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1 October 2014
Felon Sentenced to 41 Months for His Role in a Firearms Straw Purchasing/Trafficking InvestigationRead the Press Release
EUGENE, Ore. – On October 1, 2014, Charles Thornton, 39 years old, of Patterson, California, was sentenced by U.S. District Chief Judge Ann Aiken to 41 months in federal prison for his role in a firearms straw purchasing and trafficking investigation. Upon his release from prison, Thornton will be on supervised release for three years.
In August 2008, Thornton, a felon and crack cocaine dealer, recruited a woman named Eleanor Arceneaux, a crack cocaine customer of his, to buy firearms for him from various firearms dealers in southern Oregon. Thornton needed others to buy firearms because, as a felon, he was prohibited from doing so. Purchases of guns in this manner, where the actual purchaser conceals his involvement from the seller of the firearm, are commonly known as “straw purchases.” Firearms straw-purchasing offenses are particularly reprehensible because those firearms often end up in the hands of people who are not lawfully allowed to possess them and regularly end up being used in violent crimes.
Over the next few months, Arceneaux acted as a straw-purchaser in purchasing approximately 35 firearms for Thornton and others. During the transactions involving Thornton, he gave Arceneaux the money to purchase the firearms, accompanied her to the firearms dealers, instructed her which firearms to purchase, and compensated her with crack cocaine. At least several of the firearms purchased during this scheme surfaced at crime scenes in the Oakland, California area shortly after purchase.
After being federally charged, Thornton pled guilty to three counts of making false statements in connection with the acquisition of firearms and three counts of being a felon in possession of firearms. Arceneaux, for her part, pled guilty in federal court to one count of conspiracy to straw purchase firearms and nine counts of making false statements in connection with the acquisition of firearms, and was sentenced earlier this year to five years of probation.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Federal Grand Jury Indicts Driver in Fatal Accident on Naval Station NewportRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence, R.I., on Tuesday returned a one-count indictment charging Alan Bradley, 53, of Newport, R.I., with operating a motor vehicle in reckless disregard of the safety of others resulting in the death of another person.
Bradley was released on unsecured bond and standard conditions, with the additional condition that he not drive, following his arraignment today before U.S. District Court Magistrate Judge Patricia A. Sullivan. A not guilty plea was entered.
The indictment was brought as a result of an investigation conducted by Naval Criminal Investigative Service and the Rhode Island State Police into a fatal motor vehicle accident which occurred on Naval Station Newport on September 26, 2013. It is alleged that Bradley was driving a vehicle that struck and killed Navy Police Detective Frank Lema.
The indictment is announced by United States Attorney Peter F. Neronha; Leo Lamont, Special Agent in Charge of the Northeast Field Office of Naval Criminal Investigative Service; and Colonel Stephen G. O’Donnell, Superintendent of the Rhode Island State Police.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Operating a motor vehicle in reckless disregard of the safety of others resulting in the death of another person is punishable by a statutory penalty of up to 10 years in federal prison followed by up to 3 years’ supervised release and a fine of up to $5,000.
The case is being prosecuted by First Assistant United States Attorney Stephen G. Dambruch.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]East Texans Charged in Red River Army Depot ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsTEXARKANA, Texas - U.S. Attorney John M. Bales and Colonel Brandon Grubbs, Red River Army Depot Installation Commander, announced today that seven individuals have been indicted on federal charges involving conspiracy to commit an offense and to defraud the U.S. government and theft of government property or money in the Eastern District of Texas.
The defendants were named in a 2-count indictment returned by a federal grand jury on Sep. 17, 2014, charging them with conspiracy to commit an offense against and to defraud the U.S. government and theft of government property or money. These violations are alleged to have caused over $2 million in losses to the Department of the Army and Red River Army Depot. Those charged are:
Kenneth Ray Shackelford, 54, of Texarkana, Texas
Anthony Paul Vera, 54, of Dekalb, Texas
Shaun Dennis Knorr, 35, of Douglasville, Texas
Patrick Ray James, 54, of Hooks, Texas
William Robert Barr, 56, of Atlanta, Texas
Rodney Glen Cornelius, 63, of Queen City, Texas
William Randall Scott, 59, of Dekalb, TexasThe indictment was unsealed today and the defendants are scheduled to make initial appearances before U.S. Magistrate Judge Caroline Craven on Oct. 2, 2014.
Red River Army Depot (RRAD) is a Department of the Army installation in Bowie County, Texas, that employs a large civilian workforce. RRAD’s primary mission is to repair tactical vehicles for the military. RRAD maintains a fleet of tractor-trailers to bring tactical vehicles to and from RRAD for them to be repaired.
Benny Woodard, deceased, of Dekalb, Texas, was an Army civilian employee at RRAD who was responsible for the maintenance of the fleet of tractor-trailers. According to the indictment, it is alleged that beginning in January 2007 until the time of his death in April 2013, Benny Woodard conspired with other RRAD employees and local vendors in the Texarkana area to defraud the Department of the Army by billing RRAD for tires and parts never received and for services never rendered. Shackelford, Vera, Knorr, James, and Barr are vendors of tires, parts, and repair services in the Texarkana area that are alleged to have conspired with Benny Woodard in the alleged scheme. Cornelius and Scott were RRAD civilian employees who are alleged to have facilitated the scheme at the direction of Benny Woodard.
If convicted of conspiracy to commit an offense against or defraud the U.S. government, the defendants each face up to five years in federal prison. If convicted of theft of government property or money, the defendants each face up to 10 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, the Department of the Army Criminal Investigations Division, and the Red River Army Depot Criminal Investigations Division. This case is being prosecuted by Assistant U.S. Attorney D. Ryan Locker.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.Duval County Man Sentenced to 3 Years for Counterfeit Business ChecksRead the Press Release
Jacksonville, Florida – U.S. District Judge Henry Lee Adams yesterday sentenced Terrance Smith (38, Duval County) to 36 months in federal prison for his involvement in passing multiple counterfeit business checks, and for violating the terms of his federal supervised release.
According to court documents, in October 2013, the pastor from a local church contacted the Jacksonville Sheriff’s Office (JSO) and reported that the church’s bank account number was being used on counterfeit business checks that were being cashed throughout Duval County. The sheriff’s office determined that ten individuals had cashed or attempted to cash approximately 25 counterfeit business checks, purportedly from Waste Management and Ciera Staffing, using the church’s bank account number.
From a date unknown, but at least from in or about October 2013, Smith, in conjunction with others, began obtaining and distributing counterfeit business checks using the church’s bank account number. Smith would recruit various individuals and provide transportation to them for the purpose of cashing the checks. When a passer was successful in cashing a check, the proceeds were returned to Smith. After paying a percentage of the proceeds to the passer, Smith retained the remaining cash, or shared it with others involved in recruiting individuals into the scheme.
On November 13, 2013, JSO, U.S. Secret Service, and members of the North Florida High Tech Crime Task Force set up surveillance in a Jacksonville trailer park. A vehicle being driven by Smith, and containing another individual, entered the trailer park. Officers conducted an investigative stop of the vehicle after it exited the park. An inventory of the vehicle revealed counterfeit check stubs listing the purported earnings of employees for various companies, along with torn counterfeit checks supposedly issued by Winn-Dixie.
This case was investigated by the North Florida High Tech Crime Task Force, JSO, and U.S. Secret Service. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Detroit-Area Operator of Adult Day Care Center, Two Home Health Care Company Owners Convicted in $29 Million Medicare Fraud ConspiracyRead the Press Release
A federal jury in Detroit late yesterday convicted the operator of an adult day care center and two individuals who owned and operated a network of home health care companies for their participation in a $29 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Detroit Office and Special Agent in Charge Jarod Koopman of the Internal Revenue Service – Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.
According to evidence presented at trial, Felicar Williams, 51, of Dearborn, Michigan, operated Haven Adult Day Care Center LLC (Haven), which purported to provide adult day care services for patients suffering from mental health disorders such as schizophrenia and dementia. At Williams’s direction, Haven billed Medicare for sophisticated mental health services purportedly provided by other, unlicensed staff members.
Evidence at trial also established that Abdul Malik Al-Jumail, 54, and his daughter, Jamella Al-Jumail, 25, both of Brownstown, Michigan, owned and operated a series of fraudulent home health care companies, including ABC Home Care Inc., Associates in Home Care Inc., Accessible Home Care Inc., Swift Home Care LLC, and Be Well Home Care LLC. The companies billed Medicare for home health services that were not needed or not provided. At the instruction of both Abdul Malik Al-Jumail and Jamella Al-Jumail, employees of the home health companies fabricated patient medical records to make it appear that the services were needed and provided.
According to evidence presented at trial, Abdul Malik Al-Jumail paid kickbacks to Williams to obtain billing information about patients at Haven. He then used the information to bill Medicare for home health care services that were never provided.
In addition, the evidence at trial showed that, on May 2, 2012, the day her father was arrested, Jamella Al-Jumail instructed an employee to retrieve falsified patient medical records from the company. Later that day, Jamella Al-Jumail and others helped burn the false records.
Haven and the various home health care companies billed Medicare for more than $29 million in the course of the conspiracy.
The defendants were charged in a superseding indictment on May 1, 2014. After the 12-week jury trial, Williams was found guilty of conspiracy to commit health care fraud and conspiracy to pay and receive health care kickbacks in relation to the sale of Medicare billing information to Abdul Malik Al-Jumail.
Abdul Malik Al-Jumail and Jamella Al-Jumail were each found guilty of conspiracy to commit health care fraud. Abdul Malik Al-Jumail was also found guilty of conspiracy to pay and receive health care kickbacks. Jamella Al-Jumail was also found guilty of destroying documents in connection with a federal investigation.
Carey Vigor, 61, a psychiatrist from Algonac, Michigan, was also charged in the indictment and was acquitted by the jury.
Sentencing has not yet been scheduled. Two other individuals charged in the indictment, Mohammed Sadiq and Philandis Thomas, are scheduled for trial in October 2014. One individual remains a fugitive.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by HHS-OIG, FBI and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. The case is being prosecuted by Trial Attorneys Patrick Hurford, Chris Cestaro and Brooke Harper of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Department of Justice Announces $63 Million to Support School Safety Research and Reduce Gun ViolenceRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, the Attorney General and the Office of Justice Programs’ National Institute of Justice (NIJ), today announced it has awarded nearly $63 million to school districts and research organizations through the Comprehensive School Safety Initiative (CSSI). CSSI is a large-scale, multi-agency research effort to build knowledge about effective approaches to increasing school safety nationwide.
Through the Initiative, 24 research projects receive funding under two different solicitations. The first, “Investigator-Initiated Research,” includes nine awards to research organizations totaling more than $18 million. The second, “Developing Knowledge about What Works to Make Schools Safe,” provides more than $45 million to 15 school districts and their research partners.
The School Board of Miami-Dade will receive $4,273,799, for its Evaluating Campus Shield program, and the School District of Palm Beach County will receive $3,909,116, for its School Safety and Student Performance Partnership.
“This funding is being awarded as part of the Comprehensive School Safety Initiative – a large-scale, multi-agency research effort to build practical, and scientifically-sound, knowledge about effective ways to increase school safety nationwide,” said Attorney General Holder. “It will enable us to examine and implement additional actions to make schools safer. And it will yield new insights and evidence about what works – and what doesn’t – when it comes to school discipline, violence and bullying reduction, school resource officers, mental health professionals, and justice interventions like youth courts.”
President Obama’s January 2013 plan to end gun violence emphasized keeping guns out of potentially dangerous hands and recognized that additional actions are needed to make our schools safer. CSSI was launched in early 2014 in response to a Congressional request for a broad, research-based effort to increase safety in the nation’s schools.
U.S. Attorney Ferrer stated “The sole focus of children should be on learning, not whether or not their school is safe. I commend the Miami-Dade and Palm Beach County schools for their commitment to examining, and ultimately implementing, the best methodology to keep our community’s children safe and focused on their education.”
“We know a great deal about how to make schools safe in general but very little about the specifics for various settings and populations,” said Dr. William J. Sabol, Acting Director of NIJ. “With this $63 million investment, the nation will gain an understanding of school safety that is scientifically sound, practical, and that can be easily interpreted and used by schools.”
The initiative has three primary goals: to collect national-level data; to convene stakeholders to identify and share best practices; and to conduct innovative research and evaluate pilot projects in school districts. The programs and policies within CSSI are designed to produce evidence about what works in such areas of school safety as effectiveness of school resource officers and mental health professionals, violence and bullying reduction, and effectiveness of such restorative justice interventions as youth courts. The initiative will also examine potential unintended consequences of school safety efforts, including the excessive use of exclusionary discipline and arrests of students.
Although NIJ has primary responsibility for CSSI, the program is a collaborative effort among more than 20 federal partners, including the Departments of Justice, Education, Health and Human Services, Homeland Security, and the Treasury. This partnership will allow the federal government to make a significant impact on school safety by investing limited funds in research that has practical applications for every school in the nation. By determining what interventions work best for specific schools and students, CSSI will provide professionals with a body of knowledge to help them make decisions about which programs will be most effective — and most cost effective — for their particular schools and their challenges.
A list of the awards can be viewed http://nij.gov/topics/crime/school-crime/documents/comprehensive-school-safety-initiative-awards-fy-2014.pdf?utm_source=feature&utm_medium=nijgov-home&utm_campaign=CSSI-awards and more information about CSSI is available at www.nij.gov, keywords: “School Safety.”
The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART).
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.
Defendants Convicted in Manhattan Federal Court for Illegal Distribution of Oxycodone from Pharmacy in YonkersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHRISTINA CHAI, the supervising pharmacist at Stanley Pharmacy in Yonkers, New York (“Stanley Pharmacy”), and HI JONG LEE, the owner of Stanley Pharmacy and also a pharmacist, were found guilty Monday in Manhattan federal court of conspiring to unlawfully distribute hundreds of thousands of pills of oxycodone at Stanley Pharmacy. HI JONG LEE was also convicted of conspiring to launder the proceeds of the unlawful oxycodone distribution and structuring cash deposits to avoid the filing of currency transaction reports (“CTRs”). The defendants were convicted on all counts following a two-week trial before U.S. District Judge Paul A. Crotty and a jury. Previously, on August 20, 2014, a third defendant, JI YUN LEE, the store manager at Stanley Pharmacy, pled guilty before Magistrate Judge Gabriel W. Gorenstein for his participation in the oxycodone distribution conspiracy.
