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Wednesday 30 July 2014
Massachusetts Man Convicted of Failure to Pay Child Support and Drug ChargeRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jay
Dandreo, 52, of Lynn, Massachusetts, was convicted yesterday after a two-day jury trial in U.S.
District Court in Portland of willfully failing to pay child support and possession with the intent
to manufacture or distribute marijuana.According to evidence introduced at trial, in May 2004, the Maine Department of Health
& Human Services (MDHHS) ordered Dandreo to pay for the support of his four minor children.
Between May 2004 and November 2013, Dandreo knowingly and intentionally failed to make
any child support payments, resulting in an unpaid obligation of about $70,000. In August 2012,
Maine Drug Enforcement Agency (MDEA) investigators searched property located in Limerick,
Maine owned by Dandreo’s father and seized marijuana plants growing at several locations on
the property, as well as drug distribution paraphernalia and several firearms.
Dandreo faces up to two years in prison and a $250,000 fine on the child support charge
and up to 5 years in prison and a $250,000 fine on the drug charge. He will be sentenced after
completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the U.S. Department of Health & Human Services,
Office of Inspector General; MDHHS, Office of Family Independence, Division of Support
Enforcement & Recovery; and MDEA.Manhattan U.S. Attorney Announces Charges Against Supplier of “Molly” That Resulted in A Death at Electric Zoo ConcertRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James J. Hunt, Acting Special Agent in Charge, Drug Enforcement Administration (“DEA”), New York Division, announced today that PATRICK MORGAN was arrested this morning in Buffalo, NY on narcotics distribution and narcotics conspiracy charges. MORGAN is expected to be presented later today in the Western District of New York before United States Magistrate Judge Hugh B. Scott.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Patrick Morgan sold drugs that, far from enabling a good time, resulted in tragedy with the death of Jeffrey Russ. It bears repeating that every time people use drugs like “Molly” they are rolling the dice with their own lives, which is a foolish and senseless wager.”
DEA Acting Special Agent-in-Charge James J. Hunt said: “Synthetic drugs such as ‘Molly’ are extremely dangerous and have grown increasingly more popular at events such as music festivals. Those who ingest it, even if for the very first time, are putting themselves at risk because they have no idea what they are putting into their bodies. DEA and our law enforcement partners will continue to investigate any and all drug trafficking organizations that place lives at risk by selling these dangerous substances.”
The following allegations are based on the Complaint unsealed in Manhattan federal court:
In early August 2013, PATRICK MORGAN sold pills commonly called “Molly,” which contained 4-methylenedioxymethaphetamine (MDMA) and 3,4-methylenedioxymethcathinone (methylone), to three individuals (the “Three Individuals”), including Jeffrey Russ, for their use at an electronic music concert in Buffalo, New York.
In mid-August 2013, the Three Individuals pooled their money in order to buy additional Molly pills from MORGAN. The Three Individuals intended to consume and distribute these Molly pills at the Electric Zoo music festival. Electric Zoo was a three-day, outdoor electronic music festival on Randall’s Island, New York, scheduled to be held from August 30, 2013 through September 1, 2013. Attendance at Electric Zoo was estimated to be over 130,000 people.
In mid-August 2013, MORGAN sold one of the Three Individuals approximately 80 Molly pills that MORGAN was told the Three Individuals intended to consume and distribute at Electric Zoo.
On August 30, 2013, the Three Individuals, including Jeffrey Russ, attended Electric Zoo and consumed some of the Molly pills that were purchased from MORGAN. Toward the end of the concert on August 30, 2013, Russ collapsed and had a seizure. Russ was treated by emergency medical technicians on Randall’s Island and ultimately taken to Harlem Hospital. When Russ arrived at Harlem Hospital, he was unresponsive. On August 31, 2013, at approximately 3:21 a.m., Russ died at Harlem Hospital from acute intoxication by the combined effect of MDMA and methylone with hyperthermia.
MORGAN, 23, of Buffalo, New York, is charged with one count of conspiring to distribute narcotics, and one count of distributing narcotics, each of which carries a maximum term of 20 years in prison.
Mr. Bharara praised the investigative work of the Drug Enforcement Administration.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorney Joshua A. Naftalis of the Narcotics Unit is in charge of the prosecution.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Patrick Morgan Complaint
Manhattan U.S. Attorney and FBI Assistant Director in Charge Announce Commodities Fraud and Related Charges Against Principals of Commodities Trading PoolRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), yesterday announced the unsealing of commodities fraud, securities fraud, wire fraud, and conspiracy charges against MICHAEL JAMES SEWARD, president of the now-defunct, unregistered commodities trading pool SK Madison Commodities, LLC (“SK Madison”). As alleged, SEWARD and his former business partner, YAN KAZIYEV, a/k/a “Ian Kaziyev,” convinced investors to part with approximately $1.3 million under false pretenses, and then pocketed approximately $700,000 of those funds for themselves. SEWARD is currently detained in Pinellas County, Florida on unrelated state felony charges.
Also unsealed yesterday were identical charges against KAZIYEV, as well as KAZIYEV’s June 25, 2014 guilty plea, pursuant to a cooperation agreement, to all counts, before the Honorable Paul A. Crotty.
Manhattan U.S. Attorney Preet Bharara said: “Yan Kaziyev and, as alleged, Michael Seward fraudulently convinced investors to put their money into an unregistered commodities trading pool, and then used that money for their personal gain. This case shows that investors should be aware of the potential for fraud in commodities trading pools, as they should be in any other securities investment.”
Assistant Director in Charge George Venizelos said: “Like we’ve seen time and time again, the defendants cooked up a scheme to defraud unwitting investors. Under the guise of a profitable commodity trading pool and an investment in a social media company, the defendants failed to do anything except steal from those who trusted them. Today the game is up. The defendants find themselves on the wrong side of the law and charged in Manhattan Federal Court.”
According to the allegations in the Indictment against SEWARD and the Information against KAZIYEV unsealed today:
From July 2011 through May 2013, SEWARD and KAZIYEV, through SK Madison, engaged in a scheme to defraud over 20 individuals by convincing them to invest approximately $1.3 million into the unregistered commodities pool they were operating. To lure investors, SEWARD and KAZIYEV made false representations about the success of their pool and, in some cases, about the very nature of the investments they were soliciting.
For example, from around July 2011 to around October 2011, SEWARD and KAZIYEV convinced two investors to pay approximately $330,000 to an entity called SK Madison Partners (“SKM Partners”), which these investors understood would be purchasing stock in an Internet social media company. SEWARD, KAZIYEV, and another individual took hefty “commissions” for themselves out of the funds and invested the remainder not in any Internet social media company but in the SK Madison commodities trading pool. From there, SEWARD and KAZIYEV withdrew yet more of funds for their own benefit.
To those investors who knew they were investing in SK Madison’s commodities pool, SEWARD and KAZIYEV lied about the success the pool had enjoyed. They mailed and emailed false “track record” reports reflecting purported trading profits in most months from August 2011 through dates in 2012 and 2013. These profit figures were fictitious, even for those months in which the SK Madison pool had turned a profit, the amount of profit bore no relationship to the figure reported in the “track record.” And the “track record” reports reflected trading profits in months in which the pool had in fact suffered significant trading losses. Similarly false profit figures were published to investors through monthly account statements.
In or about the spring and summer of 2013, when confronted by members of the National Futures Association (“NFA”) and the Commodity Futures Trading Commission (“CFTC”) with their large withdrawals from SK Madison’s trading and bank accounts for their own benefit, SEWARD and KAZIYEV sought to justify the withdrawals by citing “commissions” of either $55 or $110 per transaction that SK Madison purportedly had charged for operating the commodities pool. In fact, although SK Madison’s prospectus alerted investors that a $55 commission would be levied per completed transaction, the withdrawals that SEWARD and KAZIYEV made and caused to be made from the accounts bore no relationship to the number of trades effectuated in the accounts, and far exceeded what might have been calculated using the $55 commission figure.
SEWARD, 35, of Largo, Florida, and KAZIYEV, 36, of Queens, New York, are both charged with commodities fraud, securities fraud, wire fraud, and conspiracy to commit commodities, securities, and wire fraud. The conspiracy count carries a maximum sentence of five years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense. The securities fraud charge carries a maximum sentence of 20 years in prison and a fine of the greater of $5 million or twice the gross gain or loss from the offense. The commodities fraud charge carries a maximum sentence of 10 years in prison and a fine of the greater of the costs of the prosecution plus $1 million or twice the gross gain or loss from the offense. The wire fraud charge carries a maximum sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense.
Mr. Bharara praised the investigative work of the FBI and thanked the CFTC, which has filed civil charges in a separate action. Mr. Bharara also thanked the NFA for its assistance in this investigation.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Sarah E. McCallum is in charge of the prosecution.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
CFTC v. SK Madison Yan Kaziyev Information
CFTC v. SK Madison Michael Seward IndictmentMan from Dominican Republic Sentenced in White Plains Federal Court for Identity Theft and Failure to Register as A Sex OffenderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RAFAEL CEPEDA, a man originally from the Dominican Republic, was sentenced yesterday in White Plains federal court to 42 months in prison for making false claims of United States citizenship, failing to register as a sex offender, and aggravated identity theft. CEPEDA was also ordered to be removed from the United States. CEPEDA pled guilty on March 18, 2014. He was sentenced by U.S. District Judge Cathy Seibel.
