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15 September 2014
Manatee County Man Charged for Attempting to Entice MinorsRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that William Daniel Thompson (67) was arrested on September 11, 2014, for attempting to persuade, induce, and entice a minor to engage in illicit sexual conduct. Thompson faces a minimum penalty of 10 years, up to a maximum penalty of life in federal prison. Thompson made his initial appearance in federal court on September 12, 2014. He is being detained pending trial.
According to the criminal complaint, on September 10, 2014, an FBI special agent noticed an advertisement in the “all personals” section of Craigslist, which made reference to a single white male seeking a “family dynamic.” Between September 10, 2014, and September 11, 2014, Thompson engaged in e-mail communications with the undercover agent, who was posing as the father of a 10-year-old girl and 13-year-old boy. During the online communications, Thompson told the undercover agent that he wanted to engage the minors in sexual conduct.
On September 11, 2014, Thompson traveled to Altamonte Springs where he had arranged to meet the father of the minors for the purpose of engaging in illicit sexual conduct, at which time he was arrested. During an interview with law enforcement, Thompson admitted that he had traveled to the location for the purpose of meeting the father of the two children with whom he had been e-mailing. Thompson stated that his purpose in going to Altamonte Springs was to explore the possibility of having sex with a 10-year-old girl. The investigation revealed that Thompson has been involved in the bondage, dominance, sadomasochistic lifestyle for about ten years.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
A complaint is merely a formal charge that a defendant has committed a violation of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
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 (CEOS), 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.projectsafechildhood.gov.
Liberty Man Pleads Guilty to Conspiracy to Sell False ID Documents to Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., man pleaded guilty in federal court today to his role in a conspiracy that produced and sold thousands of false identification documents to illegal aliens.
Cesar Mujica-Aranda, 25, a citizen of Mexico residing in Liberty, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a March 20, 2014, federal indictment.
By pleading guilty today, Mujica-Aranda admitted that he managed the production of counterfeit identification documents at his Liberty apartment from Sept. 1, 2013, to Feb. 21, 2014. He managed the production of the false identification documents and sold the documents to numerous street level dealers. The street dealers would typically pay approximately $50 for each counterfeit identification document and they would keep any excess proceeds they were able to obtain from the sale of the counterfeit documents.
Mujica-Aranda produced fraudulent Lawful Permanent Resident cards, counterfeit Social Security cards, and false driver’s licenses from various states within the United States as well as Mexican states. Conspirators produced and sold thousands of false identification documents to illegal aliens so that the illegal aliens could stay and work within the United States.
On Jan. 30, 2014, Mujica-Aranda threw away a white plastic bag containing shredded pieces of fraudulent identity documents in a trash can at a gas station at St. John Avenue and Belmont in Kansas City, Mo. Early the next morning, a federal agent located the bag in the trash can. The bag contained shredded pieces of fraudulent identification documents, and weighed approximately two pounds. Each piece was approximately the size of a small paper clip, and the shredded pieces were immediately recognizable as fraudulent Lawful Permanent Resident cards, Social Security cards, Missouri non-driver’s licenses and Kansas identification cards. The agent also discovered two reels of depleted color card printer ribbon within the shredded pieces. One reel had images of fraudulent Lawful Permanent Resident cards. Mujica-Aranda’s fingerprints were on items contained in the bag.
Under the terms of today’s plea agreement, Mujica-Aranda must pay a money judgment for the total amount of money that was obtained by this fraudulent identification document enterprise. The Department of Homeland Security is still evaluating ink ribbons that were seized as part of the investigation and has already identified thousands of identification documents that were produced by the conspiracy. By the time of sentencing, the government may have a better estimate on how many identification documents it can establish were produced by the conspiracy. The Court may elect to multiply this number by how much the conspiracy was selling the false documents to aliens. By Mujica-Aranda’s own admission, the documents were sold for no less than $100 per document.
Mujica-Aranda must also forfeit to the government all of the equipment that was used to produce fraudulent identification documents, including three computers, a computer hard drive, printers, four cameras, six cell phones, electronic storage devices and other miscellaneous equipment and supplies, and $1,840.
Under federal statutes, Mujica-Aranda is subject to a sentence of up to 15 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney William A. Alford III. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Social Security Administration, Office of the Inspector General, the Kansas Department of Revenue – Office of Special Investigations, the Missouri Department of Revenue – Compliance Investigation Bureau and the Clay County, Mo., Prosecuting Attorney’s Office.
Leader of Oxnard Street Gang and Mexican Mafia Associate Found Guilty of Federal Drug and Gun Trafficking ChargesRead the Press Release
LOS ANGELES – Capping the second phase of Operation “Supernova” – which was a multiagency investigation into Ventura County’s largest street gang – the leader of the Oxnard-based Colonia Chiques street gang has been found guilty of a host of criminal charges, including operating a continuing criminal enterprise.
In a verdict that was issued by a federal jury after 9:00 on Friday night, Luis Manuel Tapia, the leader of the Colonia Chiques and a validated associate of the Mexican Mafia prison gang, was found guilty of each of the 26 federal charges filed against him.
As a result of the convictions, Tapia, 37, of Ojai, faces four mandatory life sentences – plus an additional, consecutive 55 years – when he is sentenced by United States District Judge Otis D. Wright II on December 15.
The evidence presented during a two-week trial in federal court in Los Angeles showed that Tapia was deeply involved in the business of running the Colonia Chiques and was personally involved in the sale of firearms and narcotics. During a series of secretly recorded meetings with Tapia, he described himself as the “CEO” of his enterprise, comparing it to Walmart because he supplied a wide array of contraband and always guaranteed his product’s quality. Indeed, one $200,000 drug transaction in October 2011 involved approximately 10 pounds of nearly pure methamphetamine.
During the investigation, authorities conducted an undercover operation in Las Vegas in which an undercover FBI agent posed as a senior member of the Italian mob and negotiated to have Tapia supply the Las Vegas syndicate of the Italian mob with up to 20 pounds of highly pure methamphetamine every month.
The jury also heard Tapia, in a video recording, bragging that his heroin was so strong that it had “killed six people” – and that this was a “good advertisement” for his drug operation. Tapia also explained how his high-quality methamphetamine – which lab results confirmed was often 100 percent pure – was obtained from Mexican drug cartels. In another video recording, Tapia was heard directing a large assembly of younger Colonia Chiques gang members to monopolize their drug selling territory, to seek out and violently expel or attack informants, and to heed the directives of the Mexican Mafia.
At another stage of the investigation, authorities seized 2.5 pounds of heroin, over 9 ounces of cocaine, 9.6 ounces of methamphetamine, cash and two loaded firearms inside a hidden trap in a car owned by Tapia.
Tapia was specifically found guilty of leading a continuing criminal enterprise that distributed at least 1,000 grams of methamphetamine, conspiracy to distribute controlled substances, conspiracy to engage in the business of dealing in firearms without a license, 10 substantive counts of drug distribution (involving heroin, methamphetamine, and cocaine), three counts of possession of a firearm in furtherance of a drug trafficking crime, seven counts of being a felon in possession of a firearm, and the illegal transfer of a fully-automatic machinegun. Counting the machinegun, investigators seized 19 firearms from Tapia, including an AR-15 assault rifle, a custom built AK-47 with a bayonet, and a pistol grip sawed-off shotgun.
Four of Tapia’s co-defendants – Diana Zamora, Edgar Aguilar, Roger Armendariz and Jaime Cardenas – have pleaded guilty to conspiring traffic narcotics and/or firearms and have received sentences of up to 10 years in federal prison. An unknown male, known only as “Pancho,” who allegedly supplied narcotics to Tapia, is a fugitive believed to be in Mexico.
In the first part of Operation Supernova (see: http://www.justice.gov/archive/usao/cac/Pressroom/2011/018.html) federal prosecutors convicted 11 defendants who have received sentences of up to 25 years in prison.
The Supernova investigation was conducted by the Ventura County Federal Violent Crimes Task Force, which is comprised of agents with the Federal Bureau of Investigation and officers with the Oxnard Police Department.
Release No. 14-118
Leader of Multi-Million Dollar Foreclosure Rescue Scheme ConvictedRead the Press Release
SACRAMENTO, Calif. — After a one-day bench trial on stipulated facts, United States District Judge Troy L. Nunley found Alan Tikal, guilty today of 11 counts of mail fraud and one count of money laundering, United States Attorney Benjamin B. Wagner and California Attorney General Kamala D. Harris announced.
According to evidence presented at trial, between January 7, 2010, and August 20, 2013, Tikal 46, of Brentwood, in Contra Costa County, California, operated a business known as KATN. Tikal and his associates targeted homeowners experiencing difficulties making their monthly mortgage payments, many of whom did not speak English, and promised them that their outstanding mortgage debt would be reduced by 75 percent, falsely claiming he was a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgages in full. Tikal told homeowners that in return for various fees and payments, their existing loans would be paid in full, and the homeowners would then owe new loans to Tikal that would be only 25 percent of the original loan.
In fact, there was not a single instance in which a homeowner’s debt was paid, forgiven or otherwise extinguished as a result of the mortgage relief program. All of the purported “loan” payments paid to Tikal were simply spent by himself, his family and his associates for personal use. Tikal and his associates convinced more than 1,000 homeowners in California and other states to participate in the program. Relying on the misrepresentations made by Tikal, many of these homeowners stopped making payments on their existing mortgages and lost their homes to foreclosure. Those homeowners paid more than $5,800,000 in fees and monthly payments into the program. Of that, more than $2,500,000 was paid into accounts controlled by Tikal and his family.
“The financial crisis that hit our communities so hard made it very difficult for many of our citizens to make ends meet,” said U.S. Attorney Wagner. “Alan Tikal cynically took advantage of their desperation for his own profit, stealing payments meant to preserve family homes. We are gratified by the Court’s guilty verdict.”
“As California recovers from the foreclosure crisis, financial scams continue to target vulnerable homeowners,” said California Attorney General Kamala D. Harris. “These predators robbed innocent families of their life savings and their piece of the American dream. I congratulate our California Mortgage Fraud Strike Force and the U.S. Department of Justice for their fine work in bringing these individuals to justice.” “Tikal exploited the financial crisis by setting out to hurt others and profit from that hurt, and he accomplished his mission through his crime,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Homeowners struggling to keep their heads above water paid Tikal thinking they were getting their mortgages modified, foregoing the chance to obtain a real mortgage modification through HAMP, the TARP housing program. Even after SIGTARP agents arrested Tikal, from his jail cell, Tikal continued to run the scheme that stole $5.8 million from homeowners and fraudulently stalled foreclosure proceedings by TARP banks. SIGTARP stands united with our partners like U.S. Attorney Ben Wagner, his team of prosecutors, and Maggy Krell, the terrific prosecutor from the California Attorney General’s office.”
“The defendant preyed on struggling and trusting homeowners”, said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “The impact on homeowners and communities is devastating. While the conviction cannot reverse the damage caused by this defendant, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”
This case is a joint prosecution by the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office. It is the product of investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service - Criminal Investigation, the California Department of Justice, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Philip Ferrari and California Deputy Attorney General Maggy Krell are prosecuting the case.
Co-defendants Tamara Tikal and Ray Kornfeld have previously pleaded guilty and are awaiting sentencing.
Tikal, who has been incarcerated pending these charges since his arrest in September of 2012, is scheduled to be sentenced by Judge Nunley on December 11, 2014. Tikal faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Kamiah Man Sentenced for Assaulting A DeputyRead the Press Release
COEUR D'ALENE - Paul Lee Oatman, 33 of Kamiah, Idaho, was sentenced to 36 months in prison, followed by three years of supervised release for assault resulting in serious bodily injury, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Oatman to pay $25,719 in restitution and serve 100 hours of community service. He was found guilty by a jury on June 26, 2014.
According to court documents, on July 13, 2013, the defendant assaulted a Kamiah Marshal and fractured his jaw in two places. The marshal was attempting to arrest a friend of the defendant, when the defendant interfered and struck the marshal in the jaw.