Manhattan U.S. Attorney Preet Bharara said: “These three defendants turned their neighborhood pharmacy into an illegal drug spot where thousands of oxycodone pills were sold for cash to drug addicts and other drug dealers. This Office will continue to prosecute those individuals, including licensed pharmacists, who divert prescription medications for profit.”
According to the charging documents in this case and evidence presented at trial:
From in or about 2011 to in or about January 2013, JI YUN LEE, CHRISTINA CHAI and HI JONG LEE, operating out of Stanley Pharmacy, conspired to distribute large quantities of oxycodone to various individuals – including individuals addicted to oxycodone and individuals who intended to resell the drugs – pursuant to prescriptions that the defendants knew to be stolen, tampered with, or otherwise fraudulent, and that were not issued for a legitimate medical purpose. JI YUN LEE, the Stanley Pharmacy store manager, and not a licensed pharmacist, typically met with the oxycodone customers inside Stanley Pharmacy and delivered the filled prescriptions to them. Stanley Pharmacy charged over $1,000, in cash, for 180 30-milligram oxycodone pills, which was well in excess of the average price for a comparable quantity of lawfully prescribed oxycodone pills. CHAI, the only pharmacist on duty from Monday through Friday, filled over 1,000 fraudulent oxycodone prescriptions, including prescriptions that were obviously tampered with or stolen. HI JONG LEE, the owner of Stanley Pharmacy and its lone weekend pharmacist, deposited the majority of the bulk cash proceeds from the unlawful oxycodone distribution.
During the course of the conspiracy, the defendants distributed over 200,000 oxycodone tablets – over five million milligrams of oxycodone – pursuant to fraudulent prescriptions paid for in cash. In 2012, the quantity of oxycodone purchased by Stanley Pharmacy was more than double the quantity purchased by any other pharmacy in the same zip code.
In total, Stanley Pharmacy brought in over $1.3 million in cash proceeds from the illegal sale of oxycodone. Most of the proceeds were deposited into a bank account controlled by HI JONG LEE. HI JONG LEE, who was responsible for the banking activities of Stanley Pharmacy, regularly deposited the cash proceeds in amounts that, alone or in combination, were just under $10,000, thereby avoiding the required filing of a CTR.
CHRISTINA CHAI, 30, of Edgewater, New Jersey, was convicted of one count of conspiracy to distribute controlled substances. She faces a maximum sentence of 20 years in prison.
HI JONG LEE, 72, of New City, New York, was convicted of one count of conspiracy to distribute controlled substances, one count of conspiracy to commit money laundering, and one count of structuring cash transactions. In connection with the structuring conviction, the jury also found that HI JONG LEE engaged in structuring while violating another law of the United States or as part of a pattern of any illegal activity involving more than $100,000 in a 12-month period. He faces a maximum sentence of 50 years in prison.
JI YUN LEE, 45, of New City, New York, pled guilty to one count of conspiracy to distribute controlled substances. He faces a maximum sentence of 20 years in prison.
The potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing dates have not yet been set.
Mr. Bharara praised the work of the DEA’s New York City Tactical Diversion Squad, which comprises members from the DEA, New York City Police Department, Westchester County Department of Public Safety, the New York State Insurance Bureau, the Rockland County Drug Task Force and the Internal Revenue Service. Mr. Bharara also thanked the Westchester County District Attorney’s Office, including members of the New York State Police, the Yonkers Police Department, and District Attorney Investigators, for their work on the investigation.
The case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Elisha Kobre and Daniel Tehrani are in charge of the prosecution.
U.S. v. Ji Yun Lee et al. Indictment
Defendant Sentenced on Federal Firearm ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Tony Lashone Gray of Mobile was sentenced following a June 2014 guilty plea to a charge of being a prohibited person in possession of a firearm. Gray was previously convicted of Possession of Cocaine in 2007 and 2012, and Theft of Property in 2000, in Mobile County Circuit Court. By virtue of these convictions, Gray is prohibited from possessing firearms or ammunition. Gray knowingly possessed a .45 caliber semiautomatic Glock pistol on December 23, 2013.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1). Chief United States District Court Judge William H. Steele imposed a 92 month sentence of imprisonment, to be followed by 3 years supervised release.
This case was referred for prosecution by the Mobile Police Department and investigated by Special Agent Nicholas P. Murphy of the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Defendant Sentenced in Federal Firearm ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Anthony Terrill Williams of Pensacola, Florida was sentenced following a June 2014 guilty plea to a charge of being a prohibited person in possession of a firearm. Williams was previously convicted of Possession of a Firearm by a Convicted Felon in 2011, in the Circuit Court of Escambia County, Florida. By virtue of prior felony convictions, Williams is prohibited from possessing firearms or ammunition. Williams knowingly possessed a .32 caliber revolver on August 2, 2013.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1). Chief United States District Court Judge William H. Steele imposed a 37 month sentence of imprisonment, to be followed by 3 years supervised release.
This case was referred for prosecution by Officer Rick Oliver of the Daphne Police Department. Assistance in research concerning the firearm was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives.
DOJ Awards Grants to Seattle and Educational Service District to Enhance School Safety and Combat Youth ViolenceRead the Press Release
Acting U.S. Attorney Annette L. Hayes announced today that the Puget Sound Educational Service District and the University of Washington will share a Department of Justice grant of nearly $1.5 million to improve school safety by early intervention with at-risk students. The grant is part of $63 million being awarded nationwide as part of the Comprehensive School Safety Initiative (CSSI). CSSI is a large-scale, multi-agency research effort to build knowledge about effective approaches to increasing school safety nationwide.
“This grant will help identify ways to keep at-risk kids in school and create safer schools for all,” said Acting U.S. Attorney Annette L. Hayes. “The University of Washington will take a rigorous look at the data on early interventions to identify programs that successfully prevent anti-social behavior before it starts.”
In addition to the research grant, the City of Seattle was awarded a $20,000 grant to become part of the National Forum on Youth Violence Prevention. As part of the program, Seattle is eligible for an additional $100,000 once it develops a plan to align and coordinate existing resources, engage in community outreach, and increase the engagement of youth, the faith community, law enforcement, victim services and others to combat youth violence.
Through the Comprehensive School Safety Initiative, the Office of Justice Programs’ National Institute of Justice (NIJ) is funding 24 research projects under two different solicitations. The first, “Investigator-Initiated Research,” includes nine awards to research organizations totaling more than $18 million. The second, “Developing Knowledge about What Works to Make Schools Safe,” provides more than $45 million to 15 school districts and their research partners. The Western Washington grant is in the second group.
“We know a great deal about how to make schools safe in general but very little about the specifics for various settings and populations,” said Dr. William J. Sabol, Acting Director of NIJ. “With this $63 million investment, the nation will gain an understanding of school safety that is scientifically sound, practical, and that can be easily interpreted and used by schools.”
President Obama’s January 2013 plan to end gun violence emphasized keeping guns out of potentially dangerous hands and recognized that additional actions are needed to make our schools safer. CSSI was launched in early 2014 in response to a Congressional request for a broad, research-based effort to increase safety in the nation’s schools.
The initiative has three primary goals: to collect national-level data; to convene stakeholders to identify and share best practices; and to conduct innovative research and evaluate pilot projects in school districts. The programs and policies within CSSI are designed to produce evidence about what works in such areas of school safety as effectiveness of school resource officers and mental health professionals, violence and bullying reduction, and effectiveness of such restorative justice interventions as youth courts. The initiative will also examine potential unintended consequences of school safety efforts, including the excessive use of exclusionary discipline and arrests of students.
Specifically, the grant to the Puget Sound Education Service District and the University of Washington calls for the evaluation of a three-step early warning and intervention process that identifies students at risk and matches effective, brief interventions to meet their needs. The process is designed to shift schools away from disproportionate, reactive and punitive discipline towards a more proactive and positive approach.The National Forum on Youth Violence Prevention aims to build a national conversation about youth and gang violence to increase awareness, drive action, and build local capacity to more effectively address youth violence. It models a new kind of federal and local collaboration, encouraging its members to change the way they do business by sharing common challenges and promising strategies, through comprehensive planning and coordinated action. Currently active in Boston, Chicago, Detroit, Memphis, and Salinas and San Jose, California, today DOJ announced the addition of Long Beach, California; Cleveland, Ohio; Louisville, Kentucky; Seattle, Washington; and Baltimore, Maryland.
Although NIJ has primary responsibility for CSSI, the program is a collaborative effort among more than 20 federal partners, including the Departments of Justice, Education, Health and Human Services, Homeland Security, and the Treasury. This partnership will allow the federal government to make a significant impact on school safety by investing limited funds in research that has practical applications for every school in the nation. By determining what interventions work best for specific schools and students, CSSI will provide professionals with a body of knowledge to help them make decisions about which programs will be most effective — and most cost effective — for their particular schools and their challenges.
A list of the awards and more information about CSSI are available at www.nij.gov, keywords: “School Safety.”
The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART).
Corrections Officer Admits Accepting Cash Bribes in Exchange for Smuggling Marijuana and Cell Phones into Federal Pretrial Detention FacilityRead the Press Release
TRENTON, N.J. – An Essex County corrections officer today admitted his involvement in a scheme to smuggle marijuana, cell phones and tobacco into the Essex County Jail, a federal pretrial detention facility, in exchange for cash bribe payments, U.S. Attorney Paul J. Fishman announced.
Stephon Solomon, 26, of Irvington, New Jersey, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of conspiring to commit extortion under color of official right.
According to the documents filed in this and other cases and statements made in court:
On multiple occasions between October 2013 and May 2014, Solomon, a corrections officer at the Essex County Jail, smuggled contraband – including cell phones, tobacco, and marijuana – to Quasim Nichols, 29, a federal pretrial detainee at the Essex County Jail, in exchange for cash bribes. Darsell Davis, 29, and Dwayne Harper, 30, friends of Nichols, aided in the smuggling scheme by collecting the contraband to be smuggled into the jail. Solomon received the contraband and cash bribes from Davis and then smuggled the contraband to Nichols, who ultimately sold some of the marijuana and cell phones to other inmates. The inmates purchasing marijuana and cell phones from Nichols had their friends and family pay for the items by sending Western Union money transfers to Nichols, who enlisted Davis and others to retrieve those payments for him. Charges against Nichols, Davis and Harper are still pending.
The charge for conspiring to commit extortion under color of official right to which Solomon pleaded guilty carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Under terms of the plea agreement, Solomon will forfeit $4,000, representing his proceeds from the conspiracy. Sentencing is scheduled for Jan. 21, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and investigators with the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Rob Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.
14-354Defense counsel: Jason Orlando Esq., Jersey City, N.J.
Solomon, Stephon Information
Convicted Bomb Plotter Sentenced to 30 YearsRead the Press Release
PORTLAND, Oregon. – Mohamed Osman Mohamud, 23, who was convicted in 2013 of attempting to use a weapon of mass destruction (explosives) in connection with a plot to detonate a vehicle bomb at an annual Christmas tree lighting ceremony in Portland, was sentenced today to serve 30 years in prison, followed by a lifetime term of supervised release.
Mohamud, a naturalized U.S. citizen from Somalia and former resident of Corvallis, Oregon, was arrested on Nov. 26, 2010, after he attempted to detonate what he believed to be an explosives-laden van that was parked near the tree lighting ceremony in Portland. The arrest was the culmination of a long-term undercover operation, during which Mohamud was monitored closely for months as his bomb plot developed. The device was in fact inert, and the public was never in danger from the device.
At sentencing, United States District Court Judge Garr M. King, who presided over Mohamed’s 14-day trial, said “the intended crime was horrific,” and that the defendant, even though he was presented with options by undercover FBI employees, “never once expressed a change of heart.” King further noted that the Christmas tree ceremony was attended by up to 10,000 people, and that the defendant “wanted everyone to leave either dead or injured.” King said his sentence was necessary in view of the seriousness of the crime and to serve as deterrence to others who might consider similar acts.
“With today’s sentencing, Mohamed Osman Mohamud is being held accountable for his attempted use of what he believed to be a massive bomb to attack innocent civilians attending a public Christmas tree lighting ceremony in Portland,” said John P. Carlin, Assistant Attorney General for National Security. “The evidence clearly indicated that Mohamud was intent on killing as many people as possible with his attack. Fortunately, law enforcement was able to identify him as a threat, insert themselves in the place of a terrorist that Mohamud was trying to contact, and thwart Mohamud’s efforts to conduct an attack on our soil. This case highlights how the use of undercover operations against would-be terrorists allows us to engage and disrupt those who wish to commit horrific acts of violence against the innocent public. The many agents, analysts, and prosecutors who have worked on this case deserve great credit for their roles in protecting Portland from the threat posed by this defendant and ensuring that he was brought to justice.”
“This trial provided a rare glimpse into the techniques Al Qaeda employs to radicalize home-grown extremists,” said Amanda Marshall, U.S. Attorney for the District of Oregon. “With the sentencing today, the court has held this defendant accountable. I thank the dedicated professionals in the law enforcement and intelligence communities who were responsible for this successful outcome. I look forward to our continued work with Muslim communities in Oregon who are committed to ensuring that all young people are safe from extremists who seek to radicalize others to engage in violence.”
According to the trial evidence, in February 2009, Mohamud began communicating via e-mail with Samir Khan, a now-deceased al Qaeda terrorist who published Jihad Recollections, an online magazine that advocated violent jihad, and who also published Inspire, the official magazine of al-Qaeda in the Arabian Peninsula. Between February and August 2009, Mohamed exchanged approximately 150 emails with Khan. Mohamud wrote several articles for Jihad Recollections that were published under assumed names.
