McCall and ATM Thefts in Boise, Meridian, Utah, Colorado, and WyomingRead the Press Release
Trial set December16, 2014 in Boise
BOISE — Nathan Paul Davenport, 34, and Matthew Taber Annable, 39, both formerly of Bonners Ferry, Idaho, were arraigned today in Boise by United States Magistrate Judge Mikel H. Williams on an indictment charging multiple bank larcenies, conspiracy, and use of a deadly weapon during a felony offense, U.S. Attorney Wendy J. Olson announced. Trial is set for December 16, 2014, in front of U.S. District Judge Edward J. Lodge.
BOISE — Nathan Paul Davenport, 34, and Matthew Taber Annable, 39, both formerly of Bonners Ferry, Idaho, were arraigned today in Boise by United States Magistrate Judge Mikel H. Williams on an indictment charging multiple bank larcenies, conspiracy, and use of a deadly weapon during a felony offense, U.S. Attorney Wendy J. Olson announced. Trial is set for December 16, 2014, in front of U.S. Chief District Judge B. Lynn Winmill.
Davenport and Annable were arrested without incident on January 12, 2014, in Orem, Utah, in connection with a separate ATM robbery in Wyoming. The two men have been in custody on Wyoming charges, prior to being transported to Boise. In the District of Wyoming, both men pleaded guilty to single counts of ATM Theft and Aiding and Abetting and each received a fourteen month prison sentence.
The charge of bank larceny by use of a dangerous weapon as charged in the Idaho indictment is punishable by up to 25 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The charge of use of a deadly weapon during the commission of a felony offense is punishable by a mandatory minimum of ten years up to life imprisonment, a maximum fine of $250,000, and up to five years supervised release. The charge of bank larceny is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of conspiracy to commit bank larceny is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case is being investigated by the Federal Bureau of Investigation, the Idaho State Police, the Valley County Sheriff’s Office, and the McCall Police Department.
Indictments and complaints are a means of charging a person with criminal activity. They are not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bogalusa Man, Donelle Piggott, Sentenced for Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DONELLE PIGGOTT, age 49, resident of Bogalusa, was sentenced on October 14, 2014, having previously pled guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base and misprision of a felony.
U.S. District Judge Jay C. Zainey sentenced PIGOTT to a 48-month term of imprisonment and 3 years of supervised release.
On February 6, 2014, PIGGOTT was one of 15 defendants charged in an 8-count indictment. According to court documents, the indictment was based on court-authorized wiretaps that recorded conversations between STEVEN HAYNES, who has pleaded guilty in this case, and the defendants, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Autauga County Man Sentenced to 210 Months in Federal Prison for his Role in Drug OrganizationRead the Press Release
Montgomery, Alabama - Mark Edward Elliott (52), of Deatsville, Ala., was sentenced on October 15, 2014 to serve 210 months in prison, to be followed by 5 years of supervised release for conspiracy to distribute a controlled substance, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
According to court documents, Elliot was the leader of a large methamphetamine distribution operation that was responsible for bringing several pounds of the controlled substance from Atlanta, Georgia to central Alabama, including Autauga, Elmore and Montgomery counties. Elliot and his co-conspirators were arrested in March of 2013 after law enforcement executed five federal search warrants and found large amounts of “ice” methamphetamine, cash, and firearms, along with and several vehicles that were being used to transport illegal drugs.
During the investigation, it was discovered that several individuals in this case had used violence, threats of violence, and intimidation to further their drug dealing efforts and to collect money. Investigators also learned that Elliott, also known as “Mighty Whitey,” was a captain in the Aryan Brotherhood, a powerful prison gang with white supremacy beliefs. Elliott has tattoos of Swastikas, the words “White Power” and SS in lightning bolts on his body, all tattoos that indicate membership in the Aryan Brotherhood.
This case was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Elmore County Sheriff’s Office, the Gulf Coast High Intensity Drug Trafficking Area Task Force, the Central Alabama Drug Task Force, the Autauga County Sherriff’s Office, the Wetumpka Police Department and the Prattville Police Department.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Attorney General Holder Statement on Announcement that Deputy Attorney General James M. Cole Will Depart the Justice DepartmentRead the Press Release
Attorney General Eric Holder released the following statement Thursday after Deputy Attorney General James M. Cole announced his plans to depart the Justice Department in the coming months:
“Over the past four years, Jim Cole has been my indispensable partner in leading the U.S. Department of Justice and extending the promise of equality under the law for everyone in this country. Jim's leadership and ingenuity have been critical in attaining historic results on behalf of the American people. During times of great challenge and unprecedented resource constraints, I have relied upon Jim to ensure that the Justice Department operates as effectively and efficiently as possible. His guidance and wise counsel have made him an irreplaceable advisor, a proven and trusted leader, and a champion for the cause of justice. I have been proud to count him as a colleague and a friend for nearly four decades. I thank him for his tireless work and faithful service over the years. And although he will be dearly missed by dedicated public servants at every level of the Justice Department, I’m happy that we’ll be able to work together in the coming months.”
