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Wednesday 18 June 2014
Minnesota Man Convicted of 18 Counts Related to International Arms SmugglingRead the Press Release
MINNEAPOLIS—Recently in federal court, a jury found a Minneapolis man guilty of smuggling guns to Nigeria and lying on required federal firearms purchase records. Sheriff Olaleran Mohammed, 51, a naturalized U.S. citizen currently living in Brooklyn Park, was convicted on Monday of one count of Smuggling Goods from the United States and 17 counts of providing False Statements During the Purchase of a Firearm. Mohammed was indicted in October 15, 2013 and was arrested November 22, 2013 in Atlanta, when returning from Nigeria. His trial before United States District Court Judge Susan Richard Nelson began June 11, 2014 and concluded Monday.
“Gun smuggling overseas is a serious offense our office will pursue aggressively,” said U.S. Attorney Andrew Luger. “I am pleased with the jury’s verdict and with the hard work that led to that verdict.”
The investigation began in the fall of 2012 when agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) discovered seven handgun purchases were made within days of each other at a gun shop in the western suburbs of the Twin Cities. Investigators eventually discovered Mohammed had made a total of 17 handgun purchases between 2009 and 2012. ATF investigators suspected there was a high likelihood Mohammed had lied on at least some of the firearms purchase forms, which are required by U.S. law to legally purchase weapons from a federally licensed firearms dealer.
Agents of Homeland Security Investigations (HSI) determined Mohammed was engaged in the international export business and that he frequently traveled to Nigeria, which raised further questions about the unusual number of purchases.
In December 2012, HSI agents further discovered that Mohammed was shipping a vehicle to Nigeria via ocean container through Valencia, Spain and suspected at least some of the weapons were hidden inside.
HSI agents contacted Spanish law enforcement officers in Madrid who halted the shipment, inspected the vehicle and discovered seven 9 mm, and one .22 caliber handguns hidden within the vehicle. The firearms were seized by Spanish authorities and later turned over to U.S. authorities for use in Mohammed’s criminal proceedings.
Mohammed faces a potential maximum penalty of 10 years in prison on each count. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled.
This conviction is the result of a joint investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). This case is being prosecuted by Assistant United States Attorney Thomas Calhoun-Lopez.Mesa County Man Connected to Raided Massage Parlor Arrested for False Use of A Social Security NumberRead the Press Release
Four massage parlors were raided yesterday as part of an ongoing investigation
DENVER – A Mesa County man, Wei Li, age unknown, a resident of Clifton, was arrested without incident at the Balanced Healing Massage and Spa for false use of a Social Security Number, the U.S. Attorney’s Office, FBI, Grand Junction Police Department and the Mesa County Sheriff’s Office announced. The defendant appeared this afternoon before a U.S. Magistrate Judge in Grand Junction where he was advised of his rights, and the charges pending against him. Li is due back in court tomorrow at 2:30 p.m.
According to the affidavit in support of the Criminal Complaint, on November 15, 2013, Bank of the West provided information regarding banking activity in accounts held by Balanced Healing, which included defendant Wei Li as a co-signer. According to the investigation, when the Balanced Healing account was opened at the bank by Li and another person, Li presented a signature card, including information that Li stated he resided in Clifton, Colorado. Li also presented a Washington driver’s license and provided a Social Security Number. Li represented himself to be an unemployed truck driver and a non-resident alien.
Further investigation determined that Balanced Healing was in the client massage business and advertised erotic full body massages. Starting in November 2012 through March 13, 2014, large amounts of cash was deposited in the Balanced Healing’s bank accounts and was used for the defendant and another person’s personal expenses.
During the course of the investigation into possible human trafficking, it was determined from the Social Security Administration (SSA) Office of Inspector General that Li’s Social Security Number/ITIN is not a valid number and has never been issued. Further, the Internal Revenue Service – Criminal Investigation determined the ITIN number was also not valid.
Yesterday Li was present at Balanced Healing Massage and Day Spa in Grand Junction during the execution of a federal search warrant. Li provided a Social Security Card dated 02/19/2014 with a different number, with “Valid for work only with DHS Authorization” written upon it.
If convicted of false use of a Social Security Number, the defendant faces not more than 5 years imprisonment, and up to a $250,000 fine.
This case is being investigated by the FBI, Grand Junction Police Department, the Mesa County Sheriff’s Office, the Internal Revenue Service – Criminal Investigation, and U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO).
The defendant is being prosecuted by Assistant U.S. Attorney Michelle Heldmyer.A criminal complaint is a probable cause charging document. Anyone accused of committing a federal felony crime has a Constitutional right to be indicted by a grand jury.
The charges contained in the Criminal Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Member of Multi-State Theft Scheme Admits Selling Stolen PharmaceuticalsRead the Press Release
NEWARK, N.J. – A Miami man today admitted his role in a multi-state conspiracy to possess and sell prescription medication taken from a stolen tractor trailer, U.S. Attorney Paul J. Fishman announced.
Martin Lopez, a/k/a “El Negro,” 47, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiracy to possess stolen prescription medicine.
According to documents filed in this case and statements made in court:
On Dec. 2, 2009, a full shipment of prescription respiratory medicine manufactured by Dey LLP in Allen, Texas, was stolen on its way to Sandoz Inc. in Mechanicsburg, Pa. Lopez admitted that from December 2009 through March 2010, he conspired with others to acquire and sell medicine stolen from the shipment.
In early 2010, Lopez spoke with Ernesto Romero-Vidal, a/k/a “Bemba,” 48, of Hallandale, Fla., to identify a potential buyer for the stolen medicine. On March 2, 2010, Lopez arranged to have the medicine delivered to a buyer in New Jersey. Two days later, two other conspirators delivered the stolen goods to the buyer in return for $64,000 in cash, which they split with Lopez.
The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 24, 2014.
On Dec. 18, 2013, Romero-Vidal was sentenced by Judge Martini to 80 months in prison for his role in the scheme and other federal charges.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and detectives of the North Bergen Police Department, under the direction of Chief Robert J. Dowd, with the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel Leslie Faye Schwartz and Assistant U.S. Attorney Jane H. Yoon of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Kathleen M. Theurer Esq., Jersey City, N.J.
Lopez, Martin Information
Medical Equipment Saleswoman Pleads Guilty to Health Care FraudRead the Press Release
PITTSBURGH - A Sewickley resident pleaded guilty in federal court to a charge of health care fraud, United States Attorney David J. Hickton announced today.
Mary Monica Wilson-Lefler, 63, pleaded guilty yesterday to one count before United States District Judge Mark Hornak.
According to the information presented to the court, Wilson-Lefler was a salesperson who offered two durable medical equipment companies in the Pittsburgh area a business arrangement involving special air mattresses, known as powered pressure reducing mattresses or PPRAMS. PPRAMS are designed to reduce serious skin ulcers on patients who are essentially bedridden. She visited long term care facilities (LTC) to find patients, and handled all of the paperwork necessary to enable the Durable Medical Equipment (DME) companies to bill Highmark Blue Cross/Blue Shield's Security Blue Medicare Program (Security Blue). In order to qualify for Medicare coverage for these PPRAMS, a doctor must order the item in writing. In this case, Wilson-Lefler prepared and sent by fax to attending physicians requests for orders for the PPRAMS. The faxed information included patient skin condition reports that falsely reported that the patients all had serious skin ulcers. Some of these patient skin condition reports contained forged signatures of the LTC staff and some had forged signatures of physicians. In reality, none of the patients had serious skin ulcers or any other qualifying conditions that would meet the Medicare coverage requirements. There were about 83 patients from four facilities in whose names the false claims were made. The total billed was approximately $400,000, and the total paid to the two DME companies was about $200,000.
