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Wednesday 25 June 2014
Edgewood Man Pleads Guilty to Violating Federal Wildlife Laws Prohibiting Sale of Eagle FeathersRead the Press Release
ALBUQUERQUE – Dale N. Smith, 60, of Edgewood, N.M., pleaded guilty this morning to violating the Migratory Bird Treaty Act by selling or offering to sell Bald Eagle feathers.
Smith was arrested on April 10, 2014, on a criminal complaint charging him with violating the Migratory Bird Treaty Act, the Lacey Act and the Bald and Golden Eagle Protection Act in March 2014, in Santa Fe County, N.M. Smith was indicted on May 7, 2014, and charged with three counts of violating the Migratory Bird Treaty Act and one count of violating the Lacey Act.
Smith, a member of the Lakota/Sioux Tribe of the Hunkpapa Band of Lakota, was charged as the result of an undercover investigation by the U.S. Fish and Wildlife Service that began on March 7, 2014, and concluded with Smith’s arrest on April 10, 2014. The investigation was initiated after the U.S. Fish and Wildlife Service received information that Smith had posted on an Internet website photographs of Indian arts and crafts which appeared to include federally protected feathers.
On March 7, 2014, an undercover agent contacted Smith and inquired about the feathers on one particular piece of art. Smith responded that the feathers were Bald Eagle feathers and offered to sell the artwork for $1,000. On March 20, 2014, Smith sold a feather fan containing Bald Eagle feathers and a medicine wheel containing Bald Eagle feathers to the undercover agent for $1,000. On March 20, 2014 and again on March 24, 2014, Smith offered to sell a headdress with bald eagle feathers to the undercover agent for $2,000.
Today, Smith pled guilty to one count of violating the Migratory Bird Treaty Act, and admitted selling a feather fan with Bald Eagle feathers to an undercover agent on March 20, 2014. In his plea agreement, Smith acknowledged that the Bald Eagle qualifies as a migratory bird and that he violated the Migratory Bird Treaty Act when he sold the Bald Eagle feather fan to the undercover agent.
At sentencing, Smith faces a maximum statutory penalty of two years in prison to be followed by a term of supervised release and a $250,000 fine. Smith remains on conditions of release pending his sentencing hearing, which has yet to be scheduled.
Bald Eagles are amongst more than 1000 wild birds protected under the federal wildlife laws, including the Migratory Bird Treaty Act, the Bald and Golden Eagle Protection Act, and the Lacey Act. Among other things, these laws prohibit the possession, use, and sale of the feathers or other parts of federally protected birds, as well as the unauthorized killing of these birds, to help ensure that the Eagle and other bird populations remain healthy and sustainable.
This case is being prosecuted by Assistant U.S. Attorney Paul H. Spiers and was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement with assistance from the New Mexico Game and Fish Department, Homeland Security Investigations, the U. S. Marshals Service, and Santa Fe County Sheriff's Office.The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov. Connect with its Facebook page at www.facebook.com/usfws, follow its tweets at www.twitter.com/usfwshq, watch its YouTube Channel at http://www.youtube.com/usfws and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq.
Criticizing Wisconsin’s Voter Id Statute, Attorney General Holder Pledges Aggressive Enforcement of Remaining Parts of Voting Rights ActRead the Press Release
WASHINGTON—On the one-year anniversary of the Supreme Court decision that struck down a key part of the Voting Rights Act, Attorney General Eric Holder pledged Wednesday that the Justice Department would remain aggressive in using Section 2 of the law—which was left intact by the Court’s decision—to guard against unjust voting restrictions.
Section 2, which prohibits barriers to voting that disadvantage minority groups, provided the basis for the department’s lawsuits last year against voting laws in North Carolina and Texas. It also formed the basis for a recent challenge to a voter ID statue in Wisconsin. In April, a federal district court sided with the plaintiffs in that case, declaring that the Wisconsin law violated both the equal protection clause of the Constitution and Section 2 of the Voting Rights Act.
Holder joined in criticizing the Wisconsin law in his message Wednesday.
“The Wisconsin law erected significant barriers to equal access without serving any legitimate government interest,” Holder said.
“It’s clear that discriminatory voting laws, rules, and regulations are not confined to any particular region. And thanks to Section 2 of the Voting Rights Act, neither are our enforcement efforts,” he added.
A full copy of the Attorney General’s video message appears below.
“One year ago today, in the case of Shelby County, a narrowly split but deeply divided U.S. Supreme Court struck down a key part of the historic Voting Rights Act of 1965.
“This was a deeply flawed decision – and it effectively invalidated a cornerstone of American civil rights law.
“In the nearly five decades leading up to that ruling, a critical provision of the Voting Rights Act known as Section 5 – which enjoyed consistent support from Members of Congress and presidents of both parties – provided the Justice Department with a rigorous tool to fight unjust attempts to abridge voting rights.
“It required certain jurisdictions with histories of discrimination to seek “preclearance,” from the Department or a federal court, before new voting changes could take effect – so these proposals could be subjected to fair and thorough review.
“This empowered the Justice Department to protect the right of every American to cast a ballot – unencumbered by discriminatory rules, regulations, and procedures that, intentionally or not, discourage and disenfranchise.
“Indeed, not long before the Shelby County decision, a federal judge considering the Department’s objection to South Carolina’s voter ID law noted the ‘continuing utility’ of preclearance ‘in deterring problematic, and hence encouraging non-discriminatory, changes in state and local voting laws.’
“When the Shelby decision effectively denied us this tool, the Department’s Civil Rights Division shifted resources to the enforcement of other protections that remain on the books – including Section 2 of the Voting Rights Act, which prohibits barriers to voting that disadvantage minority groups.
“During the past year, we filed Section 2 challenges to specific laws in North Carolina and Texas that could disproportionately restrict access to the ballot box for minority citizens.
“Section 2 also provides a valuable tool to individual voters who seek to protect their voting rights.“In April, a federal district court in Wisconsin ruled that Wisconsin’s unnecessarily restrictive voter-ID law, which disproportionately impacted the state’s African-American and Latino voters, violated both the equal protection clause of the Constitution and Section 2 of the Voting Rights Act.
“The Wisconsin law erected significant barriers to equal access without serving any legitimate government interest – because, as the judge found, and I quote, “The defendants could not point to a single instance of known voter impersonation occurring in Wisconsin at any time in the recent past.”
“By restricting access and decreasing voter participation, laws such as those in Wisconsin would shrink – rather than expand – access to the franchise.
“This is inconsistent not only with our history, but with our ideals as a nation – a nation founded on the principle that all citizens are entitled to equal opportunity, equal representation, and equal rights.
“And that’s why, across this country, the Department of Justice will continue to take aggressive steps to stand against disenfranchisement wherever it exists – and in whatever form.
“It’s clear that discriminatory voting laws, rules, and regulations are not confined to any particular region. And thanks to Section 2 of the Voting Rights Act, neither are our enforcement efforts.
“We will not simply stand by as the voices of many citizens are shut out of the process of self-governance.
“And in the days ahead, we will continue to work with Congressional leaders to fill the void left by the Supreme Court’s ruling – and use every available tool to safeguard the most basic right of American citizenship.”
The video message is viewable online here: http://www.justice.gov/agwa.php
Criminal Immigration Charges Brought Against Two Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, Enforcement and Removal Operations (ERO) announced today announced today that charges in two unrelated cases were brought against the following persons in Harrisburg.
Jose Parada-Rodriguez, age 27, a native and citizen of El Salvador, in the United States illegally was charged in a one-count indictment alleging that Parada-Rodriguez, an alien who has previously been arrested and deported from the United States in May 2011, did knowingly and unlawfully reenter the United States and was apprehended in Franklin County, Pennsylvania.
If convicted, Parada-Rodriguez faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
Omar Hernandez-Garfias, age 29, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment alleging that Hernandez-Garfias, an alien who has previously been arrested and deported from the United States in July 2007, did knowingly and unlawfully reenter the United States and was apprehended in Adams, Pennsylvania.
If convicted, Hernandez-Garfias faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO). It is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Colombian Maritime Narcotics Trafficker Sentenced to 25 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Arley Fernando Garces (34, Colombia) to 25 years in federal prison for possession with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States, and conspiracy to do the same, in violation of the U.S. Maritime Drug Law Enforcement Act. Garces pleaded guilty on April 14, 2014. Garces is the last of three co-defendants to be sentenced in this case. Judge Bucklew previously sentenced Santos Cerros-Maldonado to 12 years and 4 months’ imprisonment. Gregorio Campo-Rodriguez was sentenced to 7 years and 3 months in federal prison.
According to court documents and testimony, on August 19, 2013, the United States Coast Guard interdicted Garces, Campo-Rodriguez and Cerros-Maldonado onboard a stateless vessel in the Caribbean Sea. During the interdiction, individuals onboard that vessel jettisoned electronics, personal identifying information, and one kilogram of cocaine. Investigators later determined that Garces and his co-conspirators were smuggling hundreds of kilograms of cocaine in a false bottom of that vessel.
This case was investigated by the Panama Express South Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation comprised of agents and analysts from the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force North. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
The case was prosecuted by Special Assistant United States Attorney Michael J. Meyer and Assistant United States Attorney Maria Chapa-Lopez.
Clinton, Maryland Man Convicted of Transporting A Minor Across State Lines for ProstitutionRead the Press Release
RICHMOND, Va. – Mustafa Muhammad, 36, of Clinton, Maryland, was convicted yesterday by a federal jury of transportation of a minor across state lines for the purpose of prostitution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge, Federal Bureau of Investigation’s Richmond Field Office; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), made the announcement after the verdict was accepted by U.S. District Judge Robert E. Payne.
Muhammad faces a maximum penalty of life in prison with a mandatory-minimum term of 10 years in prison when he is sentenced on September 11, 2014.Muhammad was indicted on April 15, 2014, by a federal grand jury fortransportation of a minor in interstate commerce for the purpose of prostitution. According to evidence at trial, Muhammad met a 16-year old runaway online in February 2014, and then began communicating with her via text message. Later that month, Muhammad and the juvenile met in person in Maryland, and Muhammad posted an advertisement on backpage.com featuring the juvenile and offering her for prostitution. The juvenile provided Muhammad some of the money she made from prostitution. In March 2014,
Muhammad suggested that they travel to Virginia for the juvenile to work in prostitution, and, so, on March 14, 2014, Muhammad drove the juvenile from Maryland to a Holiday Inn in Fredericksburg, Virginia. Muhammad then posted another advertisement on backpage.com in Fredericksburg, advertising the juvenile for prostitution. A Stafford Sheriff’s deputy was looking for possible prostitution activity on backpage.com and discovered the juvenile’s ad. He then arranged to meet the juvenile and discovered that she was a 16-year old runaway.
This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security, Stafford County Sheriff’s Office, and Spotsylvania County Sheriff’s Office. Assistant U.S. Attorney Heather L. Hart is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-055.
Chicago Man Arrested on Federal Charges for Allegedly Impersonating A U.S. Marshal Service Employee Twice in 2013Read the Press Release
CHICAGO — A Chicago man was arrested today on federal charges for allegedly impersonating an employee of the U.S. Marshals Service on two occasions last year. The defendant, ROBERT P. ROZYCKI, was arrested without incident by deputy U.S. Marshals.
Rozycki, 37, was charged with two felony counts of impersonating a U.S. Marshals Service employee in an indictment that was returned by a federal grand jury yesterday and unsealed following his arrest. He is scheduled to be arraigned at 1:30 p.m. today before U.S. Magistrate Judge Michael Mason in Courtroom 2266 in the Dirksen Federal Courthouse.
The indictment charges Rozycki with falsely assuming the identity of and pretending to be a U.S. Marshals Service employee on March 3 and May 18, 2013.
Each count of impersonating a federal law enforcement officer carries a maximum penalty of three years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrest and indictment were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Darryl McPherson, United States Marshal for the Northern District of Illinois.
The government is being represented by Assistant U.S. Attorney Kathryn Malizia.
The public is reminded that an indictment complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Chapmanville Man Sentenced for Illegal Distribution of Prescription PainkillersRead the Press Release
CHARLESTON, W.Va. – A Chapmanville, West Virginia, man was sentenced to eight months’ home confinement and three years’ probation for distribution of oxymorphone, a powerful painkiller often sold under the brand name Opana, U.S. Attorney Booth Goodwin announced today. Carl Tomblin, 50, previously pleaded guilty to distribution of oxymorphone on March 25, 2014. Today’s sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Tomblin sold oxymorphone to a confidential police informant on five separate occasions in December 2013 and January 2014. Tomblin also admitted that he purchased and distributed oxymorphone for approximately eight months prior to January 2014.
The investigation was conducted by the U.S. 119 Task Force and the West Virginia State Police. Assistant United States Attorney Haley Bunn handled the prosecution.
The prosecution is part of an ongoing effort 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 pill and heroin in communities across the Southern District.