In August 2009, Mohamud was in email contact with Amro Al-Ali, a Saudi national who was in Yemen at the time and is today in custody in Saudi Arabia for terrorism offenses. Al-Ali sent Mohamud detailed e-mails designed to facilitate Mohamud’s travel to Yemen to train for violent jihad. In December 2009, while Al-Ali was in the northwest frontier province of Pakistan, Mohamud and Al-Ali discussed the possibility of Mohamud traveling to Pakistan to join Al-Ali in terrorist activities. Mohamud responded to Al-Ali in an e-mail: “yes, that would be wonderful, just tell me what I need to do.” Al-Ali referred Mohamud to a second associate overseas and provided Mohamud with a name and email address to facilitate the process.
In the following months, Mohamud made several unsuccessful attempts to contact Al-Ali’s associate. Ultimately, an FBI undercover operative contacted Mohamud via email under the guise of being an associate of Al-Ali’s. Mohamud and the FBI undercover operative agreed to meet in Portland in July 2010. At the meeting, Mohamud told the FBI undercover operative he had written articles that were published in Jihad Recollections. Mohamud also said that he wanted to become “operational.” Asked what he meant by “operational,” Mohamud said he wanted to put an explosion together, but needed help.
According to evidence presented at trial, at a meeting in August 2010, Mohamud told undercover FBI operatives he had been thinking of committing violent jihad since the age of 15. Mohamud then told the undercover FBI operatives that he had identified a potential target for a bomb: the annual Christmas tree lighting ceremony in Portland’s Pioneer Courthouse Square on Nov. 26, 2010. The undercover FBI operatives cautioned Mohamud several times about the seriousness of this plan, noting there would be many people at the event, including children, and emphasized that Mohamud could abandon his attack plans at any time with no shame. Mohamud indicated the deaths would be justified and that he would not mind carrying out a suicide attack on the crowd.
According to evidence presented at trial, in the ensuing months Mohamud continued to express his interest in carrying out the attack and worked on logistics. On Nov. 4, 2010, Mohamud and the undercover FBI operatives traveled to a remote location in Lincoln County, Oregon, where they detonated a bomb concealed in a backpack as a trial run for the upcoming attack. During the drive back to Corvallis, Mohamud was asked if was capable looking at all the bodies of those who would be killed during the explosion. In response, Mohamud noted, “I want whoever is attending that event to be, to leave either dead or injured.” Mohamud later recorded a video of himself, with the assistance of the undercover FBI operatives, in which he read a statement that offered his rationale for his bomb attack.
On Nov. 18, 2010, undercover FBI operatives picked up Mohamud to travel to Portland to finalize the details of the attack. On Nov. 26, 2010, just hours before the planned attack, Mohamud examined the 1,800 pound bomb in the van and remarked that it was “beautiful.” Later that day, Mohamud was arrested after he attempted to remotely detonate the inert vehicle bomb rked near the Christmas tree lighting ceremony
This case was investigated by the FBI, with assistance from the Oregon State Police, the Corvallis Police Department, the Lincoln County Sheriff’s Office and the Portland Police Bureau. The prosecution was handled by Assistant U.S. Attorneys Ethan D. Knight and Pamala Holsinger from the U.S. Attorney’s Office for the District of Oregon. Trial Attorney Jolie F. Zimmerman, from the Counterterrorism Section of the Justice Department’s National Security Division, assisted.
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14-1077
Convicted Bomb Plotter Sentenced to 30 YearsRead the Press Release
PORTLAND, Oregon. –Mohamed Osman Mohamud, 23, who was convicted in 2013 of attempting to use a weapon of mass destruction (explosives) in connection with a plot to detonate a vehicle bomb at an annual Christmas tree lighting ceremony in Portland, was sentenced today to serve 30 years in prison, followed by a lifetime term of supervised release.
Mohamud, a naturalized U.S. citizen from Somalia and former resident of Corvallis, Oregon, was arrested on Nov. 26, 2010, after he attempted to detonate what he believed to be an explosives-laden van that was parked near the tree lighting ceremony in Portland. The arrest was the culmination of a long-term undercover operation, during which Mohamud was monitored closely for months as his bomb plot developed. The device was in fact inert, and the public was never in danger from the device.
At sentencing, United States District Court Judge Garr M. King, who presided over Mohamed’s 14-day trial, said “the intended crime was horrific,” and that the defendant, even though he was presented with options by undercover FBI employees, “never once expressed a change of heart.” King further noted that the Christmas tree ceremony was attended by up to 10,000 people, and that the defendant “wanted everyone to leave either dead or injured.” King said his sentence was necessary in view of the seriousness of the crime and to serve as deterrence to others who might consider similar acts.
“With today’s sentencing, Mohamed Osman Mohamud is being held accountable for his attempted use of what he believed to be a massive bomb to attack innocent civilians attending a public Christmas tree lighting ceremony in Portland,” said John P. Carlin, Assistant Attorney General for National Security. “The evidence clearly indicated that Mohamud was intent on killing as many people as possible with his attack. Fortunately, law enforcement was able to identify him as a threat, insert themselves in the place of a terrorist that Mohamud was trying to contact, and thwart Mohamud’s efforts to conduct an attack on our soil. This case highlights how the use of undercover operations against would-be terrorists allows us to engage and disrupt those who wish to commit horrific acts of violence against the innocent public. The many agents, analysts, and prosecutors who have worked on this case deserve great credit for their roles in protecting Portland from the threat posed by this defendant and ensuring that he was brought to justice.”
“This trial provided a rare glimpse into the techniques Al Qaeda employs to radicalize home-grown extremists,” said Amanda Marshall, U.S. Attorney for the District of Oregon. “With the sentencing today, the court has held this defendant accountable. I thank the dedicated professionals in the law enforcement and intelligence communities who were responsible for this successful outcome. I look forward to our continued work with Muslim communities in Oregon who are committed to ensuring that all young people are safe from extremists who seek to radicalize others to engage in violence.”
According to the trial evidence, in February 2009, Mohamud began communicating via e-mail with Samir Khan, a now-deceased al Qaeda terrorist who published Jihad Recollections, an online magazine that advocated violent jihad, and who also published Inspire, the official magazine of al-Qaeda in the Arabian Peninsula. Between February and August 2009, Mohamed exchanged approximately 150 emails with Khan. Mohamud wrote several articles for Jihad Recollections that were published under assumed names.
In August 2009, Mohamud was in email contact with Amro Al-Ali, a Saudi national who was in Yemen at the time and is today in custody in Saudi Arabia for terrorism offenses. Al-Ali sent Mohamud detailed e-mails designed to facilitate Mohamud’s travel to Yemen to train for violent jihad. In December 2009, while Al-Ali was in the northwest frontier province of Pakistan, Mohamud and Al-Ali discussed the possibility of Mohamud traveling to Pakistan to join Al-Ali in terrorist activities. Mohamud responded to Al-Ali in an e-mail: “yes, that would be wonderful, just tell me what I need to do.” Al-Ali referred Mohamud to a second associate overseas and provided Mohamud with a name and email address to facilitate the process.
In the following months, Mohamud made several unsuccessful attempts to contact Al-Ali’s associate. Ultimately, an FBI undercover operative contacted Mohamud via email under the guise of being an associate of Al-Ali’s. Mohamud and the FBI undercover operative agreed to meet in Portland in July 2010. At the meeting, Mohamud told the FBI undercover operative he had written articles that were published in Jihad Recollections. Mohamud also said that he wanted to become “operational.” Asked what he meant by “operational,” Mohamud said he wanted to put an explosion together, but needed help.
According to evidence presented at trial, at a meeting in August 2010, Mohamud told undercover FBI operatives he had been thinking of committing violent jihad since the age of 15. Mohamud then told the undercover FBI operatives that he had identified a potential target for a bomb: the annual Christmas tree lighting ceremony in Portland’s Pioneer Courthouse Square on Nov. 26, 2010. The undercover FBI operatives cautioned Mohamud several times about the seriousness of this plan, noting there would be many people at the event, including children, and emphasized that Mohamud could abandon his attack plans at any time with no shame. Mohamud indicated the deaths would be justified and that he would not mind carrying out a suicide attack on the crowd.
According to evidence presented at trial, in the ensuing months Mohamud continued to express his interest in carrying out the attack and worked on logistics. On Nov. 4, 2010, Mohamud and the undercover FBI operatives traveled to a remote location in Lincoln County, Oregon, where they detonated a bomb concealed in a backpack as a trial run for the upcoming attack. During the drive back to Corvallis, Mohamud was asked if he was capable of looking at all the bodies of those who would be killed during the explosion. In response, Mohamud noted, “I want whoever is attending that event to be, to leave either dead or injured.” Mohamud later recorded a video of himself, with the assistance of the undercover FBI operatives, in which he read a statement that offered his rationale for his bomb attack.
On Nov. 18, 2010, undercover FBI operatives picked up Mohamud to travel to Portland to finalize the details of the attack. On Nov. 26, 2010, just hours before the planned attack, Mohamud examined the 1,800 pound bomb in the van and remarked that it was “beautiful.” Later that day, Mohamud was arrested after he attempted to remotely detonate the inert vehicle bomb parked near the Christmas tree lighting ceremony
This case was investigated by the FBI, with assistance from the Oregon State Police, the Corvallis Police Department, the Lincoln County Sheriff’s Office and the Portland Police Bureau. The prosecution was handled by Assistant U.S. Attorneys Ethan D. Knight and Pamala Holsinger from the U.S. Attorney’s Office for the District of Oregon. Trial Attorney Jolie F. Zimmerman, from the Counterterrorism Section of the Justice Department’s National Security Division, assisted.
Convenience Store Operator Sentenced to 46 Months for Food Stamp FraudRead the Press Release
Last of Ten Store Owners Indicted in September
Sentenced for $1.2 Million in Fraud
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Abdo Mohamed Nagi, age 55, a citizen of Yemen residing in Baltimore, today to 46 months in prison followed by three years of supervised release for two counts of food stamp fraud and six counts of wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Judge Motz also entered an order that Nagi forfeit $1.2 million which he had illegally obtained from the food stamp program.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.“Abdo Mohamed Nagi collected $1,200,000 from the USDA food stamp program without providing any food,” said U.S. Attorney Rod J. Rosenstein. “He distributed $600,000 in cash to the ‘recipients’ and put $600,000 in cash into his own pocket.”
Nagi entered his guilty plea on the first day of his trial on July 21, 2014. According to the indictment to which he pleaded guilty, Nagi owned and operated New York Deli and Grocery, located at 1207 West Baltimore Street, in Baltimore. Through the store, Nagi participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Nagi knew that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from February 2011 through May 2013, Nagi exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules. Typically, Nagi and kept up to 50 percent of the benefits for himself. To avoid detection, Nagi often debited funds in multiple transactions within minutes of each other. As a result of these illegal cash transactions, Nagi admitted that he obtained more than $1.2 million for food sales that never occurred.
Nagi split the proceeds with the SNAP recipients, keeping approximately $600,000 in illegal profits for himself and distributing $600,000 in cash to recipients.
In separate cases, all 10 convenience store owners or operators indicted in September 2013 in connection with schemes to illegally redeem food stamp benefits in exchange for cash have pleaded guilty to food stamp fraud and/or wire fraud, and all have sentenced to up to 38 months in prison. These defendants were also ordered to pay forfeiture of up to $371,439.21, and/or restitution of up to $1.4 million.
Two more retailers, Abdulmalik Abdulla, age 37, and Ahmed Mohssen, age 54, both of Baltimore, were indicted in January 2014. A federal jury convicted them of food stamp fraud and wire fraud on August 8, 2014, following a four day trial. They are scheduled to be sentenced on November 14, 2014.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who prosecuted this case.
Columbus County Schools Receive National Institute of Justice Comprehensive School Safety Initiative GrantRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today that the Office of Justice Programs’ National Institute of Justice (NIJ) has awarded nearly $63 million to school districts and research organizations through the Comprehensive School Safety Initiative (CSSI). CSSI is a large-scale, multi-agency research effort to build knowledge about effective approaches to increasing school safety nationwide.
Columbus County Schools received $1,499,019 and will partner with Robeson County Schools. The purpose of the proposed 3-year research project is to implement and evaluate a restorative justice school safety initiative that 1) reduces bullying perpetration and victimization, aggression, and violence, 2) enhances school safety and mental health in middle and high school students, and 3) reduces the school to prison pipeline by diverting first offenders from the juvenile justice system into school-based Teen Courts for middle and high schools. The study will be conducted in Columbus and Robeson County. Both of these counties are rural, impoverished and ethnically diverse. Staff from the North Carolina Academic Center for Excellence in Youth Prevention will complete the research evaluation. NC-ACE is one of six CDC-funded youth prevention centers and the only one working in rural areas. Robeson County Teen Court and Youth Services is an agency implementing evidenced-based models of restorative justice programming and will coordinate implementation fidelity for the proposed project.
“This funding is being awarded as part of the Comprehensive School Safety Initiative – a large-scale, multi-agency research effort to build practical, and scientifically-sound, knowledge about effective ways to increase school safety nationwide,” said Attorney General Eric Holder. “These collaborative efforts will yield new insights and evidence about what works – and what doesn’t – when it comes to school discipline, violence and bullying reduction, school resource officers, mental health professionals and justice interventions like youth courts.”
Through the Initiative, 24 research projects receive funding under two different solicitations. The first, “Investigator-Initiated Research,” includes nine awards to research organizations totaling more than $18 million. The second, “Developing Knowledge about What Works to Make Schools Safe,” provides more than $45 million to 15 school districts and their research partners.
“We know a great deal about how to make schools safe in general but very little about the specifics for various settings and populations,” said Dr. William J. Sabol, Acting Director of NIJ. “With this $63 million investment, the nation will gain an understanding of school safety that is scientifically sound, practical, and that can be easily interpreted and used by schools.”