Judge Hornak scheduled the sentencing for Oct. 10, 2014. The law provides for a maximum sentence of 10 years of incarceration and a $250,000 fine or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the United States Food and Drug Administration-Office of Criminal Investigations, conducted the investigation that led to the prosecution of Mary Monica Wilson-Lefler.
Man Who Enticed A Minor to Engage in Sexual Activity Is Sentenced to 300 Months in Federal PrisonRead the Press Release
DALLAS — A man who travelled from the Pacific-Northwest to Dallas to engage in sexual activity with a minor, was sentenced today in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Phillip Amisano-Camillo, 43, a resident of Canada, was sentenced to 300 months (25 years) in federal prison, to be followed by a 10-year term of supervised release, by U.S. District Judge Jorge A. Solis. Amisano-Camillo pleaded guilty on Friday, August 16, 2013, to one count of enticement of a minor. His trial, on a two-count indictment charging not only enticement, but also one count of traveling with intent to engage in sexual acts with a minor, was scheduled to begin the following Monday. Today, per the plea agreement, the Court dismissed the traveling count.
According to documents filed in the case, Camillo admitted he met “John Doe” in an Internet chat room in April 2012. In the days and weeks after he met John Doe, whom he knew was a 14-year-old minor, Camillo “chatted” online with him via Skype. Camillo admitted that in May 2012, he traveled from Washington State to Dallas to meet John Doe for a sexual encounter. Camillo also admits that before and during his time in the Dallas/Fort Worth area, he enticed and persuaded John Doe to sneak out of his home and meet him to engage in unlawful sexual activity. Camillo admits that he took John Doe to a local hotel and engaged in sexual activity with him.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was 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’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Irving Police Department investigated. Assistant U.S. Attorneys Lisa J. Miller and Aisha Saleem prosecuted.
Luzerne County Man Charged Federally with Nine Armed RobberiesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a criminal information has been filed in U.S. District Court in Scranton against Jeffrey Townsley, age 42, of Luzerne County, charging him with two counts of bank robbery and seven counts of robbery of businesses engaged in interstate commerce (Hobbs Act robbery).
According to United States Attorney Peter Smith, Townsley allegedly engaged in an 18-day crime spree in December 2013, and January 2014. The charges included two robberies of the First National Community Bank (branches in Kingston and Hanover Township), and seven robberies of local businesses. Townsley allegedly used a black pellet gun that mirrored the look of a 9mm handgun to threaten his victims. Townsley was arrested on January 13, 2014, and remains in custody in the Lackawanna County Prison.
The charges are the result of an investigation by the Federal Bureau of Investigation with the assistance of local police departments including Kingston, Kingston Township, Larksville, Hanover Township, Wilkes-Barre, Plains, and Ashley, and Luzerne County detectives. The maximum penalties in this case include 25 years’ incarceration for bank robbery and 20 years’ incarceration for Hobbs Act robbery, and fines totaling $2.25 million. The government also filed a plea agreement in the case which is subject to approval by the Court.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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.
Lebanon County Landlord Charged with Housing Assistance FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that it has filed a criminal information in U.S. District Court in Harrisburg charging Israel Acevedo, 52, of Lebanon with defrauding the Lebanon County Housing Authority out of more than $23,000 in federal funds provided by the US Department of Housing and Urban Development (HUD).
According to U.S. Attorney Peter Smith, Acevedo allegedly was a landlord who participated in HUD’s Housing Choice Voucher Program (HCVP) that was administered by the Housing Authority. Acevedo’s spouse received federal funds in the form of rental subsidies under HUD’s housing assistance program.
Allegedly, Acevedo concealed from the Housing Authority that he lived with his wife and children in a house he owned and received the federal rental subsidies that were provided to his spouse to pay rent. Acevedo was allegedly prohibited from renting to a spouse or other family members who were receiving rent subsidies. By concealing the relationship Acevedo’s income from his employment was not factored into how much his spouse was entitled to in rent subsidies, allegedly resulting in Acevedo receiving $23,362 in federal funds that Acevedo was not entitled to.
The United States Attorney’s Office also filed a plea agreement in which Acevedo agreed to plead guilty to the charge. Acevedo has already made restitution.
Acevedo faces a maximum term of imprisonment of one year, a $100,000 fine and a period of supervised release, plus restitution.
The case was investigated by HUD’s Office of Inspector General with the assistance of the Lebanon County Housing Authority. Prosecution of the case is assigned to Assistant U.S. Attorney William A. Behe.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is one year 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.
Lawrence Man Pleads GuiltyTo Filing A False Tax ReturnRead the Press Release
KANSAS CITY, KAN. A Lawrence man pleaded guilty Tuesday to filing a false tax return, U.S. Attorney Barry Grissom said.
Bradley Stoneking, 30, Lawrence, Kan., pleaded guilty to making false statements in his income tax return for 2010. He falsely claimed federal tax withholdings on gambling winnings in the amount of approximately $330,000. In fact, the federal tax withholding on his gambling winnings was $300.
Sentencing is set for Sept. 8. He faces a maximum penalty of three years in federal prison and a fine up to $250,000. Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Scott Rask for their work on the case.
Las Vegas Woman Sentenced for False Statement on Home LoanRead the Press Release
POCATELLO – Alessandra Valencia Toscanelli, also known as Sarah Kate Henecke, 36, of Las Vegas, Nevada, was sentenced today in United States District Court to three years of probation, with 60 days of home detention for making false statements in a mortgage application on a U.S. Department of Housing and Urban Development (HUD) guaranteed loan, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Toscanelli to serve 80 hours of community service and pay $42,905 in restitution.
According to the plea agreement, in March 2009, Toscanelli obtained a home loan to finance the purchase of a residence in Eagle, Idaho. The loan application submitted in support of the loan contained the false statement that Toscanelli had employment income of $2,400 per month, when she actually had no income. Toscanelli also submitted false payroll checks and payroll stubs, a false letter regarding her employment, a false employment contract, and a false employee confidentiality agreement. Shortly after the loan was funded, Toscanelli defaulted on the loan and HUD incurred a loss.
The case was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General.
Jewelry Store Owner Pleads Guilty in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
TRENTON, N.J. – A New Jersey jewelry store owner who used his business to further one of the largest credit card fraud schemes ever charged by the Justice Department today admitted his role in the scheme, the 17th conspirator to do so, New Jersey U.S. Attorney Paul J. Fishman announced.
Vinod Dadlani, 51, of Lyndhurst, N.J., pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:Dadlani was indicted in October 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Dadlani’s jewelry store, among many other locations, where Dadlani would allow fraudulently obtained credit cards to be swiped in phony transactions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; then run up large charges.
The scope of the criminal fraud enterprise required Dadlani’s conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
During his guilty plea proceeding, Dadlani admitted he worked with other conspirators, who came to his Jersey City, N.J., store and allowed them to swipe cards he knew did not legitimately belong to them. Dadlani would then split the proceeds of the phony transactions with the conspirators.
The count to which Dadlani pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gain or loss caused by the offense.
