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Wednesday 23 July 2014
Former Sweetwater Police Detective Sentenced for Role in Credit Card Fraud and Aggravated Identity Theft SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the sentencing of William Garcia, 39, of Miami, a former Sweetwater Police Department detective, for his role in a credit card fraud and aggravated identity theft scheme.
On April 21, 2014, a jury in federal court found Garcia guilty of twelve counts of the fifteen count indictment. Specifically, the defendant was found guilty of: conspiring to produce, use, or traffic in one or more counterfeit access devices, in violation of Title 18, United States Code, Section 371; use of a counterfeit access device, in violation of Title 18, United States Code, Section 1029(a)(1); and ten counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). United States District Judge Federico A. Moreno sentenced Garcia to a term of 112 months imprisonment, to be followed by one year of supervised release. Garcia was also ordered to pay approximately $13,000.00 in restitution.
During trial, the United States presented evidence documenting Garcia’s improper friendship with a former confidential source. The confidential source, a convicted felon, would provide Garcia and another former South Miami Detective, Richard Munoz, with counterfeit credit cards. During the trial, the source, Munoz, and others testified about Garcia’s possession and use of those cards during shopping trips to the Dolphin and Florida City shopping malls in late 2010 and early 2011. During a meeting recorded by an FBI source, Garcia was recorded providing his own personal credit card for use in stealing account numbers and manufacturing counterfeit cards.
After the source started cooperating in June 2011, Garcia was caught on videotape bringing eight counterfeit credit cards to the confidential sources’ residence. During that and other recorded meetings, Garcia explained that he had taken the counterfeit cards from work and that he would share them with the confidential source. During the next two weeks, Garcia was again caught on tape discussing his use of the cards at restaurants, movies, and the Dolphin Mall. Garcia’s presence during the transactions was further documented through use of phone records, placing Garcia’s cellular telephone in the area of each transaction at the time it occurred.
U.S. Attorney Wifredo A. Ferrer stated, “William Garcia violated his oath as a police officer and misused his position to victimize the civilians he was sworn to protect. Mr. Garcia’s participation in these crimes betrayed not only the public trust, but also his fellow officers’ daily sacrifices as they work tirelessly to protect this community. Today’s sentence sends a strong message that we expect and deserve more from our public servants. I congratulate the hard work of the FBI that led to this successful prosecution.”
"The FBI’s Miami Area Corruption Task Force was assembled to ensure public officials are brought to justice if they betray the community’s trust,” said George L. Piro, Special Agent in Charge, FBI Miami. “In this case, the Task Force along with the assistance of the Sweetwater Police Department worked diligently to ensure justice was served.”
Mr. Ferrer commended the outstanding investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorneys Anthony Lacosta and Sarah Schall.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Rmbs Trader Sentenced to PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JESSE C. LITVAK, a registered broker-dealer and former managing director at New York investment bank Jefferies & Co., Inc. (Jefferies), was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment, followed by three years of supervised release, for defrauding customers trading in residential mortgage-backed securities (RMBS). LITVAK was also ordered to pay a fine of $1.75 million.
For nearly three years, Jesse Litvak lied over 70 times to numerous Jefferies’ customers, cheating them and stealing their investors’ money,” stated U.S. Attorney Daly. “While Litvak was being paid millions as a trader and managing director, he defrauded dozens of victims resulting in over six million dollars in loss to investors. The victim investors included pension funds for teachers, firefighters, police officers, and other state or municipal employees, as well as taxpayer-provided bailout funds that helped our nation to recover from the 2008 financial meltdown. This sentence serves as a warning bell to those who risk engaging in such corrupt practices. We hope that this prosecution will act as a forceful disincentive to market participants tempted to commit securities fraud. We commend SIGTARP and the FBI for their outstanding work on this investigation.”
“Today’s sentencing sends a clear message that lying in the already opaque markets of mortgage backed securities to drive up prices for the sake of profits is a crime that will result in years in federal prison,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “When caught by a customer trading with taxpayer bailout dollars, senior bond trader Litvak said it was a ‘hard year’ and ‘guys were doing what they needed to make money.’ The fact is that it was a hard year for everyone in that market. The government used taxpayer dollars in a TARP bailout program to help restart a frozen mortgage backed securities market, but Litvak saw it as a criminal opportunity. Litvak bragged in online chats about lying to customers and driving up prices, conduct that ultimately resulted in $6.3 million in fraudulent profits for his firm, Jefferies. Litvak knew full-well that some of those customers were funds filled with taxpayer dollars, and he has zero remorse for ripping off those customers and jeopardizing the integrity of the bailout program, all for the sake of pure greed. I want to thank U.S. Attorney Deirdre Daly for standing united with SIGTARP in the fight against bailout-related crime.”
“In March, a jury found Mr. Litvak guilty of securities fraud and TARP fraud; today, he learned that he will spend time in federal prison for those crimes,” said FBI Special Agent in Charge Ferrick. “With the incredible but legitimate salary Mr. Litvak was earning, the only explanation for his pilfering ways is pure and unadulterated greed. Let this be a message to those in a position of trust who cheat their investors and the government: You will be investigated, prosecuted and convicted. Most importantly, you will go to jail. The FBI is very appreciative of the work SIGTARP and the U.S. Attorney’s Office has done to ensure justice and encouraged by the deterrent effect Mr. Litvak’s case will have moving forward.”
On March 7, 2014, a jury found LITVAK guilty of 10 counts of securities fraud, one count of TARP fraud, and four counts of making false statements to the federal government. According to the evidence introduced during the trial, in response to the 2008 financial collapse, the U.S. Department of Treasury introduced the Legacy Securities Public-Private Investment Program (PPIP), and used more than $22 billion of bailout money from the Troubled Asset Relief Program (TARP) to restart the trading markets for many troubled securities, including certain kinds of RMBS. The program created nine PPIP funds, and more than 100 firms applied to manage the funds. TARP infused between $1.4 billion and $3.7 billion of bailout money into each of the PPIP funds that was to be invested alongside private capital.
LITVAK, 39, of New York, N.Y., was a senior trader and managing director at Jefferies, a global securities and investment banking firm headquartered in New York. Jefferies also had a trading floor in Stamford, Conn., where LITVAK and other members of its Mortgage and Asset-Backed Securities trading group worked. Between February 2009 and October 2011, LITVAK engaged in a scheme to defraud Jefferies’ customers based on two types of misrepresentations. First, as a broker-dealer, only LITVAK – not the bond seller or buyer – knew the selling and asking prices of the parties. LITVAK exploited this information by misrepresenting the RMBS seller’s asking price to the buyer and by misrepresenting the buyer’s asking price to the seller. By fraudulently increasing the difference or “spread” between the price paid by the buyer and the price paid to the seller, LITVAK pocketed the difference for Jefferies. Second, LITVAK took bonds held in Jefferies’ inventory and sold them to RMBS buyers only after inventing a fictitious third-party seller. This ruse allowed LITVAK to charge the buyer an extra commission that Jefferies was not entitled to because it was selling bonds it held in its own inventory.
LITVAK perpetrated this scheme more than 70 occasions against numerous PPIP funds and private investment funds, netting Jeffries more than $6.3 million in fraudulent profits.
LITVAK has been released on bond since his arrest on January 28, 2013. He was ordered to report to prison by November 5, 2014.
The investigation of this matter revealed that members of Jefferies’ management in the fixed income division became aware that Jefferies employees were making misrepresentations to customers and did nothing to stop it. Jefferies has cooperated with the federal criminal investigation and, on January 29, 2014, agreed to pay a total penalty of $25 million as part of a non-prosecution agreement with the government. The penalty includes up to $11 million in restitution to victims and up to a $4,200,402 penalty to the U.S. Securities and Exchange Commission (SEC). Jefferies also agreed to address deficiencies in the compliance and ethics practices and policies of its Mortgage and Asset-Backed Securities Trading group. These measures include Jefferies’ agreement to retain an Independent Compliance Consultant to conduct a review of Jefferies’ policies and procedures for detecting and preventing fraud in connection with the purchase or sale of RMBS.
U.S. Attorney Daly noted that the criminal investigation of individuals and institutions involved in fraudulent RMBS trading activities remains active and ongoing.
This matter is being investigated by SIGTARP and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Christopher Mattei.
This prosecution was brought in coordination with the RMBS Working Group, a joint federal and state initiative created to investigate those responsible for misconduct contributing to the 2008 financial crisis. RMBS were pools of mortgages deposited into trusts and then sold as securities to investors who were to receive a stream of income from the mortgages packaged in the RMBS. The RMBS Working Group, which is chaired by Attorney General Eric Holder, brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, ten U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission, the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the Federal Housing Finance Agency’s Office of Inspector General, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than ten state Attorneys General offices around the country.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, please visit: www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Employee Sentenced for Stealing Garmin GPS DevicesRead the Press Release
KANSAS CITY, KAN. – A man who worked for the Garmin Company in Olathe, Kan., has been sentenced to 33 months in federal prison for stealing boxes of GPS devices from the company, U.S. Attorney Barry Grissom said. He also was ordered to pay more than $2 million in restitution.
Terrence M. Heathington, 32, formerly of Olathe and currently of Atlanta, Ga., was sentenced Tuesday. In his plea to one count of mail fraud, he admitted that the crime was committed from March to September 2008 when he worked in Garmin International, Inc.’s warehouse in Olathe as a material handler. He shipped a large quantity of Garmin GPS devices to his personal address and the address of high school friends living in Atlanta. He and his friends sold the devices on eBay and to other individuals.
The thefts were discovered when a person who bought one of the stolen devices contacted the company. An audit revealed that boxes of GPS devices had been shipped to Heathington’s home in Ottawa and to addresses in Georgia, where Heathington had lived.
Grissom commended the Overland Park Police Department, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Five Ordered to Custody in Galveston on Charges of Methamphetamine DistributionRead the Press Release
GALVESTON, Texas – Five men, charged with conspiracy to possess with the Intent to distribute methamphetamine in the Galveston area, have been ordered detained pending further criminal proceedings, announced United States Attorney Kenneth Magidson.
Abel Hinojosa, 34, Nelson Agapito Ventura, 37, Daniel Reyna, 33, Israel Sanchez, 20, and Rodolfo Hernandez Perez, 26, all of La Marque, appeared before U.S. Magistrate Judge John R. Froeschner last Friday. The court took the matter under advisement and subsequently ordered they be detained pending trial.
All five are charged with one count of conspiracy to possess with the Intent to distribute more than 50 grams of methamphetamine as well as more than 500 grams of a mixture containing methamphetamine in the Galveston Division of the Southern District of Texas.
Perez and Hinojosa are further charged with one and three counts, respectfully, of possession with intent to distribute varying amounts of methamphetamine. The indictment also includes a notice of forfeiture.
At the hearing, the government presented evidence that Hinojosa and Ventura were the alleged leaders of this narcotics conspiracy. According to the allegations, they were obtaining crystal methamphetamine and other narcotics from Mexico, sending couriers to pick up the narcotics and then distributing the drugs within Galveston as well as to out-of-state customers.
Perez and Sanchez allegedly served as couriers for the drug conspiracy, helping to pick up the drugs from Mexico and transporting it to customers.
The government presented evidence that Reyna served as a street-level distributor. Upon his arrest, he was allegedly found with crystal methamphetamine, eight firearms (including two assault rifles) and approximately 1000 rounds of ammunition.
After hearing the evidence and testimony, Judge Froeschner found them to be a danger to the community and ordered they be detained pending further criminal proceedings. The court further noted the strength of the government’s case and its substantial evidence. Trial is set for Sept. 22, 2014.
Each face a minimum of 10 years and up to life in federal prison for the conspiracy, if convicted. The possession with intent charges against Hinojosa and Perez also carry varying terms of either a minimum of five and up to 40 or another minimum of 10 and up to life for the underlying drug offenses.
The case is being investigation by the Drug Enforcement Administration, Homeland Security Investigations and Galveston Police Department. Assistant United States Attorneys Ted Imperato and Sharad Khandelwal are prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
The defendants are presumed innocent unless and until convicted through due process of law.Federal Official Arrested, Charged with Self-Dealing Federal Grants to New Jersey UniversitiesRead the Press Release
NEWARK, N.J. - The Assistant Division Administrator of the Federal Highway Administration (FHWA), New Jersey Division, was arrested this morning for allegedly using a straw company to get FHWA grant funds he also oversaw as a public official, and for falsifying related federal disclosure documents, U.S. Attorney Paul J. Fishman announced.
Lawrence F. Cullari Jr., 42, of Tinton Falls, New Jersey, was arrested at his FHWA office in West Trenton by special agents from the U.S. Department of Transportation (DOT) Office of Inspector General (OIG), and criminal investigators with the U.S. Attorney’s Office for the District of New Jersey. He is charged in a criminal complaint with five counts of making false statements and one count of wire fraud.
Cullari had an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge James B. Clark III and was released on a $100,000 bond.
According to the criminal complaint filed today in Newark federal court:
Cullari has been the Assistant Division Administrator at the Federal Highway Administration’s FHWA New Jersey Division since 2010. In that position, he holds the power to influence the allocation of DOT funding. Since 2006, he has also operated a private consulting and engineering company called Dencore Consulting, which was owned by his then-wife.
In about 2006, the defendant approached his then father-in-law – referred to as W.P. in the complaint – and asked to use W.P.’s company – identified as Company #1 – as a nominal or “straw” contractor to get work for Dencore Consulting from Rutgers University’s Center for Advanced Infrastructure and Transportation (Rutgers CAIT), and New Jersey Institute of Technology (NJIT).
From May 2006, until at least June 2013, Cullari prepared bids and work proposals for W.P. to sign and submit to Rutgers CAIT and NJIT on behalf of Company #1, predominantly for FHWA-funded projects. When Rutgers CAIT or NJIT awarded projects to the company, Cullari arranged for the relevant engineering reports to be completed. He had W.P. sign and mail the reports to the universities on behalf of Company #1, as if the company had performed the work. W.P. then mailed invoices on behalf of the company to the schools for payment. When the universities paid, W.P. kept a small portion of the payment, usually about $300, for himself and wrote a check to Dencore Consulting for the balance.
In addition to the self-dealing scheme, Cullari filed false Confidential Financial Disclosure Reports from 2009 through 2013. He indicated on the forms that he held no outside positions and earned no outside income, though Dencore Consulting was paid more than $130,000 relating to a number of contracts with Company #1 during those years, and more than $56,000 of that income was transferred directly from Dencore Consulting’s bank account into his personal bank account. Cullari was also a member of several “advisory boards” at Rutgers CAIT, including the CAIT Advisory Board, the Research Advisory Board, the Technology Transfer Advisory Board, and the Transportation Safety Resource Center Advisory Board, among others.