President Obama’s January 2013 plan to end gun violence emphasized keeping guns out of potentially dangerous hands and recognized that additional actions are needed to make our schools safer. CSSI was launched in early 2014 in response to a Congressional request for a broad, research-based effort to increase safety in the nation’s schools.
The initiative has three primary goals: to collect national-level data; to convene stakeholders to identify and share best practices; and to conduct innovative research and evaluate pilot projects in school districts. The programs and policies within CSSI are designed to produce evidence about what works in such areas of school safety as effectiveness of school resource officers and mental health professionals, violence and bullying reduction, and effectiveness of such restorative justice interventions as youth courts. The initiative will also examine potential unintended consequences of school safety efforts, including the excessive use of exclusionary discipline and arrests of students.
Although NIJ has primary responsibility for CSSI, the program is a collaborative effort among more than 20 federal partners, including the Departments of Justice, Education, Health and Human Services, Homeland Security, and the Treasury. This partnership will allow the federal government to make a significant impact on school safety by investing limited funds in research that has practical applications for every school in the nation. By determining what interventions work best for specific schools and students, CSSI will provide professionals with a body of knowledge to help them make decisions about which programs will be most effective — and most cost effective — for their particular schools and their challenges.
A list of the awards and more information about CSSI are available at www.nij.gov, keywords: “School Safety.”
The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART).
Business Owner Sentenced for Wire FraudRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, HILDA PARKER , 57, of Goldsboro, North Carolina, was sentenced to 12 months and 1 day imprisonment followed by 3 years of supervised release for wire fraud by Chief United States District Judge James C. Dever III. She was also ordered to pay $128,983.45 in restitution due in full immediately. PARKER previously pled guilty to that charge on May 22, 2014.
According to information in the public record, HILDA PARKER owned and operated Parker Products, which operated as a broker of goods for the Defense Logistics Agency (“DLA”). Between April 2007 and December 2007, Parker Products was awarded 217 purchase orders valued at $346,508.26 under a streamlined fast-pay purchase system. With respect to 29 of the 217 purchase orders (total value of $128,983.45), Parker Products failed to deliver the goods ordered. HILDA PARKER, however falsely verified via wire shipment of the goods and received payments in connection with those 29 purchase orders. Because of the fast-pay purchase system, DLA made payment on the verification rather than actual receipt of the goods ordered.
Some of the items ordered through HILDA PARKER d/b/a/ Parker Products, Inc. were mission critical. According to Betty J. Lavery, Contracting Officer for the Defense Logistics Agency Land and Maritime, one of the undelivered purchase orders was identified an “emergency buy” – a designation reserved for an acquisition so urgently needed that a delay would result in a “serious injury” to the Government. Specifically, PARKER failed to deliver a repair/replacement part needed in a Light Armored Vehicle (LAV) operated by the U.S. Marine Corps and which was scheduled to be loaded aboard a ship leaving for Iraq. Her failure to deliver the needed part by the delivery date, as well as her other delivery failures, resulted in the degradation of operational readiness for a number of military units.
The criminal investigation of this case was conducted by Defense Criminal Investigation Service. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution of the case.
Buffalo man sentenced for money launderingRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Henry Lloyd, 28, of Buffalo, N.Y., who was convicted of conspiracy to commit money laundering, was sentenced to 46 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that Lloyd conspired with others to transport $364,000 in a vehicle equipped with a hidden compartment where the money was secreted. The vehicle was stopped in eastern Texas where law enforcement officers discovered and seized the currency. Lloyd admitted the money was going to be used to buy cocaine. As part of the conspiracy, the defendant laundered $34,000 in drug proceeds to purchase vehicles from a local car dealer.
The case is related to a multi-kilogram cocaine distribution network between Buffalo and Houston, Texas. Twenty defendants were arrested in that case and to date, 19 have been convicted.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge James S. Higgins, New York Field Field Division.Brunswick Man Pleads Guilty to Crack Cocaine TraffickingRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Garry
Collins, 46, of Brunswick, Maine, pleaded guilty today, in U.S. District Court in Portland to possession with intent to distribute more than 28 grams of cocaine base.According to evidence presented at the plea hearing, on June 3, 2013, Collins and others packaged crack cocaine for distribution at a Portland hotel. The next day, he was found by
Portland Police officers with crack cocaine and arrested.
Collins faces between 10 years and life in prison. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Portland Police Department, the Maine Drug
Enforcement Agency and the Federal Bureau of Investigation.Brighton Resident Sentenced on Child Enticement ChargeRead the Press Release
BOSTON – A Brighton man was sentenced today for coercing and enticing a minor for the purpose of sexual activity.
Zachary Stoloff, 30, was sentenced today by U.S. District Judge F. Dennis Saylor IV to 10 years in prison, five years of supervised release, and ordered that he have no contact with the victim during the period of incarceration and supervised release. Stoloff is also required to register as a sex offender. In June 2014, Stoloff pleaded guilty to coercion and enticement of a minor.
Stoloff met the 14-year-old victim on the Internet and persuaded her to meet with him and engage in sexual intercourse. When she agreed, Stoloff traveled to the victim’s hometown in Massachusetts and then drove her to his Brighton residence where they had sexual intercourse.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Easton Chief of Police Allen Krajcik, made the announcement today. This case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Bridgeport Man with Violent Criminal History Sentenced to 15 Years for Illegal Gun PossessionRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE ROQUE, 47, of Bridgeport, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 180 months of imprisonment, followed by three years of supervised release. On May 16, 2014, a jury found ROQUE guilty of possession of a firearm by a previously convicted felon.
According to the evidence presented during the trial, on September 1, 2010, Bridgeport Police responded to a residential burglary call. When they arrived, the complainant described the burglar and the vehicle he drove from the scene. Later that day, officers spotted ROQUE driving the car and attempted to stop him. After a chase, which involved multiple police cars, ROQUE was stopped, but he refused to exit the vehicle. As one officer attempted to remove him, a second officer approached from the other side of the car and saw a brown gun handle tucked along the right side of the driver’s seat. After ROQUE made a movement toward the gun, the second officer kicked in the passenger window of the vehicle. ROQUE was taken out of the vehicle and tasered when he pushed back at officers.
A search of the vehicle revealed a .38 caliber Smith & Wesson SPL Model #64-2 handgun at the side of the driver’s seat.
ROQUE’s criminal history includes several state felony convictions, including convictions for robbery and burglary in 1984; assault and burglary in 1991; escape in 1992; burglary in 1993, and assault, attempted assault of an officer, attempted escape, attempted riot in an institution, and conspiracy to commit assault in 1994.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
ROQUE was sentenced pursuant to the Armed Career Criminal Act, a federal law imposing severe penalties for firearm or ammunition possession by persons who have been convicted of at least three violent felonies or serious drug offenses. As an Armed Career Criminal, ROQUE faced a minimum term of imprisonment of 15 years and a maximum term of imprisonment of life.
This matter was investigated by the Bridgeport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Rahul Kale and Special Assistant U.S. Attorney Charles Rombeau.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Bozeman School District Receives over 3 Million in Federal Funds for Childhood Trauma and Mental Health ProgramRead the Press Release
HELENA - The Office of Justice Programs' National Institute of Justice (NIJ) today announced it has awarded nearly $63 million to school districts and research organizations across the country through the Comprehensive School Safety Initiative (CSSI). Bozeman School District #7 received $3.3 million for its program called SAFE-TI, which involves individual mental assessments for students, who are then engaged in intervention programs tailored to their specific mental health needs. CSSI is a large-scale, multi-agency research effort to build knowledge about effective approaches to increasing school safety nationwide.
The Bozeman program will examine the impact of large, multi-tiered mental health- and trauma-informed interventions on a wide variety of mental health and school safety outcomes. The program tiers students based on their mental health needs, following individual assessments. Students will be randomly assigned at intake to either an immediate intervention group or a three-month waitlist control group. Interventions will be implemented across 11 schools in a largely rural area with a large population of Native America students. Researchers from the University of Montana will provide evidence of the effectiveness of these interventions on school safety.
Although NIJ has primary responsibility for CSSI, the program is a collaborative effort among more than 20 federal partners, including the Departments of Justice, Education, Health and Human Services, Homeland Security, and the Treasury. This partnership will allow the federal government to make a significant impact on school safety by investing limited funds in research that has practical applications for every school in the nation. By determining what interventions work best for specific schools and students, CSSI will provide professionals with a body of knowledge to help them make decisions about which programs will be most effective - and most cost effective - for their particular schools and their challenges.
President Obama's January 2013 plan to end gun violence emphasized keeping guns out of potentially dangerous hands and recognized that additional actions are needed to make our schools safer. CSSI was launched in early 2014 in response to a Congressional request for a broad, research-based effort to increase safety in the nation's schools.
The initiative has three primary goals: to collect national-level data; to convene stakeholders to identify and share best practices; and to conduct innovative research and evaluate pilot projects in school districts. The programs and policies within CSSI are designed to produce evidence about what works in such areas of school safety as effectiveness of school resource officers and mental health professionals, violence and bullying reduction, and effectiveness of such restorative justice interventions as youth courts. The initiative will also examine potential unintended consequences of school safety efforts, including the excessive use of exclusionary discipline and arrests of students.
A list of the awards and more information about CSSI are available atError! Hyperlink reference not valid. www.nij.gov, keywords: "School Safety."
Box Elder Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Dewey Shane Marrowbone, age 45, was indicted on September 16, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 25, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, at least 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 4, 2014, and August 20, 2014, Marrowbone, who was required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update his sex offender registration.
The charge is merely an accusation and Marrowbone is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Marrowbone was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Berlin Man Sentenced to 41 Months in Prison for Running Investment Fraud Scheme, Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANK METE, 57, of Berlin, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 41 months of imprisonment, followed by three years of supervised release.
According to court documents and statements made in court, from approximately 2009 to November 2012, METE operated an investment fraud scheme in which he held himself out as a broker of hard money loans between investors and purported individual borrowers who were willing to borrow money at interest rates of 15 to 18 percent. In fact, there were no such borrowers. In order to induce the investors to extend loans to the purported borrowers through him as the broker, METE created false promissory notes, mortgage documents and other false records using the names of the fictitious borrowers. After receiving from the victim investors checks that were made out to the purported borrowers, he forged the signatures on the checks and deposited the funds into several bank accounts he opened in the borrowers’ names.
Through this scheme, METE defrauded investors of approximately $1,191,610.50. He used the funds to pay for various personal expenses.
METE also failed to file federal income tax returns from 2009 to 2012, causing a tax loss to the government of approximately $357,324.
METE was ordered to make full restitution to his victim investors. He also was ordered to pay $666,851.84 in back taxes, penalties and interest to the Internal Revenue Service.
On December 4, 2013, METE pleaded guilty to one count of wire fraud and one count of tax evasion.
METE has been detained in state custody on unrelated charges since November 8, 2013.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Arundel Man Sentenced to 1½ Years in Prison for Bank TheftRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jeffrey
Burnham, 42, of Arundel, Maine, was sentenced today in U.S. District Court by Judge George
Z. Singal to 1½ years in prison and 3 years of supervised release for theft by a bank officer.
Burnham pleaded guilty on June 10, 2014.According to court records, from about February 2011 to February 2012, Burnham, who was a Vice President with TD Bank, stole about $240,000 from the bank. Burnham used his corporate credit card to charge personal expenditures at several gentlemen’s clubs located in
Maine, Massachusetts, New York, and Florida and then submitted false expense reports and other false information that caused the bank to pay for those personal expenditures. Burnham also gave TD Bank gift cards that were designed to be given as gifts to TD Bank clients instead to employees of the gentlemen’s clubs.The investigation was conducted by the Federal Bureau of Investigation.
Armed Career Criminal from Santa Fe Sentenced to Fifteen Years for Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Joshua Gomez, 24, of Santa Fe, N.M., was sentenced today to 15 years in federal prison followed by three years of supervised release for being an armed career criminal. The sentence was announced by U.S. Attorney Damon P. Martinez, 1st Judicial District Attorney Angela “Spence” Pacheco, Acting Special Agent in Charge Tom Hernandez of Homeland Security Investigations (HSI) in El Paso, and Chief Eric Garcia of the Santa Fe Police Department.
Gomez was arrested on Feb. 14, 2014, based on a criminal complaint charging him with being a felon in possession of a firearm. He was indicted on March 11, 2014 and charged with unlawfully possessing a firearm and ammunition on Jan. 8, 2014, in Santa Fe County, N.M. According to court records, Gomez was prohibited from possessing firearms or ammunition in Jan. 2014 because he previously had been convicted of many felony offenses, including possession of a firearm by a felon, aggravated fleeing from a police officer, receiving stolen property, residential burglary, burglary, receiving or transferring a stolen vehicle and possession of heroin.According to court filings, on Jan. 8, 2014, officers of the Santa Fe Police Department and HSI agents arrested Gomez on an outstanding arrest warrant. During a search incident to arrest, Gomez informed the officers that he had a gun and gestured toward the front pocket of his sweatshirt where the officers could identify the barrel of a pistol. After the officers seized a loaded pistol from the pocket of Gomez’s sweatshirt, the officers asked Gomez if he was a convicted felon. Gomez admitted being a felon and acknowledged that he was prohibited from possessing firearms or ammunition. Gomez was arrested on state charges which were later dismissed in favor of federal prosecution.
Gomez pled guilty to the indictment on June 26, 2014. Because of his status as an armed career criminal, Gomez faced an enhanced sentence of not less than 15 years in prison.
This case was investigated by the Border Enforcement Security Task Force (BEST Team) from HSI’s Albuquerque office and the Santa Fe Police Department, and was prosecuted by Assistant U.S. Attorney Holland S. Kastrin.
The case was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Annette L. Hayes Appointed Acting United States Attorney for the Western District of WashingtonRead the Press Release
The Executive Office of United States Attorneys has selected Annette L. Hayes to serve as Acting United States Attorney pending the appointment and confirmation of a presidentially appointed United States Attorney for the Western District of Washington. Ms. Hayes has served as the First Assistant United States Attorney since 2010. In that role she has been second-in-command of the U.S. Attorney’s Office and a key leader in both criminal and civil litigation in the office. Ms. Hayes takes over from Jenny A. Durkan, who stepped down yesterday.
