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23 September 2014
Federal Judge Sentences Tax Preparer to Seven Months in Prison for Filing False ReturnsRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a former Birmingham tax-return preparer to seven months in prison and ordered her to repay $70,045 to the IRS for filing false returns, announced U.S. Attorney Joyce White Vance and IRS, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge Sharon Lovelace Blackburn sentenced JANICE E. FOY on one count of subscribing to a false federal tax return and one count of aiding in the preparation of a false return. Foy, 52, of Snellville, Ga., pleaded guilty to the charges in May. Foy owned and operated the now-defunct tax preparation business, VIP Tax Services, on Bankhead Highway in Birmingham. Blackburn ordered Foy to serve a year of supervised release following her prison sentence. Among special conditions of that release, the judge ordered Foy to pay restitution to the Internal Revenue Service and to refrain from assisting or aiding others in the preparation of taxes.
"An integral part of the agency's mission involves detecting and stopping fraudulent refund claims," Hyman-Pillot said. "IRS Criminal Investigation identified and investigated the filing of false tax returns submitted by Janice Foy, and as a result Ms. Foy will serve time in jail for her actions. Special Agents work year-round to investigate and root out dishonest return preparers like Ms. Foy," she said.According to court records, Foy orchestrated a tax refund scheme through VIP Tax Services. During the time Foy professionally prepared tax returns, from 2008 to 2010, she filed false tax returns on behalf of taxpayer clients who retained VIP's services, often including numerous false items on client's returns in order to maximize their refunds.
Foy pleaded guilty to one count of subscribing to a false U.S. tax return for claiming a First-time Homebuyer Credit of $7,500 on her own 2008 tax return, knowing she was not entitled to that deduction. She also pleaded guilty to one count of preparing a false federal tax return while operating a tax preparation service by adding false education credits, child tax credit and the First-time Homebuyer Credit to a client's return.
In her plea agreement, Foy also admitted to causing 26 false U.S. tax returns for 20 of her clients to be filed with the IRS for the tax years 2007-2009. Those returns contained fictitious dependents, inflated deductions, false income and expenses, and false education credits, dependent care expenses, and First-Time Homebuyer Credits or Residential Energy credits. Some of the false deductions and credits also enabled the defendant's clients to falsely claim the Earned Income Credit and the Additional Child Tax Credit. The total loss to the government was $90,798.
In a related case, KRISTIE SYKES, 42, of Birmingham, who worked at VIP, pleaded guilty on Monday to two counts of a five-count indictment charging her with aiding in the preparation of false federal tax returns.
IRS-CI investigated the case, which Assistant U.S. Attorney Chinelo Dike-Minor is prosecuting.
Federal Court Bars Pittsburgh Man from Preparing Federal Tax ReturnsRead the Press Release
A federal court in Pittsburgh, Pennsylvania, permanently barred Larry E. Snow from preparing federal tax returns for others, the Justice Department announced today. Snow allegedly claimed false tax deductions on customers’ tax returns.
Senior U.S. District Judge Maurice B. Cohill for the Western District of Pennsylvania entered the injunction against Snow on Sept. 23 after Snow failed to contest the government’s claims. In 2012, Snow pleaded guilty to one count of aiding and assisting in the preparation and presentation of false and fraudulent income tax returns and was later sentenced to six months of home detention and three years probation. According to the complaint, Snow repeatedly prepared returns with false deductions for medical expenses, personal property taxes, charitable contributions and unreimbursed employee expenses. He allegedly maintained a list he referred to as “IRS Gimmies,” which were items he instructed his employees to report on each return prepared in his accounting practice, regardless of whether the customer was entitled to them.
The IRS estimated that Snow’s fraudulent return preparation for one year alone cost the U.S. Treasury more than $1.3 million in lost tax revenue. The court also ordered Snow to notify his former customers of the injunction entered against him.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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United States v. Larry E. Snow
Default Judgment Against Defendant Larry E. SnowFederal Court Bars Pittsburgh Man from Preparing Federal Tax ReturnsRead the Press Release
WASHINGTON – A federal court in Pittsburgh, Pennsylvania, permanently barred Larry E. Snow from preparing federal tax returns for others, the Justice Department announced today. Snow allegedly claimed false tax deductions on customers’ tax returns.
Senior U.S. District Judge Maurice B. Cohill for the Western District of Pennsylvania entered the injunction against Snow on Sept. 23 after Snow failed to contest the government’s claims. In 2012, Snow pleaded guilty to one count of aiding and assisting in the preparation and presentation of false and fraudulent income tax returns and was later sentenced to six months of home detention and three years probation. According to the complaint, Snow repeatedly prepared returns with false deductions for medical expenses, personal property taxes, charitable contributions and unreimbursed employee expenses. He allegedly maintained a list he referred to as “IRS Gimmies,” which were items he instructed his employees to report on each return prepared in his accounting practice, regardless of whether the customer was entitled to them.
The IRS estimated that Snow’s fraudulent return preparation for one year alone cost the U.S. Treasury more than $1.3 million in lost tax revenue. The court also ordered Snow to notify his former customers of the injunction entered against him.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Eleventh Circuit Affirms Convictions and Sentence of Former “Cast Crete” PresidentRead the Press Release
Tampa, Florida – The United States Court of Appeals for the Eleventh Circuit yesterday affirmed the convictions of John Stanton, III, on charges that he had obstructed the administration of the Internal Revenue Laws and had failed to file tax returns for himself and for his companies, Florida Engineered Construction Products (FECP) and Denouement Strategies. The Court also upheld Stanton’s ten-year sentence for those convictions.
Stanton was the president of FECP, which operated under the name “Cast Crete” and which produced and sold tens of millions of dollars of precast concrete products annually. Despite the fact that FECP reaped handsome annual revenues and paid out tens of millions of dollars to Stanton and others, Stanton failed to file tax returns for FECP for several years and filed returns containing inaccurate information for several other years. He also failed to file tax returns for himself for 2005 and 2007, despite having received millions from FECP during that period. When the Internal Revenue Service (IRS) attempted to investigate FECP’s tax obligations, Stanton provided an investigator with false and misleading documents and information. The District Court found that, as a result of Stanton’s crimes, the IRS had lost more than $50 million in tax revenues—more than $100 million including interest and penalties.
On appeal, Stanton challenged the sufficiency of the evidence at trial, the constitutionality of the statute prohibiting his attempt to obstruct the administration of the Internal Revenue Laws, numerous District Court rulings, and various aspects of his ten-year sentence. The Eleventh Circuit rejected each of these arguments, “conclud[ing] that all of the issues in this appeal lack merit.”
Stanton is currently serving a sentence of ten years’ imprisonment.
This case was investigated by the Internal Revenue Service - Criminal Investigations. It was prosecuted in the District Court by Assistant United States Attorney Matthew Mueller and former Assistant United States Attorney Robert Monk. The appeal was handled by Assistant United States Attorneys Linda Julin McNamara and Todd B. Grandy.
El Paso, Texas Man Sentenced to Forty-Six Months for Unlawful Possession of Stolen FirearmsRead the Press Release
ALBUQUERQUE – Emanuel Medina, 24, of El Paso, Texas, was sentenced today in federal court in Las Cruces, N.M., to 46 months in federal prison followed by two years of supervised release for unlawfully possessing stolen firearms.
Medina and co-defendant Pete Richard Ferraro, 23, of Chaparral, N.M., were arrested on Oct. 25, 2013, on a criminal complaint alleging that he unlawfully possessed firearms between Oct. 11, 2013 and Oct. 23, 2013, in Doña Ana County, N.M. According to the complaint, on Oct. 22, 2013, an officer of the El Paso Police Department reported that a rifle and a shotgun were missing from his unmarked police vehicle. The results of a latent prints examination revealed that Ferraro left his fingerprints on the police vehicle. During the course of the investigation, Medina was interviewed and implicated himself in the theft of the firearms. The firearms were recovered in two Chaparral residences.
On May 27, 2014, Medina pled guilty to a felony information charging him with possession of stolen firearms. In his plea agreement, Medina admitted that Ferraro and he broke into the officer’s vehicle, stole the firearms and transported the firearms from Texas to New Mexico.
Ferraro entered a guilty plea to possession of stolen firearms on July 23, 2014. Ferraro has been in federal custody since his arrest and remains detained pending sentencing, which has yet to be scheduled. At sentencing, he faces a maximum statutory penalty of ten years in prison.
This case was brought as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.This case was investigated by the El Paso Group III Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the El Paso Police Department, and is being prosecuted by Assistant U.S. Attorney Randy Castellano of the U.S. Attorney’s Las Cruces Branch Office.
El Departamento de Justicia Resuelve un Caso de Discriminación en el Empleo Relacionado a Inmigración contra una AerolíneaRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que llegó a un acuerdo con United Continental Holdings, Inc., por medio del cual se resuelve una acusaciόn de que algunas divisiones de la compañía previamente operando como Continental Airlines discriminaron contra individuos por su estatus de ciudadanía en violación de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del departamento se inició por medio de una llamada telefónica que recibió la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a la Inmigración (OSC) através de su línea directa. Durante la investigación, el departamento descubrió que la compañía solía requerir a sus empleados residentes permanentes legales, y no a los empleados estadounidenses, que llenaran Formularios I-9 adicionales y proporcionaran comprobantes adicionales de sus autorizaciones de empleo después de la contratación aunque esta práctica está prohibida por ley. La provisiόn antidiscriminatoria de la INA prohíbe que los empleadores impongan cargas documentales adicionales a los trabajadores con autorizaciόn de trabajo durante el proceso de verificación de elegibilidad de empleo basado en el estatus de ciudadanía del individuo.
“La provisiόn antidiscriminatoria de la INA protege a los individuos de reverificaciόn de empleo innecesaria y no autorizada por motivos de su ciudadanía o estatus migratorio,” dijo Molly Moran, Sub-Procuradora General Interina para la Divisiόn de Derechos Civiles. “Reconocemos la disponibilidad de Continental para resolver los problemas descubiertos durante la investigación del departamento.”
Según el acuerdo, Continental le pagará $215,000 a los Estados Unidos, establecerá un fondo de $55,000 para compensar a los individuos que pudieron haber sufrido una perdida de salario debido a las práticas injustas de la compañía y participará en un programa de capacitación sobre la provisión antidiscriminatoria de la INA. La compañía también estará sujeta a un período de monitoreo de sus prácticas de reverificación por el departamento por un período de dos años.
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a la Inmigración es la oficina responsable por hacer cumplir con la provisión antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe discriminación por estatus de ciudadanía o del origen nacional durante la contrataciόn, el despido, el reclutamiento o la referencia por comisiόn, las prácticas injustas de documentación, represalias, e intimidación.
Para más información sobre las protecciones contra discriminación en el empleo según las leyes migratorias, llame a la línea directa de OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidad auditiva), llame a la línea directa de OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidad auditiva), o para registrarse para un seminario gratis ofrecido a través del internet visite www.justice.gov/crt/about/osc/webinars.php, envíe un correo electrónico al [email protected], o visite el sitio de Internet www.justice.gov/crt/about/osc.
Los solicitantes o empleados que consideren que fueron sujetos a (1) diferentes requisitos de verificación por su estatus de ciudadanía, estatus migratorio u origen nacional, o (2) discriminación por estatus de ciudadanía, estatus migratorio, u origen nacional con relación a la contratación, el despido y el reclutamiento o la referencia por comisión, deberán comunicarse a la línea dedicada a los trabajadores anteriormente citada para poderlos ayudar.
Eighth Defendant Convicted in Residential Mortgage Fraud SchemeRead the Press Release
Conspirators Used Other Individuals’ Identities, False Income and Credit Information to Induce Lenders to Provide Home Mortgage Loans
Greenbelt, Maryland – A jury convicted Annika Boas, age 37, of Mount Rainier, Maryland on September 19, 2014, for conspiracy, wire fraud and making a false statement on a loan application, arising from a residential mortgage fraud scheme.The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General - Office of Investigations; Acting Inspector General Michael P. Stephens of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Kathy Michalko of the United States Secret Service – Washington Field Office; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to the evidence presented at her four day trial, from March 2007 to November 2008, Boas conspired with real estate agent Edgar Tibakweitira, Ayoub Luziga, with whom Boas was in a relationship, and others, to fraudulently secure residential mortgage loans by making false statements during the loan application and approval process. The conspirators used stolen or false identity information, false documents – including W-2 forms, earnings and banks statements – and false credit information to induce lenders to provide mortgage loans to straw purchasers, such as Boas and others recruited by Luziga and Tibakweitira. As part of the scheme, Tibakweitira inflated the sales price of the property by creating false documents for repairs and renovations that were never made. After the settlement, the conspirators divided up the cash received for the purported repairs.