The maximum potential penalty for the wire fraud charge is 20 years in prison, and the maximum potential penalty for each false statements charge is five years in prison. All of the charges also each carry a maximum potential penalty of $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the U.S. Department of Transportation, Office of Inspector General, under the direction of Regional Special Agent in Charge Douglas Shoemaker, the New Jersey Department of Transportation, Office of Inspector General, under the direction of Johanna Barba Jones, and investigators in the U.S. Attorney’s Office with the ongoing investigation.The government is represented by Assistant U.S. Attorney Scott B. McBride, Deputy Chief of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Assistant Federal Public Defender Carol Gillen (for purposes of initial
appearance)Cullari, Lawrence Complaint
Federal Jury Convicts Three Men in Drug Trafficking Case in LawrenceRead the Press Release
KANSAS CITY, KAN. – A federal jury today convicted three men for their roles in a drug trafficking conspiracy that distributed millions of dollars’ worth of marijuana in the Lawrence area, the U.S. Attorney’s Office announced today. The government is seeking a money judgment of more than $16.9 million against the traffickers.
The men were found guilty on charges of conspiracy to distribute marijuana and other drug trafficking counts. The defendants are:
Los Rovell Dahda, 32, Lawrence, Kan.
Roosevelt Rico Dahda, 32, Lawrence, Kan.
Justin Cherif Pickel, 34, San Lorenzo, Calif.During trial, prosecutors presented evidence that starting in 2008 law enforcement agencies began receiving information that Los Dahda was distributing marijuana in the Lawrence area. When Roosevelt Dahda was released from prison in November 2010, he joined his brother Los in the trafficking organization.
Prosecutors presented evidence that during the early days of the conspiracy the Dahdas bought marijuana from Mexico to sell in Lawrence. Over time, they turned to California for their supply. They purchased marijuana in California for $1,800 to $2,800 a pound and they sold it in the Lawrence area for $3,500 to $4,800 a pound. It is estimated that the traffickers distributed more than 8,000 pounds of marijuana from 2005 to 2012.
The Dahdas used a business they owned in Lawrence, Gran-Daddy’s BBQ at 1447 West 23rd Street, as well as other properties to receive, store and process marijuana for distribution.
Pickel worked for the Dahdas transporting marijuana from California to Lawrence. On April 25, 2012, he was stopped on Interstate I-80 in Nebraska. Investigators found 38 pounds of marijuana concealed in a false compartment in a toolbox/fuel tank. Pickel also set up an indoor marijuana grow operation in California that he maintained for the Dahdas. On June 13, 2012, investigators executed a search warrant at Pickel’s residence in California and seized more than 100 marijuana plants.
The defendants were convicted on the following counts:
Los Rovell Dahda: Conspiracy (count 1), maintaining Daddy’s BBQ at 1147 W. 23rd in Lawrence in furtherance of drug trafficking (count 31), distributing marijuana (counts 26 and 36), using a telephone in furtherance of drug trafficking (counts 38, 39, 41, 42, 45, 46), possession with intent to distribute marijuana (counts 43, 49, 73, 85, 88 and 73.
Roosevelt Rico Dahda: Conspiracy (count 1), using a telephone in furtherance of drug trafficking (counts 42, 45, 53, 55, 70) possession with intent to distribute marijuana (counts 43, 49, 73) possession with intent to distribute within 1,000 feet of Holcomb Sports Complex in Lawrence (count 56).
Justin Cherif Pickel: Conspiracy (count 1),using a telephone in furtherance of drug trafficking (count 70).
Sentencing will be set for a later date. The crimes carry the following penalties:
Conspiracy: Not less than 10 years and a fine up to $10 million. On this count, Roosevelt is facing a minimum of 20 years because of his prior convictions.
Agencies involved in the investigation and the arrest of defendants include the Douglas County Sheriff=s Office, the Johnson County Sheriff=s Office, the Lawrence Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Internal Revenue Service, the U.S. Postal Service, the Alameda County, Calif., Sheriff=s Drug Task Force, the Kansas Bureau of Investigation, the Lenexa Police Department, the Overland Park Police Department, the Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department and the Hayward, Calif., Police Department. Assistant U.S. Attorney Terra Morehead is prosecuting.
Maintaining a house or building in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $250,000.
Distributing marijuana within 1,000 feet of a school or playground: A maximum penalty of 10 years and a fine up to $500,000.
Distributing marijuana; possession with intent to distribute marijuana: A maximum penalty of five years and a fine up to $250,000.
Using a telephone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $250,000.
Taking part in an ongoing criminal enterprise: Not less than 20 years and a fine up to $2 million.Federal Jury Convicts San Antonio Man for Sex Trafficking of MinorsRead the Press Release
In San Antonio today, a federal jury convicted 22–year-old Malcolm Deandre Copeland for his role in prostituting two minor females last year announced United States Attorney Robert Pitman, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and Texas Attorney General Greg Abbott.
The jury convicted Copeland of two counts of sex trafficking of minors. Evidence presented during the trial revealed that Copeland and others were involved in a scheme to entice and encourage minors into engaging in sexual acts for money. Specifically, jurors found that Copeland, in August and September of 2013, knowingly placed photos of two minors on an Internet website which advertised prostitution services under the pretext of “escorts.” Jurors also found that Copeland transported the minors to multiple locations in San Antonio as well as Corpus Christi to engage in commercial sex.
Copeland, who remains in federal custody, faces between ten years and life in federal prison when he is sentenced on December 4, 2014.
One of Copeland’s co-defendants, 20-year-old Amber Doak of San Antonio, pleaded guilty in March 2014 to one count of sex trafficking of minors and is currently awaiting sentencing scheduled for September 12, 2014. She faces between ten years and life in federal prison.
Two remaining co-defendants—38-year-old San Antonio resident Marcus Deshawn Wright and 41–year-old New Hampshire resident Raymond Valas—await jury selection and trial scheduled for August 18, 2014, and November 17, 2014, respectively, before U.S. Chief District Judge Fred Biery. Wright is charged with two counts of sex trafficking of minors and one count of production of child pornography. Valas is charged with one count of sex trafficking of a minor.
This case was investigated by the Federal Bureau of Investigation (FBI) together with the San Antonio Police Department. Assistant United States Attorney Bettina Richardson and Special Assistant United States Attorney Geoff Barr from the Texas Attorney General’s Office are prosecuting this case on behalf of the Government.Federal Jury Convicts Sacramento Man of Possessing Crack Cocaine for DistributionRead the Press Release
SACRAMENTO, Calif. — After a three–day trial, a federal jury found John Winton Harris, 31, of Sacramento, guilty today of one count of possession of at least 29 grams of cocaine base, commonly referred to as crack cocaine or rock cocaine, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Morrison C. England Jr.
According to evidence presented at trial, Sacramento police officers responded to a domestic violence complaint at an apartment complex in Sacramento. When the officers entered the apartment, they found Harris crouched in the kitchen area. He was moved to a different location in the apartment, and when officers found a large amount of cocaine base where he had been crouching in the kitchen, Harris attempted to flee. Harris claimed he did not live in the apartment, but officers found mail addressed to him at that address, as well as other personal items belonging to him in the apartment. Harris’s cellphone revealed photographs of Harris in the same apartment with a large amount of currency only days before, as well as text messages indicating he was involved in the distribution of cocaine base that very week.
This case is the product of an investigation by the United States Drug Enforcement Administration and the Sacramento Police Department. Assistant United States Attorneys Todd Pickles and Chris Highsmith are prosecuting the case.
Harris remains in custody pending sentencing.
Harris is scheduled to be sentenced by Judge England on October 23, 2014. Harris faces a maximum statutory penalty of 40 years in prison and a $5 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.
Federal Authorities Arrest Court Interpreter, Trina Marie Bourg, for Wire FraudRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced today that TRINA MARIE BOURG, age 45, of Houma, Louisiana, was arrested yesterday on a federal complaint for crimes involving the solicitation of illegal bribes from immigrants and their family members.
According to court records, on May 7, 2014, the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) received information that BOURG, a Spanish language interpreter who provided interpreter services for Terrebonne and Lafourche Parish courts, was soliciting payments from individuals who were illegally present in the United States. BOURG represented to these individuals that she would use the money she received to bribe United States Immigration Officials in order to remove the immigration detainers and/or federal immigration charges from their criminal and/or administrative cases. According to the criminal complaint filed yesterday in federal court, in 2011 and again in 2014, BOURG solicited two bribes totaling $4,000 from an individual identified in the complaint as Victim A and his family members. BOURG received a total of $3,500 from Individual A’s family member, who paid BOURG because BOURG represented to the family member that she would use the money to influence federal immigration officials.
If convicted, BOURG faces a term of incarceration of up to of twenty years.
This case was investigated by special agents from the U. S. Department of Homeland Security-HSI and the Louisiana State Police-Criminal Investigation Division. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Council Man Sentenced for Violating Sex Offender Registration and Notification ActRead the Press Release
BOISE B Larry Grant Dana, 41, of Council, Idaho, was sentenced today to 24 months in federal prison for violating the Sex Offender Registration and Notification Act, U.S. Attorney Wendy J. Olson announced. Dana pled guilty to the charge on May 19, 2014. U.S. District Judge Edward J. Lodge also ordered Dana to serve five years of supervised release following the prison term.
According to the plea agreement, Dana was convicted in Canyon County in 1996 of battery with intent to commit rape, which requires him to register as a sex offender. He had registered off and on since May 2001, most recently on October 5, 2013, when he reported that he was residing in Council, Idaho. According to his Idaho State parole officer, Dana absconded from supervision in November 2013. Dana was apprehended in Albuquerque, New Mexico on February 16, 2014. The investigation showed Dana had been with his wife and five children and had been seen in Wyoming, Colorado, Texas, Louisiana, Florida and Oklahoma prior to his arrest. He failed to register as a sex offender in any of those states, and did not notify the Idaho Sex Offender Registry that he had changed his address or left the state, as required by state and federal law.
The case was investigated by U.S. Marshals Service. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Chinese National Pleads Guilty to Arms Export Control Act ViolationsRead the Press Release
ALBUQUERQUE – Bo Cai, 28, a Chinese national, pleaded guilty in the U.S. District Court for the District of New Mexico this afternoon to violating the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR) by scheming illegally to export defense articles with military application to the People’s Republic of China. The guilty plea was announced by Damon P. Martinez, U.S. Attorney for the District of New Mexico and Dennis A. Ulrich, II, Special Agent in Charge of Homeland Security Investigations (HSI) in El Paso, Texas.
Bo Cai entered a guilty plea to a three-count superseding indictment charging him and his cousin, Wentong Cai, 29, a Chinese national in the United States on a student Visa, with a scheme illegally to export sensors primarily manufactured for sale to the U.S. Department of Defense for use in high-level applications, such as line-of-sight stabilization and precision motion control systems. The Arms Export Control Act and the ITAR prohibit the export of defense-related materials from the United States without obtaining a license or written approval from the U.S. Department of State.
In announcing the guilty plea, U.S. Attorney Damon P. Martinez said, “It is a top priority for the Justice Department and the District of New Mexico to protect our national security and our technology from disclosure to foreign governments. This prosecution demonstrates the federal law enforcement community’s commitment to safeguarding our nation’s military secrets by keeping America’s critical technology from falling into the wrong hands.”
HSI Special Agent in Charge Dennis A. Ulrich, II, said, “One of HSI's highest priorities is to prevent illicit procurement networks from illegally obtaining U.S. military products, sensitive dual-use technology, weapons of mass destruction (WMD), or chemical, biological, radiological and nuclear materials. This investigation reflects the outstanding efforts of HSI and its partner agencies in protecting American ingenuity and sensitive military hardware. HSI will continue to aggressively investigate this type of crime and bring those individuals who pose a threat to the world's security to justice.”
In his plea agreement, Bo Cai admitted that from March 2012 to Dec. 2013, he conspired illegally to export sensors from the United States to China without first obtaining the required export license. According to the plea agreement, in March 2012, Bo Cai, who was then employed by a technology company in China, embarked on an illegal scheme to smuggle sensors out of the United States to China for one of his customers despite knowledge that the sensors could not be exported without a license and that the United States did not issue licenses to export the sensors to China. Bo Cai enlisted Wentong Cai to acquire the sensors under the ruse that he planned to use the sensors at Iowa State University where he was a graduate microbiology student.
Court filings indicate that the investigation of this case began in Oct. 2013, when an undercover HSI agent responded to Wentong Cai’s overtures. After negotiations by telephone and email, Bo Cai and Wentong Cai traveled to New Mexico in Dec. 2013, where they obtained a sensor from undercover HSI agents and developed a plan for smuggling the sensor out of the United States to China. On Dec. 11, 2013, Bo Cai was arrested at an airport in Los Angeles, Calif., as he was preparing to board a flight to China after the sensor was discovered concealed in a computer speaker in his luggage.
At sentencing, Bo Cai faces a statutory maximum penalty of 20 years in prison on the Arms Export Control Act charge, ten years in prison on the smuggling charge, and five years on the conspiracy charge. Under the terms of his plea agreement, Bo Cai will be deported after completing his prison sentence. He remains in custody pending his sentencing hearing, which has yet to be scheduled.
Wentong Cai was arrested in Iowa and was transferred to the District of New Mexico in Jan. 2014. He has entered a not guilty plea to the charges in the superseding indictment and remains in federal custody pending trial, which currently is scheduled to begin on Aug. 18, 2014. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The Albuquerque office of HSI led the investigation of this case with assistance from the U.S. Air Force Office of Special Investigations, the Defense Security Service, HSI in Iowa and Los Angeles, Calif., and the FBI. Iowa State University cooperated throughout with HSI’s investigation. Assistant U.S. Attorneys Dean S. Tuckman and Fred J. Federici of the District of New Mexico are prosecuting the case with assistance from Deputy Chief Deborah Curtis and Trial Attorney David Recker of the Justice Department’s National Security Division, Counterespionage Section, the U.S. Attorney’s Office for the Central District of California and the U.S. Attorney’s Office for the Southern District of Iowa.
Child Sex Trafficker Sentenced to 12 Years in PrisonRead the Press Release
EUGENE, Ore. – On Wednesday, July 23, 2014, Chief U.S. District Court Judge Ann Aiken sentenced Steven Anthony Kidd, 21, of Linn County, Oregon, to a prison term of 12 years for two counts of child sex trafficking. Following his release from prison, Kidd will be on supervised release for five years.
