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26 August 2014
Henry Fellela, Jr. Sentenced to Federal Prison for Credit Card Fraud, Social Security Fraud and Aggravated Identity TheftRead the Press Release
PROVIDENCE, R.I. – Henry A. Fellela, Jr., 56, of Johnston, was sentenced today to 48 months in federal prison for making nearly $83,000 in purchases with the use of stolen credit cards belonging to 17 individuals and fraudulently collecting more than $58,000 in Supplemental Security Income benefits by falsely claiming that he had no permanent home address while living with his wife and children in their Johnston residence.
Fellela’s sentence is announced by United States Attorney Peter F. Neronha; Smithfield Police Chief Richard P. St. Sauveur, Jr.; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
According to court documents and information presented to the court, an investigation initiated by Smithfield Police and U.S. Postal Inspectors in September 2010 revealed that Fellela stole a credit card from the mailbox of an 85-year-old Smithfield resident and used that person’s identity and stolen credit card to make several purchases, including electronic goods, clothing and gasoline, totaling $3,077.13. As the investigation broadened, it was determined that between 2008 and 2012, the defendant activated credit cards belonging to sixteen other individuals and made numerous purchases, including high-end consumer items and gift cards. In total, Mr. Fellela made unauthorized purchases using stolen credit cards totaling $82,991.60.
In addition, according to information presented to the court, an investigation by the Social Security Administration Office of the Inspector General/Office of Investigations determined that three months after Fellela was released from federal prison in March 2004 to begin serving a 21-month term of supervised release on an unrelated matter, and continuing until about June 1, 2012, Fellela fraudulently collected Supplemental Security Income benefits totaling $58,207.34, after falsely reporting that he had no permanent address at the time he applied for and received the benefits. The investigation revealed that Fellela collected the benefits while living with his wife and children in their Johnston residence.
United States Attorney Peter F. Neronha commented “The conduct by the defendant here was so brazen and so low that it makes it difficult to know where to begin. Does it get any worse than stealing the identity and credit card of an 85 year old person to feed your own greed? Does it get any worse than claiming homelessness, a real problem for so many Rhode Islanders, and collecting thousands of undeserved dollars while living in comfort and enjoying high-end consumer goods? If ever a defendant deserved a long prison sentence, it is this one.”
“The Smithfield Police are thankful for the assistance provided by the U.S. Postal Inspection Service in investigating this crime committed against one of our elderly residents,” said Smithfield Police Chief Richard P. St. Sauveur, Jr. “The successful investigation and ultimate prosecution of Mr. Fellela by the United States Attorney should serve as evidence that the entire criminal justice system works, and will continue to work tirelessly to hold accountable those individuals who engage in fraudulent activity and demonstrate no regard for the financial impact that their crimes have on victims.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Fellela to serve 3 years of supervised release upon completion of his prison term. Fellela pleaded guilty on April 8, 2014, as charged in a five-count indictment, to one count each of credit card fraud, aggravated identity theft and Social Security fraud, and two counts of theft of government funds.
Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service Boston Division said, “The U.S. Postal Inspection Service is committed to working with our partners to bring to justice those who would victimize the elderly and steal from some of the very programs designed to help those in need.”
“Making false statements to Social Security to fraudulently collect Supplemental Security Income—a government payment intended to assist those truly in need—is an intolerable offense on its own, yet Mr. Fellela was also found to have committed tens of thousands of dollars of credit card fraud,” said Social Security OIG Special Agent-in-Charge Scott Antolik. “Our office will continue to partner with the United States Attorney’s Office in Rhode Island to pursue all forms of fraud against Social Security's programs, especially instances of SSI fraud.”
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
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Contact: 401-709-5357
[email protected]Halethorpe Man Sentenced to 9 Years in Prison for Distribution of Child PornographyRead the Press Release
Shared Child Pornography Files Using Neighbor’s Wireless Connection to
Avoid Detection by Law Enforcement
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Kevin Francis Kelley, age 45, of Halethorpe, Maryland, today to nine years in prison, followed by 20 years of supervised release, for distribution of child pornography. Judge Hollander ordered that upon his release from prison, Kelley must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Judge Hollander also ordered Kelley to pay restitution of $3,000.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Kelley was sharing child pornography using a file sharing program he downloaded from the internet. On October 13, 2013, an undercover Baltimore County Police detective downloaded a video file Kelley was sharing that depicted a prepubescent child engaged in sexually explicit conduct. Investigation revealed that Kelley was using a neighbor’s IP address, which he was able to access because he had helped them set up the password for their wireless router. Kelley admitted that he used his neighbor’s wireless connection to avoid detection by law enforcement. Kelley further admitted that he had been collecting child pornography for over 10 years and possessed “thousands” of child pornography images and videos that were saved on his computers and hard drives. Kelley advised law enforcement that he categorized his child pornography in various ways to include by sex act, age of child and name of child.
A preliminary forensic analysis of just one computer and hard drive of Kelley’s three computers and four external hard drives contained over 63,000 image files and 950 video files of child pornography, including prepubescent minors and images depicting sadistic or masochistic conduct or other depictions of violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, the Baltimore County Police Department and the Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Greenvillle Man Guilty of Impeding Border PatrolRead the Press Release
LAREDO, Texas – Joe Adam Vega, 25, has entered a guilty plea to two counts of Impeding agents at the Border Patrol checkpoint just north of Laredo for refusing to comply with instructions, announced U.S. Attorney Kenneth Magidson. Vega, of Greenville, pleaded guilty in Laredo federal court yesterday afternoon.
According to court records and statements made at yesterday’s proceeding, Vega arrived at the checkpoint on July 29, 2014. Agents directed Vega to move away from the primary inspection lane and drive to the secondary inspection area after a canine had alerted to the presence of drugs or hidden persons in the vehicle's trunk. He refused.
He was ordered to move several times by the agent and a supervising agent. He continued to refuse. He said he wanted to go on his way without permitting the additional inspections. Agents warned him that he would be arrested for violations of impeding federal officers if he did not move as directed. He again insisted that he wanted to drive away without inspection.
His passenger locked the driver's door and attempted to roll up the car's windows. Agents forcibly removed both occupants from the vehicle and arrested them.
Sentencing has been set for Dec. 3, 2014, at which time he faces up to a year in prison and/or a possible $100,000 fine.
The case was investigated by Border Patrol and Homeland Security Investigations. Assistant U.S. Attorney Raul Guerra is prosecuting.
Former VA Employee Sentenced to 5 Years in Prison for Defrauding the Government of over $450,000Read the Press Release
DUBLIN, GA – LORETTA SMITH, 41, of Glenwood, Georgia, was sentenced in last week by Senior U. S. District Court Judge Dudley H. Bowen to serve 5 years in prison for defrauding the U. S. Department of Veterans Affairs (“VA”) through fraudulent worker’s compensation claims.
According to the evidence presented during the guilty plea and sentencing hearings, SMITH, while employed with the VA in Dublin as a nurse, submitted bogus worker’s compensation claims to the Department of Labor from 2009 through 2013. SMITH falsely claimed costs for travel which she did not make, and falsely claimed costs for medical treatment which she did not receive. As a result of her bogus claims to the Department of Labor, SMITH received more than $450,000 to which she was not entitled.
United States Attorney Edward Tarver stated, “This defendant, who was hired by the federal government to help those in need, chose, instead, to help herself to taxpayer money she wasn’t entitled to receive. This sentence sends this strong message to those who would lie and cheat to get taxpayer money: you can expect to spend years in a federal prison.”
Upon her release from prison, SMITH will serve 3 years of supervised release. Additionally, she was sentenced to pay $454,000 in restitution and a $454,000 forfeiture judgment.
The case was investigated by Special Agents with the Department of Labor, Office of Inspector General and the Department of Veteran’s Affairs, Office of Inspector General. Assistant U. S. Attorney Carlton Bourne prosecuted the case on behalf of the United States.
Former Technology Director for City of Lenexa Charged with Wire Fraud, TheftRead the Press Release
KANSAS CITY, KAN. - The former technology director for the City of Lenexa appeared in U.S. District Court here Monday on charges of wire fraud and theft, U.S. Attorney Barry Grissom said.
Andrew L. Davey, 44, Overland Park, Kan., is charged with five counts of wire fraud and one count of theft of government funds. The indictment alleges that Davey used city funds to buy electronic devices that he then sold on e-Bay. The indictment alleges Davey was responsible for stealing more than $98,800 worth of merchandise from the city including digital cameras and Apple MacBook computers.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each wire fraud count, and a maximum penalty of 10 years and a fine up to $250,000 on the theft charge. The Lenexa Police Department and the FBI investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Former Superindendent Sentenced for Misappropriating Department of Education FundsRead the Press Release
JOHNSTOWN, Pa. - A resident of North Salt Lake, Utah, has been sentenced in federal court to five years probation, including 10 months of home detention with electronic monitoring, 500 hours of community service, and $49,600 in restitution on his conviction of federal program theft, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Dr. Dennis L. Bruno, 63, the former Superintendent of Glendale School District, and now of North Salt Lake, Utah.
According to information presented to the court, from Oct. 3, 2005, to July 18, 2006, Bruno, in his capacity as Superintendent of Glendale School District, intentionally misapplied $49,600 of federal funds from the Fund for the Improvement of Education program, a program funded by the United States Department of Education.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Pennsylvania Office of the Auditor General Special Investigations Office, the United States Department of Education Office of Inspector General, and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Bruno.
Former Hastings Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Todd Tackwell, age 39, formerly of Lincoln, Nebraska, was sentenced on August 26 in Lincoln, Nebraska, to 13 years in prison by United States Senior District Judge Richard G. Kopf, for receipt and distribution of child pornography. After his release from prison, Tackwell will be required to serve a life term of supervised release and be registered as a sex offender.
Tackwell came to the attention of law enforcement through an investigation initiated by Immigration and Customs Enforcement into a criminal organization which was operating a commercial child pornography website. Tackwell was determined to be a subscriber to the website. In August of 2008 investigators contacted Tackwell at his residence in Hastings, at which time Tackwell admitted he possessed child pornography on his computer. An indictment was filed in the District of Nebraska in 2010, as a result of a forensic examination of Tackwell’s computer hard drive which revealed videos depicting sexually explicit conduct of children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Adams County Sheriff, Nebraska State Patrol, and Immigrations and Customs Enforcement.
- Former Fugitive Faces Numerous Charges Including Hostage Taking Related to an Alleged Murder
Former DeKalb County Commissioner Charged with Stealing County FundsRead the Press Release
ATLANTA – Elaine Boyer, the former Commissioner of District 1 in DeKalb County, Ga., has been arraigned on charges relating to her embezzlement of county funds and misuse of her DeKalb County credit card.
“As an elected County Commissioner, Ms. Boyer had a duty to serve the best interests of the citizens of DeKalb County,” said United States Attorney Sally Quillian Yates. “Instead of honoring that commitment, Ms. Boyer stole from the citizens she was sworn to serve by diverting thousands of dollars in county funds to her personal bank account and using her county-issued credit card like it was her own.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption based investigations often stem from actions that would be seen as clearly improper and illegal to the average person. The charges in this case, however, reflect criminal actions of a twenty-two year veteran DeKalb County Commissioner who knew fully the nature of her actions and she will now face the consequences of those actions. The FBI places a high priority toward investigating allegations of public corruption due to the extensive harm that it can cause on many levels and we ask that anyone with information regarding such allegations to please contact their nearest FBI field office.”