Specifically, witnesses testified that the conspirators obtained the identity information of a least four individuals, without those individuals’ knowledge or permission. According to witness testimony, Boas and other conspirators assumed the identities of these individuals and acted as straw buyers to obtain the loans used to purchase the properties. The evidence showed that Boas assumed the identity of one of the victims, using a North Carolina driver’s license with the victim’s name but Boas’ photo, to pose as the victim at the settlement for two properties.
As a result of the conspiracy, Boas caused between $400,000 and $1 million in losses to federally-insured financial institutions.
“The United States Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG) investigates allegations of waste, fraud and abuse in HUD sponsored programs such as our FHA program,” said Special Agent in Charge Cary A. Rubenstein of HUD-OIG’s Mid-Atlantic Region. “This group, including several mortgage industry professionals, perpetrated a sophisticated mortgage fraud scheme designed to enrich themselves at the expense of lenders and the FHA Insurance Fund. The efforts that brought us this verdict demonstrate that when law enforcement is made aware of schemes that place the public and the FHA Insurance program at risk, we will commit the necessary resources to make sure the fraudsters are brought to justice and are no longer in a position to engage in fraud.”
Boas faces a maximum penalty of 30 years in prison for the conspiracy, for each of two counts of wire fraud, and for each of two counts of making a false statement on a loan application. U.S. District Judge George Jerrod Hazel has scheduled sentencing for Boas on January 7, 2015 at 9:00 a.m.
Co-conspirators Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland and Ayoub Luziga, age 35, of Bowie, Maryland, have pleaded guilty to their roles in the scheme and are scheduled to be sentenced on November 3, 2014 at 10:00 a.m. and November 24, 2014, at 11:30 a.m., respectively.
Five other conspirators have also pleaded guilty to their roles in the scheme, including: Tibakweitira’s wife Flavia Makundi, age 42, of Severn; Mokorya Cosmas Wambura, age 41, of Takoma Park, Maryland; Raymond Abraham, age 47, of Silver Spring, Maryland; Cane Mwihava and Abdallah Suleiman Kitwara, both age 43, of Bowie. Wambura was sentenced to five years in prison and Makundi was sentenced to time served. Mwihava is scheduled to be sentenced on October 14, 2014 at 1:00 p.m., Abraham is scheduled to be sentenced on October 27, 2014 at 11:30 a.m., and Kitwara is scheduled to be sentenced on December 2, 2014 at 9:00 a.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein praised HUD-OIG, FHFA-OIG, Treasury OIG, U.S. Secret Service and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin DiGregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who prosecuted the case.
District Woman Sentenced to 10 Months in Prison for Embezzling over $193,000 from Charitable Organization-Used Money for Vacations, Personal Training, Other Personal Expenses-Read the Press Release
WASHINGTON – Maria Herrmann, 53, of Washington, D.C., was sentenced today to 10 months in prison for embezzling over $193,000 from a charitable organization from 2004 through 2008, announced U.S. Attorney Ronald C. Machen Jr. and Gary R. Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service.
Herrmann pled guilty in June 2014, in the U.S. District Court for the District of Columbia, to one count of wire fraud. She was sentenced by the Honorable James E. Boasberg. As part of her guilty plea, Herrmann agreed to forfeit the amount of her fraudulent proceeds, $193,770, and pay the same amount in restitution to the charitable foundation. Upon completion of her prison term, she will be placed on three years of supervised release.
As part of her guilty plea, Herrmann admitted that, between May 2004 and June 2008, she operated an on-line “e-store” with operations meant to raise funds for a non-profit charitable organization. To raise funds, the e-store auctioned various donated goods and services, as well as travel and vacation packages. Herrmann admitted to embezzling over $193,000 by wiring herself funds from the charity’s account, by using the e-store account to pay for personal purchases, and by other means.
Herrmann admitted using the charity’s funds to pay for vacations, personal training, pet care and pet supplies, and gourmet coffee, among other things. Finally, Herrmann admitted disguising her embezzlement from the charity by underreporting the e-store’s revenue.
In addition, at sentencing, the government submitted evidence regarding other misconduct Herrmann engaged in related to travel vouchers she sold through the “e-store.” As set forth in the government’s sentencing memorandum, Herrmann sold these travel vouchers below cost and then, often, deceived customers as to the quality of travel packages they purchased – for example, booking travelers in a lower quality hotel than promised. In June 2008, when her embezzlement was discovered, the operation became unsustainable. Thousands of would-be travel customers then found themselves stuck without airfare or hotels they were promised, including some on the eve of planned wedding and family travel. In the following weeks, the charitable foundation tried to make Herrmann’s customers whole, processing more than 4,000 claims and issuing refunds to over 2,000 customers. Those refunds, and other remedial costs, led to over $5.2 million in losses for the charity.
In announcing the sentence, U.S. Attorney Machen and Inspector in Charge Barksdale expressed appreciation for the work done by those who investigated the case from the U.S. Postal Inspection Service. They also commended the work of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialists Krishawn Graham and Donna Galindo, and Assistant U.S. Attorney Jonathan Hooks, who investigated and prosecuted the case.
14-213Distributor for Atlantic City "Dirty Block" Gang Admits Role in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - An Atlantic City, New Jersey, man admitted today to engaging in a conspiracy to distribute heroin with Mykal Derry, a leader of the “Dirty Block” criminal street gang that allegedly used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Aree Toulson, a/k/a “Beyah,” a/k/a “Beyeazz,” 25, of Atlantic City, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute, and to distribute and to possess with intent to distribute within 1,000 feet of public housing, 100 grams or more of heroin.
During the period of the conspiracy Toulson acted as a distributor on behalf of Mykal Derry, 34, of Atlantic City, helping Dirty Block to distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court in Atlantic City.
Toulson was arrested on March 26, 2013. According to Toulson’s statements in court, he and others travelled with Mykal Derry to a shooting range in Lakewood, New Jersey, on Oct. 18, 2012, where Toulson – a previously convicted felon – used, possessed, and discharged a firearm. According to filed documents, members of the group also participated in a violent altercation with rival drug traffickers at an Atlantic City casino in December 2012.
The drug conspiracy charge carries a minimum penalty of five years in prison, a maximum penalty of 80 years in prison, and maximum potential fine of up to $10 million. Sentencing is scheduled for January 16, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Police Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang Task Force, with the investigation.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Justin C. Danilewitz of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations against Derry are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
14-340Defense counsel: Paul George Esq., Philadelphia
Toulson, Aree Superseding Information
Dinesh D’Souza Sentenced in Manhattan Federal Court to Five Years of Probation for Campaign Finance FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that DINESH D’SOUZA was sentenced in Manhattan federal court to five years of probation, with eight months during the first year to be served in a community confinement center, after having pled guilty to violating the federal campaign election law by making illegal contributions to a United States Senate campaign in the names of others. D’SOUZA was sentenced today before U.S. District Judge Richard M. Berman.
Manhattan U.S. Attorney Preet Bharara stated: “Dinesh D’Souza attempted to illegally contribute over $10,000 to a Senate campaign, wilfully undermining the integrity of the campaign finance process. Like many others before him, of all political stripes, he has had to answer for this crime – here with a felony conviction.”
According to the Indictment, prior court filings, and statements made in court:
The Federal Election Campaign Act (the “Election Act”) is designed to limit financial influence in the election of candidates for federal office, including the Office of United States Senator, and provides for the public disclosure of the financing of federal election campaigns. In particular, the Election Act limits the amount and source of money that may be contributed to a federal candidate or that candidate’s authorized campaign committee. The Election Act specifically prohibits any person from making any contribution in the name of another, including reimbursing a third person, before or after that third person’s contribution, as inducement to make that contribution.
In 2012, the Election Act limited campaign contributions to $5,000 from any individual to any one candidate. In March 2012, D’SOUZA contributed $10,000 to the Senate campaign of Wendy Long on behalf of himself and his wife, agreeing in writing to attribute that contribution as $5,000 from his wife and $5,000 from him. In August 2012, D’SOUZA directed other individuals with whom he was associated, namely his assistant and a woman with whom D’SOUZA was romantically involved (the “Straw Donors”), to make contributions to Wendy Long’s campaign for the United States Senate (the “Long Campaign”) on behalf of themselves and their spouses that totaled $20,000 with the promise that he would reimburse them for the contributions. Later that same day or the next day, D’SOUZA, as promised, reimbursed the Straw Donors $10,000 each in cash for the contributions. When confronted by Ms. Long, D’SOUZA initially misled the candidate before admitting what he had done.
During the plea proceeding, D’SOUZA admitted before the Court that he caused two close associates to contribute $10,000 each to the Long Campaign with the understanding that he would reimburse them for their contributions and that he did reimburse them. D’SOUZA also admitted that he knew that what he was doing was wrong and something the law forbids.
In addition to the probationary term with confinement to a community center, Judge Berman sentenced D’SOUZA, 53, of San Diego, California, to a mandatory eight-hour day of community service every week of his five-year term of probation, weekly counseling sessions, and ordered him to pay a $30,000 fine, as well as a $100 special assessment.
Judge Berman previously denied D’SOUZA’s pretrial motion to dismiss the indictment for selective prosecution, ruling that there was “no evidence” to support D’SOUZA’s allegation. In sentencing D’SOUZA, Judge Berman referred to his prior ruling and remarked that “the defendant’s claim of selective prosecution, legally speaking, is ‘all hat, no cattle.’”
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorneys Carrie H. Cohen and Paul M. Krieger are in charge of the prosecution.
Department of Justice Will Not Challenge Proposed Chassis Use AgreementRead the Press Release
The Department of Justice today announced that it will not challenge a proposal by Flexi-Van Leasing Inc. and Direct ChassisLink Inc. to enter into a Chassis Use Agreement at the ports of Los Angeles and Long Beach, California. Flexi-Van and Direct ChassisLink are chassis leasing companies that also manage chassis pools operating at the ports of Los Angeles and Long Beach.
Based upon representations made by the applicants, as well as the department’s investigation, the department has no present intention to challenge the proposed agreement.
The department’s position was stated in a business review letter to counsel for Flexi-Van and Direct ChassisLink from Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.
According to representations made by Flexi-Van and Direct ChassisLink, the proposed agreement will result in the establishment of a “gray” chassis pool, which will extend benefits associated with individual pools by allowing the interchange of chassis across multiple pools throughout the port complex. The increased flexibility created by the interchangeability will enhance customer service, improve chassis productivity, and respond to the desire of the Long Beach and Los Angeles ports authorities to achieve better overall utilization of the region’s chassis fleets. The pools managed by Flexi-Van and Direct ChassisLink will continue to compete for business, and leasing terms and rates will continue to be set independently by each chassis provider. No information will be exchanged between Flexi-Van and Direct ChassisLink regarding customer pricing or other competitively sensitive terms. A third party provider will be used to facilitate operation of the gray chassis pool, audit chassis usage, and prevent the exchange of competitively sensitive information among the pools and chassis providers. After initial implementation, Flexi-Van and Direct ChassisLink intend that the agreement will become open to other pools at the ports of Los Angeles and Long Beach. Based on these representations, as well as the department’s investigation into the particular facts and circumstances relating to the competitive conditions of chassis supply at the port complex, the department has no present intention to challenge the proposed agreement.
Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided. The department reserves the right to challenge the proposed action under the antitrust laws if it produces anticompetitive effects.
A file containing the business review request and the department’s response may be examined in the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 1010, Washington, D.C. 20530. After a 30-day waiting period, the documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the Business Review Procedure.
Delaware Real Estate Developer Indicted for False Statements and Environmental ViolationsRead the Press Release
WILMINGTON, Del. - David C. Weiss, Acting United States Attorney for the District of Delaware, announced that an Indictment has been handed down by a federal grand jury charging Joseph L. Capano, age 73, of Middletown, Delaware, with three counts of making false statements to federal authorities (18 United States Code §1001(a)), and charging Capano and Riverbend Community LLC, a Delaware Corporation, with conspiracy to violate the Clean Water Act (18 United States Code §371). Defendant Capano faces up to 5 years of imprisonment for the false statement charges, 3 years of imprisonment on the Clean Water Act conspiracy, and a maximum of $250,000 fine for each offense. Defendant Riverbend faces a fine of up to $500,000 for the Clean Water Act conspiracy.