In December 2012, a Eugene Police Department (EPD) officer learned that Kidd might be trafficking minors for sex, and further investigation confirmed this. EPD and the FBI learned that Kidd had trafficked a minor female, referred to as “AA,” starting in late 2011 and lasting for nearly a year. Kidd transported AA to Medford, Albany, Eugene, Corvallis, Harrisburg and Portland, Oregon, as well as cities in Washington. He obtained hotel rooms, posted ads soliciting sex and collected proceeds from the sex trafficking. Kidd imposed a set of rules for AA to follow and subjected her to physical abuse.
On two occasions in December of 2012, Kidd also trafficked another minor female, referred to as “BB.” Kidd posted an advertisement soliciting customers to engage in sex with BB, and drove her to Corvallis for the sex acts. Kidd kept the proceeds from these acts of sex trafficking.
The residence Kidd was staying at in Albany, Oregon was searched, and Kidd was arrested the same day. Two pistols were located, along with significant information demonstrating Kidd’s involvement in child sex trafficking, including a notebook in his closet. The notebook had handwritten notes, including some titled “Hoe Bi**h Rules”, which included “Bi**h Always look at the ground.” Other handwritten notes included, “First and Foremost, Break the Bi**h’s old Phone,” (sic), “Don’t let the B**h think for herself,” and, “Make them fear DADDY.” Other evidence located at the residence further confirmed Kidd’s trafficking of the minor victims.
“This case is a prime example of how pimps use violence, power, and control to manipulate vulnerable victims into a life of terror”, said U.S. Attorney Amanda Marshall. “ My office will continue working with our federal and local law enforcement partners to make it clear to traffickers that our children are not for sale. “
This case was investigated by the Federal Bureau of Investigation and the Eugene Police Department, with assistance from the Albany Police Department, and was prosecuted by Assistant U.S. Attorney Jeffrey S. Sweet.
Chattanooga Man Sentenced to Serve 150 Months for Crack Cocaine Conspiracy Spanning from Chattanooga to Johnson CityRead the Press Release
GREENEVILLE, Tenn. – On July 21, 2014, Garry Lee Brown, 25, of Chattanooga, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 150 months in federal prison, for his conviction of conspiracy to distribute crack cocaine.
Beginning in 2011, law enforcement began investigating a large-scale crack cocaine conspiracy originating out of Chattanooga. As part of the conspiracy, they discovered that numerous individuals, including Brown, were trafficking multi-ounce quantities of crack cocaine to Johnson City for resale. Private vehicles, taxi cabs, and public transportation were commonly used to transport the drugs. Many of the co-conspirators, including Brown, had ties to street gangs based in Chattanooga, including the Rollin’ 60’s Crips and Woodlawn Crips. Upon arrival in Johnson City, Brown and others would distribute their drugs, return to Chattanooga with their drug sale proceeds, purchase additional drugs, and repeat the cycle.
As part of the investigation, law enforcement agents conducted a series of controlled drug transactions with Brown and other co-conspirators. On three separate occasions, Brown sold crack cocaine to confidential informants acting under the supervision of agents and officers. In total, the conspiracy involved kilogram quantities of crack cocaine. Three of Brown’s co-conspirators remain to be sentenced in Greeneville. Numerous others are being prosecuted in Chattanooga.
This long term investigation was the product of a partnership between the Johnson City, Tennessee Police Department; Chattanooga, Tennessee Police Department; Federal Bureau of Investigation; and Drug Enforcement Administration. Special Assistant U.S. Attorney Nick Regalia represented the United States.
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.
This case was also a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. 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.
Capital District Man and Woman Arraigned on Social Security Disability and Workers’ Compensation Fraud ChargesRead the Press Release
ALBANY, NEW YORK – JOHN W. CALTABIANO, Jr., 47, of Cairo, New York, and COLLEEN J. McCARTEN, 41, of Coxsackie, New York, appeared today before Magistrate Judge Randolph F. Treece in U.S. District Court in Albany to be arraigned on an 11-count July 17, 2014, indictment charging them with engaging in a fraudulent scheme to obtain Social Security Disability and New York State Workers’ Compensation benefits, announced United States Attorney Richard S. Hartunian and Special Agent Edward J. Ryan of the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Division.
According to the indictment, CALTABIANO and McCARTEN conspired to fraudulently obtain payments by submitting false information in connection with CALTABIANO’s Social Security Disability and Workers’ Compensation claims. The indictment alleges that McCARTEN and CALTABIANO submitted documents to the Social Security Administration falsely stating that CALTABIANO could not go out alone or drive, and that McCARTEN led CALTABIANO into a Workers’ Compensation Board hearing as if he was blind, when in fact CALTABIANO regularly moved without assistance and drove a car.
If convicted, CALTABIANO and McCARTEN face up to 20 years in prison on a conspiracy to commit mail fraud count and each of five mail fraud counts, up to five years in prison on each of two Social Security Disability fraud counts and two false statements counts, and up to 10 years in prison on a theft of government property count. They could also be ordered to pay fines of up to $250,000 on each count.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The indictment resulted from an investigation conducted by the Social Security Administration, Office of the Inspector General, with assistance from the Workers’ Compensation Board, Office of Fraud Inspector General. The case is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Butler County Couple Indicted on Charges of Stealing $1.5 Million from Presbyterian ManorsRead the Press Release
WICHITA, KAN. – A Butler county couple was indicted Wednesday on federal charges of stealing more than $1.5 million from Presbyterian Manors of Mid-America, a Wichita-based company that owns assisted living centers in Kansas and Missouri, U.S. Attorney Barry Grissom said.
In Kansas, the company has facilities in Wichita, Topeka, Kansas City, Olathe, Lawrence, Emporia, Salina, Dodge City, Fort Scott, Parsons, Arkansas City, Newton, Sterling and Clay Center.
Brent A. Shryock, 43, Augusta, Kan., and his wife, Lori A. Shryock, 50, Augusta, Kan., are charged with four counts of mail fraud. The indictment alleges the crimes occurred while Brent Shryock was employed as information systems director for the company. He was in charge of all computers, telephones, video information and electronic equipment, including the purchase of new or replacement equipment for PMMA, Presbyterian Manor, Aberdeen and Ashfield facilities.
The defendants are alleged to have created four fictitious companies: LGR Technology, Innovative Software Solutions, DT Solutions and Microtech Solutions. The indictment alleges the initials in LGR Technology stood for “Let’s Get Rich.” The defendants used the fictitious companies to submit fraudulent invoices to PMMA, Presbyterian Manor, Aberdeen and Ashfield.
If convicted, the defendants face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER INDICTMENTS
Thomas F. Fee, 53, Hutchinson, Kan., is charged with one count of unlawful possession of a machine gun and one count of unlawful possession of a silencer. The crimes are alleged to have occurred July 4, 2014, in Reno County, Kan. Fee was arrested after a standoff with Hutchinson police.
If convicted he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the machine gun count and a maximum penalty of 10 years and a fine up to $10,000 on the other count. The Hutchinson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.
James Paul Bettes, Jr., 47, Wichita, Kan., is charged with one count of distributing child pornography and one count of possessing child pornography. The crime is alleged to have occurred May 16, 2014, in Wichita, Kan.
If convicted, he faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on the distribution count, and a maximum penalty of 10 years and a fine up to $250,000 on the possession count. Homeland Security Investigations and the Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Marla R. McDonald, 25, Garden City, Kan., is charged with one count of Social Security benefit fraud, three counts of aggravated identity theft, one count of mail fraud and 11 counts of wire fraud. The crimes are alleged to have occurred in 2011 and 2012 in Finney County, Kan.
Upon conviction, the crimes carry the following penalties:
Social Security benefits fraud: A maximum penalty of five years in federal prison and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutive to the underlying sentence.
Mail fraud: A maximum penalty of 20 years and a fine up to $250,000.
Wire fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
The Social Security Administration – Office of Inspector General investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jonearl Smith, 35, is charged with one count of possessing and discharging a firearm in furtherance of a crime of violence and two counts of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred July 12, 2014, in Wichita, Kan.If convicted, he faces a penalty of not less than 10 years and not more than life, consecutive to any other count, and a fine up to $250,000 on the first count; and a maximum penalty of 10 years and a fine up to $250,000 on each of the other counts. The Wichita Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Diedra N. Sanders, 43, Wichita, Kan., who was a civilian employee at McConnell Air Force Base in Wichita, is charged with one count of theft of public money and three counts of submitting false reports to the federal government to cover up the theft. The crimes are alleged to have occurred in 2013 at McConnell Air Force Base.
The indictment alleges Sanders committed the crime while she was employed as a deputy dispersing officer. The indictment alleges the largest amount stolen at one time was $4,000.
If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The U.S. Air Force investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Coley R. Logan, 19, Fort Scott, Kan., is charged with one count of theft of mail from the U.S. Postal Service. The indictment alleges Logan was employed as a highway contract route driver and the crimes occurred in March and May 2014.If convicted, she faces a maximum penalty of five years and a fine up to $250,000. The U.S. Postal Service – Office of Inspector General investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Alexander J. Pauler, 26, Wichita, Kan., is charged with unlawful possession of a firearm following a misdemeanor conviction for a crime of domestic violence. The crime is alleged to have occurred March 30, 2014, in Wichita, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Darrell E. Finney, 24, Wichita, Kan., is charged with unlawful possession of a firearm by a user of controlled substances. The crime is alleged to have occurred April 19, 2014, in Wichita, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is investigating.
Kim Householder, 53, Tribune, Kan., is charged with unlawfully possessing a silencer attached to a Ruger SR-22 rifle. The crime is alleged to have occurred April 4, 2014, in Tribune, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Michelle Jacobs is investigating.
Kenneth E. Weaver, 58, Denver, Colo., is charged with one count of possession with intent to distribute marijuana. The crime is alleged to have occurred July 11, 2014, in Allen County, Kan.
The government is seeking a money judgment against Weaver of $1.4 million, which represents the proceeds of the crime.
If convicted, he faces a maximum penalty of 20 years and a fine up to $1 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
James Michael Post, 53, is charged with failing to register as required by Sex Offender Registration Notification Act. The crime is alleged to have occurred Oct. 28, 2012, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Juan Trejo-Martinez, 54, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 5, 2014, in Finney County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Juan Lopez-Morales, 40, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 6, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Pedro Garcia-Cordero, 40, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 7, 2014, in Sedgwick County, Kan.If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Israel Santamaria-Rodriguez, 32, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 10, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Kent Misak, 58, Wichita, Kan., is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred July 15, 2014, in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Ivan Bustamente-Zazueta, 30, Park City, Kan., is charged with one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred July 15, 2014, in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 10 years and a fine up to $4 million on the methamphetamine charge, and a penalty of not less than five years and a fine up to $250,000 on the firearm charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Adan Zazueta-Zambada, 35, is charged with one count of possession with intent to distribute methamphetamine, and one count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported. The crimes are alleged to have occurred July 15, 2014, Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 10 years and a fine up to $4 million on the drug charge and a maximum penalty of 10 years and a fine up to $250,000 on the immigration charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Jose Oscar Arciniega-Soto, 37, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of firearms in furtherance of drug trafficking and one count of unlawful possession of firearms following a felony conviction. The crimes are alleged to have occurred July 15, 2014, in Wichita, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million on the methamphetamine count; not less than five years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking; and a maximum penalty of 10 years and a fine up to $250,000 on the other firearm count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Jose Maria Santa Cruz, 29, Tucson, Ariz.; Jonatan Jimenez, 20, a citizen of Mexico; Olivia Luisa Aguilar, 31, Tucson, Ariz;and Shalita Dontae Black, 26, Tucson, Ariz., are charged one count of possession with intent to distribute methamphetamine and one count of traveling from Arizona through Kansas in furtherance of drug trafficking. The crimes are alleged to have occurred July 17, 2014, in Sedgwick County, Kan.
If convicted, they face a penalty of not less than 10 years and a fine up to $10 million on the methamphetamine count, and a maximum penalty of five years and a fine up to $250,000 on the other count. The Sedgwick County Sheriff’s Office and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.BGF Leader Sentenced to over 10 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
Directed Correctional Officers to Smuggle Contraband into Baltimore Correctional Facility,
and Had Sex with Two Correctional OfficersBaltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Jamar Anderson, age 24, of Baltimore, today to 121 months in prison followed by three years of supervised release for participating in a racketeering conspiracy that included the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Judge Hollander ordered that 60 months of his federal sentence will be served consecutive to the state murder sentence that he is currently serving.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, the Black Guerilla Family (BGF) has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to his plea agreement, Anderson is a member of the BGF and was in pretrial custody at BCDC from 2012 to 2013. During that time, Anderson often directed correctional officers to smuggle contraband into BCDC, including cell phones, tobacco and drugs. In return, the correctional officers received payments, gifts or a share of the profits. Anderson knew many correctional officers involved in contraband trafficking, and had sexual relationships with two of them. Anderson and his closest BGF allies frequently used others to obtain contraband from outside the prison, and hold it or deliver it to correctional officers for smuggling.
Twenty-four of the 44 defendants charged in the conspiracy have pleaded guilty, including 14 correctional officers. One defendant has died. Trial is scheduled to begin November 17, 2014 for the remaining defendants.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Armored Truck Robber Pleads GuiltyRead the Press Release
Conspirators Stole Over $270,000 in 2012 Armored Truck Robbery
Greenbelt, Maryland – Adrian Baldwin, age 28, of Washington, DC, pleaded guilty today to conspiracy to commit an armed commercial robbery in connection with the robbery of an armored truck.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Baldwin’s plea agreement, between mid-November and November 21, 2012, Baldwin conspired with Damione Lewis, Delacey Brown, Taurian Miller, and others to rob an armored truck that serviced a bank branch in the 3400 block of Kenilworth Avenue in Hyattsville, Maryland. As part of the conspiracy, Baldwin was recruited to participate in the robbery, in exchange for sharing in the proceeds of the robbery.On November 21, 2012, an armored car employee picked up $272,956.17 from the bank. Baldwin and other co-conspirators were in vans outside the bank. As the employee was taking the money from the bank to the armored truck, Baldwin and his co-conspirators approached the employee brandishing firearms, took the money bags to the vans and drove away. The robbery proceeds were later divided between the conspirators. Baldwin admitted that part of his share of the proceeds was used to purchase a 2002 Ford Explorer, which he must forfeit as part of his plea agreement.
Baldwin faces a maximum sentence of 20 years in prison. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 10, 2014 at 10:00 a.m.
Damione Lewis, age 35, of New Carrolton, Maryland; Delacey Kinte Brown, age 37, of Landover, Maryland; and Taurian Devon Miller, age 29, of Washington, DC; have all pleaded guilty to their roles in the robbery and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI and Prince George’s County Police Department for their work in the investigation and thanked Assistant U.S. Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.Armed Forces Communications and Electronics Association (AFCEA) Marianas Tech Net 2014 Invites U.S.Attorney's Office to ParticipateRead the Press Release
ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), and JOSEPH QUITANO, National Security Specialist for the U.S. Attorney's Office (USAO), were invited to speak at the Armed Forces Communications and Electronics Association (AFCEA) Marianas TECH NET 2014 Conference, held on April22-25, 2014, in Guam. The AFCEA is an international organization "dedicated to increasing knowledge through the exploration of issues relevant to its members in information technology, communications, and electronics for the defense, homeland security and intelligence communities."