According to United States Attorney Yates, the charges, and other information presented in court: In DeKalb County, Ga., the Board of Commissioners (“BOC”) serves as the legislative branch of the DeKalb County Government. The BOC is comprised of seven part-time commissioners, who are elected to serve four-year terms. Each of the seven Commissioners is responsible for the management of their respective offices, which includes controlling the offices’ budget and hiring staff members, contractors, and consultants. In recent years, the operating budget for a Commissioner’s office has been approximately $250,000 per year. The Commissioners may use their budget only for county-related business.
Since 1992, Ms. Boyer served as the Commissioner of District 1, which serves citizens in north DeKalb County, including in Brookhaven, Dunwoody, Tucker, and Smoke Rise, Ga. Among other responsibilities, Ms. Boyer sat on the BOC’s Finance, Budget, and Audit Committee and was the Chairwoman of the Employee Relations and Community Services Committee. Boyer’s term of office was to expire in 2016; however, Boyer resigned yesterday.
In September 2009, as the Commissioner of District 1, Ms. Boyer retained an individual (“Advisor”) supposedly to assist her with government consulting and advisory duties on issues that affected her constituents. From September 2009 to November 2011, false invoices were submitted to Ms. Boyer’s office for consulting services purportedly rendered by Advisor. In fact, Advisor performed no services for Ms. Boyer, District 1 constituents, or DeKalb County. Ms. Boyer used the false invoices as a basis to authorize payments to Advisor. Based on requisition requests from Ms. Boyer, DeKalb County mailed approximately 35 checks to Advisor for consulting services that were never performed. In total, DeKalb County paid Advisor more than $78,000, believing that legitimate services had been performed for the county.
After being paid by DeKalb County, Advisor funneled approximately 75% of the money received from DeKalb County into Ms. Boyer’s personal bank account. Between September 2009 and November 2011, Advisor deposited more than $58,000 in DeKalb County funds into Ms. Boyer’s personal bank account (while retaining the remainder of the money). In turn, Ms. Boyer used the money deposited into her account to pay personal expenses, including purchases at hotels and high-end department stores.
Additionally, in her capacity as a Commissioner, DeKalb County issued Ms. Boyer a Visa Purchasing Card (“P-Card”) to make county-related purchases. On January 14, 2010, she signed a Cardholder Users’ Agreement stating she would not use the P-Card to make personal purchases.
From October 2010 to February 2014, Ms. Boyer made more than 50 personal purchases on her P-Card, including purchasing airline tickets and hotel rooms for herself and her family for personal travel. In total, she made over $15,000 worth of purchases on her P-Card for personal goods and services.
Elaine Boyer, 57, of Stone Mountain, Ga., was charged via Criminal Information with conspiring to committed mail fraud and with wire fraud. She is scheduled to plead guilty at 3:00 p.m., on September 3, 2014, before U.S. District Court Judge Orinda D. Evans.
Members of the public are reminded that the information only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Federal Bureau of Investigation.
Assistant United States Attorneys Jeffrey W. Davis and Kurt R. Erskine are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Acting HHS Cyber Security Director Convicted for Engaging in Child Pornography EnterpriseRead the Press Release
The former acting director of cyber security at the U.S. Department of Health and Human Services was convicted by a federal jury in the District of Nebraska today of engaging in a child exploitation enterprise, conspiracy to advertise and distribute child pornography, and accessing a computer with intent to view child pornography in connection with his membership in a child pornography website.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg of the District of Nebraska and Special Agent in Charge Thomas R. Metz of the FBI’s Omaha Division made the announcement.
Timothy DeFoggi, 56, formerly of Germantown, Maryland, is the sixth individual to be convicted as part of an ongoing investigation targeting three child pornography websites. The three websites were run by a single administrator, who has since been convicted in the District of Nebraska of engaging in a child exploitation enterprise in connection with his administration of the sites.
According to evidence presented at trial, DeFoggi registered as a website member on March 2, 2012, and maintained his membership and activity until Dec. 8, 2012, when the website was taken down by the FBI. Through the website, DeFoggi accessed child pornography, solicited child pornography from other members, and exchanged private messages with other members where he expressed an interest in the violent rape and murder of children. DeFoggi even suggested meeting one member in person to fulfill their mutual fantasies to violently rape and murder children.
The jury reached its verdict following a four-day trial before U.S. Chief District Judge Laurie Smith Camp. Sentencing is scheduled for Nov. 7, 2014.
This case is a result of investigative efforts led by the FBI’s Omaha Field Office, Violent Crimes Against Children Section, Major Case Coordination Unit, and Digital Analysis and Research Center. This case was prosecuted by Trial Attorneys Keith Becker and Sarah Chang of the Criminal Division’s Child Exploitation and Obscenity Section, along with Assistant U.S. Attorney Michael P. Norris of the U.S. Attorney’s Office for the District of Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Former Acting HHS Cyber Security Director Convicted for Engaging in Child Pornography EnterpriseRead the Press Release
WASHINGTON – The former acting director of cyber security at the U.S. Department of Health and Human Services was convicted by a federal jury in the District of Nebraska today of engaging in a child exploitation enterprise, conspiracy to advertise and distribute child pornography, and accessing a computer with intent to view child pornography in connection with his membership in a child pornography website.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg of the District of Nebraska and Special Agent in Charge Thomas R. Metz of the FBI’s Omaha Division made the announcement.
Timothy DeFoggi, 56, formerly of Germantown, Maryland, is the sixth individual to be convicted as part of an ongoing investigation targeting three child pornography websites. The three websites were run by a single administrator, who has since been convicted in the District of Nebraska of engaging in a child exploitation enterprise in connection with his administration of the sites.
According to evidence presented at trial, DeFoggi registered as a website member on March 2, 2012, and maintained his membership and activity until Dec. 8, 2012, when the website was taken down by the FBI. Through the website, DeFoggi accessed child pornography, solicited child pornography from other members, and exchanged private messages with other members where he expressed an interest in the violent rape and murder of children. DeFoggi even suggested meeting one member in person to fulfill their mutual fantasies to violently rape and murder children.
The jury reached its verdict following a four-day trial before U.S. Chief District Judge Laurie Smith Camp. Sentencing is scheduled for Nov. 7, 2014.
This case is a result of investigative efforts led by the FBI’s Omaha Field Office, Violent Crimes Against Children Section, Major Case Coordination Unit, and Digital Analysis and Research Center. This case was prosecuted by Trial Attorneys Keith Becker and Sarah Chang of the Criminal Division’s Child Exploitation and Obscenity Section, along with Assistant U.S. Attorney Michael P. Norris of the U.S. Attorney’s Office for the District of Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Florida Oxycodone Trafficker Enters Federal Guilty PleaRead the Press Release
Charleston, W.Va. – A Florida man who possessed oxycodone and other prescription drugs during a December 2011 traffic stop in Summersville, West Virginia pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Gregory Leandre, 31, of Naples, Florida pleaded guilty to possession with intent to distribute oxycodone in federal court in Charleston.
On December 29, 2011, Leandre and another man were stopped by police in Summersville after receiving a tip from a local resident. The men were found in possession of approximately 831 oxycodone and 117 hydrocodone pills. At the plea hearing, Leandre told the Court he intended to distribute the pills.
Leandre made his appearance in U.S. District Court after serving prison time in Florida on an unrelated drug conviction. He faces up to 20 years in prison when he is sentenced on December 9, 2014.
The Summersville Police Department conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
ExxonMobil Pipeline Company to Pay Civil Penalty Under Proposed Settlement for Torbert, Louisiana, Oil SpillRead the Press Release
ExxonMobil Pipeline Company (ExxonMobil) has agreed to pay a civil penalty for an alleged violation of the Clean Water Act stemming from a 2012 crude oil spill from ExxonMobil’s “North Line” pipeline near Torbert, Louisiana, the Department of Justice and the Environmental Protection Agency (EPA) announced today. Under the consent decree lodged today in federal court, ExxonMobil will pay $1,437,120 to resolve the government’s claim.
The United States’ complaint, which was also filed today in the U.S. District Court for the Middle District of Louisiana, alleges that ExxonMobil discharged at least 2,800 barrels (or 117,000 gallons) of crude oil in violation of Section 311 of the Clean Water Act. On April 28, 2012, ExxonMobil’s 20/22-inch-diameter pipeline ruptured near Torbert, about 20 miles west of Baton Rouge, and crude oil spilled into the surrounding area and flowed into an unnamed tributary connected to Bayou Cholpe.
“Oil spills into our nation’s waters endanger public health and the environment and warrant concerted enforcement efforts,” said Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today’s settlement achieves a just result and furthers our enforcement mission.”
“All businesses have an obligation to protect their workers, the local community and the environment in which they operate,” said Cynthia Giles, Assistant Administrator for Enforcement and Compliance Assurance at EPA. “EPA is committed to protecting communities by enforcing laws that reduce pollution in local waterways.”
The $1.4 million penalty is in addition to the costs incurred by ExxonMobil to respond to the oil spill and to replace the segment of ruptured pipeline. ExxonMobil is completing cleanup actions pursuant to an administrative order issued by the Louisiana Department of Environmental Quality. The company also continues to do follow-up work and to operate under a Corrective Action Order issued by the United States Department of Transportation, Pipeline and Hazardous Materials Safety Administration.
The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid for this spill will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Fund Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged in the Middle District of Louisiana, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html .Erie Man Sentenced to 9 Years in Prison for Drug, Gun Law ViolationsRead the Press Release
ERIE, Pa. - A former resident of Erie Pennsylvania, has been sentenced in federal court to 111 months in jail on his conviction of violating federal firearms and drug laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Shawn I., McCrorey, 46.
According to information presented to the court, on January 5, 2013, McCrorey was found in possession of cocaine and a handgun, and a second hangun was found in his residence. Also, McCrorey obtained one of the handguns in December 2012, after lying to a local gun store about his identity and lying that he had no prior felony conviction. McCrorey, known by several aliases, was convicted in 1994 for the crime of delivery of cocaine under the name William Dean, and is therefore prohibited from firearm possession.
Prior to imposing sentence, Judge Cohill commented on the seriousness of the offense and the defendant’s possession of a firearm in furtherance of the drug distribution offense. In addition, Judge Cohill found that the defendant had obstructed justice by lying to the probation officer and the court about his identity. According to information provided to the court, McCrorey has used multiple aliases throughout his criminal history, and evidence revealed that the defendant is actually Jorge Soto.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office Bureau of Narcotics Investigation, and the Erie Bureau of Police for the investigation leading to the successful prosecution of McCrorey.
Eagle Butte Woman Charged with Theft from an Indian Tribal OrganizationRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Theft from an Indian Tribal Organization.
Rhonda Uses Many, age 47, was indicted on March 11, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 14, 2014, and pled not guilty to the Indictment. The maximum penalty upon conviction is 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Uses Many is alleged to have willfully and unlawfully stolen, embezzled, misapplied and converted to her own use over $1,000 of the monies, funds and assets belonging to the Cheyenne River Sioux Bingo Hall in February 2012. The charges are merely an accusation and Uses Many is presumed innocent until and unless proven guilty.The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Uses Many was released on bond pending trial. Trial has not been set.