According to documents filed in this case and statements made in court:
For over 20 years, CEPEDA lived under an illegally assumed identity as a person who was a U.S citizen, when in fact CEPEDA was never a U.S. citizen. CEPEDA even served multiple prison sentences under the assumed identity. Among CEPEDA’s past crimes was a 2008 conviction in New York for Attempted Course of Sexual Conduct Against a Child, for which he was sentenced to two-to-four years in prison. As a result of this conviction, CEPEDA was required to register as a sex offender for life. Nevertheless, in 2013, CEPEDA moved from the State of New York to Hartford, Connecticut, and failed to register as a sex offender in Connecticut.
Also, in 2010, CEPEDA applied for a U.S. passport using the assumed identity of a true U.S. citizen, as well as a birth certificate and New York State ID card.
In addition to the prison term, CEPEDA, 52, of Hartford, Connecticut, was also sentenced to five years of supervised release, and was ordered to be removed from the United States upon completion of his sentence.
Mr. Bharara praised the investigative work of the U.S. Immigration and Customs Enforcement’s (“ICE”) Enforcement and Removal Operations (“ERO”), the U.S. Department of State, Bureau of Diplomatic Security, and the U.S. Marshals Service.
The case is being handled by the Office’s White Plains Unit. Assistant United States Attorney Daniel P. Filor is in charge of the prosecution.
Man Charged with Las Vegas Casino RobberyRead the Press Release
LAS VEGAS, Nev. – Federal charges have been filed against a man for robbing a Las Vegas bank on July 22 and a Las Vegas casino cashier’s cage on July 25, 2014, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
John Doe, also identified as Scott Carmitchel, is charged in a criminal complaint with one count of armed bank robbery and one count of interference with commerce by robbery, and is scheduled for an initial appearance at 3:00 p.m. on Thursday, July 31, 2014, before U.S. Magistrate Judge Peggy A. Leen.According to the complaint, at about 8:55 a.m. on July 22, 2014, the defendant allegedly entered a bank on E. Tropicana Boulevard and used a gun with an orange tip to rob a teller. Three days later, on July 25, 2014, at about 8:15 p.m., the defendant allegedly approached the main cashier cage at the casino and used a gun with an orange tip to rob a teller. An investigation led to the apprehension of the defendant on July 27, 2014, in a room at another casino in Las Vegas. Law enforcement investigators recovered a large amount of money and a 6mm BB gun with an orange tip from the hotel room.
The case is being investigated by the FBI and Las Vegas Metropolitan Police Department, and is being prosecuted by Assistant United States Attorney Robert A. Knief.
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.Loan Officer Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
KNOXVILLE, Tenn. – On July 29, 2014, Paulynn Wright, 42, of Knoxville, Tenn., pleaded guilty in U.S. District Court for the Eastern District of Tennessee at Knoxville, to conspiracy to commit wire fraud. Sentencing has been set for 2:00 p.m., on Dec. 3, 2014, before the Honorable Thomas A. Varlan, Chief U.S. District Judge.
Wright faces a potential term of up to 20 years in prison, along with the forfeiture of any proceeds of the offense and the obligation to pay restitution.
In a plea agreement on file with the U.S. District Court, Wright admitted to conspiring with co-defendants Joyce Allen, Kay Thomas and Dona Rector to obtain a mortgage loan by providing false information to a lender. This information consisted of an asset verification letter from Allen that falsely stated that Wright had an investment with Benchmark Capital.
The indictment against Wright was the result of an investigation by the Internal Revenue Service, U.S. Postal Inspection Service, and Federal Bureau of Investigation. Assistant United States Attorney Frank M. Dale, Jr. represents the United States.
Lingerie Business Owner Sentenced to Federal Prison for BriberyRead the Press Release
ATLANTA – Jae Jun Bae has been sentenced to one year and one day in prison for offering bribes to Doraville employees in exchange for a zoning modification.
“Bae tried to buy his way around zoning restrictions by offering bribes to Doraville employees,” said United States Attorney Sally Quillian Yates. “As anticipated, those employees reported Bae’s conduct and assisted law enforcement authorities to bring him to justice. Bae opened his wallet looking to circumvent the law. What he found was a felony conviction and a prison cell.”
“Doraville Police Department is dedicated to ensuring the integrity of the city government,” said Doraville Police Chief John King. “Our message is don't bring your corruption or bribery attempts to Doraville or you will face prosecution. We would like to thank the U.S. Attorney's office and the FBI for helping us maintain this integrity and ensuring the proper sentence for Mr. Bae.”
According to United States Attorney Yates, the charges, and other information presented in court: Bae is the owner of Moon Lingerie, a lingerie business located in Doraville, Ga. In April 2012, Bae bought a commercial building located on Buford Highway in Doraville, Ga. At the time of the purchase, the property was zoned for retail use and could not be used as a wholesale location as Bae wanted. In August 2012, Bae met with an employee of the City of Doraville and attempted to give the employee an envelope of cash, in an effort to have the Buford Highway property re-zoned. The employee did not take the envelope and reported Bae’s attempt to local law enforcement authorities.
In October 2013, Bae asked to meet with a member of Doraville’s Community Development Department. Based on the allegations from August 2012, the staff member (SM) reported Bae’s request for a meeting to law enforcement authorities and agreed to cooperate with them. Thereafter, the FBI and the Doraville Police Department conducted a series of undercover operations involving Bae. In particular, on October 17, 2013, Bae met with the SM and an undercover officer (UC), who was posing as a member of Doraville’s Community Development Department. During the meeting, Bae agreed to pay approximately $100,000 to have the Buford Highway property re-zoned to permit wholesale uses. On October 18, 2013, Bae met with the UC and re-negotiated the price to obtain a wholesale re-zoning from $100,000 down to $70,000. On October 29, 2013, Bae made a $5,000 payment to the SM as a deposit to get the Buford Highway property re-zoned. On the next day, Bae gave the UC a $3,000 payment, which the UC said would secure a vote in favor of Bae’s re-zoning application. On November 14, 2013, the FBI arrested Bae.
On April 3, 2014, Bae, 35, of Duluth, Ga., pleaded guilty to one count of honest services wire fraud. He was sentenced to one year and one day in prison to be followed by three years of supervised release, ordered to pay a $1,000 fine, and to serve 200 hours of community service.
This case was investigated by the Federal Bureau of Investigation and the Doraville Police Department.
Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Erin Sanders prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Lincoln Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
On July 28, 2014, an Indictment was unsealed charging Jason Michael Leatherwood, 41, of Lincoln, with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine between about October of 2012 and January of 2014. The possible penalty is not less than 10 years, nor more than life imprisonment, a fine of up to $10,000,000, and a term of supervised release following any prison sentence of at least five years.
Leatherwood had an initial appearance in federal court in Lincoln on July 29, 2014. Trial was scheduled to begin on September 30, 2014, and Leatherwood was released on conditions.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lee's Summit Soccer Coach pleads Guilty to Attempting to Produce Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. B Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Lee’s Summit, Mo., youth soccer coach pleaded guilty in federal court today to attempting to produce child pornography by secretly videotaping members of his soccer team.
Joel D. White, 40, of Lee’s Summit, pleaded guilty before U.S. District Judge Dean Whipple to three counts of attempting to produce child pornography.
White, who coached a girls under-12 soccer team and a girls under-15 soccer team through the Lee’s Summit Soccer Association, remains in federal custody. The Lee’s Summit Soccer Association has cooperated fully with law enforcement officers during this investigation.
White admitted that he videotaped 11 child victims without their consent while they were changing clothes in his daughter’s bedroom at his residence. White videotaped the child victims 10 to 15 times without their consent from approximately May 2012 until October 2012, when the victims were between 11 and 12 years of age. White also admitted that he touched one of the child victims on the breast with his hand and mouth while she was sleeping at his residence, and that he recorded this touching.
White is clearly identified in the videos setting up the camera and recovering the camera after the child victims leave the room. In one video, as White recovers the camera, he looks into the camera and gives himself two “thumbs up.”
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
The investigation began when White was arrested for stealing in Commerce City, Colo. In March 2013 the soccer stadium in Commerce City was hosting a world cup qualifying game. Colorado authorities contacted White at the stadium when he was accused of stealing soccer-related items and merchandise from the stadium. Officers searched White as well as his backpack, camera, vehicle and hotel room. Officers located stolen items in White’s possession and in his hotel room and White was arrested for felony stealing. White’s cameras, computer and computer media were recovered during the course of the stealing investigation.
Detectives wanted to investigate the possibility that White was placing advertisements on sites such as “Craigslist” to sell the stolen items. They began reviewing the cameras and computer media and observed a video of a minor female changing clothes in what appeared to be White’s Lee’s Summit residence. Commerce City police officials then contacted the Lee’s Summit, Mo., Police Department to take the lead on the child pornography investigation.
Under federal statutes, White is subject to a mandatory minimum sentence of 15 years in federal prison without parole on each of the three counts of conviction, up to a sentence of 30 years in federal prison without parole on each of the three counts, plus a fine up to $250,000 on each count and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Lee’s Summit, Mo., Police Department and the Commerce City, Colo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Justice Department Seeks to Shut Down Detroit Area Tax Return PreparersRead the Press Release
The Justice Department announced today that it has asked a federal court in Detroit to permanently bar Brandon Lee and Tamika Lee, a husband and wife who do business as Quick Money Tax & Loan Center, from preparing federal tax returns. The civil injunction suit alleges that the Lees falsify income on customers’ tax returns in order to claim false and inflated earned income tax credits (EITC).