California Operators of Myredbook.com Website Arrested for Facilitating Prostitution and Money LaunderingRead the Press Release
Eric Omuro, of Mountain View, California, a.k.a “Red,” was arrested today following his indictment by a federal grand jury on charges involving the use of the mail and the Internet to facilitate prostitution, and multiple counts of money laundering. Annemarie Lanoce, 40, of Rocklin, California, was also indicted and arrested today for use of the mail and the Internet to facilitate prostitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office, and Special Agent in Charge José M. Martinez of the San Francisco Office of the Internal Revenue Service, Criminal Investigation made the announcement.
As part of today’s operation, the FBI seized the domain names sfredbook.com and myRedBook.com, which were allegedly operated by Omuro, with Lanoce’s assistance to facilitate prostitution in the San Francisco Bay Area and throughout the West Coast region of the United States.
According to information available on the publically accessible website as of the date of its seizure by the FBI, myRedbook.com purported to provide “Escort, Massage, and Strip Club Reviews.” Instead, however, the websites were used to host advertisements for prostitutes, complete with explicit photos, lewd physical descriptions, menus of sexual services, hourly and nightly rates, and customer reviews of the prostitutes’ services. The websites used acronyms for numerous sex acts, which were defined in graphic detail in the websites’ “Terms and Acronyms” section. Although the websites could be accessed for free, myRedBook.com advertised fees for premier placement of prostitution advertisements and for “VIP Memberships,” which purportedly allowed customers access to “private forums” and heightened capabilities to search reviews of the prostitution services.
Omuro, 53, who allegedly used numerous aliases, also engaged in money transfers to move myredbook.com revenue into bank accounts which he controlled. According to the Indictment, Omuro engaged in more than twenty monetary transactions to launder the profits derived from the facilitation of prostitution. The Indictment seeks the forfeiture of more than $5 million in property and money derived from the facilitation of prostitution, as well as the Internet domain names myredbook.com and sfredbook.com .
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI’s San Francisco Field Office, the IRS, and the Oakland Police Department. The case is being prosecuted by Trial Attorney Keith Becker of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorneys Elise Becker and Patricia Kenney of the Northern District of California. The Criminal Division’s Office of International Affairs provided assistance to the prosecution.California Operators of MYREDBOOK.COM Website Arrested for Facilitating Prostitution and Money LaunderingRead the Press Release
SAN FRANCISCO – Eric Omuro, of Mountain View, Calif., also known as “Red,” was arrested today following his Indictment by a federal grand jury on charges involving the use of the mail and the Internet to facilitate prostitution, and multiple counts of money laundering. Annemarie Lanoce, 40, of Rocklin, Calif., was also indicted and arrested today for use of the mail and the Internet to facilitate prostitution, announced U.S. Attorney Melinda Haag of the Northern District of California, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office, and Special Agent in Charge José M. Martinez of the San Francisco Office of the Internal Revenue Service, Criminal Investigation.
As part of today’s operation, the FBI seized the domain names sfredbook.com and myredbook.com, which were allegedly operated by Omuro, with Lanoce’s assistance, to facilitate prostitution in the San Francisco Bay Area and throughout the West Coast region of the United States.
According to information available on the publically accessible website as of the date of its seizure by the FBI, myredbook.com purported to provide “Escort, Massage, and Strip Club Reviews.” Instead, however, the website hosted advertisements for prostitutes, complete with explicit photos, lewd physical descriptions, menus of sexual services, hourly and nightly rates, and customer reviews of the prostitutes’ services. The website used acronyms for numerous sex acts, which were defined in graphic detail in the website’s “Terms and Acronyms” section. Although the website could be accessed for free, myredbook.com advertised fees for premier placement of prostitution advertisements and for “VIP Memberships,” which purportedly allowed customers access to “private forums” and heightened capabilities to search reviews of the prostitution services.
Omuro, 53, who allegedly used numerous aliases, also engaged in money transfers to move myredbook.com revenue into bank accounts which he controlled. According to the Indictment, Omuro engaged in more than twenty monetary transactions to launder the profits derived from the facilitation of prostitution. The Indictment seeks the forfeiture of more than $5 million in property and money derived from the facilitation of prostitution, as well as the Internet domain names myredbook.com and sfredbook.com.
The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI’s San Francisco Field Office, the IRS, and the Oakland Police Department. The case is being prosecuted by Assistant United States Attorneys Elise Becker and Patricia Kenney of the Northern District of California, and Trial Attorney Keith Becker of the Criminal Division’s Child Exploitation and Obscenity Section. The Criminal Division’s Office of International Affairs provided assistance to the prosecution.(Omuro indictment )
Caldwell Man Pleads Guilty to Social Security FraudRead the Press Release
BOISE – Jose Louis Fernandez, 44, of Caldwell, Idaho, pleaded guilty today in federal court to one count of Social Security Fraud by Concealment of Material Facts, U.S. Attorney Wendy J. Olson announced. Sentencing is set before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise on September 4, 2014.
According to the plea agreement, Fernandez maintained two separate identities for the purpose of working under a false name while simultaneously collecting Social Security Disability under his true name. In April of 2012, during a Title II benefit review, Fernandez falsely indicated that he had not worked since the date of his last disability decision in 2001. Contrary to this statement, Fernandez had been working at a home-building company since June 2003, and worked until May 2012. As a result of this fraud, Fernandez received SSA Disability benefits to which he was not entitled. He also received Medicare insurance benefits and benefits directed toward his children. The benefits paid as a result of Fernandez’s fraudulent actions were nearly $200,000.
The case was investigated by the Social Security Administration, Office of Inspector General-Office of Investigations; Health and Human Services, Office of Inspector General, with assistance from the Caldwell Police Department and United States Marshals Service.
Businessman Indicted for Making over $5 Million in False Asset Statements to Government Insurance RegulatorsRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Jeffrey Cohen, age 39, of Reisterstown, Maryland, on five counts of making false statements to an insurance regulator. The indictment was returned yesterday and unsealed today upon his arrest.The indictment 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); Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
Cohen acted as the president and chairman of the Board of Indemnity Insurance Corporation RRG (IICRRG), located in Sparks, Maryland, and operating in several states including Maryland. Cohen owned RB Entertainment Ventures, which was a majority owner of IICRRG. IICRRG provided general liability, liquor liability and excess liability coverage to policyholders, which were individuals and companies involved in the entertainment industry, such as nightclubs, concert tours and special events. In 2012, IICRRG insured over 3,000 policyholders and wrote over $25 million in premiums.
IICRRG was a Delaware corporation and regulated by the Delaware Insurance Commissioner, which seeks to protect insurance policyholders and the general public by regulating insurance companies and products to ensure among other things the ability to pay claims.
The indictment alleges that in June 2012, regulators from the Delaware Insurance Commissioner examined IICRRG and learned of serious questions about the financial status of IICRRG. Thereafter, in November 2012 and January 2013, Cohen allegedly caused IICRRG to file an unaudited financial statement with, and sent a letter to, the Commissioner, respectively, which falsely claimed that IICRRG had $5.1 million in cash on deposit, in order to influence the actions of the Commissioner. In April 2013, Cohen caused a fax to be submitted to the Commissioner that falsely claimed that a bank had verified that IICRRG had $5.1 million in cash on deposit at the bank.
Cohen faces a maximum sentence of 15 years in prison and a $250,000 fine for making false statements to an insurance regulator. Cohen had an initial appearance today in U.S. District Court in Baltimore, and is detained pending a detention hearing scheduled for Friday, June 27, 2014 at 2:00 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore, IRS – Criminal Investigation and U.S. Postal Inspection Service - Washington Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Joyce K. McDonald, who are prosecuting the case.
Banker in Johnson County Admits Making False Statements on Loan ApplicationRead the Press Release
KANSAS CITY, KAN. – A Johnson County man pleaded guilty Wednesday to conspiring to make false statements on a loan application while he was working as a senior vice president of a bank in Overland Park, U.S. Attorney Barry Grissom said today.
Michael W. Yancey, 55, Olathe, Kan., pleaded guilty to one count of conspiracy to make false statements on a loan application. In his plea, he admitted the crime took place while he was working as a senior vice president and commercial lender at Farmers Bank & Trust, N.A., in Overland Park. Farmers Bank is headquartered in Great Bend, Kan.
Yancey conspired with another person to obtain and maintain a business loan of $850,000 from Farmers Bank for two companies by falsely representing the terms of a real estate purchase in Basehor, Kan. He falsely represented to the bank that the property’s purchase price was $1.1 million when in fact it was $850,000. The false information made it appear the loan conformed to a maximum 75 percent loan-to-value ratio when in truth the loan was approximately 97 percent of the purchase price. He also falsely stated that the loan involved a seller carryback of $150,000 and a borrower equity injection of $125,000.Sentencing will be set at a later time. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended SIG-TARP (Office of Inspector General for the Troubled Asset Relief Program), the FBI, the U.S. Department of Labor and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Attorney General Holder Pledges Support for Legislation to Provide E.U. Citizens with Judicial Redress in Cases of Wrongful Disclosure of Their Personal Data Transferred to the U.S. for Law Enforcement PurposesRead the Press Release
Attorney General Eric Holder announced today that the Obama administration, as part of successfully concluding negotiations on the E.U.-U.S. Data Protection and Privacy Agreement (DPPA), would seek to work with Congress to enact legislation that would provide E.U. citizens with the right to seek redress in U.S. courts if personal data shared with U.S. authorities by their home countries for law enforcement purposes under the proposed agreement is subsequently intentionally or willfully disclosed, to the same extent that U.S. citizens could seek judicial redress in U.S. courts for such disclosures of their own law enforcement information under the Privacy Act.
The Attorney General has been co-chairing the E.U./U.S. Justice and Home Affairs Ministerial in Athens, Greece. The agenda of the Ministerial is to advance E.U.-U.S cooperation against transnational crime and terrorism, with particular emphasis on foreign fighters traveling to and from Syria.
As part of that law enforcement cooperation, the Ministerial also discussed the ongoing negotiation of an "umbrella" DPAA, which would cover the exchange of law enforcement information between the E.U. and the U.S. The DPPA is an outgrowth of an initiative begun during the Bush Administration, and carried forward during the Obama Administration, to establish an enhanced commitment to share information transatlantically to fight crime and terrorism, while also protecting privacy.
In order to advance the DPPA negotiations, Attorney General Holder stated at the Ministerial that the Obama Administration is committed to seeking legislation that would ensure that, with regard to personal information transferred within the scope of the proposed DPPA, E.U. citizens would have the same right to seek judicial redress for intentional or willful disclosures of protected information, and for refusal to grant access or to rectify any errors in that information, as would a U.S. citizen under the Privacy Act.
“In a world of globalized crime and terrorism, we can protect our citizens only if we work together internationally, including through sharing law enforcement information with and by E.U. Member States and other close allies,” Attorney General Holder said. “At the same time, we must ensure that we continue our long tradition of protecting privacy in the law enforcement context. The step we are announcing today will help advance both goals.”
A copy of Holder’s full statement, as delivered in Athens, appears below:
“At the outset, I would like to thank our Greek hosts -- Minister Athanassiou and Minister Kikilias -- for their superb hospitality. And I would like to congratulate them on the highly successful Greek Presidency of the EU.
“Today, we have had the opportunity to discuss the wide range of justice and home affairs issues that bind together the EU, its Member States and the United States, in a common effort to protect all of our citizens. We have talked today about how we can increase our cooperation on countering violent extremism, and on responding to the critical issue of "Foreign Fighters" -- citizens from our countries, and other countries around the world, who are traveling to Syria to join terrorist groups, and who may return as trained and hardened terrorists. We discussed joint strategies for countering transnational crime, including trafficking in firearms and wildlife; and we talked about protecting victims of crime, as well as persons with disabilities. We dealt with the ever-increasing threat of cybercrime -- and announced that the United States would carry forward the important initiative begun by Commissioner Malmstrom, the Global Alliance Against Child Sexual Abuse Online.
“One consistent theme ran through all our discussions: in a world of globalized crime and terrorism, we can protect our citizens only if we work together, including through sharing law enforcement information. At the same time, we must ensure that we continue our long tradition of protecting privacy in the law enforcement context. We already have many mechanisms in place to do this, and we have -- on both sides of the Atlantic – an outstanding record of protecting the privacy of law enforcement information. But we can always do more, and for that reason, the EU and the United States have undertaken to negotiate an "umbrella" Data Protection and Privacy Agreement Regarding Police and Judicial Cooperation -- the DPPA.
“Vice President Reding and her Directorate have been our key partners in this endeavor. While I am sorry that other commitments made it impossible for Vice President Reding to be present today, I did want to state publicly my agreement with her view that we are close to concluding the Data Protection and Privacy Agreement.
“Indeed, I believe we should be able to finish this negotiation soon, since the remaining issues -- those regarding the legal framework for the transfer and use of information -- have already been addressed in our existing agreements, including our EU/U.S. Mutual Legal Assistance agreement and our bilateral treaties with all of the Member States thereunder. These prior agreements have been proven, through actual experience, to provide a high level of protection both for the safety of all our citizens and for their privacy, and we should incorporate their principles into the DPPA.
