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Wednesday 16 July 2014
Five Defendants Sentenced in the District Court of GuamRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that five more defendants who were witnesses in the U.S. v. Mateo B. Sardoma, Jr. aka “Mat”, Rudy P.H. Sablan, Maria C. Edrosa aka “Cristina”, et al. trial were sentenced by Chief Judge Frances Tydingco-Gatewood, as follows:
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Defendant JAMES PANGELINAN, age 44, was sentenced on July 6, 2014, to time served followed by four years of supervised release. Defendant PANGELINAN pleaded guilty to Conspiracy to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 846. Defendant PANGELINAN assisted co-defendant Ana Toves in selling methamphetamine for Defendants Mateo Sardoma, Jr. and Rudy Sablan.
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Defendant SYLVIA MASHBURN DUENAS, age 30, was sentenced on July 8, 2014, to
37 months incarceration followed by five years of supervised release. Defendant
DUENAS pleaded guilty to Conspiracy to Distribute Methamphetamine, in violation of
21 U.S.C. §§ 841(a)(1) and 846. Defendant DUENAS assisted Defendant Mateo
Sardoma, Jr. in obtaining the methamphetamine. -
Defendant CHRISTOPHER A.D. MESA, age 33, was sentenced on July 9, 2014, to 51 months incarceration followed by five years of supervised release. Defendant MESA pleaded guilty to Conspiracy to Distribute Methamphetamine, in violation of 21 U.S.C.
§§ 841(a)(1) and 846 and aiding and abetting the brandishing of a firearm during a drug crime in aid of Defendant Mateo B. Sardoma, Jr. -
Defendant ANTHONY VILLANUEVA, age 48, was sentenced on July 10, 2014, to 46 months incarceration followed by five years of supervised release. Defendant VILLANUEVA pleaded guilty to Conspiracy to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 846. Defendant VILLANUEVA assisted defendant Mateo Sardoma, Jr. by supplying a post office box for Mateo Sardoma, Jr. to bring methamphetamine into Guam.
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Defendant PAUL PEREZ, age 47, was sentenced on July 10, 2014, to 48 months imprisonment and five years of supervised release. Defendant PEREZ pleaded guilty to Conspiracy to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 841 and 846. PEREZ received a shipment of methamphetamine on behalf of Defendant Mateo B. Sardoma, Jr. and mailed some of the cash profits to California.
U.S. Attorney Limtiaco stated, “Our community is not immune from the poison of methamphetamine. These cases illustrate the hard work our partners in law enforcement do every day to stop the distribution of methamphetamine into Guam.” These three defendants were witnesses in the U.S. v. Mateo B. Sardoma, Jr. aka “Mat”, Rudy P.H. Sablan, Maria C. Edrosa aka “Cristina”, et al., which is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
The investigations were conducted by Special Agents and Task Force Officers at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Department of Homeland Security-Homeland Security Investigations (DHS-HSI) and the Drug Enforcement Administration (DEA). The cases were prosecuted by Assistant U.S. Attorney Fred Black.
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Eastern North Carolina Recycling Business and Owner Sentenced for Unlawful Handling of PCB-contaminated Oil, Tax Violations, and False StatementsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that BENJAMIN FRANKLIN PASS, 61, and P&W WASTE OIL SERVICES INC. (P&W), of Leland, N.C., were sentenced today in federal court in Raleigh, North Carolina. PASS was sentenced to 42 months in prison and restitution in the amount of $21,373,143.38 for clean-up costs associated with the environmental contamination at his business and an additional $538,857 to the Internal Revenue Service for federal income taxes he failed to pay between 2002 and 2011.
PASS and the company previously pleaded guilty to crimes related to the unlawful handling and dilution of used oil contaminated with polychlorinated biphenyls (PCB). PASS also pleaded guilty to failure to pay taxes and P&W pleaded guilty to material false statements.
United States Attorney Thomas G. Walker stated, “This disregard of environmental protections resulted in significant contamination. The defendant’s conduct placed an economic burden on the United States and an unreasonable risk to the health and safety of the citizens of North Carolina.”
“Today’s sentence is just punishment for the defendant’s actions, which placed the health of North Carolina’s residents and their natural resources at risk,” said Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Environmental violations such as these are serious crimes, and the Justice Department and the U.S. Attorney’s Offices will continue to vigorously prosecute those individuals and companies who ignore the laws Congress enacted to protect people and our environment from toxic substances like PCBs.”
The court also ordered P&W to pay restitution in the amount of $21,373,143.38 for losses incurred by Colonial Oil and International Paper as a result of the defendants’ mishandling of used oil contaminated with PCBs that led to widespread contamination and millions of dollars in clean-up costs. P&W was also ordered to serve a five-year term of probation and to take remedial action to address the environmental contamination at its facility in eastern North Carolina and other leased property in eastern North Carolina, including but not limited to, the proper treatment and disposal of PCB-contaminated waste oil.
According to information in the public record, PASS owned and operated P&W’s facility in Leland, N.C. The facility is located approximately 500 feet to the east of the Cape Fear River and a federally recognized wetland.
As part of its business operations, P&W collected, transported, processed, and marketed used oil that it received from small and large companies, such as automotive service stations, transformer repair companies and marinas. P&W also conducted tank cleaning and waste removal.P&W, however, was not authorized to transport, store, or handle used oil containing more than two parts per million (ppm) of PCBs. PCBs are man-made organic chemicals that were manufactured domestically from 1929 to 1979 and were used in hundreds of industrial and commercial applications, such as thermal insulation in electrical transformers and capacitors. PCBs were determined to cause cancer and have been demonstrated to cause a variety of adverse health effects on the immune system, reproductive system, nervous system, and endocrine system. Accordingly, Congress banned the production of PCBs and mandated that no person may distribute in commerce, or use any PCBs other than in a totally enclosed manner, and directed the U.S. Environmental Protection Agency (EPA) to promulgate rules phasing out the manufacture of PCBs and regulating their disposal. PCBs still exist in products produced before the 1979 ban and if mishandled and released into the environment, can remain for long periods of time in the air, water, and soil.
In July 2009, an employee of P&W transported used-oil contaminated with more than 500 ppm of PCBs from a business in Wallace, South Carolina, to its Leland facility where the contaminated used oil was blended and diluted with other used oil. Testing results obtained by PASS in October 2009 revealed PCB contamination in excess of 4,925 ppm.
The contaminated product was eventually resold to Colonial Oil and International Paper. Colonial Oil discovered the contamination as part of its standard sampling and testing protocol. As a result, over three million gallons of contaminated used oil had to be transported and incinerated at a certified disposal site for PCBs. The costs to Colonial Oil for the proper disposal of the contaminated used oil exceeded $17 million in addition to significant disruption of its business operations.
The investigation further revealed that at the direction of PASS, employees of P&W continued to transport and dilute the PCB-contaminated used oil at the facility after the contamination was discovered. The EPA intervened and had the Leland facility designated a Superfund site. Superfund is the name given to the federal environmental program established to clean up the nation’s uncontrolled hazardous waste sites. Costs for the clean-up of the contaminated tanks at the facility exceeded $3.4 million.
Law enforcement also learned that in 2009 and again in 2010, PASS and P&W falsely certified that its employees had taken requisite training on the handling of hazardous wastes and that, between 2002 through 2011, PASS failed to pay his federal income taxes despite having the ability to pay.
“Today’s sentencing is a direct result of the strong collaboration between EPA-CID and its federal law enforcement partners,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in North Carolina. “In order to safeguard the environment and public health, it is essential that we hold companies and their corporate officers responsible for falling to accurately report violations. We will continue to pursue those who fraudulently report information critical to human health and the environment to preserve the integrity of programs designed to protect the public.”
“Mr. Pass’s disregard to uphold his legal obligations in business and paying income taxes have come with a price,” said Richard Weber, Chief, Internal Revenue Service (IRS) Criminal Investigation. “Today’s sentencing reinforces law enforcements collaborative efforts to enforce the law and ensure public trust.” Thomas J. Holloman, Special Agent in Charge IRS Criminal Investigation added, “A fraud of this magnitude requires a coordinated effort among law enforcement agencies to stop those involved from profiting from their wrongdoing. We are the stewards of our environment and anyone who knowingly pollutes it should be held accountable.”
“Acting Assistant Attorney General Hirsch and U.S. Attorney Walker praised the continued joint efforts of the EPA’s Criminal Investigation Division and the IRS’s Office of Criminal Investigations and the U.S. Coast Guard’s Criminal Investigative Services for their diligent work in the investigation of this matter.” Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina and Trial Attorney Shennie Patel of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division are the prosecutors in charge of the case. Assistant United States Attorney Norman Acker and the Financial Litigation Unit provided significant support to the prosecution team.
East Texans Arrested on Federal ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - U.S. Attorney John M. Bales announced today that six individuals have been arrested following a lengthy investigation into illegal gambling, money laundering and drug trafficking in the Eastern District of Texas.
On July 15 2014, a combined task force of federal, state and local law enforcement executed six federal arrest warrants and four federal search warrants in the Tyler, Texas and Gladewater, Texas area as a result of a joint investigation by the Federal Bureau of Investigation, Smith County Sheriff's Office, U.S. Drug Enforcement Administration, and the Texas Racing Commission.
The operation resulted in the arrest of all six defendants and the seizure of over $30,000 cash, methamphetamine, and several firearms. The following defendants were arrested and appeared before U.S. Magistrate Judge K. Nicole Mitchell on charges of conspiracy to distribute methamphetamine, prohibition of illegal gambling businesses, and conspiracy to money launder:
OMAR BONIFACIO BONILLA, a/k/a “Pelon,” 32, of Tyler;
RENAULT LANSING KAY, a/k/a “Nault Pete,” a/k/a “Chocolate,” 47, of Tyler;
JESSICA MARIA BONILLA, 31, of Tyler;
JOEL ORLANDO BONILLA-LOYA, 36, of Tyler;
GUILLERMO RIVERA-BONILLA, 58, of Tyler; and
SHEENA SHAVETTE PERRY, 31, of Tyler.If convicted, the defendants face as much as life in federal prison.
Homeland Security-Deportation and Removal Operations, Tyler Police Department, and the Texas Department of Public Safety also assisted in the arrests and searches. This case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Richard Moore.
A complaint or arrest is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Easley Man Pleads Guilty to Possession of Child PornRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that James A. Newton, age 54, of Easley, South Carolina, pled guilty today in federal court in Anderson, South Carolina, to possession of child pornography, a violation of 18 U.S.C. ' 2252A. United States District Judge Timothy M. Cain accepted the plea and will sentence Newton once a pre-sentence investigation report has been prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on April 17, 2013, an agent with the Department of Homeland Security, Office of Investigations, was conducting an investigation of individuals sharing child pornography. The agent logged onto a peer-to-peer file sharing program and downloaded child pornography from a user in Easley, SC. Further investigation revealed that this IP address was associated with Newton’s residence.
On July 9, 2013, agents executed a federal search warrant at his residence. Multiple computers and storage devices were seized. Newton had 121 child porn videos and 2,517 still images—that is, images and videos of minors under the age of 18 engaged in sexually explicit conduct and the lascivious display of the genitals. Some of the minors had not attained the age of 12 and were prepubescent.
The case was investigated by agents of the Department of Homeland Security, Office of Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.Dignity Health Agrees to Pay $1.55 Million in Civil Penalties to Resolve Controlled Substances Act ClaimsRead the Press Release
SACRAMENTO, Calif. — Dignity Health, California’s largest hospital provider and the country’s fifth largest health system, has agreed to pay the United States $1.55 million to settle claims of deficiencies regarding the handling of controlled substances at its hospitals and clinics, United States Attorney Benjamin Wagner announced today. Dignity Health will pay $1,250,000 immediately, and the remaining $300,000 will be deferred pending Dignity Health’s compliance over the next two years with a detailed action plan.
The payment and action plan resolve the United States’ claims that Dignity Health facilities in the Sacramento area failed to properly record hundreds of transactions involving controlled substances in violation of the Controlled Substances Act (CSA) and its implementing regulations, and had insufficient compliance procedures and controls regarding the distribution of controlled substances. The action plan agreed to by Dignity Health is designed to advance the health system’s ability to meet its record-keeping requirements and its ability to detect and prevent diversion in its prescription drug-dispensing operations.