Attorney General Holder Announces Lisa Foster to Serve as Director of the Access to Justice InitiativeRead the Press Release
Attorney General Eric Holder announced on Thursday Lisa Foster as the Director of the Access to Justice Initiative (ATJ). Founded in 2010 by Attorney General Holder, ATJ seeks to address the access-to-justice crisis in the criminal and civil justice system by working within the department, across federal agencies, and with state, local and tribal justice system stakeholders to increase access to counsel and legal assistance and to improve the systems that serve people who are unable to afford lawyers. By supporting the right to counsel in state and local courts, educating the defender community, supporting defender services in tribal courts, strengthening the juvenile justice system, and enhancing federal programs though civil legal aid, ATJ staff work to help the justice system efficiently deliver outcomes that are fair and accessible to all, irrespective of wealth and status.
“Lisa is a staunch defender of due process, a champion of the rights of all Americans, and a passionate advocate for equal justice under law,” said Attorney General Eric Holder. “Throughout her impressive career – from her earliest days in public interest law, to her work as a legal aid provider and her distinguished service on the bench – she has consistently demonstrated superior judgment, impeccable integrity, and a steadfast commitment to the high ideals that the Access to Justice Initiative is charged with protecting. I have no doubt that, under Lisa’s leadership, this important initiative will continue to expand its groundbreaking work to build the more effective justice system – and the more just society – that all Americans deserve.”
Prior to joining the department, Foster served for ten years as a California Superior Court Judge in San Diego presiding over criminal, civil and family law departments. Foster began her legal career as a Staff Attorney at the Center for Law in the Public Interest in Los Angeles and later joined the Legal Aid Foundation of Los Angeles. Following her service at the Legal Aid Foundation of Los Angeles, Foster served as the Executive Director of California Common Cause before becoming an Adjunct Professor at the University of San Diego Law School and later joining the law firm of Phillips & Cohen as Of Counsel. For the past year, Foster was a judicial fellow in the Office of Senator Edward J. Markey where she advised Senator Markey on a variety of issues including judicial nominees, patent legislation, regulatory reform and international law and policy. She received a B.A. in American Studies from Stanford University and J.D., magna cum laude, from Harvard Law School.
“The Access to Justice Initiative does critical work to increase access to counsel and legal assistance for all,” said Acting Associate Attorney General Stuart F. Delery. “We are privileged to have a person like Lisa, who has dedicated her career to supporting a justice system that is fair and accessible to everyone, guiding this important effort. I am confident that, with Lisa’s leadership, the initiative will continue to build on the outstanding work done by Deborah Leff, Karen Lash, and the dedicated team working with them.”
Last month, as part of ATJ’s work with the Civil Rights Division, the department filed a statement of interest with the Supreme Court of the State of New York, Albany County, in Hurrell-Harring v. State of New York. In this class action litigation, the plaintiffs allege that, due to systemic failures in four New York counties, indigent criminal defendants have been constructively denied the right to counsel. And in April, ATJ launched the Legal Aid Interagency Roundtable Toolkit. This online resource located on ATJ’s website is the product of collaboration with the White House Domestic Policy Council and 18 federal agencies dedicated to examining current programs and practices in order to create better outcomes.
To learn more about the Access to Justice Initiative, visit http://www.justice.gov/atj/.
Attorney Charged in Scheme to Defraud Chester County CompanyRead the Press Release
PHILADELPHIA – Alexander Burke, 58, of Bristol, England, and formerly of Upper Montclair, New Jersey, was charged today by Indictment with conspiring to commit wire fraud and money laundering, and with substantive wire fraud and money laundering violations, announced United States Attorney Zane David Memeger.
The Indictment alleges that Burke and another attorney engaged in a scheme to defraud Company A, a company in Malvern, Pennsylvania, by billing the company for legal work not done and splitting the resulting payments from Company A. Burke was a patent attorney for Company A, and as part of his job he was permitted to hire outside counsel to draft patents, respond to patent office actions, and to write appeals in patent cases. Beginning in the summer of 2008, he and another attorney, an outside patent counsel, agreed that Burke would assign patent-related projects to the attorney, the attorney would do no work on the projects, and the attorney would bill Company A for the work assigned but not done. Burke himself, although he received salary from Company A to do patent work, did the patent work. When the outside attorney billed Company A, Burke approved the invoices for payment. Company A then paid the outside attorney and the outside attorney sent most of the money to Burke.
This fraudulent scheme continued until approximately June of 2013. Over the course of the scheme, Burke approved invoices from the outside attorney for work not done in the amount of approximately $2,481,020. Although Company A discovered the scheme and did not pay some of the final invoices, over the five years that Burke continued the scheme Company A paid out approximately $2,417,665 for work billed for, but not done, by the outside counsel in approximately 588 fraudulent invoices.
The indictment further alleges that Burke and the outside counsel conspired to commit money laundering by agreeing to send Burke’s share of the money from the counsel’s account, where Company A had paid it, to Burke’s account at NJM Bank in New Jersey which he had set up in the name of a company called Electrical Services & Networks. These transactions totaled $2,098,977. Burke further committed twelve acts of money laundering by causing wire transfers from this account to an additional bank account he had set up with another person at a Barclay’s Bank in the Isle of Man in the name of a different company. The charged transactions to the bank in the Isle of Man totaled $1,318,171.If convicted the defendant faces a maximum possible sentence of 340 years imprisonment, $6,000,000 fine or twice the amounts of gross gain and property involved in the counts, whichever is more, restitution, forfeiture, and a $2300 special assessment.