U.S. Attorney Limtiaco spoke about the mission of the USAO, which is "to enforce the law and defend the interests of the United States according to the law; to ensure public safety against threats foreign and domestic; to provide federal leadership in preventing and controlling crime; to seek just punishment for those guilty of unlawful behavior; and to ensure fair and impartial administration of justice for all Americans." She explained that there are 42 separate components of the Department of Justice and provided information on the roles of the agencies, including the United States Attorneys, who prosecute offenders and represent the United States government in court; the National Security Division, which coordinates the Department's highest priority of combating terrorism and protecting national security; the major investigative agencies - the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives - which prevent and deter crime and arrest criminal suspects; the United States Marshals Service, which protects the federal judiciary, apprehends fugitives, and detains persons in federal custody; and the Federal Bureau of Prisons, which confines convicted offenders.
U.S. Attorney Limtiaco also expounded on the United States Attorney General's priority goals, which are to detect and prevent terrorism; prosecute violent crime; combat computer crime, especially child pornography, obscenity, and intellectual property theft; prevent and prosecute illegal drugs; combat corporate and public corruption; and promote civil rights and civil liberties.
National Security Specialist Joe Quitano discussed regional security issues relevant to the national security of the United States. National Security Specialist Quitano also spoke about the Department of Justice's past and current prosecutions involving threats of terrorism to federal, state, and local levels and threats of Weapons of Mass Destruction (WMDs). In addition, he presented information on important elements that make up the country’s national security, current events that affect national security, information specific to Guam and the Northern Mariana Islands' vital role in contributing to national security, and tips on what citizens can do to help prevent threats of terrorism.
The following are photographs of U.S. Attorney Limtiaco and National Security Specialist
Joe Quitano giving remarks at the AFCEA Marianas TECH NET 2014 Conference:17 Schuele Boys Gang Members and Associates Charged with Drug TraffickingRead the Press Release
BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that 17 members and associates of the Schuele Boys Gang, a group which operated in the Schuele Street area of the East Side of Buffalo, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine. The defendants are also charged with unlawful use of a communication facility in furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
“At a time when the entire region is experiencing a rebirth of hope and positive change, there are those who would harm the community through narcotics trafficking and acts of violence,” said U.S. Attorney Hochul. “As today’s operation demonstrates, law enforcement stands ready and able to identify and remove these threats to the public.”
Charged in the complaint are:
• Antwan Garner, 29, Buffalo
• Aaron Glenn, 41, North Tonawanda
• Jerome Grant, 33, Buffalo
• James Hicks, 44, Buffalo
• Xavier Hill, 42, Buffalo
• Demetrius Holmes, 23, Buffalo
• Damario James, 32, Buffalo
• Fred Johnson, 21, Buffalo
• Ikeem Lyons, 21, Buffalo
• Benjamin Peoples, 25, Buffalo
• Damario Robbins, 23, Buffalo
• Michael Robertson, 24, Buffalo
• Spencer Rogers, 50, Buffalo
• Antwon Steward, 31, Buffalo
• Shawntorrian Travis, 34, Buffalo
• Andre Wise, 36, Buffalo
• Marcel Worthy, 30, BuffaloAssistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to a complaint, during the summer of 2010, the Schuele Boys Gang, including defendant Marcel Worthy who is the alleged leader of the gang, were the targets of a mass shooting at the City Grill in downtown Buffalo. During the shooting, eight people were shot, four fatally. At the time, law enforcement officers believed that Marcel Worthy was a kilogram quantity cocaine trafficker.
The ensuing investigation utilized wire and electronic communications, confidential sources, controlled purchases of narcotics, and physical and video surveillance, to identify conspirators associated with the Schuele Boys Gang distribution network. The complaint further states that in addition to buying and selling illegal narcotics, the defendants were also involved in committing acts of violence including shootings.
The members and associates are alleged to have attempted to thwart law detection by law enforcement officers through the frequent changing of cellular telephones. The defendants also are alleged to have used other counter-surveillance techniques, including utilizing and frequently changing rental vehicles, employing evasive driving techniques, and speaking in coded language.
The criminal complaint is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
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.
Tuesday 22 July 2014
‘Enforcer’ for Atlantic City ‘Dirty Block’ Gang Sentenced to 151 Months in Prison for Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - An Atlantic City, New Jersey, man was sentenced today to 151 months in prison for engaging in a conspiracy to distribute heroin with a criminal street gang – the “Dirty Block” – which used threats, intimidation and violence to maintain control of the city’s illegal drug trade, U.S. Attorney Paul Fishman announced.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Shaamel Spencer, a/k/a “Buck,” 30, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, and one count of being a previously convicted felon in possession of a firearm. Judge Irenas imposed the sentenced today in Camden federal court.
According to documents filed in this case and statements made in court:
Spencer acted as an “enforcer” on behalf of Mykal Derry, 33, of Atlantic City, helping Dirty Block control the heroin trafficking trade in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court. Spencer assisted in the distribution of heroin to Dirty Block customers.
Spencer was arrested on Oct. 30, 2012, and found to be in possession of a firearm. On Feb. 12, 2013, Spencer was charged with being a previously convicted felon in possession of a firearm and ammunition. A search warrant executed at Spencer’s residence at the time of his arrest revealed approximately $4,500 in suspected drug proceeds, as well as a 9-mm semi-automatic handgun and 44 rounds of ammunition.
Spencer and other members of the Dirty Block gang – a number of them previously convicted felons – had travelled to a shooting range in Lakewood, New Jersey, where they were photographed firing handguns.
At his plea hearing, Spencer admitted to distributing heroin. He also admitted to being a previously convicted felon who possessed firearms and ammunition, and that specifically, he took a handgun to an Atlantic City casino, where he believed Derry was involved in a violent fight with his rivals. Spencer also agreed to forfeit the proceeds of his drug trafficking as well as his firearms and ammunition.
In addition to the prison term, Judge Irenas sentenced Spencer to eight years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Police Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang Task Force, with the investigation leading to today’s sentencing.
The charges and allegations in the indictment charging Derry are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Justin C. Danilewitz of the U.S. Attorney’s Office Criminal Division in Camden
14-260Yah-Ta-Hay Man Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Allen Harragarra, 34, a member of the Navajo Nation who resides in Yah-Ta-Hay, N.M., pleaded guilty this morning to a felony information charging him with voluntary manslaughter.
Harragarra was arrested in Dec. 2013, on a complaint alleging that he killed a Navajo man on Dec. 2, 2013, on the grounds of a school in Tohatchi, N.M., which is located within the Navajo Indian Reservation. According to the complaint, Harragarra stabbed the victim in the neck during a physical altercation.
During today’s plea hearing, Harragarra pled guilty to voluntary manslaughter and admitted killing the victim on Dec. 2, 2013, by stabbing him in the neck. In his plea agreement, Harragarra said he stabbed the victim once in the neck while he was acting out of fear and in the heat of passion.
Under the terms of his plea agreement, Harragarra will be sentenced to a federal prison term within the range of 60 to 66 months followed by a term of supervised release to be determined by the court. Harragarra remains in custody pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque and Gallup offices of the FBI and the Crownpoint District of the Navajo Nation Division of Public Safety, and is being prosecuted by Special Assistant U.S. Attorney David Adams.
Unlicensed Real Estate Appraiser Admits Role in Mortgage Fraud Scheme, Drug Possession and DistributionRead the Press Release
NEWARK N.J. – A Monmouth County, New Jersey, man today admitted his role in a large-scale mortgage fraud scheme as well as distribution and possession with the intent to distribute Methylone, U.S. Attorney Paul J. Fishman announced.
Paul Chemidlin , 42, of Morganville, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with conspiracy to commit wire fraud and with distributing and possessing Methylone.
According to documents filed in this case and statements made in court:
From March 2011 through July 2012, Chemidlin and others submitted false mortgage loan applications to mortgage lenders for a property on Smith Street in Elizabeth, New Jersey. Chemidlin submitted letters to mortgage lenders that falsely stated that the borrower was obtaining the funds necessary to close the real estate transaction from a relative or friend in the form of a gift, when the funds were actually coming from a codefendant. Chemidlin provided fraudulent real estate appraisals, although he was not a licensed real estate appraiser.
While under home detention for charges stemming from wire fraud, Chemidlin was arrested for distributing and possessing with the intent to distribute Methylone.
The conspiracy count carries a maximum potential penalty of 30 years in prison and a $1 million fine. The drug count carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 10, 2014.
U.S. Attorney Fishman credited the FBI Newark Mortgage Fraud Task Force with the investigation leading to today’s charges: special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Housing and Urban Development, Office of Inspector General, Northeast Region of Investigations, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Inspector General Steve Linick; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory.
Today’s sentencing is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark, Joshua Hafetz of the General Crimes Unit and Charlton A. Rugg of the Narcotics/OCDETF Unit.
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Defense Counsel: Paul Condon Esq., Jersey City, N.J.
Chemidlin, Paul Information
United States Intervenes in Whistleblower Suit Against Symantec Corporation Alleging False Claims for Computer SoftwareRead the Press Release
The United States has intervened in a law suit against Symantec Corporation, alleging that Symantec submitted false claims to the United States on a General Services Administration (GSA) software contract, the Justice Department announced today. Symantec is a Fortune 500 company located in Mountain View, California, and it sells a variety of computer security products.
“This lawsuit demonstrates the government’s commitment to ensuring that the companies it does business with act with integrity,” said Assistant Attorney General Stuart Delery for the Department of Justice’s Civil Division. “When the United States spends taxpayer dollars based on contractors’ representations about their business practices, we expect to be given complete and accurate information.”
In 2007, Symantec entered into a Multiple Award Schedule contract with GSA that allowed Symantec to sell software and related items directly to federal purchasers. The case alleges that Symantec knowingly provided the United States with inaccurate and incomplete information about the prices it was offering to its commercial customers during the negotiation and performance of the contract. GSA used Symantec’s disclosures about its commercial sales practices to negotiate the minimum discounts Symantec was required to provide government agencies that bought Symantec software. In addition, the contract required Symantec to update GSA when commercial discounts improved and extend the same improved discounts to government purchasers. The suit contends that Symantec misrepresented its true commercial sales practices, ultimately leading to government customers receiving discounts far inferior to those Symantec gave to its commercial non-government customers. The contract at issue was in place from 2007 to 2012 and involved hundreds of millions of dollars in sales.
“When doing business with the government, honesty and transparency are essential,” said U.S. Attorney Ronald C. Machen Jr. for the District of Columbia. “We are committed to ensuring that contractors who do business with the federal government provide honest services, prices and products. We will continue to work with relators and federal investigators to protect federal taxpayer money.”
“Contractors cannot provide GSA with inaccurate and incomplete pricing data,” said GSA Acting Inspector General Robert C. Erickson. “American taxpayers deserve a fair deal.”
The suit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The lawsuit is pending in the District of Columbia.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia and GSA’s Office of Inspector General .
The case is captioned United States ex rel. Morsell v. Symantec Corp. , No. 12cv00800 (D.D.C.). The claims asserted against Symantec are allegations only; there has been no determination of liability.
United States Intervenes in Whistleblower Suit Against Symantec Corporation-Suit Alleges False Claims for Computer Software-Read the Press Release
WASHINGTON – The United States has intervened in a lawsuit against Symantec Corporation, alleging that Symantec submitted false claims to the United States on a General Services Administration (GSA) software contract, the Justice Department announced today. Symantec is a Fortune 500 company located in Mountain View, California, and it sells a variety of computer security products.
“This lawsuit demonstrates the government’s commitment to ensuring that the companies it does business with act with integrity,” said Assistant Attorney General Stuart Delery for the Department of Justice’s Civil Division. “When the United States spends taxpayer dollars based on contractors’ representations about their business practices, we expect to be given complete and accurate information.”
“When doing business with the government, honesty and transparency are essential,” said U.S. Attorney Ronald C. Machen Jr. “We are committed to ensuring that contractors who do business with the federal government provide honest services, prices and products. We will continue to work with relators and federal investigators to protect federal taxpayer money.”
In 2007, Symantec entered into a Multiple Award Schedule contract with GSA that allowed Symantec to sell software and related items directly to federal purchasers. The case alleges that Symantec knowingly provided the United States with inaccurate and incomplete information about the prices it was offering to its commercial customers during the negotiation and performance of the contract. GSA used Symantec’s disclosures about its commercial sales practices to negotiate the minimum discounts Symantec was required to provide government agencies that bought Symantec software. In addition, the contract required Symantec to update GSA when commercial discounts improved and extend the same improved discounts to government purchasers. The suit contends that Symantec misrepresented its true commercial sales practices, ultimately leading to government customers receiving discounts far inferior to those Symantec gave to its commercial non-government customers. The contract at issue was in place from 2007 to 2012 and involved hundreds of millions of dollars in sales.
“Contractors cannot provide GSA with inaccurate and incomplete pricing data,” said GSA Acting Inspector General Robert C. Erickson. “American taxpayers deserve a fair deal.”
The suit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The lawsuit is pending in the District of Columbia.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia and GSA’s Office of Inspector General.
The case is captioned United States ex rel. Morsell v. Symantec Corp., No. 12cv00800 (D.D.C.). The claims asserted against Symantec are allegations only; there has been no determination of liability.
14-169Two Men Indicted in Multi-Million Dollar Mortgage Fraud SchemeDefendants Allegedly Part of Larger Fraud Against Banks and Lenders Using Washington, D.C.-Area Real EstateRead the Press Release
WASHINGTON –Edward Dacy, 76, of West Melbourne, Fla., and A. Conrad Austin, 49, of Bowie, Md., have been indicted on conspiracy, bank fraud, and other federal charges stemming from a multi-million dollar mortgage fraud scheme in which they are accused of assisting their co-conspirators to defraud banks and mortgage lenders through the purchase of residential real estate in the District of Columbia and Maryland.
The indictment, unsealed today in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr.; Michael P. Tompkins, Special Agent in Charge, Washington Field Office, Department of Justice Office of the Inspector General; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Kathy A. Michalko, Special Agent in Charge, Washington Field Office, U.S. Secret Service; Cary Rubenstein, Special Agent in Charge, Mid-Atlantic Region, Office of the Inspector General of the U.S. Department of Housing and Urban Development (HUD); John Roth, Inspector General of the Department of Homeland Security (DHS), and Michael P. Stephens, Acting Inspector General for the Federal Housing Finance Agency Office of Inspector General.