Annette L. Hayes joined the U.S. Attorney’s Office in 1997 as an Assistant United States Attorney in the Criminal Division. She was assigned to prosecute a range of drug cases including large-scale, international trafficking and cartel related cases. In 2002, she became the Deputy Supervisor of the Complex Crimes Unit where she prosecuted cyber hacking and intellectual property cases while working with law enforcement on outreach to the private sector. In 2005, she became one of the supervisors of the General Crimes Unit where she worked closely with and trained many new attorneys on a range of federal crimes including child exploitation, drug, fraud, identity theft, immigration and violent crimes cases.
Prior to joining the U.S. Attorney’s Office, Ms. Hayes spent her first six years as an attorney handling a variety of civil litigation matters at law firms in Seattle and Washington, D.C.
Ms. Hayes is a graduate of Cornell Law School and Williams College.
Aberdeen Man Sentenced in Bribery CaseRead the Press Release
First Assistant United States Attorney Randy Seiler announced that an Aberdeen, South Dakota, man convicted of promising an illegal gratuity to a witness was sentenced on September 22, 2014, by U.S. District Judge Charles B. Kornmann.
Nickolas J. Berbos, age 53, was sentenced to 5 years of probation, and ordered to pay a $250,000 fine and a $100 assessment to the Federal Crime Victims Fund. Prior to sentencing, Berbos had served almost three months in custody for violating his bond.
Berbos was originally indicted by a federal grand jury on August 21, 2013, for three counts of False Crop Insurance Claim. He pled guilty to a Superseding Information on June 9, 2014, charging him with Illegal Gratuity to a Witness.
In November 2013, Berbos initiated a conversation with Todd Daniels, one of his employees. During that conversation, Berbos promised to give Daniels additional employment benefits if Daniels would tell investigators and testify in court that Daniels did not run the air seeder on Berbos’ farm during the time period covering some of Berbos’ disputed crop applications. The issue of who was running the air seeder and the accuracy of the air seeder’s numbers was a material issue to the prosecution of the underlying case against Berbos.
This case was investigated by United States Department of Agriculture - Office of Investigations. Assistant U.S. Attorneys Thomas J. Wright and Ann M. Hoffman prosecuted the case.
A.g. Schneiderman, Comptroller Dinapoli and U.s. Attorney Hartunian Announce Arrest and Indictment of Nys Assemblyman William ScarboroughRead the Press Release
Separate State and Federal Indictments Accuse Assemblyman of Stealing Campaign
Funds and Fraudulently Collecting Travel ReimbursementsNEW YORK – Attorney General Eric Schneiderman, Comptroller Thomas P. DiNapoli and United States Attorney for the Northern District Richard S. Hartunian today announced the arrest and indictment of New York State Assemblyman William Scarborough for allegedly stealing campaign funds and falsely collecting travel reimbursements. The 23-count state indictment accuses the Southeast Queens Assemblyman of withdrawing and diverting over $40,000 from the bank account of the “Friends of Bill Scarborough” campaign committee and then using those funds for personal expenses. The 11-count federal indictment charges Scarborough with improperly claiming “per diem” expenses for travel that didn’t take place. If convicted on all charges, he faces up to 37 years in prison.
“The crimes Mr. Scarborough is accused of committing represent a shameful breach of the trust his constituents placed in him,” said Attorney General Schneiderman. “New Yorkers are repeatedly asked to have faith in our leaders, and it appears that faith has been shattered once again. Every time my office arrests a corrupt public official, it sends the message that there must be one set of rules for everyone and no one is above the law, no matter how powerful or well-connected. I also want to thank Comptroller DiNapoli and U.S. Attorney Hartunian – cases like that are made possible only through the great collaboration of our law-enforcement partners.”
"Elected officials cannot use taxpayer money or campaign funds as their personal piggy banks. Assemblyman Scarborough tried to game the system, thinking he could get away with it,” New York State Comptroller Thomas P. DiNapoli said. "Through our joint investigation, we revealed that Assemblyman Scarborough allegedly submitted fraudulent travel vouchers and filed false reports on his use of campaign funds. I will continue to partner with Attorney General Eric Schneiderman, U.S. Attorney Richard Hartunian, the Federal Bureau of Investigation and prosecutors across the state to root out corruption and bring corrupt officials to justice."
U.S. Attorney Richard S. Hartunian said: “Today’s indictments demonstrate the commitment of state and federal authorities to combat the fraud and corruption that has plagued our political system. Our elected officials are expected to safeguard the integrity of their office and follow all the rules. When they fail to do so, law enforcement will respond. I heartily commend Attorney General Schneiderman and Comptroller DiNapoli for their vigorous pursuit of this case. The collaboration between state and federal investigators that has brought about these indictments has proven to be an effective tool in identifying and rooting out corruption in our state government.”
State Indictment
According to documents made public today in connection with the state investigation, part of an ongoing effort between Schneiderman and DiNapoli known as “Operation Integrity” and conducted with the assistance of the FBI, Scarborough engaged in a pattern of illegal activity over the last seven years. Bank records obtained as part of the investigation show that between January 2007 and March 2014, Scarborough made numerous withdrawals and transfers from his campaign committee’s account totaling approximately $38,000. Some of that money was taken out directly as cash withdrawals; some was transferred into his personal account, according to the indictment and court papers. Additionally, Scarborough deposited five checks made payable to “Friends of Bill Scarborough,” totaling $3,450, directly into his personal bank account.The state indictment, filed in New York State Supreme Court in Albany, accuses Mr. Scarborough of then spending that cash for his own personal use, in violation of New York State Election Law, which says that “[c]ontributions received by a candidate or a political committee … shall not be converted by any person to a personal use.”
Mr. Scarborough also allegedly attempted to conceal his illegal conduct by not reporting the withdrawals to the state Board of Elections, as legally required. Between 2007 and 2014, there were 21 separate filings made with the Board of Elections that did not account for the withdrawals. Additionally, the money has never been accounted for in the campaign committee’s financial records.
The indictment charges Scarborough with two felony counts of Grand Larceny and 21 felony counts of Offering a False Instrument for Filing.
Federal Indictment
The federal investigation, conducted by the United States Attorney’s Office and the Albany Division of the Federal Bureau of Investigation, focused on the alleged improper claiming of “per diem” payments and other travel-related expenses from 2009 to 2012. In a federal indictment, filed today in United States District Court in Albany, Assemblyman Scarborough has been charged with four (4) counts of Theft Concerning a Program Receiving Federal Funds for allegedly submitting 174 false reimbursement vouchers for per diem expenses, mileage and tolls in excess of $40,000 between January 2009 and December 2012. If convicted, Scarborough faces a maximum term of imprisonment of not more than 10 years and a $250,000 fine. Scarborough was also charged with seven (7) counts of Wire Fraud relating to communications directing payment of specific false New York State Travel Vouchers to his bank account. If convicted, these counts carry a maximum term of imprisonment of not more than 20 years and fine up to $250,000.The Attorney General, Comptroller and U.S. Attorney thank the Albany office of the FBI and Deputy Comptroller Nelson Sheingold and Investigator Rebecca Shanley of the State Comptroller’s Office for their cooperation and assistance in this investigation.
Prosecuting the state case is Senior Counsel Darren Miller of the Attorney General’s Public Integrity Bureau, which is led by Deputy Bureau Chief Stacy Aronowitz and Bureau Chief Daniel Cort. Kelly Donovan is the Executive Deputy Attorney General for Criminal Justice. The state’s investigation was handled by Investigator Mark Spencer and Deputy Bureau Chief Antoine Karam of the Investigation Bureau, which is led by Chief Dominick Zarrella. Forensic auditor Jason Blair and legal analyst Sara Pogorzelski provided additional assistance.
The federal investigation was handled by the FBI, Albany Division. The federal case is being prosecuted by Assistant U.S. Attorney Jeffrey Coffman.
All charges are merely accusations and all defendants are presumed innocent unless and until proven guilty in a court of law.
22 Defendants Charged for Alleged Roles in Connected Drug Rings Extending from Mexico to Chicago and Across the U.S.Read the Press Release
CHICAGO — Twenty-two defendants are facing federal narcotics charges here for their alleged roles in importing, supplying, and distributing kilogram quantities of heroin and cocaine through interconnected drug trafficking organizations that operated in the Chicago area, as well as in Mexico, California, Oregon, Indiana, Ohio, and Pennsylvania. The investigation resulted in the seizure of more than $3.9 million from a residence in suburban Park Ridge in April 2013, as well as dozens of kilograms of cocaine, heroin, and marijuana.
Beginning Monday night through yesterday, 14 defendants were arrested in the Chicago area, two in California, and one each in Iowa and Pennsylvania, following an investigation led by FBI and DEA agents and other law enforcement partners assigned to the Chicago Strike Force, a permanent task force of centrally housed federal, state, and local law enforcement agencies targeting the intersection of drug cartels’ large-scale smuggling of narcotics and local street gangs’ extensive distribution organizations. Three others were already in custody, and one is a fugitive believed to be in Mexico.
Approximately $500,000 and a kilogram of cocaine were seized yesterday during the arrest of one defendant in Philadelphia. In Chicago, a loaded .32 caliber revolver, thousands of dollars in cash, and quantities of cocaine and heroin were seized during the arrests. In total, agents seized approximately $5 million, 78 kilos of cocaine, and 20 kilos of heroin, and a large quantity of marijuana during the entire investigation.
The defendants were charged with conspiracy or possession with intent to distribute narcotics in three separate criminal complaints that were filed Monday in U.S. District Court and unsealed following the arrests. The defendants arrested here had their initial appearances yesterday and were scheduled to have detention hearings starting tomorrow and continuing through Monday before U.S. Magistrate Judge Susan Cox in U.S. District Court.
“The Chicago Strike Force is a powerful collaboration of local, state, and federal law enforcement focused on the choke point between narcotics suppliers and street-level distributors,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “This investigation demonstrates the wisdom of the Strike Force and illustrates how dedicated teamwork can rise above jurisdictional and geographic borders, across state and international lines, to stem the flow of narcotics into our communities,” he said.
Mr. Fardon announced the charges with Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation; Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; Gary Hartwig, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); and Garry F. McCarthy, Superintendent of the Chicago Police Department. The Addison, Berwyn, Oak Lawn, and Park Ridge police departments and the DuPage Metropolitan Enforcement Group also assisted in the investigation.
The Chicago Strike Force ― in addition to the DEA, FBI, HSI, and CPD ― also consists of the Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and officers from various state and local law enforcement agencies, including the Cook County Sheriff’s Police Department and the Illinois State Police.
“These Strike Force arrests demonstrate our collaborative and continuing endeavor to attack the persistent problem of drug trafficking in Chicago and the surrounding communities. I’d like to thank the United States Attorney’s Office and the DEA, our partners in this investigation, as well as the Chicago Police Department and Homeland Security Investigations, whose contributions were vital to the success of yesterday’s operation,” Mr. Holley said.
“This investigation is an example of the extraordinary work being done by the men and women at the Chicago Strike Force. Guns and drugs continue to be the underlying source of much of our city’s violence and yesterday’s arrests effectively dismantled a significant international criminal organization and its distribution network, responsible for trafficking narcotics on the streets of Chicago,” Mr. Riley said. “I applaud the FBI and the U.S. Attorney’s Office, as well as the other members of the Strike Force, for the exceptional job they did investigating these organizations.”
One of the three complaints charges VICTOR MATA MADRIGAL, 37, of Lombard, and eight members or associates of his alleged drug trafficking organization. Mata Madrigal allegedly imported wholesale amounts of cocaine and marijuana from Mexico into Chicago and distributed those narcotics to various wholesale customers.
On April 16, 2013, Strike Force agents seized $3,927,359 in alleged drug proceeds belonging to the Mata Madrigal organization from a residence in the 700 block of North Lincoln Avenue in Park Ridge. The cash was found inside numerous duffel bags, roller bags, and backpacks. Also seized were multiple cell phones, money counters, and packaging materials used to secure the cash. Mata Madrigal was arrested the same day and the complaint alleges that he continued to direct the drug operation while he was in custody.
The complaint charges that between April 2012 and May 2014 Mata Madrigal conspired with co-defendants JORGE SANCHEZ, of Philadelphia; JORGE MICHEL-MONROY, 45, of Philadelphia; SERGIO ZEPEDA, 30, of Berwyn; RAMON CONTRERAS, 23, of Chicago; ANTONIO MEIJA RODRIGUEZ, believed to be in Mexico; BALMORE URBANO, 31, of Bensenville; and STEPHANIE ARREDONDO, 22, of Franklin Park, to possess and distribute cocaine. The complaint also charges RICARDO HERNANDEZ, 30, of Chicago, and Urbano with possession with intent to distribute cocaine. If convicted, these nine defendants face a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine.
Another complaint charges DANIEL CONTRERAS, 36, of Bellwood, with working with multiple individuals to obtain and sell wholesale quantities of cocaine. Daniel Contreras and codefendants ROBERTO CORTEZ, 39, of Rialto, Calif., and MICHAEL AGUIRRE, 26, of Maywood, allegedly purchased cocaine from the Mata Madrigal organization. Daniel Contreras also allegedly worked separately with HECTOR MURILLO, 29, of Cicero, and ADAN BACA, 36, of Schaumburg, to sell distribution-sized quantities of cocaine. Co-defendants RAFAEL RUIZ, 36, of Bellwood; ARMANDO GARCIA, 38, of Bellwood; and JOSEPH DE LA VEGA, 52, of Chicago, were allegedly wholesale cocaine customers of Daniel Contreras. EITEL MENDOZA, 37, of Culver, Ore., allegedly worked with Cortez to transport kilos of cocaine from Oregon to Illinois. If convicted, eight of these defendants face a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine, while De La Vega alone faces a maximum sentence of 20 years in prison and a $1 million fine.