The case was investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An Indictment, Information or Criminal Complaint 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, 215-861-8525Assistant United States Attorney Christopher D. Poole Recognized for His Work with the Chattanooga Violence Reduction InitiativeRead the Press Release
CHATTANOOGA, Tenn. – Assistant U.S. Attorney Christopher D. Poole received the National Association of Former U.S. Attorneys Exceptional Service Award for his work with the Chattanooga Violence Reduction Act. U.S. Attorney William C. Killian presented the award plaque, on behalf of the National Association of Former U.S. Attorneys (NAFUSA), to Poole at an office ceremony on Oct. 15, 2014.
A letter from the NAFUSA which accompanied the plaque stated, “This award is given in recognition of the exemplary service provided by your Assistant to the United States Attorneys’ Office, the Department of Justice and to the citizens of the United States of America. As former United States Attorneys, we can recognize a great Assistant United States Attorney.”
U.S. Attorney William C. Killian congratulated Assistant U.S. Attorney Poole on this prestigious award and stated, “The Eastern District of Tennessee is fortunate to have many quality federal prosecutors. I am proud that Assistant U.S. Attorney Poole was recognized for his exceptional work with this important initiative with the city of Chattanooga.”
The Chattanooga Violence Reduction Initiative was initiated by the City of Chattanooga in 2013. The program aims to reduce violent crime through a multistep approach. It includes identifying a targeted focus, research and analyses of crime patterns, direct communication with violent offenders, and arrests of and sustained follow-through with individuals caught in a dynamic that pits different groups against one another in a retaliatory cycle. The initiative is based on similar models used in High Point, N.C., Boston, Chicago and other cities.
Alleged Members of Large Heroin Trafficking Ring ChargedRead the Press Release
Federal, State and Local Law Enforcement Authorities Arrest 14 in Coordinated Takedown
ASBURY PARK, N.J. – Federal and state law enforcement authorities today arrested 14 alleged members and suppliers of a large-scale drug trafficking organization responsible for distributing heroin and cocaine throughout Monmouth, Ocean, and Middlesex counties, U.S. Attorney Paul J. Fishman announced.
The alleged leaders of the conspiracy, Herve Cadet, a/k/a “Gotti,” a/k/a “Bro,” 29, of Neptune and Sayreville, New Jersey; and Eric Smith, a/k/a “EV,” a/k/a “E,” 42, of Manchester, New Jersey, were among the 22 defendants charged in two complaints unsealed today, 14 of whom were arrested this morningas part of a coordinated takedown by federal and local law enforcement authorities. Smith has been incarcerated in New Jersey in connection with New Jersey state offenses since September 2014.The remainingseven defendants remain at large.
Each defendant (see chart below) is charged with one count of conspiracy to distribute one kilogram or more of heroin. Those arrested today are scheduled to make their initial court appearances this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.
Also was arrested on a separate complaint today were Joel Mendez, a/k/a “Joey Mendez,” a/k/a “Crack,” 34, of Bradley Beach, New Jersey, and Alfred Lyons III, a/k/a “Alfie,” 33, of Neptune, New Jersey. They were each charged with conspiracy to distribute heroin. Mendez remains at large.
“The criminal complaints describe drug trafficking operations that have been responsible for sizeable quantities of illegal narcotics on the streets of Asbury Park, Neptune Township, and the surrounding towns,” U.S. Attorney Fishman said. “We hope and expect that today’s arrests will make a real difference to the drug trafficking trade in these counties. This is not the last that you will hear from us in this fight.”
“This lengthy and collaborative investigation has resulted in the arrests of major suppliers of heroin in the Monmouth and Ocean county areas,” Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “DEA and its law enforcement partners will continue to investigate those seeking to poison our communities.”
According to the federal criminal complaints filed in Trenton federal court:
From November 2013 through October 2014, Cadet, Smith, and the other members of their drug trafficking organization (the “Cadet DTO”) conspired to sell illegal drugs – chiefly heroin – in Monmouth, Ocean and Middlesex counties. Through the authorized interception of cell phone calls, the use of confidential informants and other means, law enforcement learned Cadet and Smith were leaders of the Cadet DTO, responsible for identifying sources of heroin supply. Cadet and Smith also oversaw distributors and other conspirators, who sold, packaged and stored the drugs. Members used stash houses, spoke in code and used Haitian Creole to avoid detection by law enforcement.
The Cadet DTO sold prepackaged bundles of heroin, containing approximately one-fifth of a gram, and “bricks,” which contained approximately one gram. Members of the Cadet DTO also packaged heroin for subsequent distribution to dealers and others. Discussions about drug quality, customer satisfaction, pricing and the nature of the drug distribution business were captured on calls recorded by law enforcement.
“This operation demonstrates the cooperative commitment of the multi-levels of law enforcement focused on eradicating the epidemic killing people everywhere, including Monmouth County,” First Assistant Prosecutor Marc C. LeMieux said. “We are committed to putting these purveyors of death out of business.”
The conspiracy count with which each defendant is charged carries a minimum potential penalty of 10 years in prison, a maximum of life in prison and a $10 million fine. The conspiracy count charging Mendez and Lyons carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Fishman credited special agents of the DEA, Newark Division, under the direction of Special Agent in Charge Kotowski; and officers of the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher J. Gramiccioni, who is currently wrapping up a U.S. Navy overseas deployment to Afghanistan as part of Operation Enduring Freedom, with the investigation leading to today’s charges. He also thanked special agents of Immigration and Customs Enforcement-Homeland Security Investigation, the U.S. Marshals Service, the Ocean County Prosecutor’s Office; the Asbury Park, Neptune Township and Keansburg police departments, and the Monmouth County Sheriff’s Office for their roles in the case.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
14-372
Defendant
Age
Residence
29
Neptune and Sayreville, N.J.