Dacy and Austin, who were arrested today, were named in a 19-count indictment charging them with conspiracy, bank fraud, wire fraud, and mail fraud. Dacy is charged with all 19 counts; Austin is charged with conspiracy, one of the five bank fraud counts, all of the nine wire fraud counts, and two of the four mail fraud counts. The indictment also includes forfeiture allegations seeking all proceeds that can be traced to the scheme.
The government also announces the following seven guilty pleas, all of which occurred before the Honorable Reggie B. Walton in the U.S. District Court for the District of Columbia:
Frank Davis, Jr., 49, of Washington, D.C., pled guilty on April 30, 2014 to conspiracy to commit bank fraud. The plea carries a potential sentencing guideline term of imprisonment of 51 to 63 months, $2,296,463 in restitution, supervised release, fines and forfeiture.
Lonnie Johnson, 47, of Greensboro, N.C., pled guilty on May 2, 2013 to conspiracy to commit bank fraud. The plea carries a potential sentencing guideline term of imprisonment of 18 to 24 months, $375,000 in restitution, supervised release, and fines.
Cheryl E. Morrison, 54, of West Melbourne, Fla., pled guilty on Sept. 25, 2013, to conspiracy to commit mail fraud. The plea carries a potential sentencing guideline term of imprisonment of 10 to 16 months, $42,600 in restitution, supervised release, fines and forfeiture.
Pauline Pilate, 50, of Washington, D.C., pled guilty on July 3, 2014 to conspiracy to commit bank fraud. The plea carries a potential sentencing guideline term of imprisonment of 18 to 37 months, at least $341,070 in restitution, supervised release, fines and forfeiture.
Frederick Robinson, Sr., 52, of Montgomery, Ala., pled guilty on April 23, 2014, to conspiracy to commit bank fraud. The plea carries a potential sentencing guideline term of imprisonment of 37 to 46 months, $971,900 in restitution, supervised release, fines and forfeiture.
Howard Tutman, III, 54, of Woodstock, Md., pled guilty on July 2, 2014 to conspiracy to commit bank fraud. The plea carries a potential sentencing guideline term of imprisonment of 24 to 37 months, $606,414 in restitution, supervised release, fines and forfeiture.
Anthony Young, 47, of Clinton, Md., pled guilty on Jan. 30, 2013 to conspiracy to commit bank fraud. The plea carries a potential sentencing guideline term of imprisonment of 27 to 33 months, $378,118 in restitution, supervised release, and fines.
According to the indictment, Dacy and Austin defrauded banks, mortgage lenders, and the Federal Housing Administration, “FHA,” (part of U.S. Department of Housing and Urban Development) of money by assisting others to obtain mortgage loans on residential real estate properties through false loan applications and documents and fraudulent settlements, ultimately causing a loss to the banks, lenders, and FHA when mortgages were not paid.
The indictment states that co-conspirators Frank Davis, Jr., and Frederick Robinson, Sr. purchased properties in the names of general partnerships; Davis and Robinson would then recruit individuals to re-purchase these same properties for higher amounts, funded by fraudulently obtained mortgage loans, by promising the buyers that they would not be required to: make financial contributions toward the purchase of the properties; pay the monthly mortgage payments or expenses; or maintain the properties. The straw buyers were used to purchase a number of properties; the indictment lists 15 transactions seeking or obtaining in excess of $4.3 million in mortgage loans.
Furthermore, according to the indictment, Austin is a Certified Public Accountant (“CPA”) licensed in the State of Maryland. CPAs are licensed by an authorizing state or District of Columbia agencies, and may prepare tax returns and other financial documents. CPAs are required periodically to attest that they had received continuing ethical training to maintain their CPA license. Mortgage lenders often give deference to documents prepared by CPAs based on the stringent standards required of CPAs to provide accurate analysis supported by detailed documentation. In order to obtain mortgage loans in the names of some of the straw buyers, Robinson recruited Austin to create false CPA letters, inflated tax returns, and unjustified financial statements.
The indictment further alleges that Dacy was an agent for a settlement company, which would receive the funding from the mortgage lender and the buyer’s cash contribution and would be under the obligation to disburse the money only if all of the mortgage lender’s conditions were met and the buyer’s financial contribution collected. Only then would the settlement company be authorized to release the lender’s money, and pay the costs of the closing, the debts of the property or seller, and any other authorized expenses as set forth on the Settlement Statement. According to the indictment, Dacy handled the straw buyers’ settlement of the properties, with knowledge that the straw buyers did not pay the cash contribution as required by the lenders.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Machen, Special Agent in Charge Tompkins, Assistant Director in Charge Parlave, Special Agent in Charge Michalko, Special Agent in Charge Rubenstein, Inspector General Roth, and Acting Inspector General Stephens expressed appreciation for the work performed by Special Agents and analysts from the FBI, U.S. Secret Service, and the Offices of Inspector General of Department of Homeland Security, Department of Justice, Department of Housing and Urban Development, and Federal Housing Finance Agency. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Kristy Penny, Assistant U.S. Attorneys Anthony Saler and Arvind K. Lal, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
14-170Turkish Man Pleads Guilty to Smuggling Counterfeit Cancer DrugsRead the Press Release
St. Louis, MO – OZKAN SEMIZOGLU, the “Foreign Trade Director” of a Turkish drug wholesaler, pled guilty today to smuggling counterfeit, misbranded and adulterated cancer treatment drugs into the United States, including multiple shipments of Altuzan® (the Turkish version of Avastin®) sent from Turkey to Chesterfield, Missouri. Sentencing is set for October 28, 2014.
According to Semizoglu’s plea agreement, Semizoglu used shipping labels that concealed the illegal nature of the prescription drug shipments, including customs declarations falsely describing the contents as "gifts" or "documents" or “product sample” with no or low declared monetary values. Semizoglu also ensured that large drug shipments were broken into several smaller packages to reduce the likelihood of seizures by U.S. Customs authorities and the corresponding loss of expensive drug shipments. Additionally, Semizoglu shipped some prescription drugs that needed constant cold temperatures to maintain their stability and effectiveness in shipping boxes without insulation or any temperature protection whatsoever. Given the length of time required to ship products from Turkey to Missouri, Semizoglu was aware that on many occasions the packages arrived in the United States at temperatures outside the constant cold temperature range discussed on the drugs’ labeling.
Further, Semizoglu admitted in his plea agreement to selling Altuzan® to Richard Taylor, a United Kingdom drug wholesaler. The U.S. Food and Drug Administration’s (“FDA”) Office of Criminal Investigations (“FDA-OCI”) previously seized Altuzan® from various physician/customers of Taylor in 2012, and ultimately determined that this Altuzan® from Taylor and Semizoglu was counterfeit, with no active drug ingredient in the drug vials. FDA issued several public safety alerts about these events. FDA-OCI’s ongoing investigation has led to a number of related prosecutions in this District, including Dr. Abid Nisar, Sandra Behe, James Newcomb, Richard Taylor, Dr. Erick Falconer, Greg Martin, Kamaldeep Sandhu and Navdeep Sandhu.
“Today’s guilty plea marks a significant step in national and international cooperation,” said Philip J. Walsky, acting director, FDA Office of Criminal Investigations. “Federal, state and local officials in the U.S. and Germany and at Europol worked together in partnership to help protect the public’s health and remove a potentially unsafe medication from the U.S. marketplace.”
This case was investigated by FDA’s Office of Criminal Investigations, with assistance from the United States Marshal’s Service; Rosa Emilia Rodríguez-Vélez , the United States Attorney for the District of Puerto Rico; the Office of Inspector General for the U.S. Department of Health and Human Services; the Johnson County, Kansas Sheriff’s Office Criminalistics Laboratory; Europol, the Bonn prosecutor in Germany (Staatsanwaltschaft); the Federal Criminal Police of Germany (Bundeskriminalamt, BKA); the Dusseldorf Police; the German State Criminal Police (Landeskriminalamt, LKA); the U.S. Department of State’s Diplomatic Security Service; the U.S. Consulate General’s Overseas Criminal Investigations Branch in Istanbul, Turkey and the Drug Enforcement Administration.
Tampa Man Sentenced to 15 Years in Federal Prison for Possessing A Firearm and AmmunitionRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore yesterday sentenced Ulrich Johnson (27, Tampa) to 15 years in federal prison for being a felon in possession of a firearm and ammunition. The Court also ordered Johnson to forfeit the firearm and ammunition. Johnson pleaded guilty on April 24, 2014.
According to court documents, on June 2, 2013, officers from the Tampa Police Department attempted to pull over a car in which Johnson was the passenger. The driver of the car, Johnson’s co-defendant, Michael Caro, refused to pull over and fled from the officers. As the driver fled, Johnson threw a loaded firearm and a pill bottle containing crack cocaine, which had been intended for distribution, from the car’s window. The officers eventually apprehended Johnson and Caro. Prior to possessing the firearm and ammunition, Johnson had been convicted of multiple felony offenses. As such, he was prohibited from possessing a firearm or ammunition under federal law.
Michael Caro, also a previously convicted felon, pleaded guilty to being a felon in possession of a firearm in December 2013. On June 26, 2014, he was sentenced to 46 months’ imprisonment by U.S. District Judge James S. Moody, Jr.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Tahlequah Man Pleads Guilty to Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CHUCK ALLEN EASTHAM, age 41, of Tahlequah, Oklahoma, pled guilty to Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
The charge is a result from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in March, 2014.
The Indictment alleged that on or about October 24, 2013, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, one Marlin (Glenfield) Model 30A, 30-30 Caliber lever action rifle, which had been shipped and transported in interstate commerce.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, and/or up to a $250,000.00 fine.
Assistant United States Attorney Kyle Waters represented the United States.
Statement by Justice Department Spokesperson on King V. Burwell and Halbig V. BurwellRead the Press Release
WASHINGTON—The Department of Justice released the following statement Tuesday from spokesperson Emily Pierce regarding the ruling in the case of King v. Burwell by the Fourth Circuit Court of Appeals and the ruling by the D.C. Circuit Court of Appeals in the case of Halbig v. Burwell:
“Today, the Fourth Circuit unanimously ruled in support of Congressional intent and common sense: that an American may receive tax credits to make health care more affordable regardless of whether they are participating in a state-run or a federally-facilitated marketplace. While two appeals judges ruled differently, four appeals judges have now cast their votes with two lower courts, Congress, and the Affordable Care Act. In the meantime, to be clear, people getting premium tax credits should know that nothing has changed, tax credits remain available.”
St. Joseph Woman Sentenced for $1 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., woman was sentenced in federal court today for a wire fraud scheme in which she stole nearly $1 million from two companies in which she was a part owner.
Vicky Diane McDonell, 63, of St. Joseph, was sentenced by U.S. District Judge Gary A. Fenner to five years in federal prison without parole. The court also ordered McDonell to pay $940,410 in restitution to Max Pro Consultants, Inc., and MPC Billboards, Inc. This restitution encompasses both the $906,415 she stole from the companies as well as legal fees paid by the victims in a civil suit against McDonell in an attempt to recover the money she stole. The victims dropped the suit before they recouped any of their losses because they could no longer afford to pursue it.
On Oct. 18, 2013, McDonell pleaded guilty to one count of wire fraud for using a business credit card to pay $201 in personal expenses at The Elms Resort & Spa in Excelsior Springs, Mo. According to court documents, McDonell’s fraud scheme lasted for nearly 12 years, from June 13, 1997, to March 15, 2009. During that time, she committed more than 2,440 acts of theft – including an act of theft every single week – and stole a total of $906,415 from Max Pro and MPC Billboards.
Max Pro is a real estate company that manages properties upon which billboards are affixed. In 1997, MPC Billboards was formed and incorporated as a sister company to Max Pro. MPC is a billboard sales company. In addition to her duties as office manager, in 1999 McDonell was granted a 10 percent interest in both companies, making her a partner. McDonell also became treasurer of both companies, which included management of the companies’ day-to-day financial matters.
According to court documents, McDonell involved her children in her crimes. McDonell embezzled by paying thousands of dollars from company accounts to her son and teenage daughter for unauthorized work; she never filed 1099s for this supposed employment. McDonell also gave her daughter a company credit card and allowed her to charge to it. McDonell also used her mother in her fraud scheme. McDonell wrote a $5,000 business check to her mother for “contract cleaning,” despite the fact that her mother never cleaned and never received any money from MPC or Max Pro.
When the partners first discovered McDonell’s embezzlement, court documents say, they allowed her to continue her employment on her promise that she would stop embezzling. However, after her victims showed her this mercy on Feb. 10, 2009, McDonell continued to embezzle at a steady clip, charging hundreds of dollars for personal meals at bars and restaurants to company credit cards.
Court documents report on McDonell’s conduct after being caught. McDonell continued to steal from the victims. After her employment was terminated, McDonell took her company car, obtained a loan against the company car, traded in the company car for a personal vehicle, and wrote a company check for a payment on her personal vehicle. McDonell also violated the victims’ privacy rights by hiding a voice-activated digital recorder in the victims’ office to listen to private conversations of the victims, in violation of federal law.
McDonell sabotaged the victims’ business records, according to court documents. In addition to making thousands of false entries in the companies’ books, McDonell stole more than four years of bank records and retained nearly all the check registers from her tenure, making the full extent of her theft nearly impossible to ascertain. McDonell also sabotaged the victims’ computer records. McDonell enlisted her son to erase records and password-protect them, making them inaccessible to the victims. To this day, the companies’ partners are unable to access many of their corporate records due to McDonell’s actions.
The court found that McDonell obstructed the investigation by providing investigators with false statements about the scope of her embezzlement. McDonell also erased data off the computers at the businesses she defrauded. McDonell’s sentence therefore includes an enhancement for obstruction of justice.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by the FBI.
St. Johns County Man Sentenced to More Than 8 Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard sentenced Christopher Scott O’Brien, II (23, St. Johns County) to 8 years and 4 months in federal prison for receiving child pornography over the Internet. O’Brien was also ordered to serve a 10-year term of supervised release and register as a sex offender following his release.
According to court documents, an agent with the Florida Department of Law Enforcement began an undercover investigation to identify individuals, in the Jacksonville area, that had access to and/or were trading images and videos depicting child pornography over the Internet. The agent determined that a host computer in that area was hosting images of child pornography, using a file sharing program. The agent made successful connections to the host computer and downloaded several video files directly from the computer. Further investigation traced the subscriber information to a residence in St. Johns, Florida, where O’Brien resided.
On February 26, 2013, FDLE agents and other law enforcement officers executed a search warrant at the residence and seized several computers and other electronic media. Subsequent analysis of O’Brien’s computer revealed that it contained approximately 838 videos in the “Saved” folder, at least 50 of which depicted minors engaged in sexually explicit conduct.