Eagle Butte Man Sentenced for Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on August 12, 2014, by U.S. District Judge Roberto A. Lange.
William Pay Pay, age 52, was sentenced to 12 months and 1 day of custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Pay Pay was indicted by a federal grand jury on February 12, 2014, and pled guilty on May 29, 2014, to Assaulting, Resisting and Impeding a Federal Officer.
The conviction arose from a December 2013 incident when Pay Pay forcibly resisted arrest by a Cheyenne River Sioux Tribal Police Officer, resulting in physical contact with the officer. The physical contact occurred while the officer was employed by the Cheyenne River Sioux Tribe Police Department, under contract with the Bureau of Indian Affairs.The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Pay Pay was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Department of Justice Releases Second Report to Congress on Indian Country Investigations and ProsecutionsRead the Press Release
The Department of Justice released today its second report to Congress entitled Indian Country Investigations and Prosecutions, which provides a range of enforcement statistics required under the Tribal Law and Order Act of 2010, as well as information about the progress of the Attorney General’s initiatives to reduce violent crime and strengthen tribal justice systems.
The report, based on data compiled from the case management system used by U.S. Attorney’s Offices (USAO), shows prosecutors in 2013 continued to bring substantial numbers of cases to federal court (a 34 percent increase over FY 2009 numbers) and prosecute a substantial majority of all cases referred to them. Of the cases that were declined for federal prosecution, most were declined for insufficient evidence or because they were referred to another prosecuting authority, such as the tribe, for potential prosecution.
“As detailed in this report, the Department of Justice is making good on our commitment to strengthen cooperation with sovereign tribes, reduce violent crime, and ensure justice for every individual,” said Attorney General Eric Holder. “From our work to empower Indian women under the landmark Violence Against Women Reauthorization Act, to the task force we established to safeguard children in Indian country from violence and abuse, we have made significant strides – in close partnership with tribal nations – to bolster the safety and security of all American Indian and Alaska Native communities. As we move forward, we will continue to expand on this critical work; to deepen our ongoing efforts; and to reaffirm our dedication to the promise of equal rights, equal protection, and equal justice for all.”
Although declination rates are an imperfect means of evaluating the effectiveness of criminal justice in Indian country or elsewhere, the report shows that with few exceptions, areas where the largest populations of American Indian people live and suffer from the most serious crime rates, such as the Southwest and the northern plains states (which together handled approximately 70 percent of the 2,542 cases resolved in 2013), federal declination rates were the lowest in the nation. For instance, South Dakota had the second to highest number of cases resolved in the country last year, 470 cases, and one of the lowest declination rates of 26 percent. Arizona resolved the highest number of cases, 733 cases, and had a declination rate of 28 percent.
Associate Attorney General Tony West announced the findings in remarks to the Four Corners Indian Country Conference today on the Navajo Nation in Flagstaff, and met separately with the Attorney General’s advisory subcommittee on Native American issues to discuss the report, among other matters.
“We are witnessing an unprecedented era of collaboration among U.S. Attorneys’ offices and tribal law enforcement and prosecutors across the country,” said Associate Attorney General West. “This report shows the fruits of this continuing partnership between the federal government and American Indian tribes, including enhancing training and capacity building for tribal court systems and improving responses to victims in Indian country.”
“Over the past five years, the Justice Department and our tribal partners have taken important steps forward on our journey toward a safer Indian Country,” said Timothy Purdon, U.S. Attorney for the District of North Dakota and chair of the Attorney General’s advisory subcommittee on Native American issues. “Vigorous enforcement of federal laws is vitally important to strengthening public safety on American Indian reservations. We are pleased to see in this report that U.S. Attorney’s Offices across the country continue to work hard to remove the most dangerous offenders and work closely with tribal law enforcement and prosecutors. These promising numbers are the direct result of this enhanced communication and collaboration.”
“The FBI continues to be committed to public safety in Indian Country,” said FBI Assistant Director Joseph S. Campbell. “Our partnership with federal, state, local, and tribal agencies remains strong as we continue to aggressively address violent crime and victimization in tribal communities.”
The information contained in the report shows the following:
- The Justice Department’s prioritization of Indian country crime has continued to result in substantial numbers of prosecutions, despite resource constraints that impacted the U.S. Attorney community in 2013. Between FY 2009 and FY 2012, the number of cases the department filed against defendants in Indian country increased nearly 54 percent. In FY 2013, due to fiscal challenges, overall case filings in Indian country declined somewhat compared to FY 2012, but still remained 34 percent above the number of cases filed when the department first began its department-wide tribal justice initiative in 2009. Notwithstanding the fiscal impact of the sequester, reduced budgets, and a hiring freeze, federal agents and prosecutors continued to focus their efforts on improving public safety in Indian country.
- A substantial majority of Indian country criminal investigations opened by the FBI were referred for prosecution.
- A substantial majority of Indian country criminal cases opened by the United States Attorneys’ Offices were prosecuted.
- USAO data for CY 2013 show that 34 percent (853) of all Indian country submissions for prosecution (2,542) were declined for prosecution. In CY 2012, USAOs declined approximately 31 percent (965) of all (3145) Indian country submissions for prosecution. USAO data for CY 2011 indicate that just under 37 percent (1,041) of all Indian country submissions for prosecution (2,840) were declined.
- The most common reason for declination by USAOs was insufficient evidence (56 percent in CY 2013, 52 percent in CY 2012, and 61 percent in CY 2011).
- The next most common reason for declination by USAOs was referral to another prosecuting authority (21 percent in CY 2013, 24 percent in CY 2012, and 19 percent in CY 2011).
The most common reason FBI Indian country investigations were closed administratively without referral for prosecution was that the investigation concluded that no federal crime had occurred.
- For instance, all but 30 of the 164 death investigations the FBI closed administratively in CY 2013 were closed because the FBI established that the death was due to causes other than homicide – i.e., accidents, suicide, or death from natural causes.
Other important developments in FY 2013:
VAWA Pilot Projects
The fight against domestic violence in Indian country has been an especially important priority for the Department of Justice, and in 2013, Congress and this administration took an historic step forward with the passage of the Violence Against Women Reauthorization Act of 2013 (VAWA 2013), which the President signed into law on March 7, 2013.
Congress, in VAWA 2013, provided new tools to fight domestic violence in Indian country, and the department spared no time utilizing them. From the date the act took effect, March 7, 2013, through the end of fiscal year 2013, U.S. Attorneys with prosecutorial responsibilities in Indian country have charged defendants with the amended provisions of the federal assault statutes that strengthened penalties for domestic assault offenses, such as strangulation and stalking. And, while the new law’s tribal criminal jurisdiction provision takes effect generally on March 7, 2015, under VAWA 2013’s “Pilot Project” provisions, the department recently approved three tribes’ applications voluntary “Pilot Project” to begin exercising special domestic violence criminal jurisdiction sooner. These tribes – the Pascua Yaqui Tribe of Arizona, the Umatilla Tribes of Oregon, and the Tulalip Tribes of Washington – will be the first tribes in the nation to exercise special criminal jurisdiction over crimes of domestic and dating violence, regardless of the defendant’s Indian or non-Indian status, under VAWA 2013.
Strengthening Partnerships and Support for Tribal Self-Governance
Strengthening partnerships and tribal self-governance was a major theme of the Attorney General’s message to tribal leaders on Nov.13, 2013, at the White House Tribal Nations Conference, where he announced a proposed statement of principles to guide the department’s work with federally recognized tribes. As the Attorney General said, “ As a result of these partnerships – and the efforts of everyone here – our nation is poised to open a new era in our government-to-government relationships with sovereign tribes.”
U.S. Attorneys’ offices around the country are engaged in an unprecedented level of collaboration with tribal law enforcement, consulting regularly with them on crime-fighting strategies in each district. One important example of this is the department’s enhanced Tribal Special Assistant U.S. Attorney (SAUSA) program. Tribal SAUSAs are cross-deputized tribal prosecutors who are able to prosecute crimes in both tribal court and federal court as appropriate. These Tribal SAUSAs serve to strengthen a tribal government’s ability to fight crime and to increase the USAO’s coordination with tribal law enforcement personnel. The work of Tribal SAUSAs can also help to accelerate a tribal criminal justice system’s implementation of TLOA and VAWA 2013.
Read the entire report at www.justice.gov/tribal/tloa.html
Read about the Justice Department’s efforts to increase public safety in Indian County at www.justice.gov/tribal/accomplishments.html
David Glynn Pleads Guilty to Defrauding Timeshare OwnersRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that a Charleston man pled guilty yesterday in federal court in Charleston to conspiring to defraud timeshare owners throughout the United States and Canada. David Andrew Glynn, 47, admitted that he set up a bogus company named Mountain State Resales, LLC (MSR) that was purportedly in the business of brokering timeshare sales. Glynn, and others, contacted timeshare owners and advised them that MSR had buyers for their the timeshares, and asked owners to pay fees and expenses necessary to complete the sales. Timeshare owners were directed to send the requested payments to MSR in South Charleston, West Virginia.
Glynn also contacted timeshare owners who had been victims of prior fraud schemes and posed as an agent with “Internal Revenue Recovery Associates,” a fictional entity that he claimed was affiliated with a governmental agency. Glynn represented that he was investigating timeshare fraud schemes, and needed the victims of such schemes to send money to MSR to assist with its recovery efforts.
During the guilty plea hearing, Glynn admitted that MSR was not a legitimate business, and was created to defraud owners of timeshare companies. He also admitted that MSR received more than $86,000 from the fraud scheme. As part of the plea agreement, Glynn will be required to make full restitution. Sentencing is scheduled for November 24, 2014.
The investigation of this case was conducted by the West Virginia State Police, the Federal Bureau of Investigation, and the United States Postal Inspection Service. Assistant United States Attorney Meredith George Thomas is handling the prosecution.
DME Owner Heads to Prison for Multiple Counts of Health Care FraudRead the Press Release
HOUSTON – Andrea Michelle Tellison, 47, has been ordered to federal prison for eight years following her convictions of 14 counts of health care fraud and seven counts of aggravated identity theft, announced United States Attorney Kenneth Magidson. A jury convicted Tellison April 2, 2014, following three days of trial and less than two hours of deliberation.
Crabtree Sentenced for Securities Fraud in Connection with Investment Fraud SchemeRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Gregory L. Crabtree, 53, of Procterville, Ohio, was sentenced to sixty months imprisonment and $20,128,570.23 in restitution today in Athens, Georgia, by Chief United States District Court Judge C. Ashley Royal as the result of Mr. Crabtree’s participation in a “Ponzi” or investment scheme which took place between 2007 and 2010.Crabtree and a codefendant were originally charged in an eighty-five count indictment resulting from an investment fraud or “Ponzi” scheme in which investors were told that their money would be used to purchase surplus merchandise at a large discount from national retailers. These goods were then to be sold at a large profit to other wholesale buyers for resale. In fact, the scheme was a fraud and investors were actually paid purported returns out of funds collected from other investors. Over fifty investors lost a combined total of almost $23,000,000. A total of over $80,000,000 had been invested overall in the scheme.
Crabtree pled guilty to one count of securities fraud on April 7, 2014. He cooperated with prosecutors and testified at the trial of his co-defendant, who was acquitted.