Eric Smith, a/k/a “EV,” a/k/a “E”
42
Manchester, N.J.
*Dwight Simon, a/k/a “Break Bread”
30
Asbury Park, N.J.
*Noble El-Bey, a/k/a “T,” a/k/a “Terry
42
Asbury Park
Evens Joseph, a/k/a “Dirty Evan,” a/k/a “De”
36
Neptune
*Steve Jean-Baptiste, a/k/a “Black”
29
Asbury Park
Harriel Jean-Baptiste, a/k/a “Harry”
25
Asbury Park
*Junior Parcias, a/k/a “Peso”
28
Neptune
Kurtis Barnes, a/k/a “Gotti”
36
Lakewood, N.J.
Charlene Braithwaite-Lovet, a/k/a “Shay”
40
Asbury Park
Athena L. Gillis, a/k/a “Shorty”
28
Asbury Park
*Jerrel K. Collins, a/k/a “Fat Boy”
27
Ocean Township, N.J.
Delovi R. Canales, a/k/a “Butter”
48
Toms River, N.J.
Laurie A. Matthews
48
Whiting, N.J.
Amal J. Blaine, a/k/a “Mal”
27
Lakewood, N.J.
Mackinson Casimir, a/k/a “Scrappy”
26
Ocean Township
Reginald Walker, a/k/a “Red”
45
Red Bank, N.J.
*Brandon R. Keyes, a/k/a “BK”
31
Neptune, N.J.
Schneider Monestime
32
Asbury Park
Marvin T. Brodie, a/k/a “Marv”
44
Manchester
*denotes at large
Cadet, Herve et al. Complaint
Mendez, Joel et al. ComplaintAlbany Man Sentenced for Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – PAUL SCROM, 63, of Albany, New York, was sentenced today by the Honorable Thomas J. McAvoy to 72 months in federal prison followed by a 10-year term of supervised release, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation. SCROM is also required to register as a sex offender. The sentence follows SCROM’s May 22, 2014 guilty plea to distribution of child pornography.
As part of his guilty plea, SCROM admitted that he distributed images and movies of child pornography through a peer-to-peer file sharing program. On September 12, 2013, investigators searched SCROM’s home and recovered numerous images and videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation, Albany Division and is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Acoma Pueblo Woman Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Roxanne C. Lewis, 26, an enrolled member of the Acoma Pueblo who resides in Acoma, N.M., was sentenced today to a year and a day in federal prison followed by a year of supervised release for her federal assault conviction.
Lewis was arrested on Jan. 21, 2014, on a criminal complaint alleging that she assaulted a 25-year-old Kewa Pueblo man by stabbing him with a knife. The assault occurred in a location within Acoma Pueblo in Cibola County, N.M., on Jan. 9, 2014.
On June 18, 2014, Lewis entered a guilty plea to a felony information charging her with aggravated assault with a deadly weapon. Lewis admitted assaulting the victim with a knife during a domestic dispute. The victim sustained three stab wounds that required medical treatment.
The case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Acoma Police Department, and was prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
34 in Custody in Connection with Austin-Based Drug Distribution OperationRead the Press Release
Federal and state authorities have arrested 24 individuals, including Austin lawyers Richard Patrick Fagerberg, age 45, and David Ramos, age 39, for their roles in a cocaine and methamphetamine distribution operation announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Two related federal grand jury indictments, unsealed this afternoon, charges those arrested, as well as ten others who were already in custody prior to today, with conspiracy to distribute a controlled substance. A list of the defendants is below.
According to the indictments, the defendants have allegedly participated in a conspiracy to distribute various amounts of cocaine and methamphetamine since May 2013. During this 16-month-long operation, authorities have seized approximately 87 kilograms of cocaine and two kilograms of methamphetamine, four firearms, close to $1.5 million in criminally derived assets in connection with this investigation.
“Nothing is more important than the safety and security of our communities. DEA, and our federal, state, and local law enforcement partners in Austin and throughout Texas, will remain relentless in our pursuit of the vicious criminal individuals and drug trafficking organizations who threaten our safety and stability. These arrests send a strong and unified message that these crimes will not be tolerated in our communities and those who commit these offenses will be brought to justice,” stated DEA Special Agent in Charge Joseph M. Arabit.
Upon conviction, the defendants face statutory penalties of between ten years and life imprisonment or between five and 40 years imprisonment.
“Organized crime and drug trafficking are a serious threat to public safety in Texas, and DPS vigilantly works alongside our law enforcement partners to detect, deter and dismantle drug trafficking organizations operating in our communities,” said DPS Regional Commander Freeman Martin. “This long-term investigation is an ideal example of how law enforcement at all levels works together to put suspected criminals behind bars and protect Texans.”
These charges and arrests resulted from an investigation conducted by the Austin High Intensity Drug Trafficking Area (HIDTA) Task Force. The Austin HIDTA Task Force is made up of investigators from the Drug Enforcement Administration, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Texas Department of Public Safety, Austin Police Department, Travis County Sheriff’s Office, Bastrop County Sheriff’s Office, Williamson County Sheriff’s Office, Hays County Sheriff’s Office, Cedar Park Police Department and the Georgetown Police Department. Other agencies participating in today’s arrests include Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service, Round Rock Police Department, Travis County District Attorney’s Office and the Williamson County District Attorney’s Office. Assistant United States Attorneys Mark Marshall and Dan Guess are 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.