“Today’s sentence sends the clear message that violent interference with a law enforcement officer engaged in his public safety duties will not be tolerated,” said Olson. “All persons have a duty to comply with a law enforcement officer's commands. I commend the hard work of prosecutors and staff from my office and the cooperative investigative work of the Nez Perce Tribal Police Department and the FBI.”
The case was investigated by Nez Perce Tribal Police, Idaho County Sheriff’s Department, Lewis County Sheriff’s Department and the Federal Bureau of Investigation.
Indictment Charges Kankakee Manwith Possessing 100 or More Marijuana Plants, Filing False Tax Returnsand Making False Bank StatementRead the Press Release
Urbana, Ill. – A Kankakee, Ill., man, David Aaron Neblock, 37, made his initial court appearance this afternoon following his arrest on Thursday, Sept. 11, 2014, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. A federal grand jury returned the five-count indictment on Sept. 10, that charges Neblock with possession of 100 or more marijuana plants with intent to distribute, filing false income tax returns for the 2010, 2011 and 2012 tax years, and making false statements to a financial institution. The indictment had remained sealed pending Neblock’s arrest and initial court appearance.
During today’s hearing, U.S. Magistrate Judge David G. Bernthal allowed Neblock’s release on electronic monitoring under the condition that Neblock remain detained until a telephone ‘land line’ has been established at Neblock’s residence. Trial in the case is scheduled on Nov. 18, before U.S. District Judge Sue E. Myerscough in Springfield.
The indictment alleges that on July 22, 2012, in Kankakee, Neblock possessed 100 or more marijuana plants with the intent to distribute. The indictment further alleges that Neblock falsely understated his adjusted gross income for tax years 2010, 2011, and 2012, by omitting other income he had earned, including income from the sale of narcotics. Neblock allegedly owes approximately $52,128 in federal taxes. Neblock is also charged with providing material false statements to a bank in 2009 to obtain a loan to purchase property.
If convicted, the mandatory minimum penalty for possession of 100 or more marijuana plants with the intent to distribute is five years in prison and up to 40 years. The maximum penalty for filing a false income tax return is up to 3 years in prison; the penalty for making false statements to a financial institution is up to 30 years in prison.
The case is being prosecuted by Supervisory Assistant U.S. Attorney Ronda H. Coleman. The charges are the result of investigation by the Kankakee Area Metropolitan Group; the Federal Deposit Insurance Corporation Office of Inspector General; and the Internal Revenue Service Criminal Investigation.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Houston Man Sentenced to 154 Months in Prison for Armed Robbery, Firearms ChargesRead the Press Release
LAKE CHARLES, La. – A Houston man was sentenced last week to 154 months in prison for robbing from a Roanoke drug trafficker, U.S. Attorney Stephanie A. Finley announced today.
Francisco Javier Camacho, 42, of Houston, was sentenced Thursday by U.S. District Judge Patricia Minaldi to 70 months in prison for one count of interference with commerce by robbery and 84 months for one count of use and carrying of a firearm during a crime of violence with the prison terms to be served consecutively. He is also to serve five years of supervised release.
According to evidence presented at the November 1, 2012 guilty plea, Camacho and an accomplice, Cruz Martinez-Encinas, visited the home of a known drug trafficker on February 15, 2011 in Roanoke, La., saying they wanted to sell marijuana. Instead of selling illegal drugs, the two men robbed the drug trafficker, stealing three guns and $7,500 in cash. Camacho and Martinez-Encinas tied up the drug trafficker and a female who was present at the home. They then fled the scene. The two were able to free themselves, and the drug trafficker followed the two men onto Interstate 10. While chasing the men by car in between the Welsh, La., and Roanoke exits, the drug trafficker rammed the back of the car that Camacho was traveling in, which caused Camacho’s vehicle to run off the road and crash. Camacho and Martinez-Encinas exited the vehicle and ran north. They were later arrested. While in pursuit, law enforcement found four semi-automatic pistols. They also found $7,500 on Camacho when he was apprehended.
Martinez-Encinas pleaded guilty September 1, 2011. He was sentenced to 65 months in prison for possession of a stolen firearm and 65 months in prison for interference with commerce by robbery. He was also sentenced to serve three years of supervised release for each count. The sentences are to be served concurrently.
The FBI, ATF and the Jefferson Davis Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Joseph Mickel prosecuted the case.Hephzibah Man Sentenced to 30 Years for Sexually Exploiting A MinorRead the Press Release
Augusta, GA: Rahmad Ali James, 37, of Hephzibah, Georgia, was sentenced last week by United States District Court J. Randal Hall to 30 years in prison, followed by supervised release for 10 years, for the Sexual Exploitation of a Minor through the production of child pornography. James pled guilty to the charge in May 2014.
United States Attorney Edward Tarver said, “The protection of our children is, and should be, a priority to which the Department of Justice takes swift and aggressive enforcement action. This defendant exploited a child entrusted to his care by molesting her and photographing her, and then posting those images on the Internet in violation of numerous federal laws. Lengthy sentences like the one imposed here help protect our children from predatory acts, and serve to deter others from engaging in similar conduct.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The lengthy prison sentence handed down today reflects the serious nature of the crimes committed in this case. The FBI will continue to provide extensive investigative resources in getting such child predators as Rahmad James off of our streets.”
Evidence presented during the guilty plea and sentencing hearings revealed that James, while living in the Atlanta area, molested a girl who lived in the same house where he was staying. The molestation occurred when the girl was between the ages of 8 and 15. James photographed the molestation, and after returning to Hephzibah, uploaded those and other child pornography images onto an international website in order to receive similar-type images from others. After executing a federal search warrant at James’s Hephzibah residence in February 2014, officers and agents located a large collection of child pornography on various forms of computer media belonging to James. James was immediately arrested, and was thereafter indicted and charged with four counts involving the production of child pornography, and five counts of distributing child pornography. He has remained in custody since February 2014.
The arrest in this case was accomplished through the efforts of members of the FBI’s Metro Atlanta Child Exploitation Task Force and its Computer Crime Child Exploitation Task Force (MATCH/CCCX) made up of agents and officers of the FBI, Georgia Bureau of Investigation, Richmond County Sheriff’s Office and Columbia County Sheriff’s office. This case was prosecuted as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Gloucester Sex Offender Sentenced to 25 Years for Child Pornography ProductionRead the Press Release
BOSTON – A Level III sex offender was sentenced today for production of child pornography.
Mark Pallazola, 38, of Gloucester, was sentenced by U.S. District Judge William G. Young to 300 months in prison and 10 years of supervised release. In May 2014, Pallazola pleaded guilty to production and possession of child pornography.
On Nov. 19, 2012, federal agents received information that an online user of a photo sharing website had uploaded a series of non-pornographic images of a prepubescent child, with comments indicative of child exploitation. Law enforcement traced this posting to Pallazola at his residence in Gloucester.
The following day, law enforcement officers interviewed Pallazola and executed a search warrant. A preliminary review of the computers located at the residence was conducted and child pornography was located on Pallazola’s computer. Forensic analysis later revealed that Pallazola participated in sexual acts involving a young girl and recorded those acts. He also possessed thousands of other images of child pornography.
This was not Pallazola’s first conviction. In 2002, he was convicted of felonious sexual assault in Concord, NH, after having sexual contact with two girls under the age of 13.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Massachusetts State Police and the Gloucester Police Department assisted with the investigation and arrest of Pallazola. The case was prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Owner of Defense Contracting Companies Charged with Mail Fraud and Violating Arms Export Control ActRead the Press Release
TRENTON, N.J. – The former owner of two New Jersey defense contracting businesses was charged with mail fraud and violating the Arms Export Control Act, U.S. Attorney Paul J. Fishman announced today.
Alper Calik, 38, of Ankara, Turkey, was arrested upon his entry into the United States on Sept. 13, 2014 and charged by complaint with two counts of mail fraud, in connection with allegedly fraudulent contracts entered into with the U.S. Department of Defense (DoD), and one count of violating the Arms Export Control Act, in connection with his download of thousands of military technical drawings while outside the United States without prior approval from the U.S. Department of State. He is scheduled to make his initial court appearance later today before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.
According to the complaint:
Starting in November 2009, Calik was the co-owner of Clifmax LLC in Clifton, New Jersey. The company contracted with DoD to supply defense hardware items and spare parts. Starting in May 2011, Calik started a second defense-contracting company, Tunamann LLC, based at the same address in Clifton. Both Clifmax and Tunamann were allegedly “shell” companies for manufacturing facilities in Turkey, created to obtain DoD contracts that the manufacturers were not permitted to receive. Calik, on numerous occasions, falsely claimed to the DoD that Clifmax and Tunamann were U.S.-based manufacturers, when, in fact, neither company ever had any manufacturing capabilities in the United States.
From November 2009 to March 2011, Calik allegedly defrauded the DoD by electronically submitting fraudulent bids for DoD contracts stating that he would provide parts manufactured in the United States when the items were, in fact, manufactured in Turkey. On Feb. 17, 2010, Calik submitted a false bid to the DoD for a contract to provide 121 parts known as “gear, spur,” an item used in the “steer section and brake” of the Amphibious Assault Vehicle. Calik claimed that Clifmax was a manufacturer and that the parts would be manufactured in the United States. Only U.S.-based contractors were eligible to obtain that contract. Based on Calik’s false bid, Clifmax was awarded the contract, valued at $50,215. Shipping records showed that the parts were shipped from Turkey to Clifmax’s address on July 20, 2014. The parts were subsequently provided to the DoD on July 25, 2014. The DoD paid Clifmax $49,913.71 for the foreign manufactured parts. Subsequent testing by the DoD revealed that the parts had dimensional non-conformances and were unusable.
Calik is also charged with violating the Arms Export Control Act. For both Clifmax and Tunamann, Calik submitted Military Critical Technical Data Agreements in which he claimed his companies were U.S.-based manufacturers. Calik also acknowledged that he understood export control laws and agreed not to disseminate export-controlled data and technical drawings in a manner that would violate export control laws. Based on his false representations, Calik was granted electronic access to drawings and technical data subject to U.S. export control regulations. Beginning in 2009, Calik downloaded approximately one hundred thousand drawings, some of which were subject to U.S. export control regulations. Calik was not in the United States when the majority of the drawings were downloaded and he did not obtain export licenses from the U.S. Department of State.
On May 23, 2013, Calik, who at that time was operating Tunamann, downloaded from a DoD database the technical drawings for parts that go into the NSSN Class Submarine. Those drawings contained warnings stating that the export of the drawings to places outside the United States is restricted by the Arms Export Control Act. Calik was not in the United States when those drawings were downloaded and he did not obtain an export license from the U.S. Department of State for the export of those drawings.
Counts One and Two of the complaint, charging mail fraud, each carry a maximum penalty of 20 years in prison and a fine of $250,000. Count Three carries a maximum penalty of 20 years in prison and a $1 million fine.The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert, and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Andrew M. McLees, with the investigation leading to Calik’s arrest.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
14-324
Calik, Alper Complaint
Former Orange County Auctioneer Sentenced to 2 Years in Federal Prison After Pleading Guilty in Bribery SchemeRead the Press Release
Santa Ana, California – An Orange County auctioneer who defrauded banks by accepting bribes to lower the amount of winning bids in trustee auctions was sentenced today to 24 months in federal prison, announced Acting United States Attorney Stephanie Yonekura and Bill L. Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office.
Reyna Peinado, 48, of Huntington Beach was sentenced this afternoon by United States District Judge Andrew J. Guilford.
According to a plea agreement filed in this case, Peinado conspired with a confederate – identified in court papers by the initials “S.F.” – in a scheme to defraud banks. During the scheme, which started in February 2012 and lasted for about three months, Peinado conducted real estate auctions on the steps of the Orange County Courthouse on behalf of a trustee known as Reliable Posting and Publishing (RPP), which represented banks which held title of the foreclosed properties. Peinado began the auctions with an opening bid for a property located in Orange County, and attendees would then call out bids, all of which the defendant would tally before declaring a winning bidder. Once the trustee sales were conducted, Peinado called in the sale price and used an overnight courier to send a receipt of funds and cashiers’ checks from the winning bidder to RPP, which posted the sale price on the website for the property.