The EITC is a refundable credit available to people who work and earn less than $51,567 per year. The maximum credit in 2010 was $5,666. Due to the method used to calculate the EITC, some people are entitled to a larger credit with a higher annual income. Some tax preparers refer to the range of earned income generating a maximum EITC as the “sweet spot.” According to the complaint, the Lees reported fabricated “Household Help” income and reported fake business income and expenses on their customers’ tax returns to report income in the EITC sweet spot on some returns they prepared. The complaint alleges that 99 percent of the returns identified by the Internal Revenue Service (IRS) as having been prepared by the Lees and their business in 2010 and 2011 claimed a refund, which is an extremely high rate.
The complaint also alleges that the Lees prepare returns for customers that falsely claim education credits, even though the customers did not attend school or have qualifying education-related expenses, and were thus ineligible for the credit.
Return preparer fraud is one of the IRS's 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.
Related Materials:
United States v. Brandon T. Lee, et al.
Complaint for Permanent Injunction and Other ReliefJustice Department Requires Divestiture in Landmark Aviation's Acquisition of Ross AviationRead the Press Release
The Department of Justice announced today that it will require Landmark Aviation to divest fixed base operator assets (FBOs) used to provide flight support services to general aviation customers at Scottsdale Municipal Airport, in Arizona, in order to proceed with its $330 million acquisition of Ross Aviation. The department said that without the required divestiture, the transaction would have combined the only two FBOs serving general aviation customers at Scottsdale Municipal Airport, resulting in higher prices and lower quality of services.
The Justice Department's Antitrust Division filed a civil lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns alleged in the lawsuit.
“Today’s proposed settlement will help ensure that FBO general aviation customers at Scottsdale Municipal Airport will continue to receive the benefits of vigorous competition,” said Bill Baer, Assistant Attorney General in charge of the Antitrust Division. “Without the divestiture secured by the Antitrust Division, the proposed acquisition would have eliminated competitive constraints at the Scottsdale airport and likely would have resulted in higher prices for consumers.”
FBOs provide fuel and related support services to general aviation customers, which include charter, private and corporate aircraft operators. Landmark and Ross are the only two providers of FBO services at Scottsdale Municipal Airport. The proposed transaction would have resulted in a monopoly for FBO services at Scottsdale Municipal Airport, and that loss of competition likely would have resulted in higher prices and a lower quality of services.
Under the terms of the proposed settlement, Landmark must divest Ross’s FBO assets at Scottsdale Municipal Airport to either Signature Flight Support Corp. or another buyer approved by the Antitrust Division.
LM U.S. Corp Acquisition Inc. (doing business as Landmark Aviation), a Delaware corporation with its headquarters in Houston, is owned by The Carlyle Group. Landmark Aviation operates more than 40 FBO facilities in the United States, including its FBO operations at Scottsdale Municipal Airport.
Ross, a Delaware corporation with its headquarters in Denver, is a subsidiary of Genossenschaft Constanter, a Swiss company. Ross owns and operates 19 FBO facilities in the United States, including its FBO operations at Scottsdale Municipal Airport.As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to William H. Stallings, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed final judgment upon finding that it is in the public interest.
Justice Department Files Statement of Interest in Ohio Voting Rights CaseRead the Press Release
Attorney General Eric Holder announced today that the Justice Department has submitted filings in voting rights cases in Wisconsin and Ohio. The department’s involvement in these two cases represents its latest steps to enforce the remaining parts of the Voting Rights Act against restrictive state laws, following up on the department’s lawsuits last year against similar measures in Texas and North Carolina.
In the Wisconsin case, the department filed an amicus brief in Frank v. Walker and LULAC v. Deininger, supporting an earlier ruling by the U.S. District Court for the Eastern District of Wisconsin that struck down Wisconsin’s strict photo voter identification requirement due to its effects on minority voters under Section 2 of the Voting Rights Act , and because it unduly burdens a substantial number of voters in violation of the Fourteenth Amendment. In the Ohio case, the department filed a statement of interest in NAACP v. Husted, a challenge by a civil rights group to a state law curtailing early voting and same day registration. The department’s brief contests the state of Ohio’s incorrect interpretation of the standards set forth by Section 2 of the Voting Rights Act.
“These filings are necessary to confront the pernicious measures in Wisconsin and Ohio that would impose significant barriers to the most basic right of our democracy,” said Attorney General Eric Holder. “These two states’ voting laws represent the latest, misguided attempts to fix a system that isn’t broken. These restrictive state laws threaten access to the ballot box. The Justice Department will never shrink from our responsibility to protect the voting rights of every eligible American. And we will keep using every available tool at our disposal to guard against all forms of discrimination, to prevent voter disenfranchisement, and to secure the rights of every citizen.”
In the amicus brief filed today in the U.S. Court of Appeals for the Seventh Circuit, the department argues that the district court reached the correct decision by finding that Wisconsin’s voter ID law, known as Act 23, violated the Fourteenth Amendment, because it imposes unjustified burdens on a significant number of voters, and violated Section 2 of the Voting Rights Act, because it has a discriminatory result on African-American and Hispanic voters. In addition to finding that Act 23 would result in minority voters having less opportunity to participate in the political process relative to other members of the electorate, the court found that the state’s claimed interests in combating voter fraud and promoting electoral confidence did not justify the significant burdens Act 23 imposes on substantial numbers of voters who lack a qualifying ID.In the statement of interest filed today in U.S. District Court for the Southern District of Ohio, the department makes clear that Section 2 prohibits the state of Ohio from imposing any voting qualification, prerequisite to voting, or any standard, practice or procedure that would result in the denial or abridgement of the right to vote on account of a person’s race, color or membership in a language minority group. The filing also makes clear that in its own filings in the case the state of Ohio has incorrectly interpreted its requirements under Section 2. The department did not take a position on any of the other claims in the case.
“The United States Department of Justice today affirms its clear position that, under Wisconsin’s Act 23, minority voters have less opportunity to participate in the political process,” said James L. Santelle, United States Attorney for the Eastern District of Wisconsin. “The amicus brief that we are filing not only supports the trial court’s findings but also reflects the department’s continuing focus on ensuring that the franchise remains fully available to all qualified voters.”
“Wisconsin's proud history is one of expanding the opportunity to vote,” said John W. Vaudreuil, United States Attorney for the Western District of Wisconsin. “I'm honored to file this brief with the United States Department of Justice seeking to ensure that this great Wisconsin tradition is reaffirmed, and that every Wisconsin citizen has an equal opportunity to participate in democracy.”
“This office remains committed to preserving the rights of every Ohio voter,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “Making sure that courts continue to carefully examine voting restrictions, such as the ones recently imposed in this state, is an important part of that effort.”
In the year since the Supreme Court struck down the coverage formula that determined which jurisdictions were subject to preclearance underthe Voting Rights Act in Shelby v. Holder, Section 2 of the Voting Rights Act remains one of the department’s most powerful tools to protect voting rights. Last year the department used Section 2 to file two lawsuits against the state of Texas to stop the newly enacted discriminatory voter ID law and and to obtain a ruling that the state engaged in intentional discrimination in adopting its 2011 redistricting plans. In North Carolina, the department used Section 2 to sue to stop a number of provisions in an election law that imposes strict voter ID requirements, restricts early voting, eliminates same-day registration and refuses to count otherwise valid provisional ballots cast in the wrong precinct. The suit alleges that the challenged law was motivated by a racially discriminatory purpose and will result in African-American voters having less opportunity than other citizens to participate in the political process. All three cases are ongoing.
Jorge Gomez-Gonzalez, Aka “Cara De Truck” Sentenced to 30 Years in PrisonRead the Press Release
SAN JUAN, PR – Jorge Gómez-Gonzàlez, aka “Cara de Truck”, was sentenced to 30 years in prison by United States Senior District Court Judge Daniel Domínguez. Gómez-Gonzàlez was found guilty after a six-week long jury trial for conspiracy to possess with intent to distribute and to import controlled substances at La Perla Ward and other areas in Puerto Rico, announced United States Attorney Rosa Emilia Rodríguez-Vélez. While the Advisory Guidelines recommended a sentence of life imprisonment, the prosecutor did not request a life sentence, and the judge felt that the interests of justice were best met with a sentence of 30 years.
The object of the conspiracy was to distribute and supply controlled substances within La Perla Ward, and to supply heroin to numerous Public Housing Projects, municipalities and towns located within Puerto Rico for significant financial gain. The defendants and their co-conspirators would purchase wholesale quantities of heroin, cocaine, marijuana, Xanax and Percocet in order to distribute the same in street quantity amounts at their drug distribution points. The leaders would routinely give out “samples” of new batches of heroin or cocaine to users in order to test the “quality” of the drug and promote the sale of the product.
“The U.S. Attorney’s Office will continue working along with other law enforcement agencies to prosecute criminals who deprive our communities of a peaceful and safe environment,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend our prosecutors and investigative agencies who have demonstrated, once again, that our efforts continue to provide positive results to the community.”
This case is part of the Organized Crime Drug Enforcement Task Force (OCEDTF). The case was investigated by DEA, ICE, ATF and PRPD, and prosecuted by Assistant United States Attorneys George Massucco and Elba Gorbea.Jamaican Man Sentenced for Witness TamperingRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Junior Nathanial Ricketts, a native of Jamaica, who was convicted of tampering with a witness in order to prevent the witness from testifying against him at trial, was sentenced to time served (three years, 11 months) by Chief U.S. District Judge William M. Skretny.