“Moreover, we should move forward quickly here to conclude our negotiations, since our DPPA negotiators have already reached agreement on additional, and comprehensive, administrative privacy protections that will come into effect when the DPPA enters into force. And today, I am happy to announce that, in support of our desire to bring the DPPA negotiations to conclusion, the Obama Administration is committed to seeking legislation that would ensure that, with regard to personal information transferred within the scope of our proposed DPPA Regarding Police and Judicial Cooperation, EU citizens would have the same right to seek judicial redress for intentional or willful disclosures of protected information, and for refusal to grant access or to rectify any errors in that information, as would a U.S. citizen under the Privacy Act.
“This commitment -- which has long been sought by the EU -- reflects our resolve to move forward not only on the DPPA itself, but on strengthening transatlantic ties.
“The work we do together is vital. Thank you again to our Greek hosts, to the Commission, and to the incoming Italian Presidency.”
Atf-led Law Enforcement Operation Targets Violent Crime in Bridgeport and New HavenRead the Press Release
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New Haven – Law enforcement officials today announced the results of a four-month joint law enforcement initiative to stem violent crime in Bridgeport and New Haven. The operation, headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), resulted in the seizure of more than 73 illegal firearms and is expected to result in the prosecution of 154 individuals on federal or state charges. Today’s announcement was made by U.S. Attorney Deirdre M. Daly, ATF Special Agent in Charge Daniel J. Kumor, Bridgeport Police Chief Joseph L. Gaudett, Jr., New Haven Police Chief Dean Esserman, Commissioner Dora B. Schriro of the Connecticut Department of Emergency Services and Public Protection, Fairfield State’s Attorney John Smriga and New Haven State’s Attorney Michael Dearington.
“There is no higher calling in law enforcement than preventing violent crime,” stated U.S. Attorney Deirdre M. Daly. “Under the powerful leadership of the ATF and with the invaluable collaboration of the Bridgeport and New Haven Police Departments, the Connecticut Department of Emergency Services and Public Protection and other local and federal law enforcement agencies, Operation Samson has successfully stemmed the violence in two of Connecticut’s largest cities. Samson included dangerous undercover operations. We commend the agents and officers who repeatedly risked their lives to remove over 70 illegal guns and a large number of violent offenders from our communities.”
“ATF is always focused on violent crime, as this four-month enhanced enforcement initiative has shown,” stated Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division. “The citizens of New Haven and Bridgeport have been victimized by violent criminals who act with total disregard for public safety and our goal is to take these offenders off the streets, period. The partnership of law enforcement and prosecutors in Connecticut taking a united stand contributed to the operation’s overall success. To this end, we are committed to utilize every resource to keep citizens safe. To those who choose to disregard the rules of our communities by committing violence, be warned, we will not rest until you are off the streets.”
In March 2014, the ATF and the Bridgeport and New Haven Police Departments launched “Operation Samson” a multi-layered initiative targeting violent criminals and illegal firearm possession and firearm trafficking in New Haven and Bridgeport. As part of the initiative, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations. The combined law enforcement team brought a range of expertise to the operation, including tactical, technical, analytical, undercover skills and supervisory experience.
Several other federal, state and local law enforcement agencies supported the initiative as investigations expanded into other cities and towns in Connecticut and across state lines.
The initiative employed intelligence-led policing to determine where to place resources in order to have the greatest impact. During Operation Samson, law enforcement personnel conducted approximately 425 operations, which included undercover meetings, controlled purchases of firearms and narcotics, and the execution of search and arrest warrants. As a result, a total of 80 individuals have been charged, or are expected to be charged, with a variety of federal firearms, narcotics and robbery violations. In addition, 74 defendants have been charged, or expected to be charge, with various state offenses.
The operation resulted in the confiscation of 73 firearms, including sawed-off shotguns, sawed-off rifles and a silencer. Law enforcement also recovered more than one kilogram of crack cocaine, approximately 750 grams of powder cocaine, more than 200 grams of heroin, more than seven kilograms of marijuana, and approximately 400 prescription narcotic pills.
During Operation Samson, investigators uncovered an alleged firearms trafficking ring that used out-of-state straw purchasers who accepted narcotics in exchange for firearms. This ring was identified as having trafficked approximately 100 firearms into Connecticut. A second alleged firearms trafficking ring that used straw-purchasers within Connecticut is estimated to be responsible for delivering 30 illegal firearms into New Haven and Bridgeport. Both of these cases are still being actively investigated.
Investigators also identified and arrested alleged members of robbery crews, some of whom also trafficked in firearms and narcotics.
“I am deeply grateful to the ATF and also the state crime lab,” stated Bridgeport Police Chief Joseph L. Gaudett, Jr. “For the last few months, ATF agents and our officers have worked together seamlessly every day and night. There was a common goal to take guns and dangerous criminals off the street. The technicians at the crime lab worked behind the scenes but they were equal partners in helping us build these cases. Any time law enforcement sent evidence for analysis, the response unfailingly was ‘We’ll get right on it. When do you need the results?’ Because of those efforts, the streets of Bridgeport are safer today.”
“Cooperation between police departments, law enforcement agencies and the community are what’s required to achieve progress,” stated New Haven Police Chief Dean Esserman. “This collaboration, led by the ATF, is an impressive example of cooperation. We are particularly grateful to them, the U.S. Attorney’s Office and the Connecticut State Crime Laboratory. This precedent-setting mission has targeted local gun violence and shown great results. We’re proud of those who’ve put in the long hours to see this operation through. New Haven and the State of Connecticut are safer for it.”
“The results of this initiative clearly demonstrate the effectiveness of cooperation between federal and state law enforcement,” stated Fairfield State’s Attorney John Smriga.
“This initiative has brought together all branches of law enforcement to strengthen partnerships, provide a sense of security and make our greater New Haven communities safer,” stated New Haven State’s Attorney Michael Dearington.
An instrumental component of Operation Samson has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence. NIBIN is an ATF-administered digital ballistics imaging system that aids law enforcement agencies in their investigations by capturing images of shell casings to link violent crimes involving firearms, and subsequently identify firearms users or “trigger pullers.” NIBIN-users are able to acquire digital images of the unique markings made on fired ammunition recovered from a crime scene or test-fired from a crime gun recovered by law enforcement, and then quickly compare those images against earlier NIBIN entries. If a potential match emerges, firearm examiners compare the original evidence with a microscope to confirm the match, or a “hit.”
Within recent months, the Connecticut State Crime Laboratory has entered ballistics evidence recovered from crimes committed within the state into NIBIN and identified a substantial number of NIBIN “hits.” To date, 42 such hits have linked 104 crimes involving the unlawful discharge of firearms that have occurred in Bridgeport, New Haven and surrounding areas. NIBIN has linked these unlawful discharges to robberies, aggravated assaults, and homicides. Importantly, these links have provided law enforcement with timely, actionable leads to assist in identifying serial shooters and violent criminal organizations. NIBIN has also been instrumental in the investigation of four separate homicides. One firearm recovered during Operation Samson has been linked to a previously unsolved homicide and five additional shooting investigations.
“I would like to thank the Bureau of Alcohol, Tobacco and Firearms and Explosives for its commitment of resources to the state of Connecticut and to Operation Samson,” stated Dr. Dora B. Schriro, Commissioner of the Department of Emergency Services and Public Protection. “Bridgeport and New Haven are to be commended as well for their leadership in making their communities safer places to live and work. The additional financial support provided by the Statewide Firearms Trafficking Task Force and the participation by the Connecticut State Police and the State Crime Laboratory were also critical to the success of the Operation. In just a matter of months, this partnership has helped to reduce gun violence and strengthen our communities.”
Operation Samson is the ninth Enhanced Enforcement Initiative (EEI) conducted by ATF since 2012. The cities of New Haven and Bridgeport were chosen for this EEI based on Uniform Crime Reports that ranked both cities as having high amounts of violent crime, and due to existing partnerships between ATF and the New Haven and Bridgeport Police Departments. Previous ATF EEI’s were deployed in New Orleans; Philadelphia; Oakland, Calif.; Flint, Mich.; Chicago; Stockton, Calif.; St. Louis, and Camden, N.J.
U.S. Attorney Daly and ATF Special Agent in Charge Kumor acknowledged and commended the investigative support and assistance of several additional law enforcement agencies including the U.S. Marshals Service, Homeland Security Investigations, the Statewide Firearms Trafficking Task Force, the Connecticut State Police, the Connecticut Department of Correction and the Milford, Norwalk, Stamford, Waterbury and West Haven Police Departments.The federal cases are being prosecuted by the U.S. Attorney’s Office’s Violent Crime and Narcotics Unit under the leadership of Assistant U.S. Attorneys Dave Vatti, Robert Spector and Tracy Dayton.
U.S. Attorney Daly stressed that charges contained in indictments and complaints are not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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[email protected]Assistant Bank Branch Manager Charged with Bank FraudRead the Press Release
Erlanda Naranjo, 39, of Nashville, Tennessee, was charged by Information, filed yesterday, with bank fraud, announced United States Attorney Zane David Memeger. According to the Information, while employed at a bank, the defendant submitted a false application for a business line of credit in the name of a relative. That relative neither owned a business nor authorized Naranjo to apply for credit in her name. The bank ultimately approved the application, and sustained a loss of more than $95,000, when the line of credit was charged up and not repaid.
If convicted the defendant faces a maximum possible sentence of 30 years in prison, a five-year period of supervised release, a $1,000,000 fine and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Ambulance Company Co Owner Sentenced to 13 1/2 Years for Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – Vadim Fleshler, 33, of Philadelphia, PA, was sentenced today to 162 months in prison for a healthcare fraud scheme involving Superior EMS Ambulance Co., located in Huntingdon Valley, PA. Fleshler was a founder of Superior EMS Ambulance and managed its day-to-day operations. In December 2013, Fleshler pleaded guilty to all counts against him in the indictment including health care fraud, false statements in connection with health care matters, and conspiracy to commit health care fraud.
The defendant’s company, Superior EMS Ambulance, transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The defendant, or others acting on his behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendant knew that the patients could be transported safely by other means and, in fact, many of the patients were able to walk. The defendant billed for the ambulance services as if those services were medically necessary. As a result of the fraudulent billing, the Medicare program paid more than $2.4 million for this inappropriate method of transportation.
In addition to the prison term, U.S. District Court Judge Michael M. Baylson ordered restitution to Medicare in the amount of $1,931,015.52, a special assessment of $900, and a three-year term of supervised release.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-85257 Former Bank Officers Sentenced in Loan-Fraud Scheme That Preceded Collapse of First National Bank of SavannahRead the Press Release
SAVANNAH, GA: 7 former officers of First National Bank of Savannah were sentenced during three days of hearings last week before United States District Court Chief Judge Lisa Godbey Wood. Each of the defendants had earlier pled guilty to their role in a massive loan-fraud scheme against First National Bank and other federally insured banks.
The 7 convicted former officers of First National Bank received the following sentences:
- Heys Edward McMath III, 59, the former President and CEO of First National Bank, was sentenced to serve 42 months in prison, to pay $9,749,264.83 in restitution, and to serve 3 years of supervised release after his release from prison;
- Stephen Michael Little, 65, the former Executive Vice President and CFO of First National Bank, was sentenced to serve 20 months in prison, to pay $72,571.25 in restitution, to pay a fine of $100,000, and to serve 3 years of supervised release after his release from prison;
- Robert Wilson Dailey, 52, the former City President and Senior Lending Officer of First National Bank, was sentenced to serve 38 months in prison, to pay $158,518.13 in restitution, and to serve 3 years of supervised release after his release from prison;
- Jay Patrick Gardner, 63, the former Vice President of Credit Administration of First National Bank, was sentenced to serve 2 years of probation and to pay $14,800 in restitution.
- Isaac Jefferson Mulling, 55, a former Senior Vice President and commercial loan officer of First National Bank, was sentenced to serve 22 months in prison, to pay $157,543.60 in restitution, and to serve 3 years of supervised release after his release from prison.
- Alan Robert Fleming, 38, the former City President of the Tybee Island branch and a commercial loan officer of First National Bank, was sentenced to serve 38 months in prison, to pay $3,891,870.28 in restitution, and to serve 3 years of supervised release after his release from prison;
- Jeffrey Allen Farrell, 45, the former City President of the Richmond Hill branch and a commercial loan officer of First National Bank, was sentenced to serve 10 months in prison, to pay $57,771.25 in restitution, and to serve 3 years of supervised release after his release from prison.
United States Attorney Edward J. Tarver said, “These Defendants handed out millions of dollars in fraudulent loans, falsified countless bank records, and lied to federal bank regulators, all in an effort to gamble with other people’s money and to hide the failing condition of the bank that they ran. Their fraudulent conduct put at risk the deposits of those who sought a safe place to keep their money, and ultimately caused a payout of enormous losses by the Federal Deposit Insurance Corporation (FDIC). No matter the complexity of the scheme, this United States Attorney’s Office will bring those bank officers who place FDIC-funds at risk through fraud and other criminal conduct to justice.”Fred Gibson, Jr., Principal Deputy Inspector General of the FDIC, said, “The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join our law enforcement colleagues in announcing the sentencings resulting from our investigation of the fraud that contributed to the failure of the First National Bank of Savannah and a loss to the Deposit Insurance Fund of more than $90 million. We are particularly concerned when financial institution insiders abuse their positions of trust to commit crimes and seek to undermine the integrity of the financial services industry. We are committed to continuing our efforts throughout the country to bring guilty parties to justice, help maintain public trust and confidence in the banking system, and protect the FDIC’s Deposit Insurance Fund from further losses.”