The DEA commenced its investigation of Dignity Health following reported losses of over 20,000 tablets of hydrocodone from the outpatient pharmacy at St. Joseph’s Medical Center in Stockton, CA in late 2010 and 2011. A 2011 audit conducted by the DEA at the pharmacy revealed significant shortages of a number of the controlled substances evaluated, including most strengths of hydrocodone, a Schedule III opioid analgesic narcotic sold in tablet form. Hydrocodone is highly addictive and often diverted to the black market from legitimate sources. The DEA’s subsequent investigation revealed that several Dignity Health locations were failing to keep accurate records under the laws designed to safeguard the public against diversion of the most abused classes of legally manufactured and prescribed drugs.
Since the DEA’s investigation, Dignity Health executive leadership has worked cooperatively with the DEA and the U.S. Attorney’s Office to develop a detailed action plan to address the identified deficiencies in Dignity Health’s handling of controlled substances by instituting an overhauled CSA compliance regime. Components of the action plan include: annual external audits of CSA compliance, with results to be reported to the DEA; keyless entry systems installed at Dignity Health locations to monitor and restrict access to areas containing controlled substances; increased physical counts and inventories of controlled substances to quickly identify discrepancies; monthly certifications that record-keeping requirements are met; and annual CSA compliance training for Dignity Health employees who handle controlled substances.
“The abuse of hydrocodone and other painkillers has become an epidemic,” said United States Attorney Wagner. “The CSA created a ‘closed system’ of controlled substance distribution so the DEA can better monitor the movement of prescription drugs to end users. This system reduces the opportunity for diversion of drugs that can have a useful and legitimate medical purpose for those lawfully consuming them. Unfortunately, however, if hospitals and pharmacies are lax in their record-keeping or supervision of their drug-dispensing operations, opportunities arise for the diversion of powerful drugs to unintended users who may be injured by them. We will continue to work with our law enforcement partners to investigate and prosecute these cases.”
“Healthcare providers have an obligation to protect public health. Keeping accurate records and restricting access to controlled substances are key in fulfilling that responsibility,” stated DEA Special Agent in Charge Jay Fitzpatrick. “This significant civil penalty underscores DEA’s commitment in the fight against prescription drug abuse by holding companies accountable, regardless of their size.”
Assistant United States Attorney Colleen M. Kennedy prosecuted the case.
Dalton Man Pleads Guilty to Possessing Child PornographyRead the Press Release
BOSTON – A Dalton man pleaded guilty yesterday in U.S. District Court in Springfield to possessing child pornography.
Jared Sprague, 25, pleaded guilty before U.S. District Judge Mark G. Mastroianni to possessing child pornography. Sprague is being held in custody pending sentencing which is scheduled for Oct. 7, 2014.
In 2012, agents executed a search warrant at Sprague’s residence and seized a computer that contained approximately 100 files of child pornography, including files that involved prepubescent minors subjected to sadistic or violent sexual conduct.
Pursuant to a plea agreement, Sprague has agreed to be sentenced to between 48 and 78 months in prison, 10 years of supervised release, to pay restitution to the minor females depicted in the child pornography collection, and to forfeit his computer media. Sprague also faces a maximum $250,000 fine.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Dalton Police Chief Jeffrey E. Coe, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Cibecue Man Convicted at Trial for Domestic Violence MurderRead the Press Release
PHOENIX, Ariz. – Willard John, 36, of Cibecue, Arizona, was found guilty of Second Degree Murderby a federal jury in Phoenix on July 11, 2014. The case was tried before U.S. District Judge James A. Teilborg. The defendant, who remains in custody, is scheduled to be sentenced before Judge Teilborg on October 15, 2014.
The evidence at trial showed that John killed the mother of his two young children on or about March 19, 2012, by stabbing her multiple times and cutting her neck with a pair of household scissors. Following the murder, he cut his own throat, but survived his injuries. The evidence revealed that John had been physically abusing the victim for years prior to the murder.
A conviction for Second Degree Murder carries a maximum penalty of life imprisonment, a $250,000.00 fine, or both.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs. The prosecution was handled by Dimitra H. Sampson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8082-PCT-JAT
RELEASE NUMBER: 2014-039_JohnFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Cape May County, N.J., Man Charged with Receiving Images of Child Sexual Abuse via InstagramRead the Press Release
CAMDEN, N.J. - A Cape May County, New Jersey man was arrested today by special agents U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), on charges he received images of child sexual abuse over the Internet using his cellphone, U.S. Attorney Paul J. Fishman announced.
Jeffrey Spicer, 44, of West Wildwood, New Jersey, is charged by complaint with one count of receipt of child pornography. He made his initial appearance today before U.S. Magistrate Judge Joel Schneider in Camden federal court and was remanded without bail. A bail hearing is scheduled for Friday.
According to the complaint and statements made in court:
On March 19, 2014, law enforcement officers executed a search warrant at a home in Cape May, New Jersey, Spicer’s residence at that time. Law enforcement officers seized various forms of electronic and digital media from the residence pursuant to the warrant including Spicer’s cellphone, a thumb drive and a computer hard drive. They determined that these devices contained multiple images of child pornography.
On the receipt of child pornography count, Spicer faces a mandatory minimum term of 15 years in prison, a maximum penalty of 30 years in prison and a $250,000 fine if convicted.
U.S. Attorney Fishman credited special agents of the ICE-HIS, under the direction of Special Agent in Charge Andrew McLees; the Cape May County Prosecutor’s Office, under the direction of Prosecutor Robert L. Taylor; the Lower Township Police Department, under the direction of Chief William Mastriana; the West Wildwood Police Department, under the direction of Chief Jackie Ferentz; and the N.J. Regional Computer Forensics Laboratory with the investigation leading to the charges.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators. For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney’s Office in Camden.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
14-251Defense counsel: Lisa Lewis Esq., Assistant Federal Public Defender, Trenton
Spicer, Jeffrey Complaint
British Nationals Who Supported Terrorism Are SentencedRead the Press Release
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NEW HAVEN, Conn. – Two British nationals were sentenced today in New Haven federal court for conspiring to provide and providing material support to terrorists, including the solicitation of funds, personnel, and military equipment to the Taliban, at a time when they were harboring Usama bin Laden and Al Qaeda, and allowing them to have a base of operations in Afghanistan from which they could plan terrorist attacks directed at the United States. Chief U.S. District Judge Janet C. Hall sentenced Babar Ahmad to 150 months of imprisonment, and Syed Talha Ahsan to approximately 96 months of imprisonment, time already served. Ahmad, with Ahsan’s assistance, operated “Azzam Publications,” which maintained a then-pre-eminent series of websites through which the defendants provided extensive material support to terrorist groups, including the Taliban.
Today’s sentencing was announced by Deirdre M. Daly, United States Attorney for the District of Connecticut, John Carlin, Assistant Attorney General for National Security, Bruce Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation.
“Babar Ahmad provided material support unprecedented in scope to terrorists for over seven years,” said U.S. Attorney Daly. “Ahmad solicited funds, personnel and provided military equipment, training and expert advice in support of violent jihad in Afghanistan, knowing full well that his efforts could result in the killing of individuals, including U.S. forces. This criminal conduct continued even after the tragedy of September 11, 2001. I commend the dedicated investigators and members of our prosecution team who have worked tirelessly on this case for more than a decade. Let this be a warning to those that support terrorism, the Government will not rest until you are brought to justice. We thank our law enforcement partners, including Homeland Security Investigations, the FBI, IRS-Criminal Investigation, DCIS, NCIS, and our counterparts in the United Kingdom, all of whom provided critical assistance in this investigation.”
“Today’s sentences prove once again that the United States doesn’t set a time limit on bringing supporters of terrorism to justice,” said John Carlin, Assistant Attorney General for National Security. “We will remain tireless in our pursuit of those who provide material support to terrorists and promote violent extremism both here and abroad.”
“Today marks the culmination of a very long process,” said Bruce Foucart special agent in charge of HSI Boston. “This case began in the wake of the September 11th tragedy, and today, over a decade later these individuals have finally faced justice. I would like to thank my special agents, the FBI and the brave men and women of the London Met for their dogged persistence over the years. Their steadfast support and perseverance throughout this process shows, that the best way to combat international terrorism is through international cooperation.”
“Terrorism comes in many shapes and sizes and, as this case demonstrates, so does the material and financial support of terrorism,” said FBI Special Agent in Charge Ferrick. “We must remain ever vigilant of those like Ahmad who discreetly support radicals committed to violent jihad, not only through financial networking, but also through the supply of personnel, military equipment and intelligence. Ahmad’s crimes were a serious threat to the United States and to the world. It is critically important that the FBI, Homeland Security Investigations and all of our federal partners remain steadfast in the war on terror and those who support it.”
According to court documents and statements made in court, Ahmad was a member of a group that supported the Taliban through various means, including the operation of a series of websites under the name of “Azzam Publications,” including Azzam.com and Qoqaz.net, which promoted violent jihad and solicited support for such groups. Azzam Publications posted articles on how to train for and support the jihad and the mujahideen, posted biographies of “martyrs,” and also produced and/or sold a number of audio and video products that were advertised on the websites, including videos containing real combat footage and biographies and images of deceased mujahideen.
While the websites were in operation, the Taliban allowed territory under its control in Afghanistan to be used as a safe haven and base of operations for Usama bin Laden and Al Qaeda, who had committed and threatened to continue to commit acts of violence against the U.S. and its nationals, including the 1998 bombings of U.S. Embassies in Africa, the October 2000 attack on the U.S.S. Cole, and the terrorist attacks of September 11, 2001. For a period of time, the Azzam websites were made possible through the unwitting services of a web-hosting company headquartered in Trumbull, Conn.
Ahmad conspired with others to provide material support for terrorism through Azzam.com by soliciting and conspiring to provide funds and military equipment, and by facilitating the travel of individuals to attend training camps in Afghanistan. Ahmad’s efforts were intended to support the Taliban regime in Afghanistan, and were done knowing that such support would be used in preparation for or in carrying out a conspiracy to commit murder, kidnaping, or maiming, and a conspiracy to kill nationals of the U.S. while such nationals were outside the U.S.
Ahmad has admitted that he operated the family of websites collectively known as Azzam Publications, and that “the purpose of Azzam Publications [was] to ‘Incite the believers’ and also secondly to raise some money for the brothers.”
In 2001, Azzam Publications also posted on its websites an article entitled “What You Can Do to Help the Taliban,” which provided detailed instructions on how to raise, transport and personally deliver amounts over US$ 20,000 in cash to the Taliban government via its consulate in Pakistan. Azzam Publications solicited personnel and physical items, including military suits and gas masks, for the Taliban. This solicitation appeared on the Azzam websites following Usama bin Laden and Al Qaeda’s having claimed responsibility for the October 2000 attack on the U.S.S. Cole, and was intended to assist the Taliban defend against a claimed forthcoming attack by the United States in retaliation for Al Qaeda’s attack on the U.S.S. Cole.
Ahmad and Azzam Publications’ support continued even after September 11, 2001, when U.S. forces were actively fighting Taliban and Al Qaeda forces in Afghanistan, and after Usama bin Laden and Al Qaeda had claimed responsibility for the September 11th attacks. For example, from at least the fall of 2001 through mid-2002, Ahmad and the Azzam sites posted an “Appeal to Pakistanis All over the World,” which, post-9/11, encouraged Pakistanis worldwide to travel to and fight against “the Crusaders” in Afghanistan, and provided detailed instructions for Pakistani nationals to obtain a Pakistani visa under false pretenses. On a linked page discussing the fighting in Afghanistan, the Azzam site also posted a bar graph comparing casualties at the World Trade Center with casualties in Afghanistan. Moreover, a search of Babar Ahmad’s computer media from his office at Imperial College in London recovered a previously deleted document from December 2001 that discussed safe routes into and out of Afghanistan, the need for fighters, the provision of funds and night vision systems, and providing detailed information on U.S. casualties for circulation on the Azzam sites.
In December 2003, a search of Ahmad’s residence in the United Kingdom revealed that Ahmad was in possession of an electronic document setting forth previously classified plans regarding the makeup, advance movements, and mission of a U.S. naval battle group as it was to travel from California to its deployment in the Middle East. The document discussed the battle group’s perceived vulnerability to terrorist attack. Forensic analysis revealed that Syed Talha Ahsan created the electronic version of the battle group document, carefully altered the metadata to hide his authorship, and then delivered the material to Ahmad.