This case was investigated by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the St. Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Springfield Sex Offender Indicted for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a registered sex offender in Springfield, Mo., was indicted by a federal grand jury today for receiving and distributing child pornography over the Internet.
Anthony Richard Salois, 47, of Springfield, was charged in a two-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Salois received and distributed child pornography over the Internet between Sept. 16 and 20, 2013. Because Salois has a prior state conviction for sexual abuse involving a minor, upon conviction he would be subject to a mandatory minimum sentence of 15 years in federal prison without parole.
The indictment also charges Salois with being in possession of child pornography on Oct. 10, 2013. Due to his prior state conviction, this count carries a mandatory minimum sentence upon conviction of 10 years in federal prison without parole.
The federal indictment also contains a forfeiture allegation, which would require Salois to forfeit to the government two desktop computers and 121 optical media.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Spiro Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BILLY DON FULLER, age 48, of Spiro, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Section 846 and Possession With Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2.
The charge is a result of an investigation by the District 16 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The defendant was indicted in March 2014.
The Indictment alleged that from in or about the beginning of 2011, the exact date being unknown to the Grand Jury, and continuing until on or about December 31, 2013, in the Eastern District of Oklahoma, and elsewhere, BILLY DON FULLER, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States, to wit: to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing and ordered the completion of a presentence and investigation report. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not less than 10 years imprisonment or more than mandatory life, and/or up to a $1 0,000,000 fine and mandatory supervised release of at least 5 years.
Assistant United States Attorney Shannon Henson represented the United States.
Son and Business Associate of Defendant in Los Zetas Money Laundering Case Sentenced to Federal Prison for Conspiring to Bribe A Federal JudgeRead the Press Release
In Austin, 26–year-old Francisco Agustin Colorado Cebado (aka “Panchito”) and 52–year-old Ramon Segura Flores were each sentenced to a year and a day in federal prison and ordered to pay a $10,000 fine for attempting to bribe a federal judge announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Christopher Combs and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough.
On March 12, 2004, the defendants, along with Francisco’s father, 53-year-old Veracruz, Mexico businessman Francisco Antonio Colorado Cessa (aka “Pancho”), pleaded guilty to one count of conspiracy to bribe a federal judge. All three admitted to conspiring last year to pay a $1.2 million bribe to a federal judge in order to secure a reduced sentence for Colorado-Cessa in a related court case. According to court records, at no time before or during this investigation was the judge involved in the alleged criminal activity.
Colorado Cebado and Segura Flores have remained in federal custody since their arrest on September 5, 2013. Both face deportation proceedings upon completion of their respective sentences.
Sentencing for Colorado Cessa, who faces up to five years in federal prison on the attempted bribery charge, is scheduled for October 20, 2014. Colorado Cessa is currently serving a 20-year federal prison term for his role in a complex scheme to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States.
This case was investigated by the FBI and IRS-Criminal Investigation.
Shreveport Pastor Sentenced to 78 Months in Prison for Engaging in Sexual Contact with MinorsRead the Press Release
SHREVEPORT, La. –A Shreveport pastor was sentenced to 78 months in prison and three years of supervised release for transporting minors across state lines in order to engage in illegal sexual conduct, U.S. Attorney Stephanie A. Finley announced today.
Andrea Lewis, 54, of Shreveport, was sentenced by U.S. District Judge Elizabeth E. Foote for three counts of transporting minors across state lines to have sex. As a part of his sentencing, he is also required to register as a sex offender. A jury found Lewis guilty on February 28, 2014 after a five-day trial. Witness testimony and exhibits admitted into evidence established that Lewis transported at least three minors to and from Texas to have sex with them. The events happened from 1994 to 2000. Lewis is a Shreveport pastor who formed and actively recruited members of a choir, which consisted of girls mostly under the age of 18 in his congregation. He used his status as pastor and choir director to coerce young female church and, or, choir members to have sex with him. He threatened the girls not to tell anyone, and used choir trips and other church related travel to cover up sexual abuse.
“Unfortunately, this defendant took advantage of his position to abuse young girls in his care and left them with emotional and physical scars that may never heal,” Finley stated. “He has forever altered their lives, and now he must face the consequences of his deplorable actions. The Assistant U.S. Attorney, FBI agents and the Shreveport Police Department officers who worked on this case are to be commended for their hard work and efforts in prosecuting this case. They were instrumental in removing the defendant from the community. He violated not only his oath as a minister, but also the trust of parents and these young children.”
The FBI and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
U.S. Attorney Finley can be reached at (337) 262-6618 for comments.
Sentencing Hearings Completed for Four Defendants in Cocaine, Heroin, Marijuana, Ecstasy and “Molly” Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Four men arrested in June 2013 as the result of a sweeping fifteen-month joint federal, state and local law enforcement investigation resulting in the seizure of more than 137 grams of heroin, 392 grams of crack cocaine, 235 grams of cocaine powder, 47 grams and 100 pills of the synthetic drug “Molly,” 100 Ecstasy pills and six firearms, including a machine gun, have been sentenced to federal prison, announced United States Attorney Peter F. Neronha.
The investigation initiated in March 2012 by the Bureau of Alcohol, Tobacco, Firearms and Explosives and investigated jointly with DEA, with the assistance of agents and officers from the FBI, Homeland Security Investigations, United States Marshals Service, Rhode Island State Police and Cranston, Pawtucket, Providence, and Warwick Police Departments, determined that the drug trafficking conspiracy was responsible for a significant quantity of drugs being trafficked to other drug dealers and to drug users.
Salee Yang, 30, of Pawtucket, the primary target of the investigation, was sentenced in March to 120 months in federal prison; Eric Negron, 49, of Pawtucket, who admitted to being a primary supplier of heroin, cocaine and crack cocaine to Yang, was sentenced in April to 184 months in federal prison; Stanz Hun, 26, of Cranston, a member of the 4/5th Mafia and PSB street gangs who admitted to being a customer of Yang and admitted to operating his own drug trafficking business, was sentenced today to 84 months in federal prison; and Peter Lietar, 37, of Pawtucket, who admitted to supplying Ecstasy and “Molly” to Yang, was sentenced in March to 24 months in federal prison and ordered to pay a fine of $30,000. At the time of his arrest, agents discovered a marijuana grow in Lietar’s home larger than he was permitted as a State of Rhode Island authorized medical marijuana caregiver card holder.
“Drug trafficking, illegal guns and gang activity are a 1 – 2 – 3 recipe for urban violence, often with disastrous results,” said United States Attorney Peter F. Neronha. “The long sentences received by these men are well-deserved, and will contribute to making our urban neighborhoods safer. Yet, obviously, the work must continue, and I am grateful to our federal, state and local law enforcement partners for our continuing, ongoing, coordinated efforts to confront violence in urban neighborhoods.”
The cases were prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
This case was brought as part of the Rhode Island Urban Violent Crime Initiative. The Rhode Island Urban Violent Crime Initiative is a local, state and federal law enforcement collaboration to proactively identify, investigate and prosecute individuals responsible for crimes of violence in urban neighborhoods.
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[email protected]Rochester Man Pleads Guilty to Online Enticement of a MinorRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Matthew D. King, 31, of Rochester, N.Y., pleaded guilty to online enticement of a minor before U.S. District Court Judge Frank P. Geraci. The charge carries a maximum penalty of life in prison with a mandatory minimum period of 120 months in prison, a fine of up to $250,000, or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that in 2012, the defendant was employed as a Youth Care Professional at the Hillside Children’s Center (HCC), a provider of care for youth and families with a wide range of emotional, behavioral, or life-circumstance challenges. In this role, King had direct supervisory responsibility over at risk youth, including the victim who was a 15 year old child.
Between February and August 2012, the defendant came into contact with the child on a regular basis and would frequently discuss sexual topics with the victim. King eventually asked the child to engage in sexual activity, and in fact did engage in sexual activity with the child on several occasions at or around HCC. In August of 2012, the victim reported this activity to HCC staff after King was reassigned as his supervisor. HCC immediately notified the New York State Police who conducted an investigation.
The investigation revealed that the defendant and the child engaged in sexual conduct on multiple occasions. Investigators also learned that on July 23, 2012, King contacted the child over the internet using an online social networking site, to arrange a sexual meeting with the child later that day. The defendant used this online contact to entice the child to engage in sexual conduct, which then took place. State Police contacted Homeland Security Investigations for assistance.
Following the State Police investigation, the defendant was charged with and pled guilty to five counts of Criminal Sexual Act, 3rd Degree (Felony) and two counts of Endangering the Welfare of a Minor (misdemeanor) in State Court related to his contact with the child.
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 May 2006 by the Department of Justice. Led by 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 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.
The plea is the culmination of an investigation on the part of Investigators with the New York State Police, under the direction of Major Scott Crosier, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is set for October, 23, 2014 at 9:30 a.m. before Judge Geraci.Rochester Man Arrested; Charged with Falsely Claiming United States CitizenshipRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Eugene Louis Thompson, 47, of Rochester, N.Y., was arrested and charged by criminal complaint with making a false written statement to the United States and falsely claiming to be a United States Citizen. The false statement charge carries a sentence of up to five years in prison, while the false claim to United States Citizenship carries a sentence of up to three years in prison. Both are also punishable by a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, the defendant applied for employment with a federal contractor to work in a federal building in the Rochester area. During the application process, Thompson, a citizen and national of Liberia who is unlawfully present in the United States, made false statements on his background paperwork, including falsely claiming to be a United States Citizen.
The defendant made an initial appearance today before U.S. District Court Judge Frank P. Geraci. Thompson was detained, and is due back in court on July 28, 2014 before Magistrate Jonathan W. Feldman.
The criminal complaint is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.Remarks as Prepared for Delivery by U.S. Attorney Paul J. Fishman on the Results of the Investigation into the Newark Police DepartmentRead the Press Release
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NEWARK, NEW JERSEY
Good afternoon, and thank you all for being here.
We are here today to discuss two things. First, we want to describe the results of the investigation of the Newark Police Department that my office has conducted together with the Justice Department’s Civil Rights Division. And second, based on the results of that investigation, we are announcing that we have signed an agreement in principle with the city and the police department to make the changes that will give the people of Newark the first-class police department they deserve.
Before we start, though, I want to thank Jocelyn Samuels, the Acting Assistant Attorney General of the Justice Department’s Civil Rights Division, and the members of her staff who have worked on this investigation so closely with me and my office. Ms. Samuels will speak to you in a few minutes about why it is so important that our law enforcement officers conduct their vital work in a way that protects us at the same time it honors the Constitution we’ve all sworn to uphold. I also want to welcome Mayor Ras Baraka, Police Director Eugene Venable, and Chief of Police Anthony Campos. The city and the police department have cooperated throughout our investigation, and their presence here today reflects how deeply committed they are to this process and to the success of the police department.
The remedial measures outlined in the agreement will include significant changes to the department’s policies and procedures for stopping and questioning people; when and how officers use force; what training they receive; and improving the department’s systems of accountability. The agreement also requires fair application of officer discipline, better data collection and analysis, and more rigorous procedures for safeguarding personal property that belongs to people who have been arrested. The agreement specifically states that we will now turn to finalizing a consent decree that will be filed and enforceable in federal court. That document will require the appointment of a monitor to follow and report on the progress that the city and the police department are making. Finally, the agreement recognizes – as all of us up here know – that the police department needs to have a much deeper relationship with the community it protects.
These steps represent a major commitment to changing how the city of Newark will be policed.
So, why do we need these changes? Why are we here today?
Three years ago, we announced that we were launching an investigation into whether the Newark Police Department had engaged in a pattern or practice of unconstitutional policing. During that investigation, we met and spoke with many members of the force at every level, union representatives, other law enforcement agencies, public defenders, community members, elected representatives, and others. We reviewed thousands of reports, NPD polices and training records, and internal affairs files. Members of the team rode with the police to see first-hand what the challenges they face and how they do their jobs. We consulted with experts from other police departments around the country.
We saw what we already knew in my office to be true: most of the men and women who wear the uniform of the Newark Police Department bring enormous dedication and integrity to their jobs every day. But we also found an organization that is challenged in fundamental ways and has engaged in a pattern and practice of unconstitutional policing in a broad range of areas.
Let me start with stops. Over a three-and-a-half year period, nearly 75 percent of the reports of pedestrian stops failed to describe a constitutionally adequate reason for those stops. To stop someone on the street, an officer must have “reasonable suspicion” that the person is engaged in criminal activity. But the reasons that the police gave for those stops weren’t enough to meet that standard.
Some of this is a lack of clarity in NPD’s policies and training, which has promoted a view that living or simply being in a high-crime area is, in and of itself, criminally suspicious. But that’s not a constitutional way to police.
We also found that the burden of this practice of stopping people without sufficient reason has fallen most heavily on black people. Eighty-five percent of the people stopped by the police in Newark are black in a city where the black population is 54 percent. So it stands to reason that, if the police are stopping people in Newark for impermissible or insufficient reasons, the people who are most likely to have that happen to them are black.
Let me clear: we are not saying that this disparate impact is the result of intentional discrimination. There may be other explanations. But the City of Newark and NPD need to improve the collection and analysis of stop, search, and arrest data to permit more thorough analysis of the racial and ethnic impact of NPD’s police practices, and the Agreement provides for that.
Some of the people who have been stopped and arrested were lawfully objecting to police action or simply behaving in a way that officers perceived as disrespectful. That’s a violation of individuals’ rights under the Fourth and First Amendments. And the city has agreed that this practice has to change too.
We also found reason to believe the NPD has engaged in a pattern or practice of the use of excessive force. Over a six-year period, the NPD sustained only a single complaint that a police officer had used unreasonable force. While there is no “correct” rate at which a police department must or should sustain these kinds of complaints, that statistic is stunningly low for a police department of the size of NPD.
There are lots of reasons for this problem. The training on use of force isn’t remotely good enough; the reports themselves have been inadequate; there are a lot of situations in which force has been used and the police simply haven’t reported it; and the investigations by internal affairs have been woefully substandard. No police department can function correctly without effective reporting, supervision, and review of use of force and the city and the police department’s leadership have agreed to fix it.
The investigation also found a pattern or practice of theft of citizens’ property by NPD officers, especially in NPD’s specialized units, such as the narcotics and gang units, and at NPD’s prisoner processing unit. The NPD hasn’t adequately investigated theft complaints, it hasn’t taken corrective action against offending officers, and it has declined to implement even its own investigators’ recommendations to prevent theft. The police department has to adequately screen candidates for specialized assignments, rotate officers, and monitor those whose integrity is in question.