“The sentences of the seven bank officers involved in this complex scheme make it clear that criminals who undermine banks or bank-holding companies regulated by the Federal Reserve Board will be vigorously prosecuted,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “I commend all those involved in this complex investigation for their hard work and dedication, which led to this outcome.”“This investigation conducted with our law enforcement counterparts demonstrated that bank officials and persons in positions of trust who violate the law will be thoroughly investigated and held accountable for their actions,” said AIGI John L. Phillips of the Department of Treasury.
According to evidence presented during the guilty plea and sentencing hearings, as First National Bank’s financial condition began to deteriorate, the Defendants schemed to hide from the bank, members of the bank’s Board of Directors, and from federal regulators millions of dollars in non-performing loans. The Defendants accomplished their scheme by unlawfully loaning money to unqualified nominees to make interest and other payments on other non-performing loans; by enticing others to take over non-performing loans with hidden promises, side deals and other terms unfavorable to First National Bank; and by recruiting other banks to fund non-performing loans based upon fraudulent misrepresentations about the quality of the loans. To assist in their scheme, the Defendants falsified and fabricated numerous bank documents and records. First National Bank failed and was taken over by the FDIC on June 25, 2010. The FDIC estimates that First National’s failure will cost the Deposit Insurance Fund over $90 million.
This case was the result of a joint investigation conducted by Special Agent Amy Whitcomb of the Office of Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau; Special Agent Lance Endy of the FDIC Office of Inspector General; Assistant Special Agent In Charge Anthony Scott of the U.S. Department of Treasury Office of Inspector General; and, Forensic Auditor Karen Hartley of the United States Attorney’s Office. First Assistant United States Attorney James Durham and Assistant United States Attorney Jennifer Solari prosecuted the case on behalf of the United States.
Tuesday 24 June 2014
“Cookie Stuffing" Internet Fraud Schemer Pleads GuiltyRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Jefferson Bruce McKittrick, a resident of Mobile, Alabama, entered a guilty plea today before United States District Court Judge Kristi DuBose to a one-count Information charging conspiracy to commit wire fraud.
McKittrickadmitted that he andothers operated a fraud scheme, commonly known as “cookie stuffing,” using affiliate marketing programs. He created “forced clicks” by unsuspecting web shoppers, which allowed McKittrick and members of the conspiracy to receive commissions for sales they did not generate, thus defrauding legitimate advertisers and the company paying for the advertising. This was done primarily through Linkshare Corporation and Google, to victimize Fareportal, Inc. During the course of the conspiracy McKittrick received approximately $1,830,000.
McKittrick was operating several online accounts listed in his own name as well as several other accounts listed in other names. The placement of the “cookies” generated “forced clicks” from users who visited their sites without the user having visited their affiliated sites with the ads. The tracking cookie was “forcefully” loaded onto the users’ computers from the site with the ad which then created a fraudulent, “forced click” credit to McKittrick and others.
During the time the conspiracy operated, McKittrick emailed a member of the conspiracy as follows:
"Please dont tell anyone though and keep this venture between us, to keep footprints away and keep this method on the down low ..lol . . . ALso, wanted to let you know..That I have been perfecting another method I am doing..and I am banking MAJOR money with it.. The problem is, I cant bank that much in 1 account, I have to spread the earnings,..So if you want in on it.. I If you have a linkshare account..I can do it with you, and I will put starting out only 3K a month in it, because I have to start it slow, but then the next month go up to 4K then 5k and so on..etc..etc.. . . . . The linkshare will 100% be the number I say, because I could LITERALLY make 25K a day if I wanted too, but ..lol. It would get banned."
The majority of the e-mail correspondence between McKittrick and members of the conspiracy involved discussions about opening different accounts and methods of exploiting those accounts to receive the highest levels of revenue, all while avoiding detection and being shut down.
“Internet fraud has a devastating impact on our consumers, as advertising expenses are added to the cost of items the consumer buys ” U.S. Attorney Brown said. “We are committed to working with our law enforcement partners to stop internet fraud.”
McKittrick faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Monies and two boats seized from McKittrick have been administratively forfeited.
The matter was investigated by the Mobile Field Office of the U.S. Secret Service and was prosecuted by AUSA Deborah Griffin.
Affiliate marketing is internet performance-based marketing which, by using an individual’s websites or advertisements, directs traffic to another website in the “network” and receives credit for either pay per click (PPC) or pay per action (PPA) if the user travels to the website.
Youngstown Men Face Federal Firearms ChargeRead the Press Release
A federal grand jury returned a one-count indictment charging Clifford Cross, age 23, and Khaleb Bonner, age 24, both of Youngstown, Ohio, with being felons in possession of a firearm and ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about May 4, 2014, Cross and Bonner were in possession of a Sig Sauer, model P228, 9mm pistol and ammunition. Cross had been previously convicted of possession of cocaine in the Mahoning County, Ohio, Court of Common Pleas. Bonner had been previously convicted of trafficking cocaine in the Trumbull County, Ohio, Court of Common Pleas.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Youngstown Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wichita Gang Member Indicted on Federal Firearms ChargeRead the Press Release
WICHITA, KAN. – A Wichita gang member was indicted Tuesday on a federal firearms charge that resulted from an investigation into a shooting incident, U.S. Attorney Barry Grissom said.
Jermall Campbell, 32, Wichita, Kan., is charged with one count of unlawful possession of ammunition following a felony conviction. The crime is alleged to have occurred June 14, 2014, in Wichita, Kan.
Campbell initially was charged in a criminal complaint filed June 27 in U.S. District Court in Wichita. It is alleged Wichita police were called June 14 to a report of a shooting at 7007 E. Harry in Wichita. They found shell casings in the parking lot. Witnesses reported seeing Campbell, who is a documented member of the Neighborhood Crips street gang, carrying a gun when he tried to enter the club before the shooting and wrestled with a security guard. Police served a search warrant at Campbell’s residence.Campbell was convicted in a federal racketeering case filed in 2007 and sentenced to 64 months. Federal law prohibits a convicted felon from possessing a firearm.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
OTHER INDICTMENTSSteven J. Meisel, 47, Wellington, Kan., is charged with one count of distributing child pornography and one count of possessing child pornography. The crimes are alleged to have occurred in May and June 2014 in Sumner County, Kan.
Meisel initially was charged in a criminal complaint filed June 19 in U.S. District Court in Wichita. It is alleged that a Wichita police detective working with the Exploited and Missing Child Unit and the Internet Crimes Against Children Task Force identified child pornography on Meisel’s computer. It was being shared over a peer-to-peer network.
If convicted, he faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on the distribution charge, and a maximum penalty of 10 years and a fine up to $250,000 on the possession charge.
The Wichita Police Department, the Exploited and Missing Child Unit, the Internet Crimes Against Children Task Force and the Wellington Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Clint W. Cook, 30, Augusta, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 13, 2011, in Butler County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Steven Lee Fritts, 39, Wichita, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Feb. 15, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Angel Ivan Venegas, 20, Newton, Kan., and Lisa Ann Vela, 29, Newton, Kan., are charged with one count of possession with intent to distribute methamphetamine and one count of distributing methamphetamine. In addition, Venegas in charged with one count of carrying a firearm in furtherance of drug trafficking, one count of distributing methamphetamine, and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in April and June of 2014 in Harvey County, Kan.
If convicted, they face a maximum penalty of 20 years and a fine up to $1 million on each of the possession and distribution charges, and he faces a penalty of not less than five years on the charge of possessing a firearm in furtherance of drug trafficking. The Newton Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
In a superseding indictment, Ernesto Romo, 48, Wichita, Kan., Christian Lopez, 26, Phoenix, Ariz., Baldomero Villa, 25, Laveen, Ariz., Andrew Crane, 34, Wichita, Kan., Shawn Keevan, 34, Cassville, Mo., and Michael Carter, 53, Kansas City, Kan., are charged with one count of conspiracy to distribute methamphetamine. In addition, they face other counts including distribution of methamphetamine, interstate travel in furtherance of drug trafficking, unlawful use of a telephone in furtherance of drug trafficking and possession with intent to distribute methamphetamine. The crimes are alleged to have occurred at various times from Feb 2013 to May 2014 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Conspiracy: Not less than five years in federal prison and not more than 40 years and a fine up to $5 million.
Distribution, possession with intent to distribute methamphetamine: Not less than five years in federal prison and not more than 40 years and a fine up to $5 million on each count.
Interstate travel in furtherance of drug trafficking: A maximum penalty of five years and a fine up to $250,000 on each count.
Unlawful use of a telephone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $250,000.The Drug Enforcement Administration and the Sedgwick County Sheriff’s Office investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Ernesto Ortiz, 22, San Elizario, Texas, is charged with one count of possession with intent to distribute cocaine. The crime is alleged to have occurred Feb. 14, 2014, in Lyon County, Kan.
If convicted, he faces a penalty of not less than five and not more than 40 years and a fine up to $5 million. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
William McManaman, 33, Wichita, Kan., and William McGreevy, 30, Wichita, Kan., are charged with one count of conspiracy to commit money laundering. In addition, McManaman is charged with conspiracy to distribute 50 pounds of marijuana. The crimes are alleged to have occurred beginning prior to 2011 in Sedgwick County, Kan.
Upon conviction, the conspiracy to commit money laundering charge carries a maximum penalty of 20 years and a fine up to $500,000. The other charge carries a maximum penalty of five years and a fine up to $250,000. The Sedgwick County Sheriff’s Department and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Gerardo Guerrero-Arizmendi, 51, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found May 29, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Enforcement and Removal Operations for Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Arturo Garcia-Olivas, 24, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 18, 2014, in Pratt County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Enforcement and Removal Operations for Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Rene Urena-Cerrillo, 41, a citizen of Mexico, is charged with one count of unlawful possession of identification documents, two counts of aggravated identity theft, and one count of misusing a Social Security number. The crimes are alleged to have occurred in March and June 2014 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 15 years and a fine up to $250,000 on the charge of unlawful possession of identification documents, a mandatory two-year consecutive sentence on each count of aggravated identity theft, and a maximum penalty of five years and a fine up to $250,000 on the charge of misusing a Social Security card. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jackson G. Nyambane, 31, who is not a citizen of the United States, is charged with one count of unlawful possession of identification documents, one count of making a false statement to Homeland Security and one count of counterfeiting a Social Security card. The crimes are alleged to have occurred in October 2011 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 15 years and a fine up to $250,000 on the unlawful possession of an identification charge, and a maximum penalty of five years and a fine up to $250,000 on each of the other counts. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Tomas Serrato-Jaimes, 31, Las Vegas, Nev., is charged with one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute cocaine. The crime is alleged to have occurred June 20, 2014, in Hays, Kan.If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million on the methamphetamine, and a penalty of not less than five years and not more than 40 years and a fine up to $5 million on the cocaine charge. The Kansas Highway Patrol investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Waynesboro Chiropractor Sentenced to Prison for False Personal Injury ClaimRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a Waynesboro, PA chiropractor was sentenced today to 5 months in prison followed by 5 months of home detention for submitting a bogus personal injury claim to an insurance carrier.
In December 2013 Lawrence S. Herman, age 47, a resident of Frederick, Maryland and the owner/operator of “Herman Chiropractic” in Waynesboro, PA, pleaded guilty to a one-count Information charging him with False Statements in Health Care Matters. The plea was entered by Herman pursuant to an agreement with the government.
Herman was sentenced to the 5 months in prison followed by 5 months of home detention term by Senior United States District Court Judge Sylvia H. Rambo in Harrisburg. Judge Rambo also ordered Herman to serve 1 year on supervised release following his prison term and to pay a $600 fine and $100 special assessment.
The charges stemmed from a claim Herman submitted to the USAA insurance company in May of 2012 for injuries allegedly suffered in an August 16, 2011 automobile accident in Maryland. In May of 2012 Herman supported his claim with records that represented he had been treated by a chiropractor for neck and back injuries between August of 2011 and January of 2012. When USAA did not honor the claim, Herman hired a Baltimore area law firm and demanded $60,000 from USAA - $17,527 for reimbursement of his chiropractic treatment expenses and the remainder for pain and suffering.
During his guilty plea hearing Herman admitted the chiropractic treatment records were phony and were created, at his direction, by a chiropractor who worked for him in his Waynesboro office. To conceal the fact the chiropractor was his employee, Herman submitted the phony treatment records to USAA under a fictitious business letterhead he created. Herman was not seriously injured in the minor, fender-bender type accident; he participated in several 5K, 10K, Half-Marathon and Marathon foot races during the time period when he was supposedly being treated for his back and neck injuries between September and November of 2011.