This case was prosecuted by Assistant United States Attorneys Paul C. McCommon and G. F. “Pete” Peterman, III of the United States Attorney’s Office. The investigation was conducted jointly by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigation.
Questions regarding this matter should be directed to Karen Moore of the United States Attorney’s Office for the Middle District of Georgia (478/621-2606; [email protected])Court Orders Circle C Construction, Llc to Pay $762,894 for Violating the False Claims ActRead the Press Release
NASHVILLE, Tenn. August 26, 2014 ? U.S. District Judge Kevin H. Sharp ordered Circle C Construction, LLC to pay $762,894.54 to the United States for False Claims Act violations connected with a construction contract at Fort Campbell military base, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Circle C is a construction contractor based in Kentucky.
The United States originally intervened in the lawsuit against Circle C in 2007. U.S. District Court Judge William J. Haynes entered summary judgment on both liability and damages for the United States in 2010. Following an appeal, the Sixth Circuit Court of Appeals in 2012 upheld Judge Haynes’ liability decision, finding that Circle C had submitted false payroll certifications to Fort Campbell that falsely claimed that Circle C was paying the required prevailing wages, under the Davis-Bacon Act, to workers on Circle C’s construction contract at Fort Campbell, when Circle C was not actually paying those wages to the workers of its electrical subcontractor, Phase Tech. The Court of Appeals reversed Judge Haynes’ original damages award in the case and remanded the case for a new trial on damages.
In March 2014, the parties tried the damages issue before Judge Sharp. On August 22, 2014, Judge Sharp announced his decision awarding $762,894.54 to the United States in the case. Specifically, Judge Sharp found that government paid Circle C $259,298.18 for the electrical portion of the affected buildings constructed by Circle C. This amount constituted the United States’ damages in this case, according to Judge Sharp, since “the government would not have paid Circle C for this work if it had known at the time that Circle C was violating the Davis-Bacon Act”.
Because violators of the False Claims Act are subject to three times the government’s actual damages, Judge Sharp trebled the $259,298.18 figure and awarded a total of $762,894.54 to the government as damages.
“This court decision signals that the United States will continue to pursue federal contractors that defraud the United States,” said U.S. Attorney David Rivera. “Judgments like this one are important, because they confirm that the government is entitled to get the benefit of its bargain on federal contracts, which includes knowing that those contractors will pay the prevailing local wages to workers on federal projects.”The investigation of this case was conducted by the Department of Labor- Office of Inspector General, and the Defense Criminal Investigative Service. The government was represented by Assistant U.S. Attorney Ellen Bowden McIntyre.
The case is docketed as United States ex rel. Brian Wall v. Circle C Construction, LLC, No. 3:07-cv-91 (M.D. Tenn.).
Collin County Man Arrested for Smith County Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 37-year-old McKinney, Texas man has been arrested in connection with a bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Daniel River Burson was arrested on Aug. 25, 2014 pursuant to a criminal complaint issued by the U.S. District Court charging him with bank robbery. Burson had an initial appearance before U.S. Magistrate Judge John D. Love today and will have a detention hearing on Aug. 29, 2014.According to information presented in court, on Aug. 11, 2014, Burson is alleged to have robbed the Capitol One Bank on New Copeland Road in Tyler. A joint investigation with the Federal Bureau of Investigation and the Tyler Police Department led to the identity of Burson.
If convicted, Burson faces up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Tyler Police Department and prosecuted by Assistant U.S. Attorney Jim Middleton.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
####Cedar Grove Man Pleads Guilty to Unlawful Concealment of A FirearmRead the Press Release
CHARLESTON, W. Va. - Reginald Bennett, 40, of Cedar Grove, West Virginia pleaded guilty today to unlawful concealment of a firearm announced United States Attorney Booth Goodwin. In September of 2013, Bennett was stopped by the Charleston Police Department for a traffic violation. During the stop, officers discovered a .38 caliber Colt revolver in Bennett’s possession. Bennett was prohibited from possessing any gun because of a prior felony conviction. After his arrest and release, Bennett removed a Ruger M77 rifle from his home in Cedar Grove, and hid it in a home in South Charleston to prevent law enforcement officers from finding it. The rifle was discovered when a federal search warrant was executed at the South Charleston residence.
Bennett faces a maximum penalty of 20 in prison when he is sentenced on December 11, 2014. As part of his plea, Bennett agreed to forfeit both the revolver and the rifle.
The United States Bureau of Alcohol Tobacco and Firearms and the Charleston Police Department conducted the investigation. Assistant United States Attorney Erik S. Goes is prosecuting the matter on behalf of the United States.
Carbon County Man Charged with Robbing Philadelphia BusinessesRead the Press Release
William Robinson, 35, of Jim Thorpe, PA, was charged today by indictment with the June 26, 2014 robberies of a Pizza Hut and a 7-Eleven store in Philadelphia, announced United States Attorney Zane David Memeger. Robinson is charged with two counts of robbery which interferes with interstate commerce, two counts of using and carrying a firearm during a crime of violence, and one count of being a convicted felon in possession of a firearm.
If convicted the defendant faces a maximum possible sentence of life imprisonment, with a mandatory minimum 32 years’ imprisonment, a $1.25 million fine, five years’ supervised release, and a $500 special assessment.
The case was investigated by Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia County District Attorney's Office and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bullhead Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Steven Whiteman, Jr., age 44, was indicted on July 15, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on August 15, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum period of supervised release of at least 5 years, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 9, 2014, and May 25, 2014, Whiteman, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration while residing in South Dakota.
The charge is merely an accusation and Whiteman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Whiteman was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for October 21, 2014.
Associate Attorney General West Announces $3 Million in Grants to Address Violence Against Women in Rural and Tribal Communities in the Bakken RegionRead the Press Release
Associate Attorney General Tony West today announced $3 million dollars in grants from the Office on Violence Against Women (OVW) to increase local and tribal capacity to prosecute crimes of violence against women and provide services to victims of sexual assault, domestic violence and stalking in the Bakken Region of North Dakota and Montana.
Associate Attorney General West made the announcement at the Four Corners Indian Country Conference today taking place on the Navajo Nation near Flagstaff, Arizona. The grants are part of the Justice Department’s ongoing commitment to protecting women from violence and strengthening the capacity of communities to respond to domestic and sexual violence.
OVW’s Bakken Region special initiative launched in April 2014 and is the first large scale project targeting resources to support the expansion of services to victims of sexual assault, domestic violence and stalking as well as aid the local criminal justice system in responding to these crimes in the Bakken region.
“Victims of sexual assault, domestic violence, and stalking living in a vast rural region like the Bakken face unique challenges in accessing critical, life-saving services,” said Associate Attorney General Tony West. “With this new, targeted funding, tribes and local communities will be better equipped to respond to the increased need for mental health services, legal assistance, housing, and training.”
The five grantees supported by OVW’s Bakken Region Initiative are: Fort Peck Assiniboine and Sioux Tribes, Poplar, Montana; First Nations Women’s Alliance, Devils Lake, North Dakota; Montana Coalition Against Domestic and Sexual Violence, Helena, Montana; North Dakota Council on Abused Women’s Services, Bismarck, North Dakota; and Three Affiliated Tribes of the Fort Berthold Reservation, New Town, North Dakota.
With Justice Department funding these grantees will be able to enhance responses to domestic violence, dating violence, sexual assault, and stalking, and expand mental health counseling, advocacy, legal assistance, prevention education, sexual assault forensic examiner programs, Sexual Assault Response Teams, and law enforcement training.
In addition, the Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation in Montana and the Three Affiliated Tribes of the Fort Berthold Reservation in North Dakota are each receiving a three-year $450,000 grant to support the salary, travel, and training costs of a tribal prosecutor, who will be cross-designated to serve as a tribal Special Assistant United States Attorney (SAUSA) in the local U.S. Attorney’s Office.
“OVW grant funds have made a marked difference in the lives of countless victims and survivors, and we are eager to provide dedicated funding that will support desperately needed services,” said Bea Hanson, OVW’s Principal Deputy Director. “These grants represent the Department’s recognition that to combat violence against women, especially in Indian country, we must be responsive to emerging issues.”
For more information on OVW and its programs, please visit: www.justice.gov/ovw .
Arkansas Woman Sentenced to Prison for Defrauding Monterey Bay Aquarium Research InstituteRead the Press Release
SAN JOSE – Lisa McMahon was sentenced yesterday to 19 months in prison and ordered to pay $798,469.20 in restitution for wire fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
McMahon pleaded guilty on March 31, 2014, to one count of defrauding the Monterey Bay Aquarium Research Institute (MBARI), in violation of Title 18, United States Code, Section 1343. MBARI is a non-profit center for advanced research and education in ocean science and technology located in Moss Landing, Calif., and supported in part by federal funding. Defendant was employed at MBARI as a payroll specialist with responsibilities concerning the payment of wages, 401(k) contributions and loans for MBARI employees. According to the defendant’s admissions in court, from at least 2005 until January of 2012 she devised and executed a scheme to defraud MBARI by altering payroll and 401(k) records to cause and conceal fraudulent payments to her personal accounts. Defendant caused the transfer of approximately $800,000 of MBARI funds to her personal accounts without the authorization or knowledge of her employer.
The sentence was handed down by the Honorable Edward J. Davila, United States District Court Judge in San Jose. Judge Davila also sentenced the defendant to a three-year period of supervised release. As a condition of her sentence defendant is prohibited from maintaining a position of fiduciary capacity without the prior permission of her probation office, and from having any contact with the victim MBARI.
Philip A. Guentert is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
(McMahon indictment )
Apollo Man Admits Defrauding Dominion GasRead the Press Release
PITTSBURGH - A resident of Apollo, Pa., pleaded guilty in federal court to a charge of conspiracy to commit mail fraud, United States Attorney David J. Hickton announced today.
David Hilty pleaded guilty to one count before United States District Judge Mark Hornak.
According to information presented to the Court, Hilty devised a scheme to defraud Dominion Gas in which he falsified the quantity of gas being extracted through wells he owned.
Judge Hornak scheduled sentencing for January 7. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Michael A. Comber is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of David Hilty.
Angelina County Man Guilty in Wire Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 39-year-old Lufkin, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Andy Lee House pleaded guilty to an Information charging him with wire fraud today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, in October 2009, House purchased a 2006 Bugatti Veyron for $1 million and had it insured for $2.2 million. On Nov. 11, 2009, House drove the vehicle into the Gulf Bay near La Marque, Texas, and upon exiting the Bugatti, left the motor running, resulting in the engine taking on large amounts of salt water which destroyed the vehicle. House reported to first responders he was reaching for his cell phone when he swerved and accidently drove into the bay. On Nov. 12, 2009, House called the insurance company and filed a $2.2 million claim on the Bugatti. However, House did not know that another motorist had videoed the accident, including the moment House drove the vehicle into the water, and then posted the video to YouTube.
House faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Federal Bureau of Investigation, the Lufkin Police Department, the Texas Rangers, the Department of Public Safety-Criminal Investigation Division, and the Nacogdoches Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
###Albuquerque Woman Pleads Guilty to Participating in Scheme to Smuggle Drugs into Otero County PrisonRead the Press Release
ALBUQUERQUE – Ana Lopez, 24, of Albuquerque, N.M., pleaded guilty in federal court in Las Cruces yesterday afternoon to an indictment charging her with conspiracy to distribute methamphetamine and heroin. In entering her guilty plea, Ana Lopez admitted participating in a conspiracy to smuggle drugs into the Otero County Prison Facility (OCPF) between Dec. 2013 and April 2014.