The Indictment alleges that Capano and Riverbend Community LLC conspired with others to discharge pollutants into wetlands subject to federal jurisdiction without a permit, during development of Riverbend at Old New Castle, a residential development located off of Delaware State Route 9 in New Castle, Delaware. The Indictment focuses on earthmoving, construction and excavation activities that Capano, on behalf of Riverbend Community LLC, directed employees and contractors to perform on the entrance road to the development, known as the causeway. Specifically, the defendants directed contractors and employees to expand the causeway into wetlands subject to federal jurisdiction. The defendants also directed contractors and employees to place a water main pipe through the causeway wetlands area, even after the Army Corps of Engineers instructed the defendants to stop performing construction in wetland areas.
In addition, the Indictment alleges that Capano knowingly and willfully made multiple false statements to the Army Corps of Engineers regarding when the water main pipe was installed in the causeway wetland areas, including executing a false affidavit, and that he withheld maaterial information from the Army Corps of Engineers.
“Construction activities in wetland areas have the potential to pollute our waters and damage our environment. Before developers perform work in wetland areas, they must first seek a permit from the Army Corps of Engineers. When interacting with formal regulators regarding activities in wetland areas, developers must accurately describe the nature of their activities. Those who fail to do so proceed at their peril.” said Acting United States Attorney David C. Weiss.
“Wetlands play a critical role in maintaining a healthy environment,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program in the Middle Atlantic States. “Once gone, it’s rare to see wetlands fully restored. EPA and its law enforcement partners are working to protect these invaluable natural assets as well as the communities around them.”This case is the result of an investigation conducted by the United States Environmental Protection Agency, Criminal Investigation Division Philadelphia Area Office. The prosecution is being handled by Assistant United States Attorney Jennifer K. Welsh, District of Delaware.
The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Daytona Beach Felon Sentenced to 15 Years for Possessing A FirearmRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell sentenced Antone T. Adams (25, Daytona Beach) yesterday to 15 years in federal prison for being a felon in possession of a firearm. Adams was indicted on October 9, 2013. He pleaded guilty on February 28, 2014.
According to court documents, on May 14, 2013, Adams sold a firearm and crack cocaine to an undercover agent. He sold the agent a Hi-Point pistol for $500 and 3.9 grams of crack cocaine for $340. Adams was a convicted felon at the time of the transaction and therefore was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney James D. Mandolfo.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in communities.
Darby Man Charged with Stealing from Veterans AffairsRead the Press Release
Isaac Bonner, 43, of Darby, Pennsylvania, was charged today by information with theft of public funds from the Department of Veterans Affairs (“VA”), announced United States Attorney Zane David Memeger. It is alleged that the defendant submitted fraudulent time sheets while he was assigned to the VA Medical Center in Philadelphia, and took compensation for nursing aide services that he had not rendered. The VA paid approximately $64,377 for such services that it never received.
If convicted, the defendant faces a maximum sentence of 10 years in prison, up to three years of supervised release, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the VA Office of Inspector General and is being prosecuted by Assistant United States Attorney M. Beth Leahy.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Contact: 401-528-5300Read the Press Release
U.S. MARSHALS CELEBRATE 225 YEARS OF SERVICE
PROVIDENCE, R.I. – Today the U.S. Marshals Service celebrates its 225th anniversary. As the nation’s oldest, most versatile federal law enforcement agency, it continues to build on its legacy of steadfast service and its unique position in the country’s federal justice system.
The U.S. Marshals Service’s legendary origins began in 1789 when the nation’s first president appointed the first U.S. Marshals.
“When President George Washington appointed the first 13 U.S. Marshals Sept. 24, 1789, his pen marked the creation of an agency that has since played a role in virtually every facet of the nation’s federal judiciary during times of crisis and times of peace,” said U.S. Marshals Service Director Stacia Hylton.
“From upholding the law in our untamed western territories to enforcing orders related to civil rights, the U.S. Marshals Service has been committed to answering the call of our great nation. As we mark 225 years of service, our men and women stand ready to continue that commitment,” Hylton said.
Today, the U.S. Marshals Service is a force of 5,400 deputies and civil servants who carry out operational and administrative duties as varied as apprehending fugitives, housing and transporting prisoners, protecting witnesses and federal judges, and managing and selling seized assets.Most notably, the Marshals Service is the federal government’s primary agency for conducting fugitive investigations. Working with its law enforcement partners at the federal, state, and local levels, the Marshals apprehend more federal fugitives than all other federal law enforcement agencies combined. The U.S. Marshals arrested more than 110,000 fugitives during fiscal year 2013.
“As United States Marshal for the District of Rhode Island, I am proud and privileged to be part of the rich history of the U.S. Marshals Service and to lead a force of committed women and men who serve as Deputy Marshals, administrative personnel and Court Security Officers,” said United States Marshal for the District of Rhode Island Jamie A. Hainsworth. He added, “I am excited to be part of this celebration of the 225th anniversary of the U.S. Marshals Service.”
Additionally, in Rhode Island, among the priorities of the U.S. Marshals Service is the physical protection of the Judiciary and federal court buildings; execution of federal warrants and to assist state and local law enforcement in the apprehension of wanted persons, the protection of witnesses and the administration of the witness protection program; the management of all assets seized by the federal government in the District of Rhode Island; working with members of the Violent Fugitive Task Force, partnering with the RI State Police and Providence Police; and the Sex Offender Registration and Enforcement Task Force, partnering with state and local law enforcement agencies throughout Rhode Island.
United States Marshal Hainsworth added, “As we mark this significant milestone of 225 years, we must also pause to recognize the first Federal law enforcement officer killed in the line of duty, U.S. Marshal Robert Forsyth in 1794, and more than 200 U.S. Marshals, Deputy U.S. Marshals and Special Deputy U.S. Marshals that have died in the line of duty since. In Rhode Island, we remember the loss and pay tribute to Special Deputy Court Security Officer Frank McKnight, who was killed in May of this year while on duty.”
Connecticut Man Pleads Guilty to Violating Federal Food, Drug, and Cosmetic ActRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WESLEY SKORSKI, 44, of Marlborough, pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to one count of introducing a misbranded drug into interstate commerce, in violation of the Federal Food, Drug, and Cosmetic Act.
According to court documents and statements made in court, SKORSKI owns and operates AviaMed, a Wethersfield-based business licensed by the State of Connecticut to engage in the wholesale distribution of medical devices and prescription drugs under the Federal Food, Drug, and Cosmetic Act. As part of the operation of AviaMed, SKORSKI received orders for prescription drugs from physicians and other health care providers.
In 2010 and 2011, SKORSKI entered into agreements with suppliers in the United Kingdom and Canada to receive prescription drugs, including oncology and dermatology drugs, which were commercially manufactured or produced outside the U.S. for distribution in foreign markets. After receiving the drugs from the foreign suppliers, SKORSKI repackaged them and distributed them to health care providers in the U.S. outside Connecticut.
The drugs SKORSKI received from foreign suppliers failed to contain the labeling required by the Food and Drug Administration, and were not approved for sale within the U.S. As a result, the drugs were considered misbranded under the Food, Drug, and Cosmetic Act.
SKORSKI is scheduled to be sentenced on December 16, 2014, at which time he faces a maximum term of imprisonment of one year and a fine of up to $1,000.
This investigation was conducted by special agents from the Food and Drug Administration, Office of Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.PUBLIC AFFAIRS CONTACT:
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Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Marquel Davon Foster, age 23, of Columbia, South Carolina was sentenced today in federal court after earlier pleading guilty to making a false statement in the acquisition of firearms from a federal firearms licensee, in violation of Title 18, United States Code, Sections 922(a)(6) and 924(a)(2). Senior United States District Judge Margaret B. Seymour sentenced Foster to 18 months imprisonment, followed by three (3) years of supervised release.
Evidence presented at the change of plea hearing established that in January 2013, during the execution of a drug search warrant in Bridgeton, NJ, officers recovered a Masterpiece Arms .45 caliber pistol with a high capacity magazine. A trace of the firearm revealed that it was purchased by Foster in Columbia, SC, on February 6, 2012. Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) determined that Foster had purchased a total of six (6) firearms, comprised of two (2) firearms on February 6, 2012, two (2) firearms on February 8, 2012, and two (2) additional firearms on March 7, 2012. When agents approached Foster, he claimed that the Masterpiece Arms .45 caliber pistol with a high capacity magazine had been stolen a year earlier, but that he had the other five (5) firearms in his possession. When agents asked to see those five (5) firearms, Foster admitted that he did not have them and that he had purchased them for an individual from New Jersey that he met at the gun store in exchange for money. Foster stated that the individual, who he knew only by a nickname, gave him money, and asked Foster to purchase the firearms for him since he was unable to legally purchase them because he was a felon. Foster admitted to making a false statement on the forms to purchase the firearms and to purchasing a total of six (6) firearms for this individual in approximately a one-month period. The six (6) firearms were a Hi-Point .380 caliber pistol, a Masterpiece Arms .45 caliber pistol, a European American Arms, Corp. .357 caliber revolver, a Ruger 9mm pistol, a Taurus .40 caliber pistol, and a Masterpiece Arms 9mm pistol. Only one (1) of those firearms has been recovered as of this date.
The case was investigated by ATF and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.Clay County Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Gregory Michael McCarty (45, Green Cove Springs) has pleaded guilty to receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a potential life term of supervision. A sentencing date has not yet been set.
According to court documents, an agent with the Florida Department of Law Enforcement (FDLE), in Jacksonville, began an undercover investigation to identify individuals who had access to and/or were trading images and videos of child pornography over the Internet. The agent determined that a host computer in the northeast Florida area was hosting images of child pornography using a peer-to-peer file sharing program. The agent was able to download several files from this computer. Further investigation traced the subscriber information to the residence of Gregory Michael McCarty in Clay County, Florida.
Law enforcement officers subsequently executed a federal search warrant at McCarty's residence and seized several computers and other electronic media. During an interview with agents, McCarty acknowledged that he had been receiving child pornography for about two years, stating that he had some on his external drives “for a long time.” He stated, “I fell into it and never got rid of it and never quit.” McCarty further stated, “I know it was wrong, I just didn’t get rid of it and didn’t, didn’t stop doing whatever I was doing.”
An analysis of McCarty’s computer media revealed that his laptop computer contained at least 18 images of child pornography, and at least 20 videos depicting minors engaged in sexually explicit conduct were found on an external hard disk drive that was connected to the laptop computer.
This case was investigated by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Church Rock Man Sentenced to 36 Months in Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – James Eddy, 44, an enrolled member of the Navajo Nation who resides in Church Rock, N.M., was sentenced today to 36 months in federal prison followed by three years of supervised release for his federal assault conviction.
Eddy was arrested on Jan. 7, 2014, on a criminal complaint alleging that he assaulted a 25-year-old Navajo man on the Navajo Indian Reservation in McKinley County, N.M., on Dec. 10, 2013. Eddy subsequently was indicted and charged with assault with a dangerous weapon and assault resulting in serious bodily injury.
On May 1, 2014, Eddy entered a guilty plea to both counts of the indictment and admitted assaulting the victim with a knife with the intention of inflicting serious bodily injury. Court filings reflect that, on Dec. 10, 2013, Eddy stabbed the victim in the chest with a 17-inch knife, causing the victim to sustain a life-threatening injury.
The case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Canton City Alderman SentencedRead the Press Release
Jackson, Miss - Calvin Louis Smith, 58, a former Canton City Alderman, was sentenced to 66 months in prison followed by two years of supervised release for bribery, announced U.S. Attorney Gregory K. Davis and Acting FBI Special Agent in Charge Johnnie Sharp. He was also ordered to pay a $1,000 fine.
In May, 2014, Smith was found guilty of accepting bribes in connection with a series of transactions made on behalf of the City of Canton, Mississippi.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jerry Rushing.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
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CEO of China Based Energy Company Pleads Guilty to Securities FraudRead the Press Release
The Chief Executive Officer of an energy firm headquartered in Tukwila, Washington, pleaded guilty today in U.S. District Court in Seattle to two counts of Securities Fraud. DICKSON LEE, 66, served as the CEO of L & L Energy Inc., until his arrest earlier this year. L&L, a formerly NASDAQ listed company, purported to be engaged in various aspects of the coal business including mining, washing, and wholesale distribution of coal, all within the People’s Republic of China. According to the plea agreement signed today, LEE admits he falsified reports to the U.S. Securities and Exchange Commission (SEC) regarding the existence of a Chief Financial Officer and, in a separate scheme, issued under false pretenses hundreds of thousands of shares of L&L stock to individuals controlled by LEE. LEE is scheduled for sentencing by U.S. District Judge Richard A. Jones on January 9, 2015.