The case was investigated by the Harrisburg Office of the FBI and was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Washington County Man Pleads Guilty to Firearms OffensesRead the Press Release
PITTSBURGH - A Washington County man pled guilty on Monday to violating federal firearms laws, United States Attorney David J. Hickton announced today.
Michael Howard, 29, of Venetia, Pa., was convicted of possessing firearms while he was using and/or addicted to a controlled substance. He was also convicted of providing false information on multiple occasions to a federal firearms licensee about his use of, or addiction to, a controlled substance. That is, during the process of making firearms purchases, Mr. Howard falsely represented that he was not a user of, or addicted to, a controlled substance. As Mr. Howard later admitted during an investigation into his many firearms purchases, he had been using heroin for years when he purchased the firearms.
Sentencing is scheduled to occur on Sept. 26, 2014, at 3 p.m., in the courtroom of United States District Judge Joy Flowers Conti.
The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennsylvania State Police investigated this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
U.S. Attorney Machen to Host Fourth Annual Youth SummitRead the Press Release
At Friendship Collegiate Academy in Northeast Washington
- Free Program Includes Musical Performances, Workshops, Information -WASHINGTON - U.S. Attorney Ronald C. Machen Jr., the U.S. Attorney’s Office for the District of Columbia, the Project Safe Neighborhoods Task Force, the Columbia Heights/Shaw Family Support Collaborative, the East River Family Strengthening Collaborative, and law enforcement and community partners are sponsoring a Youth Summit on Friday, June 27, 2014, at Friendship Collegiate Academy.
This year’s event will engage youth on the consequences and harms of marijuana, encourage young people to make responsible decisions to avert criminal behavior, and help them understand the consequences of violence. The event will be filled with dynamic speakers, entertainment, and invaluable resources. The guest emcee is DJ Flava of WKYS Radio (93.9 FM). Performers scheduled to appear include Young Motive, KRU3H, and Main Girl.
Youths from the District of Columbia are invited to the program, which runs from 10 a.m. to 4 p.m., and is free of charge. Friendship Collegiate Academy, 4095 Minnesota Avenue NE, is conveniently located directly across the street from the Minnesota Avenue Metro station in order to provide accessibility for students to attend.
This is the office’s fourth annual Youth Summit, which assembles young people from under-served neighborhoods in the District of Columbia to discuss the most pressing public safety challenges facing their communities. Previous summits have attracted more than 300 youth participants. The goal of the program is to reach out to area youth on current public safety topics in an informative and inspiring way. This year’s topics also include discussion about child safety, cyberbullying, and Internet safety.
Several collaborative partners will be coming together to present the day’s programs, including the Ward 3 and 4 D.C. Prevention Center; the Metropolitan Police Department; the Street Wize Foundation; Black Women for Positive Change; Friendship Collegiate Academy; the National Institute on Drug Abuse; the Street Wize Foundation; and the National Center for Missing and Exploited Children. The effort is supported by Project Safe Neighborhoods, a Department of Justice initiative aimed at reducing gun and gang crimes. People with questions or interest in bringing a youth group to the Youth Summit may contact Melanie Howard at the U.S. Attorney’s Office at (202)-252-6930 or [email protected].
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U.S. Attorney Machen to Host Fourth Annual Youth SummitRead the Press Release
At Friendship Collegiate Academy in Northeast Washington
- Free Program Includes Musical Performances, Workshops, Information -WASHINGTON - U.S. Attorney Ronald C. Machen Jr., the U.S. Attorney’s Office for the District of Columbia, the Project Safe Neighborhoods Task Force, the Columbia Heights/Shaw Family Support Collaborative, the East River Family Strengthening Collaborative, and law enforcement and community partners are sponsoring a Youth Summit on Friday, June 27, 2014, at Friendship Collegiate Academy.
This year’s event will engage youth on the consequences and harms of marijuana, encourage young people to make responsible decisions to avert criminal behavior, and help them understand the consequences of violence. The event will be filled with dynamic speakers, entertainment, and invaluable resources. The guest emcee is DJ Flava of WKYS Radio (93.9 FM). Performers scheduled to appear include Young Motive, KRU3H, and Main Girl.
Youths from the District of Columbia are invited to the program, which runs from 10 a.m. to 4 p.m., and is free of charge. Friendship Collegiate Academy, 4095 Minnesota Avenue NE, is conveniently located directly across the street from the Minnesota Avenue Metro station in order to provide accessibility for students to attend.
This is the office’s fourth annual Youth Summit, which assembles young people from under-served neighborhoods in the District of Columbia to discuss the most pressing public safety challenges facing their communities. Previous summits have attracted more than 300 youth participants. The goal of the program is to reach out to area youth on current public safety topics in an informative and inspiring way. This year’s topics also include discussion about child safety, cyberbullying, and Internet safety.
Several collaborative partners will be coming together to present the day’s programs, including the Ward 3 and 4 D.C. Prevention Center; the Metropolitan Police Department; the Street Wize Foundation; Black Women for Positive Change; Friendship Collegiate Academy; the National Institute on Drug Abuse; the Street Wize Foundation; and the National Center for Missing and Exploited Children. The effort is supported by Project Safe Neighborhoods, a Department of Justice initiative aimed at reducing gun and gang crimes. People with questions or interest in bringing a youth group to the Youth Summit may contact Melanie Howard at the U.S. Attorney’s Office at (202)-252-6930 or [email protected].
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Two Robbers Plead Guilty to Armed Robbery of Seven Convenience Stores During an Eight Day SpreeRead the Press Release
Used a Gun to Rob Seven Baltimore 7-Eleven Stores
Baltimore, Maryland – Monte Glascoe, age 23, of Baltimore, pleaded guilty today to robbery and brandishing a gun in furtherance of robbery. Yesterday, co-defendant Gary Cordell Howard, age 37, also of Baltimore, pleaded guilty to the same offenses.The guilty pleas were 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; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to their plea agreements, Glascoe and Howard robbed at least seven Baltimore 7-Eleven stores from July 18 to 26, 2013, located at: 3436 Wilkens Avenue; 5512 Park Heights Avenue; 2500 Liberty Heights Avenue; 6700 Brentwood Avenue; 211 West 28th Street; and 3204 Hollins Ferry Road. In each robbery, Glascoe pointed a gun at victim employees. The conspirators stole money from the cash registers and two of the employees, cigarettes and other merchandise, and a cell phone and folding knife belonging to two of the employees.
The defendants face a maximum sentence of 20 years in prison for robbery; and a mandatory minimum of seven years in prison consecutive to any other term imposed, and a maximum of life in prison, for using a gun in furtherance of robbery. U.S. District Judge William D. Quarles, Jr., scheduled Howard’s sentencing for August 26, 2014 at 1:00 p.m. and scheduled Glascoe’s sentencing for September 25, 2014 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Benjamin M. Block, who is prosecuting the case.
Two Jackson Residents Arrested for Sex Trafficking of ChildrenRead the Press Release
Jackson, Miss - Justin D. Hurst, 25, and Audrey Lashay Tillman, 27, both of Jackson, were arrested and appeared in federal court today pursuant to criminal complaints charging them with recruiting, enticing, transporting, providing and maintaining female children under the age of 18 to engage in commercial sex acts, announced U.S. Attorney Gregory K. Davis. Both Hurst and Tillman were held without bond pending a detention hearing which will be held on Thursday, June 26 at 2:00 p.m. before U.S. Magistrate Judge Linda R. Anderson.
On June 19, 2014, the FBI Child Exploitation Task Force conducted an undercover operation in support of a nationwide enforcement initiative called “Operation Cross Country VIII” aimed at deterring child exploitation throughout the United States. As a part of the operation, undercover officers responded to an internet ad on a site known to law enforcement to be used for prostitution. As a result, a 15 year old girl and a 17 year old girl, both victims of child sex trafficking, were rescued by law enforcement when they were brought to a Ridgeland, Mississippi hotel.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Tulsa Man Sentenced to 20 Years in Federal Prison for Money Laundering Conspiracy and Agrees to $117,000 Criminal Forfeiture JudgmentRead the Press Release
TULSA, Okla. — Moises Alberto Yanez, 40, of Tulsa, was sentenced by U.S. District Judge Claire V. Eagan on Friday, to serve 240 months in prison for conspiracy to commit money laundering, announced United States Attorney Danny C. Williams Sr. and R. Damon Rowe, Special Agent in Charge of Internal Revenue Service, Criminal Investigation.
According to court documents, from June 2011 through November 2012, Yanez admitted to making rental payments on two properties in Tulsa that were rented for the purpose of storing and distributing marijuana and methamphetamine. Yanez also admitted to making the rental payments using money he received from selling marijuana and methamphetamine, which he and other conspirators received from California, Texas, and elsewhere.
Other defendants who have pleaded guilty and have been sentenced in this investigation on various drug-related offenses are:
• Oscar Fuentes-Diaz
• Terry Leon King
• Maicol Nunez-Guardado
• Jose Robles Arechiga
• Orlando Keane Jordan
• Jennifer Madison Ramirez
• Luis Sigala
• John Mark McGinley will be sentenced on July 29, 2014United States District Court Judge Claire V. Eagan also entered a joint and several criminal forfeiture money judgment in the amount of $117,000 against Yanez, Fuentes-Diaz, Nunez-Guardado, and Arechiga.
The case was investigated by the Drug Enforcement Administration, the Internal Revenue Service, and the Tulsa Police Department. Assistant United States Attorney Janet S. Reincke prosecuted the case on behalf of the United States.Triple Bank Robber Pleads GuiltyRead the Press Release
CORPUS CHRISTI, Texas - Robert Perez Jr., 35, of Corpus Christi, has pleaded guilty to charges stemming from the robbery of three local banks, announced United States Attorney Kenneth Magidson.
At the hearing today, the court heard about a series of robberies Perez committed over a five-month period. The first robbery occurred on Jan. 8, 2014, at the Kleberg Bank located in Corpus Christi, during which he brandished a can of mace and threatened employees by claiming to have a gun. He fled on a bicycle which was later recovered by officers who learned it had been purchased at a local pawn shop with a credit card belonging to Perez. Surveillance also showed Perez purchasing the bicycle.
The next robbery occurred on April 14, 2014, at the IBC Bank in Corpus Christi. There, Perez pointed a can of mace at employees and again claimed he had a gun. After this robbery, a witness was able to provide information about the license plate of the vehicle in which he fled, which was also later linked to Perez.
During the third robbery, at another IBC Bank location in Corpus Christi, Perez also claimed to have a gun. Perez was arrested May 9, 2014, following a search at his residence. In his attic, agents discovered cash which included money traced to the May 5, 2014, robbery.
Perez pleaded guilty before U.S. Magistrate Judge B. Janice Ellington today and will later be sentenced by U.S. District Judge Nelva Gonzales Ramos. At that time, Perez faces up to 20 years in federal prison as well as a possible $250,000 fine. He will remain in custody pending that hearing.
The charges stem from an investigation by Corpus Christi Police Department and the FBI. This case is being prosecuted by Assistant U.S. Attorney Hugo R. Martinez.
Third Former State Corrections Official Pleads Guilty to Civil Rights ViolationRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green and Acting Assistant United States Attorney General Jocelyn Samuels announced today that a third former state corrections official has pled guilty to civil rights violations related to the beating of an inmate at the Louisiana State Penitentiary in Angola, Louisiana.
MARK SHARP, age 33, of Amite, Louisiana, has pled guilty to one count of deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, and one count of making a false statement to the FBI, in violation of Title 18, United States Code, Section 1001.
SHARP’s charges were based on his conduct while employed as a captain at the Louisiana State Penitentiary in Angola. According to the factual basis filed in connection with his guilty plea, on January 24, 2010, SHARP joined in a search to apprehend an inmate who had escaped from his assigned location. After the inmate was captured, SHARP and two other officers – Kevin Groom and C.B. -- were ordered to escort the inmate, who was handcuffed behind his back, to the prison’s medical unit. The three officers got into the bed of a truck with the inmate. SHARP admitted that, during the drive to the medical unit, he repeatedly struck the inmate with an asp baton. SHARP also saw C.B. kick the inmate in his head and shoulder area. SHARP then lied to the Federal Bureau of Investigation during the federal civil rights investigation of the beating.
Two other former state corrections officials have been charged and convicted in connection with the inmate beating. Kevin Groom and Jason Giroir have both been charged and pled guilty to falsifying records in a federal investigation and making false statements to the FBI. They await sentencing.
SHARP faces up to 15 years imprisonment, a fine up to $500,000, and up to 3 years of supervised release following a term of imprisonment.
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana, the Civil Rights Division of the U.S. Department of Justice, and the Federal Bureau of Investigation. It is being prosecuted by Trial Attorney AeJean (Angie) Cha of the Civil Rights Division and Assistant United States Attorney Robert W. Piedrahita.
Texas Man Pleads Guilty to Rhino and Ivory Smuggling ConspiracyRead the Press Release
Ning Qiu, a resident of Frisco, Texas, and an appraiser of Asian art, pleaded guilty today in federal court to participating in an illegal wildlife smuggling conspiracy in which rhinoceros horns and objects made from rhino horn and elephant ivory worth nearly $1 million were smuggled from the United States to China.