At the conclusion of some of the trustee sales, Peinado contacted the winning bidder to solicit a bribe in order to reduce the purchase price of the property. In return for approximately $5,000 per property, Peinado reduced the sale price from between $15,000 to $57,000 less than the winning bid purchase price. By reducing the purchase price on seven properties, Peinado caused approximately $261,500 in losses to the banks.
This investigation was conducted by the Federal Bureau of Investigation.
Release No. 14-119
- Former Law Office Manager Sentenced in $3 Million Automobile Insurance Fraud Conspiracy
- Former Investor Relations Executive Charged with Insider Trading
Former College Student Pleads Guilty to Unregistered Possession of Ricin-Toxin Found Last Winter in His Dorm Room-Read the Press Release
WASHINGTON – Daniel Milzman, 19, of Bethesda, Md., pled guilty today to a federal offense stemming from the discovery of a plastic bag of lethal ricin in a dormitory room where he was staying while he was a student at Georgetown University.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
Milzman pled guilty to a charge of unregistered possession of a biological agent or toxin. He appeared before the Honorable Ketanji Brown Jackson in the U.S. District Court for the District of Columbia. The plea agreement, which is contingent upon the Court’s approval, calls for a prison sentence falling somewhere within the range of a year and a day to two years of incarceration. Following the prison term, Milzman would be placed on three years of supervised release. He also is subject to financial penalties. Sentencing is scheduled for Nov. 10, 2014.
“Daniel Milzman put himself and others in danger by cooking up a deadly poison in his Georgetown dorm room,” said U.S. Attorney Machen. “Today Mr. Milzman owned up to his reckless behavior and acknowledged his crime before a federal judge. He is very lucky that none of his fellow students were hurt when he decided to manufacture this lethal substance.”
“The FBI, along with D.C. Fire and EMS, acted swiftly to respond to this dangerous situation, to investigate the origin of the ricin, which Mr. Milzman has admitted to possessing, and to assess any remaining potential risks to students on campus,” said Assistant Director in Charge McCabe. “Possessing lethal biological toxins such as ricin is illegal, and those who choose to engage in this risky activity will be prosecuted by our partners at the U.S. Attorney’s Office with the full resources of the FBI.”
According to a statement of offense submitted to the Court today, when law enforcement discovered Milzman’s ricin during the early morning hours of March 18, 2014, he was a student at Georgetown and shared a dormitory room in McCarthy Hall with a roommate.
Prior to law enforcement’s recovery of Milzman’s ricin, on the night of March 17, 2014, Milzman contacted a friend, a student Resident Advisor, and asked whether they could meet; subsequently, the two met in the friend’s dormitory room. When meeting with his friend, Milzman asked if they could have a “confidential” conversation. The Resident Advisor agreed.
During their conversation, Milzman produced a double-wrapped plastic bag containing an off-white powdery substance from his backpack and tossed it on the floor. He told the Resident Advisor that the bag contained ricin, and said that he had made the substance over a period of four days, while on a school break.
The Resident Advisor directly asked Milzman if he intended to use the ricin on another undergraduate student with whom the defendant had a previous personal relationship. Milzman simply shrugged. After Milzman left his friend’s dormitory room, law enforcement officials were notified of the possible presence of ricin in Milzman’s room.
In response to receiving information regarding the possible presence of ricin in Milzman’s dormitory room, on March 18, 2014, at about 2:30 a.m., members of the District of Columbia Department of Fire and Emergency Medical Services and law enforcement officers went to Milzman’s room.
Milzman was taken to a lobby on the first floor of the dormitory, where he voluntarily spoke with law enforcement officers. He admitted that he had made ricin and said that he had placed it in a plastic bag inside his desk. . A small plastic bag containing a powdery substance was located in Milzman’s desk drawer, exactly where Milzman had said it would be. When speaking with law enforcement, Milzman claimed that he intended to use the ricin on himself.
During the investigation, law enforcement confirmed that between Feb. 13 and Feb. 19, 2014, Milzman used key words when searching the Internet that are associated with ricin. Law enforcement also confirmed that from Jan. 1, 2014, through March 18, 2014, Milzman watched various episodes of the television show, “Breaking Bad;” in approximately 13 of the episodes, ricin was used as a weapon to injure or kill someone.”
According to calculations discussed in the Textbook of Military Medicine, Medical Aspects of Chemical and Biological Warfare, a publication of the U.S. Army, and in light of the tests performed on the ricin in this case, the ricin toxin produced by Milzman could have been lethal to an average person weighing 220 pounds, if either inhaled or injected.
Milzman has been in custody since his arrest last March.
In announcing the plea, U.S. Attorney Machen and Assistant Director in Charge McCabe commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance that was provided by the Metropolitan Police Department (MPD), the District of Columbia Department of Fire and Emergency Medical Services, the District of Columbia Department of Forensic Sciences; the Georgetown University Police Department; and the U.S. Department of Homeland Security’s National Bioforensic Analysis Center. They acknowledged the work of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney David Mudd; Paralegal Specialist Rayneisha Booth; Legal Assistant Donice Adams, and former Summer Law Clerks Ryan Sellinger and Samantha Goldberg-Seder.
Finally, they commended the work of Assistant U.S. Attorneys Maia L. Miller and Frederick W. Yette, of the National Security Section, who are prosecuting the matter.
14-206Former Bank Officer Sentenced for Misallocation of Bank FundsRead the Press Release
First State Bank Vice President Made More Than $1.4 Million in Bad Bank Loans
Huntington, W.Va. – A former vice president of First State Bank in Barboursville, West Virginia was sentenced today to five years in federal prison and ordered to repay the bank $1,420,000 in misallocated funds announced United States Attorney Booth Goodwin. Jackie Cantley, 34, previously pleaded guilty on February 18, 2014.Cantley was a vice president at First State Bank responsible for commercial lending. Between January and September of 2012, Cantley authorized a series of loans, in excess of his lending authority, without making required disclosures about family and personal relationships among him and the borrowers. Cantley improperly authorized these loans without loan applications, adequate financial information or sufficient collateral to secure the loans. Cantley knew that the borrowers were not credit-worthy, but nonetheless authorized $1,420,000 in loans that the bank would not have approved had it been aware of Cantley’s actions. Cantley personally benefitted from at least one loan when proceeds were used to purchase a pizza business in which Cantley was a part owner.
This case was investigated by the Federal Deposit of Insurance Corporation (FDIC), the Federal Bureau of Investigation (FBI), and the United States Secret Service. Assistant United States Attorney Eumi Choi was responsible for the prosecution.
Former Art Gallery Employee Indicted with over $1 Million EmbezzlementRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Jeffrey Hall (48, Maitland) with five counts of mail fraud and three counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison for each count. A trial has been scheduled for November 2014.
According to the indictment, Hall worked at a local art gallery that also had locations outside of central Florida. Over a period of at least 2 ½ years, Hall used his position at the gallery to embezzle over $1 million. He did this by diverting proceeds from the sale of artwork to his own personal bank accounts, or to a business account that belonged to him. The indictment further alleges that Hall used artwork of the gallery as loan collateral for himself, and sold some of the gallery’s artwork on eBay.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
Five Sentenced for Johnston County Area Cocaine (Crack) DistributionRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that JOANNE SESSION SMITH, 57, of Clayton, AL MACE, 33, of Smithfield, DWAYNE MAY, 47, of Selma, BRENDA RICHARDSON, 50, of Selma, and CHERIE SNEAD, 40, of Selma, were each sentenced resulting from their earlier guilty pleas to conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base (crack). The charges involved a large scale narcotics ring responsible for selling kilos of crack from around January 1990 to December 21, 2011 in the Johnston County area.
All 5 defendants were sentenced by Senior United States District Judge Malcolm J. Howard. SMITH was sentenced to 168 months imprisonment; MACE was sentenced to 24 months imprisonment; MAY was sentenced to 168 months imprisonment; RICHARDSON was sentenced to 24 months imprisonment; and SNEAD was sentenced to 60 months imprisonment. All of these defendants will also be placed under supervised release for 5 years following their release from prison.
Assistant United States Attorney Jennifer E. Wells stated, “These sentences are a direct result of the diligent and thorough work of the Johnston County Sheriff’s Office. Our partnership with local agencies is an important part of our continued effort to protect the citizens of the Eastern District of North Carolina from long-time drug traffickers such as Ms. Smith.”
According to the investigation, In July 2011, the Johnston County Sheriff’s Office, initiated an investigation related to the distribution of cocaine base (crack). As a result of the investigation, JOANNE SESSION SMITH was identified as a drug trafficker and targeted for prosecution. Furthermore, the other four defendants listed above were identified as participants in SMITH’s drug organization. These individuals assisted SMITH by delivering crack. MAY also assisted the organization by providing protection. Specifically, MAY accompanied SMITH and other co-defendants during multiple drug transactions. After numerous controlled purchases, agents executed search warrants on SMITH’S residence which she shared with MAY, and on SNEAD’S residence and vehicle. Agents seized crack, cocaine, currency, and marijuana during these searches.
Based on the investigation, SMITH is responsible for distributing at least 284.415 kilograms of crack and 64.7 grams of cocaine. SMITH took crack orders from multiple buyers, converted cocaine into crack, packaged the crack for sale, and arranged the delivery of the drugs to the respective buyers.
In addition, SMITH maintained a premise for the purpose of distributing a controlled substance.Investigation of this case was conducted by the Johnston County Sheriff’s Office. Assistant United States Attorney Jennifer E. Wells is handling the prosecution for the government.
Final Defendant Sentenced in Scheme to Use Fresno Trucking Front to Smuggle Cocaine into CanadaRead the Press Release
FRESNO, Calif. — Canadian citizen Armitdeep Mann, 33, of Toronto, Canada, was sentenced today to five years and one month in prison by United States District Judge Anthony W. Ishii for conspiracy to distribute and possess with the intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, between July 1, 2012, and September 21, 2012, Mann and others conspired to smuggle cocaine into Canada by concealing it in legitimate cargo. On September 21, 2012, agents followed one of Mann’s co-conspirators as he went to Los Angeles to deliver eight kilograms of cocaine. Law enforcement seized that cocaine and arrested Mann and additional defendants. A search warrant at the Los Angeles residence where authorities believed the eight kilograms of cocaine had been stored resulted in the seizure of an additional 40 kilograms of cocaine. Mann has been held in custody without bail since his arrest.
On April 7, 2014, co-conspirator Manjot Nanner, 32, of Fresno, was sentenced to one year and 10 months in prison, and on June 2, 2014, co-conspirator Vincent Rivaz-Felix, 29, of Los Angeles, was sentenced to four years and three months in prison for the conspiracy.
This case was the product of an investigation by the Organized Crime Drug Enforcement Task Force, the Drug Enforcement Administration, Fresno Police Department, and the Fontana and Vernon Police Departments. Assistant United States Attorney Kevin Rooney prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Federal, State and Local Programs to Join in A Statewide Awareness CampaignRead the Press Release
Contact:
WVCADV: Joyce Yedlosky / Tonia Thomas, 304-965-3552, 304-534-0641; US Attorney’ Office, Southern District of WV: Tracy Dorsey Chapman, Victim Witness Coordinator, 800-659-8726, (304) 345-2200
US Attorney’ Office, Northern District of WV: Chris Zumpetta-Parr, 304-234-7725Recent charges of domestic violence against well-known professional athletes have heightened public interest in the tools available to assist domestic-violence victims and to prosecute domestic-violence offenses. For the past twenty years, one crucial tool in this area has been the federal Violence Against Women Act, which was enacted in September 1994.
The West Virginia Coalition Against Domestic Violence joins United States Attorneys Booth Goodwin and William Ihlenfeld in recognizing the 20th Anniversary of the Violence Against Women Act.
“The original law had three simple goals: make streets safer for women; make homes safer for women; and protect women’s civil rights.” – Senator Biden, 1990 (lobbying efforts for 1994 passage)
“VAWA ensures that victims have access to crucial services and resources by supporting shelters and local domestic violence and sexual assault programs across the state and country,” stated Joyce Yedlosky, Team Coordinator with the West Virginia Coalition Against Domestic Violence. “It also improves the criminal justice response to violence against women by providing funding for dedicated prosecutors and law enforcement who work as a team with local advocates to keep victims safe and to hold perpetrators accountable.”