According to the plea agreement, in the first count of Securities Fraud, LEE admits that in 2008 and 2009, while trying to get L&L stock listed on a national exchange, he falsely reported the identity of the company’s Chief Financial Officer (CFO) and lied about the existence of adequate internal controls in public SEC filings. In fact, the person LEE claimed was the CFO had refused to accept the position, and L&L had no CFO to ensure accurate financial reporting. In 2009, when the purported CFO discovered the fraud, LEE paid the individual tens of thousands of dollars in cash and stock in exchange for her silence, and never disclosed the arrangement to shareholders. Finally, in 2013, during a subsequent SEC investigation, LEE falsely testified under oath about the CFO’s role in the company.
In the second count of Securities Fraud, LEE admits that in 2011 and 2012, he issued hundreds of thousands of company shares to third-parties in China who, at LEE’s direction, sold the shares on the market to generate revenue for cash-strapped L&L. At the time, LEE knew that the SEC had initiated an investigation into L&L’s affairs and that raising cash through established investment banks was no longer a viable option. LEE also knew that L&L’s Board had been specifically advised that it could not authorize the direct issuance and sale of stock without public disclosure of the investigation. LEE, therefore, secretly issued L&L stock to China-based individuals under false pretenses and then directed their sale without ever disclosing the truth about the company. In order to further conceal his actions, LEE directed that the shares issued be falsely recorded in L&L’s accounting records as having been issued for compensation for services, whereas none of these individuals provided any benefit to L&L in return for the shares. Between May 2011 and March 2012, LEE directed in this manner the issuance and sale of approximately 730,000 shares.
The case is being investigated by the FBI. A parallel civil case is being pursued by the SEC. The case is being prosecuted by Assistant United States Attorney Kathryn Kim Frierson.
Buffalo Woman Pleads Guilty to Smuggling Heroin into Attica Correctional FacilityRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Elizabeth Camue Martinez, 33, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute and to distribute heroin before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of 20 years in prison, a $1,000,000 fine or both.
“The willingness of some to commit crime does not end simply by presence inside prison,” said U.S. Attorney Hochul. “In this case, the vigilance of staff, law enforcement, and local prosecutors made this prosecution possible. Prison staff everywhere must continuously monitor their institutions so that inmates once and for all lose the ability to break the law.”
According to Assistant U.S. Attorney Mary Catherine Baumgarten, between April 2013 and December 2013, the defendant smuggled gram quantities of heroin and ounces of marijuana into the Attica Correctional Facility and provided it to her husband, Andres Martinez, who was at that time incarcerated in the facility, knowing that he would then distribute the heroin and marijuana to other inmates.
The investigation resulted from two overdose deaths that occurred at the Attica Correctional Facility on December 5, 2013. Saleem Ali, 51, was found unresponsive in his cell. Ali died from acute fentanyl intoxication. Glendon Jackson, 25, was found unresponsive in his cell. Jackson also died from acute fentanyl intoxication.
During the course of the investigation a third overdose death occurred. On September 16, 2013, Avery Cureton, 45, was found unresponsive in his cell. Cureton died from acute heroin intoxication.
As part of her plea, Camue Martinez admitted purchasing the heroin and marijuana from Jerome J. Tallington. The defendant, Andres Martinez and Tallington were charged in February 2014. Charges are pending against Andres Martinez and Jerome Tallington. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Office, the New York State Police, under the direction of Major Michael Cerretto, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, the Wyoming Country District Attorney’s Office, under the direction of Donald O’Geen, and the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony Annucci.
Sentencing is scheduled for January 29, 2015 at 12:30 p.m. before Judge Arcara.Army Sergeant Pleads Guilty for Scheme to Defraud the MilitaryRead the Press Release
An Army sergeant pleaded guilty today to bribery and conspiracy to defraud the government for his role in a scheme to steal more than one million gallons of fuel from the U.S. military for resale on the black market in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina, Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service (DCIS) Southeast Field Office, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division, Director Frank Robey of the U.S. Army Criminal Investigation Command (CID) Major Procurement Fraud Unit (MPFU) and Special Inspector General for Afghanistan Reconstruction John F. Sopko made the announcement.
Christopher Ciampa, 32, of Lillington, North Carolina, entered his guilty plea before U.S. District Court Judge Terrence W. Boyle of the Eastern District of North Carolina. The sentencing hearing was scheduled for the week of December 15, 2014.
“Sergeant Ciampa took bribes to help steal millions of dollars’ worth of fuel meant to support U.S. military operations in Afghanistan,” said Assistant Attorney General Caldwell. “His greed put his fellow soldiers at greater risk, and his actions stand in stark contrast to the integrity and sacrifice demonstrated every day by the men and women of our Armed Forces.”
“The DCIS, with our investigative partners, continues to aggressively pursue those who deprive the Department of Defense of much needed resources, such as fuel, critical to accomplishing its global missions,” said DCIS Special Agent in Charge Khin. “Corruption and theft in a combat environment, especially on such a large scale, degrade the effectiveness of the U.S. armed forces, and increases the danger to our warfighters by diverting those resources to our enemies
“Sergeant Christopher Ciampa betrayed his unit and nation for personal profit by entering into illegal relationships in order to personally profit from the sale and transport of fuel valued at millions of dollars,” said FBI Special Agent in Charge Strong. “These actions, especially in a wartime environment, damage the reputation of all soldiers and impede the success of coalition war efforts. Those who put the reputation and lives of their fellow servicemen and women at risk will be aggressively pursued by the FBI and our military partners dedicated to upholding justice.”
“Our highly-trained special agents are experts in fraud investigations and untangling webs of lies and deceit,” said CID MPFU Director Robey. “Whether an individual is in or out of uniform, it makes no difference, we will do everything in our investigative power to see those who defraud the Army brought to justice.”
“The crimes alleged in this case are serious and describe actions that undermine our mission in Afghanistan,” said Special Inspector General Sopko. “SIGAR will continue to work tirelessly to protect the American taxpayers’ hard earned money and bring the full weight of the justice system to bear on anyone who seeks to rob the U.S. government.”
According to his plea agreement, Ciampa was deployed to Afghanistan with the 3rd Special Forces Group Service Detachment and was assigned to Camp Brown at Kandahar Air Field between February 2011 and January 2012. During the deployment, one of Ciampa’s chief responsibilities was management of the Transportation Movement Requests (TMRs) for fuel and other items in support of military units in Afghanistan paid for by the U.S. government.
Over the course of the conspiracy, Ciampa and others created and submitted false TMRs for the purchase of thousands of gallons of fuel that were neither necessary nor used by military units. Instead, Ciampa and his co-conspirators stole the fuel and resold it on the black market in neighboring towns. Between February 2011 and December 2011, they created false TMRs for 114 large fuel tanker trucks, which could each carry approximately 10,000 gallons of fuel. All of the TMRs were awarded to a single Afghan trucking company, despite significantly higher rates charged by this company.
As a result of the criminal conduct, the United States suffered a total loss of $10,812,000. The loss resulted from stolen fuel and payments on the fraudulent TMRs in the following amounts: $9,120,000 in lost fuel and $1,692,000 in fraudulent TMRs for the 114 large tanker trucks.
Ciampa admitted that he and his co-conspirators sent some of the illicit proceeds back to the United States via wire transfer and carried some of the cash in their luggage, and Ciampa hid $180,000 of stolen funds inside stereo equipment that he shipped back to North Carolina with his unit’s gear. He used his share of the proceeds from the scheme to purchase a truck and other personal items.
The case was investigated by DCIS, FBI, CID MPFU and the Special Inspector General for Afghanistan Reconstruction (SIGAR). The case is being prosecuted by Trial Attorney Wade Weems on detail to the Criminal Division’s Fraud Section from SIGAR and Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina.
Armed Career Criminal Receives 15-Year Federal SentenceRead the Press Release
PORTLAND, Ore. – Robert Todd Britt, 27, was sentenced today by U.S. District Judge Anna J. Brown to 15 years in federal prison following his plea of guilty to being an Armed Career Criminal in possession of a firearm. Britt pled guilty to the charge on June 11, 2014, and has been in custody since the time of his arrest on December 26, 2013.
Salem police officers arrested Britt based on a state warrant charging him with robbery II. At the time of his arrest, a loaded .22 caliber pistol was found in his front pocket. The Armed Career Criminal Act provides for a mandatory minimum sentence of 15 years’ incarceration for individuals who have previously been convicted of at least three violent felonies or serious drug offenses. Britt was eligible for the 15-year sentence based upon the following prior convictions:
- Burglary I, Marion County, 2006, sentence of 22 months imposed following revocation of the initial probationary sentence;
- Delivery of a controlled substance, Marion County, 2008, sentence of two months imposed following revocation of the initial probationary sentence; and
- Delivery of a controlled substance and felon in possession of a firearm, Marion County, 2009, sentence of 34 months.
The federal sentence was imposed to run concurrently with Marion County sentences received on June 25, 2014 for robbery II, identity theft, unauthorized use of a motor vehicle and assault on a public safety officer.
This case was investigated by ATF and the Salem Police Department. It was prosecuted by Assistant United States Attorney Fred Weinhouse.
Al Qaeda Spokesman Sulaiman Abu Ghayth Sentenced in Manhattan Federal Court to Life in Prison for Conspiring to Kill Americans, Providing Material Support to TerroristsRead the Press Release
Sulaiman Abu Ghayth Appeared with Usama Bin Laden and Ayman Al-Zawahiri Immediatelv After September 11, 2001, Threatening Additional Attacks Against the United States
United States Attorney General Eric Holder, United States Attorney for the Southern District of New York Preet Bharara, Assistant Attorney General for National Security John P. Carlin, Assistant Director-in-Charge George Venizelos of the New York Field Office of the Federal Bureau of Investigation (FBI), and New York City Police Commissioner William J. Bratton announced that Sulaiman Abu Ghayth, aka “Salman Abu Ghayth,” Usama Bin Laden’s son-in-law and the former spokesman for al Qaeda at the time of the September 11th terrorist attacks, was sentenced today in Manhattan federal court to serve life in prison by U.S. District Judge Lewis A. Kaplan. Abu Ghayth, who was arrested overseas on Feb. 28, 2013, and first appeared in this district on March 1, 2013, was found guilty on March 26, 2014, following a three-week jury trial, of conspiring to kill U.S. nationals, conspiring to provide material support to terrorists and providing material support to terrorists.
“Justice has been served,” said Attorney General Holder. “This outcome ensures that Sulaiman Abu Ghayth, a senior member of al Qaeda and an associate of Usama bin Laden, will never again set foot outside a prison cell. From beginning to end, this trial, conviction and sentencing have underscored the power of America’s Article III court system to deliver swift and certain justice in cases involving terrorism defendants. We will continue to rely on this robust and proven system to hold accountable anyone who would harm our nation and its people. And we will never waver, and never relent, in our pursuit of violent extremists.”
“As the face and voice of al Qaeda in the days and weeks after the 9/11 attacks, Abu Ghayth conspired with Usama Bin Laden and others and announced to the world al Qaeda’s deadly intentions to continue to attack America,” said Assistant Attorney General Carlin. “For his role in al Qaeda's plot to kill Americans, Abu Ghayth will now spend the rest of his life in prison. This case highlights our resolve to find and bring to justice - no matter how long it takes - those who plot to attack our citizens and our interests around the world. I want to thank all of the agents, analysts, and prosecutors who are responsible for this result.”
“Sulaiman Abu Ghayth was the mouthpiece of murder and menace for al Qaeda,” said U.S. Attorney Bharara. “Hours after the 9/11 attacks, Abu Ghayth, Usama bin Laden’s propaganda minister, was exhorting others to pledge themselves to al Qaeda in the cause of murdering more Americans. It has been 13 years since that terrible day, but from the day Abu Ghayth was brought to the United States 19 months ago, justice for him has been swift and fair. Today, having been afforded a fair and impartial trial in an American civilian court at which a jury unanimously convicted him of material support to al Qaeda and conspiring to kill Americans, Abu Ghayth has been sentenced to life in prison. No sentence can restore what was taken from the families of al Qaeda’s victims. But today’s sentence ensures that Sulaiman Abu Ghayth will never be free to incite or support mass murder again.”
“As the spokesman for al Qaeda, Abu Ghayth espoused messages of terror, hate and fear to motivate others to harm our country, underestimating the resiliency of the United States to stand strong in the face of violence and adversity,” said FBI Assistant Director-in-Charge Venizelos. “Today's sentence is the culmination of years of hard work and cooperative efforts among law enforcement professionals to seek justice for those who lost their lives in the 9/11 attacks. Along with its law enforcement partners, the FBI's Joint Terrorism Task Force will vigorously pursue those who support this radical terrorist agenda.”