In fact, the entire internal affairs operation of the NPD is in severe need of overhaul. They need more training; they need more resources; and they need to have a much better system of tracking allegations against officers across the department. The absence of meaningful review has contributed to all of the other issues we’ve identified.
And it is also clear that the police department’s relationship with the people of the city have suffered from the combination of those practices. Community trust has deteriorated, and that in turn has compromised the effectiveness of the department.
The response to those problems is embodied in the Agreement in Principle that we’ve signed today. This agreement will serve as the framework for a new structure, increased transparency and accountability that is desperately needed to turn this department around. We are now in position to negotiate the final agreement, including the selection of an independent monitor, but it will certainly include remedial measures to address the deficiencies I’ve just described. Those will include civilian review and community engagement; closer use of force documentation and review; improved internal affairs practices; fair and consistent application of discipline; constitutional stop, search and arrest practices; improved data collection and review; better safeguarding of personal property; and an enhanced early warning system to support effective supervision and management.
The people of Newark deserve to be safe, whether sitting in front of their houses on Bergen Street or walking through Branch Brook Park or hustling to catch a train at Penn Station. So do the thousands of people who come here to work and to take advantage of all the city has to offer. But they also need to know that the people who are protecting them, who are making them safe, are doing this incredibly important and dangerous work while still respecting their rights under our constitution. The Justice Department has a long history of making sure of that. We recognize that great police work is constitutional police work. We are safer, and officers are more effective, when they follow the law.
I’d now like to turn the lectern over to my friend, Jocelyn Samuels, the Acting Assistant Attorney General for the Civil Rights Division of the Department of Justice to talk about exactly that.
In the last several weeks, since his election, I’ve had a few meetings with Mayor Ras Baraka to discuss this investigation, the agreement in principle, and how we move forward. I’m confident that he will continue in the same cooperative spirit that we’ve seen from the city for the last three years and that he is committed to the reforms we’re discussing today. Mayor Baraka.
I have been the U.S. Attorney for almost five years and, during that time, we have had no more important local partner in the fight against violent crime – drugs, gangs, and guns – than the Newark Police Department. I know first-hand how dedicated and professional its police officers are and I am proud of the work we have done together.
But I also know how much more effective they can and will be after we implement these changes and reforms. That will take real work: there will be difficult conversations and bad habits can be hard to break. But I am confident that the city and the police department are committed to making it happen.
I have worked in Newark almost continuously for more than 30 years. It is a hub of commerce and transportation, home to a great performing arts center and sports arena, institutions of education and government, of medicine and culture. It has a rich history and heritage going back to its founding almost 350 years ago. It is a great city, and its people deserve and are entitled to a great police force.
President Announces New AmeriCorps Partnerships to Expand Opportunities to YouthRead the Press Release
As part of his My Brother’s Keeper initiative, President Obama announced new AmeriCorps partnerships with federal agencies and the private sector to connect young people to mentoring, support networks and job skills to help them reach their full potential.
Monday’s announcement altogether represents a total of $24 million in investments in national service. The Departments of Justice and Agriculture (USDA) are joining with the Corporation for National and Community Service (CNCS) to launch new AmeriCorps programs and partnerships that total up to $14 million over three years. Private sector commitments from AT&T and Citi Foundation will support additional AmeriCorps service opportunities that provide young people with skills and supports to successfully enter the workforce.
“America’s future will be defined, and our progress determined, by the doors we open and the support we offer to young people across the nation,” said Attorney General Eric Holder. “My Brother’s Keeper, and innovative initiatives like this one, must be a central part of this work. By involving young people in service projects and offering them the benefits of mentorship – through programs like AmeriCorps – we can help our kids mature into responsible, confident, and productive young adults. And we can do our part to ensure that every child, from every background, has the tools they need to learn, to grow, to thrive – and to lead.”
CNCS and the Department of Justice’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) are jointly funding Youth Opportunity AmeriCorps . The program, which totals up to $10 million over three years, will enroll disconnected youth in national service programs as AmeriCorps members. It includes a mentorship component that will provide critical mentoring support to the AmeriCorps members.
USDA and CNCS have joined in a landmark new partnership between AmeriCorps and the USDA’s Forest Service that connects youth and veterans with service opportunities to restore the nation’s forests and grasslands. The $3.8 million in joint funding will provide resources for both AmeriCorps grantees and member organizations of the 21 st Century Conservation Service Corps (21CSC), and will also provide for 300 new AmeriCorps members serving in U.S. forests and grasslands.
The commitments announced today support the My Brother’s Keeper initiative by increasing entry-level job, mentorship and apprenticeship options for all young people, including boys and young men of color. They also advance the goals of the President’s Task Force on Expanding National Service , which calls for new public-private partnerships that use national service to help solve our nation’s most pressing challenges.
“As a nation, there is much more we can do to help our young people stay on track and reach their full potential in life,” said CEO of CNCS Wendy Spencer. “AmeriCorps is a proven pathway to opportunity that provides skills, leadership, and college support for young people. We are thrilled to join with our federal and corporate partners to launch new AmeriCorps programs that will put hundreds of young people on a path to success in school and life.”
“This landmark partnership between the Forest Service and USDA with AmeriCorps and the Corporation for National and Community Service provides youth and veterans with new job skills while helping to restore America's forests and grasslands,” said U.S. Secretary of Agriculture Tom Vilsack. “The administration's continued support for the 21 st Century Conservation Service Corps furthers President Obama's goals of expanding economic opportunity, creating new ways to engage in service projects, and reconnecting Americans to the great outdoors.”
In addition to new federal partnerships, the White House announced additional AmeriCorps commitments from the private sector to support the goals of My Brother’s Keeper. AT&T is launching the Aspire Mentoring Academy Corps , powered by AmeriCorps, AT&T and MENTOR: The National Mentoring Partnership. The program will engage AmeriCorps members in regions around the country and engage thousands of youth from underserved communities in mentoring activities.
“Research shows that the presence of a mentor in a young person’s life significantly improves their potential for success,” said AT&T Chairman and CEO Randall Stephenson. “That’s why I and many of our employees are currently mentoring students across the country.”
Citi Foundation is making a three-year, $10 million commitment to create ServiceWorks , a groundbreaking national program powered by AmeriCorps and Points of Light that uses volunteer service to help 25,000 young people in 10 cities across the United States develop the skills they need to prepare for college and careers. The program, which will deploy 225 AmeriCorps VISTA members over three years, will engage youth ages 16-24 in service and build a large-scale volunteer response to the crisis of low college and career attainment. The young people will receive training in critical 21 st century leadership and workplace skills, the chance to build their networks and connections to their communities, and the opportunity to use their new skills by participating in and leading volunteer service projects.
AmeriCorps members serving in these programs, most of whom will be youth from underserved communities, will earn education scholarships to help pay for college or repay their student loans – putting them on track for greater economic opportunity in the future.
On Feb. 27, 2014, President Obama launched the My Brother’s Keeper initiative to address persistent opportunity gaps faced by boys and young men of color and to ensure that all young people can reach their full potential. The president’s My Brother’s Keeper Federal Task Force released a 90-day report on May 30, which identified starting points for what will be an enduring effort at improving the life outcomes for our youth, including boys and young men of color.
As part of this effort, CNCS joined joining with other federal agencies and nonprofit organizations to launch a campaign to recruit individuals to serve as mentors to boys and young men of color across the country. The United We Serve website includes a database of mentoring opportunities searchable by zip code.
Philadelphia Man Indicted on Attempted Robbery and Gun ChargesRead the Press Release
Jamal Charles, 19, of Philadelphia, PA, was charged today by indictment with the attempted armed robbery of a check cashing business, announced United States Attorney Zane David Memeger. According to the indictment, Charles walked in to the ACE Cash Express, on Germantown Avenue in Philadelphia, on May 27, 2014, and ordered an employee, at gunpoint, to open the store safe. Police arrived before Charles could get away. In addition to attempted robbery, Charles is charged with possession of a firearm during and in relation to a crime of violence.
If convicted of the charges, Charles faces a maximum sentence of life with a mandatory minimum of seven years in prison. He also faces up to five years of supervised release and a possible fine.This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Ewald Zittlau.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Penn National Racetrack Employee Pleads Guilty to Fraud ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Danny Robertson, 63, Hershey, Pennsylvania pled guilty in United States District Court in Harrisburg to wire fraud relating to providing false information to racing officials and the public.
According to United States Attorney Peter Smith, Robertson was an employee at the Penn National racetrack and worked as a clocker. His duties included being present at the racetrack when horses had their official workout. Robertson was responsible for verifying that the horse was the actual horse the trainer represented it to be, accurately recording the distance and the time the horse ran in and providing the information to racing officials for the official daily racing program. Robertson also provided the workout time information by interstate wire via computer to Equibase, a Kentucky-based company that distributes information on a racehorse’s performance and workout times to organizations, media outlets and publications such as the Daily Racing Form, as well as on its own website.
Robertson was charged in an indictment presented on November 20, 2013. The count of the Indictment to which Robertson pled guilty alleged that the workout time information is relied upon by the betting public in deciding which horse to wager on in any given race. Robertson admitted that, in exchange for cash, he provided false workout times to racing officials and to Equibase. The times provided by Robertson as part of the fraud were inaccurate, or were completely fabricated for a horse that did not work out at all at the track. Robertson profited personally from the scheme, the betting public was defrauded and Robertson’s’ employer, Hollywood Casino and Racetrack, was denied its right to Robertson’s honest services.
Robertson pled guilty today before Senior U.S. District Court Judge William W. Caldwell pursuant to a plea agreement with the government. The investigation was conducted by the Federal Bureau of Investigation’s Harrisburg Resident Agency, the Pennsylvania State Police and the Pennsylvania State Horse Racing Commission. Prosecution was assigned to Assistant United States Attorney William A. Behe.
Robertson faces up to 20 years imprisonment and a $250,000 fine.
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.
Owner of Forty Fort GM Foodmart Store Sentenced to Prison for Money Laundering ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 47-year-old Forty Fort businessman was sentenced to 31 months in federal prison today by Senior U.S. District Court Judge Edwin M. Kosik for participating in a conspiracy to launder drug proceeds related to the distribution of synthetic marijuana.
According to United States Attorney Peter Smith, the defendant, Mastan Mathan, of Forty Fort, previously admitted to conducting financial transactions with drug proceeds that were designed to conceal the nature of the proceeds and carry on the illegal distribution of synthetic marijuana. The money laundering activity occurred between October 2011 and July 2012, and involved approximately $310,000.
Mathan was charged in a criminal Information filed by the United States Attorney. The Information states that Mathan and his co-conspirators obtained synthetic marijuana from out-of-state suppliers; sold synthetic marijuana to customers from the GM Foodmart Store in Forty Fort; and deposited the proceeds of drug sales into at least two bank accounts in order to conceal the illegal nature of the proceeds and to promote the carrying on of the illegal drug business.
The prosecution of Mathan resulted from an investigation by the IRS Criminal Investigative Division, the Drug Enforcement Administration, and the Pennsylvania State Police.
Judge Kosik also ordered Mathan to be placed on supervised release for two years after serving his prison sentence. Mathan has forfeited approximately $174,000 to the United States that was seized by agents during the investigation.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Owner of Allergy Lab Pleads Guilty to Faking Allergy Test ResultsRead the Press Release
ATLANTA - Rahsaan Jackson Garth has pleaded guilty to a charge of health care fraud for faking the results of allergy tests that patients’ doctors had ordered.
“Garth put his own greed above the health and safety of citizens,” said United States Attorney Sally Quillian Yates. “This defendant seriously endangered the lives of children and adults in Atlanta when he faked their allergy test results and misled their doctors.”
“Such reckless conduct cannot be tolerated” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General in Atlanta. “The blatant disregard for potential patient harm is inexcusable, especially when many of the patients affected were children and the elderly. Today’s plea demonstrates the OIG’s commitment to bringing to justice those who put profit before patient safety.”
According to United States Attorney Yates, the charges and other information presented in court: The defendant, Rahsaan Jackson Garth, a/k/a/ R. Jackson Garth, opened an allergy laboratory in 2011, named Polaris Allergy Labs, Inc. Polaris Allergy Labs, Inc. was located in East Point, Ga. Doctors would send their patients’ blood samples to Polaris Allergy Labs, Inc. to be tested for food and environmental allergies. Beginning in approximately September 2012, and continuing through February 2014, Garth directed his allergy laboratory technician not to actually test some of the blood samples for allergens. Garth ordered his technician not to test the blood in order to save money by not using the allergen reagents necessary for testing. Instead of testing the blood, Garth would create fake allergy test result reports for the patients. Then he would have the fake test result reports sent back to the patients’ doctors.
Sometimes Garth created results showing no allergic reaction, and other times he created results showing an allergic reaction, in order to avoid raising the suspicions of the doctors to whom he sent fake test result reports. The patients’ doctors were unaware that Garth was sending them fake allergy test results for their patients.
After creating a fake allergy test report for a patient, Garth would then cause a bill to be submitted to the patient's health care benefit program, even though no service had in fact been provided.The sentencing for Garth, a/k/a R. Jackson Garth, 39, of Marietta, Ga., has not yet been scheduled.
This case is being investigated by the Department of Health and Human Services.
Assistant United States Attorney Mary L. Webb is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Orange County Man Pleads Guilty to Defrauding Banks and S.B.A. by Illegally Obtaining Commercial Loans Worth More Than $10 MillionRead the Press Release
SANTA ANA, California – An Orange County businessman has pleaded guilty to federal charges related to a series of fraud schemes that include one in which he worked with his criminal defense attorney to fraudulently apply for millions of dollars in loans backed by the Small Business Administration.
Donald Keith Goff, 66, of Laguna Niguel, pleaded guilty late yesterday to three felony counts – mail fraud, wire fraud and bank fraud – for leading a group of conspirators in a series of complex, multi-million dollar fraud schemes. In one scheme, Goff admitted that he and his criminal defense attorney conducted a scam after Goff had already been indicted by a federal grand jury in the prior fraud.
According to court documents and his admissions in court, Goff orchestrated a scheme in 2006 and 2007 to defraud Grand Pacific Financing Corporation (GPFC), which provided a $4.5 million loan to finance the purchase of a gas station business in Fountain Valley. Goff was unable to obtain the loan himself as a result of his poor credit rating, history of being sued by creditors and failure to pay judgments. To obtain the loan, Goff created a shell corporation and recruited an unemployed truck driver to act as a “straw buyer” who posed as the owner of the shell company and applied for the loan in the corporation’s name. As part of the scheme, Goff and a co-conspirator included false information in the loan application regarding the straw buyer’s experience and assets. In addition, Goff and a co-conspirator bribed an escrow agent to falsely advise the bank that a $600,000 equity down payment had been used for the purchase, when in fact no down payment was made. During this scheme, Goff worked with his wife, Melanie Goff; his step-daughter, Monty Brown; a business associate named Leon Draper; and others.