The third complaint charges JUAN MOYANO, 33, of Chicago, with purchasing narcotics from the Mata Madrigal organization and managing his own drug trafficking organization in Chicago that distributed heroin and cocaine, as well as possessed and transferred firearms. Moyano allegedly conspired with co-defendants NIKKOLAS CASILLO, 28, of Chicago, and JOSE VASQUEZ, 30, of Chicago, to distribute narcotics to their customers. Co-defendant JIM BAARTZ, 41, of Crystal Lake, was an alleged heroin customer of Moyano. If convicted, Moyano, Casillo, and Vasquez face a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine, while Baartz alone faces a maximum sentence of 20 years in prison and a $1 million fine.
The government is being represented by Assistant United States Attorneys Patrick Otlewski and Nicole Kim.
The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Madrigal Complaint
Contreras Complaint
Moyano Complaint
30 September 2014
White House Drug Policy Acting Director Announces Designation of 26 Cities and Counties as High Intensity Drug Trafficking Areas, Including One Western District of Virginia LocationRead the Press Release
ROANOKE, VIRGINIA – Today, Michael Botticelli, Acting Director of National Drug Control Policy (ONDCP), announced the designation of 26 additional counties and cities in 11 states as High Intensity Drug Trafficking Areas (HIDTAs). The designations will enable the 26 counties and cities to receive Federal resources to further the coordination and development of drug control efforts among Federal, state, local, and tribal law enforcement officials. It also will allow local agencies to benefit from ongoing HIDTA-coordinated initiatives working to reduce drug use and its consequences across the United States.
Locally, Tazewell County in Southwest Virginia was added to the Appalachia HIDTA.
“The admission of Tazewell County into the Appalachia HIDTA program will provide much needed resources for law enforcement in our ongoing effort to stem the tide of opiate abuse in Southwest Virginia,” United States Attorney Timothy J. Heaphy said today. “HIDTA provides valuable assistance to investigators, including funding for training, overtime and equipment. HIDTA also facilitates information sharing about particular cases and targets across jurisdictional lines. These much-needed resources will support ongoing efforts in Tazewell County and plug that county into a larger, multi-state enforcement network.”
Created by Congress in 1988, the HIDTA program serves as a catalyst for coordination among Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug trafficking regions of the United States. Law enforcement organizations working within HIDTAs assess drug-trafficking problems and design specific initiatives to decrease the production, transportation, distribution, and chronic use of drugs and money laundering. There are currently 28 HIDTAs located in 47 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
In July, the Obama Administration released a science-based drug policy that addresses the national drug challenge as a public health issue, not just a criminal justice issue. The 2014 National Drug Control Strategy is built upon the latest scientific research demonstrating that addiction is a chronic disease that can be successfully prevented and treated, and from which people can recover. The Strategy directs Federal agencies to expand community-based efforts to prevent drug use before it begins, empower healthcare workers to intervene early at the first signs of a substance use disorder, expand access to treatment for those who need it, support the millions of Americans in recovery, and expand “smart on crime” approaches to drug enforcement while reducing the stigma associated with substance use disorders.
For more information about the Office of National Drug Control Policy visit: http://www.whitehouse.gov/ondcp.
For information on the High Intensity Drug Trafficking Areas program visit: www.whitehouse.gov/ondcp/high-intensity-drug-trafficking-areas-program.
Virginia Man Sentenced to 12 Years in Prison for Sexual Assault in Southeast Washington-Defendant Laughed as EMTs Carried Unconscious Victim Out of Apartment-Read the Press Release
WASHINGTON – Jose Santos, Jr., 24, of Falls Church, Va., was sentenced today to 12 years in prison on charges stemming from a sexual assault of a woman in June of 2013, U.S. Attorney Ronald C. Machen Jr. announced.
Santos was found guilty by a jury in March 2014, in the Superior Court of the District of Columbia, of first-degree sexual abuse with aggravating circumstances. He was sentenced by the Honorable Rhonda Reid Winston. Following his prison term, Santos will be placed on five years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, Santos and the victim met during the week of the attack and had gotten together twice. On June 27, 2013, they agreed to get together a third time, and they socialized at an apartment in Southeast Washington with friends. In the midst of a consensual sexual encounter between Santos and the victim, Santos forcefully, and without the victim’s consent, grew violent and sexually assaulted her.
The victim’s injuries required several immediate surgeries, and she nearly died from having lost so much blood due to internal trauma. After the assault, Santos was seen bragging about what he had done by the emergency medical personnel who responded to the scene.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department’s Sexual Assault Unit. He also praised those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson, Paralegal Specialists D’Yvonne Key and Jason Manuel, and Litigation Technology Specialist Kimberly Smith. Finally, he commended the efforts of Assistant U.S. Attorneys Mervin A. Bourne, Jr., and Jeff Cook, who prosecuted the case at trial.
14-222Virginia Man Sentenced to 11 Years in Prison for Traveling to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – Chad Pyles, 23, of Arlington, Va., was sentenced today to 11 years in prison on federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Pyles pled guilty in February 2014 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Richard J. Leon. Upon completion of his prison term, Pyles will be placed on 25 years of supervised release.
According to the government's evidence, on Aug. 7, 2013, Pyles contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, Pyles engaged in e-mail and text message conversations with the undercover officer, whom he believed was the father of an under-aged girl. Pyles arranged with the undercover officer to meet for the purpose of engaging in sexual acts with that child.
During their communications, Pyles also sent the undercover officer five images of child pornography. On Sept. 10, 2013, Pyles traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested. Pursuant to a search of Pyles’s computer, law enforcement recovered several videos of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
14-220United States Hosts Global Alliance Against Child Sexual Abuse Online Ministerial ConferenceRead the Press Release
Today, United States Attorney General Eric Holder and European Union (EU) Commissioner for Home Affairs Cecilia Malmström welcomed high-level government officials representing over 30 members of the Global Alliance Against Child Sexual Abuse Online to a ministerial conference in Washington. The Global Alliance was launched by Attorney General Holder and Commissioner Malmström in December 2012 with the aim of uniting decision-makers all around the world to commit to more effectively identify and rescue child sexual abuse victims, investigate and prosecute online exploitation offenses, increase public awareness of the risks posed by children’s online activities, and reduce the amount of child sexual abuse images available online.
“Together, thanks to the hard work of the Global Alliance countries, this important, life-changing work has enabled us to intervene to rescue numerous child victims suffering at the hands of abusers; to arrest and prosecute those who did them harm; and to begin the long process of healing for each one of these survivors,” said Attorney General Holder. “I have no doubt that this work will continue – and be amplified – by the work we’re discussing today.”
The conference was divided into two sessions. The morning session featured global leaders and experts from the investigative, public policy, victim advocacy and legal arenas, who shared insight and experience from the cutting edge of combating online child exploitation. They addressed a variety of topics related to the shared policy targets of the Global Alliance, including: investigative tactics that enabled the takedown of a hidden, highly sophisticated global enterprise of distributors of child sexual abuse images; the latest technological and tactical breakthroughs in identifying previously unknown victims of child sexual abuse online; and novel approaches to partnering with the private sector to combat the online proliferation of child sexual abuse images. The afternoon ministerial session featured keynote speakers from law enforcement and from the private sector with deep experience in combating the online exploitation of children. In addition, ministerial or other high-level government officials from each nation in attendance highlighted notable accomplishments over the past two years related to the Alliance’s policy targets, as well as offering their vision for the Alliance’s future.
“The threat to young people posed by online sex predators is on the rise,” said Commissioner Malmström. “Challenges are constantly evolving. Every time a picture of an abused child is shown that child is being abused, over and over again. The global alliance shows our collective willingness to fight this hideous crime, something we can only do by working together. Our collective promises must become a reality.”
The states participating in the Alliance include Albania, Armenia, Australia, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Cambodia, Canada, Costa Rica, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Ghana, Greece, Hungary, Ireland, Israel, Italy, Japan, Kosovo, Latvia, Lithuania, Luxembourg, Malta, Mexico, Montenegro, the Netherlands, New Zealand, Nigeria, Norway, the Philippines, Poland, Portugal, the Republic of Korea, the Republic of Moldova, Romania, Serbia, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Thailand, Turkey, Ukraine, the United Kingdom and the United States.
Global Alliance: Greater Commitments for Better Results
At the conclusion of the conference, the 54 Alliance members endorsed a Ministerial Declaration that commits to addressing the transborder obstacles to identifying and rescuing victims of exploitation and to identifying and prosecuting offenders, by agreeing to pursue the following potential actions where and when possible, in full respect of due process and fundamental rights requirements:
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Enabling law enforcement among Global Alliance countries to gain timely access to electronic information and evidence held by Internet service providers and other repositories of electronic information that is material to the investigation and prosecution of child sexual abuse offenses through central authorities and other legally authorized channels, so that no nation becomes a safe haven for such information;
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Facilitating prompt and comprehensive exchange among law enforcement of information and evidence pertinent to child sexual abuse offenses featuring transborder offense conduct, victims, co-conspirators or evidence repositories;
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Enabling Internet service providers and other repositories of electronic information to provide information pertinent to the identification, apprehension, and ultimate prosecution of online child sexual abuse offenders to law enforcement pursuant to legal process in a manner and time frame consistent with reasonable investigative and prosecutorial demands; and
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Augmenting existing, collaborative and transborder efforts to identify and rescue victims of online child sexual abuse.
Background
The United States, through the Department of Justice, the Department of Homeland Security, the Postal Inspection Service and other government agencies, in collaboration with non-governmental organizations (NGOs), industry and international partners, has made progress in combating all forms of child sexual exploitation.
For example, this past March, the Department of Justice obtained a 30-year sentence against a United States citizen who served as an English teacher in China, using that position of authority to molest children under the age of 12 and to produce child pornography. In July, the department obtained a sentence of 120 years against a noncommissioned officer in the U.S. military who had drugged and sexually abused children, producing images and videos of that horrific abuse.
A recent U.S. operation targeting offenders exploiting children on a global scale secured convictions of 30 and 40 years, respectively, for Peter Truong and Mark Newton. Truong and Newton were residents of Queensland, Australia who brought their five-year-old son to the United States and France to meet with other men from various countries, so that these persons could record the sexual abuse of the minor victim. Over the course of this scheme to sexually exploit their son, Newton and Truong were also found to have engaged in a conspiracy to transport the child pornography produced during these encounters to individuals around the world, including individuals living in Florida, Virginia, and Indiana. It was this trafficking of materials that alerted United States Postal Inspectors and Indiana investigators to the case, launching the two year investigation of Newton, Truong, and the other men who conspired to abuse their son. Prosecutions of these other men are ongoing.
In addition, the U.S. Congress has funded the creation of state-level task forces, known as the Internet Crimes Against Children (ICAC) Task Forces, which help state and local agencies to develop successful, long-term responses to online child exploitation. These task forces are supported by the Department of Justice, not just with funding, but with training.
As threats to our children continue to evolve in every corner of the globe, the Department of Justice is committed to drawing upon the collective experience of every country, and the cooperation of every community, to protect our young citizens and to hold abusers accountable to the fullest extent of the law. For more information regarding the Justice Department’s efforts to combat child exploitation, please visit: http://www.justice.gov/criminal/ceos.
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U.S. Attorney Paul J. Fishman Announces Department of Justice Hiring Grants to Help Reduce Violence and Protect Schools in New JerseyRead the Press Release
Grants Awarded to Hire School Resource Officers, Reduce Violence and Address Other Critical Law Enforcement Needs
NEWARK, N.J. – U.S. Attorney Paul J. Fishman, following yesterday’s announcement by the U.S. Department of Justice Office of Community Oriented Policing Services (COPS) of nearly $124 million in nationally awarded funding, today announced the specific funding awards for the District of New Jersey.
Ten cities and counties in New Jersey will receive more than $12.2 million in funding awards aimed at creating, and in some cases protecting, 87 law enforcement positions.
“Local law enforcement is in the streets every day working to reduce violent crime and create safer neighborhoods,” said U.S. Attorney Fishman. “This federal funding recognizes the importance of community policing as a critical piece of our crime prevention strategy. Putting more cops on the beat helps to build community trust, and that is one of the most effective things we can do to combat crime.”
The grantees and amounts awarded include:
Recipient
Total Officers Awarded
Estimated Award Amount
6
$750,000
Camden County Police Department
15
$3,248,200
Irvington, Township of
8
$1,000,000
Jersey City
15
$1,875,000
Long Branch Police Department
5
$625,000
Newark, City of
15
$1,875,000
Paramus Police Department
5
$623,592
Phillipsburg, Town of
1
$125,000
Trenton, City of
12
$1,500,000
Wildwood Police Department
5
$625,000
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community police officers. The program provides salaries and benefits for officer and deputy hires for three years.
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
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U.S. Attorney Joyce White Vance Addresses Alabama Prison Reform TaskforceRead the Press Release
MONTGOMERY – In a meeting of the Alabama Prison Reform Taskforce, U.S. Attorney Joyce White Vance affirmed the Department of Justice’s support for the taskforce to conduct the process of Justice Reinvestment. Since 2010, Vance has collaborated with state criminal justice agencies through the North Alabama Reentry Council in an effort to implement best practices to improve public safety by reducing criminal recidivism.
Vance told taskforce members that federal and state prosecutors are diligent in their prosecution of criminals, but, she added, "We can't just be tough on crime. We must also be smart."
“The Department of Justice does not support Justice Reinvestment only because it is cost-efficient," Vance said. "Justice Reinvestment reduces crime and lowers criminal recidivism by giving offenders the support and training to get off drugs and get jobs.”
The Alabama Prison Reform Taskforce is a legislatively created body of representatives from a multitude of Alabama’s governmental agencies, which is charged to work with the Council of State Governments to implement Justice Reinvestment policies.
Justice Reinvestment is a data-driven process where jurisdictions evaluate current practices in criminal justice and redesign policies to become more effective in reducing crime and costs. Justice Reinvestment initiatives have been implemented in 17 states, saving a projected $4.6 billion over 10 years, Vance said. For 2014 alone, the Department of Justice has committed $85 million for Justice Reinvestment initiatives.