United States Attorney Booth Goodwin stated, “Before the passage of VAWA, these cases were difficult to prosecute because they often involved multiple jurisdictions. Abusers often travel between states to stalk or harass their victims or to violate protective orders. Or worse yet, they drag their victims across state lines to take them away from their families and friends and support systems. VAWA equipped federal prosecutors with the necessary tools to overcome these challenges.”“We’ve made a lot of progress in the fight against domestic violence over the past two decades but much more work still needs to be done,” said Northern District U.S. Attorney William J. Ihlenfeld, II. “We must redouble our efforts to prosecute domestic violence offenders who possess firearms despite being prohibited by Federal law.”
Goodwin and Ihlenfeld will join advocates, prosecutors, law enforcement and survivors across the state this week to conduct roundtable discussions on real challenges and solutions to ending violence against women. Press are invited to attend: Tuesday, September 16th:- 3:30 pm – 4:30 pm, Shepherd University, Martinsburg Center, 261 Aikens Center, Martinsburg, WV, room 205 (local press contact: Ann Smith, 304-263-8522 )
Wednesday, September 17th:
- 9:30 am – 11:00 am, Governor Huelett C. Smith Theatre, Tamarack, Beckley, WV; (local press contact: Patricia Bailey, Executive Director or Dee Sizemore, PR Coordinator, 304-255-2559)
- 1:30 pm – 3:00 pm, 704 Bland Street Suite 209, Bluefield, WV (local press contact: Patricia Daniels, Advocate Supervisor, 304-436-8117, ext 25)
Thursday, September 18th:
- 9:00 am – 10:30 am, Marshall University Student Center, Huntington, WV (local press contact: Amanda Weiss McComas, Director, 304-529-2382)
- 12:00 pm – 1:30 pm, YWCA, 1114 Quarrier Street, First Floor O’Connor Aultz Room, Charleston WV; (local press contact: Carol Sun, YWCA Development Director, 304-414-3113 )
- 3:30 pm – 4:30 pm, YWCA Wheeling, 1100 Chapline Street, Wheeling, WV ( local press contact: Patricia Flanigan, Program Director, (304) 232-2748
“Violence against women is the seed to so many other forms of violence and it continues to have devastating effects on families and communities across the country,” stated Yedlosky. “To end violence in our communities, we must first end violence in our homes.”
Additional resources and information about the Violence Against Women Act are attached.20 Years After the Passage of The Violence Against Women Act Resources
“In its totality, the Violence Against Women Act was the first federal law that directly held violence against women as a violation of basic civil rights and fundamental human dignity.” –Vice President Biden, 2013 (http://www.whitehouse.gov/the-press-office/2014/09/09/fact-sheet-standing-women-s-civil-rights-20-years-after-vawa )
"In 1994, VAWA was a long awaited response from the federal government to address the epidemic levels of violence against women in their homes and in their communities," said Kim Gandy, President and CEO of the National Network to End Domestic Violence (NNEDV). "At that time, many states had made progress in addressing domestic and sexual violence, but the federal government did not have a comprehensive response to violence against women." (http://nnedv.org/news/4373-nnedv-honors-vawa-s-20th-anniversary-and-calls-for-ongoing-action.html )
Here are some examples of VAWA’s effectiveness . (https://www.legalmomentum.org/blog/celebrating-20-years-violence-against-women-act ):- Between 1993, the year VAWA was introduced, and 2010, violence against family members and intimate partners in the U.S. declined 67%.
- There has been as much as a 51% increase in reporting of such violence by women and a 37% increase in reporting by men.
- Between 1993 and 2007, the rate of intimate partner homicides of women decreased by 35%, and the rate of intimate partner homicides of men decreased 46%.
- VAWA has saved taxpayers billions of dollars in costs for medical and mental health services, as well as costs for law enforcement and justice system expenditures
In West Virginia, VAWA has contributed to successful initiatives that have lead to:
- Help maintaining 14 licensed domestic violence programs that provide free, confidential, community based, services to all 55 counties in WV.
- Pro arrest laws shifting the responsibility from the victim to the state for filing criminal charges against domestic violence perpetrators;
- A network of community and system based advocates to provide support, education, and legal advocacy as victims walk through the complex, comprehensive legal systems;
- Cross system trainings, collaborative efforts and strategies with a variety of systems that impact families experiencing domestic violence;
- County wide coordinated community response teams to develop and maintain policies and protocols that facilitate safety and accountability;
- Statutory elimination of applying pretrial diversion (as evident in the Ray Rice case) to domestic violence cases preventing domestic violence perpetrators from being able to “erase” their record through a dismissal of charges for good behavior;
- Just recently, WV moved in ranking of states from 8th in the nation to 13th of women murdered by men due to domestic violence (When Men Murder Women: An Analysis of 2012 Homicide Data. http://www.vpc.org/studies/wmmw2014.pdf )
Federal Court Bars Nevada Corporation from Promoting Alleged Tax SchemeRead the Press Release
A federal court has permanently barred Sea Nine Associates Inc. from promoting and selling an alleged nationwide tax scheme that involved using welfare benefit plans to unlawfully increase and accelerate tax deductions and avoid income taxes, the Justice Department announced today.
On Sept. 12, U.S. District Judge Josephine L. Staton for the Central District of California entered a judgment of permanent injunction against Sea Nine.
According to the complaint, welfare benefit plans permit companies to pool together and make monetary contributions toward the purchase of life insurance for the benefit of each participating company’s employees or principals. Participants in legitimate welfare benefit plans may be able to deduct their plan contributions as a business expense. The government alleged that Sea Nine marketed the unlawful welfare benefit plans to more than 200 entities. The injunction order bars Sea Nine from selling and managing any purported welfare benefit plans.
In the past decade, the department’s Tax Division has obtained more than 500 injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the department’s 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. Kenneth Elliott, etc. et al.
Default Judgment and Permanent Injunction Against Sea Nine Associates, Inc.Episcopal Ministries to the Aging Inc. to Pay $1.3 Million for Allegedly Causing Submission of Claims for Unreasonable or Unnecessary Rehabilitation Therapy at Skilled Nursing FacilityRead the Press Release
Episcopal Ministries to the Aging Inc. (EMA), a Maryland not-for-profit corporation that owns skilled nursing facilities, has agreed to pay $1.3 million to the government for submitting false claims to Medicare for unreasonable or unnecessary rehabilitation therapy purportedly provided by RehabCare Group East Inc., a subsidiary of Kindred Healthcare Inc.
“Patient need must dictate the provision of Medicare benefits rather than the fiscal interests of providers,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “ Today’s settlement demonstrates the department’s continued commitment to safeguarding both Medicare beneficiaries and taxpayer dollars by holding accountable all entities involved in billing for unnecessary services, including those that did not directly provide the unnecessary services.”
The settlement resolves allegations that EMA submitted false claims for rehabilitation therapy at William Hill Manor, a skilled nursing facility EMA owns in Easton, Maryland. EMA hired RehabCare to provide rehabilitation therapy services to its patients at that facility starting in 2010. The government alleges that EMA failed to prevent RehabCare from providing unreasonable or unnecessary therapy to patients in order to increase Medicare reimbursement to the facilities. The government contended that among other things the reported therapy did not reflect the lower amounts of therapy generally provided to patients over the course of their stay.
The settlement further resolves allegations that EMA failed to prevent other RehabCare practices designed to inflate Medicare reimbursement, including: in lieu of using individualized evaluations to determine the level of care most suitable for each patient’s clinical needs, presumptively placing patients in the highest reimbursement level unless it was shown that the patients could not tolerate that amount of therapy; providing the minimum number of minutes of therapy required to bill at the highest reimbursement level while discouraging the provision of therapy in amounts beyond that minimum threshold, despite the Medicare requirement that the amount of care provided be determined by patients’ clinical needs; arbitrarily shifting the number of minutes of planned therapy between therapy disciplines to ensure targeted reimbursement levels were achieved and reporting estimated or rounded minutes instead of reporting the actual minutes of therapy provided.
“Patients in our nation’s nursing homes should not be left to wonder whether the therapy they receive is based on their own clinical needs, or is instead tied to the financial targets of the companies providing their care,” said U.S. Attorney Carmen M. Ortiz for the District of Massachusetts. “This settlement makes clear that, when a skilled nursing facility contracts with an outside rehabilitation therapy provider, the facility remains responsible for ensuring that its patients are receiving, and Medicare is paying for, reasonable and necessary care.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the U.S. Department of Health and Human Services-Office of the Inspector General and the FBI . The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Dodge County Woman Sentenced to 10 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Tina L. Cash, of Inglewood, Dodge County, Nebraska, was sentenced on September 15, 2014, to 10 years in prison by United States District Judge Laurie Smith Camp. Cash had previously pled guilty for her involvement in assisting others with distributing methamphetamine after a January 7, 2014, search warrant on an Inglewood residence revealed more than 220 grams of crystal methamphetamine in a bedroom where Cash and another resided. After serving her sentence, Cash will be required to serve a Term of Supervised Release of at least 5 years.
This case was the result of an investigation by the III Corps Task Force.
Detroit Residents Plead Guilty to Defrauding Irs with Identities of Deceased IndividualsRead the Press Release
Two Detroit residents pleaded guilty today to charges of wire fraud and aiding and abetting in the use of false identification, U.S. Attorney Barbara L. McQuade announced today.
United States Attorney McQuade was joined in the announcement by Acting Special Agent in Charge Jarod Koopman, IRS Criminal Investigation.
Brenda Knight and Adreann Turnage, both of Detroit, entered their guilty pleas before U.S. District Court Judge Avern Cohn.
According to court records, Knight and Turnage participated in a scheme with co-defendant Willie Watkins, Knight’s husband, and others, to defraud the United States by using the names and Social Security numbers of recently deceased individuals to prepare fraudulent tax returns. Hundreds of fraudulent 2010 tax returns were filed, claiming refunds of more than $1 million dollars. The returns sought refunds by making false claims for the Earned Income Credit, Education Credits and the Making America Work Credit. The returns were transmitted electronically, utilizing public access internet connections from local hotels and coffee shops. Forty-six fraudulent returns were transmitted using an internet account registered to Turnage. The refunds were directed to bank accounts that were established for the sole purpose of receiving the fraudulent refunds. Willie Watkins had control over a number of the accounts. Knight helped recruit individuals to whom Watkins would issue checks written on the accounts. The recruits would cash the checks and bring the proceeds to Watkins for distribution to participants in the scheme, including Knight and Turnage.
"Using the identities of deceased individuals to commit crimes for financial gain is particularly egregious. Identity theft is a top priority for the IRS-Criminal Investigation and we will continue to detect and investigate these types of cases in order to protect taxpayers from being victimized," Jarod Koopman, Acting Special Agent in Charge IRS-Criminal Investigation.
“This case is a sobering reminder that criminals use the identities of recently deceased individuals to steal their tax refunds,” McQuade said. “We applaud the IRS for their aggressive enforcement of this deplorable crime, and we encourage family members to be vigilant in safeguarding the taxpayer information of their loved ones.”
A sentencing hearing for Knight and Turnage will be set by the court. Wire fraud carries a maximum penalty of 20 years imprisonment and/or a fine of $250,000. Use of false identification with the intent to commit a violation of federal law carries a maximum penalty of 15 years and/or a fine of $250,000.
The investigation of this case was conducted by special agents of the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney Ross MacKenzie and Kenneth Vert, Trial Attorney, Department of Justice, Tax Division.