Lopez was one of six individuals charged in April 2014, in a criminal complaint with conspiracy to violate the federal narcotics laws by smuggling controlled substances into the OCPF. The other defendants charged with participating in the conspiracy were Luis Delgadillo, 37, of El Paso, Texas, who was then employed as a corrections officer at OCPF, Nancy Salas, 35, of Alamogordo, N.M., and three OCPF inmates, Eric Lovato, 30, of Boles Acres, N.M., and Armando Lopez, 27, and Gary Borja, 26, both of Albuquerque. All six defendants subsequently were indicted on a conspiracy to distribute methamphetamine and heroin charge on Aug. 20, 2014.
According to court filings, the FBI initiated an investigation into the case in Jan. 2014, after receiving information from the New Mexico Corrections Department allegedly showing that Delgadillo was smuggling heroin and methamphetamine into the OCPF. The investigation, which included a review of recorded inmate telephone calls and OCPF surveillance video, physical surveillance and the results of inmate drug testing, identified the six defendants as members of a conspiracy who allegedly smuggled narcotics into the OCPF between Jan. 2014 and April 2014.
In her plea agreement, Ana Lopez admitted participating in a conspiracy to smuggle drugs into the OCPF. The plea agreement states that Ana Lopez was recruited to help smuggle drugs into the prison in Jan. 2014. Ana Lopez admitted delivering an ounce of heroin in Feb. 2014 and again in March 2014, to a person knowing that the person would give it to a corrections officer who would smuggle the heroin into the prison. Ana Lopez also admitted that on April 26, 2014, she met with the corrections officer and gave him 25 grams of methamphetamine, 11 grams of heroin and 10 suboxone pills so he could smuggle the drugs into the prison.
At sentencing, Ana Lopez faces a statutory maximum penalty of 20 years in prison. She remains in federal custody pending her sentencing hearing, which has yet to be scheduled.
The five co-defendants have entered not guilty pleas to the indictment. All five are in federal custody pending trial, which has yet to be scheduled. Charges in criminal complaints and indictments are merely accusations and criminal defendants are presumed innocent unless convicted in a court of law.
This case was investigated by the Las Cruces office of the FBI and the New Mexico Corrections Department and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Accountant Sentenced to Probation with Home Detention for Fraud SchemesRead the Press Release
ERIE, Pa. - A resident of Erie, has been sentenced in federal court to 4 years probation, 12 months home detention and ordered to make restitution in the amount of $11,471.34 on her conviction of wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Julie A. Wozniak, 34.
According to information presented to the court, from March 2013 to June 2013, Julie A. Wozniak devised a scheme to defraud St. Vincent’s hospital and Hilltop Beer by abusing her position as an accountant. Wozniak utilized a Saint Vincent’s purchasing card and made 62 separate unauthorized purchases for her own personal benefit and use, in the total amount of approximately $47,521.03, and increased the credit limit on the purchasing card from $12,000.00 to $30,000.00 in order to increase the volume of unauthorized purchases she was able to make. Wozniak also fabricated St. Vincent’s accounting records for the purchasing card, thereby concealing the unauthorized purchases she had made. Further, Wozniak utilized her access to St. Vincent’s bank accounts and made 22 unauthorized Automated Clearing House (ACH) debits from Saint Vincent’s operating bank account at M&T bank, in an additional amount of approximately $32,940.65.
In addition to the fraud against St. Vincent’s, the court was advised that Wozniak operated a private accounting business called “Keeping You Balanced” and used her position as an accountant to steal money from Hilltop Beer. Wozniak advised the owner of Hilltop Beer how much money she needed to have transferred into the Hilltop Beer payroll bank account in order for her to make payroll tax payments. After transfers of those amounts would be made to the payroll account, the defendant, without the knowledge or consent of the owner of Hilltop Beer, would write checks to herself from the payroll account in the amount that was supposed to be paid to the IRS for the payroll taxes of Hilltop Beer. In order to conceal the payroll account funds she had unlawfully taken from Hilltop Beer and had not paid to the IRS, Wozniak made ACH debits from St. Vincent’s operating bank account with S&T bank, and paid the payroll taxes for Hilltop Beer out of the St. Vincent’s account.
Finally, Wozniak used her access and authority over St. Vincent’s bank account at First Niagara and made 9 ACH debits to pay on her personal Capital One credit card accounts and her personal Amazon credit account in an additional amount of $10,778.69.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Wozniak.
25 August 2014
Venango County Man Falsified Certificates Related to Plugging Abandoned Oil WellsRead the Press Release
ERIE, Pa. - A resident of Pleasantville, Pennsylvania, pleaded guilty in federal court to a charge of making false statements in matters relevant to permits issued under the Safe Drinking Water Act, United States Attorney David J. Hickton announced today.
Ronald A.Wright, 45, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that between in and around September 2009, to in and around April 2011, Wright falsified certificates of well plugging, falsely claiming that he had properly plugged abandoned oil wells, when he had not properly done so. These forms were relied upon by the EPA in regard to permits issued for Class II injection wells. These injection wells were to be used for the injection of oil production brine fluid and for the enhanced recovery process of oil extraction. The approval process for these injection wells required all abandoned wells within a quarter mile of the injection well site to have first been properly plugged. On January 12, 2012, inspectors with the Environmental Protection Agency (EPA), were on site to conduct a mechanical integrity test of the injection well when it was discovered that injected fluid had entered the bottom of an abandoned well because it had not been properly plugged to the bottom. According to the information presented in court, further investigation revealed that many of the wells that were plugged by Wright were not plugged as he claimed in the certificates of well plugging. In some instances, the certificates of well plugging falsely claimed that wells were properly plugged at depths greater than 2,000 feet when, in fact, the wells were only plugged at depths of less than 1,000 feet. According to the information presented in court, the discovery of Wright’s falsification of the plugging reports has required the re-inspection, and likely re-drilling and re-plugging, of 95 wells.
“Documents submitted to the government must be accurate and honest,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program in the Middle Atlantic states. “False reporting can seriously jeopardize environmental and public health protection. EPA and its law enforcement partners are committed to holding violators accountable to support our shared commitment to protect American communities. Today’s guilty plea further exemplifies our successful collaborative efforts with the U.S. Forest Service and the Pennsylvania Attorney General’s office.”
Judge Cercone scheduled sentencing for December 22, 2014 at 1:30 p.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Wright on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Environmental Protection Agency - Criminal Investigation Division, the Pennsylvania Office of Attorney General – Environmental Crimes Section, and the U.S. Forest Service – Law Enforcement and Investigations conducted the investigation that led to the prosecution of Wright.
Utah Businessman Indicted for Unlicensed Dealing in Firearms, Smuggling U.S. Goods and Filing False Tax ReturnsRead the Press Release
Adam Michael Webber, of Salt Lake County, Utah, was indicted on Friday by a federal grand jury in the District of Utah, the Justice Department announced. The indictment, which was made public today, charges Webber with one count of dealing in firearms without a license, one count of smuggling goods from the United States and six counts of filing false tax returns.
According to the indictment, no later than 2007, Webber established a business that sold firearms and firearms’ parts and accessories, largely through the Internet. The business operated under the name HK Parts, using the website www.hkparts.net , and was solely owned and operated by Webber. In 2009, Webber incorporated the business as HK Parts Inc., which used the same website. Webber was the sole shareholder of HK Parts Inc.
According to the indictment, on or about June 20, 2007, Webber signed a stipulated settlement agreement with the United States in which he agreed never to apply for a federal firearms license or be a responsible person for any federal firearms licensee or business, and that he would not engage in the business of manufacturing, importing or dealing in firearms. However, during the years 2007 through 2012, Webber individually and through HK Parts and HK Parts Inc., sold firearms and firearms parts and accessories.
Webber is charged with filing false individual income tax returns for 2007 through 2010, which underreported the gross receipts of the business, and with filing false income tax returns for an S Corporation for 2009 and 2010, which also underreported the gross receipts of the business.
A trial date has not been scheduled. If convicted, Webber faces a statutory maximum sentence of 33 years in prison and may be subject to fines.
This case was investigated by IRS-Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being jointly prosecuted by the U.S. Attorney’s Office for the District of Utah and the Justice Department’s Tax Division.
An indictment merely alleges that a crime has been committed and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Related Materials:
United States v. Adam Michael Webber
Indictment
Exhibit AU.S. Citizen Extradited from the Netherlands Sentenced to 35 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
A U.S. citizen living in Amsterdam, Netherlands, was sentenced today to serve 35 years in prison for sexually exploiting a minor in California and elsewhere and producing images of that abuse.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Benjamin B. Wagner of the Eastern District of California and Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division made the announcement.
Christopher David Robinette, 44, pleaded guilty on April 21, 2014, to eight counts of sexual exploitation of a minor and one count of transporting a minor in interstate or foreign commerce for purposes of engaging in criminal sexual activity. According to court documents, between September 2004 and August 2006, Robinette traveled to Fresno, California, to sexually exploit a minor and produce digital still and video images of the abuse. The sexual abuse took place in California, including the Fresno area, as well as in Nevada, Mexico and Costa Rica. Robinette’s crimes were detected shortly after he uploaded images of child pornography, including images he produced, to a Microsoft SkyDrive account.
In addition to his prison sentence, Senior U.S. District Judge Anthony W. Ishii of the Eastern District of California, ordered Robinette to serve a lifetime of supervised release following his prison term, during which his access to computers, the Internet and minors will be restricted, and he will be obligated to register as a sex offender.
This case was investigated by the FBI’s Sacramento Division and FBI in The Hague, Netherlands, with assistance from the Korps Landelijke Politie Diensten (Dutch National Police), the Amsterdam Amstelland Police Department (Amsterdam local police), and the Fresno Police Department. The National Center for Missing & Exploited Children assisted in coordinating information for a law enforcement response. The case was prosecuted by Trial Attorney Maureen Cain of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Gappa of the Eastern District of California.
The Department of Justice’s Office of International Affairs and CEOS, as well as the Dutch Ministry of Security and Justice, assisted in coordinating Robinette’s extradition to Fresno. The U.S. Marshals Service returned Robinette to Fresno, and he has been detained as a flight risk and danger to the community since his initial court appearance on Dec. 26, 2012.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
U.S. Citizen Extradited from the Netherlands Sentenced to 35 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
FRESNO, Calif. — A U.S. citizen living in Amsterdam, Netherlands, was sentenced today to serve 35 years in prison for sexually exploiting a minor living in California and producing images of that abuse.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Benjamin B. Wagner for the Eastern District of California and Acting Assistant Director in Charge Timothy Gallagher of the FBI’s Washington Field Office made the announcement.
Christopher David Robinette, 44, pleaded guilty on April 21, 2014, to eight counts of sexual exploitation of a minor and one count of transporting a minor in interstate or foreign commerce for purposes of engaging in criminal sexual activity. According to court documents, between September 2004 and August 2006, Robinette traveled to Fresno, California, to sexually exploit a minor and produce digital still and video images of the abuse. The sexual abuse took place in California, including the Fresno area, as well as in Nevada, Mexico and Costa Rica. Robinette’s crimes were detected shortly after he uploaded images of child pornography, including images he produced, to a Microsoft SkyDrive account. Robinette was extradited from the Netherlands to face charges in the Eastern District of California.