"We have a narrow timeframe for action," Vance said. "But, through your action, we can achieve the level of success that other states have reaped."
Two Defendants Charged in Connection with Detroit-Area Home Health Kickback SchemeRead the Press Release
Two Detroit-area residents were arrested today on charges related to a Medicare fraud scheme in which they are alleged to have referred Medicare beneficiaries to home health care agencies in exchange for kickbacks.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office, and Acting Special Agent in Charge Jarod Koopman, of the Internal Revenue Service - Criminal Investigation (IRS-CI) Detroit Field Office, made the announcement.
Sophia Eggleston, 52, of Farmington Hills, Michigan, and Sekne Ali, 48, of Dearborn, Michigan, were charged in a four-count indictment, unsealed today, with conspiracy to violate the Anti-Kickback Statute and substantive violations of the Anti-Kickback Statute. The indictment alleges that both defendants recruited Medicare beneficiaries to two home health agencies in Oakland County, Michigan – Prestige Home Health Services Inc. and Royal Home Health Care Inc. – and were paid kickbacks for the patient referrals. Both agencies purported to provide in-home health care services to Medicare beneficiaries.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and James P. McDonald of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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Two Additional Ironworkers Plead GuiltyRead the Press Release
PHILADELPHIA- Two members of the Ironworkers Local 401, Edward Sweeney and Shawn Bailey, pleaded guilty today in United States District Court before the Honorable Michael Baylson. Sentencing hearings have been scheduled for January 27, 2015 and February 2, 2015, respectively.
Edward Sweeney, 53, of Philadelphia, PA pleaded guilty to RICO conspiracy, maliciously damaging property by means of fire, use of fire to commit a felony, maliciously damaging property by means of fire, conspiracy to maliciously damage property by means of fire, and attempted maliciously damaging property by means of fire. At the time, Sweeney was a business agent for the Ironworkers Local 401 and participated in a series of incidents on behalf of that union as part of the plan by the defendants to force non-union contractors to hire union labor. Specifically, Sweeney admitted that he participated in 10 incidents of extortion or attempted extortion. Sweeney further admitted his involvement in the Quaker Meetinghouse arson, an arson on Grays Avenue in Philadelphia, and an attempted arson in Malvern, as well as other episodes, all of which were in retaliation for the contractors’ failure to hire union ironworkers.
Shawn Bailey, 34, of Philadelphia, PA pleaded guilty to Hobbs Act Extortion for his participation in an extortion of a non-union contractor working on a warehouse on Grays Avenue in Philadelphia.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525- Three Sentenced for Involvement in Conspiracy to Export Firearms
The Justice Department Awards $5.1 Million to Hire Police Officers in Northern OhioRead the Press Release
The U.S. Department of Justice announced funding awards to seven cities and agencies in the district, aimed at creating, and in some cases protecting, 41 law enforcement positions, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio
Nearly $124 million will be awarded nationally from the Justice Department’s Office of Community Oriented Policing Services (COPS), including $5.1 million in the Northern District of Ohio.
The list of this year’s grantees includes:
- Austintown, $250,000 for two officers.
- Canton, $1,125,000 for nine officers.
- Cleveland, $1,875,000 for 15 officers.
- The Cleveland Metropolitan Housing Authority, $500,000 for four officers.
- Lima, $375,000 for three officers.
- Lorain, $625,000 for five officers.
- Warren, $375,000 for three officers.
“The Justice Department is proud to support the brave men and women serving and protecting our communities in the Northern District of Ohio,” Dettelbach said. “As we work together to develop innovative strategies to reduce firearms violence, dismantle gang activity and break cycle of violence, we need to help the people on the front lines to fight crime.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Six Defendants Charged for $6 Million Miami Home Health Care Fraud SchemeRead the Press Release
Six South Florida residents have been indicted for their alleged participation in a $6.2 million Medicare fraud scheme involving defunct home health care company Professional Medical Home Health LLC (Professional Home Health).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
On Sept. 25, 2014, a federal grand jury in Miami returned a 14-count indictment charging Ernesto Fernandez, 48, Dennis Hernandez, 32, Jose Alvarez, 47, and Joel San Pedro, 44, all of Miami; Alina Hernandez, 38, of West Palm Beach; and Juan Valdes, 37, of Palm Springs, for their roles in defrauding Medicare and soliciting and receiving health care kickbacks.
According to allegations in the indictment, the defendants recruited patients for Professional Home Health, a Miami home health care agency. As part of the scheme, the defendants solicited and received kickbacks from the owners and operators of Professional Home Health in exchange for providing beneficiaries for home health services that were not medically necessary or not provided. The defendants and their co-conspirators also allegedly falsified patient documentation to support the fraudulent billing. From December 2008 through February 2014, Medicare paid Professional Home Health more than $6.2 million for these fraudulent home health care claims.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two other individuals have already pleaded guilty for their roles in the scheme. Annarella Garcia, an owner of Professional Home Health, pleaded guilty to one count of conspiracy to commit health care fraud, and on Aug. 26, 2014, she was sentenced to serve 70 months in prison and ordered to pay $6,257,142 in restitution. Annilet Dominguez, an administrator of Professional Home Health, pleaded guilty to one count of conspiracy to commit health care fraud and three counts of false statements related to health care matters. On Sept. 29, 2014, she was sentenced to serve 68 months in prison and ordered to pay $6,257,149 in restitution.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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Six Defendants Charged for $6 Million Miami Home Health Care Fraud SchemeRead the Press Release
Six South Florida residents have been indicted for their alleged participation in a $6.2 million Medicare fraud scheme involving defunct home health care company Professional Medical Home Health LLC (Professional Home Health).
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
On Sept. 25, 2014, a federal grand jury in Miami returned a 14-count indictment charging Ernesto Fernandez, 48, Dennis Hernandez, 32, Jose Alvarez, 47, and Joel San Pedro, 44, all of Miami; Alina Hernandez, 38, of West Palm Beach; and Juan Valdes, 37, of Palm Springs, for their roles in defrauding Medicare and soliciting and receiving health care kickbacks.
According to allegations in the indictment, the defendants recruited patients for Professional Home Health, a Miami home health care agency. As part of the scheme, the defendants solicited and received kickbacks from the owners and operators of Professional Home Health in exchange for providing beneficiaries for home health services that were not medically necessary or not provided. The defendants and their co-conspirators also allegedly falsified patient documentation to support the fraudulent billing. From December 2008 through February 2014, Medicare paid Professional Home Health more than $6.2 million for these fraudulent home health care claims.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two other individuals have already pleaded guilty for their roles in the scheme. Annarella Garcia, an owner of Professional Home Health, pleaded guilty to one count of conspiracy to commit health care fraud, and on Aug. 26, 2014, she was sentenced to serve 70 months in prison and ordered to pay $6,257,142 in restitution. Annilet Dominguez, an administrator of Professional Home Health, pleaded guilty to one count of conspiracy to commit health care fraud and three counts of false statements related to health care matters. On Sept. 29, 2014, she was sentenced to serve 68 months in prison and ordered to pay $6,257,149 in restitution.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Seven Indicted for Fraudulently Requesting Travel Reimbursement Expenses from the Department of Veterans AffairsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veteran Affairs, Office of Inspector General (VA-OIG), announce the indictment of seven defendants for making false statements in connection with fraudulent requests for travel reimbursements, in violation of Title 18, United States Code, Section 1001(a)(2). Dennis L. Bradley, 52, of South Bay, Lee Dixon, 55, of Boca Raton, Terrence M. Fanning, 53, of Delray Beach, Harry J. Kapton, 70, of Greenacres, Kenneth Leggett, 55, of Palm Beach Gardens, Robert Moorer, Jr., 58, of West Palm Beach, and Randi D. Seltman, 45, of Riviera Beach, were arrested. All have been released on bond pending further court proceedings.
According to affidavits filed earlier this month in support of criminal complaints, the defendants submitted travel vouchers falsely claiming entitlement to reimbursement for expenses much greater than they incurred. Combined, the defendants received approximately $148,813 in VA travel reimbursement funds.
If convicted, each defendant faces a statutory maximum penalty of up to five years in prison, to be followed by up to a three-year term of supervised release, in addition to payment of restitution.
Mr. Ferrer commended the investigative efforts of the VA-OIG. The case is being prosecuted by Assistant U.S. Attorney Brandy Galler.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
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.
- San Benito Resident Gets More Than 11 Years for Moving Cocaine
Real Estate Investors Plead Guilty in Widening Multimillion Dollar Loan-Fraud and Kickback SchemeRead the Press Release
SAN DIEGO - Grant McCollough, a real estate investor and owner of Tycoon Investments, and his wife, Marisa McCollough, pleaded guilty today to participating in a conspiracy to defraud mortgage lenders and impede the Internal Revenue Service.
As part of their conspiracy, the McColloughs recruited investors to act as “straw” buyers and arranged for false information to be submitted to mortgage lenders in support of the buyers’ loan applications. The McColloughs also fraudulently inflated the value of the homes and disguised the source of the down payments, in order to skim funds from the fraudulent transfer of property among their co-conspirators. They also admitted hiding their skimmed profits from the IRS.
Over a dozen of the fraudulent mortgages were arranged by coconspirator Donald Totten, a mortgage loan officer and broker operating from Rancho Santa Fe. Totten pleaded guilty in February 2014 to mortgage fraud, bankruptcy fraud, and filing a false tax return that failed to report more than $3 million in taxable income. Totten operated the businesses “Money World” and “Integrated Home Loans,” and specialized in brokering a particularly toxic stated-income, stated-asset “negative amortization” loan product, which allowed borrowers to make monthly payments less than the interest charged over the same period and without paying down the principal balance, so that the monthly payments were low but the outstanding balance of the loan increased over time. As part of his plea agreement, Totten admitted that defaults in the mortgages he brokered caused losses of between $2.5 million and $20 million. Totten, who is in custody, will be sentenced on October 20, 2014, by U.S. District Judge Michael M. Anello.
McCollough’s business partner at Tycoon Investments, Jason Kent, was also charged in the scheme. On July 21, 2014, Kent pleaded guilty to wire fraud, and admitted assisting Totten, Grant McCollough, Marisa McCollough, and others with carrying out this mortgage and kickback scheme. Kent’s case was transferred to the District of Hawaii and he is scheduled to be sentenced on February 26, 2015, before U.S. District Judge Leslie E. Kobayashi.
As admitted as part of the guilty pleas, the McColloughs arranged for loan applications to include made-up employment (including false employment at Tycoon Investments) and represented that borrowers earned substantial salaries from the company when, in reality, Tycoon Investments had no employees. In addition, with Totten’s help, the McColloughs and Kent would falsely represent that they jointly owned a bank account at Wells Fargo Bank, to support false claims by Marisa McCollough and Kent that they held significant assets. In reality, the funds were Totten’s. During the conspiracy, Marisa McCollough worked at Wells Fargo Bank, a position she used to help falsify records about the loan applicants’ account balances.
With Totten’s help, Marisa McCollough bought a $3.4 million oceanfront home in Lahaina, Hawaii. In order to qualify, she falsely claimed that she earned $90,000 per month, had close to $700,000 in savings, and made a down payment of $630,000. This was all false, and in fact Ms. McCollough did not contribute any of her own funds to the purchase. The McColloughs lived in the home for several years, but never made the mortgage payments they owed.
The McColloughs’ guilty pleas were taken before U.S. Magistrate Judge Ruben B. Brooks. They are scheduled to be sentenced by Judge Anello on January 5, 2015 at 9 a.m.
In addition to these defendants, Totten’s employee and loan processor, Shellie Lockard, also pleaded guilty to participating in a conspiracy to defraud mortgage lenders. According to her plea agreement, Lockard processed fraudulent loans for Totten, and earned commissions of approximately $1,000 per loan. She was sentenced on September 15, 2014, by Judge Anello, and ordered to serve six months in home detention.
According to court documents, many of the fraudulently-obtained mortgage loans subsequently defaulted, causing mortgage lenders and secondary purchasers, including Fannie Mae and Freddie Mac, to suffer significant losses as a result of the conspiracy. Fannie Mae and Freddie Mac are government-sponsored enterprises with a mission to provide liquidity, stability, and affordability to the U.S. housing market. Both enterprises assist mortgage lenders by purchasing the loans they originate, enabling the lenders to replenish their funds to finance additional mortgage loans for American homebuyers. The statements borrowers make in loan applications are an important factor in Fannie Mae’s and Freddie Mac’s determination whether to purchase a mortgage loan.
“This kind of fraud has a ripple effect through our nation’s economy,” said U.S. Attorney Laura Duffy. “We will continue to investigate and prosecute those who defraud the mortgage market.”
FBI Acting Special Agent in Charge, Robert Howe, commented, “FBI investigations such as this expose the vulnerabilities in the mortgage industry and how criminals motivated by greed will stop at nothing to support their lavish lifestyles. This kind of dishonesty is profitable only in the short run, and ultimately leads to arrest and prosecution.”
IRS Criminal Investigation’s Special Agent in Charge Erick Martinez stated: “Today Grant McCollough and Marisa McCollough are being held accountable for their role in defrauding mortgage lenders and impeding the IRS. IRS Criminal Investigation is working hard to detect income from illegal sources intentionally hidden from the IRS and ensure that all forms of income are taxed.”
DEFENDANTS Case Number: 14CR2787-MMA Grant McCollough Age: 38 Kearney, Nebraska Marisa McCollough Age: 36 Kearney, Nebraska CHARGESConspiracy to commit wire fraud and defraud the United States, in violation of 18 U.S.C. § 371.
Maximum Penalties: Five years in prison, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, restitution.
DEFENDANT Case Number: 13CR2941-MMA Donald Totten Age: 58 Oakland, California CHARGESConspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349.
Maximum Penalties: 30 years’ imprisonment, $1,000,000 fine or twice the gain or loss resulting from the offense, $100 special assessment, restitution.