Dadlani is scheduled for sentencing by JudgeThompson on Sept. 24, 2014.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation; as well as postal inspectors from the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola. He also thanked the U.S. Social Security Administration Office of Inspector General, Office of Investigations in New Jersey for assisting in the investigation.The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture Unit in Newark.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
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Defense counsel: Vincent Sarubbi Esq., Haddonfield, N.J.Dadlani, Vinod Information
Jacksonville Attorney and Her Former Client Sentenced for Investment SchemeRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard sentenced Amy Elizabeth Newby (42, Jacksonville) to 15 months in federal prison for mail fraud. As part of her sentence, the court also entered a money judgment in the amount of $85,050, the proceeds of the charged criminal conduct. Newby’s co-conspirator and former client, Donald Mitchell (37, Orlando), was sentenced to 15 years in federal prison for conspiracy to commit mail fraud, as well as a separate charge of wire fraud. As part of Mitchell’s sentence, the court also entered a money judgment in the amount of $96,050, representing the proceeds of the charged criminal conduct. Mitchell pleaded guilty on September 11, 2013. Newby entered her guilty plea on November 26, 2013. The sentencing hearing was on June 16, 2014.
According to court documents, between June 2010 and March 2011, Newby and Mitchell devised a scheme to defraud whereby victims were lured into believing that Mitchell was a legitimate investor, when in reality, he was not. Mitchell told investors that he invested in either hedge funds or leveraged buyouts. When convincing individuals to invest money with him, Mitchell often used an alias and made various misrepresentations concerning his career, including that he worked for Merrill Lynch, the Blackstone Group, or as an economics professor at the University of Florida. During the course of the scheme, with the help of Newby, Mitchell also fraudulently obtained luxury cars to substantiate his claim that he was a wealthy investor.
According to court documents, in one instance, Newby made multiple misrepresentations to a victim-investor and convinced the victim that Mitchell was out of the country and had lost an investment check that the victim had previously mailed to Mitchell. In reality, Mitchell was in jail on state charges and unable to gain access to the check. After speaking to Newby, the victim agreed to mail a new check. The new check was made payable to Mitchell and sent to Newby’s law office.
The testimony and evidence presented during the sentencing hearing showed that Newby’s Florida Bar license is currently suspended for an unrelated forgery, which occurred prior to the investment scheme. As to Mitchell, the evidence presented revealed that while detained awaiting his sentencing, Mitchell continued to attempt to commit fraud.
This case was investigated by the United States Secret Service and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Diidri W. Robinson.
Italian Citizen Indicted for Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury returned an indictment today charging an illegal alien from Italy with unlawful re-entry into the United States.
According to United States Attorney Peter Smith, Luigi Coppola, age 46, a native and citizen of Italy, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg today.
The indictment alleges that Coppola, an alien who was convicted on September 21, 2006, of Terroristic Threats in Franklin County, Pennsylvania, and had been previously arrested and deported from the United States on December 27, 2007, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in Franklin County, Pennsylvania.
If convicted, Coppola faces a maximum sentence of up to 10 years of imprisonment and a $250,000 fine.
This investigation was conducted by the U.S Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Philadelphia. Prosecution is assigned to 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.
In this case, the maximum penalty under the federal statute is 10 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.
Inmate Convicted of Murder at Terre Haute Federal Correctional FacilityRead the Press Release
U.S. Attorney’s Office successfully prosecutes two inmates for their role in the murder of fellow inmate
TERRE HAUTE – Joseph H. Hogsett, United States Attorney, announced today the conviction of two men for their roles in the death of an inmate at the Terre Haute Federal Correctional Institute. William J. Bell, 38, was convicted of one count of first degree murder and Lenard Dixon, 35, was convicted of one count of accessory after the fact, following a three-day jury trial before U.S. District Judge Jane Magnus-Stinson.
“Protecting all citizens from senseless violence is important. We owe it to the employees of our federal prisons to do what we can to keep their work places as safe and secure as possible,” said Hogsett.
According to evidence presented at trial, Bell entered the cell of a fellow inmate on June 18, 2011 and stabbed him to death. Bell’s cellmate, Dixon, concealed evidence of the crime, including the murder weapon.
Both Bell and Dixon had extensive criminal histories. Bell had nine prior convictions accumulated across Illinois, Arkansas, and Kansas. At the time of the murder, he was serving a nearly 8-year sentence for carjacking. Dixon had several convictions in Kansas and, at the time of the murder, was serving a 35-year sentence for robbery.
“A goal of our office is to prosecute those who have already been acquainted with the American justice system and still do not obey the law,” said Hogsett. “One person’s refusal to obey the law should not result in the end of another person’s life.”
According to Assistant United States Attorneys Matthew Brookman and Will McCoskey, who prosecuted the case for the government, Bell faces up to life in prison and Dixon faces up to 15 years, in addition to the time he is already serving.
Illegal Alien Charged with Possession of False DocumentationRead the Press Release
PITTSBURGH - An alien found in Pittsburgh has been indicted by a federal grand jury on a charge of possession of a fraudulent alien document, United States Attorney David J. Hickton announced today.
The one-count indictment returned on June 17 named Francisco Aguilar-Moreno, 40, of Mexico, as the sole defendant.
According to the indictment, on May 28, 2014, Aguilar-Moreno possessed a fraudulent Permanent Resident Alien Card (Form I-551), which he knew to be forged, counterfeited, altered and falsely made.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Customs Enforcement, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hartford Man Indicted for Illegally Possessing Sawed-off Firearm and Bullet Proof VestRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Hartford has returned an indictment charging KIEJUAN HAUGABOOK, 35, of Hartford, with one count of possession of a firearm by a convicted felon, one count of possession of a sawed-off firearm by a convicted felon, and one count of possession of body armor by a violent felon. The indictment was returned on June 11 and was unsealed today during HAUGABOOK’s arraignment before U.S. Magistrate Judge Joan G. Margolis in New Haven.
As alleged in court documents and statements made in court, HAUGABOOK escaped from a halfway house in Hartford. On February 3, 2014, a parole officer found him in an apartment in Hartford. Upon entering the apartment, the parole officer noticed a firearm in plain view and contacted the Hartford Police Department. Hartford Police arrived on the scene and seized a Harrington & Richardson, Model Topper 158, firearm with a sawed-off barrel, as well as ammunition, a Point Blank ballistic vest and a stun gun.
The indictment alleges that HAUGABOOK has previous state convictions for first and third degree robbery, possession of narcotics and carrying a pistol without permit. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. It is also a violation of federal law for a person previously convicted of a violent felony offense to possess body armor that has moved in interstate commerce.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Ndidi Moses and Brian Leaming.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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[email protected]Grove City Man Pleads Guilty to Possession of Child PornographyRead the Press Release
PITTSBURGH - A Mercer County resident pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Joseph L. Bryer, 53, of Grove City, Pa., pleaded guilty yesterday to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Bryer, on Aug. 23, 2011, possessed photographs and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct. The videos and still images were downloaded and shared using peer-to-peer software installed on Bryer’s computer. The videos included those depicting prepubescent females engaging in sex acts with adults.
Judge Hornak scheduled sentencing for Oct. 9, 2014, at 2 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court permitted Bryer to remain on bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Homeland Security Investigations - Immigration and Customs Enforcement, with assistance from the United States Secret Service conducted the investigation that led to the prosecution of Bryer.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Gabriel Gabella Pleads Guilty to Hiding Swiss Bank AccountRead the Press Release
Gabriel Gabella, a former client of the Swiss bank UBS AG, pleaded guilty today at the federal courthouse in Brooklyn, New York, to a felony information charging him with concealing ownership of his Swiss UBS AG bank account from the United States by willfully failing to file a Report of Foreign Bank and Financial Accounts (FBAR). When sentenced, Gabella faces a statutory maximum of five years’ incarceration for his crime. In the plea agreement he entered today, Gabella agreed to pay a civil penalty of $3,140,346, which is half the value of his unreported Swiss bank account in 2007, for the willful failure to file the FBAR. Gabella also agreed to make restitution of $239,012 to the Internal Revenue Service for federal income taxes he failed to pay for 2005, 2006 and 2007 by hiding his ownership of his UBS account.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Tamara W. Ashford, Acting Assistant Attorney General for the Justice Department’s Tax Division, and Shantelle P. Kitchen, Acting Special Agent-in-Charge, Internal Revenue Service - Criminal Investigation, New York.