“Sulaiman Abu Ghayth was a key spokesman for al-Qaida and had access to the terrorist group's senior leadership as he took to the airwaves and threatened further attacks as our city was recovering from the horror of 9-11,” said NYPD Commissioner Bratton. “His capture, trial and conviction is a reminder that the NYPD detectives and FBI agents of the Joint Terrorist Task Force will follow leads anywhere in the world to bring terrorists to justice.”
According to the evidence presented at trial, statements made during other public proceedings including today’s sentencing, and other court documents:
Since around 1989, al Qaeda has been an international terrorist organization, dedicated to opposing non-Islamic governments with force and violence. Usama Bin Laden served as the leader, or “emir,” of al Qaeda until his death on or about May 2, 2011. Members of al Qaeda typically have pledged an oath of allegiance, called bayat, to Bin Laden and to al Qaeda.
The core purpose of al Qaeda, as stated by Bin Laden and other leaders, is to support violent attacks against property and nationals, both military and civilian, of the United States and other countries. Between 1989 and 2001, al Qaeda established training camps, guest houses, and business operations in Afghanistan, Pakistan and other countries for the purpose of training and supporting its agenda of violence and murder. Members and associates of al Qaeda have executed a number of terrorist attacks, all in furtherance of the organization’s stated conspiracy to kill Americans, including the attacks on the United States on Sept. 11, 2001, in New York, Virginia and Pennsylvania, which killed approximately 2,976 people.
From at least May 2001 up to around 2002, Abu Ghayth served alongside Bin Laden, appearing with Bin Laden and his then-deputy and now the declared leader of al Qaeda, Ayman al-Zawahiri, speaking on behalf of al Qaeda and in support of Bin Laden’s terrorist objectives, recruiting young men to join al Qaeda and its murderous mission against the United States, and warning that attacks similar to those of Sept. 11, 2001, would continue.
In particular, around May 2001, Abu Ghayth urged young al Qaeda recruits at a guest house in Kandahar, Afghanistan, to swear bayat to Bin Laden, shortly before these men were brought to an al Qaeda training camp. On the evening of Sept. 11, 2001, immediately after the terrorist attacks on the United States, Bin Laden summoned Abu Ghayth and asked for his assistance, which Abu Ghayth agreed to provide. On the morning of Sept. 12, 2001, Abu Ghayth appeared with Bin Laden, Zawahiri, and another al Qaeda leader, and spoke on behalf of al Qaeda in a speech that would be disseminated around the world, warning the United States and its allies that “[a] great army is gathering against you” and called upon “the nation of Islam” to do battle against “the Jews, the Christians and the Americans.” Also, after the Sept. 11, 2001, terrorist attacks, Abu Ghayth delivered speeches in which he addressed the then-U.S. Secretary of State and warned that “the storms shall not stop, especially the Airplanes Storm,” and advised Muslims, children, and opponents of the United States “not to board any aircraft and not to live in high rises.” At this time, in Afghanistan, Bin Laden and others within al Qaeda were plotting to detonate shoe bombs aboard flights within or en route to the United States.
Abu Ghayth continued to speak on behalf of al Qaeda as the terrorist organization’s spokesperson through 2002, repeatedly working to drive more young men to al Qaeda. Also in 2002, Abu Ghayth arranged to be, and was, successfully smuggled from Afghanistan into Iran, where he was later arrested with other al Qaeda leaders.
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In addition to a prison term of life, Abu Ghayth was ordered to forfeit all foreign and domestic assets derived from, involved in, and used and intended to be used to commit terrorism against the United States, its citizens and residents, and their property, and was ordered to pay a $300 special assessment fee.
Abu Ghayth’s conviction is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, United States Marshals Service, and other agencies – and the National Security Division of the U.S. Department of Justice. The Justice Department’s Office of International Affairs and the U.S. Department of State also provided assistance.
The prosecution is being handled by Assistant United States Attorneys John P. Cronan, Nicholas J. Lewin and Michael Ferrara of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance from Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section, Tara M. LaMorte of the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, and Diane Gujarati, Deputy Chief of the Criminal Division of the U.S. Attorney’s Office for the Southern District of New York.
Al Qaeda Spokesman Sulaiman Abu Ghayth Sentenced in Manhattan Federal Court to Life in Prison for Conspiring to Kill Americans, Providing Material Support to TerroristsRead the Press Release
Eric Holder, the Attorney General of the United States, Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, the Assistant Attorney General for National Security, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Police Commissioner of the City of New York, announced that SULAIMAN ABU GHAYTH, a/k/a “Salman Abu Ghayth,” Usama Bin Laden’s son-in-law and the former spokesman for al Qaeda at the time of the September 11th terrorist attacks, was sentenced today in Manhattan federal court to life in prison by U.S. District Judge Lewis A. Kaplan. ABU GHAYTH, who was arrested overseas on February 28, 2013, and first appeared in this District on March 1, 2013, was found guilty on March 26, 2014, following a three-week jury trial, of conspiring to kill U.S. nationals, conspiring to provide material support to terrorists, and providing material support to terrorists.
Attorney General Eric Holder said: “Justice has been served. This outcome ensures that Sulaiman Abu Ghayth, a senior member of al Qaeda and an associate of Usama bin Laden, will never again set foot outside a prison cell. From beginning to end, this trial, conviction and sentencing have underscored the power of America’s Article III court system to deliver swift and certain justice in cases involving terrorism defendants. We will continue to rely on this robust and proven system to hold accountable anyone who would harm our nation and its people. And we will never waver, and never relent, in our pursuit of violent extremists.”
Manhattan U.S. Attorney Preet Bharara said: “Sulaiman Abu Ghayth was the mouthpiece of murder and menace for al Qaeda. Hours after the 9/11 attacks, Abu Ghayth, Usama bin Laden’s propaganda minister, was exhorting others to pledge themselves to al Qaeda in the cause of murdering more Americans. It has been 13 years since that terrible day, but from the day Abu Ghayth was brought to the United States 19 months ago, justice for him has been swift and fair. Today, having been afforded a fair and impartial trial in an American civilian court at which a jury unanimously convicted him of material support to al Qaeda and conspiring to kill Americans, Abu Ghayth has been sentenced to life in prison. No sentence can restore what was taken from the families of al Qaeda’s victims. But today’s sentence ensures that Sulaiman Abu Ghayth will never be free to incite or support mass murder again.”
Assistant Attorney General John Carlin said: “As the face and voice of al Qaeda in the days and weeks after the 9/11 attacks, Abu Ghayth conspired with Usama Bin Laden and others and announced to the world al Qaeda's deadly intentions to continue to attack America. For his role in al Qaeda's plot to kill Americans, Abu Ghayth will now spend the rest of his life in prison. This case highlights our resolve to find and bring to justice – no matter how long it takes – those who plot to attack our citizens and our interests around the world. I want to thank all of the agents, analysts, and prosecutors who are responsible for this result.”
FBI Assistant Director-in-Charge George Venizelos said: “As the spokesman for al Qaeda, Abu Ghayth espoused messages of terror, hate, and fear to motivate others to harm our country, underestimating the resiliency of the United States to stand strong in the face of violence and adversity. Today's sentence is the culmination of years of hard work and cooperative efforts among law enforcement professionals to seek justice for those who lost their lives in the 9/11 attacks. Along with its law enforcement partners, the FBI's Joint Terrorism Task Force will vigorously pursue those who support this radical terrorist agenda.”
NYPD Commissioner William J. Bratton said: “Sulaiman Abu Ghayth was a key spokesman for al Qaeda and had access to the terrorist group's senior leadership as he took to the airwaves and threatened further attacks as our city was recovering from the horror of 9/11. His capture, trial and conviction is a reminder that the NYPD detectives and FBI agents of the Joint Terrorist Task Force will follow leads anywhere in the world to bring terrorists to justice.”
According to the evidence presented at trial, statements made during other public proceedings including today’s sentencing, and other court documents:
Since around 1989, al Qaeda has been an international terrorist organization, dedicated to opposing non-Islamic governments with force and violence. Usama Bin Laden served as the leader, or “emir,” of al Qaeda until his death on or about May 2, 2011. Members of al Qaeda typically have pledged an oath of allegiance, called bayat, to Bin Laden and to al Qaeda.
The core purpose of al Qaeda, as stated by Bin Laden and other leaders, is to support violent attacks against property and nationals, both military and civilian, of the United States and other countries. Between 1989 and 2001, al Qaeda established training camps, guest houses, and business operations in Afghanistan, Pakistan, and other countries for the purpose of training and supporting its agenda of violence and murder. Members and associates of al Qaeda have executed a number of terrorist attacks, all in furtherance of the organization’s stated conspiracy to kill Americans, including the attacks on the United States on September 11, 2001, in New York, Virginia, and Pennsylvania, which killed approximately 2,976 people.
From at least May 2001 up to around 2002, ABU GHAYTH served alongside Bin Laden, appearing with Bin Laden and his then-deputy and now the declared leader of al Qaeda, Ayman al-Zawahiri, speaking on behalf of al Qaeda and in support of Bin Laden’s terrorist objectives, recruiting young men to join al Qaeda and its murderous mission against the United States, and warning that attacks similar to those of September 11, 2001, would continue.
In particular, around May 2001, ABU GHAYTH urged young al Qaeda recruits at a guest house in Kandahar, Afghanistan, to swear bayat to Bin Laden, shortly before these men were brought to an al Qaeda training camp. On the evening of September 11, 2001, immediately after the terrorist attacks on the United States, Bin Laden summoned ABU GHAYTH and asked for his assistance, which ABU GHAYTH agreed to provide. On the morning of September 12, 2001, ABU GHAYTH appeared with Bin Laden, Zawahiri, and another al Qaeda leader, and spoke on behalf of al Qaeda in a speech that would be disseminated around the world, warning the United States and its allies that “[a] great army is gathering against you” and called upon “the nation of Islam” to do battle against “the Jews, the Christians and the Americans.” Also, after the September 11, 2001, terrorist attacks, ABU GHAYTH delivered speeches in which he addressed the then-U.S. Secretary of State and warned that “the storms shall not stop, especially the Airplanes Storm,” and advised Muslims, children, and opponents of the United States “not to board any aircraft and not to live in high rises.” At this time, in Afghanistan, Bin Laden and others within al Qaeda were plotting to detonate shoe bombs aboard flights within or en route to the United States.
ABU GHAYTH continued to speak on behalf of al Qaeda as the terrorist organization’s spokesperson through 2002, repeatedly working to drive more young men to al Qaeda. Also in 2002, ABU GHAYTH arranged to be, and was, successfully smuggled from Afghanistan into Iran, where he was later arrested with other al Qaeda leaders.
ABU GHAYTH, 48, was convicted after trial of one count of conspiring to kill U.S. nationals, in violation of Title 18, United States Code, Section 2332(b); one count of conspiring to provide material support to terrorists, in violation of Title 18, United States Code, Section 2339A; and one count of providing material support to terrorists, in violation of Title 18, United States Code, Section 2339A. In addition to a prison term of life, ABU GHAYTH was ordered to forfeit all foreign and domestic assets derived from, involved in, and used and intended to be used to commit terrorism against the United States, its citizens and residents, and their property, and was ordered to pay a $300 special assessment fee.
ABU GHAYTH’s conviction is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, United States Marshals Service, and other agencies – and the National Security Division of the U.S. Department of Justice. The Justice Department’s Office of International Affairs and the U.S. Department of State also provided assistance.
The prosecution is being handled by Assistant United States Attorneys John P. Cronan, Nicholas J. Lewin, and Michael Ferrara of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance from Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section, Tara M. LaMorte of the Civil Division of the U.S. Attorney’s Office for the Southern District of New York, and Diane Gujarati, Deputy Chief of the Criminal Division of the U.S. Attorney’s Office for the Southern District of New York.
21 Alleged Southside York Gang Members Charged Federally with Racketeering ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the Bureau of Alcohol, Tobacco, Firearms and Explosives announced today that a federal grand jury in Harrisburg has indicted 21 residents of York, Pa. known as members of the “Southside Gang” on charges of racketeering and drug trafficking conspiracy over a 12 year period.
The federal indictment charges that the Southside Gang is a criminal enterprise whose purpose is to protect its territory and power through intimidation, violence and threats, generate profits primarily through open-air drug dealing within its territory and violent crime, defend and retaliate on behalf of gang members, and assist members through retaliation against witnesses and thwarting efforts of law enforcement.