Ahmad, 40, has been detained since his arrest by British law enforcement authorities on August 5, 2004, and he was indicted in October 2004. Ahsan, 34, was indicted in June 2006, and has been detained since his arrest by British authorities on July 19, 2006. Following lengthy extradition proceedings, Ahmad and Ahsan were extradited to Connecticut in October 2012. On December 10, 2013, each pleaded guilty to one count of conspiracy to provide material support to terrorists and one count of providing material support to terrorists.
At the time of their pleas, Ahmad and Ahsan specifically agreed, in writing, that they pleaded guilty freely and voluntarily, and without intimidation or coercion of any kind, because they are guilty of conspiring to provide and providing material support to terrorists.
This case was investigated by a Task Force in Connecticut consisting of Special Agents from Homeland Security Investigations; law enforcement agents from the Federal Bureau of Investigation’s Joint Terrorism Task Force; the Internal Revenue Service – Criminal Investigation Division, Electronic Crimes Program; the Defense Criminal Investigative Service and the Naval Criminal Investigative Service.
U.S. Attorney Daly praised the substantial efforts of law enforcement authorities from the Metropolitan Police Service’s Counter Terrorism Command and the Extradition Unit, both within New Scotland Yard, whose efforts and assistance have been essential in the investigation in this case. She also thanked HSI, the FBI, the U.S. Marshals Service, and Justice Department attachés in London for their assistance in the matter.
The case is being prosecuted by a team of federal prosecutors including Assistant U.S. Attorneys Stephen Reynolds and Ray Miller from the U.S. Attorney’s Office for the District of Connecticut, and Trial Attorney Alexis Collins from the Counterterrorism Section of the Justice Department’s National Security Division.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Baton Rouge Man Sentenced to 94 Months in Prison for Illegally Possessing Stolen Motor VehiclesRead the Press Release
SHREVEPORT, La. –A Baton Rouge man was sentenced to 94 months in prison and three years of supervised release for using multiple false identities to steal an RV, boat and sport utility vehicle, U.S. Attorney Stephanie A. Finley announced today.
Charles K. Smith, 60, of Baton Rouge, was also ordered by U.S. District Judge Elizabeth E. Foote to pay $91,208 in restitution. According to evidence presented at the guilty plea on February 3, 2014, Smith paid for a Winnebago from a Picayune, Miss., business using a fraudulent check for $189,500 under the alias Anthony J. Barnes on February 15, 2010. On May 10, 2010, Smith purchased a SeaPro boat from a Henderson, La., business using a fraudulent check for $26,975 under the alias Randal Bass. He also bought a GMC Terrain from a Bossier City business using a fraudulent check for $25,286 under the alias William Rayford Johnson on April 6, 2011.
The FBI conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Alleged Drug Trafficker Indicted in Puerto Rico Apprehended in Rhode Island by U.S. Marshal Service, R.I. State PoliceRead the Press Release
PROVIDENCE, R.I. – Carlos A. Rodriguez, a/k/a Maldi, 32, of Ponce, Puerto Rico, was ordered detained on Tuesday by U.S. District Court Magistrate Judge Lincoln D. Almond and returned to Puerto Rico, following his apprehension by the United States Marshal Service and Rhode Island State Police on an outstanding arrest warrant on drug trafficking charges from the District of Puerto Rico, announced United States Marshal Jamie A. Hainsworth, Rhode Island State Police Superintendent Colonel Steven G. O’Donnell and United States Attorney Peter F. Neronha.
Rodriguez is named in a sweeping 63-person, 11-count federal indictment returned in Puerto Rico in March 2014. The indictment, the result of an on-going 11-year investigation, alleges Rodriguez’s participation in a drug trafficking conspiracy to possess and distribute significant quantities of cocaine, crack cocaine, heroin, Oxycodone and Xanax in the La Ceiba Public Housing Project and other areas in and around Ponce, Puerto Rico. An arrest warrant for Rodriguez was signed on March 6, 2014, by a U.S. District Court Magistrate Judge in Hato Rey, Puerto Rico.
Members of the U.S. Marshal Service in Rhode Island and the Rhode Island State Police recently developed information that Rodriguez was living and working in Providence. Rodriguez was arrested on Tuesday morning without incident at his place of employment.
The Government was represented in U.S. District Court in Providence by Assistant U.S. Attorney Richard W. Rose.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Alabama Woman Convicted of Stolen Identity Refund FraudRead the Press Release
A jury found a Dothan, Alabama, woman guilty of conspiring to defraud the government through the filing of false tax returns, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today.
Nina Macena, 32, was also found guilty of three counts of wire fraud and three counts of aggravated identity theft.
According to evidence from the trial, Macena provided stolen identities to Ivory Bolen, also of Dothan, who used the identities to file false tax returns that fraudulently requested refunds from the government. Bolen would attempt to have the refunds deposited onto prepaid debit cards, which would be mailed to addresses controlled by Bolen and Macena. Macena obtained the identities from Roderick Neal, a former bail bondsman in Dothan, who had access to the personal information of individuals who had been detained at the Dothan City Jail. Both Bolen and Neal previously pleaded guilty to their involvement in the scheme.
The evidence from the trial also showed that Bolen, acting at the direction of law enforcement, made several phone calls to Macena asking her to obtain more identities. Macena agreed to do so and said she would attempt to get more identities from a “friend” at “the bonding company.” Macena also stated in the calls that she had stolen identities in a storage unit. The next day federal agents executed a search warrant at Macena’s storage unit and seizedstolen identities and prepaid debit cards in the names of victims of the scheme. Altogether, Bolen filed tax returns claiming more than $300,000 in refunds using the stolen identities provided by Macena. The Internal Revenue Service (IRS), however, successfully stopped a number of the fraudulent returns.
Macena testified in her own defense at trial and admitted that she had obtained information from Neal for Bolen, but claimed that she was unaware of the nature of the information. She also testified that she stored items for Bolen in her storage unit, but that she was unaware of what she was storing.
Macena was ultimately convicted by the jury on all counts in the indictment. At sentencing Oct. 23, she faces a statutory maximum sentence of 10 years in prison for the conspiracy count, a statutory maximum sentence of 20 years in prison for the three wire fraud convictions and a mandatory sentence of two years in prison for the aggravated identity theft convictions. Her actual sentence, however, will be decided by a federal judge after considering the federal sentencing guidelines and statutory sentencing factors.
This case was investigated by special agents of the IRS - Criminal Investigation. Trial Attorneys Jason Poole and Charles Edgar of the Tax Division prosecuted the case with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Alabama and Georgia Law Enforcement Officers Training to Deal with Domestic ExtremistsRead the Press Release
OXFORD, Ala. -- About 400 law enforcement officers from northeast Alabama and northwest Georgia will attend safety training on Thursday in Oxford to better prepare them for potential encounters with domestic extremists, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr., and Oxford Police Chief Bill Partridge.
The U.S. Attorney's Office for the Northern District of Alabama, the FBI's Joint Terrorism Task Force and the Oxford Police Department will present the training at the Oxford Performing Arts Center. The training is designed to give local, state and federal law enforcement officers and government security personnel survival skills and best practice tips in case they do encounter domestic extremists, such as members of the Sovereign Citizen Movement or militia groups. The training also will address deadly force survival and weapons of mass destruction.
"Law enforcement officers must, first, protect themselves in order to protect the communities they serve," Vance said. "The goal of this training is for each participant to gain a greater appreciation of the potential threats associated with domestic extremism and how best to protect himself or herself if ever confronted with such a situation," she said.
"As sovereign citizens’ numbers grow, so do the chances of contact with law enforcement and, thus, the risks that incidents will end in violence," Schwein said. "Law enforcement must understand the sovereign-citizen movement, be able to identify indicators, and know how to protect themselves from the group’s threatening tactics and techniques,” he said.
“Under pressure, you don’t rise to the occasion; you sink to the level of your training. You react the way you’re trained," Partridge said. "Train hard and train often, your life depends on it.”
The afternoon session of the daylong training will be a study of the Aug. 5, 2012, mass shooting at a Sikh temple in Oak Creek, Wis., in which a white supremacist shot and killed six temple worshippers. The gunman, a U.S. Army veteran, also wounded three other worshippers and the first officer on the scene, who was struck with 12 bullets. The shooter killed himself with a shot to the head after another police officer shot him in the stomach.
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Tuesday 15 July 2014
Utah Man Sentenced to 60 Months for Religiously-Motivated Attack on Synagogue and Gun ChargesRead the Press Release
Macon Openshaw, 22, was sentenced today by U.S. District Court Judge Tena Campbell for the District of Utah to serve 60 months in prison for a bias-motivated attack at a local synagogue and for two unlawful gun possession charges. Openshaw was further ordered to pay $1,969 in restitution to the synagogue to repair the damage caused by his actions and was ordered to serve three years of supervised release following completion of his prison term.
On April 16, 2014, Openshaw pleaded guilty to the civil rights violation of damaging the synagogue and to the gun charges. As part of his plea, Openshaw admitted to firing three rounds from a Walther .22 caliber handgun at the Congregation Kol Ami synagogue in Salt Lake City in 2012. At the time of the attack, there were no congregants inside of the synagogue. Openshaw said he shot the synagogue because of its religious character. Openshaw also admitted to possessing a handgun with a destroyed serial number, which was the same handgun he used to shoot the synagogue. He also admitted to possessing several firearms and ammunition while he was subject to a protective order.
“Religiously-motivated violence cannot be tolerated by civil society,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department stands ready to combat violence based on a person’s religion, and will continue to prosecute these hate crimes vigorously.”
“Every person living in Utah has the right to be free from intimidating and threatening conduct,” said Acting U.S. Attorney Carlie Christensen for the District of Utah. “The U.S. Attorney’s Office in Utah has a strong history of prosecuting those who violate the civil rights of others in our communities.”
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Carlos Esqueda of the U.S. Attorney’s Office for the District of Utah and Trial Attorney Nicholas Durham of the Civil Rights Division’s Criminal Section.
USP-Canaan Inmate Sentenced to 15years’imprisonment for Attempted MurderRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge James M. Munley sentenced an inmate at the United States Penitentiary at Canaan, Pennsylvania, to 15 years’ imprisonment for stabbing another inmate multiple times with a sharpened weapon and with the intent to commit murder. Eddie Joe Sutton, age 60, formerly of Texas, was charged with the offense and pleaded guilty on April 15, 2014.
According to United States Attorney Peter Smith the attack on the victim inmate occurred on November 7, 2013; the victim inmate survived the attack but suffered numerous stab wounds which required treatment at a local hospital. At the time of the attack, Eddie Joe Sutton was serving a 20-year sentence for bank robbery. Judge Munley ordered the 15-year imprisonment term to be served after completion of his bank robbery sentence.
The case was investigated by the FBI and the Special Investigation Section at USP-Canaan.
Assistant United States Attorney John Gurganus prosecuted the case.
U. S. Attorney Announces Sentence of Crawfordsville Man for Fraudulent Tax ReturnsRead the Press Release
Restaurant owner stole unemployment insurance benefits and tax refunds
INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today that Pedro Sanchez, 34, Crawfordsville, was sentenced with theft of government funds related to fraudulent receipt of unemployment benefits and the filing of fraudulent tax returns. Sanchez was sentenced to 26 months with a fine of $773,000 to the Internal Revenue Service (IRS) and $29,000 to the Indiana Department of Workforce Development (IDWD) for restitution. Sanchez was sentenced by District Court Judge Tanya Walton Pratt.
“Theft is always wrong, but theft of unemployment benefits takes money from some of the neediest Hoosier families. It affects all taxpayers and makes the cost of helping those in need higher than necessary,” said Hogsett.
The investigation revealed that Sanchez’s scheme was uncovered by a third party trying to apply for public aid. In May of 2010, an individual went to the Lafayette Indiana Department of Workforce Development office (“IDWD”) to obtain a printout of her past wages to assist in an application for public aid. While assisting her, IDWD determined that she was already receiving unemployment benefit, however, they were not being sent to her address. Instead, a benefits debit card was being sent to an address in Crawfordsville. While looking further into this matter, IDWD determined that multiple debit cards were being sent to the same address, which led investigators to Sanchez.