As described in the information, United States citizens or residents with a financial interest in, or signatory authority over, a foreign financial account worth more than $10,000 in a particular year, must file a FBAR report with the Department of the Treasury disclosing such an account by June 30 of the following year.
“Those who willfully conceal assets abroad will be investigated and prosecuted, and those convicted of such conduct will not only face imprisonment but significant financial penalties as well,” stated United States Attorney Lynch.
IRS Special Agent-in-Charge Kitchen stated, “Offshore tax enforcement remains a top priority for the Internal Revenue Service and we continue to gain access to more and more information about individuals who hide money in bank accounts outside of the United States. Individuals who choose to conceal assets offshore expose themselves to a variety of criminal charges and severe penalties when they fail to notify the government about their foreign bank accounts or report the income from them.”
The guilty plea proceedings were held before United States Magistrate Judge James Orenstein.
This case was prosecuted by Assistant United States Attorney Michael Warren and
Senior Litigation Counsel Mark Daly of the Justice Department’s Tax Division.
The Defendant:
GABRIEL GABELLA
Age: 73
Residence: Manhattan
E.D.N.Y. Docket No. 14-CR-207 (JBW)
Former U.S. Customs & Border Protection Supervisor Convicted of FraudRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
MARTINSBURG, WEST VIRGINIA – The former Acting Director of the Tactical Operations Division for the U.S. Customs and Border Protection pleaded guilty to misusing his government-issued credit card at a West Virginia casino.
United States Attorney William J. Ihlenfeld, II, announced that GENE PROTOGIANNIS, 55 years old of Lovettsville, Virginia, entered a plea of guilty to “Wire Fraud” in Federal court in Martinsburg. PROTOGIANNIS admitted that he used his official government credit card to obtain cash advances at the Hollywood Casino in Charles Town, West Virginia. The total amount of cash withdrawn by PROTOGIANNIS at the casino was $115,853.55.
PROTOGIANNIS faces up to twenty years in prison and a fine of up to $250,000. The actual sentence imposed will be based upon the Federal Sentencing Guidelines and the criminal history of the defendant, if any.
Assistant United States Attorney Paul T. Camilletti handled the matter on behalf of the government and the case was investigated by the West Virginia State Police. U.S. District Court Judge Gina M. Groh presided.
U.S. Attorney Ihlenfeld urges anyone with information regarding public corruption in their community to call the West Virginia Public Corruption Hotline at 855-WVA-FEDS (1-855-982-3337), or to send an email to [email protected].Former Immigration Officer, Postal Worker Charged in Takedown of 14-Member Interstate Methamphetamine Distribution RingRead the Press Release
NEWARK, N.J. - Fourteen people – including a former U.S. Citizenship and Immigration Services officer and a U.S. Postal Service worker – have been arrested and charged for their alleged roles in a multi-state drug trafficking ring supplying large quantities of methamphetamine to the Jersey City area, U.S. Attorney Paul J. Fishman announced today.
Nine alleged members of the ring were arrested June 16 to 18, 2014, by agents of the Drug Enforcement Administration (DEA) as well as state and local law enforcement following a one-year investigation led by the DEA. They were charged by complaint with conspiracy to distribute methamphetamine. The New Jersey defendants made their initial court appearances before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
Among the 14 people charged today are defendants from Las Vegas, Nev., Los Angeles, Calif., and Phoenix, Ariz.
According to the documents filed in this case and statements made in court:
Since July 2013 law enforcement has been investigating a drug trafficking organization (DTO) operating in Jersey City. The DTO coordinated shipments of methamphetamine from suppliers in Arizona, California, and Nevada through the mail to locations in northern New Jersey. Suppliers concealed the methamphetamine inside parcels that were shipped to addresses provided by the New Jersey-based conspirators, who would repackage the drugs for sale to lower level distributors.
John Freehauf, 36, a/k/a “Johnnie Rocket,” a/k/a “Agent,” of Jersey City, a former officer with the U.S. Citizenship and Immigration Service (USCIS), allegedly coordinated the acquisition of the methamphetamine, ordering several pounds per month from various interstate suppliers. Freehauf negotiated the price and provided New Jersey addresses for his suppliers. He and Benjamin Navarro, 44, a/k/a “Kristie,” of Jersey City, repackaged the drugs for distribution to lower level suppliers and retailers.
Maria Lisa Pascual, 36, of North Bergen, N.J., used her position with the U.S. Postal Service to track and oversee the shipment of parcels. Pascual, Arnold Balagtas, 54, of Jersey City, and other conspirators redistributed smaller quantities of methamphetamine to lower level dealers and retailers. Pascual and Freehauf agreed to use the same sources of supply and to work together to set a common “market price” for methamphetamine in the northern New Jersey area. Pascual and Freehauf also assisted each other in distributing methamphetamine to lower level dealers. Pascual has recently been terminated by the U.S. Postal Service. The defendants are:Name
Age
Residence
36
Jersey City
Benjamin Navarro*
44
Jersey City
Maria Lisa Pascual
36
North Bergen, N.J.
Arnold Balagtas
54
Jersey City
Margaret Tiangco*
38
Jersey City
Javier Diaz
30
Los Angeles, Calif.
Candace Healy
21
Fresh Meadows, N.Y.
Ricce Anciado Jr.
44
Union, N.J.
Stephanie Luna*
36
Bergenfield, N.J.
Benedict Cipriano
51
Jersey City
Ricky Tulud
43
Belleville, N.J.
Janice Vidallon
31
Belleville
Ryan Bontempi
34
Phoenix, Ariz.
Howard Taylor
49
Phoenix
*Denotes fugitive
Freehauf, Pascual, Balagtas, Anciado, Tulud, Healy and Vidallon all appeared June 17, 2014, before U.S. Magistrate Judge Waldor in Newark federal court. Diaz appeared in federal court in Los Angeles June 17, 2014, and is scheduled to appear in Newark federal court on June 30, 2014. Cipriano appeared before Judge Waldor today. Navarro, Luna and Tiangco remains at large.
Bontempi, a/k/a “Rooster;” and Taylor were both arrested on May 12, 2014, in Phoenix, Arizona. Both were detained and transported to New Jersey, where they made their initial appearances today before Judge Waldor.
The count with which each of the defendants is charged carries a minimum penalty of 10 years in prison and a maximum potential penalty of life in prison and a $10 million fine.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski; U.S. Postal Inspectors under the direction of Inspector in Charge Maria L. Kelokates; law enforcement officers from the N.J. National Guard Counter Drug Task Force, under the direction of the Adjutant General, Brig. Gen. Michael L. Cunniff; the N.J. State Police, under the direction of Superintendent Rick Fuentes; the Edison Police Department, under the direction of Chief Thomas Bryan; and the Jersey City Police Department, under the direction of Chief Robert Cowan, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Adam N. Subervi and Charlton Rugg of the U.S. Attorney’s Office Narcotics Unit in Newark.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
14-223
Defense counsel:Freehauf: Joseph Rubino Esq., West Orange, N.J.