At sentencing before Senior U.S. District Judge Anthony W. Ishii of the Eastern District of California, Robinette was ordered to serve a lifetime term of supervised release, during which his access to computers, the Internet and minors will be restricted, and he will be obligated to register as a sex offender.
“Protecting the most vulnerable Americans is a national Department of Justice priority,” said U.S. Attorney Wagner. “None are as vulnerable as our children, and this office will continue to pursue those who abuse and exploit them even if that pursuit takes us to other continents. The harshest penalties are reserved for the most severe criminal conduct, and Mr. Robinette’s conduct fully warranted the lengthy prison sentence imposed today.”
“Robinette’s sentence ensures that he cannot victimize another child, but no sentence can erase the crimes that have occurred or restore his victim’s stolen innocence. No child should ever be victimized by such abuse and exploitation,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Field Office. “We thank all of our law enforcement partners including the Fresno Police Department, a member of the Fresno Child Exploitation Task Force, for their assistance with this investigation and continued partnership.”This case was investigated by the FBI’s Washington Field Office, FBI’s Sacramento Division, and FBI in The Hague, Netherlands, with assistance from the Korps Landelijke Politie Diensten (Dutch National Police), the Amsterdam Amstelland Police Department (Amsterdam local police); and the Fresno Police Department. The National Center for Missing & Exploited Children assisted in coordinating information for a law enforcement response. The case was prosecuted by Trial Attorney Maureen Cain of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Gappa of the Eastern District of California.
The U.S. Department of Justice’s Office of International Affairs and CEOS, as well as the Dutch Ministry of Security and Justice, assisted in coordinating Robinette’s extradition to Fresno. The U.S. Marshals Service returned Robinette to Fresno, and he has been detained as a flight risk and danger to the community since his initial court appearance on December 26, 2012.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Two Wheeling Residents Convicted on Painkiller Distribution ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
WHEELING, WEST VIRGINIA – Two individuals involved in a large prescription painkiller trafficking ring entered pleas of guilty on Monday in Federal court, according to United States Attorney William J. Ihlenfeld, II.
Lucas N. HIGH, age 37, of Wheeling, entered a plea of guilty to the felony offense of “Conspiracy to use a Telephone to Facilitate the Distribution of Cocaine, Oxycodone and Buprenorphine.” HIGH’s criminal conduct occurred between October of 2012 and January of 2014 in the Wheeling area. He is free on bond and faces up to 4 years in prison when sentenced.
Cara OLAKO a/k/a Cara Green, age 36, of Wheeling, entered a plea of guilty to “Aiding and Abetting the Distribution of Cocaine within 1,000 feet of the Patterson Playground.” The transaction that OLAKO admitted to occurred in July of 2013. She is free on bond and faces up to 40 years in prison.
HIGH and OLAKO are part of group of fifteen people indicted in February after a sixteen month investigation into the distribution of oxycodone and other prescription drugs that came to the area from northern Ohio and Detroit, Michigan. Over the course of the investigation thousands of pills were recovered by agents via controlled purchases and court-authorized searches.
Assistant U.S. Attorney John C. Parr handled the cases on behalf of the government. U.S. District Judge Frederick P. Stamp, Jr., presided.
These matters were investigated by the Ohio Valley Drug Task Force, which includes officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police-BCI, and the U.S. Drug Enforcement Administration. The Ohio Valley Drug Task Force is an Appalachia HITDA-funded initiative.Two Men Charged in Connection with Murder in Chautauqua CountyRead the Press Release
BUFFALO, N.Y. – United States Attorney William J. Hochul, Jr. announced today that JONATHAN CONKLIN, 43, and CHARLES SANFORD, 30, were arrested on August 22, 2014 and charged in a federal criminal complaint with carjacking, use of a firearm and transportation of a stolen vehicle. If convicted of the charges, the defendants face a mandatory minimum sentence of 10 years imprisonment, a maximum sentence of life imprisonment, and a fine of $250,000.
According to Assistant United States Attorney Timothy C. Lynch, who is handling the prosecution of this matter, the charges against CONKLIN and SANFORD pertain to their involvement in the robbery and murder of Mary Whitaker. The complaint alleges that on August 20, 2014, CONKLIN and SANFORD went to Mary Whitaker’s home in Sherman, New York with the intention of robbing her. Soon after Ms. Whitaker answered the door at her home, the defendants shot and killed her. Then they stole her vehicle and drove it to Erie, Pennsylvania, where they were arrested on August 22, 2014.
Both defendants were ordered detained pending a further hearing, scheduled for August 28, 2014.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. The filing of a federal criminal complaint was the culmination of an investigation on the part of the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Chautauqua County District Attorney’s Office, under the direction of District Attorney David W. Foley, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the City of Erie (Pennsylvania) Police Department, under the direction of Chief Randy M. Bowers.Two Indicted in Scheme Using Stolen Checks to Commit Mail Fraud and Bank FraudRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, todayannounced that a federal grand jury in New Haven has returned a 13-count indictment charging DAYQUAN JACKSON, 26, of Bridgeport, and ERIC WATKINS, 25, of Stratford, with theft of mail, mail fraud, bank fraud, and conspiracy in connection with a stolen check scheme. The indictment was returned on August 20, 2014. JACKSON and WATKINS were arrested and presented on August 22, 2014, at which time the indictment was unsealed, JACKSON was ordered detained in federal custody, and WATKINS was released on a set of conditions.
According to the indictment, the scheme arose out of the theft of mail by JACKSON and others from residences in Fairfield County throughout 2013 and 2014, the purpose of which was to obtain either blank checks or credit card “convenience checks.” JACKSON and WATKINS then used the stolen checks in two separate ways. First, JACKSON and WATKINS used the stolen checks to purchase vehicles—cars, motorcycles, and all-terrain vehicles—listed for sale on the Internet from unsuspecting victims in surrounding states. Second, JACKSON provided the stolen checks to “runners” to deposit in the runners’ accounts and then JACKSON withdrew money from the runners’ accounts.
If convicted, JACKSON and WATKINS face a maximum term of imprisonment of 20 years and a fine of up to $250,000 on each count of mail fraud. If convicted of conspiracy to commit mail fraud and bank fraud, JACKSON and WATKINS face a maximum term of imprisonment of 30 years and a fine of up to $1 million. JACKSON also faces a maximum term of imprisonment of 5 years and a fine of up to $250,000 in connection with one count of theft of mail and a maximum term of imprisonment of 30 years and a fine of up to $1 million on each count of bank fraud.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Postal Inspection Service, with substantial assistance from the Connecticut Financial Fraud Task Force, and the Greenwich, Fairfield, Wilton, and Bridgeport Police Departments, as well as law enforcement in New Hampshire. The case is being prosecuted by Assistant U.S. Attorney Marc Silverman and Special Assistant U.S. Attorney Charles L. Rombeau.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Two Convicted on Federal Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA – Two people have been convicted of Federal drug charges, according to United States Attorney William J. Ihlenfeld, II.
Dorothy Ellen METZ, age 61, of Athens, Georgia, entered a plea of guilty to “Possession with Intent to Distribute Oxycodone” in Randolph County, West Virginia. METZ is free on bond pending sentencing and faces up to 20 years in prison. This case was investigated by the Mountain Region Drug & Violent Crimes Task Force.
Beth Harman OURS, age 46, of Petersburg, West Virginia, entered a plea of guilty to “Distribution of Diazepam.” OURS is in custody pending sentencing and faces up to 5 years in prison. This case was investigated by the Potomac Highlands Drug & Violent Crime Task Force.
The cases were prosecuted by Assistant U.S. Attorney Stephen D. Warner. U.S. Magistrate Judge John S. Kaull presided.Three Individuals Found Guilty in Manhattan Federal Court of the 2010 Murder of Jeffrey Henry in Newburgh, New YorkRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RAYMOND CHRISTIAN, GLENN THOMAS, and TYRELL WHITAKER were found guilty last Friday in Manhattan federal court of the December 15, 2010, murder of Jeffrey Henry. Jeffrey Henry was killed when the defendants attempted an armed robbery of individuals selling crack cocaine from an apartment located at 54 Chambers Street, Newburgh, New York. CHRISTIAN, THOMAS, and WHITAKER were convicted after a three-week jury trial before U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Preet Bharara stated: “This case is the embodiment of how drug trafficking begets violence, and why we and our law enforcement partners are determined to stop both. In the mayhem of a shootout that came out of the deadly mix of drugs, guns and men bent on robbery, the defendants committed a cold-blooded murder for drugs and cash. Now they will pay the price for their crime.”
According to the Indictment filed in federal court and the evidence presented at trial:
On December 15, 2010, CHRISTIAN, WHITAKER, and THOMAS, along with at least five other individuals, participated in the gunpoint robbery of a house at 54 Chambers Street in Newburgh, New York. The house was well-known throughout Newburgh for its prolific crack cocaine trafficking. During the robbery, CHRISTIAN lost his firearm to one of the victims, which resulted in a shoot-out between robbers and victims. As the robbers attempted to flee the house, they encountered Jeffrey Henry, who had just arrived. Henry attempted to pull the door shut, to lock the robbers in the house, while calling 911. The robbers, including WHITAKER and THOMAS, were ultimately able to pry the door open and, through the opening, shoot Henry. Henry was shot twice, and died shortly thereafter.
All three of the defendants, CHRISTIAN, 21, THOMAS, 25, and WHITAKER, 20, are from Newburgh, New York. They were each found guilty of one count of robbery, one count of use of a firearm during the robbery, and one count of murder through the use of a firearm during the robbery. In addition, CHRISTIAN and THOMAS were also found guilty of one count of conspiracy to commit robbery. CHRISTIAN and THOMAS were found not guilty of one count of conspiring to distribute narcotics. The defendants each face a maximum sentence of life in prison, and a mandatory minimum sentence of 10 years of in prison. The potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the New York State Police, the Newburgh Police Department, the Orange County District Attorney’s Office, and the Orange County Sheriff’s Office.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew Bauer and Kan M. Nawaday are in charge of the prosecution.
U.S. v. Raymond Christian, et al. Indictment
South Bay Doctor Pleads Guilty in Medicare Fraud Case, Admitting He Wrote Bogus Prescriptions for Power Wheelchairs and Other DMERead the Press Release
LOS ANGELES – A Los Angeles County physician whose referrals led to more than $1.7 million in fraudulent Medicare billing pleaded guilty this afternoon to participating in a conspiracy to defraud Medicare by writing prescriptions for unneeded durable medical equipment (DME), such as power wheelchairs.
Charles Okoye, a 52-year-old Carson resident, pleaded guilty to one count of conspiracy to commit health care fraud.
Appearing before United States District Judge Michael W. Fitzgerald, Okoye admitted that he wrote prescriptions for medically unnecessary DME for patients referred to him through Adelco Medical Distributors, Inc., a Gardena-based DME supply company.