Further investigation found that Sanchez was defrauding multiple people of their unemployment benefits. Sanchez, through his Mexican grocery store, Video Y Discoteca El Charron (“El Charro”), which contained a money service, cashed numerous IRS refund checks that were issued based on fraudulent tax returns. On some occasions, Sanchez cashed the refund check himself. On other occasions, the tax refund checks were cashed by other people but went through the Mexican grocery store business account of Sanchez. Approximately $1,472,673 was received by Sanchez in fraudulent tax returns between January 2009 and February 2011.
“That someone would use a legitimate business as a cover for stealing funds from unassuming individuals as well as the general public is deplorable,” said Hogsett.
The tax refund scheme included obtaining refunds for individuals using tax identification numbers listing wages that could not be verified by employers. This was done by listing identical employers, similar and identical taxpayer home addresses, similar and identical wage while withholding information and claiming dependents which resulted in additional child tax credit.
This investigation was a collaborative effort between the United States Department of Labor- Office of the Inspector General, Internal Revenue Service and Indiana Department of Workforce Development.
“Combating unemployment insurance fraud remains a high priority for the Office of Inspector General and we will continue to work with our law enforcement partners and colleagues to address it. We would like to thank the Indiana Department of Workforce Development for their support in identifying the extent of the unemployment insurance fraud committed by the defendant,” said James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigation.
James C. Lee, IRS Criminal Investigation Special Agent in Charge stated, “At the IRS, protecting taxpayer money is our top priority. There are numerous victims when it comes to refund crimes; in addition to the government, the taxpaying public also pays the price. IRS Criminal Investigation is determined to stop these false tax refund schemes and warns that participation in refund fraud schemes does not pay and those who participate will be investigated and prosecuted for their involvement.”
According to Assistant United States Attorney Gayle Helart, who prosecuted this case on behalf of the government, Sanchez faces three years of supervised release after serving his sentence.
Three Members of the "Indigenous American Nationals" Sentenced to Ten Years in PrisonRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that Jerry Elmo Hartsoe, age 57, of West Columbia, James Chappel Dew, age 59 of North Myrtle Beach, and Mark Shannon Manuel, age 49 of Franklin, Tennessee, were sentenced to 10 years incarceration by United States District Judge Cameron McGowan Currie of Columbia for their convictions on eight counts of mail fraud. Facts presented at trial proved that the three men defrauded victims through their West Columbia business, Eden Gifted Properties. The men claimed to be able to eliminate their customers’ debt using a series of secret government accounts.
According to the testimony presented in the case, Hartsoe, Manuel and Dew claimed to have access to a secret government account worth approximately $100 billion. For a fee or “donation” of 10% of the value of the debt, the men claimed to be able to satisfy and pay off mortgages, credit cards and any other types of debt. Using connections within various religious and political groups, the defendants traveled across the United States to host seminars and presentations. After identifying potential victims at these seminars and presentations, the defendants would solicit several thousand dollars from each victim and begin mailing a series of bogus documents to banks and other lenders. Witnesses testified that the men encouraged customers to seek cash advances from credit cards and to raid retirement accounts in order to pay Eden Gifted Properties’ fees. The court found that the men took over $675,000.00 from their victims and intended to cause over $83,000,000.00 in losses to banks and other financial institutions.
Claims made by the men during the trial and during sentencing are similar to arguments presented by so-called “sovereign citizens.” Sovereign citizens” are U.S. citizens who reject their citizenship status and claim that the government is operating outside of its jurisdiction. They generally do not recognize the authority of federal, state or local governments and renounce their obligation to adhere to the laws, policies or regulations created by those governments
The investigation and convictions were pursued in furtherance of the FBI’s national strategy aimed at disrupting the criminal activity of individuals claiming to be sovereign citizensand prosecuted by Assistant United States Attorneys T. DeWayne Pearson and John Potterfield of the Columbia office.Strip Liquor Store Owner Pleads Guilty to Conspiracy to Defraud the IRSRead the Press Release
LAS VEGAS, Nev. – The owner of several liquor stores on the Las Vegas Strip has pleaded guilty to conspiring to defraud the IRS for failing to report income that was skimmed from the businesses, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Ramzi Suliman pleaded guilty on July 14, 2014, to one count of conspiracy to defraud the United States. Suliman faces up to five years in prison and up to a $250,000 fine, and is scheduled to be sentenced by U.S. District Judge Lloyd D. George on Jan. 12, 2015.
Suliman and co-defendant Jeffrey Nowak were originally charged in a criminal indictment dated April 10, 2013, with one count of conspiracy to defraud the United States, three counts of assisting in filing false corporate tax returns, and four counts of attempting to evade and defeat tax. Nowak’s case is pending, and he is currently scheduled for trial beginning Dec. 3, 2014.
According to Suliman’s guilty plea memorandum, from about 2006 to present, Suliman and Nowak owned and operated three liquor stores in Las Vegas, Super Liquor South Strip at 3999 S. Las Vegas Boulevard, Super Liquor Mid Strip at 2301 S. Las Vegas Boulevard, and Super Liquor McCarran Village at 384 E. Tropicana Avenue. Suliman stated in his plea agreement that he and Nowak diverted cash receipts from the stores to their own use by presenting false books and records to the corporate accountant for use in preparing corporate and individual tax returns for the businesses and the defendants.
From about 2006 to 2009, Suliman admitted that he and Nowak maintained multiple sets of accounting records for their liquor stores, and that they skimmed some of the cash received from one of the stores and agreed not to report it the IRS. Suliman reported that they omitted the skimmed cash from the accounting records that were provided to the accountant for the preparation of their tax returns. Suliman admitted that he was aware of and consented to the skim and occasionally made entries in the records. Suliman admitted that his participation in the conspiracy to defraud the IRS resulted in a tax loss to the government of $200,000 to $400,000 for the years 2006 to 2009.
The case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Kathryn C. Newman.Skokie Couple Arrested for Allegedly Bilking Medicare and Paying Kickbacks for Patients in $800,000 Health Care Fraud SchemeRead the Press Release
CHICAGO — A Skokie couple was arrested today after they and their home health care company were indicted on federal health care fraud charges for allegedly bilking Medicare of more than $800,000 for physician services that were never provided to patients. The couple and their company were also charged with conspiring to pay another defendant $11,000 in illegal kickbacks for patient referrals.
The couple, JOHN YOUSEFZAI, and his wife, ARMANOUHI ARZOMANIAN, owned and operated MEDICOSE HOME HEALTH CARE SERVICE, Inc., which employed physicians and provided in-home medical services to patients. The couple operated Medicose from their home in Skokie, where federal agents executed a search warrant today.
Yousefzai, 66, and Arzomanian, 56, neither of whom is a licensed medical professional, were each charged with five counts of health care fraud, one count of conspiracy, and two counts of paying kickbacks for referrals of Medicare patients to Medicose, which was charged with five counts of health care fraud.
Also arrested today was WILSON NARSA, 52, of Chicago, who worked for a non-profit organization that provided services to the elderly and disabled. He was charged with conspiracy and two counts of receiving kickbacks for referring Medicare patients to Medicose.
The three individual defendants and Medicose pleaded not guilty at their arraignment this afternoon in U.S. District Court. Yousefzai and Arzomanian were each released on a $50,000 secured bond, and Narsa was released on his own recognizance. A status hearing was scheduled for Aug. 12 before U.S. District Judge Harry Leinenweber.
The defendants were charged in a 10-count indictment that was returned by a federal grand jury on July 1 and unsealed today following the arrests. The indictment also seeks forfeiture from the couple of at least $800,000 and a residence they own in Wilmette, as well as at least $11,000 from Narsa.
According to the indictment, Medicose employed four physicians licensed in Illinois. Between May 2008 and January 2014, Medicose sought more than $2.1 million in reimbursement from Medicare for physician home visits, and Medicare paid Medicose more than $1.4 million. Of that amount, Medicose, Yousefzai, and Arzomanian allegedly submitted more than $1.3 million in fraudulent claims to Medicare for physician services that were not actually provided. As a result, the couple and Medicose caused Medicare to lose more than $800,000. Those three defendants caused the fraud proceeds to be disbursed from Medicose’s corporate bank accounts for the couple’s personal benefit, the indictment alleges.
Between December 2010 and August 2013, all four defendants allegedly conspired to have Medicose pay kickbacks to Narsa and others, including at least $11,000 to Narsa, to induce Medicare patient referrals and increase the patient census at Medicose, which, in turn, enriched Medicose and its owners.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney William Ridgway.
Each count of health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine or a fine totaling twice the gain or loss, whichever is greater, while conspiracy and each count of violating the anti-kickback statute carry a maximum sentence of five years in prison and a $250,000 fine, and restitution is mandatory. Medicose faces a maximum corporate penalty of each count of five years’ probation and a $500,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Sherman Man Pleads Guilty to Illegally Selling LivestockRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Timothy Deland, 28, of Sherman, N.Y., pleaded guilty before Chief U.S. District Judge William M. Skretny, to theft of property mortgaged or pledged to the Farm Services Agency. The charge carries a maximum sentence of five years in prison, a $250,000 fine or both.
Assistant U.S. Kathleen A. Lynch, who is handling the case, stated that in October 2008, the defendant worked as a farmhand in Sherman and negotiated a deal to purchase cows from the farm where he worked. On October 29, 2008, Deland obtained a loan for $212,775 from the Farm Services Agency (FSA) to purchase the cows and some machinery, using the cows and machinery as collateral.
In early 2011, the defendant left the farm where he was working for financial reasons and moved to another farm, located near Sherman. In March 2011, Deland petitioned the FSA to relocate the cows to a farm in Tennessee but his petition was denied. The defendant appealed the denial. The FSA did not approve the move and accelerated Deland’s loan payments. From March 2011 through January 20, 2012, after being denied by the FSA, Deland sold approximately 90 cows to livestock companies and individuals.
The defendant received multiple contacts from FSA which informed him that equipment and livestock were unaccounted for and instructed Deland to account for and report the loan securities. On August 1, 2012, the defendant was interviewed by the United States Department of Agriculture. During the interview, Deland signed a sworn statement acknowledging selling the cows valued at $110,125.
The plea is the culmination of an investigation by Special Agents of the United States Department of Agriculture, Office of Inspector General, under the direction of William G. Squires Jr., Special Agent in Charge, Northeast Region.
Sentencing is scheduled for November 3, 2014 at 9:00 a.m. before Judge Skretny.Second Local 17 Member Sentenced for ExtortionRead the Press Release
BUFFALO, N.Y. -- The United States Attorney’s Office announced today Michael J. Eddy, 45, of Gowanda, N.Y., who was convicted of extortion, was sentenced to eight months in prison, four months home confinement, and two years of supervised release by Chief U.S. District Judge William M. Skretny. The defendant was also ordered to pay $2,000 in restitution to victims.
According to Assistant U.S. Attorney Anthony M. Bruce, who handled the case, Eddy was a member of Local 17 of the International Union of Operating Engineers. The defendant was part of campaign designed to force Earth Tech, of Latham, N.Y., the low bidder on the 2005 project to remove contaminated soil on which the Buffalo Waterfront School was built, to sign a collective bargaining agreement with Local 17.
In the summer of 2005, Eddy, Local 17 President and Business Manager Mark Kirsch, Organizer James Minter, and other Local 17 members, carried out a campaign of violence and intimidation against Earth Tech in an effort to force the company to sign a collective bargaining agreement. This campaign caused Earth Tech to incur about $200,000 in additional expenses to secure the site from acts of sabotage.
Eddy was one of 12 officers and members of Local 17 arrested and charged in this case. Six defendants pleaded guilty, President Mark Kirsch was convicted at trial, four were acquitted at trial, and charges are pending against the twelfth defendant.