ARRESTED YESTERDAY (24)CASE # NAME AGE RESIDENCE STAT. PENALTY
A14cr292 DAVID DEPAZ 22 Austin, TX 10 years to life
A14cr292 HECTOR MAYORGA 23 Austin 10 years to life
A14cr292 ALVARO SALINAS 46 Austin 5 years to 40 years
A14cr292 ARTHUR VILLALOBOS 34 Taylor, TX 5 years to 40 years
A14cr292 JOEL AVILEZ-JAIMES 38 Austin 5 years to 40 years
A14cr292 VERONICA DeLEON 31 Taylor 5 years to 40 years
A14cr292 RENE PEREZ 35 Austin 10 years to life
A14cr292 ALEJANDRO RODRIGUEZ 41 Austin 5 years to 40 years
A14cr292 FRANCISCO LOPEZ 38 Austin 10 years to life
A14cr292 FERNANDO TEJEDA 30 Austin 10 years to life
A14cr292 JAVIER TEJEDA 24 Austin 5 years to 40 years
A14cr292 ROGELIO VILLANUEVA 35 Austin 5 years to 40 years
A14cr292 JAMES YERKES 46 Austin 10 years to life
A14cr292 TIMOTHY COOPER 49 Debray, FL 5 years to 40 years
A14cr300 RAY VILLEGAS 42 Austin 10 years to life
A14cr300 VALERIA CUENCA 23 Kyle, TX 10 years to life
A14cr300 ANTONIO NIETO 23 Austin 10 years to life
A14cr300 GERVACIO MORALES 31 Kyle 10 years to life
A14cr300 BENJAMIN TYLER GOLDBERG 26 Austin 10 years to life
A14cr300 VICTOR HUGO EXCALANO-ZUVIETA 25 Austin 10 years to life
A14cr300 RICHARD PATRICK FAGERBERG 45 Austin 10 years to life
A14cr300 DAVID RAMOS 39 Austin 10 years to life
A14cr300 EUGENIO LUCIO 60 San Benito, TX 10 years to life
A14cr300 JUAN MAXIMO RUIZ 33 Brownsville, TX 10 years to lifeALREADY IN CUSTODY PRIOR TO YESTERDAY (10)
CASE # NAME AGE RESIDENCE STAT. PENALTY
A14cr292 JOSE NIETO-FIGUEROA 23 Pflugerville, TX 5 years to 40 years
A14cr292 RICARDO CRUZ 53 Pharr, TX 10 years to life
A14cr292 GERARDO DIAZ 23 Austin, TX 10 years to life
A14cr292 JUAN GONZALEZ 28 Austin 10 years to life
A14cr300 OSCAR ARMANDO AVILA-JAIMES 35 Austin 10 years to life
A14cr300 ARMANDO GUTIERREZ 40 Austin 10 years to life
A14cr300 JESUS ANGELOS DOMINGUEZ 29 Austin 10 years to life
A14cr300 OSCAR SUAREZ-LARA 29 Austin 10 years to life
A14cr300 JOSE LUIS REYES-VALLE 38 Austin 10 years to life
A14cr300 ANTONIO de JESUS
HERNANDEZ-GONZALEZ 29 Austin 10 years to life
15 October 2014
Woman Sentenced to More Than 17 Years in Prison for Producing and Distributing Child PornographyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANGELA D. MARTIN, also known as Angela Haussmann, 30, of Wallingford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 210 months of imprisonment, followed by 20 years of supervised release.
According to court documents and statements made in court, in August 2013, MARTIN sexually abused a female child, filmed the abuse with her cell phone, and then emailed the video to another individual in California. The victim was approximately three years old at the time of the abuse.
In addition to filming and distributing the video of the sexual abuse that she inflicted on the female child, MARTIN possessed and distributed other child pornography that she received from individuals with whom she was communicating via email, text messaging, and chat applications.
MARTIN is a registered sex offender as the result of a prior felony conviction in the state of Connecticut for second degree sexual assault of a minor.
MARTIN has been detained since her arrest on September 19, 2013. On March 28, 2014, she pleaded guilty to one count of production of child pornography.
This matter was investigated by the Federal Bureau of Investigation, the Wallingford Police Department, and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.To report cases of child exploitation, please visit www.cybertipline.com.
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(203) 821-3722 [email protected]Woman Arrested on Charge of Illegal Re-EntryRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Olivia Leigh Suriani, 32, a citizen of Canada, was arrested and charged by criminal complaint with illegal re-entry. The charge carries a maximum penalty of two years in prison, a fine of $250,000, or both
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that according to the complaint, Niagara Regional Police alerted U.S. Border Patrol that a woman was onboard a kayak heading toward Beaver Island State Park from Canada. Upon arrival, Suriani was found near Beaver Island Park approaching a taxi. When questioned by a Border Patrol agent, the defendant admitted to entering the United States illegally on the kayak. Suriani was previously removed from the United States on January 13, 2014 and returned to Canada after she arrived onboard a cruise ship.
Suriani made an initial appearance before U.S. Magistrate Judge Hugh B. Scott and is being held pending a detention hearing on October 17, 2014.