The guilty plea was announced by Sam Hirsch, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, John Malcolm Bales, U.S. Attorney for the Eastern District of Texas, and Dan Ashe, Director of the U.S. Fish and Wildlife Service (USFWS).
Qiu, 43, who has worked as an Asian antique appraiser for seven years, pleaded guilty today before U.S. Magistrate Judge Don D. Bush in Plano, Texas, to a one count information charging him with conspiracy to smuggle and violate the Lacey Act.
Qiu was identified as part of “Operation Crash” – a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns and other protected species.
According to documents filed in federal court, Qiu admitted to acting as one of the three antique dealers in the United States paid by Zhifei Li, the admitted “boss” of the conspiracy, to help obtain wildlife items and smuggle them to Li via Hong Kong. Li was sentenced on May 27, 2014, in federal district court in Newark, New Jersey, to serve 70 months in prison for his leadership role in the smuggling conspiracy. Li arranged financing, negotiated the price and paid for rhino horn and elephant ivory. He also gave instructions on how to smuggle the items out of the United States and obtained the assistance of additional collaborators in Hong Kong to receive the smuggled goods and then smuggle them to him in mainland China.
“This is yet another step toward dismantling a sophisticated and global network of criminals whose greed is driving endangered animals to extinction,” said Acting Assistant Attorney General Hirsch. “We will continue to investigate and bring to justice those involved in the illicit trade of the world’s wildlife and will work with our international partners to battle the poaching, corruption, and transnational crime that goes along with it.”
“I am pleased that the Eastern District of Texas could be a part of the ‘Operation Crash’ investigation as well as the guilty plea today, and I congratulate the investigative team for a job well done,” said U.S. Attorney Bales. “The criminal activity undertaken by the defendant in this case is a stark reminder that this matter is not about serving Asian cultural and medicinal practices; it’s about greed, organized crime and the depletion of a species that – without our focused efforts to fight this trade – may not be around for our children to see.”
“This guilty plea by another participant in one of the largest criminal trafficking rings we’ve ever investigated – as well as the unprecedented jail time given to the rings’ leader last month – serves notice to other poachers and smugglers that we are clamping down hard on those who break international wildlife laws,” said U.S. Fish and Wildlife Service Director Ashe. “Working with the Department of Justice and other federal and international law enforcement agencies, we will continue to relentlessly pursue criminals whose greed and indifference to life are fueling the continued slaughter of rhinos and other vulnerable species in the wild.”
The rhinoceros is an herbivorous species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by more than 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
In pleading guilty, Qiu admitted that he worked at an auction house in Dallas as an appraiser of Asian artwork and antiques, specializing in carvings made from rhinoceros horn and elephant ivory. Qiu admitted to meeting Li in 2009 through his work at the auction house, and then entering into a conspiracy with Li whereby Qiu traveled throughout the U.S. to purchase raw and carved rhinoceros horns and elephant ivory for Li, often receiving specific instructions from Li on which items to buy and how much to pay. Upon purchasing the items, Li transferred funds directly into Qiu’s bank accounts in the U.S. and China. After acquiring the items for Li, Qiu arranged for them to be smuggled to a location in Hong Kong, which was provided by Li.
As part of his plea, Li admitted that he sold raw rhinoceros horns worth approximately $3 million – approximately $17,500 per pound – to factories in China where the horns are carved into fake antiques known as zuo jiu (which means “to make it as old” in Mandarin). In China, there is a centuries-old tradition of drinking from intricately carved “libation cups” made from rhinoceros horn. Owning or drinking from such a cup is believed by some to bring good health, and true antiques are highly prized by collectors. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including recently carved fake antiques. The leftover pieces from the carving process were sold for alleged “medicinal” purposes even though rhino horn is made of compressed keratin, the same material in human hair and nails and has no proven medical value.
Between 2009 and 2013, Qiu purchased and smuggled to Hong Kong at least five raw rhinoceros horns weighing at least 20 pounds. Qiu smuggled the raw rhino horns by first wrapping them in duct tape, hiding them in porcelain vases and falsely describing them on customs and shipping documents, including by labeling them as porcelain vases or handicrafts.
As part of the plea agreement, having considered Qiu’s cooperation and assistance in securing a conviction for Li, the government agrees to recommend to the sentencing judge that Qiu serve a 25-month prison sentence and pay a $150,000 fine. Sentencing will be before District Court Judge Richard Schell on a date to be determined by the court.
The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, the U.S. Attorney’s Office for the Eastern District of Texas and the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney James Noble of the Eastern District of Texas and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.Tax Preparer Sentenced for Defrauding the IRSRead the Press Release
MINNEAPOLIS— Today in federal court, United States District Court Judge Ann D. Montgomery sentenced Ieisha Smith to 24 months in federal prison for devising and executing a scheme to defraud the Internal Revenue Service (“IRS”) by filing fraudulent tax returns for clients. Smith, who was indicted on December 3, 2012, pleaded guilty on May 29, 2014 to one count of False Claims.
In her plea agreement, Smith admitted that she began the scheme in February 2009, when individuals came to her home for assistance in filing their income taxes. Specifically, she filed false tax returns on their behalf and in those returns falsely claimed that taxes had been withheld and refunds were due, all of which she knew to be false. In the scheme, Smith attempted to steal $765,137 from the IRS. The IRS incurred an actual loss of $362,246.
This case was the result of an investigation by the IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
According to the IRS, approximately 60 percent of taxpayers use tax professionals to prepare and file their tax returns, with these paid preparers now collectively responsible for more than 80 million individual tax returns annually. “Tax return preparer fraud” is one of the IRS’s “Dirty Dozen Tax Scams.” For more information about the fight against tax fraud or how to choose a reliable tax return preparer, visit http://www.irs.gov/uac/Tips-for-Choosing-a-Tax-Return- Preparer.Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
State Auditor Pleads Guilty to Theft from A Federal ProgramRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today another conviction in the ongoing federal and state investigation into corruption at the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS). The DCFS has cooperated fully and provided valuable assistance with the investigation.
COREY S. POLK, age 33, of Baton Rouge, Louisiana, pled guilty today before Judge James J. Brady to a Bill of Information charging him with theft from a federally funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A), and POLK admitted to the forfeiture allegation. He faces up to 10 years imprisonment, up to three years of supervised release following imprisonment, a fine up to $250,000, restitution to the victim, and forfeiture of the proceeds of his criminal activity. His sentencing date has not yet been set.
POLK was employed with DCFS’s Bureau of Auditing and Compliance Services, which was responsible for safeguarding assets against theft and unauthorized use, for ensuring that transactions were properly authorized and recorded, and for ensuring compliance with management policies and federal and state laws and regulations. During the period he was employed with this department, DCFS received over a billion dollars annually in federal funds.
At today’s hearing, POLK admitted to submitting fraudulent reimbursement receipts to receive money for official state travel that did not occur. The fake receipts that were submitted were signed both by POLK and by DCFS Audit Director, Delrice Augustus, who pled guilty to his involvement in the scheme on May 28, 2014. When the requested amount of reimbursement would be received, POLK and Augustus would split the fraudulent payments. POLK also admitted to using state purchase cards to pay for hotel suites in New Orleans for personal use and not for official state business. A third DCFS state auditor involved in this scheme, Kaneasha L. Goston, pled guilty June 19, 2014.
U.S. Attorney Green stated: “The United States Attorney’s Office, along with our state and federal partners, are committed to safeguarding all types of programs that are taken advantage of by fraudsters. This case is a great example of federal and state agencies working together effectively.”
This matter is being handled by the United States Attorney’s Office, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. This matter is being prosecuted by Assistant United States Attorney Corey R. Amundson, who serves as the First Assistant and Chief of the Criminal Division, and Special Assistant United States Attorney J. Brad Casey.
South Euclid Attorney Ordered to Pay $523,000 in Restitution, Placed on Home ConfinementRead the Press Release
A South Euclid attorney was ordered to pay $523,253 in restitution and was sentenced to six months of home confinement for failing to report and pay employment taxes, said United States Attorney Steven M. Dettelbach and Kathy Enstrom, Special Agent in Charge of the IRS' Cincinnati Field Office.
Ronald L. Rosenfield, 70, pleaded guity to a criminal information earlier this year.
“The IRS Criminal Investigation Division takes these violations of law very seriously,” Enstrom said. "Employment tax fraud can also impact employees, who may see future benefits such as social security, Medicare and Unemployment Compensation reduced or eliminated because of their employers not complying with the law.”
The unpaid taxes consisted of income taxes and FICA taxes withheld from the wages paid by his law firm, Ronald Rosenfield Co., L.P.A., including his own wages, for the eighteen consecutive calendar quarters from December 2006 through March 2011, according to the information. The information also alleged that Rosenfield failed to report and pay an unspecified amount of additional employment taxes for all of the prior quarters dating back to June 2001.
At all relevant times, Rosenfield retained a national payroll firm, which prepared the law firm’s required employment tax returns for him to file with the Internal Revenue Service. Rosenfield, however, did not file any of those returns and made no payments of the taxes reported on those returns, according to the information. Moreover, the information alleged that Rosenfield claimed credits on his personal income tax returns for his unpaid income tax withholdings.
The case was prosecuted by Assistant United States Attorney Justin J. Roberts, following an investigation by the Internal Revenue Service – Criminal Investigation, Independence, Ohio.
Six Charged in Manhattan Federal Court for Operating Illegal Prescription Drug Ring Out of Bronx Grocery StoreRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced today criminal charges against CARLOS PANIAGUA, a/k/a “Carlos,” a/k/a “Carlito,” a/k/a “Cee-lo” (“CARLOS PANIAGUA”), JOSE OSVALDO PANIAGUA JR., a/k/a “Osvaldo,” a/k/a “Calvo” (“OSVALDO PANIAGUA JR.”), JOSE RAFAEL PANIAGUA, a/k/a “Rafaelito” (“RAFAEL PANIAGUA”), JOSE OSVALDO PANIAGUA SR., a/k/a “Nano,” a/k/a “Viejo” (“OSVALDO PANIAGUA SR.”), JOAN TORRES, a/k/a “Ronco,” and JOSE BORGEN-REYES, a/k/a “Benny,” a/k/a “Benny Blanco,” a/k/a “Scar,” for operating a massive prescription drug diversion ring, including the trafficking of both oxycodone and expensive HIV medication, out of Joaquin Grocery & Deli, a grocery store in the Bronx. CARLOS PANIAGUA, JOSE OSVALDO PANIAGUA JR., and TORRES were arrested yesterday and were presented in Manhattan federal court before Magistrate Judge James C. Francis IV. JOSE OSVALDO PANIAGUA SR. surrendered to authorities last night and will appear in Manhattan federal court before Magistrate Judge Michael H. Dolinger later today. BORGEN-REYES was previously in custody in Burlington County, New Jersey, and will be transferred to federal custody at a later date. JOSE RAFAEL PANIAGUA remains at large. Concurrently with the arrests of the defendants yesterday, and with the assistance of the New York City Law Department, the doors to the Joaquin Grocery were padlocked pursuant to a judicial order from Bronx Supreme Court.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, instead of earning an honest living at their grocery store, the defendants turned it into a drug market that took advantage of impoverished Medicaid beneficiaries, spawned violence in its neighborhood, and endangered public health and safety. Today the defendants face prison time for their actions, and the Joaquin Grocery is thankfully closed for business.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, the defendants placed their own financial gain over the public’s health and safety. They defrauded Medicaid and the U.S. taxpayers while threatening the health of patients whose prescriptions were filled with diverted, mishandled and repackaged medications. We will continue to work with our law enforcement partners, including the NYPD, to prevent the illegal sale and misbranding of pharmaceuticals.”
Police Commissioner William J. Bratton said: “These individuals illegally amassed large quantities of prescription narcotics for resale and endangered the health of potential recipients using dangerous methods of repackaging and storage. Thanks to the efforts of our investigators, our federal law enforcement partners, and the prosecutors involved in this case, this illegal prescription drug ring has been shut down.”
According to the Complaint unsealed yesterday in Manhattan federal court, and statements made yesterday in court, it is alleged that:
All of the defendants except BORGEN-REYES currently operate Joaquin Grocery & Deli (the “Joaquin Grocery”), a grocery store at 598 Morris Avenue in the Bronx, New York. In addition to selling grocery products, the Joaquin Grocery has operated for years as a marketplace for Medicaid Beneficiaries to sell their Medicaid-reimbursed prescription medication, including Oxycontin, Percocet, and expensive HIV medications. The successful drug trade at the Joaquin Grocery has led to numerous acts of violence both inside the store and in its immediate vicinity. For example, in October 2010, a former competitor of the Joaquin Grocery was shot twice, including once in the head, while attempting to steal customers from the Joaquin Grocery just a few stores down. In March 2014, OSVALDO PANIAGUA SR. and RAFAEL PANIAGUA were held up at gunpoint inside the Joaquin Grocery in an apparent drug robbery.