The investigation of this case was handled by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Cheryl Garcia, Special Agent-in-Charge of the New York Regional Office, the Federal Bureau of Investigation, and the New York State Police, under the direction of Major Michael Cerretto.Savannah Resident Indicted for Illegally Exporting Firearms Parts to RussiaRead the Press Release
SAVANNAH, GA – Viacheslav Zhukov, 33, was indicted last week by a federal grand jury sitting in Savannah for his role in illegally exporting firearm parts from Savannah, Georgia to others in Russia. The indictment alleges that Zhukov, a Russian citizen and lawful permanent resident of the United States living in Savannah, mailed multiple packages containing firearm magnifier scopes to Russia without obtaining an export license from the United States Department of Commerce. Various firearm magnifier scopes are controlled under the Export Administration Regulations for crime control purposes and require a license from the United States Department of Commerce to export to Russia. The indictment further alleges that Zhukov misrepresented the contents of packages he mailed to Russia on the customs declarations forms presented to the United States Postal Service.
Zhukov’s arraignment was held yesterday in Savannah before U. S. Magistrate Judge G.R. Smith. Zhukov was ordered detained pending trial. If convicted on all counts, Zhukov faces a 25 year maximum prison sentence. U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The investigation of this case was led by HSI, with assistance from the U. S. Customs & Border Protection, the U. S. Postal Inspection Service, and the Savannah-Chatham Metropolitan Police Department. Assistant United States Attorneys Tania Groover and Charlie Bourne are prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
San Diego Criminal Defense Attorney Pleads Guilty to Laundering Drug Proceeds and Tampering with WitnessRead the Press Release
SAN DIEGO – San Diego criminal defense attorney James Warner pleaded guilty today to two federal felony offenses, admitting that he laundered $100,000 of a client’s drug trafficking proceeds and then tampered with a potential witness in the case.
Warner, 65, a San Diego resident who has been a member of the California bar since December of 1974, pleaded guilty before United States District Judge Jeffrey T. Miller to conspiracy to launder drug proceeds and attempted harassment of a witness.
At today’s hearing in United States District Court in San Diego, which was Warner’s first court appearance in this case, bond was set at $5,000. Judge Miller also scheduled a sentencing hearing for October 16, at which time Warner will face a statutory maximum sentence of 23 years in federal prison.
According to the plea agreement filed today, federal drug agents searched the home and business of one of Warner’s clients in May of 2012. The drug trafficker told Warner that agents had overlooked $100,000 in cash during their search, and Warner agreed to conceal the money.
As part of the money laundering scheme, Warner took the $100,000 – which he knew to be drug proceeds – and invested it in an off-shore business. According to his plea agreement, Warner used his own funds from his U.S. bank accounts and wired approximately $99,965 to an off-shore bank account in the British Virgin Islands. Warner then structured the $100,000 he received from the drug trafficker into his personal and business bank accounts to further conceal and disguise the nature of the drug proceeds. Structuring is the breaking up of cash deposits under $10,000 to avoid bank reporting requirements.
According to the plea agreement, Warner created a fictitious corporation named Grenadine Development Inc., and opened a bank account in the name of Grenadine Development Inc., to issue checks to the drug trafficker.
To further conceal his criminal activity, Warner admitted that he failed to file an IRS Form 8300 “Report of Cash Payments Over $10,000 received in a trade or business” which was required to be filed by defendant Warner when he received currency greater than $10,000 in his business as an attorney.
According to his plea agreement, Warner also admitted that he tampered with a witness when he told his client, a drug trafficker identified as “T.K.,” that he should pay legal fees of another drug trafficker to Warner, to prevent him from cooperating against T.K. Warner further told T.K. that if a court-appointed taxpayer-funded lawyer would “squeeze” the other trafficker to cooperate against T.K.
Federal search warrants were executed at Warner’s law office and his residence on September 11, 2013, following an investigation by IRS - Criminal Investigation and the Drug Enforcement Administration/Narcotics Task Force.
As part of his guilty plea, Warner agreed to a criminal forfeiture in the amount of $100,000 – the sum that was laundered. Warner also agreed to administratively forfeit approximately $200,080 in cash which was seized from his law office during the execution of a federal search warrant, along with $34,527.60 seized from Warner’s personal and business accounts.
Erick Martinez, Special Agent in Charge for IRS - Criminal Investigation, commented that James Warner is a well-known criminal defense attorney in San Diego, who devised a complex scheme to launder drug money. “Mr. Warner’s efforts were matched by the financial skill set and determination of our special agents. Today’s admission of guilt by Mr. Warner is another example of IRS Criminal Investigation’s continued commitment to protect the integrity of the nation’s financial system from illicit activity.”
DEA San Diego Special Agent in Charge William R. Sherman, stated: “Individuals who assist drug traffickers in their endeavors will be held just as accountable as the person who is actually selling the drugs. Regardless of your profession, if you assist drug dealers with their criminal activities, you will be punished. The fines assessed show the seriousness of getting involved in this kind of illegal activity.”
The case is being prosecuted by San Diego-based Assistant United States Attorney Sherri Walker Hobson. The United States Attorney’s Office in San Diego was recused from the matter, and the prosecution was supervised by the United States Attorney’s Office in Los Angeles.
Release No. 14-087
Removed Alien Charged with Illegally Re-Entering United StatesRead the Press Release
PITTSBURGH - An alien found in Pittsburgh has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named German Cardenas-Leon, 42, of Mexico, as the sole defendant.
According to the indictment presented to the court, German Cardenas-Leon, a/k/a Eduardo Hurieta, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on July 1, 2013. German Cardenas-Leon was found by ICE agents to be illegally present in Pittsburgh on June 26, 2014.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the U.S. Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Reidsville Man Indicted as Felon in Possession of FirearmsRead the Press Release
STATESBORO, GA -- Robert Beecher,60, from Reidsville, Georgia, was indicted in June by a federal grand jury sitting in Savannah for possessing several firearms as a convicted felon. Beecher faces a minimum penalty of 15 years in prison if it is determined that he has three qualifying felony convictions and is classified as an Armed Career Criminal under federal law.
Evidence presented during an earlier detention hearing held at the federal courthouse in Statesboro, Georgia established that Beecher had multiple felony convictions dating back to the 1970s, including convictions for arson, burglary, and aggravated assault. Testimony during the hearing also revealed that Beecher was in possession of multiple firearms at his residence in Reidsville on May 7, 2014, the day of his arrest. Based on the evidence presented during Beecher’s detention hearing, U. S. Magistrate Judge G.R. Smith ordered Beecher detained pending trial.
U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by the FBI and the ATF. Assistant United States Attorney Carlton R. Bourne, Jr. is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Punta Gorda Man Pleads Guilty to Investor FraudRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that Anthony Michael Defeo (49, Punta Gorda) today pleaded guilty to wire fraud before United States District Judge John E. Steele. Defeo faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
Defeo was indicted on May 1, 2013.
According to court documents, Defeo solicited victim investors who thought they were investing in an opportunity involving a gravel pit and fill dirt to be used by road construction companies for improvements on Interstate 75 on the west coast of Florida. Defeo controlled companies and used these companies as vehicles to obtain victims’ money. He misrepresented to victim investors that he had lucrative contracts and purchase orders with a legitimate corporation engaged in asphalt paving, grading, and related services for roadway, and civil construction projects. Instead of using the money as represented, Defeo fraudulently diverted and converted approximately $6,280,580.00 in monies from investors for his own purposes. He failed to repay the investors.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
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Omaha Woman Sentenced for Possessing AmmunitionRead the Press Release
United States Attorney Deborah R. Gilg announced that Lori Jenkins, age 47 of Omaha, was sentenced to 120 months imprisonment for two counts of being a felon in possession of ammunition. The sentences are to run concurrent. Ms. Jenkins was placed on three years of supervised release following her release from incarceration. She was also ordered to pay a $100 special assessment on each count. The Honorable Laurie Smith Camp, Chief Judge of the United States District Court, presided.
Ms. Jenkins was previously found guilty by a jury on April 3, 2014, for purchasing ammunition on August 2, 2013 from Canfield’s and August 20, 2013, from Sol’s.
This case was investigated by the Omaha Police Department and the Douglas County Sheriff’s Office.
New York Man Sentenced to 7 Years in Prison for Trafficking HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CARLOS PADILLA, 29, a citizen of the Dominican Republic last residing in the Bronx, N.Y., was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 84 months of imprisonment for trafficking heroin.
According to court documents and statements made in court, on February 11, 2012, the Drug Enforcement Administration and Connecticut State Police stopped a vehicle PADILLA was driving on I-95 North in East Haven. After PADILLA gave his consent, law enforcement officers searched the car and found approximately 1.1 kilograms of heroin secreted inside a “trap” that had been installed in the car. PADILLA and a passenger, Francisco Torres, were arrested at that time. The investigation revealed that PADILLA and Torres were transporting the heroin from New York to Rhode Island.
On February 26, 2014, PADILLA pleaded guilty to one count of possession with intent to distribute heroin.
Torres, also a citizen of the Dominican Republic, previously pleaded guilty to one count possession with intent to distribute one kilogram or more of heroin, and one count of unlawful reentry of a removed alien. On April 15, 2014, he was sentenced to 130 months of imprisonment.
Torres’ criminal history includes a 2004 murder conviction in Rhode Island state court. In July 2010, he was deported to the Dominican Republic. He subsequently illegally reentered the United States.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
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[email protected]New York Man Sentenced to 120 Months for Wire FraudRead the Press Release
FRANKFORT, KY - A Scarsdale, New York man, who was convicted of wire fraud relating to a Ponzi scheme, was sentenced to 120 months in prison yesterday. U.S. District Court Judge Gregory F. VanTatenhove sentenced Eilat Lev, 65, on his conviction.
Lev previously admitted that he defrauded investors, of approximately $33,000,000, during a scheme he executed from 2005 through 2008. According to the plea agreement, Lev admitted that he owned a business called International Tractor Company, Inc. (ITC), located in Ardsley, New York. He was in the business of buying and selling heavy construction equipment, domestically and internationally. Lev relied, in part, on other individuals to finance the purchase of the equipment, with the agreement that he would arrange for the sale of the equipment and would return the amount invested, pay interest on the amount invested, and share the profit made on any sale with the individuals who provided the financing.
In 2002, an investor accepted an ongoing business proposition from Lev, where the investor would finance the purchase of specific items of equipment on the global market. Lev had identified the equipment for sale and had typically secured a willing buyer. For each transaction, the investor would receive paper work from Lev identifying the equipment, the amount required to purchase it, and confirmation of the sale price, which had been negotiated and agreed upon by the ultimate purchaser. Upon receiving this documentation, the investor would arrange for the transfer of money from his bank account to an account utilized by ITC, in New York. Under the terms of the agreement, Lev would complete the transaction and would return the investment, the agreed interest and, the share of the profit to the investor, within an agreed upon time frame.
In 2005, the investor opened a line of credit with First Southern National Bank located in Pulaski County, Kentucky. He used this line of credit to continue to finance transactions with Lev and his company. In order to draw from the line of credit, Lev was required to submit the same itemized documentation to the bank, which would then transfer funds, by wire, from the investor’s line of credit to Lev’s account at Gotham Bank of New York.
Lev admitted that he perpetrated a scheme to defraud this investor, and others, by soliciting millions of dollars under false pretenses, failing to invest the investors’ funds as promised, and misappropriating investors’ funds without the knowledge or authorization of the investors. In furtherance of the scheme, rather than purchasing and selling specific items of equipment and returning the investment, interest, and profit to them, Lev ran a scheme by which he falsified purchase and sales documents and diverted new investor funds to pay prior investors their principal, interest and/or profits on prior transactions, thereby creating the impression among investors that the business was successful, which enticed them to invest more money. By the end of 2008, Lev was without funds to pay his investors their principal, interest, and/or profit, causing these individuals to lose approximately $33,700,000.
Lev plead guilty in October of 2013.
Under federal law, Eilat Lev must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Howard S. Marshall, Special Agent in Charge, Louisville Field Office of the Federal Bureau of Investigation jointly announced the sentence.
The investigation was conducted by the Federal Bureau of Investigation. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Laura K. Voorhees.
New York Doctor Admits Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
Twenty-ninth Defendant to Plead Guilty in Connection with Scheme
NEWARK, N.J. – A doctor with a New York practice admitted today to accepting more than $100,000 in exchange for test referrals as part of a massive bribery scheme operated by Biodiagnostic Laboratory Services LLC (BLS) of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Peter Deplas, 47, of Glen Head, New York, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
According to documents filed in this and other cases and statements made in court:Deplas admitted he accepted bribes through a sham lease agreement of $5,000 per month, as well as additional monthly cash payments of as much as $7,000. Over the course of 17 months, Deplas accepted approximately $120,500 in bribes in return for referring patient blood specimens to BLS, for which BLS received more than $900,000. Deplas admitted he even ordered unnecessary test for his patients in order to justify BLS bribe payments.