“As has been said many times before, law enforcement does not tolerate any attempt to subvert the criminal justice system,” said U.S. Attorney Hochul.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that in July 2010, Ricketts, who was facing trial on other federal charges, sent a letter to a witness who was scheduled to testify at his trial. In the letter, the defendant accused the witness of lying about the witness’ identity. Ricketts also threatened that if the witness testified against him in court, the defendant would make sure the witness and the witness’ family went to jail.
The sentencing is the culmination of an investigation on the part of Officers with Immigration and Customs Enforcement, Office of Enforcement and Removal Operations under the direction of Field Office Director Michael T. Phillips.Interlachen Man Sentenced to More Than 7 Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan yesterday sentenced Franklin Stuart King (40, Interlachen) to 7 years and 6 months in federal prison for receiving child pornography over the Internet. He was also ordered to serve a life term of supervision and register as a sex offender upon his release from prison. King has been in the custody of the U.S. Marshals Service since his arrest on October 10, 2013.
According to court documents, an agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Jacksonville began an investigation to identify individuals in that area that had access to and/or were trading images and videos depicting child pornography over the Internet. Using specialized software, the agent determined that a host computer using an Internet Protocol (IP) address in Putnam County was hosting images of child pornography using a file-sharing program. The agent made a successful connection to this host computer over the Internet and downloaded several images that depicted child pornography.
Further investigation revealed that the subscriber information traced back to King’s residence in Interlachen. Subsequently, HSI agents and other officers executed a federal search warrant at King’s residence. Agents seized, among other things, King’s computer and other items of electronic media. A forensic analysis of King's computer media revealed that it contained a total of 808 images that featured the sexual abuse of minor children.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff’s Office, the Putnam County Sheriff’s Office, the Bradford County Sheriff’s Office, and the United States Marshals Service. It was prosecuted by Assistant United States Attorney D. Rodney Brown. It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Immigration Attorney Sentenced for Bribing an Immigration OfficialRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced attorney Kiran Dewan, age 60, of Woodbine, Maryland today to two years in prison, followed by three years of supervised release, for bribing a public official. Judge Quarles also ordered Dewan to forfeit $50,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.Dewan operated the Law Offices of Dewan and Associates, P.C., located at 7100 Security Boulevard in Windsor Mill, Maryland. He held himself out as having experience handling immigration matters and as a certified public accountant.
According to his plea agreement and court documents, from March 2011 to May 2013, Dewan conspired with clients, including Mohammad Khan, Narayan Thapa and Amjad Israr, to bribe an immigration official to provide immigration documents and benefits which would permit the clients to legally live and work in the United States. Unknown to Dewan and the clients, the immigration contact was actually an undercover agent posing as a public official. Dewan’s clients paid $170,000 in cash to Dewan to bribe the “public official,” of which Dewan kept $50,000. In return for the bribes, the purported public official provided green cards for the clients.
Additionally, in March 2011, Dewan offered to pay the purported public official $5,000 to have a foreign national removed from the United States. Dewan believed that the foreign national was going to start his own accounting business and compete with Dewan. The purported public official pretended to issue the notice to appear before an immigration judge, although in reality the USCIS had already decided to issue this notice independently. Dewan paid the $5,000 bribe in May 2011.
In the fall of 2011, Dewan offered to pay the purported public official another $5,000 to remove and add documents to the foreign national’s USCIS files. Dewan explained that he had previously submitted false tax returns to USCIS in support of the foreign national’s employment visa application and wanted those false tax returns replaced with new tax returns. In November, the purported public official pretended to provide the requested tax returns and Dewan subsequently paid the additional $5,000 bribe.
In 2012, Dewan spoke extensively about his knowledge of establishing an overseas hawala to transfer the purported public official’s alleged bribery profits. A hawala allows an individual to transfer money overseas using personal connections, without the money going through traditional government monitored means like money transfer services or banks. Dewan stated that he had previously used this hawala method for other clients, including a $400,000 transfer via a reverse hawala method.
Mohammad Khan, age 59, a citizen of Pakistan living in Baltimore who operated Pizza City in Brooklyn Park, Maryland, previously pleaded guilty to immigration fraud and was sentenced to a year and a day in prison.
Amjad Israr, age 47, a Pakistani citizen living in Cheshire, Connecticut, who operated many convenience stores in Connecticut, previously pleaded guilty to conspiring to bribe an immigration official in order to obtain lawful permanent residence (green card) and employment authorization documents. Judge Quarles sentenced Israr to 15 months in prison. Narayan Thapa, age 52, a citizen of Nepal residing in Baltimore, also pleaded guilty to his role in the conspiracy and awaits sentencing.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department and USCIS Baltimore District Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Gregory R. Bockin, who prosecuted the case.
Idaho Resident Pleads Guilty to Social Security TheftRead the Press Release
BOISE - Melinda Sue Priddy, 43, of New Meadows, Idaho, pleaded guilty today to theft of $138,910.00 from the Social Security Administration, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Priddy’s grandmother died in May 2004. At the time of her death, Priddy’s grandmother was receiving survivor benefits from the Social Security Administration, which were being deposited on a monthly basis into a bank account held jointly with Priddy. No one notified Social Security of the death, and the Social Security Administration continued to make monthly deposits into the account. Priddy, who was not entitled to receive any of her deceased grandmother’s Social Security benefits, withdrew those funds from the account from July of 2004 through May of 2013 for her own personal use, stealing a total of $138,910.00 from the Social Security Administration.
The charge carries a maximum punishment of up to 10 years in prison, a fine up to $250,000, and a minimum term of three years of supervised release.
Sentencing is scheduled for October 20, 2014, before Chief U.S. District Judge B. Lynn Winmill in Boise.
The case was investigated by the Office of Inspector General for the Social Security Administration.
IceoPlex Owner Charged with Tax ViolationsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of tax violations, United States Attorney David J. Hickton announced today.
The 11-count indictment, returned on July 29, named Steven J Lynch, 59, as the sole defendant.
According to the indictment, between 2004-2011, Lynch impeded collection of payroll taxes under the Internal Revenue Code in connection with the operation of the IceoPlex at Southpointe, located in Canonsburg, Washington County. The indictment alleges that payroll taxes were underpaid by various business entities controlled by Lynch in the total amount of approximately $1 million during the years 2008-2010.
The law provides for a maximum total sentence of 53 years in prison, a fine of $2,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James Y. Garrett is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, Special Agent Paul Bauer conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Husband and Wife Arrested on Federal Fraud ChargesRead the Press Release
GREENSBORO, N.C. – Sandy and Casey Parsons were arrested today on a federal criminal indictment charging them with fraud, announced Ripley Rand, United States Attorney for the Middle District of North Carolina. The 76-count criminal indictment was unsealed today following the couple’s arrest by FBI and IRS-CI agents in Fayetteville, N.C.
The indictment alleges that, from February 2010 to August 2013, Sandy Parsons, 40, and Casey Parsons, 39, committed tax fraud, mail fraud, theft of government funds, and identity theft, and engaged in a conspiracy to defraud the government. The indictment alleges that the Parsons received government funded adoption assistance, Medicaid, Social Security, and Food and Nutrition Services benefits for a dependent that did not live with them and used the mail to commit the fraud. The indictment also alleges that Casey Parsons fraudulently used the identities of other persons as dependents and used other false information when preparing federal tax returns.
Sandy and Casey Parsons are charged with one count of conspiracy to defraud the government, which carries a maximum sentence of five years in prison and a $250,000 fine; twenty counts of theft of government funds, each of which carries a maximum sentence of five years in prison and a $250,000 fine; and twenty counts of mail fraud, each of which carries a maximum sentence of twenty years in prison and a $250,000 fine.
The indictment also charges Sandy Parsons with one count of aggravated identity theft, which carries a mandatory sentence of two years, consecutive to any other sentence, and a $250,000 fine; and one count of false statement to a government agency, which carries a maximum sentence of two years in prison and a $250,000 fine.
Casey Parsons is also charged with one count of false pretense in a health care matter, which carries a maximum sentence of five years in prison and a $250,000 fine; two counts of Social Security fraud, each of which carries a maximum sentence of five years in prison and a $250,000 fine; fifteen counts of aggravated identity theft, each of which carries a mandatory sentence of two years, consecutive to any other sentence, and a $250,000 fine; two counts of false statement to a government agency, each of which carries a maximum sentence of five years in prison and a $250,000 fine; six counts of aiding in the preparation of a false tax return, each of which carries a maximum sentence of three years in prison and a $250,000 fine; six counts of 2 wire fraud, each of which carries a maximum sentence of twenty years in prison and a $250,000 fine; and one count of making false claim against the government, which carries a maximum sentence of five years in prison and a $250,000 fine.
Sandy and Casey Parsons are scheduled to have their initial appearance at 2:30 p.m. today in U.S. District Court in Winston-Salem.