The drug transactions at the Joaquin Grocery typically took place in a small room behind a door at the back of the store, where Medicaid Beneficiaries provided their pill bottles to the defendants for cash. With respect to non-controlled medication such as HIV medication, the defendants removed the patient labels from the medication bottles with lighter fluid, which contains toxic substances, so that the bottles appeared brand new and could eventually be re-sold to pharmacies. With respect to controlled medication such as Oxycontin, the defendants amassed large quantities of pills and re-sold them on the street.
Search warrants were executed at the Joaquin Grocery and at 532 Tinton Avenue, Apt. 1C, which is a stash-house used by the Paniaguas. Search warrants were also executed on two cars that the Paniaguas used. Approximately 1,000 bottles of prescription medication and hundreds of loose pills (both controlled and non-controlled substances) were seized in the store and the stash location. Agents also seized a machete at the store, and, from the stash location, lighter fluid and cotton balls (which are typically used to remove patient labels from the medication so it can be re-sold). Agents also seized thousands of dollars in cash.
CARLOS PANIAGUA, JOSE OSVALDO PANIAGUA JR., and RAFAEL PANIAGUA are brothers who were in charge of the drug business at the Joaquin Grocery. JOSE OSVALDO PANIAGUA SR. is their father, who assisted in the purchase of prescription drugs at the Joaquin Grocery. TORRES provided armed security, operated as a lookout, and also engaged in the purchase of prescription drugs at the Joaquin Grocery. BORGEN-REYES previously played the same role as TORRES until 2012.
CARLOS PANIAGUA, OSVALDO PANIAGUA JR., RAFAEL PANIAGUA, OSVALDO PANIAGUA SR., and TORRES, of the Bronx, New York, and BORGEN-REYES, of Paterson, New Jersey, are each charged with one count of engaging in a conspiracy to distribute and possess with the intent to distribute a controlled substance and one count of engaging in a conspiracy to commit the unlawful misbranding, adulteration and wholesale distribution of prescription drugs. They each face a maximum of 25 years in prison (20 years on Count One and 5 years on Count Two). The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and NYPD, and thanked the New York City Law Department for its assistance.
Mr. Bharara also thanked the the FBI’s Health Care Fraud Task Force for their work in this investigation, which he noted is ongoing. The New York FBI Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force comprises agents, officers, and investigators from the FBI, NYPD, the New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management Inspector General, U.S. Food and Drug Administration, New York State Attorney General’s Office, New York State Office of Medicaid Inspector General, New York State Health and Hospitals Inspector General, and the National Insurance Crime Bureau.
This case is being handled by the Office’s Violent and Organized Crime Unit and Narcotics Unit. Assistant U.S. Attorney Russell Capone is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Jose Carlos Paniagua et al Complaint (signed)
Shiprock Man Sentenced to Federal Prison for Setting Fire to Former Girlfriend’s ResidenceRead the Press Release
ALBUQUERQUE – Dan Curtis Thompson, 33, of Shiprock, N.M., was sentenced today to 35 months in federal prison followed by five years of supervised release for his conviction on an arson charge. Thompson also was ordered to pay $57,415.02 to the Navajo Housing Authority to pay for damage caused by his criminal conduct. The sentence was announced by U.S. Attorney Damon P. Martinez and John Billison, Director of the Navajo Nation Division of Public Safety.
Thompson and his twin sister, Christina Thompson were arrested in Oct. 2013, on an indictment charging them with willfully and maliciously setting fire to an occupied rental unit at the Navajo Housing Authority in Ojo Amarillo, located on the Navajo Indian Reservation, on Jan. 9, 2013.
On Feb. 18, 2014, Thompson pled guilty to the indictment and admitted setting fire to his former girlfriend’s residence on Jan. 9, 2013. Thompson resided in the victim’s apartment until she ejected him after he had a “forceful physical interaction” with her. As Thompson’s resentment towards the victim grew, he began putting into place plans to burn her residence. Thompson’s sister drove Thompson to the victim’s residence on Jan. 9, 2013, where he shattered a window so he could unlock the door and enter the residence. Once inside, Thompson poured gasoline in the residence; after igniting the gasoline, Thompson fled from the residence with his sister’s assistance. Thompson admitted that he did not check to see if anyone was in the residence when he lit the fire, and that he burned the victim’s residence to retaliate against her.
Christina Thompson entered a guilty plea to the indictment on April 11, 2014, and admitted helping her brother set fire to the victim’s residence. Christina Thompson admitted driving her brother to the victim’s residence where he set the residence on fire. She also admitted helping her brother flee from the site of the arson. Christina Thompson was remanded into federal custody after entering her guilty plea and remains detained pending her sentencing hearing, which has yet to be scheduled.
This case was investigated by the Shiprock Division of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Romanian National Pleads Guilty to International Internet Fraud SchemeRead the Press Release
LEXINGTON, KY - An Eastern European man has admitted his involvement in an international internet fraud ring that defrauded hundreds of purchasers of motor vehicles across the U.S.
Petrica Octavian Stoian, 27, who was extradited from Hungary to the U.S. in June 2013, pleaded guilty in federal court on Monday to one count of conspiring to commit wire fraud.
As part of the scheme, the conspirators used websites, such as eBay.com and Autotrader.com to offer non-existent vehicles for sale. Members of the conspiracy negotiated with victims via telephone and e-mail and instructed them to electronically transfer the purchase funds using Western Union, MoneyGram, or bank wire transfers. The funds were first received by conspiracy members in the U.S. and then resent to co-conspirators abroad.
During his plea in federal court, Stoian admitted his involvement in the conspiracy. Specifically, Stoian acknowledged that he used numerous fraudulent identities to open bank accounts in Europe, which were used to receive funds from the U.S.
Eight other members of the conspiracy have already pleaded guilty and seven are currently awaiting sentencing. Stoian is scheduled to be sentenced on September 22, 2014 before U.S. District Judge Joseph M. Hood. He faces up to 20 years in prison and a $250,000 fine. However, the Court must consider the U.S. Sentencing Guidelines and applicable federal statutes before imposing a sentence.
This investigation was conducted by special agents with the U.S. Secret Service, Lexington Resident Office, in coordination with international law enforcement agencies.
Assistant U.S. Attorneys Erin Roth and Jordi de Llano prosecuted this case on behalf of the federal government.
Rochester Woman Pleads Guilty to Conspiring to Defraud the United StatesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Kelly Nicole Borger, 31, of Rochester, N.Y., and Los Angeles, CA, pleaded guilty before U.S. District Judge David G. Larimer to conspiring to defraud the United States. The charge carries a maximum sentence 20 years in prison, a fine of $1,064,702, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that from April 2011 to April 2012, Borger conspired with Michael Carney of Los Angeles, CA, to prepare and submit false income tax returns. Borger emailed Carney the names and other identifying information of 40 individuals in Rochester known to Borger. Carney then prepared 50 fraudulent tax returns in the names of these individuals claiming undeserved tax refunds totaling $532,351. Borger received at least $169,000 for her role in conspiracy.
The plea is the culmination of an investigation by Special Agents of the Internal Revenue Service, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
Sentencing is scheduled for September 17, 2014 at 3:00 p.m. before Judge Larimer.Rochester Doctor Sentenced for Illegal Drug TraffickingRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that John E. Maye, 59, of Rochester, N.Y., who was convicted following a federal jury trial of unlawful distribution and dispensing of a controlled substance, was sentenced to 12 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Frank T. Pimintel, who handled the case, stated that between 2004 and 2006, the defendant, a licensed physician, authorized nearly 10,000 prescriptions for medications such as Hydrocodone, Xanax, Loritab, Vicodin, Valium, and Ambien. Maye issued the prescriptions over the internet without ever seeing the estimated 12,000 patients. Evidence presented by the Government at trial showed that the defendant grossed $1,100,000 through this activity.
“This doctor took an oath to ‘first, do no harm,’” said U.S. Attorney Hochul. “Instead of complying with this promise, Maye used his medical practice as a front to become one of the largest drug dealers this area has seen. Coming at a time when the abuse of opiate-based pills has become a national epidemic, the efforts of the DEA and FDA in investigating this case, and the jury’s actions in convicting this defendant, must all be commended. And while all of us must continue to attack the perplexing opiod/heroin problem with demand-side programs, this case demonstrates that law enforcement can and will act forcefully with respect to those who supply the drugs – including doctors.”
“DEA Acting Special Agent in Charge James J. Hunt stated, "One of DEA’s top priorities is to identify those who facilitate opioid abuse throughout our towns, counties, states and nation and this conviction earmarks law enforcement’s goal. Throughout the past two years, DEA investigations that focused on the diversion of controlled substance pharmaceuticals and listed chemicals have soared resulting in a 213% increase in arrests. The arrest and conviction of Dr. Maye signifies how drug law enforcement has adapted traditional drug investigation techniques to allow for the identification of prescription drug trafficking organization’s sources of supply, such as Dr. Maye, and successfully bring them to justice.”
“The defendant in this case demonstrated blatant disregard for the health and welfare of the general public by illegally distributing controlled prescription drugs via the internet," said Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration's Office of Criminal Investigations, New York Field Office. "We commend the US Attorney's office and our law enforcement partners for their dedicated and collaborative efforts in pursuing this prosecution."
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division, and the Food and Drug Administration, Office of Criminal Investigations, under the direction of Mark Dragonetti, Special Agent in Charge, New York Field Office.Rochester Doctor Pleads Guilty to Defrauding University of RochesterRead the Press Release
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Doron Feldman, 54, of Williamsville, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to conspiracy to commit mail fraud. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine or both.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the defendant practiced as anesthesiologist for CGF Anesthesia and Associates in Buffalo, N.Y. CGF provided anesthesia services to patients undergoing surgery at Strong Memorial Hospital, Highland Hospital and other medical facilities in the Rochester, N.Y. area. Between September 2007 and December 2009, Feldman, along with co-defendant Debra Bulter and others, devised a scheme to defraud and obtain money from the Department of Anesthesiology at the University of Rochester.
In September 2007, fraudulent invoices were submitted to the Department of Anesthesiology for services that were never provided by Feldman. In her position as Program Administrator for the department, Debra Bulter approved payment of the fraudulent invoices. From 2008 through 2010, the Department of Anesthesiology paid fraudulent fees totaling approximately $1,460,000 with the defendant receiving approximately $630,000 of that amount.
“Attempts to steal money are always wrong, but when the scheme involves health care, such fraud drives up the costs for all Americans,” said U.S. Attorney Hochul. “What makes this crime even worse is that the defendant violated his oath, his employer and the public.”
Debra Bulter has been convicted of conspiracy to commit mail fraud and money laundering and is awaiting sentencing.
The plea is the culmination of a joint investigation on the part of the Internal Revenue Service, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, and the United States Postal Inspection Service, under the direction of Shelly Binkowski, Acting Inspector in Charge, Boston Division, United States Postal Inspection Service.
Sentencing is scheduled for September 24, 2014 at 3:00 p.m. before Judge Gerace.Rhonda Wright Sentenced to over Nine Years in Prison for Distribution of Methamphetamine in Great FallsRead the Press Release
GREAT FALLS) The United States Attorney's Office announced that RHONDA LEE WRIGHT, 48, of Richland, Washington, was sentenced to a term of 110 months' imprisonment, to be followed by five years on supervised release, on June 19, 2014, before U.S. District Judge Brian M. Morris. Wright was sentenced in connection with her March 18, 2014, guilty plea to possession with intent to distribute methamphetamine.
Assistant U.S. Attorney Jessica Betley told the Court in an Offer of Proof that in early February 2012, Great Falls law enforcement received information that a man from the Tri-Cities area in Washington state wanted to sell methamphetamine in Montana where he could obtain a greater profit. Law enforcement introduced an undercover agent into the investigation who learned the man and his wife, Rhonda Wright, the defendant, were willing and able to distribute methamphetamine to purchasers in Great Falls. On February 9, 2012, Wright told the agent that she and her husband would bring methamphetamine to Great Falls and asked for a $2000 up-front payment on a $5000 transaction. She asked that it be sent by "money gram" and provided her full name, the appropriate store, and zip code.
On February 11, 2012, the defendant and her husband traveled to Great Falls where they met the undercover agent. Wright produced a bread crumb container and unscrewed the bottom of the container, revealing a plastic baggie containing methamphetamine. The undercover agent paid an additional $30000 and took the methamphetamine. The methamphetamine from this transaction was sent to the DEA Laboratory. The lab concluded this substance contained 55.3 grams of actual (pure) methamphetamine.
The defendant, her husband, and the undercover agent agreed to meet again in Great Falls on February 14, 2012. After being confronted by law enforcement, agents searched the defendant's car. The largest amount of methamphetamine was concealed in a lemonade can with a hidden compartment under a false top. The DEA laboratory tested this methamphetamine and found in contained 99.9 grams of actual methamphetamine. Agents found an additional 2.9 grams of actual methamphetamine in a Pringles can with a false bottom.
The term "actual" methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
This investigation was conducted by the Great Falls Police Department and the United States Department of Homeland Security, Homeland Security Investigations.
Rapid City Man Indicted for Failing to Update Sex Offender RegistrationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Delbert Bad Yellow Hair, age 75, was indicted on May 20, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 19, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine, lifetime of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between October 2013 and April 2014, Bad Yellow Hair failed to update his sex offender registration as required.