The criminal complaint is the culmination of an investigation on the part of Agents of US Border Patrol, under the direction of Patrol Agent in Charge Chris Buskey.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Washington Woman Sentenced for Conspiring to Pass Counterfeit Money OrdersRead the Press Release
HELENA - Kelly Lorraine Watts, a 46-year old resident of Renton, Washington, was sentenced today for conspiracy to utter and possess forged securities with intent to deceive an organization. Watts was sentenced after pleading guilty on May 20, 2014. Watts was sentenced 18 months in prison 3 years supervised release. She was also ordered to pay $30,360 in restitution.
In an Offer of Proof filed by Assistant U.S. Attorney Chad Spraker, the government told the court that in August 2013, James Hernandez and Kelly Watts were arrested in Butte after Hernandez was caught attempting to pass a counterfeit money order. Law enforcement questioned Hernandez and Watts leading to the discovery that they had been passing counterfeit money orders to obtain goods and services in Washington, Oregon, Idaho, and Montana from December 2012 until they were arrested.
Law Enforcement officers searched Hernandez's truck and discovered a number of contraband including 70 money grams in envelopes with a woman's handwriting on the outside; several cashed money grams; a ledger in a woman's handwriting listing the names of casinos and stores; computer software, paper, and cutting material commonly used to manufacture counterfeit money orders; and five Washington driver's licenses with Hernandez's picture, each with a different name.
A search of Watts' purse revealed loadable debit cards. During the investigation, Watts stated that she kept a ledger of locations where she and Hernandez cashed money orders and the orders' amounts. Several stores identified in receipts were contacted by law enforcement. It was discovered that fraudulent money orders had been used to purchase goods and services throughout Montana.
In addition, the investigation revealed that Hernandez had been manufacturing fraudulent money orders from November 2012 until their arrest in August 2013. Watts and Hernandez traveled to Hillsboro, Pendleton and Ontario, Oregon, Vancouver, Washington, and Kalispell while cashing money orders at various stores and casinos. After purchasing merchandise using the fraudulent money orders, Watts and Hernandez would wait a period of time before returning the items for cash.
The investigation was conducted by Homeland Security Investigations and the United States Secret Service.
Update on Portland, Oregon Man Sentenced Earlier this Month for Defrauding His Own Company Out of $1.4 MillionRead the Press Release
PORTLAND, Ore. – David Schrader, 47, of Portland, Oregon, was sentenced October 1 by U.S. District Court Judge Robert E. Jones to 46 months in prison for the crime of wire fraud and ordered to pay over $1.4 million in restitution to DAT Solutions (formerly Transcore), the victim of his crime. As summarized in the October 2 press release on this matter, Schrader had been employed as the Senior Vice President of Operations, and had accomplished his theft by submitting false expense reports to DAT’s accounting department that either falsified or inflated the amounts for which defendant was actually entitled to receive reimbursement. As part of his fraud, Schrader forged the signature of DAT’s president, fabricated approval emails from the president on his fraudulent reports, and submitted false credit card statements.
At Schrader’s October 1 sentencing, Judge Jones permitted Schrader to self-surrender in January 2015 to begin serving his sentence, with the expectation that Schrader would continue his efforts to sell several pieces of real estate until that time and apply the proceeds of those sales to his restitution obligation. The government had previously filed liens on multiple properties Schrader owns in the Portland area in order to secure its interest and facilitate restitution to Schrader’s victim.
The day after Schrader’s sentencing, his attorneys contacted prosecutors to inform them that one of Schrader’s properties was owned equally by Schrader and an associate, and to request that only fifty percent of the sale proceeds be applied to Schrader’s restitution obligation, with the other fifty percent going to Schrader’s associate. After confirming that Schrader’s associate was not listed in county property records, prosecutors refused the request on the ground that Schrader’s alleged associate had no legal interest in the property, regardless of any informal arrangement the two men might have had. Schrader’s attorneys then filed a motion attaching an “ownership contract executed in March 2005” between Schrader and his associate, and requested that the Court require the government to give half of the property’s proceeds to Schrader’s associate rather than to DAT. Following this filing, the government learned from Schrader’s associate that Schrader had approached him just days after being sentenced and asked him to sign and backdate the “ownership contract.”
Schrader appeared before Judge Jones again late last week to answer for this conduct. Schrader’s attorneys attempted to withdraw the fraudulent contract from the record, but Judge Jones denied the request, indicating that it “comes a bit late.” Judge Jones then revoked Schrader’s pretrial release, finding that his conduct was a continuation of the activity he had just been sentenced for, namely that of “a liar, a cheat, and a crook.” He then ordered that Schrader be taken immediately into custody to begin serving his 46-month sentence. Judge Jones refused Schrader’s attorneys’ request that they be allowed to escort Schrader to the U.S. Marshal’s Service rather than waiting for the Marshals to arrive in the courtroom, indicating that he did not “trust him farther than I can spit.”
The investigation of this case was conducted by the FBI, and the case was prosecuted by Assistant U.S. Attorneys Michelle Kerin and Katie Lorenz.
United States Attorney’s Office Announces Charges Against Former Federal Corrections OfficerRead the Press Release
Officer indicted for allegedly smuggling contraband into the Terre Haute facility.
TERRE HAUTE – Josh J. Minkler, the Acting United States Attorney, today announced federal charges against a former corrections officer at the United States Penitentiary in Terre Haute, IN. Edward Tunwar, 54, was charged with distribution of a controlled substance and two counts of providing contraband in a prison.