The case was investigated by the Rowan County Sheriff’s Office, the Federal Bureau of Investigation, and Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Anand Ramaswamy.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Houston Man Guilty of Beaumont Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher M. Carmon Thomas pleaded guilty to bank robbery on July 29, 2014 before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, on June 3, 2014, Thomas entered the Wells Fargo Bank on Gladys Avenue in Beaumont, Texas and presented the bank teller with a demand note. During the robbery, Thomas displayed a gun tucked into his pants by lifting his shirt. Thomas fled the bank with $2,309.00. Surveillance camera photographs were disseminated by the media and Thomas was identified by citizen tipsters and the victim bank teller. Thomas was taken into custody in Houston on June 25, 2014.
Thomas faces up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John Craft.
###Harrisburg Woman Sentenced to Prison for Making False Claims to the IRSRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that Stephanie A. Metz, age 25, of Harrisburg, Pennsylvania, was sentenced to serve a year in prison and pay $57,216.22 to the IRS for her role in a conspiracy to submit 33 fraudulent income tax returns to the IRS requesting $242,095 in fraudulent tax refunds for the years 2010 and 2011. U.S. District Court Judge Yvette Kane ordered that Metz surrender to the Bureau of Prisons on August 25, 2014 to commence serving her sentence.
According to U.S. Attorney Peter Smith, Metz provided a co-conspirator with addresses where the fraudulent income tax refund checks could be delivered by mail and was paid a fee for each refund check she delivered to her co-conspirator. For the tax years 2010 and 2011, Metz provided addresses for 33 fraudulent income tax returns requesting $242,095 in fraudulent tax refunds. The IRS paid out $57,216 to the co-conspirator before the scheme was detected in early 2012.
The investigation is part of a project known as Operation Mass Mail involving the filing of hundreds of thousands of false returns using stolen identity information of residents of Puerto Rico. The investigation was conducted by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler.
****Grand Prairie, Texas Man Sentenced for Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 44-year-old Grand Prairie, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Daniel Martinez pleaded guilty on Jan. 28, 2014 to conspiracy to distribute narcotics and was sentenced to 87 months in federal prison on july 28, 2014 by U.S. District Judge Marcia Crone.
According to information presented in court, in May 2010, Martinez became involved in a conspiracy to distribute marijuana and cocaine in the Eastern District of Texas. Martinez used cellular telephones to conduct coded conversations about drug trafficking activity with various co-conspirators. Martinez admitted responsibility for distributing approximately 900 kilograms of marijuana.
On May 12, 2011, a federal grand jury returned a seven-count second superseding indictment against Martinez and 15 co-defendants, charging them with numerous federal drug trafficking conspiracy and firearm violations.
Twelve co-defendants have pleaded guilty and been sentenced as follows:
- Armando Basaldua – sentenced to 57 months
- Paola Alonso – sentenced to 21 months
- Armando Iniguez – sentenced to 6 months
- Guadalupe Patricia Rangel-Salazar – sentenced to 71 months
- Jorge Enrique Perez-Solis – sentenced to 71 months
- Diego Hernandez – sentenced to 57 months
- Daniel Hernandez-Gutierrez – sentenced to 69 months
- Jose Frederico Flores – sentenced to 262 months
- Orthon Carranza Rodriguez – sentenced to 30 months
- Jonathan Belen Lugo – sentenced to 24 months
- Juan Antonio Roslaes – sentenced to 60 months
- Oscar Omar Guerra-Moreno – sentenced to 6 months
- Guadalupe Chavez-Figueroa – sentenced to 60 months
Two additional defendants, Eliezer Aleman and Luis Enrique Arguero, are currently fugitives from justice.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation and Homeland Security Investigations.
Georgia Man Sentenced to Prison for Counterfeit Check Cashing SchemeRead the Press Release
PITTSBURGH - A Georgia resident has been sentenced in federal court to 27 months incarceration and three years supervised release on his conviction of conspiracy to make and utter counterfeit securities, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Brandon Roseberry, 24, of Snellville.
According to the information presented to the court, Roseberry conspired with others to recruit persons to negotiate counterfeit checks at banks in Western Pennsylvania in October 2011, causing losses of nearly $130,000 to local banks.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Roseberry. The WPFCTF was established as a collaborative, multi agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Four Farmer's Co-op Employees Indicted for Falsifying Harvest Load WeightsRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted four employees of a north Alabama farmer's cooperative for making false statements to the U.S. Department of Agriculture, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell and U.S. Department of Agriculture, Office of Inspector General-Investigations, Special Agent in Charge Karen Wilcox-Citizen.
In separate indictments filed in U.S. District Court, the grand jury charged AARON BLAKE WILLIAMS, 25, and TYLER THOMAS GLAZE, 26, both of Decatur, JAMES EDWARD TOON JR., 35, of Elkmont, and JOSHUA WAYNE HOLT, 32, of Hartselle, with falsifying certifications of harvest load weights from August 2009 to March 2013 at the Alabama Farmer's Cooperative in Decatur.
The maximum penalty for making false statements to the government is five years in prison and a $250,000 fine.
The Secret Service and USDA, OIG, investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Former Police Officer Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDREW W. NIELSEN, 50, of South Windsor, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 24 months of imprisonment, followed by five years of supervised release, for possessing child pornography.
According to court documents and statements made in court, between November 2010 and April 2011, NIELSEN purchased several DVDs containing child pornography from a foreign company and had them shipped to his residence. NIELSEN was arrested on November 1, 2012. On that date, law enforcement searched NIELSEN’s residence and seized several of the DVDs that he had ordered.
NIELSEN was a police officer with the East Hartford Police Department at the time of the offense. He resigned from the department after his arrest.
On March 25, 2014, NIELSEN pleaded guilty to one count of possession of child pornography.
NIELSEN, who has been released on bond under electronic monitoring by the U.S. Probation Office since November 2012, was ordered to report to prison on September 8, 2014.
This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Neeraj N. Patel and Special Assistant U.S. Attorney Charles Rombeau.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Midwestern Intermediate IU4 Official Pleads GuiltyRead the Press Release
PITTSBURGH - A resident of Grove City, Pennsylvania, pleaded guilty in federal court to a charge of theft concerning a program receiving federal funds, United States Attorney David J. Hickton announced today.
Cecelia H. Yauger, age 56, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around January 2012, to in and around December 2012, Yauger, being an agent of the Midwestern Intermediate Unit IV (“IU4”), did knowingly steal property worth at least $5,000, which was owned by and under the custody and control of IU4.
Judge Conti scheduled sentencing for Nov. 14, 2014 at 3 p.m. The law provides for a total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, and the United States Department of Education, Office of Inspector General conducted the investigation that led to the prosecution of Cecelia H. Yauger.
Former Letter Carrier Sentenced for Illegally Destroying MailRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Daniel Brautlacht, 20, of Cheektowaga, N.Y., who was convicted of delay or destruction of mail, was sentenced to time served by Chief U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney, Russell T. Ippolito, Jr., who handled the case, stated that the defendant started working for the United States Postal Service (“USPS”) as a city carrier assistant on March 9, 2013. In this position, Brautlacht was responsible for delivering letters, postal cards, packages, bags or mail on behalf of the USPS.
The sentencing is the culmination of an investigation on the part of the U.S. Postal Service, Office of Inspector General, Eastern Area Field Office, under the direction of Special Agent in Charge Monica Weyler.
On March 21, 2013, while delivering mail on Davey Street in the City of Buffalo, the defendant unlawfully secreted and destroyed 31 pieces of mail, including nine pieces of First Class mail. A neighbor on Brautlacht’s route observed the defendant discard the mail into a garbage receptacle. According to admissions made by Brautlacht, the mail had become jumbled and disorganized. Rather than re-ordering the mail, the defendant discarded it. Brautlacht committed these acts less than two weeks after starting work at the USPS.Former Employee of a U.S. Construction Company Working in Afghanistan Pleads Guilty to Receiving Illegal KickbackRead the Press Release
A former project manager of a U.S. construction company working on U.S. government contracts in Afghanistan who solicited a $60,000 kickback from an Afghan subcontractor pleaded guilty today in federal court in Tucson, Arizona.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John S. Leonardo of the District of Arizona made the announcement.Robert L. Bertolini, 67, of Arivaca, Arizona, pleaded guilty to one count of conspiracy to commit wire fraud and receive an illegal kickback. He is scheduled to be sentenced on Oct. 8, 2014.
According to court documents, Bertolini worked for a construction company that received a U.S. Army Corps of Engineers contract to build a forward operating base for the Afghan National Army in Kabul Province, Afghanistan. The company for which Bertolini worked entered into a subcontract with an Afghan construction company. Shortly after the subcontract was awarded in the spring of 2011, Bertolini solicited personal financial benefits from the subcontractor, including a $60,000 kickback and employment for his son. On May 11, 2011, the subcontractor’s vice president wired approximately $59,975 from Afghanistan to Bertolini’s son’s bank account in Ohio. In return, Bertolini approved two modifications on the subcontract – for which Bertolini did not have actual approval from his company – that were worth $980,000 and $680,000 respectively.
This case is being investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, the Defense Criminal Investigative Service and the U.S. Army Criminal Investigation Command Major Procurement Fraud Unit. This case is being prosecuted by Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Zipps of the District of Arizona.Former Director of Pop Warner Sentenced to 27 Months in Prison for Stealing Hundreds of Thousands of Dollars from the OrganizationRead the Press Release
TRENTON, N.J. – The former regional director of the Eastern Region of Pop Warner Little Scholars Inc. (Pop Warner) was sentenced today to 27 months in prison for stealing hundreds of thousands of dollars from the organization and using the funds for his personal benefit, U.S. Attorney Paul J. Fishman announced.