Navarro:
Pascual: Gregory Tomczak Esq., Montclair, N.J.
Balagtas: Angelo Servidio Esq., Nutley, N.J.
Tiangco:
Diaz: TBD
Healy: Elizabeth Smith Esq., Mendham, N.J.
Anciado Jr.: Bruce Rosen Esq., Florham Park, N.J.
Luna:
Cipriano: Zahid Quaraishi Esq., Morristown, N.J.
Tulud: Candace Hom Esq., Assistant Federal Public Defender, Newark
Vidallon: Stephen Truano Esq., Newark
Bontempi: David Ruhnke Esq., Montclair
Taylor: Kathleen Theurer Esq., Jersey CityFreehauf, John et al., Complaint
Bontempi - Taylor ComplaintFormer Head of Lynrocten Federal Credit Union IndictedRead the Press Release
LYNCHBURG, VIRGINIA – A federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke has charged the former manager of the Lynrocten Federal Credit Union in Lynchburg [LFCU] with embezzlement, bank fraud and aggravated identity theft charges.
In and indictment returned under seal on June 5, 2014 and unsealed today following the defendant’s initial court appearance, the grand jury has charged Linda Sue Newcomb, 62, of Madison Heights, Va., with one count of embezzlement of funds from a federal credit union, four counts of bank fraud and three counts of aggravated identity theft.
In January 2014, the former head teller of LFCU, Teresa Wieringo Humphries, 58, of Madison Heights, Va., waived her right to be indicted and pled guilty to an Information charging her with one count of embezzlement by an employee of a federal credit union.
The indictment alleges that in or about 2000, Ms. Newcomb, who was hired by the LFCU in the mid-1980s, and the former head teller at the bank, Teresa Humphries, carried out a scheme to defraud, embezzle and steal funds from LFCU’s deposits and accounts.
It was part of the scheme that Newcomb and Humphries originated loans in the names of LFCU members without those members’ knowledge or consent. Newcomb and Humphries drafted fictitious loan documentation and approved the fictitious loans in order to make false loans look legitimate.
In addition, the indictment alleges that from on or about October 22, 2009 and continuing to on or about October 6, 2011, Newcomb entered into Loan Participation Agreements with another federal credit union. In furtherance of the Loan Participation scheme, Newcomb, on behalf of LFCU, sold various fraudulent loans. In order to persuade the partner credit union to enter into the Loan Participation Agreement, Newcomb made various false statements to make the loans involved appear to be authentic and legitimate. The value of the fraudulent loans involved in the loan participation scheme was in excess of $1 million.
The indictment also alleges that Newcomb and Humphries transferred funds and wrote checks on certain LFCU members’ accounts without their knowledge or consent. At least three different accounts are alleged to have been used by the two defendants. Certain proceeds from the schemes were deposited to the LFCU bank accounts of Newcomb, Humphries, and their family members or were used by the two defendants to make “payments” to other fraudulent loans.
In order to conceal the unauthorized use of LFCU member accounts, and in furtherance of the scheme, Newcomb and Humphries altered and withheld LFCU member statements.
The investigation of the case was conducted by the United States Secret Service, the Federal Bureau of Investigation, the Lynchburg City Police Department and the Amherst County Sheriff’s Office. Assistant United States Attorneys Anthony Giorno and Daniel Bubar are prosecuting the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Former Greenbush Resident Pleads Guilty to Bath Salt Distribution Conspiracy and Firearms ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ryan
Ellis, 33, formerly of Greenbush, Maine pleaded guilty yesterday in U.S. District Court in
Bangor to conspiracy to possess with the intent to distribute and to distribute MDPV, a chemical
compound commonly referred to as “bath salts” or “monkey dust” and to possession of firearms
during and in relation to a drug trafficking offense.According to court records, between April and December 2011, the members of the
conspiracy illegally distributed large quantities of MDPV in Penobscot, Aroostook and Knox
counties. The defendant obtained MDPV from other conspirators, processed and repackaged it,
and distributed it to other conspirators for sale to drug addicts. On November 22, 2011, he was
found in possession of two handguns and a shotgun and nearly 400 grams of MDPV.
On the drug count, the defendant faces up to 20 years in prison, a $1,000,000 fine, or
both. On the firearms count, he faces a mandatory minimum of five years and up to life in prison
which must be served consecutive to the drug sentence and a $250,000 fine. The defendant will
be sentenced after the completion of a presentence investigation report by the U.S. Probation
Office.
Co-defendants Elizabeth Mikotowicz, a/k/a “Beth,” Steven Orosco, a/k/a “Pablo,” Alan
Alan Ketchen, a/k/a “AJ,” Daniel Hines, Adam Hathorn, and Tina Keaton, a/k/a “Fumble,” all of
Bangor; Jessica Bryden, of Greenbush, Maine; Matthew Tardiff and Michael Tardiff, a/k/a
“Bub,” of Old Town, Maine; and Gina Nelson, of Bradley, Maine; previously pled guilty to the
conspiracy charge and await sentencing.
The case was investigated by the Maine Drug Enforcement Agency with assistance from
the U.S. Drug Enforcement Administration, and the Brewer and Bangor Police Departments.Former Government Contractor Settles False Claims Act CaseRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Randy S. Mays, Sr., 58, of Rochester, N.Y., the former president and sole owner of Lynx Machine Tool Corporation, will pay $70,405 to the United States to resolve civil claims brought against him by the United States under the False Claims Act. The settlement represents a compromise of disputed claims and is not an admission of liability by Mays.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that from December 2005 through October 2006, Mays, through Lynx, a now defunct company that contracted to provide various metal parts to the Department of Defense, entered into five government contracts for the provision of various metal parts to the military. Under the contracts, Lynx was required to test 100% of the parts prior to shipment, and to submit a Certificate of Compliance with each shipment. In fact, the requisite testing was not performed, and Mays submitted and caused to be submitted false Certificates of Compliance and falsified test reports.
In 2011, a former Lynx employee, Denis Converse, was convicted and sentenced to five years probation for making false statements to federal agencies and agents in connection with the falsifying and alteration of the Certificates of Compliance and test reports.
The settlement is the result of an investigation on the part of Special Agents of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), under the direction of Craig Rupert, Special Agent in Charge of the DCIS Northeast Field Office; the U.S. Army Criminal Investigation Division Command, Major Procurement Fraud Unit (MPFU), under the direction of L. Scott Moreland; and the Defense Contract Audit Agency (DCAA), under the direction of Donna Peltomaki.Former Deputy Sheriff Pleads Guilty to Seizing and Distributing Gambling MachinesRead the Press Release
Contac Persont: Carrie Fisher (864) 282-2100
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that Michael Todd Parker (37) of Cherokee County, South Carolina, pled guilty to one count of violating 18 U.S.C. § 666. Parker is a former deputy sheriff of the Cherokee County Sheriff’s Office (“CCSO”). Between 2010 and 2012, Parker corruptly seized a number of illegal poker machines from local businesses and then redistributed the same illegal poker machines from which he personally benefitted financially. Parker was terminated from the CCSO in 2012. The charge carries a maximum sentence of 10 years imprisonment, $250,000 fine, and 3 years of supervised release.
The case was investigated by the Federal Bureau of Investigation, Cherokee County Sheriff’s Office, and the State Law Enforcement Division (SLED) and is assigned to Assistant United States Attorney Carrie Fisher Sherard.# # #
Federal Grand Jury Returns IndictmentsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA — A Federal grand jury in Elkins returned indictments in six new cases yesterday, according to United States Attorney William J. Ihlenfeld, II.