Dallas Man Sentenced to 15 Years in Federal Prison for Sex Trafficking of A Minor ChildRead the Press Release
DALLAS — A Dallas man who met a 15-year-old female run-away at a bus station, took her, and made her engage in sex acts for money, was sentenced this morning by U.S. District Judge David C. Godbey to 15 years in federal prison and a lifetime of supervised release. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
In June 2014, Dereck Johnson, 33, pleaded guilty to one count of sex trafficking of children. According to documents filed in the case and information revealed at today’s sentencing hearing, on June 1, 2012, a 15-year old female, “Jane Doe,” took $200 from her father before spending the night at a friend’s house. While there, she asked a friend to drive her to a Greyhound station where she bought a ticket, with several transfers, to Arizona where a friend lived. Her bus stopped at the Greyhound station in downtown Dallas, where Johnson approached her. Jane Doe told Johnson she was 15 and that her parents did not know where she was. Johnson told her to go with him, and he would help her find Wi-Fi for her phone. Instead, he called a friend who picked them up and eventually took them to his home.
While at the house, Johnson used methamphetamine and then forced Jane Doe to use it. Johnson then sexually assaulted Jane Doe. When Johnson’s friend came home and discovered Jane Doe was underage, he made them leave. Johnson’s friend then drove them back to the Greyhound bus station where Johnson and Jane Doe took a taxi to a Flying J Truck stop. There, they got a ride from a truck driver to a Love’s truck stop near another Greyhound station in Dallas. At that bus station, Jane Doe used a Greyhound employees’ cellphone to call her father to come pick her up, but she was unable to describe exactly where she was. She rushed off the phone, and Johnson was waiting for her. He told her not to contact her father again, that she was staying with him, and she needed to come with him. Jane Doe’s father called the number back and spoke to a Greyhound employee, who told him Jane Doe had left with a man.
Johnson took Jane Doe back to the Love’s truck stop with him, where he begged for money. Johnson found a truck driver who was willing to drive them to Houston, where they were dropped off at a Flying J truck stop. Johnson told Jane Doe they needed to make money so she needed to go into a specific man’s truck cab. After entering the man’s truck cab, the man repeatedly raped her and then provided Johnson compensation for the sex. Johnson forced Jane Doe to engage in several commercial sex acts while at the truck stop.
A few days later, on June 5, 2012, Johnson sent her to take a shower, and while she was in the bathroom at the truck stop, she plugged in her prepaid cellphone and was able to send out a text message for the first time since arriving at the truck stop. She was rescued soon thereafter by a local family member.
At sentencing, the now 18-year-old Jane Doe read a victim impact statement addressing the court, speaking to Dereck Johnson. In that statement, Jane Doe read, “I head you screaming at me telling me I was worthless…but you started the fire behind my drive and after that you stood no chance. I know you can’t stand the fact that I no longer fear you. That nobody will ever fear you again… That I survived when you didn’t, that you are alone. So knowing that is punishment enough for me.” She continued, “No one is ever going to be able to trick me again, not like you did.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Dallas Police Department investigated. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
Coffee County Man Sentenced to Serve 24 Years for Possession of A Firearm by A FelonRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 15, 2014, Victor Stitt, 32, of Manchester, Tenn., was sentenced to serve 290 months in prison by the Honorable Harry S. Mattice Jr., U.S. District Judge. The sentence was the result of a conviction after a jury trial in April 2014.
During trial, the jury learned that Coffee County Sheriff’s Deputies responded to a domestic violence assault call at the residence of Stitt’s then girlfriend, after receiving information that he had assaulted her and threatened her with a handgun. He had left the scene before the deputies arrived, but was subsequently located at his family’s house in Cannon County, Tenn. At that time, Stitt was within arm’s reach of a handgun.
Stitt’s lengthy sentence was a result of his classification as an armed career criminal, which was based his nine prior convictions for aggravated burglary. As a result, he faced a mandatory sentence of at least 15 years in prison.
The indictment and subsequent conviction of Stitt was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Coffee County Sheriff’s Office. Assistant U.S. Attorneys Terra L. Bay and Meredith J. Edwards represented the United States at trial.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Cleveland Man Pleads Guilty to Possession of Stolen FirearmRead the Press Release
Charleston, WV – A Cleveland, Ohio man pleaded guilty today to illegally possessing a stolen firearm, announced U.S. Attorney Booth Goodwin. James Herod III, 33, pleaded guilty in federal court in Charleston.
Herod admitted that on August 23, 2013, he was approached by police officers at the Greyhound Bus Station in Charleston. Herod, who had both a stolen firearm and marijuana in his possession ran from the officers and attempted to discard the pistol while the officers were chasing him. Herod had previously stolen the firearm in Putnam County, West Virginia. Herod faces up to 10 years in prison when he is sentenced on December 16, 2014.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Church Point Woman Pleads Guilty to Stealing from EmployerRead the Press Release
LAFAYETTE, La. –A Church Point woman pleaded guilty to stealing more than $197,000 from her employer over a five-year period, U.S. Attorney Stephanie A. Finley announced today.
Michelle Dana Lavergne, 36, of Church Point, La., pleaded guilty before U.S. District Judge Richard Haik for three counts of making and possessing a forged security, as part of a larger fraudulent scheme. According to evidence presented at the guilty plea, from April 1, 2008 to April 30, 2013 Lavergne used her position at a Lafayette law firm to embezzle funds by writing checks to herself and another employee in various amounts ranging from $350 to $5,500. The checks totaled $197,371.53 over a five-year period. She worked at the law firm for 13 years as a financial secretary and paralegal. Lavergne had access to the business checks because of her position. She obtained pre-signed checks to pay bills or she forged the signature, so she could deposit the checks into her personal account.
Lavergne faces up to 10 years in prison, three years of supervised release, forfeiture, and a $250,000 fine for each count.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Chillicothe Couple Sentenced for $4 Million Theft, Money Laundering, False Tax ReturnRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Chillicothe, Mo., husband and wife were sentenced in federal court today on charges involving the wife’s embezzlement of nearly $4 million from her employer and for the couple jointly filing a false income tax return not claiming the income from the wire fraud scheme.
Donna M. Preszler, 61, and her husband, Terrance W. Preszler, 64, both formerly of Chillicothe, were sentenced by U.S. District Judge Fernando J. Gaitan. Donna Preszler was sentenced to five years and 10 months in federal prison without parole. Terrance Preszler was sentenced to three years in federal prison without parole, which is the statutory maximum. The court also ordered the Preszlers to pay $4,049,121 in restitution to Burdg, Dunham & Associates Construction Corp. and $1,236,690 in restitution to the Internal Revenue Service, for a total restitution amount of $5,285,811.
The court also ordered the Preszlers to forfeit to the government a money judgment of $3,912,000, two residential lots, two 14kt diamond rings, eight vehicles (a 2007 Ford Taurus, a 2007 Mazda CX-7, a 2011 Nissan Versa, a 2010 Nissan 370Z, a 2010 Ford F150, a 2010 Ford Escape, a 2012 Ford Explorer and a 2012 Nissan Rogue), three 2011 Yamaha ATVs and several bank and funeral trust accounts, all of which was derived from the proceeds of the criminal violations.
On Feb. 13, 2014, Donna Preszler pleaded guilty to wire fraud, money laundering and filing a false income tax return. Terrance Preszler pleaded guilty to filing a false income tax return.
Donna Preszler was employed at Burdg, Dunham & Associates Construction Corp. (BDA) in Hamilton, Mo., from 2001 until June 2012, working as an accounting manager since 2004. BDA is a general contractor specializing in retail construction of malls, strip centers, family life centers, and other stand-alone projects. BDA serves customers in all 50 states, Puerto Rico and Canada, primarily building for national retail organizations.
Donna Preszler admitted that she embezzled $3,912,000 in a wire fraud scheme that lasted six years, from June 30, 2006 through June 15, 2012. She also admitted that she conducted financial transactions that involved the proceeds of her criminal activity.
Donna and Terrance Preszler each admitted that they failed to report the fraudulently obtained funds on their federal income tax returns for tax years 2007 through 2012. During that time, the Preszlers filed their federal income tax returns jointly and should have paid $1,236,690 in taxes on their unreported fraudulent income from BDA. For example, the Preszlers claimed their income in 2012 was only $46,863. Including the embezzled funds, according to today’s plea agreements, their income was actually $851,863 and they should have paid an additional $253,641 in taxes.
Donna Preszler utilized her role as accounting manager to add false and fictitious non-taxable payments, such as expense reimbursements, to herself. Donna Preszler transferred approximately $3,912,000 in fraudulent payments to herself and her family.
Donna Preszler also added false and fictitious overtime hours and overtime pay to her weekly payroll. Donna Preszler received $137,121 in unauthorized overtime payments to herself from November 2004 through June 2006, which were subject to BDA withholding income taxes.
Donna Preszler concealed her transfers by password protecting her payroll information, creating false and fictitious expense accounts and otherwise manipulating BDA’s payroll and accounting records.
This case was prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the FBI and IRS-Criminal Investigation.Buffalo Man Indicted for Social Security FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr., announced today that a federal grand jury has indicted Ari Elias Baum, 30, of Buffalo, N.Y., on charges of Supplemental Security Income (SSI) benefits fraud, theft of government property, and making a material false statement. The charges carry a maximum penalty of 10 years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the indictment, Baum was out of the United States from March 22, 2013, through August 13, 2013. During that time, the defendant was wrongfully collecting SSI disability benefits. Baum failed to report his absence from the country as required, and during a redetermination interview conducted on December 19, 2013, the defendant stated that he had not been out of the country since March 1, 2013. Baum’s absence from the United States resulted in an overpayment of Social Security benefits totaling $4,277.23.
The indictment is the result of an investigation on the part of the United States Social Security Administration, Office of the Inspector General, under the direction of Special Agent-in-Charge Edward J. Ryan and the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.Brothers Plead Guilty to Trafficking Fifty or More Kilos of MarijuanaRead the Press Release
PROVIDENCE, R.I. – Benjamin J. Daniels, 37, of West Bountiful, Utah, pleaded guilty in U.S. District Court in Providence, R.I., today to participating in a conspiracy to ship 239 pounds of marijuana to Rhode Island from Pennsylvania in December 2013, announced United States Attorney Peter F. Neronha and Michael S. Shea, Acting Special Agent in Charge Homeland Security Investigations (HSI) for New England.
Appearing before U.S. District Court Chief Judge William E. Smith, Benjamin Daniels pleaded guilty to conspiracy to distribute and posses with the intent to distribute fifty kilograms or more of marijuana. His brother, Michael Daniels, 32, of Tiverton, R.I., admitting to his role in the conspiracy, pleaded guilty on August 28, 2014, to conspiracy to distribute and posses with the intent to distribute fifty kilograms or more of marijuana.
According to information presented to the court, in December 2013, HSI agents in Pittsburgh, in conjunction with Customs and Border Protection Air and Marine Division in Riverside, CA, conducted an investigation of a single-engine aircraft located at an airport in New Castle, PA. A court authorized search of the aircraft resulted in the discovery of twelve sealed boxes marked “Sun Max, Hot Water Solutions” which contained a total of 239 pounds of marijuana. HSI agents determined that Benjamin Daniels arranged for the pilot to fly the packages to New England for delivery, either to Benjamin Daniels or a person designated by him.
According to information presented to the court, on December 16, 2013, federal agents followed the shipment from Pennsylvania to North Central Airport in Smithfield, RI. Once on the ground, at the direction of Benjamin Daniels, the pilot made arrangements to transport the boxes to a hotel in Lincoln, RI. Once at the hotel, the pilot was instructed by Benjamin Daniels to meet up with a person who looked just like him. Federal agents watched as Michael Daniels pulled into the hotel parking lot, met with the pilot and began loading the boxes into a rented vehicle that he was driving. HSI agents arrested Michael Daniels, and seized the twelve boxes of marijuana and $4,694 in cash found on Michael Daniels’ person.
Michael Daniels is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on November 14, 2014. Benjamin Daniels is scheduled to be sentenced on December 19, 2014.