Between November 2008 and November 2011, Adelco recruited Medicare beneficiaries and took them to see Okoye, who would issue DME prescriptions – primarily for power wheelchairs – after giving the “patients” a single, cursory examination, according to Okoye’s plea agreement. Adelco then billed Medicare for providing the DME, which the beneficiaries did not want and often never used. In return for these referrals, Okoye received illegal kickbacks for every DME prescription from Adelco’s owner, Adeline Ekwebelem.
Okoye’s referrals led Adelco to submit approximately $1.7 million in fraudulent claims to Medicare, and Medicare paid Adelco more than $820,000. Okoye also fraudulently billed Medicare more than $50,000 for services he claimed to have provided to the “patients” who received unnecessary prescriptions.
Ekwebelem, 51, of Hawthorne, is also charged in the case, and she is scheduled to go on trial before Judge Fitzgerald on September 9.
The Adleco indictment charges four other defendants, three of whom have previously pleaded guilty. The final defendant is currently a fugitive.
In his plea agreement, Okoye also admitted that he engaged in a similar unlawful arrangement with another DME company, Esteem Medical Supply in Inglewood.
Okoye is scheduled to be sentenced by Judge Fitzgerald on December 8. At sentencing, Okoye faces a statutory maximum sentence of 10 years in federal prison.
As part of his guilty plea, Okoye has agreed that the California Medical Board can revoke his license to practice medicine.
The investigation into Okoye, Ekwebelem, and the others involved in Adelco’s fraudulent scheme to defraud Medicare was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation.
Release No. 14-110
Smyrna Man Sentenced for Identity Theft and Tax FraudRead the Press Release
ATLANTA - Michael Awiti has been sentenced to six years and three months in prison for filing fraudulent tax returns using the stolen identities of children.
“This defendant used the stolen identities of children in his scheme to steal from the United States Treasury,” said United States Attorney Sally Quillian Yates. “This office in collaboration with our law enforcement partners will continue to do our best to stop these fraudulent schemes and protect the public from identity theft.”
“Identity thieves are becoming more devious, creative, and conniving,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “They steal our identities, steal government money and prey upon innocent citizens. These criminals must be and will continue to be pursued in order to obtain justice for the victims as well as justice for our nation.”
According to United States Attorney Yates, the charges and other information presented in court: From 2010 through 2012, Awiti owned and operated Fidelity Financial, LLC in Smyrna, Ga. During that time, Awiti engaged in a scheme to defraud the Department of the Treasury by filing over 500 fraudulent income tax returns using stolen identities. This type of scheme is commonly called stolen identity refund fraud. Awiti used the stolen personal identification information of hundreds of victims, along with fake wage and withholding information, to prepare fraudulent tax returns. The majority of the identity theft victims were children. Awiti sought fraudulent refunds totaling approximately $2,678,725.35; however, the IRS rejected some of the claims, resulting in an actual loss to the U.S. Treasury of $1,783,316.00.
Awiti, 29, of Smyrna, Ga., was sentenced by U.S. District Court Judge Charles A. Pannell, Jr. to six years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,783,316.00. Awiti was convicted on these charges on May 5, 2014, after he pleaded guilty.
This case was investigated by Special Agents the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
Assistant United States Attorney Jeffrey Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Sixteen Former Puerto Rico Police Officers Plead Guilty to Running Criminal Organization from the Police Department<br />Read the Press Release
Sixteen former Puerto Rico police officers have pleaded guilty for their roles in a criminal organization run out of the police department. The officers used their affiliation with law enforcement to commit robbery and extortion, to manipulate court records in exchange for bribes, and to sell illegal narcotics.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
“These 16 police officers were charged with fighting crime, protecting lives and property, and improving the quality of life in Puerto Rico,” said Assistant Attorney General Caldwell. “Instead, they used their badges and guns to do the opposite, committing crimes, endangering lives, and stealing property under the veil of police authority. This prosecution demonstrates the Justice Department’s commitment to holding all criminals accountable – including those who wear a badge. We will use every tool at our disposal, including the RICO laws, to rid our communities of corruption.”
The following 13 defendants pleaded guilty to conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act: Osvaldo Vazquez-Ruiz, 38; Orlando Sierra-Pereira, 37; Danny Nieves-Rivera, 35; Roberto Ortiz-Cintron, 35; Yovanny Crespo-Candelaria, 34; Jose Sanchez-Santiago, 32; Miguel Perez-Rivera, 35; Nadab Arroyo-Rosa, 33; Jose Flores-Villalongo, 52; Luis Suarez-Sanchez, 36; Eduardo Montañez-Perez, 29; Carlos Laureano-Cruz, 40; and Carlos Candelario-Santiago, 47. Three defendants, Ruben Casiano-Pietri, 36, Christian Valles-Collazo, 28, and Ricardo Rivera Rodriguez, 39, pleaded guilty to robbery and extortion charges. Several of the defendants also pleaded guilty to firearms charges in connection with the use of their police-issued firearms in furtherance of their crimes. At the time of their criminal conduct, Flores-Villalongo and Candelario-Santiago were sergeants with the Police of Puerto Rico (POPR), and the other defendants were police officers. Sentencing hearings are scheduled for December 2014.
According to court documents, over the course of the conspiracy, the officers worked together to conduct traffic stops and enter the homes of suspected criminals to steal money, property and drugs for their own personal enrichment. They planted evidence to make false arrests, and then extorted money from their victims in exchange for their release from custody. Additionally, in exchange for bribe payments, the officers gave false testimony, manipulated court records and failed to appear in court when required so that criminal cases would be wrongfully dismissed. The officers also sold and distributed wholesale quantities of narcotics.
As just a few examples of their criminal conduct, in April 2012, defendants Vazquez-Ruiz and Sierra-Pereira conducted a traffic stop in their capacity as police officers and stole approximately $22,000 they believed to be illegal drug proceeds. Vazquez-Ruiz later attempted to extort approximately $8,000 from an individual believed to be a drug dealer’s accomplice in exchange for promising to release a prisoner.
Further, in November 2012, defendants Sierra-Pereira, Nieves-Rivera, Ortiz-Cintron and Valles-Collazo illegally entered an apartment and stole approximately $30,000, which they believed were illegal lottery proceeds.
The defendants frequently shared with one another the proceeds they illegally obtained, and used their power, authority and official positions as police officers to promote and protect their illegal activity. Among other things, the defendants used POPR firearms, badges, patrol cars, tools, uniforms and other equipment to commit the crimes, and then concealed their illegal activity with fraudulently obtained court documents and falsified POPR paperwork that made it appear they were engaged in legitimate police work.
The case was investigated by the FBI’s San Juan Division, and prosecuted by Trial Attorneys Brian K. Kidd, Emily Rae Woods and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana E. Bauzá of the District of Puerto Rico.Sixteen Former Puerto Rico Police Officers Plead Guilty to Running Criminal Organization from the Police DepartmentRead the Press Release
WASHINGTON – Sixteen former Puerto Rico police officers have pleaded guilty for their roles in a criminal organization run out of the police department. The officers used their affiliation with law enforcement to commit robbery and extortion, to manipulate court records in exchange for bribes, and to sell illegal narcotics.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
“These 16 police officers were charged with fighting crime, protecting lives and property, and improving the quality of life in Puerto Rico,” said Assistant Attorney General Caldwell. “Instead, they used their badges and guns to do the opposite, committing crimes, endangering lives, and stealing property under the veil of police authority. This prosecution demonstrates the Justice Department’s commitment to holding all criminals accountable – including those who wear a badge. We will use every tool at our disposal, including the RICO laws, to rid our communities of corruption.”
The following 13 defendants pleaded guilty to conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act: Osvaldo Vazquez-Ruiz, 38; Orlando Sierra-Pereira, 37; Danny Nieves-Rivera, 35; Roberto Ortiz-Cintron, 35; Yovanny Crespo-Candelaria, 34; Jose Sanchez-Santiago, 32; Miguel Perez-Rivera, 35; Nadab Arroyo-Rosa, 33; Jose Flores-Villalongo, 52; Luis Suarez-Sanchez, 36; Eduardo Montañez-Perez, 29; Carlos Laureano-Cruz, 40; and Carlos Candelario-Santiago, 47. Three defendants, Ruben Casiano-Pietri, 36, Christian Valles-Collazo, 28, and Ricardo Rivera Rodriguez, 39, pleaded guilty to robbery and extortion charges. Several of the defendants also pleaded guilty to firearms charges in connection with the use of their police-issued firearms in furtherance of their crimes. At the time of their criminal conduct, Flores-Villalongo and Candelario-Santiago were sergeants with the Police of Puerto Rico (POPR), and the other defendants were police officers. Sentencing hearings are scheduled for December 2014.
According to court documents, over the course of the conspiracy, the officers worked together to conduct traffic stops and enter the homes of suspected criminals to steal money, property and drugs for their own personal enrichment. They planted evidence to make false arrests, and then extorted money from their victims in exchange for their release from custody. Additionally, in exchange for bribe payments, the officers gave false testimony, manipulated court records and failed to appear in court when required so that criminal cases would be wrongfully dismissed. The officers also sold and distributed wholesale quantities of narcotics.
As just a few examples of their criminal conduct, in April 2012, defendants Vazquez-Ruiz and Sierra-Pereira conducted a traffic stop in their capacity as police officers and stole approximately $22,000 they believed to be illegal drug proceeds. Vazquez-Ruiz later attempted to extort approximately $8,000 from an individual believed to be a drug dealer’s accomplice in exchange for promising to release a prisoner.
Further, in November 2012, defendants Sierra-Pereira, Nieves-Rivera, Ortiz-Cintron and Valles-Collazo illegally entered an apartment and stole approximately $30,000, which they believed were illegal lottery proceeds.
The defendants frequently shared with one another the proceeds they illegally obtained, and used their power, authority and official positions as police officers to promote and protect their illegal activity. Among other things, the defendants used POPR firearms, badges, patrol cars, tools, uniforms and other equipment to commit the crimes, and then concealed their illegal activity with fraudulently obtained court documents and falsified POPR paperwork that made it appear they were engaged in legitimate police work.
The case was investigated by the FBI’s San Juan Division, and prosecuted by Trial Attorneys Brian K. Kidd, Emily Rae Woods and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana E. Bauzà of the District of Puerto Rico.
Six Former Puerto Rico Police Officers Plead Guilty to Federal Civil Rights, Obstruction of Justice and Perjury ChargesRead the Press Release
Three Puerto Rico police officers, Erick Rivera Nazario, Angel Torres Quinones and Antonio Rodriguez Caraballo today pleaded guilty to federal civil rights charges in connection with the fatal beating of 19-year-old Jose Luis Irizarry Perez, announced Acting Assistant Attorney General Molly Moran for the Civil Rights Division, United States Attorney Rosa Emilia Rodriguez-Velez for the District of Puerto Rico, and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.
These pleas, in conjunction with other recent pleas by Jimmy Rodriguez Vega, David Colon Martinez and Miguel Negron Vazquez brings the total number of Puerto Rico police officers pleading guilty to charges related to this incident to six.
According to documents filed in connection with the guilty pleas, former officer Rodriguez Vega and Lieutenant Rivera Nazario struck Irizarry Perez with their police batons while former officer Colon Martinez physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.
Rivera Nazario pleaded guilty to one count of depriving Irizarry Perez of his civil rights by striking him with his police baton. Torres Quinones pleaded guilty to obstruction of justice for providing misleading information to the local Puerto Rico prosecutor that initially investigated the matter. Former Sergeant Rodriguez Caraballo pleaded guilty to one count of perjury for making a false statement to the federal grand jury.