BLS salesman Cliff Antell negotiated the bribe arrangement with Deplas and paid him the cash, while BLS salesman Craig Nordman wrote the bribe checks pursuant to the sham lease agreement. Antell and Nordman pleaded guilty to their involvement in the scheme on June 10, 2013.
The bribery count to which Deplas pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 29, 2014. As part of his guilty plea, Deplas agreed to forfeit $120,500, representing the bribes he received from BLS.
Including Deplas, 29 people – including 18 physicians – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has recovered more than $7 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS– Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-249Defense counsel: Joseph Tacopina Esq. and Chad Seigel Esq., New York
Deplas, Peter Information
New Jersey Man Charged with Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH - A New Jersey man has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to distribute heroin, felon in possession of a firearm, and possession with the intent to distribute heroin, United States Attorney David J. Hickton announced today.
The three-count superseding indictment named Peter Woodley, 34, formerly of Plainfield, New Jersey.
According to the superseding indictment, Woodley conspired with others to distribute one kilogram or more of heroin between December 2011 and August 2012. The Superseding Indictment also alleges that Woodley possessed a firearm on Sept. 17, 2012, after having been convicted of seven different felony crimes. In addition, in the early morning hours of March 20, 2013, he was arrested by the Drug Enforcement Administration and the Pennsylvania State Police at the Greyhound bus station in downtown Pittsburgh after transporting heroin from New Jersey.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $11 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Missouri Man Sentenced to 14 Years in Federal Prison on Sex Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – Stephen Ardrey, 30, of Springfield, Mo., was sentenced in U.S. District Court in Providence today to 14 years in federal prison for transporting a 17-year old female from the Boston area into Rhode Island with the intent to engage in criminal sexual activity, announced United States Attorney Peter F. Neronha; Bart J. Cahill, Acting Special Agent in Charge of Homeland Security Investigations for New England; West Greenwich, R.I., Police Chief Richard N. Ramsay; Coventry, R.I., Police Chief Bryan J. Volpe; Warwick, R.I., Police Chief Colonel Stephen M. McCartney; and Medfield, Mass., Police Chief Robert E. Meaney, Jr.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered that Ardrey serve a term of 10 years supervised release upon completion of his incarceration and that he register as a sex offender. Ardrey pleaded guilty on February 26, 2014, to one count each of trafficking a person under the age of 18 and transportation of a minor with intent to engage in illicit sexual conduct.
Ardrey was arrested on September 12, 2013, while walking with the victim along a Coventry, R.I., highway three days after the victim was reported missing from her Medfield, Mass., home.
United States Attorney Peter F. Neronha commented, “The message from today’s sentencing is simple: if you engage in human trafficking, if you engage in sex trafficking in this state, we are going to get our victim to a safe place and then we are going to come after you with all of our resources. Whether in federal court or state court, we will seek to lock you up for a long period of time.”
“The defendant sexually exploited a vulnerable minor for profit and for his own gratification,” said Acting Special Agent in Charge Bart J. Cahill of HSI Boston. “The reprehensible and degrading nature of these crimes should leave no doubt that he has earned every minute in prison he has received. This sentence should also send a message to those who traffic in human beings – that ICE and its federal and local law enforcement partners are committed to protecting those who cannot protect themselves”
At the time of his guilty plea, Ardrey admitted to the court that he met the victim in an online chat room in December 2012. Over time, communications with the victim online, via email and through an online service called “TextNow” intensified in frequency and became sexually explicit. As the communications continued, Ardrey discussed selling the victim in order to make money so they could “go away” together.
According to information presented to the court, on September 9, 2013, during a pre-arranged meeting, Ardrey met the victim at a public library in Medfield, Mass. Ardrey and the victim traveled by train from Boston to Providence and then by taxi to a West Greenwich, R.I., motel. The next day Ardrey posted an advertisement on backpage.com and other websites that displayed provocative photographs of the victim under a banner that read “Sweet girl next door -19.”
At the time of his guilty plea, Ardrey admitted to having had sexual contact with the victim at the motel in West Greenwich. Ardrey also admitted that he negotiated a price of $40 and two packages of cigarettes for an hour with the victim with an individual who responded to the Internet ad. That person visited with the victim on two occasions. During the second encounter, Ardrey admitted to remaining outside the door until the individual left, at which time he collected the payment from the victim.
On September 13, 2013, at about 6:30 a.m., the Coventry Police Department received a call from a local resident who observed a male and a female walking along Rte.3 in Coventry and the female fit the description of the reported missing girl from Medfield, Mass. A responding officer recognized the young woman as being the missing person from Medfield, Mass. According to information presented to the court, Ardrey provided the officer a Missouri identification card. The victim, who was not carrying any identification, initially identified herself as “Rose,” the same name used in the backpage.com advertisement. Ardrey admitted to the officer that the victim was the same girl whose picture had been shown on television and who had been reported missing.
Coventry Police Chief Bryan J. Volpe commented, “This case clearly indicates that this type of crime can affect any community at any time. If not for the quick thinking and response of one of our residents, the victim’s situation could have been much worse. The Coventry Police applaud the cooperative effort by all law enforcement agencies in this case and we are pleased with the sentence.”
West Greenwich Police Chief Richard Ramsay added, “The West Greenwich Police Department is very proud to have worked so well within this multi-agency investigation that helped to reunite a 17-year-old female with her family and to put a predator like Steven Ardrey behind bars in federal prison, where he belongs.”
Warwick Police Chief Colonel Stephen M. McCartney said, “The Warwick Police have always strongly supported multi-agency investigations. This is doubly so in such egregious cases as human trafficking of any sort. We are proud that our member of the task force was able to assist in bringing this predator to justice, as demonstrated in the sentence issued in this case. We will continue to support all efforts to protect the public from those who prey on the young or helpless."
The case was prosecuted by Assistant U.S. Attorney Adi Goldstein.
The matter was investigated by Homeland Security Investigations; West Greenwich, Coventry and Warwick, R.I., Police Departments; and the Medfield, Mass., Police Department, with the assistance of the Massachusetts State Police and the Boston Police Department.
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[email protected]Louisville Man Pleads Guilty to Producing Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Louisville man pled guilty to violating federal child exploitation laws today, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Craig Ian Elliott, age 47, pled guilty to a single charge of producing child pornography. Senior United States District Court Judge Charles R. Simpson, III, accepted the guilty plea.
According to the written Plea Agreement filed in open court, on April 2, 2010, the defendant was living at a residence on Algonquin Parkway in Jefferson County, Kentucky, with his girlfriend. On that date, his girlfriend was at work, but her 17-year-old daughter was at home with Elliott after she finished school for the day. Elliott used his girlfriend’s cell phone - a Boostmobile Sanyo Mirro Model SCP 3810 - to take sexually explicit photos of the girl. The cell phone was manufactured outside the Commonwealth of Kentucky. The metadata from the images showed that the pictures were taken at approximately 4:08 P.M.
After Elliott took the photos of the girl, he used the cell phone to transmit the images, via the Internet, to his Yahoo! account. There is no evidence that he distributed the images to anyone else. Elliott faces a statutory mandatory minimum term of imprisonment of 15 years and a maximum sentence of 30 years. He faces at least five years of Supervised Release and could be placed on Supervised Release for the remainder of his life. Judge Simpson scheduled a sentencing hearing for October 21, 2014, at 2:30 p.m.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department Crimes Against Children Unit conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices, 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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab.
Leader of Check Kiting Scheme Sentenced to More Than Five YearsRead the Press Release
Tampa, FL – U.S. District Judge Charlene Edwards Honeywell today sentenced Johnathan Bergren (41, Tampa) to five years and three months in federal prison for conspiracy to commit bank fraud. As part of his sentence, the Court also entered a money judgment in the amount of $309,581.75, which constitutes the proceeds of the offense.
Bergren pleaded guilty on March 27, 2014.
According to court documents, between September 2012 and December 2013, Bergren and others engaged in a conspiracy to defraud banks, primarily Bank of America and SunTrust. Bergren established shell companies and then opened or had others open more than 20 business checking accounts in those companies’ names. Bergren and others working with him deposited checks drawn on various accounts into other newly established accounts at other financial institutions. Bergren then withdrew funds prior to the checks clearing the banks. Each of the deposited checks was ultimately returned for insufficient funds. Despite this, Bergren had already transferred or withdrawn the funds immediately made available to the accounts under his control.
In August 2013, after being arrested and released on bond for his participation in this conspiracy, Bergren continued to commit this same check kiting scheme with other individuals he recruited. The scheme caused an additional $30,000 in losses to Bank of America.
Bergren, and co-conspirators acting at his direction, deposited approximately $577,155.16 in fraudulent checks, which were drawn on unfunded business accounts that he established. As a result, they were able to fraudulently obtain over $300,000 from at least three different federally insured financial institutions.
This case was investigated by the Tampa Police Department, Pinellas County Sheriff’s Office, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
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Las Vegas, Nev. Attorney Sentenced to Prison for Laundering Client Fraud MoniesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas attorney was sentenced to 366 days in prison today for assisting a client launder approximately $2.25 million that had been obtained fraudulently in an online investment scheme, announced the United States Attorney’s Office for the District of Nevada.
R. Christopher Reade, 43, of North Las Vegas, was sentenced by U.S. District Judge Kent J. Dawson, who allowed Reade to self-report to federal prison by Oct. 17, 2014. Reade pleaded guilty in January to one count of accessory after the fact to laundering of monetary instruments.
“Reade’s conduct was not a “one-off” act spawned by the unfortunate coupling of naïveté and necessity,” said First Assistant U.S. Attorney Steven W. Myhre. “It was a knowing, calculated, and sophisticated course and pattern of conduct motivated by greed and engaged in over time. Reade knew that his conduct was wrong and that it ran contrary to his professional obligations as an attorney and would hurt others.”Reade was a licensed attorney in Las Vegas and practiced business law. His client, Rick Young, owned and operated a Nevada corporation known as Global One Group, LLC, a web-based company which purported to train others how to trade in the foreign currency exchange market, or FOREX. Young advertised that he was an experienced and highly successful trader in the FOREX market, who for a fee would teach persons his winning trading strategies and techniques. Young solicited persons to become members of Global One which would allow them access to his web-based live training seminars. Young claimed that he had developed an automated trading program that traded according to his strategies simply by “flipping a switch.” Young enticed members into providing money for “loans” to Global One and told them that they would be able to earn high yield returns on their investments. In actuality, the automated trading program did not exist in the form that Young represented and Young was running an elaborate Ponzi scheme in which proceeds from the member loans were diverted to Young his own use. From about 2006 to 2008, Young derived approximately $16 million in proceeds from the scheme.
Beginning in February 2007, Reade represented Young and Global One in connection with business litigation and transactions. In March 2007, Young intended to use Global One loan monies to purchase a FOREX brokerage company named Trend. To disguise the source and ownership of the illegal proceeds, Young authorized Reade to create and control a holding corporation called Way FX Corp. In April 2007, Young transferred approximately $2.25 million from Global One accounts to the Way FX bank account controlled by Reade, and Reade signed an agreement to purchase Trend. On August 21, 2007, Reade received $75,000 from Global One for his services related to Way FX and the purchase of Trend.
From about May 2007 to August 2007, in connection with an investigation by the National Futures Association about the ownership and funding of Trend, Reade falsely told investigators that he was unaware who owned Global One or how Global One raised money, and that the funds used to purchase Trend came from his personal contributions and not from Global One. Reade knew that his statements were false and that Young had committed the offense of money laundering. Reade also knew that he had assisted Young in order to hinder or prevent the investigation of Young in connection with the money laundering.
In March 2011, Young was convicted by a federal jury in the District of Nevada of conspiracy, fraud and money laundering charges. In December 2011, he was sentenced to 25 years in prison and ordered to pay $13.3 million in restitution.