Beth Harman OURS, age 46, of Petersburg, West Virginia, was named in a five-count Indictment charging her with one count of distribution of ecstasy, two counts of distribution of oxycodone, one count of distribution of diazepam and one count of distribution of hydrocodone. If convicted, OURS faces up to 20 years in prison on the ecstasy and oxycodone charges, 5 years in prison on the diazepam charge, and 10 years in prison on the hydrocodone charge.
George William BARBER, age 47 of Upper Tract, West Virginia, was named in a two-count Indictment charging him with the distribution of Percocet pills. If convicted, BARBER faces up to 20 years in prison on each count.
These cases were investigated by the Potomac Highlands Drug & Violent Crime Task Force, consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
Dorothy Ellen METZ, age 61, of Athens, Georgia, was named in a one-count Indictment charging her with the possession with intent to distribute oxycodone. If convicted, METZ faces up to 20 years in prison. This case was investigated by the Law Enforcement and Investigations Division of the United States Forest Service.
The OURS, BARBER and METZ cases will be prosecuted by Assistant U.S. Attorney Stephen D. Warner.
Roberto SOTO, age 51; Gregory PARDO, age 58; Antonio MARTINEZ-PORTA, age 38; and Ahmed JOHNSON, age 42, inmates at the Federal Correctional Institution at Gilmer, were named in a two-count Indictment charging them with conspiracy to commit assault with a dangerous weapon and assault with a dangerous weapon with intent to do bodily harm. Each face up to 5 years in prison. The case will be prosecuted by Assistant U.S. Attorney Brandon S. Flower and was investigated by the Special Investigative Services Unit at FCI Gilmer.
Joseph A. GARRETT, age 49, of Haywood, West Virginia, was charged with failure to register as a sex offender. GARRETT faces up to 10 years in prison. GARRETT, who has a prior conviction in Marion County is alleged to have failed to register as a sex offender. This case was investigated by the United States Marshals Service.
Clarence THOMPSON, age 35, of Clarksburg, West Virginia, was charged with being a felon in possession of a firearm. THOMPSON, who has prior convictions for delivery of a controlled substance, uttering and burglary, is prohibited from possessing a firearm. THOMPSON faces up to 10 years in prison. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The GARRETT and THOMPSON cases will be prosecuted by Assistant U.S. Attorney Shawn A. Morgan.
An indictment is merely an accusation each defendant is presumed innocent unless and until proven guilty.
Federal Charges Filed Against Twin Brothers in Topeka RobberyRead the Press Release
TOPEKA, KAN. - Federal charges were filed Tuesday against twin brothers accused of a robbery in Topeka, U.S. Attorney Barry Grissom said.
Charles Lamar Steele, 23, Topeka, Kan., and Lamar Ray Steele, 23, Topeka, are charged with one count of robbery. A criminal complaint filed in U.S. District Court in Topeka alleges that on June 4, 2014, they robbed the Check Into Cash store at 3711 S.W. Plaza Drive in Topeka.
In court papers, it is alleged that Charles Lamar Steele entered the store brandishing a handgun. He grabbed a clerk by the wrist and forced her to the cash drawers. He demanded money and threatened to kill her if she did not comply. He struck her in the head with the gun, forced her to front door and told her to stay on the ground and keep her head down until he was gone.
Surveillance photos from the robbery showed another man talking on a cell phone while holding the front door open at the time Steele entered the store. Investigators identified the man with the phone and used phone records to determine that at the time of the robbery he was connected to Charles Lamar Steele’s phone number. Investigators also learned that Lamar Ray Steele had helped plan the robbery.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commend the Topeka Police Department and the FBI for their work on the case. Assistant U.S. Attorney Jared Maag is prosecuting.Eugene Armed Career Criminal Sentenced to 15 Years in Federal Prison for Possessing a FirearmRead the Press Release
EUGENE, Ore. – On June 18, 2014, Dean Allen Fleury, 52, of Eugene, Oregon, was sentenced by U.S. District Chief Judge Ann Aiken to 15 years in federal prison for unlawful possession of a firearm. Upon his release from prison, Fleury will be on supervised release for five years.
On April 8, 2013, officers with the Lane County Interagency Narcotics Enforcement Team (“INET”) caught Fleury with a large, distributable amount of methamphetamine. Fleury admitted he had been selling methamphetamine for the last few decades and officers thereafter found a 12-gauge shotgun that he possessed and a large quantity of cash. Fleury has a criminal history spanning 30 years, with numerous felony convictions for unlawful delivery and possession of methamphetamine. Under federal law, any person who possesses a firearm or ammunition after being previously convicted of three violent felonies or felony drug trafficking crimes is an Armed Career Criminal and faces a 15-year mandatory minimum sentence.
This case was investigated by INET, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Dunbar Man Pleads Guilty to Selling Heroin from His ApartmentRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Donald Covington, 44, of Dunbar, West Virginia entered a guilty plea to distribution of heroin on Tuesday, June 17, 2014. On December 5, 2013, detectives with the Kanawha County Sheriff’s Department STOP team used a confidential informant (“CI”) to buy heroin from Covington from his apartment at 405 11th Street in Dunbar. Covington also sold heroin to the CI from his apartment on December 3, 2013, and on December 12, 2013. Following the December 12, 2013 drug deal, police searched Covington’s apartment where they found three firearms, additional heroin, crack cocaine, and cocaine.
Covington faces up to 20 years imprisonment when he is sentenced by Judge Thomas J. Johnston on October 1, 2014.
The case was investigated by the Kanawha County Sheriff’s Department STOP Team. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of prescription pills and heroin in communities across the Southern District.
Dubuque Man Sentenced to over 12 Years for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced today to over twelve years in federal prison.
Robert Baumhover, age 48, of Dubuque, Iowa, received the sentence after a March 31, 2014, guilty plea to one count of possession of child pornography. At the guilty plea hearing, Baumhover admitted that he knowingly possessed child pornography. In a plea agreement, Baumhover admitted he received child pornography between 2001 and 2013; he also admitted he possessed over 15,000 images of child pornography.
Baumhover was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Baumhover was sentenced to 148 months’ imprisonment. A special assessment of $100 was imposed, and Baumhover must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque County Sheriff’s Office, the Scott County Sheriff’s Office, Homeland Security Investigations, and the Iowa Internet Crimes Against Children Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-1004.
Dog Fighting Operation Results in Prison for W.Va. ManRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
MARTINSBURG, WEST VIRGINIA – A West Virginia man who operated a dog fighting venture has been sentenced to twenty years in Federal prison.
United States Attorney William J. Ihlenfeld, II announced that TIMOTHY PAUL STEWART, age 35, of Piedmont, was sentenced to serve 240 months in prison as a result of his convictions earlier this year for “Possession of Dogs for Dog Fighting”, “Conspiracy to Distribute Crack Cocaine,” and “Felon in Possession of a Firearm.” U.S. District Court Judge Gina M. Groh presided.According to U.S. Attorney Ihlenfeld, in October of 2013 agents served a federal drug trafficking indictment upon STEWART at his Mineral County home as well as multiple search warrants. While in the basement of STEWART’s residence agents observed evidence of an animal fighting venture including dogs, dog pelts, cages, and training equipment for the dogs. Officers also observed and seized approximately 25 grams of cocaine base, seven firearms and $3,968.00 in U.S. Currency. The cash recovered was forfeited to the United States as part of the plea agreement.