David Marshall, 58, of Jackson, New Jersey, previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with one count of wire fraud. Judge Pisano imposed the sentence today in Trenton federal court.
According the documents filed in this case and statements made in court:
Between 2005 and 2011, Marshall performed work for Pop Warner on a voluntary basis and held various positions. From 2006 through 2011, Marshall was the regional director for the Eastern Region of Pop Warner. He was responsible for handling the finances of the Eastern Region and had access to its bank and credit card accounts. Marshall used his authority to steal hundreds of thousands of dollars from Pop Warner. He improperly used funds from Pop Warner bank accounts to pay off personal debts and make cash withdrawals. Marshall also used a Pop Warner credit card to purchase personal items and other things unrelated to Pop Warner.
In addition to the prison term, Judge Pisano sentenced Marshall to three years of supervised release, ordered to pay $559,841 in restitution and forfeit $559,841.
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 sentencing.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.14-272
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, TrentonFormer Connecticut Resident Charged with Running Iraq Business Opportunity Investment SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging JOSEPH T. MORRIS, 51, of Fort Lauderdale, Fla., formerly of Connecticut, with defrauding the co-founders and investors of his Wilton-based company out of approximately $175,000. The indictment was returned on July 1, 2014, and was unsealed yesterday during MORRIS’s arraignment before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport.
According to the indictment, MORRIS and two other individuals formed a company in October 2011 to develop business opportunities in Iraq. The company’s initial focus was on establishing a pizza restaurant at the U.S. Consulate compound in Erbil, Iraq, and establishing a business to distribute and install specialty window film on vehicles and at hotels, residences, and government buildings, which would protect windows and windshields from blast and breakage, and provide heat retention, ultra-violet shielding, and privacy. MORRIS was the company’s in-country manager in Iraq.
The indictment alleges that MORRIS made numerous fraudulent representations to his co-founders regarding the restaurant and the window film business, knowing that the representations would be communicated to potential investors to induce them to invest in the company. Through the use of fraudulent emails and photographs, MORRIS falsely represented that a lease had been signed to establish a pizzeria on the U.S. consulate compound in Erbil, that renovations were underway, and that progress was being made toward completing renovations and opening the restaurant. MORRIS also falsely represented that the company had an exclusive arrangement with a specialty window film manufacturer to distribute and install the window film in all of Iraq. Based on these misrepresentations, MORRIS caused approximately a dozen investors, most of whom were U.S. military veterans, to invest approximately $175,000 in the company. Instead of using the money from investors to pay for legitimate business expenses, MORRIS diverted large sums of money for his own personal use.
The alleged scheme collapsed in late April to early May 2012 when one of the co-founders discovered that the company did not have a lease or agreement to open and operate a pizza restaurant at the U.S. consulate compound in Erbil and that the company did not have an exclusive arrangement with a window film manufacturer to distribute and install specialty window film in Iraq.
The indictment charges MORRIS with five counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the U.S. Secret Service, the Wilton Police Department, and the Connecticut Financial Crimes Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Buffalo Police Officer Sentenced for Mail FraudRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that former Buffalo Police Officer Johnnie Fritz, 49, of Buffalo, N.Y., who was convicted of mail fraud, was sentenced to 10 months home confinement by Chief U.S. District Court Judge William M. Skretny. The defendant was also ordered to pay restitution in the amount of $6,400 to victims.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the prosecution, stated that between April 20, 2009, and June 9, 2009, Fritz conspired with another individual to defraud State Farm Automobile Insurance Company (“State Farm”) by inflating a claim for automobile insurance policy proceeds. The defendant assisted the co-conspirator in making a claim with State Farm following the theft of the co-conspirator’s automobile, a 2003 Cadillac CTS. The claim included two fraudulent receipts. One of the receipts falsely indicated that new tire rims had been added to the vehicle and the other receipt falsely indicated that a new muffler had recently been installed on the vehicle. The two false receipts inflated the value of the vehicle by more than $3,000.
Fritz made three other unrelated false claims for automobile insurance policy proceeds involving three other vehicles.
In addition to the false claims for insurance, the defendant also abused his position as a police officer with the City of Buffalo Police Department. In October 2009, Fritz unlawfully opened a New York State Department of Motor Vehicles (“DMV”) account that enabled him to search DMV databases at no charge. Only law enforcement officials could open a DMV no-fee account like the one opened by Fritz.
The defendant was previously convicted in Buffalo City Court on June 9, 2011, for Attempted Grand Larceny in the 4th Degree, a misdemeanor, and failure to keep records under the New York State Tax Law, a misdemeanor, for his failure to pay State of New York sales tax receipts related to his automobile dealership.
The sentencing is the culmination of an investigation on the part of the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, NYS Department of Motor Vehicles, under the direction of Director Barbara Fiala, NYS Department of Taxation and Finance, Criminal Investigations Division, under the direction of Commissioner Thomas Mattox, the NYS Department of Financial Services, under the direction of Superintendent Benjamin Lawsky, Criminal Investigations Division, and the Federal Bureau of Investigation.Former Bank Employee Pleads Guilty to Bank FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Patricia Margaret Drake (24, Jacksonville) today pleaded guilty to three counts of bank fraud. She faces a maximum penalty of 30 years in federal prison for each count. A sentencing date has not yet been set. Drake was indicted on May 7, 2014.
According to court documents, on December 5, 2013, a Wells Fargo Bank customer in Jacksonville contacted the bank in order to discuss his concerns regarding unauthorized withdrawals from his bank account. After an internal review of the matter, Wells Fargo Bank identified a series of fraudulent withdrawals from the victim’s bank account. Drake, a Wells Fargo Bank employee, was identified as the teller who had handled every fraudulent withdrawal.
The investigation revealed that the victim was not present in the bank branch on the days when the withdrawals took place, including days when withdrawals were made by counter withdrawal slips. U.S. Secret Service agents later interviewed Drake about the fraudulent bank withdrawals. Drake stated that while using the victim’s bank account number, she made multiple unauthorized withdrawals from the victim’s bank account. Drake also stated that she was not sure how many transactions were completed or the total amount of money stolen from the victim’s account. She did not think the victim would notice the withdrawals quickly because he had a larger account balance.
This case was investigated by United States Secret Service. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Former Arkansas State Police Lieutenant Pleads Guilty to Drug ConspiracyRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Colonel Stan Witt, Director of the Arkansas State Police (ASP), announced today that former Arkansas State Police Lieutenant Sedrick L. Reed, age 44, entered a plea of guilty to conspiracy to distribute and to possess with intent to distribute a controlled substance in the August 7, 2013 indictment in United States v. Sedrick L. Reed. The charge stemmed from an investigation by the Federal Bureau of Investigation’s ArkTrust Public Corruption Task Force with the full cooperation of the Arkansas State Police. The investigation was also referred to as Organized Crime and Drug Enforcement Task Force (OCDETF) operation “Diverted Justice.”
“Today, Sedrick L. Reed, a former Arkansas State Police lieutenant, admitted his guilt to a cocaine distribution conspiracy. An investigation of this nature is challenging to conduct. I commend the FBI and the Arkansas State Police for their diligence and cooperation to fully investigate this case even though it was another law enforcement official,” stated Thyer. “Citizens of the Eastern District of Arkansas deserve to know that their law enforcement members are trustworthy law abiding citizens and when they are not, they will be held accountable for their illegal actions.
Reed pleaded guilty to participating in a conspiracy to distribute and to possess with intent to distribute controlled substances. The United States dismissed the remaining four counts against the defendant upon acceptance of the guilty plea. Reed faces a potential sentence of not less than 10 years and up to life imprisonment; not less than 5 years and up to life supervised release; up to a $10 million fine, and a $100 special assessment. Reed also agreed to the forfeiture of bank accounts, real property, firearms, vehicles, and more than $30,000 in cash constituting proceeds of his illegal conduct.
At his plea hearing before U.S. District Court Judge Billy Roy Wilson in open court, Reed admitted to participating in a conspiracy to distribute between five and fifteen kilograms of cocaine between 2006 and 2013. Reed admitted that he abused a position of public trust in a manner that significantly facilitated the conspiracy. Reed also admitted to possessing a firearm during the conspiracy. Reed admitted to diverting drugs from a traffic stop and taking drugs from the ASP evidence locker. Reed further admitted that during the course of the conspiracy, Reed profited in excess of $200,000 from the resale of these stolen drugs.
The investigation was conducted by the FBI’s ArkTrust Public Corruption Task Force. It is being prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
The remaining defendant in the indictment, Lamont Johnson, is set for trial before Judge Wilson on October 7, 2014.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Former Arkansas State Police Lieutenant Pleads Guilty to Drug ConspiracyRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Colonel Stan Witt, Director of the Arkansas State Police (ASP), announced today that former Arkansas State Police Lieutenant Sedrick L. Reed, age 44, entered a plea of guilty to conspiracy to distribute and to possess with intent to distribute a controlled substance in the August 7, 2013 indictment in United States v. Sedrick L. Reed. The charge stemmed from an investigation by the Federal Bureau of Investigation’s ArkTrust Public Corruption Task Force with the full cooperation of the Arkansas State Police. The investigation was also referred to as Organized Crime and Drug Enforcement Task Force (OCDETF) operation “Diverted Justice.”