The charge is merely an accusation and Bad Yellow Hair is presumed innocent until and unless proven guilty.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Bad Yellow Hair was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Prison Inmate Pleads Guilty to Conspiracy to Smuggle Drugs and Contraband into the Taft Correctional FacilityRead the Press Release
FRESNO, Calif. —Gerardo Alvarez-Montanez, 32, an inmate at the Taft Federal Correctional Facility, pleaded guilty Monday to conspiracy to provide and possess contraband in prison, United States Attorney Benjamin B. Wagner announced.
According to court documents, between November 2013 and February 27, 2014, Alvarez-Montanez recruited and conspired with a correctional officer to smuggle cellphones, cash, alcohol, heroin and methamphetamine into the prison in return for the payment of cash.
Correctional officer Ramon Cano, 27, of Bakersfield was charged with acceptance of a bribe by a federal official and possession with intent to distribute heroin and methamphetamine. At a status conference for Cano on Monday, a change of plea hearing was scheduled for July 28, 2014, at 10:00 a.m.
This case was the product of an investigation by the Federal Bureau of Investigation and the Office of the Inspector General, U.S. Department of Justice. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Alvarez-Montanez is scheduled to be sentenced by United States District Judge Anthony W. Ishii on September 15, 2014. Alvarez-Montanez faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Princeton Man Pleads Guilty to Distributing Child PornographyRead the Press Release
MINNEAPOLIS — Yesterday in federal court, a 32-year-old Princeton man pleaded guilty to one count of Distribution of Child Pornography. William C. E. Strobel, who was indicted on February 19, 2014, entered his guilty plea before United States District Judge Donovan W. Frank.
In his plea agreement, Strobel admitted that between February 2010 and December 2011 he accessed a peer-to-peer file sharing program and traded images and videos depicting the sexual exploitation of children. The defendant also admitted that he possessed on his computers and other digital media more than 20,000 images and more than 600 videos depicting minors, including children under the age of 12, engaged in sexually explicit conduct.
For his crime, Strobel faces a possible maximum sentence of 40 years in federal prison. Judge Frank will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Princeton Police Department. It is being prosecuted by Assistant United States Attorney Karen B. Schommer.
This case was brought as part of Project Safe Childhood (“PSC”), 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 U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Pennsylvania Man Sentenced to 27 Months in Prison for Stealing More Than 900 Pieces of Verizon Wireless MerchandiseRead the Press Release
NEWARK, N.J. - A Pennsylvania man was sentenced today to 27 months in prison for misappropriating over 900 cellular telephones, handheld devices and accessories belonging to Verizon Wireless and selling those items online for a profit, U.S. Attorney Paul J. Fishman announced.
Defense counsel: Wayne Powell Esq., Cherry Hill, N.J.
James Hopkins, 35, of Telford, Pa., previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with mail fraud. Judge Walls imposed the sentence in Newark federal court.
According to documents filed in this case and statements made in court:
Hopkins worked as an account executive at a branch office for Verizon Wireless in Trevose, Pa. From February through November 2009, Hopkins placed numerous orders for Verizon Wireless cellular telephones, handheld devices and accessories in the names of existing Verizon Wireless customers without their knowledge. After arranging for the merchandise to be shipped to the home of a relative in New Jersey, the defendant manipulated Verizon’s computer database to conceal the fraudulent orders and shipments. Hopkins received $328,517 worth of stolen Verizon Wireless merchandise, which he sold on eBay for a profit of $272,290.
In addition to the prison term, Judge Walls sentenced Hopkins to serve two years of supervised release, ordered him to pay $303,623 in restitution, and forfeit $272,290.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Joseph B. Shumofsky of the U.S. Attorney’s Office Economic Crime Unit in Newark.
14-231Pediatrician Arrested on Child Pornography Related ChargesRead the Press Release
BOSTON – A Mashpee man, who is a semi-retired pediatrician, was arrested this morning, charged with possessing and distributing child pornography.
Dr. Daniel J. O’Hern, 64, was charged by complaint of possession of child pornography and distribution and attempted distribution of child pornography.According to the affidavit, a search was conducted at O’Hern’s home this morning following an investigation into the use of peer-to-peer (P2P) file sharing programs. During the search, numerous digital devices were seized including computers, hard drives and other media storage devices. According to the affidavit, the preliminary review uncovered numerous images of children being sexually exploited, including pubescent minor females.
O’Hern appeared before Magistrate Judge Robert B. Collings in Boston today for an initial appearance. He will remain in custody pending his detention hearing on Friday, June 27 at 1:45 p.m.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
If convicted, O’Hern faces up to 20 years on the distribution counts with a minimum mandatory of five years in prison and a lifetime of supervised release and up to 10 years in prison on the possession charge with a lifetime of supervised release.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Chief Rodney Collins of the Mashpee Police Department; and Chief Paul MacDonald of the Barnstable Police Department made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys Offices and the Criminal Divisions CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Owner of Welding Supply Business Charged with Illegal Transportation of Hazardous MaterialsRead the Press Release
The United States Attorney’s Office announced the filing yesterday of a one-count information charging Raymond George, age 65, with illegal transportation of hazardous materials in connection with his operation of George Welding & Supply in Montoursville, Pennsylvania.
According to United States Attorney Peter Smith, the information alleges that from January 2001 through January 2012, George fraudulently certified that cylinders containing compressed gases used in the welding industry were properly tested and found to be safe. The information alleges that George’s business was not authorized to test cylinders, but that George applied false markings to the cylinders which certified that they had in fact been tested. He then leased the fraudulently marked cylinders to his customers.
The government also filed a plea agreement with the defendant which must be approved by the Court.
If convicted of the offense charged in the information, George faces a maximum penalty of 5 years in prison, a maximum fine of $250,000, and a supervised release term of three years.
The case was investigated by the United States Department of Transportation, Office of Inspector General, Office of Investigations. Prosecution has been assigned to Assistant United States Attorney George J. Rocktashel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Owner of $14.5 Million Telemarketing Scam Surrenders in Southern IllinoisRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Kristina R. Cameron, 35, of Palm Beach Gardens, Florida, surrendered herself to the United States Marshals Service in East St. Louis, Illinois, yesterday in response to an arrest warrant issued by the United States District Court for the Southern District of Illinois. The arrest warrant was issued on June 17, 2014, after a federal grand jury returned an Indictment charging Cameron with conspiracy to commit wire fraud and mail fraud. The charge carries a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
The Indictment alleges that Cameron was one of the owners of C&G Marketing Associates, LLC, a Florida corporation which, in 2009, defrauded consumers across the continent using the fictitious name, Premier Timeshare Solutions (“PTS”). PTS telemarketers worked in an office building in West Palm Beach, Florida. From there, they placed phone calls to timeshare owners, falsely representing or implying that the company had found someone who wanted to buy the person’s timeshare. In exchange for an advance fee that typically exceeded $1,000, the PTS telemarketers promised to handle all the details of the sale and send the victims the proceeds after closing. Once the victims had paid the advance fee, however (usually by giving the telemarketer their credit card information), the fraudulent company simply pocketed the money. There were no interested buyers, the closings did not occur, and the timeshares were not resold.
Victims who called PTS to check on the status of their transactions were directed to customer service representatives, managed by PTS co-owner Jose Goyos, whose goal was to perpetuate the fraud by delaying and discouraging chargebacks and complaints. To accomplish that goal, representatives would lie to victims, assuring them that despite some phony, unexpected delay, their timeshare unit was still going to be sold. Repeat callers were given a series of bogus excuses, none of which had any basis in fact. By instilling a false sense of hope, PTS aimed to delay the chargeback process beyond the time that most credit card issuers allow for disputes. Goyos was indicted in September 2013 and sentencing to 96 months of imprisonment on May 2, 2014.
The Indictment returned Tuesday charges that, after PTS was shut down in late 2009, Cameron continued to defraud consumers by opening and operating another timeshare re-sale fraud scheme known as Commercial Property Partners, LLC (“CPP”). Then, according to the Indictment, after CCP shut down in 2010, Cameron operated another fraudulent telemarketing business known as Federal Fee Recovery, LLC (“Federal Fee”). Federal Fee telemarketers called victims of timeshare re-sale scams, including PTS and CPP, and, in return for an upfront fee, falsely promised that they could help the victims recover what they had lost due to the timeshare re-sale scams.
Several others have been charged in connection with PTS and two defendants have pled guilty. Last month, the grand jury returned ten one-count indictments in connection with this scheme. On June 17, 2014, in addition to indicting Cameron, the federal grand jury returned indictments against three additional PTS employees. During a recent sentencing of Goyos, the Honorable David R. Herndon, Chief Judge of the United States District Court for the Southern District of Illinois, called timeshare resale fraud an industry that recruits recovering drug addicts to steal from the financially vulnerable – “the most despicable scam in the world.”
United States Attorney Wigginton commented: “Our prosecutions of these cases are part of our ongoing commitment to bring to justice those who perpetrate these telemarketing fraud scams. I have said this before, but it bears repeating: if you get a call from someone you do not know and trust, promising something that sounds too good to be true, it is a scam. Hang up. Then, please report the call to the proper authorities.”
This prosecution is one of nearly 60 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, the Florida Attorney General’s Office and the Florida Department of Agriculture. The prosecution of the cases is being handled by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney Scott Verseman.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Nursing Facility Agrees to Repay $500,000 to Resolve Civil Overpayment AllegationsRead the Press Release
Blackhawk Lifecare Center, a skilled nursing facility in Lake View, Iowa, has agreed to pay $500,000 to resolve civil allegations that the facility, which utilized a third party therapy services provider, submitted or caused to be submitted improper therapy services claims for payment to the government. The government did not allege that Blackhawk’s care resulted in patient harm or jeopardy to patients’ conditions. As part of the settlement, Blackhawk did not admit to any liability or wrongdoing.
Specifically, the government alleged that, between January 2007 and December 2009, Blackhawk submitted claims to the Medicare system for therapy services that were not justified by its residents’ conditions. The government further alleged that, by including costs for the therapy services in cost reports submitted to the Medicaid program, Blackhawk erroneously submitted inflated cost reports.
“This agreement signifies the importance our office places on ensuring a fair marketplace for all participants in federal programs and that all participants abide by all applicable rules and regulations,” said Kevin W. Techau, United States Attorney for the Northern District of Iowa. “We appreciate Blackhawk’s full cooperation throughout the investigation and its willingness to resolve the allegations without the public expenditure of costly resources to litigate the claims.”
The allegations resolved by the settlement arose from an investigation led by the Department of Health and Human Services.
New York Woman Charged with Distributing Cocaine at Area MotelsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing yesterday of a criminal charge against Jalani Kornegay, age 33, of New York, New York. A Criminal Information filed in the United States District Court alleges that Kornegay distributed cocaine in Luzerne County on May 18, 2013.
United States Attorney Peter Smith stated that the charge is the result of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police into the sale of cocaine at motels in Luzerne and Lackawanna Counties.
Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is forty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New Jersey School District to Adopt Service Animal Policies and Pay Fine to Resolve Justice Department InvestigationRead the Press Release
The Justice Department announced today that it reached a settlement with the Delran Township School District in New Jersey under Title II of the Americans with Disabilities Act (ADA). The agreement resolves allegations that the school district violated the ADA by refusing to allow a student with autism and encephalopathy to have his service dog in school or at school-related activities. The service dog alerts to the student’s seizures, provides mobility and body support and mitigates the symptoms of his autism.
The department found that the student’s mother spent six months responding to burdensome requests for information and documentation, and still the school district refused to allow the student to be accompanied by his service dog. Despite her efforts, the student was even prevented from bringing his service dog with him on the bus for his school’s end of the year field trip. Instead, his mother followed the school bus with the service dog in her car.
Title II of the ADA prohibits discrimination on the basis of disability in public schools. Under the ADA, public schools must generally modify policies, practices or procedures to permit the use of a service dog by a student with a disability at school and school-related activities. Because service dogs must be under the control of a handler, students often act as the handler of their own service dog; when that is not possible, the family may provide an independent handler, as the family offered to do here.
The school district worked cooperatively with the department throughout the investigation. Under the agreement, the school district will pay $10,000 to the family to compensate them for the harm they endured as a result of the school district’s actions. In addition, the school district will adopt an ADA-compliant service animal policy and provide training to designated staff on the school district’s obligations under Title II of the ADA, including requirements related to service dogs.
“ The old view of service animals working only as guide dogs for individuals who are blind has given way to a new generation of service animals trained to perform tasks that further autonomy and independence for individuals with a myriad of disabilities , ” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Civil Rights Division will vigorously enforce the ADA to ensure that students who use service animals have a full and equal opportunity to participate in all school activities with their peers.”
Enforcing the ADA is a top priority of the Civil Rights Division. Those interested in finding out more about this settlement or the obligations of public entities schools under the ADA may call the department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website . ADA complaints may be filed by email to [email protected] .
The Civil Rights Division would like to thank the U.S. Attorney’s Office for the District of New Jersey for their assistance in this matter.