The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by First Assistant United States Attorney Steven W. Myhre and Assistant United States Attorney James E. Keller.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. 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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Laguna Pueblo Man Sentenced to Federal Prison for Assaulting his Intimate Partner by StrangulationRead the Press Release
ALBUQUERQUE – Brian Dyea, 28, was sentenced today to 24 months in prison followed by two years of supervised release for assaulting his intimate partner by strangulation. Dyea also was ordered to pay a $2,000.00 fine and to undergo domestic violence treatment.
The sentence was announced by U.S. Attorney Damon P. Martinez, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services, and Acting Chief Brian Carr of the Pueblo of Laguna Tribal Police Department.
Dyea, a member of the Pueblo of Laguna who resides in Mesita, N.M., was arrested on Jan 21, 2014, on a criminal complaint alleging that he assaulted his intimate partner, a Laguna Pueblo woman, by strangling and biting her. Dyea subsequently was indicted and charged with assaulting his intimate partner by strangulation on Jan. 12, 2014 in a location within the Pueblo of Laguna.
Dyea entered a guilty plea on March 24, 2014, and admitted assaulting the victim on Jan. 12, 2014, by biting her and strangling her, by placing his hands around her neck and impeding her normal breathing. Dyea acknowledged that the victim suffered contusions to her forehead and foot, three bite-marks to her left hand and forearm, a wrist sprain, and a head injury with the loss of consciousness as a result of the assault.
This case was investigated by the Laguna Agency of BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department, and is being prosecuted by Special Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Lackawanna County Woman Charged with Defrauding Credit UnionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an indictment was returned by a grand jury charging Farah Laurent, age 30, of Scranton, Pennsylvania, with obtaining approximately $26,000 by fraud from the Tobyhanna Federal Credit Union in May through July of 2010.
According to United States Attorney Peter Smith, Laurent allegedly made fictitious credit card payments to the Tobyhanna Federal Credit Union by using either closed or invalid at other banks.
Laurent faces a maximum sentence up to 30 years in prison and fines in the amount of $500,000.
The prosecution is the result of an investigation by the United States Secret Service. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 30 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Lacey Weld Sentenced to More Than 12 Years in Prison for Conspiracy to Manufacture MethamphetamineRead the Press Release
Manufacturing and Smoking Methamphetamine while Pregnant Results in Enhanced Sentence
KNOXVILLE, Tenn. - Lacey Weld, 27, of Dandridge, Tenn., was sentenced today to serve 151 months in prison followed by five years of supervised release by the Honorable Thomas Varlan, Chief U.S. District Judge. The sentence was the result of a guilty plea by Weld in November 2013 to a federal grand jury indictment charging her with conspiracy to manufacture methamphetamine (meth).
This case is unique because Weld used and manufactured meth while in her ninth month of pregnancy. Her baby was born severely drug-addicted and suffered from withdrawals for almost six weeks. Department of Children’s Services Case Manager Lynnie Vaughn testified that in the approximately 50 cases she has investigated involving drug-addicted babies, this case was by far the worst, with this baby suffering extreme harm.
Judge Varlan determined that the enhancement for creating a substantial risk of harm to a minor, which resulted in a six-offense level increase to Weld’s Guidelines range, was justified due to her using and manufacturing meth while pregnant. Video evidence from the investigation showed that Weld was in a meth lab for approximately 40 minutes, where she cooked and used meth. Tennessee Bureau of Investigation Special Agent Matt Thompson testified about the extremely hazardous conditions, including the toxic fumes and explosive environment, surrounding that meth lab.
“This nation has seen a tragic rise in the number of babies born addicted to drugs. Through this prosecution, the U.S. Attorney’s Office sends a message that, should a child, born or unborn, be exposed to a substantial risk of harm through the manufacture of methamphetamine, we will pursue any available enhancements at sentencing,” said U.S. Attorney William C. Killian.
The indictment and subsequent conviction of Weld was the result of an investigation conducted by Tennessee Bureau of Investigation, Fourth Judicial Drug Task Force, Dandridge Police Department, Jefferson County Sheriff’s Department, and Sevier County Sherriff’s Department. The United States was represented by Assistant U.S. Attorney Kelly Norris.
Klamath Falls Drug Dealer Sentenced to 10 Years in PrisonRead the Press Release
MEDFORD, OREGON— On Monday, July 14, 2014, Senior U.S. District Judge Owen M. Panner sentenced Earl Allen IV, 39, of Klamath Falls, Oregon, to ten years in federal prison, after he pleaded guilty to possession of methamphetamine with intent to distribute and being a felon in possession of a firearm. Allen will also be on five years of supervised release after he completes his prison term.
On June 30, 2013, a Rogue Area Drug Enforcement (RADE) detective received information that Allen and a female companion, both Klamath Falls fugitives, were staying in Grants Pass, and that Allen had methamphetamine for sale. RADE detectives checked various Grants Pass motels and eventually observed Allen standing outside the Comfort Inn. RADE detectives arrested Allen and found him holding $3,216 cash. The female arrived a short time later driving one of Allen’s vehicles and was also arrested.
Detectives obtained search warrants for Allen’s motel room and two vehicles. The motel room contained 95.8 grams of pure methamphetamine, digital scales, drug packaging materials, marijuana, and a stolen laptop computer. Allen’s Ford F150 pickup truck contained multiple sets of digital scales, drug notes, and drug packaging materials in the pickup bed, a 9 mm handgun behind the driver’s seat with a loaded magazine under the seat, and a loaded .22-caliber revolver also under the seat.
Allen is a multiple convicted felon with prior convictions for delivery of methamphetamine in 2007 and 2004, possession of methamphetamine in 2006, supplying contraband in 2000, and multiple misdemeanor convictions for assault, menacing, and robbery.
This case was investigated jointly by the Rogue Area Drug Enforcement Team, the Bureau of Alcohol, Tobacco, and Firearms, and the U.S. Drug Enforcement Administration, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Justice Department and the Pennsylvania Office of Attorney General Require Divestiture from Sinclair Broadcast Group in Order to Proceed with Its Acquisition of Perpetual Corp.Read the Press Release
The Department of Justice announced today that it will require Sinclair Broadcast Group and Perpetual Corp. to divest their interests in WHTM-TV, an ABC affiliate in Harrisburg, Pennsylvania, in order to proceed with Sinclair’s proposed $963 million acquisition of Perpetual. The department said that, without the required divestiture, prices for broadcast television spot advertising would likely increase in parts of central Pennsylvania.
The department’s Antitrust Division and the Pennsylvania Office of Attorney General filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed acquisition. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.
“Perpetual’s WHTM-TV competes directly with WHP-TV and WLYH-TV, two stations owned or operated by Sinclair, in the sale of broadcast television spot advertising in parts of central Pennsylvania,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The rivalry between the stations has helped to constrain advertising rates, and without the divestiture, advertisers on stations in this area would likely have paid higher prices.”
The department’s complaint alleges that the proposed acquisition would lessen competition in broadcast television spot advertising in the Harrisburg-Lancaster-Lebanon-York, Pennsylvania, designated market area (DMA). According to the complaint, the merging stations are relatively close substitutes for many advertisers, with similar demographic profiles and competing independent local news operations. As a result of the acquisition, Sinclair would own or control three of the six broadcast television stations selling advertising in the area, and advertisers could be forced to accept price increases due to the loss of competition. To remedy this harm, the proposed settlement requires Sinclair and Perpetual to divest all assets primarily used in the operation of WHTM‑TV to Media General, an independent purchaser approved by the United States.
The department also analyzed the likelihood of competitive harm in Charleston, South Carolina, where Sinclair will acquire ABC affiliate WCIV-TV as part of the proposed acquisition. Cunningham Broadcasting, a company with partnership and operation agreements with Sinclair around the country, owns the Charleston FOX affiliate, WTAT-TV. Due to the close ties between Sinclair and Cunningham, the department’s competitive analysis treated the relationship between the ABC affiliate Sinclair is acquiring, WCIV-TV, and the Cunningham-owned WTAT-TV as akin to a merger of those stations. The department’s investigation and antitrust analysis of the Charleston market revealed that advertisers do not largely view the stations as close substitutes, and even a full merger would not likely result in a substantial lessening of competition.
Sinclair, a Maryland corporation with headquarters in Hunt Valley, Maryland, owns or operates more than 145 broadcast television stations nationwide. Sinclair’s WHP-TV is the CBS affiliate in the Harrisburg-Lancaster-Lebanon-York DMA. Additionally, Sinclair operates WLYH-TV, the CW affiliate for the area, under an existing agreement with Nexstar Broadcasting, which is not a party to the proposed settlement.
Perpetual, a Delaware corporation with its headquarters in Arlington, Virginia, owns and operates seven broadcast television stations in six markets throughout the United States. Perpetual’s WHTM‑TV is the ABC affiliate in the Harrisburg-Lancaster-Lebanon-York DMA.
Media General, a Virginia corporation with headquarters in Richmond, Virginia, owns or operates more than 28 broadcast television stations nationwide. Media General does not currently own or operate any broadcast television stations in the Harrisburg-Lancaster-Lebanon-York DMA.As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60‑day comment period to Scott A. Scheele, Chief, Telecommunications and Media Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7000, Washington, D.C. 20530. At the conclusion of the 60‑day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Justice Department Releases Best Practices Guide to Reform HIV-Specific Criminal Laws to Align with Scientifically-Supported FactorsRead the Press Release
The Justice Department announced today that it has released a Best Practices Guide to Reform HIV-Specific Criminal Laws to Align with Scientifically-Supported Factors . This guide provides technical assistance regarding state laws that criminalize engaging in certain behaviors without disclosing known HIV-positive status. The guide will assist states to ensure that their policies reflect contemporary understanding of HIV transmission routes and associated benefits of treatment and do not place unnecessary burdens on individuals living with HIV/AIDS.
This guide is in follow-up to the department’s March 15, 2014, article published with the Centers for Disease Control and Prevention (CDC), Prevalence and Public Health Implications of State Laws that Criminalize Potential HIV Exposure in the United States, which examined HIV-specific criminal laws. Generally, these laws do not account for scientifically-supported level of risk by type of activities engaged in or risk reduction measures undertaken. As a result, many of these state laws criminalize behaviors that the CDC regards as posing either no risk or negligible risk for HIV transmission even in the absence of risk reduction measures.
“While initially well intentioned, these laws often run counter to current scientific evidence about routes of HIV transmission, and may run counter to our best public health practices for prevention and treatment of HIV,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department is committed to using all of the tools available to address the stigma that acts as a barrier to effectively addressing this epidemic.”
The department’s efforts to provide guidance on HIV-specific criminal laws are part of its ongoing commitment to implementation of the National HIV/AID Strategy, released in 2010. Today’s guide furthers the expectation from the Office of National AIDS Policy that we tackle misconceptions, stigma and discrimination to break down barriers to care for those people living with HIV in response to the President’s Executive Order last year on the HIV Care Continuum Initiative. For more information on the National HIV/AIDS Strategy, visit the White House website .
For more information on the ADA and HIV, visit this website . Those interested in finding out more about obligations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website .
Hudson Man Sentenced for Fraud Conspiracy in Connection with Renovation of McCormack Federal BuildingRead the Press Release
Boston – A Hudson man was sentenced today for conspiring to defraud the government in connection with the renovation of the John W. McCormack Post Office and Courthouse in Boston.
Aluisio Dasilva, 67, was sentenced by U.S. District Court Judge George A. O’Toole, Jr., to one year of probation, including six months of home confinement, and ordered to pay $10,800 in restitution. In March 2014, Dasilva and his co-defendant, Wael Isreb, 55, of Wrentham, each pleaded guilty to conspiracy to commit mail fraud and false statements. Isreb is scheduled to be sentenced on Aug.7, 2014.
DaSilva was employed as a cement mason by Taunton Forms, a now-defunct concrete construction company based in Lakeville, Mass., that was owned and operated by Isreb. In 2006, the Government Services Administration (GSA) retained Suffolk Construction Company as the general contractor to renovate the McCormack Building. Suffolk Construction, in turn, retained Taunton Forms as a subcontractor to perform certain concrete work on that project. Suffolk Construction ultimately paid Taunton Forms in excess of $1 million for its work.