STEWART’s girlfriend, Shannon Marie BROADWATER, 33 years old and also of Piedmont, was sentenced by Judge Groh to 36 months in prison for her role in the sale of crack cocaine. She had previously been convicted of “Illegal Use of the Internet to Facilitate the Distribution of Crack Cocaine.”This case was investigated by the Potomac Highlands Drug & Violent Crime Task Force, consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
Diamondhead Man Sentenced for Oil Spill FraudRead the Press Release
Gulfport, Miss. – Luom Van Ngo, 44, of Diamondhead, Mississippi, was sentenced on June 17, 2014, to three years in federal prison followed by three years of supervised release for oil spill fraud, U.S. Attorney Gregory K. Davis announced today. Ngo was also ordered by U.S. District Judge Louis Guirola to pay a $6,000 fine and $18,575.00 in restitution.
Luom Van Ngo knowingly devised a scheme to defraud the Gulf Coast Claims Facility (“GCCF”) which was established by BP Exploration and Production, Inc., to administer, process, and settle certain claims of individuals and businesses that had been impacted by the Deepwater Horizon Oil Spill. Ngo made fraudulent representations to the GCCF claiming that he lost earnings and profits from a shrimping and fishing business as a result of the Deepwater Horizon Oil Spill. As a result of his scheme, Ngo received a check in the amount of $18,000.
This case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Andrea Jones. It was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill.
If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.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:
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Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Defendant Extradited to Face Charges in Border Patrol Agent Brian Terry Murder CaseRead the Press Release
SAN DIEGO, CA – Lionel Portillo-Meza, who is charged with the first degree murder of United States Border Patrol Agent Brian Terry, was extradited to the United States from Mexico on June 17, 2014, announced Attorney General Eric Holder and U.S. Attorney Laura E. Duffy of the Southern District of California.
Agent Terry was fatally shot on Dec. 14, 2010, when he and other Border Patrol agents encountered Portillo-Meza and four others in a rural area north of Nogales, Arizona.
“This marks a major step forward in our aggressive pursuit of those responsible for the murder of Agent Brian Terry, who made the ultimate service while serving his country,” said Attorney General Eric Holder. “By securing the extradition of this suspect, the Department of Justice has ensured that he will stand trial and face justice here in the United States. And we will never waver in our commitment to ensure that those who commit acts of violence against our best and bravest can be caught and held accountable – to the fullest extent of the law.”
“This development brings us one step closer to achieving justice for a beloved agent who paid the highest price in protecting this country,” U.S. Attorney Duffy said. “While there is nothing that can be done to bring Agent Terry home again, we hope this news will bring some level of comfort to the family knowing that our team of prosecutors and investigators within the Department of Justice will not stop until the case is resolved.”
Portillo-Meza was arraigned in federal district court in Tucson, Arizona, on June 18, 2014. He entered a not-guilty plea and was detained without bond. The indictment charges Portillo-Meza and others with first degree murder, second degree murder, conspiracy to interfere with commerce by robbery, attempted interference with commerce by robbery, use and carrying a firearm during a crime of violence and assault on a federal officer. In addition to the murder of Agent Terry, the indictment alleges that the defendants assaulted Border Patrol Agents William Castano, Gabriel Fragoza, and Timothy Keller, who were with Agent Terry during the firefight.
On July 20, 2012, in order to seek the public’s assistance, Department of Justice officials announced a reward of up to $1 million for information leading to the arrest of four fugitives: Jesus Rosario Favela-Astorga, Ivan Soto-Barraza, Heraclio Osorio-Arellanes, and Portillo-Meza. Portillo-Meza was captured in Mexico in September 2012. Soto-Barraza was captured in Mexico in September 2013.
A fifth defendant, Manuel Osorio-Arellanes, pleaded guilty to first degree murder and was sentenced to 30 years in prison in February 2014. A sixth defendant, Rito Osorio-Arellanes, who was in custody at the time of Agent Terry’s murder, pleaded guilty to conspiracy to interfere with commerce by robbery and was sentenced to eight years in prison in January 2013.
This case is being prosecuted in federal court in Tucson by attorneys from the Southern District of California, Special Attorneys Todd W. Robinson, David D. Leshner, and Fred Sheppard. The U.S. Attorney’s Office for the District of Arizona is recused. This case is being investigated by the FBI. The Justice Department’s Office of International Affairs provided assistance with the extradition.
The public is reminded that an indictment is a formal charging document and defendants are presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
DEA and New Kensington Police Investigation Leads to Charges Against Local ManRead the Press Release
PITTSBURGH – Michael Jones, a former resident of New Kensington, Pa., has been indicted by a federal grand jury in Pittsburgh for crack cocaine trafficking and firearms crimes, United States Attorney David J. Hickton announced today.
The three-count indictment returned on June 17 names Jones, 33, as the sole defendant.
According to the indictment, on Feb. 26, 2014, in the Western District of Pennsylvania, Jones possessed crack cocaine with intent to distribute it, he possessed a firearm in furtherance of a drug trafficking crime, and he possessed five firearms after having been convicted of a felony drug- trafficking crime.
The law provides for a maximum total sentence of at least five years and up to life in prison, a fine of up to $2,500,000, 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 Attorneys Katherine A. King and Craig W. Haller are prosecuting this case on behalf of the United States.
The Drug Enforcement Administration and the New Kensington Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Credit Repair Company Agrees to Pay $400,000 Civil Penalty and Halt Illegal Credit Repair PracticesRead the Press Release
The Justice Department’s Civil Division announced today that RMCN Credit Services Inc. (RMCN), of McKinney, Texas, and the Texas residents who own it, Doug and Julie Parker, have agreed to settle a federal court case charging them with falsely disputing negative information on consumers’ credit reports and collecting illegal upfront fees from customers. The defendants have agreed to an order that puts an end to these practices, which are illegal under the Credit Repair Organizations Act (CROA), and pay civil penalties.
“This consent order sends a strong signal to the credit repair industry that we will enforce the law against companies that abuse the credit reporting system by flooding it with false disputes,” said Assistant Attorney General Stuart F. Delery of the Civil Division. “This conduct degrades the accuracy of credit reports and raises costs for all consumers.”
In a complaint filed on behalf of the Federal Trade Commission (FTC) in the U.S. District Court for the Eastern District of Texas, the United States alleged that the defendants operated a credit repair company that offered to improve consumers’ credit scores by disputing negative information on their credit reports. The complaint alleged that RMCN and Doug and Julie Parker lodged false disputes with credit bureaus by sending “consumer” letters raising fabricated disputes over negative information in its customers’ reports. For example, the letters made false statements such as “I was never late” or “This is not my account.” The government’s case further alleged that these letters were not written by consumers. According to the government’s court filings, RMCN sent more than a million dispute letters during the five-year period preceding the complaint (October 2006 to October 2011). This forced credit bureaus and creditors to incur costs responding to bogus letters, which ultimately raised the cost of credit for all consumers.
The complaint also alleged that RMCN charged their customers for credit repair services before those services were fully performed. In particular, the government alleged that defendants charged a significant portion of their fee before any credit repair work began.
The agreed order prohibits defendants from making any untrue or misleading statements to consumer reporting agencies or creditors, prohibits them from charging advance fees for credit repair services, and bars them from making misrepresentations in connection with the sale of any good or service. The order also imposes a civil penalty of $2.35 million. If the defendants pay $400,000, the remainder of the judgment will be suspended based on the defendants’ inability to pay the full amount of the penalty.
Congress enacted CROA to protect the public from unfair and deceptive advertising and business practices by credit repair organizations. CROA prohibits credit repair companies from making false statements, or statements they reasonably should have known were false, to credit bureaus and creditors concerning consumers’ credit standing or creditworthiness. CROA also forbids credit repair companies from charging customers for credit repair services before those services are fully performed.