On Aug. 22, 2014, guilty pleas were entered by Colon Martinez and Negron Vazquez for their role in the case. Colon Martinez pleaded guilty to one count of making a false statement to the FBI and one count of perjury for making a false statement to the federal grand jury that investigated the incident. Negron Vazquez pleaded guilty to making a false statement to the FBI.
Rodriguez Vega pleaded guilty on March 8, 2013, to one count of depriving Irizarry Perez of his civil rights by striking him with his police baton.
“This case reflects the department’s commitment to ensuring that those officers who violate their oath by using excessive force or obstructing a federal investigation will be held accountable,” said Acting Assistant Attorney General Moran. “While the vast majority of police officers serve with the highest distinction, the Justice Department stands ready to investigate and prosecute those officers who cross the line and engage in criminal conduct.”
“We rely upon our police officers to protect and serve the community, but through their illegal actions, these officers abused their power and violated the public trust,” said U.S. Attorney Vélez. “I am hopeful that today’s pleas bring a measure of justice and closure to the victim’s family and the entire community.”
Rodriguez Vega and Rivera Nazario each face a maximum penalty of 10 years in prison and a fine of $250,000 for their convictions for violating Irizarry Perez’s civil rights.
Colon Martinez faces a maximum penalty of five years in prison and a $250,000 fine for each conviction of making a false statement to the FBI and making a false declaration to the federal grand jury.
Negron Vazquez faces a maximum penalty of five years in prison and a $250,000 fine for his conviction of making a false statement to the FBI.
Torres Quinones faces a maximum penalty of 20 years in prison and a fine of $250,000 for his conviction for obstruction of justice by providing misleading information to the local prosecutor.
Rodriguez Caraballo faces a maximum penalty of five years in prison and a $250,000 fine for his conviction for making a false declaration to the federal grand jury.
This case was investigated by the San Juan Division of the FBI and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel from the Civil Rights Division of the U.S. Department of Justice and Assistant U.S. Attorney Jose A. Contreras from the U.S. Attorney’s Office for the District of Puerto Rico.
Second of Five Spice Conspirators SentencedRead the Press Release
BOISE – Troy Palmer, 43, of Boise, Idaho, was sentenced today to 40 months in prison, followed by three years of supervised release for conspiring to launder money, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Palmer to pay a $2,000 fine, and a $100 special assessment. He pleaded guilty on February 10, 2014.
According to court documents, Palmer and three co-conspirators, Mark Ciccarello, William Mabry, and Robert Eoff, conspired to purchase and import from China chemicals known as AM2201, UR-144, and XLR11, which they used to treat innocuous plant matter to make spiceCa synthetic cannabinoid similar to substances—including JWH018—listed in Schedule I of the Controlled Substances Act. The Indictment alleged that they conspired to launder money illegally obtained through spice manufacturing and distribution.
Palmer admitted that he knowingly entered into a conspiracy with co-conspirators to conduct financial transactions in connection with a “spice” manufacturing and distribution business beginning in March 2011. Palmer also admitted to knowingly participating and assisting in the financial activity of the business by engaging in bank and other financial transactions, through both domestic and foreign financial institutions. The transactions consisted of the proceeds of prior illegal spice sales and other specified unlawful activity and, in many cases, the transactions conducted through financial institutions separately consisted of criminally derived property of a value greater than $10,000; most of the transactions occurred in Idaho, Washington and California.
William Mabry was sentenced on May 21, 2014, to 24 months in prison and ordered to pay $80,000 in restitution. Robert Eoff was sentenced July 10, 2014, to 26 months in prison and 36 months of supervised release. The one remaining co-conspirator, Mark Ciccarello, is scheduled to be sentenced on September 8, 2014.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Meridian Police Department, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, and Nampa Police Department. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Second East Hampton Resident Admits Role in Real Estate Appraisal Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANN HILS, 54, of East Hampton, pleaded guilty on Friday, August 22, 2014 before U.S. District Judge Alvin W. Thompson in Hartford to one count of conspiracy to commit mail and bank fraud related to a real estate appraisal scheme.
According to court documents and statements made in court, HILS was not a provisional or certified real estate appraiser in the state of Connecticut at any time. From in or about December 2006 to in or about March 2008, HILS knowingly and willfully conspired with her daughter and co-defendant, Brandy Gomez, to obtain real estate appraisal fees to which they were not entitled.
More specifically, HILS and Gomez knowingly submitted falsified work logs to the Connecticut Department of Consumer Protection purporting to show that Gomez, a provisional appraiser, completed dozens of real estate appraisals under the supervision of a certified appraiser when, in fact, Gomez had not performed such work and was not entitled to such appraisal fees.
Moreover, HILS knowingly and wilfully used the individual names, certified appraiser license numbers, business names, and, in some instances, signatures, of three certified appraisers without their authorization in dozens of materially false real estate appraisals.
HILS and Gomez obtained fees in connection with these false appraisals and split approximately $47,908 in proceeds.
Judge Thompson scheduled sentencing for November 14, 2014, at which time HILS faces a maximum term of imprisonment of 30 years.
On March 19, 2014, Gomez plead guilty to conspiracy to commit mail and bank fraud in the same appraisal scheme. She awaits sentencing.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation Division and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Sayre, Pennsylvania Couple Sentenced for Tax Evasion SchemeRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania, announced that Randy Talada, age 58, and Sandy Talada, age 59, both of Sayre, Pennsylvania, were sentenced by U.S. District Court Judge Matthew W. Brann today in Williamsport.
Randy Talada was sentenced to 21 months’ incarceration to be followed by a three-year term of supervised release for conspiracy to commit mail fraud and tax evasion. Sandy Talada was sentenced to 6 months’ incarceration and 6 months’ home confinement to be followed by a two-year term of supervised release for tax evasion.
The tax evasion was the result of the Taladas’ failure to report income derived from their theft of small game of chance winnings from the Fort Sullivan Post 246 American Legion located in Athens, Pennsylvania. Randy Talada, the Bar Club manager at the time of thefts, also failed to report his wages. He was also convicted for conspiracy to commit mail fraud for supplying false statements via mail to the State Worker’s Insurance Fund (SWIF). At the sentencing hearing today, he was ordered to pay $171,000 in restitution to SWIF. The Taladas also owe IRS approximately $54,000.
The investigation was conducted by the IRS, Criminal Investigations Division, the FBI and the Athens Borough Police Department. The case was prosecuted by Assistant United States Attorney Todd K. Hinkley.
Omaha Contractor and Companies Plead Guilty to Fraud SchemeRead the Press Release
DES MOINES, IA – On August 22, 2014, Omaha, Nebraska contractor Ram Hingorani pled guilty to Major Program Fraud in the United States District Court for the Southern District of Iowa, announced United States Attorney Nicholas A. Klinefeldt. In addition, one of Hingorani’s companies, Midwest Paving, Inc. (MPI), pled guilty to Money Laundering in furtherance of the scheme. MPI is a U.S. General Services Administration, Department of Defense, and Department of Veteran Affairs contractor. These admissions of guilt by Hingorani follow guilty pleas entered by Midwest Contracting, Inc. (MCI), on August 15, 2014, to Major Program Fraud and Wire Fraud.
On May 22, 2013, a Federal grand jury in the Southern District of Iowa issued a 32-count Indictment charging Hingorani, business partner Ronald Waugh, MCI and MPI, in connection with an approximate $23.5 million Service-Disabled Veteran-Owned Small Business (SDVOSB) fraud scheme. The charges included multiple counts of major fraud, wire fraud, money laundering and conspiracy. Additionally, agents seized approximately $3.9 million from 14 separate financial accounts.
Beginning in May of 2007 and continuing through August of 2010, MCI unlawfully received 45 set-aside and/or sole-source SDVOSB contracts from the U.S. Department of Veterans Affairs and U.S. Department of Defense (DoD), to include contracts involving American Recovery and Reinvestment Act (ARRA) funds. The investigation revealed MCI was a pass-through and/or front company for Hingorani’s other businesses and that Waugh was simply a figurehead or “rent-a-vet,” who was being used for his SDV status. Evidence demonstrates that the non-veteran Hingorani controlled MCI and certified MCI’s SDVOSB status through the General Service Administration’s Central Contractor Registration (CCR) and Online Representations and Certifications Application (ORCA) databases. As a result of falsely certifying MCI’s status as a SDVOSB, MCI received 45 federal contracts that would have otherwise been awarded to legitimate Service-Disabled Veteran Owned Small Business Concerns.
The United States has agreed to dismiss all charges against Ronald Waugh, the service disabled veteran utilized by Hingorani to perpetrate the fraud scheme.
As a result of his plea agreement, Hingorani faces a prison term of up to 24 months and forfeiture of the profits obtained as a result of the fraud scheme. The amount of forfeiture will be determined by the District Court following a sentencing hearing which will be scheduled at a later date. In addition, Hingorani, MCI and MPI are currently suspended and face administrative debarment from obtaining future government contracts.
This case was investigated by the General Service Administration-Office of Inspector General, US Department of Veterans Affairs-Office of Inspector General, the Department of Defense-Office of Inspector General, the Small Business Administration-Office of Inspector General, and the Federal Deposit Insurance Corporation-Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Nashville Businessman Charged with Bank Fraud and Aggravated Identity TheftRead the Press Release
NASHVILLE, Tenn.- August 25, 2014 - Eric Stephen Peterson, 52, of Nashville, Tennessee, was indicted by a federal grand jury on August 20, 2014, in connection with a scheme to defraud several banks by depositing checks with forged signatures into various accounts controlled by Peterson, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Peterson is the owner and operator of Peterson Insurance Company, LLC and Peterson Enterprises, LLC.
The indictment charges Peterson with 28 counts of bank fraud and two counts of aggravated identity theft.
"The U.S. Attorney’s Office takes a very serious and aggressive approach when working with our law enforcement partners to pursue those who commit financial crimes and so greatly impact the lives of those they steal from,” said U.S. Attorney David Rivera. “We will continue our efforts to insure that the lives of those responsible are equally impacted and that justice is appropriately served.”
The indictment alleges that Peterson, while managing the financial affairs of another person, obtained access to that person’s investment and bank accounts and then abused his position by forging more than 200 checks totaling more than $800,000. Peterson is alleged to have deposited those checks into seven different bank accounts which he controlled and then used the money to pay purported project principal and/or distributions to investors which he had previously solicited to make investments in certain ostensible business or investment opportunities. The indictment also alleges that Peterson forged the signature of another person who was authorized to sign the checks and that he used the money to pay his general living expenses, such as restaurant tabs, utility bills and mortgage payments.
“The Secret Service remains committed to protecting our nation’s financial security, to include aggressively investigating Ponzi schemes such as the one perpetrated by Mr. Peterson that prey on the trust of individuals, often robbing them of their life savings and financial future,” said Todd Hudson, Special Agent in Charge of the United States Secret Service - Nashville Field Office.
If convicted, Peterson faces up to 30 years in prison for the bank fraud counts, as well as an additional two years for each count of aggravated identity theft.
The case was investigated by the United States Secret Service. The United States is represented by Assistant U.S. Attorney Sandra G. Moses.
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.