“Today, Sedrick L. Reed, a former Arkansas State Police lieutenant, admitted his guilt to a cocaine distribution conspiracy. An investigation of this nature is challenging to conduct. I commend the FBI and the Arkansas State Police for their diligence and cooperation to fully investigate this case even though it was another law enforcement official,” stated Thyer. “Citizens of the Eastern District of Arkansas deserve to know that their law enforcement members are trustworthy law abiding citizens and when they are not, they will be held accountable for their illegal actions.
Reed pleaded guilty to participating in a conspiracy to distribute and to possess with intent to distribute controlled substances. The United States dismissed the remaining four counts against the defendant upon acceptance of the guilty plea. Reed faces a potential sentence of not less than 10 years and up to life imprisonment; not less than 5 years and up to life supervised release; up to a $10 million fine, and a $100 special assessment. Reed also agreed to the forfeiture of bank accounts, real property, firearms, vehicles, and more than $30,000 in cash constituting proceeds of his illegal conduct.
At his plea hearing before U.S. District Court Judge Billy Roy Wilson in open court, Reed admitted to participating in a conspiracy to distribute between five and fifteen kilograms of cocaine between 2006 and 2013. Reed admitted that he abused a position of public trust in a manner that significantly facilitated the conspiracy. Reed also admitted to possessing a firearm during the conspiracy. Reed admitted to diverting drugs from a traffic stop and taking drugs from the ASP evidence locker. Reed further admitted that during the course of the conspiracy, Reed profited in excess of $200,000 from the resale of these stolen drugs.
The investigation was conducted by the FBI’s ArkTrust Public Corruption Task Force. It is being prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
The remaining defendant in the indictment, Lamont Johnson, is set for trial before Judge Wilson on October 7, 2014.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Final Member of Heroin Distribution Conspiracy SentencedRead the Press Release
HARRISONBURG, VIRGINIA – The last of seven defendants convicted of conspiring to distribute large amounts of heroin in and around the Winchester, Va. region, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg.
Christopher Haack, 29, of Winchester, Va., previously pled guilty to one count of conspiring to distribute and possess with the intent to distribute more than 100 grams but less than 400 grams of heroin and one count of possessing with the intent to distribute and distributing heroin. Today in District Court, Haack was sentenced to 24 months of imprisonment and five years of supervised release.
“The issue of heroin abuse has risen to epidemic levels in parts of Virginia,” United States Attorney Timothy J. Heaphy said today. “We will continue to work to reverse this disturbing trend through rigorous law enforcement as well as education, prevention and treatment programs. If we are going to make progress in the fight against this deadly drug, we must work together and approach the problem with a comprehensive strategy.”
Previously convicted and sentenced for their roles in the conspiracy were: Raymond Thomas Conrad, 26, of Strasburg, Va., 120 months; William Russell Carroll, II, 27, of Winchester, Va., 30 months; Dana James Hardy, 27, of Fredericksburg, Va., 84 months; Jennifer Elizabeth Breeden, 26, of Winchester, Va., 84 months; Brian Gary Pelczynski, 29, of Winchester, Va., 44 months; and Charles Lynwood Kline, 26, of Winchester, Va., 120 months.
According to information presented at previous hearings by Assistant United States Attorney Donald Wolthuis, this conspiracy consisted of a group of people who were working together to bring heroin from Baltimore, Md. to the Winchester, Va. area both for use and re-distribution. While the group had no formal organization, the central player in the conspiracy was Raymond Conrad. Heroin was purchased on the streets of Baltimore for $90-$120 per gram and later sold on the streets of Winchester for $50 per 1/10 of a gram.
The investigation revealed that during the life of the conspiracy, April 2010 to June 2013, some two kilograms of heroin were re-distributed, representing roughly 20,000 dosage units of heroin being put on the streets in Winchester, and the surrounding areas.
The investigation of the case was conducted by the Northwest Virginia Regional Drug Task Force and the Drug Enforcement Administration. The Northwest Virginia Regional Drug Task Force is comprised of nine participating jurisdictions, the counties of Frederick, Clarke, Shenandoah, Warren, and Page, the cities and towns of Winchester, Front Royal, and Strasburg, and the Virginia State Police. Assistant United States Attorney Donald Wolthuis prosecuted the case for the United States.
Essex County, N.J., Man Charged with Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWARK, N.J. – Special agents of the FBI arrested a Bloomfield Township, New Jersey, man this morning on charges that he distributed sexually explicit images of children from his home computer, U.S. Attorney Paul J. Fishman announced.
Paul J. Spisto, 52, is charged by complaint with two counts of distributing images of child pornography over the Internet. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.According to the complaint:
On Dec. 3, 2012, and Dec. 24, 2012, Spisto distributed videos and images depicting child sexual abuse on the Internet via a Usenet newsgroup, which allowed others access to the material. An undercover agent discovered and downloaded the images and videos; the username and IP address of the distributor were traced back to Spisto’s residence.
Each distribution count carries a minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Barry A. Kamar of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
14-270Defense counsel: Scott Telson Esq., Edison, New Jersey
Spisto, Paul Complaint
El Salvadorian National Charged with Fraudulently Receiving Unemployment Insurance BenefitsRead the Press Release
BOSTON - A Chelsea man was charged today with mail fraud for fraudulently accepting over $46,000 in unemployment insurance benefits.
Oscar P. Valles-Lopez, a/k/a Oscar Valle, 44, was charged in a criminal complaint with mail fraud.
Valles-Lopez is an El Salvadorian national who illegally reentered the United States in or around July 2003 after previously living in this country between 1996 and 2001. After working for several years based upon fraudulently obtained immigration papers, he lost his job sometime in 2009. It is alleged that, although though he knew he was not entitled to unemployment insurance benefits without a valid work permit, Valles-Lopez paid $400 for a false permit and made three claims for benefits in 2009, 2010, and 2012. Over the course of several years, Valles-Lopez allegedly cashed 111 unemployment checks totaling $46,218, all of which were mailed by the United States Postal Service.
The maximum sentence under the statute is 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York Regional Office; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police made the announcement today. The case is being prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Director of Nursing Pleads Guilty in Miami for Role in $7 Million Health Care Fraud SchemeRead the Press Release
A former director of nursing pleaded guilty yesterday in connection with a health care fraud scheme involving Anna Nursing Services Corp. (Anna Nursing), a defunct home health care company in Miami. U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Armando Buchillon, 42, of Hialeah, Florida, pleaded guilty before U.S. District Judge Joan A. Lenard in the Southern District of Florida to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Oct. 6, 2014, before Judge Lenard.
According to court documents, Buchillon was a director of nursing at Anna Nursing, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. The owners and operators of Anna Nursing agreed to and actually did operate Anna Nursing for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
As part of the fraudulent scheme, Buchillon and his co-conspirators regularly falsified patient documentation in order to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for or receive such services. In addition, Buchillon paid kickbacks and bribes to patient recruiters, in return for the recruiters providing patients to Anna Nursing for home health care and therapy services that were medically unnecessary and/or were not provided. Buchillon also worked as a patient recruiter for Anna Nursing and was paid kickbacks and bribes by the owner of Anna Nursing. Buchillon and his co-conspirators caused the submission of false and fraudulent claims to Medicare on behalf of these beneficiaries.
From approximately October 2010 through approximately April 2013, Anna Nursing was paid by Medicare approximately $7 million for fraudulent claims for home health care services that were medically unnecessary and/or were not provided.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Deported Man Charged with Immigration ViolationRead the Press Release
PITTSBURGH – An Ambridge resident was indicted on July 29, 2014, by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Elionardo Juarez-Escobar, 41, as the sole defendant.
According to the indictment, Juarez-Escobar, having previously been deported from the United States pursuant to law on Dec. 5, 2005, was present in the Western District of Pennsylvania on April 17, 2014, without having applied for and received permission from the Secretary of the Department of Homeland Security for re-application for admission into the United States.
The law provides for a maximum total sentence of not more than two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
Homeland Security Investigations and the New Sewickley Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Department of Justice and Federal Trade Commission Extend Public Comment Period for Workshop on Conditional Pricing PracticesRead the Press Release
The Department of Justice and the Federal Trade Commission (FTC) have extended the deadline for submitting comments on their recent Conditional Pricing Practices Workshop from Aug. 22, 2014, to Sept. 22, 2014.
The workshop, held June 23, 2014, explored the economics and legal policy implications of certain pricing practices, such as loyalty and bundled pricing. Interested parties may submit public comments online. Submitted comments and additional information about the workshop can be found on the Department of Justice and FTC websites.Del City Man Charged with Assault of Federal Officer with A Dangerous WeaponRead the Press Release
Oklahoma City, Oklahoma – Earlier today, a criminal complaint was unsealed charging JAMES WILLIAMS, 60, from Del City, Oklahoma, with assaulting a federal officer with a dangerous weapon, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, on June 26, 2014, law enforcement on Tinker Air Force Base received a report of a man acting in a suspicious manner in a sport utility vehicle (SUV) on base. It is alleged that while law enforcement attempted to conduct a traffic stop the SUV fled and a high speed chase ensued. It is alleged that when a Senior Airman attempted to close the gate to prevent the SUV from exiting the base the driver of the SUV accelerated towards the Airman nearly striking her with the vehicle as it exited the installation. It is alleged that law enforcement for Tinker Air Force Base and the Oklahoma Highway Patrol pursued the vehicle at speeds over 100 miles per hour. The SUV was later identified as belonging to Williams.