Conspiracy to distribute and posses with the intent to distribute fifty kilograms or more of marijuana is punishable by statutory penalties of up to 20 years in federal prison, a fine of up to $1,000,000 and a term of supervised release of up to life, with a minimum mandatory term of 3 years.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The Rhode Island State Police High Intensity Drug Trafficking Area Task Force and Warwick Police Department assisted in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Bay Area Resident Pleads Guilty to Tax EvasionRead the Press Release
FRESNO, Calif. — Bay Area resident William James Kennedy, 68, pleaded guilty today to making and subscribing a false tax return, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kennedy sent tax returns to the Fresno IRS office in 2002, 2003, 2004 and 2005, in which he underreported his taxable income. Kennedy, as a financial advisor, touted a variety of tax avoidance schemes, such as the use of corporation “soles” (a corporate form that enables religious leaders to hold property and conduct business for the religious entity) and debt elimination programs, to his clients in order to allow them to avoid paying income taxes. For his financial services, Kennedy was compensated by his clients but failed to properly report that income on his tax returns. In 2002, he claimed an improper charitable deduction to an entity that was one of his own corporation soles. As a result of Kennedy’s conduct, the United States incurred a tax loss of approximately $627,000. As part of his plea agreement, Kennedy will pay restitution to the IRS in this amount.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
Kennedy is scheduled to be sentenced by United States District Judge Anthony W. Ishii on November 24, 2014. Kennedy faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Barrington Bank Robber Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Pierre S. Rheau, 34, of Providence, was sentenced on Friday to 63 months in federal prison for robbing a Barrington branch office of Bank of America while armed with a BB gun, announced United States Attorney Peter F. Neronha, Barrington Police Chief John M. LaCross, East Providence Police Chief Christopher J. Parella and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Rheau to serve 3 years supervised release upon completion of his prison term and to pay restitution to the bank in the amount of $4,871. Rheau pleaded guilty on May 14, 2014, to bank robbery and conspiracy to commit bank robbery, as charged in a two-count federal indictment.
A co-defendant in this matter, David Lasseque, 33, of Providence, was convicted at trial by a jury on June 24, 2014, of one count each of bank robbery and conspiracy to commit bank robbery. Lassegue is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 26, 2014.
According to information presented to the court, late in the afternoon of July 12, 2013, Pierre Rheau entered the Bank of America branch office while brandishing a .177 caliber BB gun. Rheau demanded money from bank tellers. Rheau fled the bank with approximately $4,871 in cash and returned to a vehicle operated by David Lasseque.Responding to a report of a bank robbery, members of the Barrington Police Department attempted to affect a traffic stop of the vehicle being driven by Lasseque. However, Lasseque refused to comply and fled, driving into East Providence with police vehicles in pursuit. The pursuit ended when Lasseque crashed his vehicle into an East Providence Police cruiser, injuring an officer. Lasseque attempted to flee on foot, but he was quickly apprehended. Rheau, who had been in the back seat of the vehicle, was arrested as he attempted to exit the vehicle. From inside the vehicle, officers seized clothing, sunglasses and latex gloves that matched the description witnesses stated were worn by the bank robber.
Additionally, officers seized a BB gun and a pile of loose money.
Both men have been detained since their arrest.
The cases are being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
Warren Police and Rhode Island State Police assisted Barrington and East Providence Police and the FBI in the investigation of this matter.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Baltimore Felon Exiled to 15 Years in Prison for Armed CarjackingRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced James Kidd, age 28, of Baltimore, Maryland, today to 15 years in prison, followed by three years of supervised release, for carjacking. Judge Hollander found that Kidd is a career offender, based on two previous convictions for robbery and drugs.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Kidd’s plea agreement, on September 9, 2012, Kidd approached the driver of a Ford Expedition and said he would pay him for a ride. Kidd asked the driver to take him from the corner of North Avenue and Charles Street to the 5800 block of Oakview Road in Baltimore to pick up his girlfriend and kids. Once they arrived at the location, Kidd took out a silver handgun, racked the slide to load the gun, pointed the gun at the driver, and ordered the driver out of the car, demanding the driver’s money and cell phone. The driver gave Kidd his two cell phones and his wallet (which contained $2) and got out of the vehicle. Kidd ordered the driver to lie on the ground and drove away.
On September 12, 2012, in relation to a burglary investigation, Baltimore City police officers were called to 2010 North Patterson Avenue in Baltimore and recovered a loaded 9mm .380 handgun from Kidd’s front pants pocket. That weapon matched the description of the gun given by the victim of the carjacking, and was stolen from another residence on North Patterson Avenue. On September 17, the carjacking victim’s phone was recovered from 2010 North Patterson Avenue.
United States Attorney Rod J. Rosenstein commended the ATF, FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg and Debra L. Dwyer, who prosecuted the case.
Bakersfield Man Pleads Guilty in Methamphetamine CaseRead the Press Release
FRESNO, Calif. —Dimas Mazon, 29, of Bakersfield, pleaded guilty today to conspiring to distribute and possess with the intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on October 23, 2012, Mazon arranged a one-pound methamphetamine sale. Mazon also admitted that the conspiracy involved approximately 444 grams of pure methamphetamine.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southern Tri-County HIDTA Task Force and the Bakersfield Police Department. Assistant United States Attorney Kevin Rooney is prosecuting the case.
Mazon is detained and being held without bail. He is scheduled to be sentenced on December 13, 2014, by United States District Judge Lawrence J. O'Neill. Mazon faces a possible maximum sentence of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Bakersfield Drug Dealer Sentenced to over 11 Years in PrisonRead the Press Release
FRESNO, Calif. —Gamaliel Salas-Mendoza, aka Rene Salas-Mendoza (Salas), 38, an undocumented alien from Mexico, was sentenced today to 11 years and eight months in prison for conspiring with his cousin Miguel Sanchez-Mendoza, 46, to distribute and to possess with the intent to distribute methamphetamine, heroin, and cocaine, United States Attorney Benjamin B. Wagner announced. United States District Judge Anthony W. Ishii also ordered Salas to register as a drug offender.
Salas was sentenced following his guilty plea in June. According to court documents, Salas and his cousin maintained a stash house in Bakersfield from where law enforcement officers seized seven pounds of methamphetamine, one and a half pounds of cocaine, and a half‑pound of heroin, all packaged for sale. In addition to the drugs, officers found and seized digital scales, precursor chemicals used in the manufacture of methamphetamine, and $9,483 in cash. The cash has been forfeited as proceeds of drug trafficking.
Sanchez pleaded guilty and was sentenced on April 28, 2014, to eight years in prison. Both men are subject to deportation following completion of their sentences.
This case is the product of an investigation by the U.S. Drug Enforcement Administration, Kern County Sheriff’s Office Narcotics Enforcement Team, Kern County Sheriff’s Office Major Violators Unit, and the California Multijurisdictional Methamphetamine Enforcement Team. Assistant United States Attorney Karen Escobar prosecuted the case.
Attorney General Holder Records Message for Cartoon Network’s “I Speak up” Campaign to Combat BullyingRead the Press Release
The Justice Department announced Monday that Attorney General Eric Holder has recorded a video message as part of the Cartoon Network’s “I Speak Up” campaign to combat bullying. The project urges young people to speak up in order to help bring bullying situations to an end.
The goal of the campaign is to collect one million user-generated videos that unite the voices of kids, parents, educators, celebrities and government officials all saying “I Speak Up.” Attorney General Holder joined other notable voices such as Education Secretary Arne Duncan, as well as actors and professional athletes, in recording a message for the campaign.
In his video, the Attorney General delivers the following message: “The violence of bullying has a devastating effect on young people. Help me defend childhood by speaking up for those who – too often – cannot speak for themselves. I’m Attorney General Eric Holder, and I am joining Cartoon Network to challenge one million people to speak up against bullying. Please go to StopBullyingSpeakUp.com to learn more.”
The full video of the Attorney General’s message is available at https://www.youtube.com/watch?v=NMH5Abirdaw.
Attorney General Holder Records Message for Cartoon Network’s “I Speak up” Campaign to Combat BullyingRead the Press Release
WASHINGTON—The Justice Department announced Monday that Attorney General Eric Holder has recorded a video message as part of the Cartoon Network’s “I Speak Up” campaign to combat bullying. The project urges young people to speak up in order to help bring bullying situations to an end.
The goal of the campaign is to collect one million user-generated videos that unite the voices of kids, parents, educators, celebrities and government officials all saying “I Speak Up.” Attorney General Holder joined other notable voices such as Education Secretary Arne Duncan, as well as actors and professional athletes, in recording a message for the campaign.
In his video, the Attorney General delivers the following message: “The violence of bullying has a devastating effect on young people. Help me defend childhood by speaking up for those who – too often – cannot speak for themselves. I’m Attorney General Eric Holder, and I am joining Cartoon Network to challenge one million people to speak up against bullying. Please go to StopBullyingSpeakUp.com to learn more.”
The full video of the Attorney General’s message is available at https://www.youtube.com/watch?v=NMH5Abirdaw.
Attorney General Holder Announces Pilot Program to Counter Violent ExtremistsRead the Press Release
Attorney General Eric Holder announced Monday that the Justice Department will launch a new series of pilot programs in cities across the country to bring together community representatives, public safety officials and religious leaders to counter violent extremism. The new programs will be run in partnership with the White House, the Department of Homeland Security, and the National Counterterrorism Center.
“Today, few threats are more urgent than the threat posed by violent extremism,” Attorney General said in a video message posted on the Justice Department’s website. “And with the emergence of groups like ISIL, and the knowledge that some Americans are attempting to travel to countries like Syria and Iraq to take part in ongoing conflicts, the Justice Department is responding appropriately.”
The complete text of the Attorney General’s video message is below:
“Last week, millions of Americans paused to mark the 13th anniversary of the attacks of September 11, 2001 – the deadliest acts of terror ever carried out on American soil. For my colleagues at every level of our nation’s Department of Justice, and for me, this anniversary was also a solemn reminder of our most important obligation: to ensure America’s national security and protect the American people from a range of evolving threats.
“Today, few threats are more urgent than the threat posed by violent extremism. And with the emergence of groups like ISIL, and the knowledge that some Americans are attempting to travel to countries like Syria and Iraq to take part in ongoing conflicts, the Justice Department is responding appropriately.
“Through law enforcement agencies like the FBI, American authorities are working with our international partners and Interpol to disseminate information on foreign fighters in Syria and Iraq, including individuals who have traveled from the United States. We have established processes for detecting American extremists who attempt to join terror groups abroad. And we have engaged in extensive outreach to communities here in the U.S. – so we can work with them to identify threats before they emerge, to disrupt homegrown terrorists, and to apprehend would-be violent extremists. But we can – and we must – do even more.
“Today, I am announcing that the Department of Justice is partnering with the White House, the Department of Homeland Security, and the National Counterterrorism Center to launch a new series of pilot programs in cities across the nation. These programs will bring together community representatives, public safety officials, religious leaders, and United States Attorneys to improve local engagement; to counter violent extremism; and – ultimately – to build a broad network of community partnerships to keep our nation safe. Under President Obama’s leadership, along with our interagency affiliates, we will work closely with community representatives to develop comprehensive local strategies, to raise awareness about important issues, to share information on best practices, and to expand and improve training in every area of the country.
“Already, since 2012, our U.S. Attorneys have held or attended more than 1,700 engagement-related events or meetings to enhance trust and facilitate communication in their neighborhoods and districts. This innovative new pilot initiative will build on that important work. And the White House will be hosting a Countering Violent Extremism summit in October to highlight these and other domestic and international efforts. Ultimately, the pilot programs will enable us to develop more effective – and more inclusive – ways to help build the more just, secure, and free society that all Americans deserve.
“As we move forward together, our work must continue to be guided by the core democratic values – and the ideals of freedom, openness, and inclusion – that have always set this nation apart on the world stage. We must be both innovative and aggressive in countering violent extremism and combating those who would sow intolerance, division, and hate – not just within our borders, but with our international partners on a global scale. And we must never lose sight of what violent extremists fear the most: the strength of our communities; our unwavering respect for equality, civil rights, and civil liberties; and our enduring commitment to justice, democracy, and the rule of law.”