15 of the defendants are already in state or county prison, serving sentences for drug dealing and other violent crimes. Four men were taken into custody earlier today by ATF agents and York City Police in a coordinated operation. Four of the defendants were charged with conspiracy to distribute drugs in a federal indictment filed earlier this year.
The racketeering conspiracy indictment was filed last week under seal in the U.S. District Court in Harrisburg and unsealed today.
According to U.S. Attorney Peter Smith and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Essam E. Rabadi, the racketeering conspiracy indictment is the result of a massive two-year combined investigation by ATF, York City Police Department and the York County District Attorney’s Office with participation by the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, and the Federal Bureau of Investigation. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
“The alleged RICO offenses and resultant arrests today make certain that York City streets belong to its rightful residents and not to armed criminals. This is a stern and loud message not to join a street gang, not to illegally possess or misuse firearms, and not to pursue a life of crime,” said ATF Special Agent in Charge Sam Rabadi. “ATF, along with our state and local partners, will continue a laser-like focus on investigating and removing armed gang members from our neighborhoods to prevent and reduce firearms related violence.”
The names of those charged in the indictment are listed below. Those taken into custody today appeared before Chief Magistrate Judge Martin C. Carlson in Harrisburg. All were held in custody pending detention hearings to be held at a future date.
According to the indictment, all 21 men are or have been members or participants in the Southside Gang, which is located in the southern area of the City of York. The center of the gang area is near Maple and Duke Streets in York, a location locally known as “the Jungle.”
The gang’s continuing presence allegedly functions through an organized structure, including senior leaders “who are feared and respected;” drug traffickers engaged in narcotics distribution; and “shooters,” who commit violent acts on behalf of the gang and to protect each other. Seniority is allegedly based on “generations,” i.e., ages of the members. The “older generation” of members rules by fear and intimidation; they direct or require the “younger generation” to engage in drug trafficking, robberies or shootings in support of the Southside Gang. Order is maintained through intimidation, threats, violence and, in some cases, murder.
The indictment alleges that defendant James Abney has been a principal leader and organizer, along with six other indicted individuals. The indictment also alleges that the Southside Gang includes a group of violent drug traffickers, originally affiliated with the “Bloods,” primarily a New York-based national violent street gang. The defendants who have been the alleged leaders of the drug source group are Rolando Cruz and Mark Hernandez.
The indictment alleges criminal acts, including 15 listed in the indictment, involving violence against a rival York gang, called “Parkway,” allegedly resulting in deaths of members of both gangs and innocent bystanders.
At the same time, Southside Gang members allegedly distribute illegal drugs, mainly crack cocaine, as a major part of the criminal enterprise’s business and used and possessed firearms to protect the drugs. The indictment alleges 62 such acts carried out in furtherance of the conspiracy.
According to U.S. Attorney Smith, many gang members involved in specific drug offenses and violent acts have been investigated and prosecuted by York and York County law enforcement agencies for years as individual cases. The federal prosecution aims at dismantling the organization by exposing and attacking its ongoing structure and leadership. The U.S. Attorney’s Office and ATF noted that the federal investigations of gang violence and drugs in York are continuing in full cooperation with local police and the York County District Attorney’s Office.
In a separate case involving violent crime activity in York, the U.S. Attorney’s Office announced the indictment last week of Jermaine Johnson, a/k/a “Face”, age 39, on charges of possession of ammunition as a felon. Johnson was arrested in New York yesterday on the basis of a federal arrest warrant issued in Harrisburg.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Name and Street Name
Age
Rolando Cruz, a/k/a “Mico”
29
29
Douglas Kelly, a/k/a “Killer”
36
Roscoe Villega, a/k/a “P Shawn”
40
James Abney, a/k/a “Doocs”
28
Tyree Eatmon, a/k/a “Ree”
26
Jahkeem Abney, a/k/a “Foo”
24
Maurice Atkinson, a/k/a “Mo”
27
Anthony Sistrunk, a/k/a “Kanye”
26
Cordaress Rogers, a/k/a “Tank”
28
Eugene Rice, a/k/a “B Mor”
26
Angel Schueg, a/k/a “Pocko”
24
Marquis Williams, a/k/a “Quis”
26
Jalik Frederick, a/k/a “Murder Cat”
21
Brandon Orr, a/k/a “B Or”
22
Malik Sturdivant, a/k/a “Base”
22
Jabree Williams, a/k/a “Minute”
23
Ronald Payton, a/k/a “Ron Ron”
22
Jerrod Brown, a/k/a “Boogie”
25
Quintez Hall, a/k/a “Q”
21
Richard Nolden, a/k/a “Rich”
24
22 September 2014
Washington County Man Misappropriated $300K in Clients' FundsRead the Press Release
PITTSBURGH - A Washington County resident pleaded guilty in federal court to charges of wire fraud and filing false tax returns, United States Attorney David J. Hickton announced today.
James Grimes, 35, of Lawrence, Pennsylvania pleaded guilty to seven counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Grimes misappropriated $313,000.00 in funds belonging to clients of his brokerage firm. He also allegedly failed to report the income realized on his tax return for the years 2007-2009.
Judge Fischer scheduled sentencing for Jan. 29, 2015 at 9 a.m. The law provides for a total sentence of 89 years in prison, a fine of $1,750,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued James Grimes’ bond.
Assistant United States Attorney James Y. Garrett is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of James Grimes.
Ville Platte Man Sentenced to 105 Months in Prison for Role in Armed Robbery of a Truck Stop/CasinoRead the Press Release
LAFAYETTE, La. –A Ville Platte man was sentenced last week to 105 months in prison for participating in the armed robbery of a St. Landry Parish casino and truck stop, U.S. Attorney Stephanie A. Finley announced today.
Dudley Stevens Nelson, 25, of Ville Platte, La., was sentenced Friday by U.S. District Judge Elizabeth E. Foote, to 21 months in prison for one count of interference with commerce by robbery and to 84 months in prison for one count of use and carrying of a firearm during and in relation to a crime of violence, for a total of 105 months in prison. He was also sentenced to serve five years of supervised release and ordered to pay $11,675 in restitution. According to evidence presented at the October 28, 2013 guilty plea, the defendant along with Ville Platte residents Arinskie Tryvon Orlandeze Jones and Ronald James Doomes robbed the Tiger Trax truck stop and casino in Whiteville, La., on April 8, 2011. Nelson admitted to driving the vehicle and knowing beforehand that a gun would be used. After robbing the truck stop and casino, the defendants left with $11,675 in a white sports utility vehicle. Authorities located the vehicle and attempted a traffic stop. Three individuals exited the vehicle and fled on foot. Nelson was apprehended. Jones and Doomes turned themselves in to authorities six days later.
A federal jury found Doomes guilty of one count of armed robbery and one count of use and carrying of a firearm during and in relation to a crime of violence. Doomes’ sentencing is scheduled for November 15, 2014, and he faces a prison term of seven years to life. Jones was found guilty of one count of interference with commerce by robbery on August 27, 2014. He faces 20 years in prison. A sentencing date has not been set. They both face five years of supervised release and up to a $250,000 fine.
This case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety. The PSN attorneys prosecute a variety of federal firearms violations listed in Titles 18 and 26 of the U.S. Code, including illegal possession of firearms and commission of crimes with firearms.
The FBI, ATF and the St. Landry Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
United States Attorney Hartunian Addressed Taxpayers Against Fraud Conference and Detailed Office’s Fraud-fighting EffortsRead the Press Release
Discussed Northern District of New York’s Aggressive Civil Frauds Program
ALBANY, NEW YORK – On Wednesday, September 17, 2014, United States Attorney Richard S. Hartunian and other senior Department of Justice officials addressed the membership of Taxpayers Against Fraud, a nonprofit organization dedicated to combating fraud against the government and protecting public resources through public-private partnerships. The Acting Associate Attorney General of the United States spoke about the Department of Justice’s national fraud priorities, while United States Attorney Hartunian addressed his office’s aggressive and innovative efforts to fight fraud in upstate and central New York.
Mr. Hartunian was asked to focus his remarks on the Northern District of New York’s application of the False Claims Act, which is the United States’ strongest civil tool to deter and redress fraud committed against government programs. The Act has unique qui tam provisions, which allow private citizens to file suit alleging fraud on behalf of the government. If the government prevails in the action, the whistleblower (known as a “relator”) receives up to 30 percent of the recovery. The Department of Justice secured $3.8 billion in False Claims Act settlements and judgments last fiscal year alone, of which relators received $345 million. Several million of those dollars were recovered as a result of cases worked by Mr. Hartunian’s staff.
“As a United States Attorney, my responsibilities include protecting the public fisc and our people from harm. I am committed to fulfilling that responsibility aggressively and fairly, and I have instructed my staff to be both aggressive and fair in their interpretation and application of the False Claims Act,” explained United States Attorney Hartunian. Mr. Hartunian highlighted the following fraud cases that his office resolved this past year:
Marketing of prescription drugs for unapproved uses: His office, in conjunction with its colleagues in the Eastern District of Pennsylvania, resolved criminal and civil investigations arising from Endo Pharmaceuticals’ marketing of the prescription drug Lidoderm for uses not approved as safe and effective by the Food and Drug Administration. In total, the company agreed to pay $192.7 million in civil damages, criminal forfeiture, and monetary penalties and to enter into a deferred prosecution agreement with enhanced compliance measures. This settlement emphasized that public health is protected by compliance with FDA’s drug approval process and requirement that product labeling be based on performance, rather than profitability.
Administering drugs outside of the presence of a qualified physician: Thanks to the assistance of a whistleblower, his office reached a $3.57 million settlement to resolve allegations that Imagimed (operating as “Open MRI”), its owners, and chief radiologist, submitted false claims to federal healthcare programs for magnetic resonance imaging services with a contrast dye without the direct supervision of a qualified physician. Since a potential adverse side effect of contrast dye is anaphylactic shock, federal regulations require that a physician supervise the administration of contrast dye when it is used for an MRI. Such a resolution stripped away the profit motive for circumventing the physician supervision requirements that safeguard patients.
Violations of the Recovery Act’s “Buy American” requirement: His office recently resolved, for $500,000, a case involving allegations that Jett Industries, a Colliersville-based general contractor, had falsely certified compliance with the American Recovery and Reinvestment Act’s “Buy American” provision. Jett purchased key project components in France, and then created and submitted paperwork in an effort to mislead the government into believing that the cheaper, French-made products were produced in the United States.
City acknowledges that it mismanaged federal funds: Another recent case that involved a seven-figure monetary recovery, an admission of wrongdoing, and other forward-looking (non-monetary) components was a settlement reached last month with the City of New York. This settlement resolved allegations, brought to our attention by a whistleblower, that the New York City Human Resources Administration (HRA) violated the False Claims Act by causing various managed care organizations to provide health care coverage to individuals that HRA knew, or should have known, were ineligible to receive benefits through New York State’s Medicaid program. As part of the settlement, HRA accepted responsibility for failing to timely review and close Medicaid cases after being provided information that the beneficiaries moved outside of New York City, and it admitted that its inaction caused one or more MCOs to receive payments to insure individuals who were ineligible for benefits through New York State’s Medicaid program. HRA also agreed as part of the settlement to establish a process to investigate and close Medicaid cases whenever it learns that a beneficiary no longer resides within its coverage area.
Unlawful physician compensation arrangements: A settlement was also reached last month with the New York Heart Center. In that case, a group of upstate New York cardiologists agreed to pay $1.34 million to resolve allegations that its physicians’ compensation was determined using a formula that took into account the volume or value of each physician’s ordering of designated health services from other physicians in the practice, in violation of the Stark Law. By pursuing such cases, physicians in Northern New York and elsewhere will think twice before entering into financial arrangements where a physician’s medical judgment may be compromised by financial incentives.
Billing the government for no-show jobs: With the assistance of another whistleblower, his office resolved allegations that Ithaca-based defense contractor Agave BioSystems and its president submitted false claims to the Department of Defense, seeking reimbursement for work that was never performed. Mr. Hartunian concluded his remarks at the conference with the following observation: “The Northern District of New York is committed to building a leading qui tam practice because the False Claims Act works. It works because it is an effective tool to fight fraud across the full spectrum of federal programs. It works because it provides powerful incentives for companies and individuals to do business honestly. And it works because it safeguards taxpayer money, protects public safety, and improves confidence in government.”