Later in 2007, after obtaining the loan from GPFC and gaining control of the Fountain Valley gas station business, Goff orchestrated a scheme to defraud Nara Bank. In this fraud, Goff formed another shell corporation, installed his wife as owner and had the new shell corporation “buy” the gas station business. Goff then had his wife and step-daughter apply to Nara Bank for a loan to “refinance” the supposed debt one shell company owed the other, without disclosing to the bank that they controlled both companies. Nara Bank was provided false information regarding his wife’s credit history and a $600,000 deposit supposedly put down on the purchase. When the deal closed, more than one-third of the $1.4 million in loan proceeds were transferred to a bank account the Goffs controlled.
Over the rest of 2007, Goff and his family used the Nara Bank loan proceeds, as well as money siphoned from the gas station business, to pay personal expenses, including purchasing luxury items. By early 2008, the shell corporations had defaulted on the GPFC and Nara Bank loans, which caused each financial institution to suffer losses of several hundred thousand dollars. The SBA, which partially guaranteed the Nara Bank loan, lost nearly $1 million.
In May 2012, a federal grand jury in Santa Ana indicted Goff, his wife, Brown and Draper in the schemes to defraud GPFC and Nara Bank. After he was charged, Goff was represented in the case by defense attorney Gino Pietro.
After the indictment, Goff, Brown and Pietro engaged in a similar plot to defraud Hana Small Business Lending, Inc. In this scheme, Goff and Pietro created a shell corporation and recruited a straw buyer – this time, former attorney Gregory Sullivan – to pose as the owner of the new shell corporation and to apply for $4.5 million in loans to finance the purchase of gas station businesses in Anza, California and Imperial, California. This scheme also involved providing false information regarding the straw buyer’s experience and assets, bribing an escrow agent to falsely tell Hana that there were $2.1 million in down payments, and overstating the sale prices of the businesses. Hana funded the loans, which were guaranteed by the SBA. From the loan proceeds, Goff and his family received nearly $300,000, Pietro received $250,000, and Sullivan received $100,000. Over the next six months, Goff and his family used the loan proceeds and substantial funds from the gas station businesses for personal expenses, as they began to default on the loans from Hana, which has since foreclosed on the business. Hana and the SBA now face an estimated $3 million in losses.
As a result of these schemes, investigators believe that banks and the SBA suffered losses of approximately $5 million.
“Attempts to use SBA’s 7(a) loan program as a personal checking account will be met with the full force of the U.S. justice system,” said SBA Inspector General Peggy E. Gustafson. “Together with our law enforcement partners, the OIG will continue to ensure those who commit fraud are brought to justice.”
Goff pleaded guilty late Monday afternoon before United States District Judge Andrew J. Guilford, who is scheduled to sentence the defendant on November 17. As a result of today’s guilty pleas, Goff faces a statutory maximum sentence of 70 years in federal prison.
Melanie Goff and Brown previously pleaded guilty and are scheduled to be sentenced by Judge Guilford, respectively, on October 6 and January 12, 2015.
Draper has signed a plea agreement and is scheduled to plead guilty on Friday in federal court in Santa Ana.
Pietro, who was charged separately by the United States Attorney’s Office in San Diego, has also pleaded guilty. Pietro is scheduled to be sentenced by Judge Guilford on October 20.
Sullivan is scheduled to go on trial in Santa Ana federal court on December 9.
These criminal cases are the result of an investigation by the U.S. Small Business Administration – Office of Inspector General and the Federal Bureau of Investigation. The United States Attorney’s Office for the Southern District of California provided substantial assistance on this case.
Release No. 14-095
North Port Couple Sentenced to Prison for Filing A False Tax Refund ClaimRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore today sentenced North Port residents James Dee Jaeger (62) and Lora Anne Jaeger (50) to 18 months each in federal prison. The Jaegers both pleaded guilty on April 21, 2014 to one count of filing a false tax refund claim.
According to court documents and evidence presented at sentencing, on March 31, 2009, James Dee Jaeger and Lora Anne Jaeger electronically filed a joint federal income tax return with the Internal Revenue Service (IRS) from the Middle District of Florida, falsely claiming a refund in the amount of $344,672. The fraudulent tax refund claim filed by the Jaegers was consistent with a bogus theory that the federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID Forms to the IRS. Under this theory, the taxpayer first files a false information return, such as a Form 1099 Original Issue Discount (OID), to justify a false refund claim on a corresponding tax return. In this case, the IRS did not issue the fraudulent tax refunds claimed by the Jaegers. In addition to their own fraudulent tax refund claim, the Jaegers advised and encouraged other individuals to file similar fraudulent tax returns claiming greater than $2,500,000 in fraudulent refunds.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Kevin C. Lombardi of the Department of Justice, Tax Division.
Nine Individuals Indicted for Wire Fraud and Student Loan FraudRead the Press Release
San Juan, Puerto Rico – On July 16, a federal grand jury returned an 18-count indictment against nine individuals for student loan fraud, announced United States Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez. The investigation was conducted by the Department of Education, Office of Inspector General.
Charles Santana, Jessica Rodríguez-Velàzquez, Eliezer Santana-Cruz, Nydia I. Cruz-Rodríguez, Alexis Cockran-Cruz, José Lanause-Cruz, Yamille Santana-Cruz, Matilde Santana-Cruz, and Irma Montañez-Aponte, aiding and abetting each other, devised a scheme in which the defendants would obtain money in the form of student financial aid funds provided and insured by the U.S. government to which they were not entitled, under false and fraudulent pretenses.According to the indictment, defendant Charles Santana recruited other persons who did not intend to attend school or earn a degree (“the straw students”). Santana promised the straw students a cut of the student aid funds that would be fraudulently obtained by the scheme. Santana and Rodríguez-Velàzquez instructed the straw students to enroll in online courses at InterAmerican University (IAU), Guayama. The straw students enrolled in this program in order to obtain the student aid funds without any intent to earn a degree or to use the money for authorized educational expenses.
Santana solicited personal identifying information from the straw students for the purpose of using their identities to apply for federal student aid for each straw student. He falsely stated on master promissory notes that the proceeds of student aid funds would be used for authorized educational expenses, when in truth and fact, Santana knew that the straw students did not intend to attend school or earn a degree, and that the money would not be used for authorized educational expenses.
The defendants caused federal student loans and grants to be awarded to themselves and others based on false information provided on the IAU and Free Application for Federal Student Aid (FAFSA) applications, and the master promissory notes, which resulted in student aid funds being disbursed to themselves and others. The defendants caused student aid funds to be wrongfully disbursed in an aggregate amount in excess of $300,000.00.
Santana and Rodríguez-Velàzquez received student aid funds, and they gave a cut of the money to the straw students. Santana completed the online assignments for each straw student so that they appeared to be active students and the financial aid would continue to be disbursed to the defendants.
Defendant Charles Santana is facing eight counts of aggravated identity theft. According to the indictment, he transferred, possessed, and used, without lawful authority, a means of identification of another person, that is, the names, social security numbers, and electronic signatures of other persons, in order to be able to carry out the scheme.
“These individuals are charged with defrauding education programs for personal gain,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “We will continue to investigate and prosecute those who engage in corrupt acts which directly affect federal programs and the availability of these funds for its intended recipients,” stated Rodríguez-Vélez. Said U.S. Attorney Rosa Emilia Rodríguez-Vélez
“Scams like the ones these nine individuals are alleged to have perpetrated steal money from hardworking taxpayers. They are criminal enterprises that we call “fraud rings” -- large, loosely affiliated groups of criminals that are operating around the country, exploiting distance education programs at colleges and universities in order to fraudulently obtain Federal student aid,” said Yessyka Santana, Special Agent in Charge of the U.S. Department of Education's Southeastern Regional Office. “They see it as an opportunity to grab some quick cash with relatively little effort. We see it for what it is -- a crime. As the law enforcement arm of the U.S. Department of Education, ensuring that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions is a big part of our mission.”
This case is being prosecuted by Assistant U.S. Attorney Justin R. Martin. The maximum penalties are twenty years of imprisonment for the wire fraud and five years for the student loan fraud. Defendant Santana is also facing two years of imprisonment consecutive to any sentence, for each of the aggravated identity theft charges. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.Mountain Home Man Sentenced on Federal Child Pornography ChargeRead the Press Release
Admitted sexual contact with prepubescent minors
BOISE - Christopher James Swicegood, 22, of Mountain Home, Idaho, was sentenced today to 180 months in prison for possession of sexually explicit images of prepubescent minors, U.S. Attorney Wendy J. Olson announced. The defendant was given three-and-a-half months credit for time served in state custody. Chief U.S. District Judge B. Lynn Winmill also ordered Swicegood to serve 35 years of supervised release following his release from prison.
According to the plea agreement, the investigation began in January 2013, when U.S. Immigration and Customs Enforcement investigators followed a lead provided by a foreign government concerning users of a website used extensively by persons interested in exchanging child pornography. Investigators obtained a search warrant for the home Swicegood shared with others in Mountain Home and found images and videos of prepubescent minors being sexually abuse on a computer and hard drive Swicegood owned. Swicegood admitted that he had posted child pornography on the foreign website and that he had traded child pornography with other users of the foreign website. Swicegood will forfeit the computer equipment used in the home.
The National Center for Missing and Exploited Children examined the material found on Swicegood’s media and identified 230 image files from 57 known child pornography series, and 30 videos from 14 separate child pornography series. Each series represents a different minor victim or group of minor victims being sexually abused. These victims come from a variety of states of the United States and many foreign countries.
Also according to the plea agreement, Swicegood admitted sexual interactions, including sexual touching, with at least three different minor children in the Mountain Home area. He was originally charged in Elmore County with Lewd or Lascivious Acts on a Minor Child under the age of 16 years. Those charges were dismissed by motion of the prosecuting attorney on June 13 as a part of Swicegood’s agreement to admit that conduct in his federal plea agreement.
“This case exemplifies the important role local and federal law enforcement partnerships play in putting child predators behind bars,” said Olson. “Let this sentence serve as a warning to other predators. We will find you, arrest you and ensure that you are prosecuted to the fullest extent of the law.”
The case was investigated by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), which is a member of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Montgomery County Man Sentenced to 20 Years in Prison in Violent Sex Trafficking ConspiracyRead the Press Release
Sex Trafficking Victims Testified to Defendant’s Physical and Sexual Abuse, Threats, Tattoo Branding, and Bragging About Beating Murder Charges
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Jean Claude Roy, a/k/a “Dredd the Don,” and “Dreddy,” age 32, of Germantown, Maryland, to 20 years in prison followed by 10 years of supervised release for conspiring to commit sex trafficking by force, fraud and coercion, three counts of interstate transportation for prostitution, and witness and evidence tampering.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Department of Justice Civil Rights Division Jocelyn Samuels; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
“Jean Claude Roy preyed on vulnerable young women,” said U.S. Attorney Rod J. Rosenstein. “Law enforcement agencies will continue to work to identify and prosecute human traffickers.”
“The Civil Rights Division is committed to pursuing justice on behalf of vulnerable members of our society,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “This sentence sends a clear message that the United States will not tolerate modern-day slavery and will work tirelessly to restore the rights and dignity of its victims.”
“This case serves as another chilling example of the callous disregard for human life demonstrated by traffickers,” said U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigation’s (HSI) Baltimore Deputy Special Agent in Charge James P. Nagle. “Our special agents will continue pursuing these criminals to ensure they are behind bars where they can no longer exploit the innocent.”
According to evidence presented during the two week trial, between August and September 2012 Roy transported a victim across state lines to engage in prostitution. He also took the victim’s identity documents and kept all of the victim’s money.
During the trial, victims recounted their fear of Roy, explaining instances of physical and sexual abuse, threats, tattoo branding and Roy’s bragging of beating a murder charge years prior in Massachusetts. “If he could kill a man, who’s gonna care about a prostitute,” one victim said from the witness stand. Witnesses detailed the guns in Roy’s possession and how he prostituted women in Maryland, Virginia and North Carolina.
In November 2012 Roy recruited co-defendant Brittney Creason to engage in prostitution. Thereafter, Creason helped Roy recruit and transport girls from Illinois and North Carolina to engage in prostitution. Roy conspired to force the women to engage in prostitution by again bragging about beating murder charges, taking their identity documents and taking their money.
Trial evidence also showed that from January 1 through 10, 2013, while Roy was in jail on related state charges, he called an individual several times and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.
The jury found Roy not guilty of sex trafficking and attempted sex trafficking by force, fraud and coercion; and possessing and brandishing a firearm during a crime of violence.Brittney Creason, a/k/a “Kitty Amor,” age 20, of Decatur, Illinois, previously pleaded guilty of using a facility in interstate commerce for an illegal activity, and was sentenced to time served of three months in prison followed by three years of supervised release.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, and Trial Attorney William E. Nolan of the U.S. Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit, who prosecuted the case.Monroe Man Sentenced to 10 Years in Prison for Illegally Possessing FirearmsRead the Press Release
MONROE, La. –A Monroe resident was sentenced to 10 years in prison and three years of supervised release for illegal possession of marijuana with intent to distribute and possession of firearms, U.S. Attorney Stephanie A. Finley announced today.
Corey Moses, 36, of Monroe, La., was sentenced by U.S. District Judge Robert G. James, for one count of possessing a firearm after being convicted of a felony and one count of possession of marijuana with intent to distribute. According to evidence presented at the November 15, 2013 guilty plea, Sterlington police officers stopped the vehicle Moses was driving for speeding on December 9, 2010. Moses consented to a search of the vehicle, and police found marijuana, two 9 mm pistols and one .380 caliber pistol. The two 9 mm pistols were stolen from another person. Moses had been previously convicted in Monroe of theft in 1996 and burglary in 1997. He was also convicted in October of 2007 in Providence, R.I., of carrying a firearm by a person convicted of a felony.
“Felons carrying weapons is a violation of federal law,” Finley stated. “The defendant’s situation was further complicated by also possessing an illegal substance and had stolen the weapons. The U.S. Attorney’s Office will continue to vigorously prosecute felons who possess firearms while in possession of illegal drugs. Under our Project Safe Neighborhood Program, we have joined with our state and local partners to assure that convicted felons like Moses are identified, arrested and prosecuted. Our goal is to remove convicted felons, violent offenders, drug traffickers and others who carry and use firearms from our streets and neighborhoods. We want to make sure that each citizen feels safe and secure.”
The Sterlington Police Department, West Monroe Police Department, Ouachita Parish Sheriff’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program to reduce violence by aggressively enforcing existing federal firearms and explosives laws.