The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Army Sergeant Pleads Guilty for Scheme to Defraud the MilitaryRead the Press Release
WASHINGTON – An Army sergeant pleaded guilty today to bribery and conspiracy to defraud the government for his role in a scheme to steal more than one million gallons of fuel from the U.S. military for resale on the black market in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina, Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service (DCIS) Southeast Field Office, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division, Director Frank Robey of the U.S. Army Criminal Investigation Command (CID) Major Procurement Fraud Unit (MPFU) and Special Inspector General for Afghanistan Reconstruction John F. Sopko made the announcement.
Christopher Ciampa, 32, of Lillington, North Carolina, entered his guilty plea before U.S. District Court Judge Terrence W. Boyle of the Eastern District of North Carolina. The sentencing hearing was scheduled for the week of December 15, 2014.
“Sergeant Ciampa took bribes to help steal millions of dollars’ worth of fuel meant to support U.S. military operations in Afghanistan,” said Assistant Attorney General Caldwell. “His greed put his fellow soldiers at greater risk, and his actions stand in stark contrast to the integrity and sacrifice demonstrated every day by the men and women of our Armed Forces.”
“The DCIS, with our investigative partners, continues to aggressively pursue those who deprive the Department of Defense of much needed resources, such as fuel, critical to accomplishing its global missions,” said DCIS Special Agent in Charge Khin. “Corruption and theft in a combat environment, especially on such a large scale, degrade the effectiveness of the U.S. armed forces, and increases the danger to our warfighters by diverting those resources to our enemies
“Sergeant Christopher Ciampa betrayed his unit and nation for personal profit by entering into illegal relationships in order to personally profit from the sale and transport of fuel valued at millions of dollars,” said FBI Special Agent in Charge Strong. “These actions, especially in a wartime environment, damage the reputation of all soldiers and impede the success of coalition war efforts. Those who put the reputation and lives of their fellow servicemen and women at risk will be aggressively pursued by the FBI and our military partners dedicated to upholding justice.”
“Our highly-trained special agents are experts in fraud investigations and untangling webs of lies and deceit,” said CID MPFU Director Robey. “Whether an individual is in or out of uniform, it makes no difference, we will do everything in our investigative power to see those who defraud the Army brought to justice.”
“The crimes alleged in this case are serious and describe actions that undermine our mission in Afghanistan,” said Special Inspector General Sopko. “SIGAR will continue to work tirelessly to protect the American taxpayers’ hard earned money and bring the full weight of the justice system to bear on anyone who seeks to rob the U.S. government.”
According to his plea agreement, Ciampa was deployed to Afghanistan with the 3rd Special Forces Group Service Detachment and was assigned to Camp Brown at Kandahar Air Field between February 2011 and January 2012. During the deployment, one of Ciampa’s chief responsibilities was management of the Transportation Movement Requests (TMRs) for fuel and other items in support of military units in Afghanistan paid for by the U.S. government.
Over the course of the conspiracy, Ciampa and others created and submitted false TMRs for the purchase of thousands of gallons of fuel that were neither necessary nor used by military units. Instead, Ciampa and his co-conspirators stole the fuel and resold it on the black market in neighboring towns. Between February 2011 and December 2011, they created false TMRs for 114 large fuel tanker trucks, which could each carry approximately 10,000 gallons of fuel. All of the TMRs were awarded to a single Afghan trucking company, despite significantly higher rates charged by this company.
As a result of the criminal conduct, the United States suffered a total loss of $10,812,000. The loss resulted from stolen fuel and payments on the fraudulent TMRs in the following amounts: $9,120,000 in lost fuel and $1,692,000 in fraudulent TMRs for the 114 large tanker trucks.
Ciampa admitted that he and his co-conspirators sent some of the illicit proceeds back to the United States via wire transfer and carried some of the cash in their luggage, and Ciampa hid $180,000 of stolen funds inside stereo equipment that he shipped back to North Carolina with his unit’s gear. He used his share of the proceeds from the scheme to purchase a truck and other personal items.
The case was investigated by DCIS, FBI, CID MPFU and the Special Inspector General for Afghanistan Reconstruction (SIGAR). The case is being prosecuted by Trial Attorney Wade Weems on detail to the Criminal Division’s Fraud Section from SIGAR and Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina.
Armed Drug Trafficking Pleads Guilty to Drug, Firearms ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Luis Abril, 31, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to conspiracy to possess with intent to distribute and to distribute 28 grams or more of crack cocaine and 100 grams or more of heroin, and possession of firearms in furtherance of a drug trafficking crime. The charges carry mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $5,250,000 or both.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Abril was a member of a Rochester-based drug conspiracy led by Raymond Collazo, in which large quantities of crack cocaine and heroin were processed, packaged and resold in various quantities in Rochester. Abril and Collazo utilized multiple locations, including 617 Ridgeway Avenue in Rochester to store, process and distribute the narcotics, and armed themselves while doing so.
On April 24, 2014, Abril, Collazo and others were arrested following the execution of multiple search warrants in Rochester, as well as Collazo’s residence in Orlando, Florida. Abril and Collazo were taken into custody at 617 Ridgeway Avenue, where officers seized over 12 grams of cocaine packaged for sale, 200 grams of heroin, three loaded handguns, one of which was stolen, dozens of rounds of ammunition, $2,466 in U.S. currency, and paraphernalia for processing, packaging, and distributing cocaine and heroin.
Charges are pending against Collazo. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The conviction is the culmination of an investigation by the Organized Crime Drug Enforcement Task Force, and included involvement by the part of Rochester Police Department, under the direction of Chief Michael Ciminelli, Special Agents of the Federal Bureau of Investigation, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, New York Field Division, Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
Sentencing is scheduled for December 17, 2014 at 10:00 am before Judge Siragusa.Albuquerque Man Pleads Guilty to Possessing Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
ALBUQUERQUE – Ronald Lewis Chavez, 46, of Albuquerque, N.M., pleaded guilty today to possessing a firearm in furtherance of a drug trafficking crime charge. Under the terms of his plea agreement, Chavez will be sentenced to 12 years in federal prison followed by a term of not more than five years of supervised release.
Chavez was arrested on Jan. 27, 2014, based on a criminal complaint charging him with possession of methamphetamine with intent to distribute and possession of a firearm by a convicted felon. Chavez subsequently was indicted in Feb. 2014, charging him with possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm and ammunition.
According to court filings, law enforcement officers seized a handgun located underneath the mattress of Chavez’ bed and ammunition that was concealed in two black boxes next to the bed when they executed a search warrant at his residence in southwest Albuquerque on Jan. 24, 2014. Officers also seized plastic bags containing methamphetamine from a fanny pack buckled around Chavez’ torso.
Today Chavez pled guilty to possession of a firearm in furtherance of a drug trafficking crime. Chavez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Louis E. Valencia.
14 September 2014
Westerly Resident Admits to Fraudulently Collecting Federal Disaster Unemployment Assistance, Social Security Disability Benefits, SNAP BenefitsRead the Press Release
PROVIDENCE, R.I. – Donald S. Gingerella, 53, of Westerly, pleaded guilty in U.S. District Court in Providence on Friday to theft of government funds and Social Security fraud, after an investigation revealed that since January 2008, Gingerella collected nearly $83,000 from various federally funded public assistance programs to which he was not entitled. He faces statutory penalties of up to 25 years in federal prison when he is sentenced on December 11, 2014.
Donald Gingerella’s guilty plea is announced by United States Attorney Peter F. Neronha; Robert L. Panella, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations; William G. Squires, Special Agent in Charge of the Northeast Region of the United States Department of Agriculture, Office of Inspector General; and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
At the time of his guilty plea, Gingerella admitted to the court that he applied for and collected a total of $82,346 in public assistance payments based on fraudulent statements made to the Rhode Island Department of Labor and Training (RIDLT), the Social Security Administration (SSA) and the Supplemental Nutrition Assistance Program (SNAP), all federally funded programs.
According to information presented to the court, in November 2012, following Hurricane Sandy, Gingerella applied for Disaster Unemployment Assistance benefits, claiming the storm resulted in his being unemployed. As proof of employment Gingerella provided an IRS document claiming income in 2011 from self-employment.Among the false claims he made on his application to RIDLT, Gingerella stated that he was not receiving SNAP benefits and that he was not receiving Social Security disability benefits. RIDLT investigators researched Gingerella’s claims and determined that they were false. While investigating Gingerella’s November 2012 claim for benefits, RIDLT investigators discovered that Gingerella was the recipient of Disaster Unemployment Assistance benefits as the result of the March 2010 floods. After denying his immediate request for assistance, all of the information gathered by RIDLT was turned over to the U.S. Department of Labor – Office of Inspector General (DOL- OIG) for further investigation.
According to information presented to the court, the investigation by DOL-OIG revealed that Gingerella received federally funded unemployment benefits following the March 2010 flood, based on a claim submitted to RIDLT. At the time, Gingerella claimed that his business, AAA Recreational, was “under six feet of water” and that most of his equipment “was damaged and most got sucked away in [the] river.” The most recent investigation revealed that no such business existed. At the time of his guilty plea, Gingerella admitted to the court that, based on fraudulent statements he made following the March 2010 flood, he received federally funded unemployment compensation totaling $15,417 to which he was not entitled.
The investigation by DOL-OIG also determined that from approximately 2008-2012, numerous unexplained cash deposits were made into numerous business bank accounts controlled by Gingerella, as well as paychecks he earned while working as a lifeguard in Westerly and while working at a marina. Upon discovering this information, agents investigated Gingerella’s eligibility for SNAP benefits and SSDI benefits.The investigation revealed that in November 2006, when applying for SNAP benefits and in subsequent re-certifications, Gingerella inflated his living expenses and failed to report income, including cash deposited into his bank accounts. The investigation revealed that Gingerella began to receive SNAP benefits in 2006. At the time of his guilty plea, Gingerella admitted to failing to disclose income and making false statements which led to him receiving at least $11,366 in SNAP benefits to which he was not entitled between 2008-2012.
Additionally, it was learned that Gingerella owned and operated several businesses over the years, including Don’s Beach Parking, Three Fish Fisheries, AAA Recreational, East Coast Hospice Furniture LLC, and Goldstar Rentals and Sales LLC. At different times, these businesses were listed as the owner of Gingerella’s Westerly property and of some of his vehicles, including three late model trucks and a 2009 Kawasaki motorcycle. Gingerella received income from work performed for these businesses, which he failed to report to the Social Security Administration. At the time of his guilty plea, Gingerella admitted that he knowingly failed to report his return to work and his earned income, and that he received $56,563 in SSDI benefits to which he was not entitled.
Appearing before U.S. District Court Judge Mary M. Lisi, Gingerella pleaded guilty to two counts of theft of government property and one count of Social Security fraud.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
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12 September 2014
York Man Charged with Being A Convicted Felon in Possession of A FirearmRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shannon Williams, age 36, of York, Pennsylvania was indicted and charged with being a felon in possession of a firearm and ammunition.
According to U.S. Attorney Peter Smith, on March 19, 2014, police were dispatched to a York residence in response to a domestic disturbance complaint. During a consent search, police located a gun allegedly used to threaten the victim of the domestic incident. Williams is a previously convicted felon prohibited from possessing firearms. If convicted, Williams faces a term of imprisonment of up to ten years and a fine of $250,000.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Wisconsin Pharmacist and Nevada Pharmacologist <br /> Charged with Smuggling Counterfeit Pharmaceuticals<br /> Using a Costa Rican Internet PharmacyRead the Press Release
A Wisconsin pharmacist and a Nevada pharmacologist were arraigned on an indictment today in Federal Court in Central Islip, New York, before United States Magistrate Judge Gary Brown. The defendants are charged with conspiring to supply at least four million misbranded and counterfeit pharmaceuticals to an illegal Internet pharmacy based in Costa Rica that catered to U.S. customers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; United States Attorney Loretta E. Lynch of the Eastern District of New York; Assistant Director in Charge George C. Venizelos of the FBI’s New York Field Office; Acting Special Agent in Charge James Royal of the U.S. Food and Drug Administration (FDA), Office of Criminal Investigations’ New York Field Office and Special Agent in Charge James T. Hayes Jr. of Homeland Security Investigations’ (HSI) New York Field Office made the announcement.