Union Negotiator Pleads Guilty to FraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Frank Aquila, 76, of Amherst, N.Y., pleaded guilty to fraud involving a scheme to defraud the Buffalo Educational Support Team (BEST), a union representing approximately 900 teacher’s aides and assistants in the City of Buffalo School District, before Chief U.S. District Judge William M. Skretny. The charge carries a maximum sentence of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that between March 2006 and December 2011, the defendant served as the chief negotiator for BEST during 2008 collective bargaining negotiations with the City of Buffalo School District. Aquila, as chief negotiator for BEST, refused to reach final agreement with the district on a collective bargaining agreement until and unless the district agreed to allow BEST to (1) select its own insurance broker; (2) make commission payments totaling $135,000 per year for four years to an insurance broker selected by BEST; and (3) agreed to make four payments to BEST of $65,000 each for costs and expenses associated with administering health insurance benefits for its members.
The defendant failed to disclose to the district or BEST that he would share in commissions paid to the insurance broker selected by BEST, and in payments made to BEST to administer health insurance benefits for its members. Aquila unlawfully obtained $332,500.The plea is the culmination of an investigation by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent-in-Charge Cheryl Garcia of the New York Regional Office.
Sentencing is scheduled for January 28, 2015, at 9:00 a.m. before Judge Skretny.Two Taiwan Nationals Admit International Drug Trafficking, Attempting to Export United States Military Drone Technology to People's Republic of ChinaRead the Press Release
NEWARK, N.J. - Two Taiwan nationals today admitted their roles in an international scheme to import narcotics and attempting to export sensitive United States’ military technology, U.S. Attorney Paul J. Fishman announced.
Hui Sheng Shen, 47, and Huan Ling Chang, 43, each pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to one count of conspiracy to import illegal drugs and one count of conspiracy to violate the Arms Export Control Act.
According to documents filed in this case and statements made in court:
From June 2010 through February 2012, Shen and Chang engaged in a wide-ranging pattern of global criminal activity that touched on the United States, the People’s Republic of China (PRC), the Philippines, Taiwan, Hong Kong, and elsewhere.
In September 2011, Shen and Chang asked undercover agents from the FBI (UCs) whether they could obtain and pass along highly sensitive American military technology, including defense articles restricted from export, for the benefit of individuals and organizations operating on behalf of the PRC. In December 2011, the UCs told Shen and Chang that the UCs could obtain certain drone technology, including a small drone known as the “RQ-11B,” and a manual for the RQ-4 “Global Hawk” drone, and asked Shen and Chang to find out if their clients were interested in these items. Shen and Chang later e-mailed the UCs that their clients were interested in the RQ-11B (as well as the RQ-4 and related manuals), and asked how much each would cost.
In February 2012, Shen and Chang arrived in New York and told a UC that they purchased cameras to take pictures of military technology. They explained they intended to delete them from the memory cards and use one of their contacts in the PRC to retrieve the deleted photos from the cameras’ memory, avoiding detection by law enforcement.
At another meeting, Shen and Chang examined the RQ-11B, as well as manuals relating to the RQ-4. A UC explained that it was illegal to export any of the items being discussed, and pointed out the warnings to that effect affixed to each of the items. Shen then told the UCs how he and Chang planned to remove the RQ-11B from the United States, and stated that he could use techniques that he had learned from narcotics trafficking, such as using scuba divers to swim out to a ship docked offshore with parts from the RQ-11B, or loading the parts onto a remote controlled semi-submersible vehicle to rendezvous with a ship.
Shen and Chang were then shown manuals for the RQ-4 and the RQ-11B, and Shen and Chang took photographs of both manuals. The pair were arrested before they could delete the photographs.
In February 2011 a conspirator introduced Shen and Chang to the UCs at a meeting in Manila. The conspirator and Shen arranged for the delivery of a sample of crystal methamphetamine to the UCs, who then negotiated the purchase of one kilogram of crystal meth for $70,000. In July 2011, the drug was shipped to the United States hidden in a shipping container, which was discovered by law enforcement agents in the exact location described by Shen and Chang.
The drug charge to which Shen and Chang pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. The arms export control act violation carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencings are scheduled for January 5, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty pleas. He also thanked officers of the U.S. Customs and Border Protection, under the direction of Robert E. Perez, Director, Field Operations; FBI special agents in Manila, Beijing, Hong Kong and Taiwan; the Philippine authorities; and the Department of Justice’s Organized Crime and Gangs Section, Office of Enforcement Operation and Office of International Affairs, for their roles in the case.
The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.14-337
Defense counsel: Shen: Kenneth Kayser Esq., West Orange, N.J.
Chang: Maria Noto, Esq., Matawan, N.J.Shen, Hui Sheng Information
Chang, Huan Ling Information- Two Sent to Prison in Stolen Identity Tax Refund Fraud Scheme
Two People from Minnesota Indicted for Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a man and a woman from Minneapolis, Minnesota, have been indicted by a federal grand jury for Sex Trafficking by Force, Fraud and Coercion.
David Nance, age 31, and Ashley Crayton, age 26, appeared before U.S. Magistrate Judge John E. Simko on September 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 15 years in custody or a maximum of life imprisonment. There could also be a $250,000 fine, a minimum of 5 years supervised release, up to life, and restitution may also be ordered.
Sioux Falls police responded to a call from the Red Roof Inn regarding a complaint of possible prostitution activity at the hotel. Several men were observed entering and leaving a specific room in the hotel. Further investigation was conducted and the two defendants were subsequently arrested.
The charge is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sioux Falls Police Department and U.S. Immigration and Customs Enforcement's Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Nance and Crayton were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for November 25, 2014.
Two Ironworkers Plead Guilty to RICO ChargesRead the Press Release
PHILADELPHIA- Two members of the Ironworkers Local 401, Francis Sean O’Donnell and William Gillin pleaded guilty today to RICO conspiracy, arson, and related charges in United States District Court before the Honorable Michael Baylson. Sentencing hearings are scheduled for January 13, 2015 for Francis Sean O’Donnell and for January 14, 2015 for William Gillin.
Francis Sean O’Donnell, 43, of Warminster, PA pleaded guilty to RICO conspiracy, conspiracy to maliciously damage property by means of fire, and attempted maliciously damaging property by means of fire. During the offense conduct, O’Donnell acted as a business agent for the Ironworkers Local 401 and participated in more than 10 extortions or attempted extortions with the intent to force non-union contractors to hire union labor. O’Donnell recruited other members of the Ironworkers Local 401, whom he called his “Shadow Gang,” to assist him in these crimes. If a contractor refused to hire union labor, O’Donnell and the “Shadow Gang” typically would enter a non-union construction site at night, use sledgehammers to destroy anchor bolts, and cause tens of thousands of dollars in damage.
William Gillin, 43, 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. Gillin participated in a series of incidents on behalf of the Ironworkers Local 401 as part of the plan by the defendants to force non-union contractors to hire union labor. Specifically, Gillin admitted that he participated in the Quaker Meetinghouse arson, an arson on Grays Avenue in Philadelphia, and an attempted arson in Malvern as well as other episodes – all in retaliation for the contractors failure to hire union ironworkers.
O’Donnell faces a statutory maximum sentence of 60 years in prison, with a five year mandatory minimum sentence, three years of supervised release, a $750,000 fine, and a $300 special assessment; Gillin faces a statutory maximum sentence of 110 years in prison, with a 15 year mandatory minimum sentence, three years of supervised release, a $1.5 million fine, and a $600 special assessment.
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, 215-861-8525Tennessee Man Sentenced to 78 Months in Federal Prison for Theft of Interstate ShipmentRead the Press Release
Roderick Earl Nunn Stole Semi-Trucks and Trailers Containing More than $1,000,000 Worth of Goods
GRAND RAPIDS, MICHIGAN – Roderick Earl Nunn, 40, of Memphis, Tennessee, was sentenced today to 78 months in federal prison for stealing semi-trucks and trailers containing more than $1,000,000 of goods traveling in interstate commerce. The Honorable Robert J. Jonker imposed the sentence.
Nunn pled guilty in March 2014 to stealing a semi-truck and trailer in Romeoville, Illinois on April 15, 2012, which contained $175,000 worth of Wrigley candy products. He was driving the stolen cargo to Detroit, Michigan, when he was stopped by police outside of Marshal, Michigan. At sentencing, the court determined that in 2006-2012, Nunn had stolen eight other semi-trucks and trailers containing more than $1,000,000 worth of goods.
U.S. Attorney Patrick A. Miles, Jr., said, “Protecting the shipment of goods between the states is important to the financial well-being of our citizens. We continue to vigorously prosecute these types of brazen thefts.”
The case was investigated by the FBI, the Michigan State Police Southwestern Commercial Auto Recovery Unit, the Marshall, Michigan Police Department, and the Calhoun County Sheriff’s Department. It was prosecuted by Assistant U.S. Attorney Clay Stiffler.
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Statement of Manhattan U.S. Attorney Preet Bharara on Status of Rikers Island InvestigationRead the Press Release
Forty-nine days ago, on August 4th, this Office issued a report detailing the appalling treatment of adolescents at Rikers Island. Since then, we have been engaged in making sure that the City and Department of Correction are moving swiftly to implement reforms that are meaningful, effective, and permanent. As the relevant City authorities are well aware, while we are listening to their promises to take various steps, we have an independent responsibility to ensure that the Constitution is respected and upheld everywhere, including on Rikers Island, and part of that duty is to guarantee that needed reforms are lasting, verifiable, and enforceable. Another part of our duty is to make sure that only accurate information is put forward and that competent and attentive leadership is in place at all levels. If, as has been reported, incomplete and inaccurate information has been provided to us, and questionable promotions may have occurred, it does not instill confidence in us that the City will quickly meet its constitutional obligations. We are not, at this early stage, jumping to conclusions about the City’s commitment to change, and our dialogue is ongoing. However, now that the 49-day waiting period has elapsed and all options are available to us, we stand ready to take legal action to compel long-overdue reforms at Rikers, if that becomes necessary to get the job done.
Sioux Falls Man Indicted for Wire FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Wire Fraud.
Eugene Joseph Drong, age 71, was indicted on September 9, 2014. He appeared before U.S. Magistrate Judge John E. Simko on September 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Drong was indicted in federal court on 21 counts of wire fraud.
The charge is merely an accusation and Drong is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Drong was released on bond pending trial. A trial date has not been set.
Sioux Falls Man Indicted for Wire FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Wire Fraud.
Brent Alan Fowler, age 52, was indicted on September 9, 2014. He appeared before U.S. Magistrate Judge John E. Simko on September 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 2 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Fowler has been charged with 20 counts of wire fraud during the time period of June 2011 through December 2012.
The charge is merely an accusation and Fowler is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Fowler was released on bond pending trial. A trial date has not been set.
Round Rock Business and Management Indicted for Allegedly Employing Undocumented AliensRead the Press Release
In Round Rock, TX, today, federal authorities arrested Richard Anthony Corrales, 55–year-old President of CORTEC Precision Sheet Metal, Inc., and two others for allegedly employing undocumented aliens announced Robert Pitman, United States Attorney for the Western District of Texas, and Janice Ayala, Special Agent in Charge for Homeland Security Investigations (HSI) in San Antonio.
A two-count federal grand jury indictment, unsealed today, charges Corrales, CORTEC, 44-year-old old CORTEC brake operator Leopoldo Yepez, and 42–year-old CORTEC Human Resources Manager Mon Prum Cerda with one count of harboring undocumented aliens and one count of unlawful employment of undocumented aliens.
The indictment alleges that beginning in September 2013, the defendants concealed from law enforcement undocumented aliens employed by CORTEC. According to the indictment, agents with the Department of Homeland Security (DHS) supplied the defendants with names of at least 16 undocumented aliens employed at the company and provided the defendants with 10 days notice to provide valid documentation. The indictment further states that in January 2014, the defendants knowingly employed the undocumented aliens after representing to DHS that they had been fired. In June 2014, the defendants informed DHS that many of the positions previously held by the undocumented aliens were still vacant when in fact, they were still employing undocumented aliens.
The defendants face up to ten years in federal prison if convicted of the harboring charge and up to six months in federal prison if convicted of the unlawful employment charge. CORTEC faces fines of up to $250,000 on the harboring charge and up to $3,000 for each undocumented alien employed.
“Today’s arrest of three employees of the CORTEC Precision Sheet Metal Company comes in the wake of an investigation where these individuals were knowingly hiring an illegal workforce,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “Investigations of these criminal violations play an important role in HSI’s mission. Employers are encouraged to participate in the ICE Mutual Agreement between Government and Employers (IMAGE) Program, an outreach program designed to provide employers with the tools and knowledge that will enable them to hire and maintain a legal workforce.”