Williams was arrested on July 29, 2014, and appeared before a United States Magistrate Judge in Oklahoma City earlier today. A preliminary hearing is set August 15, 2014.
If convicted, Williams faces up to 20 years in prison and a $250,000 fine. The public is reminded that the defendant is presumed innocent unless and until proven guilty.
This case is the result of an investigation by the Air Force Office of Special Investigations, Oklahoma Highway Patrol, and Oklahoma County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Robert Don Gifford II.
Dallas Man Sentenced for Bank FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 51-year-old Dallas real estate recruiter has been sentenced to federal prison for bank fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Marcus Dewane Carr pleaded guilty on Feb. 13, 2014 to conspiracy to commit bank fraud and was sentenced to 30 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, from July 2008 to August 2010, Carr conspired with others to defraud Wells Fargo Bank and Flagstar Bank by inflating the purchase price of residential properties in Dallas and requiring buyers to secure mortgage loans for the fraudulent amount. Excess loan funds were then used to pay kickbacks to Carr, who recruited buyers, and others for arranging the sale of the properties.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the HUD-OIG and Federal Home Finance Agency-OIG and prosecuted by Assistant U.S. Attorney J. Andrew Williams.
Charleston Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Troy Lawrence, 45, of Charleston, West Virginia, pleaded guilty in federal court in Charleston to aggravated identify theft. Lawrence admitted that he used a dead person’s name and driver’s license to purchase pseudoephedrine from a Rite Aid store in Charleston. Lawrence faces a mandatory two years’ imprisonment when he is sentenced on November 13, 2014.
This case was investigated by the West Virginia State Police and the Drug Enforcement Administration.
Carbondale Resident Sentenced on Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn July 30, 2014, Leeann M. Simmerman, 21, of Carbondale, was sentenced for her involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Simmerman, who had previously pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 108 months in federal prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between 2010 and January 2014, in Jackson, Williamson, Union, and Franklin Counties. Evidence at the plea and sentencing hearings established that Simmerman obtained over 151 grams of pseudoephedrine to be used in the manufacture of methamphetamine. Two co-defendants have pled guilty and are awaiting sentencing. Eleven co-defendants have pled not guilty and are awaiting jury trial.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
California Man Sentenced to 16 Years for Conspiracy to Distribute Heroin & MethamphetamineRead the Press Release
Anchorage, Alaska-United States Attorney Karen L. Loeffler announced that a Stockton, California man was sentenced today by U.S. District Court Judge Sharon Gleason to 16 years in federal prison for his role in a drug conspiracy.
Ernie Benny Juarez, Jr., 35, of Stockton, California previously pled guilty to conspiring with others to distribute large amounts of methamphetamine and heroin throughout the Anchorage community. As part of his plea, Juarez admitted flying to Alaska from California in October 2013. Co-conspirators subsequently sent Juarez and his associates an Express Mail package containing large quantities of heroin and methamphetamine, which Juarez intended to distribute in Anchorage. In total, the package contained approximately 385 grams of heroin and more than 500 grams of methamphetamine.
The sentence announced today included enhancements based upon Juarez’s classification as a career offender. Prior to flying to Anchorage to distribute drugs, Juarez had been convicted of multiple other felonies, including drug crimes in California.
In sentencing Juarez, Judge Gleason noted the seriousness of Juarez’s crime and the need to protect the public from future crimes. Judge Gleason also emphasized the need for deterrence in these types of cases.
In announcing the sentencing, U.S. Attorney Loeffler praised the United States Postal Inspection Service, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Alaska State Troopers, who conducted the investigation in this case.Buffalo Man Sentenced to 20 years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Buffalo, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Emilio R. Haro, 30, of Buffalo, was sentenced by U.S. District Judge Greg Kays to 20 years in federal prison without parole. Haro pleaded guilty on Dec. 19, 2013. The court also sentenced Haro to spend the rest of his life on supervised release following his prison term.
Law enforcement officers from two separate agencies independently identified Haro’s computer during their investigations into the sharing of child pornography over peer-to-peer file-sharing networks during the summer of 2012. Officers executed a search warrant at Haro’s residence and seized two laptop computers and an external hard drive, which contained hundreds of videos and images of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force, the Republic, Mo., Police Department, the Nixa, Mo., Police Department and the Dallas County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Bolivar Man Sentenced to 10 Years for Possessing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bolivar, Mo., man was sentenced in federal court today for possessing child pornography.
Leland Wallace Crull, 44, of Bolivar, was sentenced by U.S. District Judge Greg Kays to 10 years in federal prison without parole. Crull pleaded guilty on Feb. 3, 2014. The court also sentenced Crull to spend the rest of his life on supervised release following his prison term.
Law enforcement investigators with the Southwest Missouri Cyber Crimes Task Force were investigating child pornography images and/or videos being shared on a peer-to-peer file-sharing network in April 2012. Crull’s computer was identified as sharing child pornography over the Internet. Officers executed a search warrant at Crull’s apartment on Aug. 9, 2012. He initially refused to answer the door and then attempted to exit the back of the residence, but was detained by law enforcement officers. Investigators seized Crull’s laptop computer, an external hard drive and his cellular phone, which contained hundreds of images and videos of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force and the Polk County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Boise Man Pleads Guilty to Distribution of MarijuanaRead the Press Release
BOISE – Luke Michael Marria, 19, of Boise, Idaho, pleaded guilty yesterday in the United States District Court to distributing marijuana, U.S. Attorney Wendy J. Olson announced.
According to court documents, the defendant admitted to distributing at least five kilograms, but not more than ten kilograms of marijuana from April 2012 to March 2014, in the Treasure Valley. The charge is punishable by up to five years imprisonment, not more than three years of supervised release, and a $250,000 fine. Sentencing is set for October 16, 2014, before Chief U.S. District Judge B. Lynn Winmill. Mr. Marria’s offense was related to Operation Candle Wax which resulted in the indictment of twelve other individuals for the distribution of oxycodone and heroin.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service; the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office; the Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Big Game Hunting Guide Pleads Guilty to Felony Conspiracy Charge in Connection with Colorado Outfitter’s Illegal Mountain Lion and Bobcat Hunting ActivitiesRead the Press Release
Nicholaus J. Rodgers, 31, of Shady Cove, Oregon, pleaded guilty in federal court in Denver to a felony conspiracy charge stemming from the assistance he provided to an outfitter who sold illegal mountain lion and bobcat hunts in Colorado and Utah, the Justice Department announced.
Rodgers pleaded guilty to one count of conspiracy to violate the Lacey Act. The Lacey Act is a federal law that makes it illegal to knowingly transport or sell in interstate commerce any wildlife that has been taken or possessed in violation of state laws or regulations.
According to an indictment returned by the grand jury for the District of Colorado on Jan. 7, 2014, and the plea agreement, Rodgers conspired with others to provide numerous illegal hunts of mountain lions and bobcats in Colorado and Utah from 2007 to 2009. In particular, Rodgers and his confederates trapped, shot and caged mountain lions and bobcats prior to hunts in order to provide easier chases of the cats for clients. Rodgers also admits that he and his partners guided several hunters that did not possess a Utah mountain lion or bobcat license on mountain lion or bobcat hunts in Utah. The outfitter for whom Rodgers guided, Christopher W. Loncarich, was also indicted on Jan. 7, 2014. Loncarich is based in Mack, Colorado, which is approximately five miles from the Utah-Colorado border. Loncarich sold mountain lion hunts for between $3,500 and $7,500 and bobcat hunts for between $700 and $1,500 and shared a portion of the proceeds from successful hunts with Rodgers.
Three of Loncarich’s assistant guides have previously pleaded guilty to Lacey Act violations in connection with their guiding activities with Loncarich.
The maximum penalty for conspiring to violate the Lacey Act is up to five years in prison and a $250,000 fine. Under the terms of the plea agreement, the prosecution agreed to a sentencing calculation pursuant to the advisory United States Sentencing Guidelines but did not agree on a term of imprisonment, an amount of fines or an amount of restitution. A sentencing hearing for Rodgers is set for Nov. 7, 2014.
The case was investigated by the United States Fish & Wildlife Service, Colorado Parks and Wildlife and the Utah Division of Wildlife Resources. The case is being prosecuted by the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.Bergen County Man Arrested, Charged with Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWARK, N.J. – Federal agents arrested a Bergen County, New Jersey, man this morning on a charge that he distributed sexually explicit images of children from his home computer, U.S. Attorney Paul J. Fishman announced.
Robert Miller, 65, of Hackensack, New Jersey, is charged by complaint with one count of distributing images of child pornography over the Internet. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was remanded without bail.
According to the criminal complaint unsealed today:
From April 30, 2014, to May 7, 2014, Miller distributed videos depicting child sexual abuse on the Internet via a peer-to-peer file-sharing program, which allowed others access to the material. An undercover agent discovered and downloaded the videos, and the username and IP address of the distributor were traced back to Miller’s residence.
On July 30, 2014, special agents from U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) executed a search warrant at Miller’s residence and seized his computer and related electronic devices, which allegedly contained the peer-to-peer program as well as multiple videos and/or images of child sexual abuse.
The distribution count with which Miller is charged carries a minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of ICE-HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark; the Bergen County Prosecutor’s Office, under the direction of Prosecutor John Molinelli; and the Hackensack Police Department, under the direction of Police Director Mike Mordaga, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Barry A. Kamar of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark
Miller, Robert Complaint