The 10-count indictment charges Marla Ahlgrimm, 59, of Madison, Wisconsin, and Balbir Bhogal, 67, of Las Vegas, Nevada, with importing and distributing controlled substances and misbranded drugs, trafficking in counterfeit drugs, mail and wire fraud, smuggling and money laundering.
According to the indictment and information presented at the arraignment, from June 2007 through May 2010, Ahlgrimm and Bhogal, who is a dual U.S. and Indian citizen, allegedly arranged for the manufacture in India of millions of tablets of controlled substances, including alprazolam and phentermine, and prescription drugs, including carisoprodol and counterfeit Viagra. Although they did not hold an importer’s license from the Drug Enforcement Administration, the defendants allegedly arranged for the importation of the same drugs into the United States. Neither the incoming packages nor the tablets themselves were labeled or identified as controlled substances or prescription drugs.
The drugs were allegedly intended to supply an Internet pharmacy based in Costa Rica that catered to customers within the United States, including Brooklyn and Queens, New York. The Internet pharmacy used call centers and websites based outside the United States, but filled the orders from inside the United States using individuals who were not licensed pharmacists to bottle, label and drop-ship the drugs. To facilitate the operation, the defendants allegedly wired money from Costa Rica to the United States and then to India.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
The case was jointly investigated by the FBI, FDA’s Office of Criminal Investigations, and HSI. The case is being prosecuted by Senior Counsel Evan C. Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William P. Campos of the Eastern District of New York.Wisconsin Pharmacist and Nevada Pharmacologist Charged with Smuggling Counterfeit Pharmaceuticals Using A Costa Rican Internet PharmacyRead the Press Release
WASHINGTON – A Wisconsin pharmacist and a Nevada pharmacologist were arraigned on an indictment today in federal court in Central Islip, New York, before United States Magistrate Judge Gary Brown. The defendants are charged with conspiring to supply at least four million misbranded and counterfeit pharmaceuticals to an illegal Internet pharmacy based in Costa Rica that catered to U.S. customers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; United States Attorney Loretta E. Lynch of the Eastern District of New York; Assistant Director in Charge George C. Venizelos of the FBI’s New York Field Office; Acting Special Agent in Charge James Royal of the U.S. Food and Drug Administration (FDA), Office of Criminal Investigations’ New York Field Office and Special Agent in Charge James T. Hayes Jr. of Homeland Security Investigations’ (HSI) New York Field Office made the announcement.
The 10-count indictment charges Marla Ahlgrimm, 59, of Madison, Wisconsin, and Balbir Bhogal, 67, of Las Vegas, Nevada, with importing and distributing controlled substances and misbranded drugs, trafficking in counterfeit drugs, mail and wire fraud, smuggling and money laundering.
According to the indictment and information presented at the arraignment, from June 2007 through May 2010, Ahlgrimm and Bhogal, who is a dual U.S. and Indian citizen, allegedly arranged for the manufacture in India of millions of tablets of controlled substances, including alprazolam and phentermine, and prescription drugs, including carisoprodol and counterfeit Viagra. Although they did not hold an importer’s license from the Drug Enforcement Administration, the defendants allegedly arranged for the importation of the same drugs into the United States. Neither the incoming packages nor the tablets themselves were labeled or identified as controlled substances or prescription drugs.
The drugs were allegedly intended to supply an Internet pharmacy based in Costa Rica that catered to customers within the United States, including Brooklyn and Queens, New York. The Internet pharmacy used call centers and websites based outside the United States, but filled the orders from inside the United States using individuals who were not licensed pharmacists to bottle, label and drop-ship the drugs. To facilitate the operation, the defendants allegedly wired money from Costa Rica to the United States and then to India.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
The case was jointly investigated by the FBI, FDA’s Office of Criminal Investigations, and HSI. The case is being prosecuted by Senior Counsel Evan C. Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William P. Campos of the Eastern District of New York.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Justin Magee, 26, of South Bend, Indiana pled guilty to the felony offenses of attempting to damage a motor vehicle by means of fire and being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 12/15/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Isaiah Mark Samelton, 19, of South Bend, Indiana pled guilty to the felony offense of being a felon in possession of firearm and ammunition. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 12/22/ 2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Frederick Dotson 39, of South Bend, Indiana was sentenced to 60 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of possession of a firearm in furtherance of a drug trafficking crime. According to documents filed in this case, Dotson sold cocaine out of his residence in St. Joseph County and possessed a Hi Point .40 cal. handgun to protect his drug business. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Jose Mario Sanchez, 40, of Goshen, Indiana was sentenced to 24 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of conspiring to distribute cocaine. According to documents filed in this case, from September 2013 up to and including October 2013, Sanchez was involved with several individuals, in distributing cocaine in the Northern District of Indiana. On several occasions Sanchez and others delivered cocaine to an individual Sanchez was unaware was working for law enforcement. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Jose Guadalupe Leal, 39, of Elkhart, Indiana was sentenced to 97 months imprisonment with 3 years supervised release after pleading guilty to the felony offenses of possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. According to documents filed in this case, on August 28th, 2013, Leal lived in Elkhart, Indiana and had in his possession about an ounce of cocaine he intended to sell. While executing a search warrant on Leal’s residence, law enforcement officers located the narcotics, drug dealing paraphernalia and a loaded semi-automatic pistol hidden in Leal’s bedroom. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney William Grimmer.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Mark William Bartell, 28, of Gary, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 11/24/2014. This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
- Robinson Morales, 37, of Hammond, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 12/5/2014. This case is being prosecuted by Assistant United States Attorney Nick Padilla.
- Jordan Schwind, 26, of South Bend, Indiana pled guilty to the felony offense of conspiracy to distribute heroin. This charge was filed as a result of an investigation by the Drug Enforcement Agency. Sentencing has been set for 12/3/2014. This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Augustine L. Luna, 36, of Fort Wayne, Indiana was sentenced to 120 months imprisonment, 5 years supervised release, and ordered to pay a $100 special assessment after pleading guilty to the felony offense of knowingly conspiring to distribute and possess with intent to distribute 5 kilograms or more of cocaine. According to documents filed in this case, this investigation began with controlled buys of powder and crack cocaine and progressed with wiretaps of several cocaine suppliers. Augustine Luna was identified as a distributor in one of the drug supply networks. This case was the result of an investigation by Federal Bureau of Investigation, G-Net, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force, and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Joseph Luna, 37, of Fort Wayne, Indiana was sentenced to 135 months imprisonment, 5 years supervised release, and ordered to pay a $100 special assessment after pleading guilty to the felony offense of knowingly conspiring to distribute and possess with intent to distribute 5 kilograms or more of cocaine. According to documents filed in this case, this investigation began with controlled buys of powder and crack cocaine and progressed with wiretaps of several cocaine suppliers. Joseph Luna was identified as a distributor in one of the drug supply networks. This case was the result of an investigation by Federal Bureau of Investigation, G-Net, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force, and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Narciso G. Soto, III, 32, of Fort Wayne, Indiana was sentenced to 87 months imprisonment, 2 years supervised release, and ordered to pay a $100 special assessment after pleading guilty to the felony offense of maintaining a drug involved premises. According to documents filed in this case, this investigation began with controlled buys of powder and crack cocaine and progressed with wiretaps of several cocaine suppliers. Narciso Soto was identified as operating a stash location for several of the distributors in one of the drug supply networks. This case was the result of an investigation by Federal Bureau of Investigation, G-Net, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force, and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
Warren County, N.J., Man Charged with Stalking and Sexual Exploitation of MinorsRead the Press Release
NEWARK, N.J. – A Washington, New Jersey, man is charged with stalking a female minor and soliciting another to produce images of herself engaging in sexually explicit conduct, U.S. Attorney Paul J. Fishman announced today.
Brandon McIntyre, 22, is charged by complaint with one count of stalking and one count of sexual exploitation of a child. He is scheduled to appear today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
McIntyre allegedly met various female minors through Facebook, sometimes pretending to be a teenage girl. Disguised under the Facebook alias of “Katie Thompson,” McIntyre urged one female minor to go on trips with him. When she refused, McIntyre, still using the alias, threatened to hurt her boyfriend and kill her family.
During his interaction with another female minor, McIntyre allegedly sent images of his genitals and asked her to send nude images of herself. When the victim refused, McIntyre claimed he was a police officer and would make her life a “living hell.” McIntyre threatened the victim with fines, school expulsion, and jail time until she sent him pictures of her engaging in sexually explicit conduct.
The charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The charge of stalking carries maximum penalty of five years in prison and a $250,000 fine.U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and Hunterdon County Prosecutor’s Office for the investigation leading to the arrest. He also thanked special agents from FBI in Anchorage, Alaska, and Albany, New York, for their assistance.
The government is represented by Special Assistant U.S. Attorney Jillian J. Reyes of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.14-323
McIntyre, Brandon Complaint
United States Seeks Civil Contempt Against Bayer Corporation for Failure to Substantiate Promotional Claims for Phillips’ Colon HealthRead the Press Release
The Department of Justice announced today that it filed a motion to show cause why Bayer Corporation should not be held in civil contempt for violating a court order in the U.S. District Court for the District of New Jersey. The court order, entered in 2007 in United States v. Bayer Corporation, prohibits Bayer from making unsubstantiated claims for any dietary supplement it promotes or sells. The government alleges in today’s motion that Bayer promotes one of its products, Phillips’ Colon Health, using claims about the product’s purported benefits without having evidence to substantiate those claims.
The court order prohibits Bayer from making any claim about the performance or efficacy of any dietary supplement, multivitamin or weight-control product unless, at the time Bayer makes the claim, the company possesses “competent and reliable scientific evidence” to support the claim. In its motion, the United States alleges that Bayer expressly claims Phillips’ Colon Health can “defend against” occasional constipation, diarrhea, and gas and bloating, and impliedly claims that Phillips’ Colon Health prevents, treats and cures constipation, diarrhea, and gas and bloating, even though the company lacks competent and reliable scientific evidence for those claims.
“Bayer is required to abide by a longstanding court order to back up claims it makes about the products it sells,” said Assistant Attorney General Stuart F. Delery for the department’s Civil Division. “The Department of Justice will not tolerate companies that seek to gain an unfair advantage over their competitors by promoting to consumers unsubstantiated claims about the health benefits of their products.”
In its motion, the United States describes Bayer’s multimillion dollar nationwide marketing campaign for Phillips’ Colon Health, which includes print advertisements and television commercials featuring “The Colon Lady,” in addition to claims on the product’s packaging. The motion further alleges that consumers have paid hundreds of millions of dollars for Phillips’ Colon Health, even though Bayer lacks the evidence to support the claims of the purported benefits of this product.
The Consumer Protection Branch of the Civil Division and the U.S. Attorney’s Office for the District of New Jersey filed the motion for contempt with the assistance of the Federal Trade Commission (FTC). The matter is filed as United States v. Bayer Corporation, No. 07-0001, in the District of New Jersey.
In 2007, the United States filed a civil complaint against Bayer alleging that Bayer marketed its One-A-Day WeightSmart multivitamin and dietary supplement with unsubstantiated claims that, among other things, One-A-Day WeightSmart helped prevent some of the weight gain associated with a decline in metabolism in users over the age of 30. The complaint alleged that those unsubstantiated claims violated an order issued in 1991 by the FTC against Bayer’s predecessor, Miles Inc., that required all claims about the benefits of One-A-Day brand vitamins to be substantiated by competent and reliable scientific evidence.
In order to resolve the complaint’s allegations, in 2007, Bayer agreed to pay a $3.2 million civil penalty and agreed that it would not make unsubstantiated representations regarding the benefits, performance, efficacy, safety or side effects of any dietary supplement, multivitamin or weight-control product. In 2007, the U.S. District Court for the District of New Jersey entered an order resolving the complaint’s allegations and prohibiting Bayer from making unsubstantiated claims about its products.
Assistant Attorney General Delery commended the efforts of the FTC to investigate Bayer’s compliance with the 2007 court order and for referring this latest matter for enforcement. This case is being handled by the Civil Division’s Consumer Protection Branch.
This motion contains a set of allegations. If this motion is litigated, the government would need to prove the allegations by clear and convincing evidence.