“We have a right as citizens to put full trust and confidence in our public employees,” said Minkler. “When they betray our trust, they will face the full extent of federal law.”
The government alleges that on December 16, 2013, Tunwar, while working as a corrections officer, provided an inmate of the facility with heroin. It is further alleged that between June 1, and December 16, 2014, Tunwar provided an inmate with a cellular telephone and tobacco products.
This case was jointly investigated by the Federal Bureau of Investigation and the United States Department of Justice Office of the Inspector General.
“The FBI will continue to aggressively pursue breaches of the public trust at the local, state and federal levels of government. Public corruption remains a high priority criminal program,” said Special Agent in Charge W. Jay Abbott.
“We are pleased to collaborate with our law enforcement partners to pursue such significant misconduct by a government employee" stated John F. Oleskowicz, Special Agent in Charge of the United States Department of Justice Office of the Inspector General, Chicago Field Office. Oleskowicz continued "We hope that these charges will serve as a deterrence to others who might betray the public trust."
Tunwar had his initial appearance in Federal Court today before a magistrate judge.
According to Senior Litigation Counsel Bradley Blackington, who is prosecuting the case for the government, Tunwar faces up to 41 years in prison if convicted on all counts.
An indictment is only a charge and not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt
U.S. Attorney Kenyen R. Brown and RSA Agree to Increase Access to Battle House Hotel for People with DisabilitiesRead the Press Release
United States Attorney Kenyen R. Brown announced that his office has reached an agreement with the Employees and the Teachers Retirement Systems of Alabama (collectively “RSA”) and their wholly owned subsidiary PCH Hotels and Resorts, Inc. (“PCH”) to make it easier for individuals with disabilities to use the landmark Renaissance Mobile Battle House Hotel and Spa (“Hotel”) in Mobile, AL. The agreement, filed as a consent decree along with a complaint, was approved today by the U.S. District Court for the Southern District of Alabama. It resolves charges by the United States Attorney’s Office that RSA and PCH violated Title III of the Americans with Disabilities Act (ADA) when they constructed and renovated the Battle House Hotel.
The Battle House, a landmark building in downtown Mobile, Alabama, was originally built in 1852. The current structure, built in 1908, was central to the city’s commercial and social life for decades. Closed in the early 1970’s, the hotel remained shuttered until it was purchased by RSA in 2002. During the course of an extensive restoration, RSA added a new parking deck, spa, pool, and fitness center, and constructed the adjacent office building, RSA Battle House Tower (“the Tower’). Today the Battle House once again plays an important part in downtown Mobile civic life and is the flagship of RSA investment in Mobile.
Acting on a complaint from a wheelchair user, in 2013 the United States conducted an ADA compliance survey of the Hotel and Tower. RSA cooperated fully in the survey process, which revealed significant violations of the ADA. In order to ensure that people with disabilities be able to use the Battle House and its amenities to the fullest extent possible, RSA has agreed to remedy all ADA violations and to enter into the consent decree.
The complaint alleges that, among other problems:
- The main entrance to the Battle House on Royal Street has no curb ramps or demarcated passenger loading zones. Wheelchair users must travel along a lane of traffic to reach a city curb ramp at the intersection of Royal and St. Francis Streets to gain access to the Hotel;
- The interior ramp for wheelchair users inside the Dauphin Street entrance is partially obstructed by a structural column. Various other ramps and corridors in the Hotel and Tower are too steep, or do not allow proper turning room;
- Wheelchair users entering the Battle House from St. Francis Street find their path to the Hotel blocked by stairs. As a result, they must turn in the opposite direction and circle around the entire ground floor of the Tower before reaching a ramp which leads to the Hotel;
- The main swimming pool and outdoor hot tub, as well as the spa whirlpools in the men’s and women’s spas, provide no means of access for people with disabilities. Showers and dressing rooms in the spas and fitness center also fail to meet ADA standards;
- The best rooms in the Hotel are unavailable to people with disabilities. Bathrooms and other features of those rooms that are accessible do not comply with the ADA standards;
- There is no signage to indicate the accessible entrances to the Hotel or accessible routes within the Hotel.
In addition to requiring RSA and PCH to remedy ADA violations described in the complaint, the consent decree commits them to adopt new policies and procedures and to provide training on the ADA to employees.
“Ensuring that the historic Battle House is accessible to everyone, including individuals with disabilities, is a win-win resolution,” said United States Attorney for the Southern District of Alabama Kenyen R. Brown. “ADA compliant facilities aid the disabled and make our community more welcoming and business friendly. We commend RSA and PCH for their commitment to open the Battle House to everyone, regardless of disability.”
The claims settled by this agreement are allegations only, and there has been no determination of liability. The investigation and litigation were conducted by the United States Attorney’s Office for the Southern District of Alabama and the Justice Department’s Civil Rights Division. The US Attorney’s Office commends former Assistant United States Attorney Gary Moore and ADA contractor Rick Hinrichs for their investigation of this case, along with DOJ Architect Diane Perry. The attorney handling the case is Assistant United States Attorney Holly L. Wiseman.
The case is captioned United States of America v. Employees Retirement Systems of Alabama, Teachers’ Retirement Systems of Alabama, and PCH Hotels and Resorts, Inc., 1:14-cv-00478-CB-N.
The consent decree was reached under Title III of the ADA, which prohibits discrimination against individuals with disabilities by certain businesses that are open to the public, including hotels. Those interested in finding out more about the ADA may call the Justice Department’s toll-free information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.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. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced that separate criminal charges were filed today in U.S. District Court in Harrisburg against two illegal aliens.