Filing a false tax return, in violation of 26 U.S.C. § 7206(1)
Maximum Penalties: 3 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
Bankruptcy fraud, in violation of 18 U.S.C. § 152
Maximum Penalties: 5 years’ imprisonment, $250,000 fine or twice the gain or loss resulting from the offense, $100 special assessment, restitution.
DEFENDANT Case Number: 14CR1667-MMA Jason Kent Age: 37 Lahaina, HI CHARGESWire fraud affecting a financial institution, in violation of 18 U.S.C. § 1343.
Maximum Penalties: 30 years’ imprisonment, $1,000,000 fine or twice the gain or loss resulting from the offense, $100 special assessment, restitution.
DEFENDANT Case Number: 13CR2772-MMA Shellie Lockard Age: 44 Ventura, CA CHARGESConspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349
INVESTIGATING AGENCIES
Maximum Penalties: 30 years’ imprisonment, $1,000,000 fine or twice the gain or loss resulting from the offense, $100 special assessment, restitution.Federal Bureau of Investigation
Federal Housing Finance Agency – Office of Inspector General
Internal Revenue Service, Criminal InvestigationPhiladelphia Business Owner Found Guilty of Hiring Hitman, Related CrimesRead the Press Release
CAMDEN, N.J. – A federal jury in Camden convicted a Philadelphia business owner today for arranging a murder for hire that led to a shooting in Atlantic City, New Jersey, U.S. Attorney Paul J. Fishman announced.
Ronald Galati, 63, was found guilty of all four counts in the indictment against him: conspiracy to commit murder for hire; conspiracy to possess and use a firearm during a crime of violence; murder for hire; and aiding and abetting the possession and use of a firearm during a crime of violence.
Galati was convicted following a two-week trial before U.S. District Judge Joseph H. Rodriguez in Camden federal court. The jury deliberated for five hours before returning its verdict.
“Ronald Galati hired two men to kill his daughter’s boyfriend outside his home,” said U.S. Attorney Fishman. “This reprehensible conduct has no place in in civilized society. We are grateful to the jury for bringing Galati to justice.”
According to documents in this case and the evidence at trial: Beginning sometime before June 2013, Galati began saying that he was going to kill his friend, Andrew Tuono. Galati told witnesses he would “kill him myself, I will strangle him, I will poke his eyes out” and “I am going to stab him right in the forehead with this thing,” referring to a pointed object. In June 2013, Galati, members of Galati’s family and associates had dinner with Tuono at a restaurant in Northfield, New Jersey. During dinner, Galati took Tuono into the kitchen and threatened to kill him.
Galati owned and operated American Collision & Automotive Center in Philadelphia, where Jerome Johnson, 45, also of Philadelphia, sometimes worked for him. Galati and Johnson approached two associates, Ronald Walker, 49, of Philadelphia, and Alvin Matthews, 47, and enlisted them to kill Tuono in a manner that would not implicate Galati. Galati promised to pay Walker $20,000 to shoot and kill Tuono.
Galati provided Johnson with several addresses associated with the intended victim. Johnson and Walker went to Tuono’s in Philadelphia.
Johnson gave Matthews a Colt .25 caliber semi-automatic handgun he had obtained near 60th Street in Philadelphia. On Nov. 30, 2013, Johnson telephoned Walker and Matthews and arranged to meet them. Galati called Johnson and told him that Tuono was in New Jersey.
Thereafter, Johnson drove Walker and Matthews to the area where Tuono lived in Atlantic City. During the drive, Johnson told Walker and Matthews that if there was a woman with Tuono, she was not to be harmed. While in Johnson’s vehicle, Matthews gave Walker the gun Johnson had given Matthews the day before. Johnson then dropped Walker and Matthews off around the corner from Tuono’s home.
Walker and Matthews then stalked Tuono from an alley adjacent to the residence. When Tuono and a woman came out of the house, Walker and Matthews approached them and got Tuono’s attention. Walker shot Tuono multiple times. The victim was transported by ambulance from the scene of the shooting to Atlantic City Medical Center for emergency surgery, where he spent six days.
Walker and Matthews were arrested as they fled from the scene.
The two conspiracy counts and the murder for hire count each carry a maximum potential penalty of 20 years in prison. The aiding and abetting firearms count carries a mandatory minimum consecutive prison sentence of 10 years and a maximum of life in prison. Each count also carries a maximum $250,000 fine. A date for sentencing has not yet been set.
Walker, Matthews and Johnson have each pleaded guilty to related offenses and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Aaron T. Ford; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge George P. Belsky; and detectives of the Atlantic City Police Department, under the direction of Chief Henry White, for the investigation the case. He also thanked the Philadelphia District Attorney’s Office, under the direction of District Attorney R. Seth Williams, detectives of the Philadelphia Police Department, under the direction of Commissioner Charles Ramsey; and troopers of the Pennsylvania State Police, under the direction of Commissioner Frank Noonan, for their assistance.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Anthony Voci Esq., PhiladelphiaOmar Gonzalez Indicted on Federal and Local Charges for Entering White House Grounds with A WeaponCharges Follow Sept. 19, 2014 IncidentRead the Press Release
WASHINGTON – Omar Gonzalez, 42, formerly of Copperas Cove, Texas, was indicted by a federal grand jury today on charges stemming from an incident on Sept. 19, 2014, in which he climbed a fence and ran toward and into the White House while armed with a folding knife.
The indictment was announced by U.S. Attorney Ronald C. Machen Jr. and Kathy A. Michalko, Special Agent in Charge of the Washington Field Office, U.S. Secret Service.
The grand jury in the District of Columbia returned a three-count indictment against Gonzalez, who has been in custody since his arrest on Sept. 19, 2014. Following his arrest, Gonzalez was charged with unlawfully entering a restricted building or grounds, while carrying a deadly or dangerous weapon. The grand jury today indicted him for that federal offense, as well as two additional charges alleging violations of District of Columbia law: carrying a dangerous weapon outside a home or place of business, and unlawful possession of ammunition.
The federal charge carries a statutory maximum of 10 years in prison. The D.C. charge of carrying a dangerous weapon carries a statutory maximum of five years in prison, and the charge of unlawful possession of ammunition carries a potential maximum of a year of incarceration.
According to the government’s evidence, on Sept. 19, 2014, at about 7:19 p.m., Gonzalez climbed over the north fence of the White House. An officer with the U.S. Secret Service ran toward him and yelled at him to stop. Gonzalez, however, ran toward the White House. Moments later, he went through the north doors and entered the building. He was apprehended inside the White House. Gonzalez was searched and a black folding knife was discovered in his right front pants pocket. The knife had a serrated blade that was three and one-half inches long.
After Gonzalez’s arrest, he gave oral consent to search his vehicle, which was located on Constitution Avenue NW. The vehicle contained hundreds of rounds of ammunition, both in boxes and in magazines, two hatchets, and a machete.
Gonzalez is scheduled to appear on Oct. 1, 2014, before Magistrate Judge Deborah A. Robinson in the U.S. District Court for the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the U.S. Secret Service. It is being prosecuted by Assistant U.S. Attorneys David Mudd and Thomas A. Gillice, of the National Security Section of the U.S. Attorney’s Office for the District of Columbia.
14-221Ohio Landlord Agrees to End Discriminatory Housing PracticesRead the Press Release
The Justice Department today announced that a North Ridgeville, Ohio, landlord, Emil Bagi, and his management company, Ridgeway Management Ltd., have entered into a consent decree and have agreed pay $30,000 to resolve claims that they discriminated on the basis of race at the Ridge Plaza Apartments, a 36 unit apartment complex they own and operate in North Ridgeville, Ohio. The settlement must still be approved by the federal district court in the Northern District of Ohio.
According to documents filed along with the settlement agreement the department alleges that the defendants discriminated against African Americans by quoting higher rental and application fee rates to them than to white apartment seekers, and by refusing to show African Americans vacant units when they visited while showing such units to white apartment seekers who visited the complex. The complaint is based on evidence obtained by the department’s fair housing testing program. The department sent African-American and white testers posing as prospective renters to the complex and the African-American testers were quoted higher rents and application fees than the white testers. African-American testers were also told that they could not view a unit at that time, while similarly situated white testers were shown units. The department also alleges that since acquiring ownership of the property in 1995, the defendants have never leased a unit to an African-American tenant.
Under the terms of the settlement, the defendant wills establish a settlement fund of $20,000 to compensate persons harmed by the alleged discrimination and a $10,000 civil penalty to the United States. In addition, the defendants will establish non-discriminatory rental policies, obtain fair housing training, and submit to reporting and monitoring requirements for the three year term of the settlement.
“It is simply unacceptable for a landlord to make renting an apartment more difficult and more expensive because of a person’s race,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.
“The Department of Justice is committed to enforcing the Fair Housing Act using every tool at our disposal,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio. “This landlord got caught by fair housing testers trying to charge higher rent to minority applicants. He failed the test miserably – and now he has to pay the price. Other landlords should keep that in mind when they are showing properties.”
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination at Ridge Plaza should contact the Justice Department at 1-800-896-7743 or by email at [email protected]. Persons who believe they have experienced housing discrimination elsewhere may contact the Justice Department or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Officer of Middlesex, N.J. Union Admits Accepting Bribes to Circumvent Collective Bargaining AgreementRead the Press Release
NEWARK, N.J. – A union officer for Local 594 of the Laborers International Union of North America (LIUNA) today admitting accepting $8,000 in bribes to allow a demolition contractor to use non-union workers on a New Jersey building project in violation of their collective bargaining agreement (CBA), U.S. Attorney Paul J. Fishman announced.
John Adams, 58, of Bridgewater, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of accepting between $5,000 and $10,000 in bribes from an employer working on the New York Times building in Edison, New Jersey.
According to the documents filed in this case and statements made in court:Adams is the business manager for Laborers Local 594 in Middlesex County, New Jersey. When the New York Times building in Edison was renovated in 2009, DAMICO Inc. was hired to do interior demolition work. DAMICO was obligated to use all union workers pursuant to a CBA with Local 594. A collective agreement regulates employee duties, employer responsibilities, and health care and pension benefits. Adams was responsible for making sure DAMICO followed the CBA.
During the 10-month period, ADAMS was paid on four occasions approximately $8,000 in total to permit DAMICO to use up to 18 non-union workers on a weekly basis. Consequently, DAMICO cost Local 594 union dues and benefit plan contributions.
As the project was concluding, LIUNA officials learned of the CBA violations by DAMICO and filed an arbitration claim against the company. In May 2013, an arbitrator ruled in favor of the union and charged DAMICO’s owners $500,000 in restitution for lost wages and benefit plan remittances. Adams is responsible, along with the DAMICO owners, for repaying $204,000 in losses to the union’s benefit plan.
The bribery charge to which Adams pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 5, 2015.U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea.
The government is represented by V. Grady O’Malley, Senior Litigation Counsel of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
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Defense counsel: William J. Hughes Esq., Atlantic City, New Jersey
Adams, John Information
North Ridgeville Landlord Agrees to End Discriminatory Housing PracticesRead the Press Release
The Justice Department today announced that a North Ridgeville, Ohio, landlord, Emil Bagi, and his management company, Ridgeway Management Ltd., have entered into a consent decree and have agreed pay $30,000 to resolve claims that they discriminated on the basis of race at the Ridge Plaza Apartments, a 36 unit apartment complex they own and operate in North Ridgeville, Ohio. The settlement must still be approved by the federal district court in the Northern District of Ohio.
According to documents filed along with the settlement agreement the department alleges that the defendants discriminated against African Americans by quoting higher rental and application fee rates to them than to white apartment seekers, and by refusing to show African Americans vacant units when they visited while showing such units to white apartment seekers who visited the complex. The complaint is based on evidence obtained by the department’s fair housing testing program. The department sent African-American and white testers posing as prospective renters to the complex and the African-American testers were quoted higher rents and application fees than the white testers. African-American testers were also told that they could not view a unit at that time, while similarly situated white testers were shown units. The department also alleges that since acquiring ownership of the property in 1995, the defendants have never leased a unit to an African-American tenant.
Under the terms of the settlement, the defendant wills establish a settlement fund of $20,000 to compensate persons harmed by the alleged discrimination and a $10,000 civil penalty to the United States. In addition, the defendants will establish non-discriminatory rental policies, obtain fair housing training, and submit to reporting and monitoring requirements for the three year term of the settlement.
“It is simply unacceptable for a landlord to make renting an apartment more difficult and more expensive because of a person’s race,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.
“The Department of Justice is committed to enforcing the Fair Housing Act using every tool at our disposal,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio. “This landlord got caught by fair housing testers trying to charge higher rent to minority applicants. He failed the test miserably – and now he has to pay the price. Other landlords should keep that in mind when they are showing properties.”
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination at Ridge Plaza should contact the Justice Department at 1-800-896-7743 or by email at [email protected]. Persons who believe they have experienced housing discrimination elsewhere may contact the Justice Department or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Nampa Man Sentenced to 63 Months in Prison for Drug Charge and Obstruction of JusticeRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Timothy Alan Butterbaugh, 46, of Nampa, Idaho, was sentenced to 63 months in prison followed by four years of supervised release for distribution of methamphetamine. Chief U.S. District Judge B. Lynn Winmill sentenced Butterbaugh at the federal courthouse in Boise. Butterbaugh pleaded guilty to distribution of methamphetamine on November 7, 2013. Butterbaugh later admitted that he obstructed justice by conspiring with others in an attempt to intimidate or retaliate against the informant that participated in the drug transaction.
According to the plea agreement and information presented in court, Butterbaugh admitted to selling methamphetamine on June 27, 2013, to a person who was assisting law enforcement as a confidential informant. After he was arrested, Butterbaugh informed others of the identity of the informant and conspired with others to intimidate, or retaliate against, the informant. The informant was never actually harmed. During
During the court hearing today, Judge Winmill found that Butterbaugh’s conduct amounted to an obstruction of justice, which resulted in a higher advisory sentencing guideline range. Judge Winmill also ordered Butterbaugh to have no contact with gang members, including outlaw motorcycle gangs, upon release from prison.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.