These charges and arrests resulted from an investigation conducted by Homeland Security Investigations (HSI). Assistant United States Attorney Douglas Gardner is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Rochester Man Pleads Guilty to Robbing the Same Bank Three TimesRead the Press Release
ROCHESTER N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Edward Brown, 51, of Rochester, NY, pleaded guilty to bank robbery before U.S. District Judge Charles J. Siragusa. The charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated the defendant entered the Citizens Bank at 40 Franklin Street in Rochester on June 25, 2014 and told the teller “I got a gun in my waist, I don’t want anybody to get hurt. Give me money in small bills.” The teller gave Brown a specific amount of money.
On July 31, 2014, the defendant entered the same Citizens Bank, approached a teller and said “Give me money in small bills.” The teller again gave Brown a specific amount of money.
The defendant entered the Franklin Street branch a third time on August 4, 2014. On that date, Brown told the teller “I have a gun and I’ll use it.” Once again, the teller gave Brown a specific amount of money.
The plea is the culmination of an investigation on the part of the Rochester Police Department’s Major Crimes and Tactical Units, under the direction of Chief Michael Ciminelli, the Federal Bureau of Investigation, and the NYS Department of Corrections and Community Service under the direction of Acting Commissioner Anthony J. Annucci.
Sentencing is scheduled for December 19, 2013 at 10:30 a.m. before Judge Siragusa.Rapid City Man Indicted for Firearm ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm with Altered or Obliterated Serial Number and Possession of a Firearm by a Prohibited Person.
Moses Crowe, age 21, was indicted on May 20, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 15, 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, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
On January 8, 2014, Crowe, who has a previous domestic abuse conviction, was in possession of a firearm with the manufacturer’s serial number removed, altered and obliterated.
The charge is merely an accusation and Crowe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Crowe was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rapid City Father and Daughter Indicted for Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man and woman have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Michael Gallas, age 56, and Charissa Gallas, age 31, were indicted on August 26, 2014. Michael and Charissa appeared before U.S. Magistrate Judge Veronica L. Duffy on September 12, 2014, and September 16, 2014, respectively, and both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
Beginning no later than December of 2013, Michael Gallas and Charissa Gallas conspired with others to distribute methamphetamine in the District of South Dakota.
The charge is merely an accusation and both are presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Michael Gallas was remanded to the custody of the U.S. Marshals Service pending trial. Charissa Gallas was released on bond pending trial. A trial date has been sent for November 18, 2014.
Ohio Man Sentenced to Federal Prison for Selling Heroin in ParkersburgRead the Press Release
CHARLESTON, W.Va. – An Ohio man who distributed heroin in Parkersburg, West Virginia in 2013 was sentenced today to seven years in federal prison, announced United States Attorney Booth Goodwin. Marion Alonvo Felder, 30, of Upper Sandusky, Ohio, previously pleaded guilty in May of 2014 to distribution of heroin.
On three occasions in September and October 2013, Felder sold heroin to an informant working with police in Parkersburg. Felder admitted coming to Parkersburg from Marion, Ohio in early 2013 to sell heroin. Felder’s case was part of a larger investigation into heroin being brought from Chicago, Illinois and Marion, Ohio to be sold in and around Parkersburg.
The Parkersburg Police Department and the Washington County, Ohio Major Crimes Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Oacoma Man Sentenced for Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oacoma, South Dakota, man charged with Lacey Act violations pled guilty to and was sentenced on September 17, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Anthony Nogy, age 35, was sentenced to 1 year of unsupervised probation, a $5,000 fine, $750 in restitution to the Ontario Ministry of Natural Resources, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place between September 24, 2013, and September 30, 2013, when Nogy and six friends from South Dakota and Minnesota went on a moose hunt in Ontario, Canada. While on the hunt, Nogy shot and killed a gray wolf without a license. The following day, Nogy purchased a wolf tag and had it flown to the camping site and then attached it to the wolf. At the international border, Nogy declared the moose he had killed during the trip, but failed to declare the wolf hide.
The investigation was conducted by the U.S. Fish & Wildlife Service. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
O.C. Resident Sentenced to Federal Prison for Selling Stolen Hospital Supplies over Internet in Scheme That Brought Him $1.8 MillionRead the Press Release
SANTA ANA, California – An Irvine man has been sentenced to serve 15 months in federal prison for selling stolen hospital supplies over the Internet, including on eBay and Alibaba.com.
Bahram Khandan, 50, was sentenced today by United States District Judge Cormac J. Carney, who also ordered the defendant to spend nine months on home detention following the completion of the prison term.
Additionally, Judge Carney scheduled a hearing for November 10 to determine how much Khandan shall pay in restitution to victim hospitals.
Khandan pleaded guilty on February 20 to misbranding of a drug with intent to defraud and interstate transportation of stolen property.
Khandan ran a company in Irvine variously known as United Capital Group, Inc.; UCGI Health; and UCGIMedicx (UCGI). Khandan received prescription drugs, biological products and medical supplies from his sister, who stole products from hospitals where she worked, including the UC Irvine Medical Center in Irvine, Kaiser Permanente’s Riverside Medical Center, and the Arrowhead Regional Medical Center in Colton.
Khandan sold the stolen prescription drugs, biological products and medical supplies on eBay and Alibaba.com. On March 18, 2011, search warrants were executed an Irvine house owned by Khandan, where the UCGI business was based, and authorities seized stolen medical products and $141,516 in cash.
Khandan realized profits of $1,883,390 by selling the stolen products over the Internet to customers across the United States and in foreign countries.
Khandan’s sister, Goli Alai-Khandan, was prosecuted by the Riverside County District Attorney’s office on charges related to thefts from the Kaiser Permanente facility. Alai-Khandan was sentenced to one year in state prison. Khandan was also charged in that case in relation to the thefts from Kaiser’s Riverside hospital. He received a sentence of six months in that state court case, a sentence that was taken into account by authorities in the federal case.
The federal case against Khandan was investigated by the U.S. Food and Drug Administration – Office of Criminal Investigation, which is responsible for enforcing the provisions of the Food, Drug and Cosmetics Act, a federal statute designed to ensure that drugs sold for use by humans are safe, effective and accurately labeled.
“Protecting the legitimate supply chain of regulated prescription drugs is an FDA priority,” said Lisa Malinowski, Special Agent in Charge of the FDA’s Office of Criminal Investigations. “Once these products are removed from the closed system that FDA oversees, there can be no guarantee that the products are safe, effective or even that they are what they purport to be. These illegal products could threaten the health of patients who rely on the drugs.
Release No. 14-123
Neosho Man Sentenced to 20 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Neosho, Mo., couple have been sentenced in federal court for their roles in a conspiracy to distribute methamphetamine in Jasper and Newton counties.
Gregory M. Holcomb, 53, of Neosho, was sentenced today by U.S. District Judge Gary A. Fenner on Friday, Sept. 19, 2014, to 20 years in federal prison without parole. Co-defendant Malinda Sue Willis, 49, also of Neosho, was sentenced on Thursday, Sept. 18, 2014, to six years in federal prison without parole.
On April 17, 2014, Holcomb pleaded guilty to participating in a conspiracy to distribute methamphetamine from January 2009 to July 13, 2011. Holcomb and other conspirators distributed methamphetamine primarily in Jasper and Newton counties. The total amount of methamphetamine that Holcomb knew was being distributed (or was responsible for assisting to distribute) during the conspiracy is in excess of 1.5 kilograms.
According to court documents, Holcomb possessed numerous firearms, traded firearms for drugs and was involved in dismantling stolen vehicles in a garage on his property. A July 11, 2011, search warrant executed at the residence Holcomb shared with Willis yielded 21 firearms, including several shotguns and an SKS assault rifle, multiple rounds of ammunition and items related to the packaging and distribution of narcotics. Agents also located approximately 200 grams of methamphetamine that was 95 to 100 percent pure, along with $1,949.
After being indictment, Holcomb fled from the Western District of Missouri and moved with Willis to Honduras for three months to evade prosecution.
Willis also pleaded guilty to her role in the conspiracy. Willis admitted that she assisted Holcomb, who was the main source of supply of methamphetamine in the conspiracy, by selling or distributing methamphetamine she obtained from Holcomb to other persons. Willis also assisted Holcomb in setting up methamphetamine transactions with other persons.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the police departments of Ozark, Springfield and Joplin, Mo.; the sheriff’s departments of Barry, Lawrence, Jasper and Ottawa County, Mo.; COMET (the Combined Ozarks Multi-jurisdictional Enforcement Team); the SWDTF, the Jasper County Drug Task Force, the Oklahoma Bureau of Narcotics; the Missouri State Highway Patrol; the Oklahoma State Highway Patrol; the Oklahoma State Bureau of Investigation; the Eastern Shawnee Tribal Police; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; IRS-Criminal Investigation; and the Bureau of Indian Affairs.Murdo Man Acquitted of Sexual Abuse ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Murdo, South Dakota, man was acquitted of Aggravated Sexual Abuse of a Child, Abusive Sexual Contact, and Sexual Abuse of a Minor, as a result of a four-day federal jury trial in Pierre, South Dakota. The trial ran September 9 through September 12, 2014.
Shannon White Buffalo, age 46, was indicted by a federal grand jury on August 21, 2013.
The charges stemmed from alleged incidents that occurred between August 2010 and December 2013, when White Buffalo allegedly sexually abused three different minor victims in Mellette County.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The U.S. Attorney's Office prosecuted the case.
Middlesex County, N.J., Woman Admits Conspiring to Defraud U.S. Treasury Department of More Than $900,000Read the Press Release
TRENTON, N.J. - A Middlesex County, New Jersey, woman today admitted her role in defrauding the United States Department of the Treasury of more than $900,000 in income tax return checks, U.S. Attorney Paul Fishman announced today.
Rosanna Rodriguez, 29, of Middlesex, New Jersey, pleaded guilty today before U.S. District Judge Anne E. Thompson in federal court in Trenton, to an information charging her with one count of conspiracy to defraud the United States.
According to documents filed in the case and statements made in court: Rodriguez was the head teller at a bank located in Perth Amboy, New Jersey, and received Treasury checks from her conspirators. Rodriguez’ role in the scheme was to negotiate Treasury checks against unknowing third-party bank accounts at the bank. She admitted the total loss from the conspiracy was more than $900,000, and that she used a portion of that money for her own personal expenses, knowing the money had been fraudulently obtained from the U.S. Treasury.
The count of conspiracy to defraud the United States is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for January 12, 2015.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and special agents of Homeland Security Investigations, Immigration and Customs Enforcement, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, N.J.
14-335
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, NewarkRodriguez, Rosanna Information
Maryland Man Sentenced to Seven Years in Prison for Bank Fraud and Identity Theft SchemeRead the Press Release
ALEXANDRIA, Va. – Taofik Gbadamosi, 42, of Bowie, Maryland, was sentenced on Friday to seven years in prison, followed by four years of supervised release, for supervising a bank fraud and identity theft scheme in the Washington, D.C. metro area. Gbadamosi also was ordered to pay restitution and forfeiture of approximately $781,697.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Kathy A. Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Earl L. Cook, Alexandria Chief of Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Gbadamosi pleaded guilty on May 29, 2014 to conspiracy to commit bank fraud and aggravated identity theft. According to court documents, Gbadamosi and his co-conspirators opened business accounts at banks in the Washington metro area, including in the Eastern District of Virginia, and the group funded the accounts through stolen and counterfeit checks and unauthorized wire transfers.
Gbadamosi was a manager and supervisor in the conspiracy, driving other conspirators from bank to bank and directing them to withdraw stolen funds. Gbadamosi gave false identification documents to his co-conspirators, who would then enter the banks and use the IDs to cash checks drawn on the fraudulently funded accounts. These IDs contained the names and birthdates of real people who did not know their identities had been stolen. On at least one occasion, Gbadamosi gave the real driver’s license of an individual to a co-conspirator, whom Gbadamosi then directed to make unauthorized withdrawals from that individual’s bank account.
Gbadamosi is the second co-conspirator to be sentenced in the case. On March 14, 2014, Samuel Goines was sentenced to five years in prison and three years of supervised release. Gbadamosi managed and supervised Goines during his participation in the conspiracy.
This case was investigated by the FBI’s Washington Field Office, U.S. Secret Service, and Alexandria Police Department. Assistant U.S. Attorney Kosta S. Stojilkovic and Special Assistant U.S. Attorney William E. Johnston prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-161.