Ramiro Ochoa-Fuentes, age 21, was charged in a one-count indictment by a federal grand jury alleging that Ochoa-Fuentes, a Mexican citizen, who has previously been arrested and deported from the United States on July 6, 2011, reentered the United States unlawfully and was found in Franklin County, Pennsylvania.
If convicted, Ochoa-Fuentes faces a maximum sentence of up to 2 years’ imprisonment and a $250,000 fine.
Pedro Hernandez-Hernandez, age 49, was charged in a one-count indictment alleging that Hernandez-Hernandez, a Mexican citizen, who has previously been arrested and deported from the United States on June 13, 2007, reentered the United States unlawfully and was found in Franklin County, Pennsylvania.
If convicted, Hernandez-Hernandez faces a maximum sentence of up to 6 months’ imprisonment and a $250,000 fine.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and are 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.
Travel Agent Pleads Guilty to $360,000 Fraud Scheme, Stole from Willard High School BandRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a travel agent pleaded guilty in federal court today for stealing $360,000 from the Willard High School Band Boosters, which forced the cancellation of a trip to Hawaii for more than 300 students and chaperones.
Calliope R. Saaga, also known as “Ope,” 40, of Saratoga Springs, Utah, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of wire fraud.
Saaga, doing business as Present America Tours, LLC, contracted with the Willard High School Band Boosters in January 2011 to provide travel arrangements for a June 2012 band trip to Hawaii. Saaga was responsible for booking airfare, lodging, transportation, meals, tours, and travel insurance for more than 300 students and chaperones. The Willard High School Band Boosters wired 12 payments of $30,000 each to Saaga between February 2011 and January 2012.
Saaga booked no reservations as required in the contract. Instead, as he received wire transfers from the band boosters, Saaga used the funds to finance his personal lifestyle, including at least 47 days spent gambling in Las Vegas, Nev.
As a result of Saaga’s diversion of funds, the Willard High School band trip was cancelled and the Willard High School Band Boosters suffered a loss of $360,000.
While he was spending the money of the Willard High School Band Boosters to finance his personal lifestyle, Saaga transmitted e-mails about details of the trip to the Willard High School director of bands, which lulled the band boosters into believing that their trip to Hawaii was on schedule.
Under federal statutes, Saaga is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. 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 Abram McGull II. It was investigated by IRS-Criminal Investigation, the FBI and the Willard, Mo., Police Department.Tioga Man Charged with to Manufacturing MethamphetamineRead the Press Release
The United States Attorney for the Middle District of Pennsylvania announced that a criminal Information was filed yesterday charging Orin Moore, age 41, of Lawrenceville with possession with intent to distribute methamphetamine.
According to U.S. Attorney Peter Smith, on January 6, 2012, the Pennsylvania State Police went to Moore’s residence. They allegedly found over 6 grams of methamphetamine and a facility designed for the manufacturing of methamphetamine. The government also filed a plea agreement which is subject to the approval of the Court.
The investigation was conducted by the Pennsylvania State Police and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Eric Pfisterer.
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 particular case, the maximum penalty for Moore is 20 years in prison, a term of supervised release following imprisonment, and a fine. 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.
Three Sentenced for Roles in Fraudulent Income Tax Return Prep SchemeRead the Press Release
In Waco today, U.S. District Judge Walter S. Smith, Jr., sentenced the owner of A-Kind Bookkeeping and Tax (AKBT) located in Mexia, TX, and her daughter to federal prison for their roles in a fraudulent Income Tax Return preparation scheme announced United States Attorney Robert Pitman and IRS-Criminal Investigation Acting Special Agent in Charge William Cotter.
AKBT owner Patricia “Sissy” Foley was sentenced to two years incarceration followed by three years of supervised release and ordered to pay $842,815 restitution to the IRS after pleading guilty in June to one count of conspiracy to commit tax fraud.
Foley’s daughter, Cassandra Renee Egbert (aka Cassandra Renee Foley), was sentenced to 18 months incarceration followed by three years of supervised release and ordered to jointly pay the same amount of restitution after pleading guilty in June to one count of conspiracy to commit tax fraud.
In addition, Lana Renee Catalena (aka Lana Rene Venable) was sentenced to three years probation and ordered to pay a $4,000 fine after pleading guilty in August to one count of aiding or assisting false or fraudulent tax returns.
A fourth defendant in this case, Joshua Duane Stifle, was scheduled to be sentenced today but instead, he filed a motion to withdraw his guilty plea. In August, Stifle pleaded guilty in August to one count of aiding or assisting false or fraudulent tax returns and one count of making a false statement. Judge Smith has taken his motion under advisement.
According to court records, from January 2007 until April 15, 2010, the defendants were involved in preparing and filing fraudulent Income Tax Returns with the Internal Revenue Service in which they falsely claimed deductions and credits (i.e. head of household, first time home buyer) they knew the filer was not entitled to receive.
“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government and their own clients. Our special agents use their investigative and financial expertise to detect and hold accountable abusive tax return preparers who falsely tell taxpayers they are eligible for tax credits that they are not entitled to receive. These sentences are a reminder that all tax professionals have to respect the law and protect the interests of their clients and the taxpaying public,” stated IRS Criminal Investigation Acting Special Agent in Charge William Cotter.
Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.