Federal law requires that contractors on federal projects over $2,000 pay workers a prevailing wage, and that they submit weekly reports certifying the wages they paid their employees. Beginning in December 2007, however, Isreb, DaSilva and others conspired to pay Taunton Forms workers less than the prevailing wage while certifying to Suffolk Construction, the GSA, and the Department of Labor (DOL) that Taunton Forms was, in fact, paying the prevailing wage.
As part of the conspiracy, the defendants agreed to report, falsely, to the Massachusetts Department of Unemployment Assistance (DUA) that DaSilva and other workers had been laid off. That permitted the workers to offset their lower wages with unemployment benefits while they worked on the McCormack Building project and other projects. The conspiracy also permitted Taunton Forms to avoid making fringe benefit payments to certain labor union benefit plans that it was required to pay pursuant to its applicable collective bargaining agreements. Taunton Forms also failed to withhold applicable payroll taxes.
United States Attorney Carmen M. Ortiz; Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office; Luis A. Hernandez, Special Agent in Charge of the U.S. General Services Administration, Office of Inspector General, Office of Investigations; Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston. The case is being prosecuted by Assistant United States Attorney Stephen E. Frank of Ortiz’s Economic Crimes Unit.
Homer Man Pleads Guilty to Stealing More Than $59,000 from EmployerRead the Press Release
SHREVEPORT, La. –A Homer man pleaded guilty to stealing more than $59,000 from his Claiborne Parish employer’s bank account, U.S. Attorney Stephanie A. Finley announced today.
John Bob Jr., 46, of Homer, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of bank fraud and one count of aggravated identity theft. According to the evidence presented at the guilty plea, the defendant used his employer’s debit card and personal identification number to make approximately 200 withdrawals totaling $59,602 from May 2012 to July 2013 from banks across northwest Louisiana.
Bob faces a maximum penalty of 32 years in prison, five years of supervised release, and a $1 million fine. A sentencing date of November 13, 2014 was set.
The FBI and Claiborne Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
Homer Man Pleads Guilty to Stealing More Than $59,000 from EmployerRead the Press Release
SHREVEPORT, La. –A Homer man pleaded guilty to stealing more than $59,000 from his Claiborne Parish employer’s bank account, U.S. Attorney Stephanie A. Finley announced today.
John Bob Jr., 46, of Homer, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of bank fraud and one count of aggravated identity theft. According to the evidence presented at the guilty plea, the defendant used his employer’s debit card and personal identification number to make approximately 200 withdrawals totaling $59,602 from May 2012 to July 2013 from banks across northwest Louisiana.
Bob faces a maximum penalty of 32 years in prison, five years of supervised release, and a $1 million fine. A sentencing date of November 13, 2014 was set.
The FBI and Claiborne Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.Hartford Man Sentenced to 5 Years in Federal Prison for Role in Narcotics Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY HARRINGTON, also known as “Tone,” 29, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by four years of supervised release, for his role in a narcotics trafficking ring.
This matter stems from a joint law enforcement investigation headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) into a narcotics trafficking operation headed by Luther Nance, also known as “Papers” and “Cash.” The investigation, which included numerous controlled purchases of narcotics and physical surveillance, revealed that Nance and his associates sold crack cocaine and heroin in several communities throughout Connecticut utilizing multiple bases of operation, including a house on Carroll Road in East Hartford, the Sheldon Oaks housing complex in Hartford and an apartment on Valley Street in Willimantic.
According to court documents and statements made in court, HARRINGTON obtained crack cocaine from other members of the conspiracy, supplied the drug to other dealers and also sold it to his own customers in the Hartford area and in Providence, R.I.
On June 27, 2013, a federal grand jury returned a 51-count superseding indictment charging HARRINGTON, Nance and 13 other individuals with narcotics conspiracy and related offenses.
HARRINGTON has been detained since his arrest on June 13, 2013. On March 27, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
HARRINGTON’s criminal history includes multiple felony convictions in Connecticut and Rhode Island.
On March 7, 2014, Nance pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base, and one count of conspiracy to engage in money laundering. He is detained while awaiting sentencing.This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation Division, the U.S. Marshals Service, the Office of the Chief State’s Attorney, the State’s Attorney for the Judicial District of Hartford, and the Hartford, Willimantic, East Hartford, Enfield and Middletown Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Happy’s Pizza Franchise Owner and Nominee Owner Plead Guilty in Tax Fraud SchemeRead the Press Release
Two West Bloomfield, Michigan, residents pleaded guilty in the U.S. District Court for the Eastern District of Michigan today, announced the Justice Department and Internal Revenue Service (IRS).
Arkan Summa, an owner of numerous Happy’s Pizza franchises, pleaded guilty to corruptly endeavoring to obstruct or impede the due administration of the internal revenue laws. Tagrid Summa Bashi, Summa’s sister and a nominee owner, pleaded guilty to willfully delivering false documents to the IRS.
A multiple count indictment was unsealed July 16, 2013 alleging that from approximately June 2004 through April 2011, Summa executed a scheme in which he diverted gross receipts, underreported wages and caused the taxable income and payroll tax information of specific Happy’s Pizza franchises to be underreported to the IRS.
According to the information filed in court, in 2009, Bashi caused false payroll information forms to be submitted to the IRS. Documents filed with the court indicate Summa’s obstruction of the IRS resulted in a tax loss of approximately $199,847, and Bashi caused approximately $55,000 in wages to be underreported to the IRS through her false submission.
For the obstruction charge, Summa faces a statutory maximum sentence of three years in prison and a fine of up to $250,000. Bashi faces a statutory maximum sentence of 12 months in prison and a fine of up to $100,000. Sentencing for both defendants is scheduled for Oct. 23.
This case was investigated by IRS – Criminal Investigation, the Drug Enforcement Administration and the FBI. It is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Hamburg Man Sentenced for Impersonating a Federal OfficerRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jack DeMeo, 52, of Hamburg, N.Y., who was convicted of impersonation of a federal officer, was sentenced to one year probation by Chief U.S. District Judge William M. Skretny.
Assistant U.S. MaryEllen Kresse, who handled the case, stated that in March 2009, the defendant, owner of Southtown Sports, Inc., pretended to be a Revenue Officer with the Internal Revenue Service. In doing so, DeMeo sent false levy releases to several companies with which Southtown Sports did business.
In March 2009, the IRS began a collection action against the defendant and his company. During the course of the case, the assigned Revenue Officer issued levies to companies that owed money to Southtown Sports and instructed them to send all payments directly to the IRS. The Revenue Officer later issued levy releases as to several of the companies.
Thereafter, DeMeo took one of the legitimate levy releases and accompanying letter from the Revenue Officer and altered the documents by removing any reference to the company the paperwork was originally sent. The defendant then faxed the fraudulent levy release and letter to several companies that previously received levies. The defendant told the companies to forward all monies owed to Southtown Sports directly rather than the IRS.
The sentencing is the culmination of an investigation by Internal Revenue Service Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.Greenville Man Receives 97 Months Imprisonment for Possession of Child PornRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that Christopher E. Miller, age 26, of Greenville, South Carolina, was sentenced today in federal court in Anderson, South Carolina, for possession of child pornography, a violation of 18 U.S.C. ' 2252A. Senior United States District G. Ross Anderson, Jr., sentenced Miller to 97 months imprisonment, five years of supervised release, and ordered him to pay a $100 special assessment fee.
Evidence presented at the change of plea hearing established that agents received information that someone located in Greenville, South Carolina, was using peer-to-peer software to download child pornography via the internet. Investigative efforts allowed law enforcement to determine the IP address that was utilized to download the child pornography. The Federal Bureau of Investigation then traced the IP address to Miller’s home.
Agents executed a search warrant at Miller’s home in Greenville. They seized computers from the home and conducted a forensic examination. Agents discovered hundreds of still images and videos of minors engaging in sexually explicit conduct.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.Garfield Heights Man Faces Heroin and Firearms ChargesRead the Press Release
An eight-count indictment was filed today charging a Garfield Heights man with distributing heroin and illegally possessing a firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Deion Thompson, 27, also known as Sino Grams, was indicted on six counts of distribution of heroin, one count of possession of heroin with intent to distribute and one count of being a felon in possession of a firearm.
“This defendant sold heroin on our streets and had a gun despite being prohibited from having one,” Dettelbach said. “We will continue to work to reduce the supply of drugs in our neighborhoods while working with other partners to reduce demand.”
Thompson made multiple sales of heroin in June and July. On July 7, he possessed 66 grams of heroin and a 9 mm Browning pistol, despite prior convictions in Cuyahoga County Common Pleas Court, including drug trafficking offenses with a schoolyard specification, having weapons under disability and failure to comply with a police order, according to the indictment.
This case is being handled by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the Southeast Law Enforcement Task Force, a collaboration of police departments including Bedford, Bedford Heights, Garfield Heights, Maple Heights, Solon, Oakwood and Walton Hills.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record , the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt
Former Wilmington Trust Lender Indicted on Bank Fraud and Illegally Benefiting in Customer TransactionsRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Peter W. Hayes, age 48 of Newark, Delaware, was charged on July 15, 2014, in a seven-count Indictment with the following offenses:
- Counts 1 and 2 charge the defendant with Fraudulently Benefiting in a Loan Transaction, in violation of Title 18, United States Code, Sections 1005 and 2. The maximum penalties for each of Counts 1 and 2 are a term of imprisonment of thirty years; a fine of $1,000,000.00; a term of supervised release of five years; a $100 special assessment; and mandatory restitution.
- Counts 3 and 4 charge the defendant with Soliciting or Accepting for His Own Benefit Anything of Value in Connection With the Transaction and the Business of a Financial Institution, in violation of Title 18, United States Code, Sections 215(a)(2) and 2. The maximum penalties for each of Counts 3 and 4 are a term of imprisonment of 30 years; a fine of $1,000,000.00; a term of supervised release of five years; a $100.00 special assessment; and mandatory restitution.
- Counts 5 through 7 charge the defendant with Bank Fraud, in violation of Title 18, United States Code, Sections 1344 and 2. The maximum penalties for each of Counts 5-7 are a term of imprisonment of thirty years; a fine of $1,000,000.00; a term of supervised release of five years; a $100.00 special assessment; and mandatory restitution.
The Indictment alleges that Mr. Hayes, a former Relationship Manager (“RM”), or lender, in the Delaware Commercial Real Estate (“CRE”) Division at the Wilmington Trust Co. (“WTC”) engaged in several fraudulent transactions with one of his customers, identified in the Indictment as “Customer A.” According to the Indictment, Hayes engaged in the following conduct in his dealings with Customer A:
(1) Hayes accepted and solicited from Customer A investment opportunities in Customer A’s real estate developments, in which Hayes received monthly rental income sufficient to pay his mortgage plus expenses on investment properties purchased from Customer A;(2) Hayes later solicited and accepted a favorable loan from Customer A to pay off Hayes’ investment losses;
(3) Hayes knowingly causing WTC loan funds to be disbursed to Customer A for purposes that were not authorized by WTC’s loan agreements with Customer A, and submitted false information in support of draw requests to provide funding to Customer A, including to cover overdrafts in Customer A’s operating bank account; and
(4) Hayes caused WTC to lend funds without loan committee approval to an investment company founded by Customer A’s President, so that the investment company could purchase model homes that would be leased back to Customer A or others.
“The indictment alleges that the defendant, a former Wilmington Trust lender, engaged in multiple fraudulent schemes to benefit one of Wilmington Trust’s largest clients, as well as himself,” stated United States Attorney Oberly. “The client ultimately suffered millions of dollars in losses, which were shouldered by the Bank and its shareholders. Our office will continue to vigorously investigate alleged fraudulent schemes, such as those charged in today’s Indictment, related to the downfall of Wilmington Trust.”Christy Romero, Special Inspector General for TARP (SIGTARP) said, “Hayes stands charged with bank fraud, bribery, and fraudulently benefitting from loan transactions for a multitude of various offenses. This type of fraud and self-dealing is unacceptable, and SIGTARP and our law enforcement partners will pursue any offenders whose conduct jeopardizes taxpayers’ TARP investments to hold perpetrators accountable for their crimes.”
The case was investigated by the Federal Bureau of Investigation and the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and is being prosecuted by Assistant United States Attorneys Robert F. Kravetz, Lesley F. Wolf, and Ilana H. Eisenstein.
Members of the public are reminded that an Indictment is only an allegation and that a defendant is presumed innocent until proven guilty.