In agreeing to settle this matter, defendants have not admitted that they knowingly violated CROA.
The case was handled by Trial Attorney Tim Finley of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorney Kevin McClendon of the U.S. Attorney’s Office for the Eastern District of Texas, and Tom Carter, Emily Robinson and Luis Gallegos of the FTC.Colombian Drug Trafficker Sentenced to More Than 19 Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich yesterday sentenced Alex Gonzalez-Arango (39, Buenaventura, Colombia) to 19 years and 7 months in federal prison for conspiracy to distribute five kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States. Gonzalez-Arango pleaded guilty on March 11, 2014.
According to court documents, Gonzalez-Arango was a manager/supervisor of a drug trafficking organization (DTO) operating out of Colombia and Venezuela. In that role, during July and September 2011, he helped to organize and execute multi-ton shipments of cocaine via two different self-propelled semi-submersible (SPSS) vessels. In particular, Gonzalez-Arango recruited crewmembers for both SPSS ventures, and managed the day-to-day operations at the SPSS construction sites in Venezuela.
On or about July 13, 2011, the United States Coast Guard (USCG) interdicted the first SPSS vessel in the Caribbean Sea. The vessel was approximately forty-five feet long. The USCG intercepted the SPSS just as its crew scuttled the vessel, causing it to sink. Thereafter, law enforcement retrieved approximately 232 bales of cocaine from the sunken SPSS, making the total shipment weight approximately 5,861 kilograms of cocaine.
On or about September 17, 2011, the USCG intercepted the second SPSS vessel off of the coast of Honduras, in international waters. This second SPSS was approximately fifty to sixty feet in length and was estimated to be carrying over 3,000 kilograms of cocaine when its crew scuttled it upon interdiction.
This case was investigated by the Panama Express Strike Force, involving members from the Drug Enforcement Administration, the Federal Bureau of Investigation and the United States Coast Guard, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Matthew Jackson.
The Panama Express Strike Force (PANEX) is a federally-approved Organized Crime Drug Enforcement Task Force (OCDETF). Operation Panama Express currently targets South American-based drug trafficking organizations responsible for smuggling drugs to the United States and elsewhere for distribution.
Clarks Summit Man Sentenced to One Year for Threatening to Kill the PresidentRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 42-year-old Clarks Summit man was sentenced today to serve 12 months’ in prison by Senior U.S. District Court Judge James M. Munley to posting a threat to kill the President of the United States on the White House website.
According to United States Attorney Peter Smith, the defendant Nicholas Savino admitted to sending a threat on August 16, 2013, that read: “President Obama the Anti-Christ. As a result of breaking the constitution you will stand down or be shot dead.”
Savino was indicted by a federal grand jury in September 2013, as a result of an investigation by the United States Secret Service and Clarks Summit Police.
Under the terms of the plea agreement, Savino will forfeit to the United States three firearms and approximately 11,000 rounds of ammunition seized by agents from his apartment and vehicle during the investigation.Savino must also serve two years on supervised release following his prison sentence and pay a $3,000 fine.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Chicago Jury Convicts Woman for Retaliating Against Federal Officials by Filing False LiensRead the Press Release
Follow @SDILNewsAfter two days of testimony, a federal jury sitting in Chicago, Illinois, has returned a verdict finding Cherron Marie Phillips, who also goes by the name of “River Tali Bey,” 43, guilty of knowingly filing false maritime liens – each in the amount of $100 billion – against the property of current and former federal employees, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Phillips, a Chicago native, had been accused of filing the phony liens in March and April of 2011 at the Cook County Recorder of Deeds. The liens were placed on the property of two federal prosecutors, including Patrick Fitzgerald, who was then the United States Attorney for the Northern District of Illinois, four federal task force officers, a federal agent, a federal court clerk, and four federal judges, including the former Chief Judge of the United States District Court for the Northern District of Illinois – all on account of their role in the investigation and prosecution of her brother, Devon Phillips. The jury reached a guilty verdict on 10 of 12 counts.
During the trial, the government presented evidence that from 2006 to 2011, Devon Phillips had been investigated and prosecuted in the Northern District of Illinois for trafficking cocaine. His sister regularly attended his court proceedings and filed documents in the record objecting to the jurisdiction of the court. She filed the liens several weeks after he was sentenced to serve over six years in prison. The liens were discovered later that summer, when the clerk of court was attempting a real estate transaction. The title search uncovered a maritime lien that named the clerk as a vessel and claimed he owned Devon Phillips $100 billion.
In March 2012, agents with the Federal Bureau of Investigation and other federal agencies executed a search warrant at Phillips’ home and discovered the original liens locked inside a safe in the master bedroom. A fingerprint expert from the FBI’s laboratory in Quantico, Virginia, told the jury he found Cherron Phillips’ fingerprints on nine of the twelve liens. Jurors also were shown letters that Phillips sent to five of the victims, including former U.S. Attorney Patrick Fitzgerald, apologizing for what she termed “a serious mistake.”
To avoid the appearance of a conflict of interest, the trial was presided over by the Honorable Michael J. Reagan, United States District Judge for the Southern District of Illinois. Upon accepting the jury’s verdict, Judge Reagan ordered Phillips detained pending sentencing, calling her “a paper terrorist” and citing his concerns for the safety of the community if she were allowed to remain on bond. Sentencing is scheduled to be held in Chicago on October 14, 2014.
“We take these cases very seriously,” U.S. Attorney Wigginton stated, “and we will continue to prosecute to the fullest extent of the law all who seek to intimidate, 3 harass, and retaliate against federal judges and employees by filing false liens against their property. This is the basest form of harassment aimed at folks carrying out their sworn duties. No one should have to contend with this type of attempted intimidation.”
The investigation was conducted by the Chicago field office of the Federal Bureau of Investigation, acting in concert with the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorney Nathan D. Stump, from the Southern District of Illinois.
Central Texas Joint Terrorism Task Force Arrest Two for Allegedly Providing Material Support to TerroristsRead the Press Release
Authorities with the Central Texas Joint Terrorism Task Force arrested two Austin area residents for alleged offenses involving providing material support to terrorists announced Robert Pitman, United States Attorney for the Western District of Texas, Christopher Combs, Federal Bureau of Investigation Special Agent in Charge of the San Antonio Division, and John Carlin, Assistant Attorney General for National Security.
Rahatul Ashikim Khan (a.k.a. “Rahat Khan,” “AuthenticTauheed19,” and “AT19”), age 23, was arrested yesterday afternoon at his home in Round Rock, TX. Khan is charged in a federal criminal complaint unsealed in Austin today with conspiring to provide material support to terrorists in violation of Title 18 USC Section 2339A. According to the complaint, from early 2011 to January 2012, he conspired with others to recruit persons to travel overseas to support terrorist activities including committing violent jihad.
Michael Todd Wolfe (a.k.a. “Faruq”), age 23, of Austin, was arrested yesterday at the George H.W. Bush Houston Intercontinental Airport, before boarding a flight to Europe. Wolfe is charged in a separate federal criminal complaint filed in Austin this morning with attempting to provide material support to terrorists in violation of Title 18 USC Section 2339A. According to the complaint, Wolfe planned to travel to the Middle East to provide his services to radical groups engaged in armed conflict in Syria.
“This case is the culmination of a long-term investigation by the FBI and the Joint Terrorism Task Force made up of local, state and federal law enforcement agencies in Central Texas. It’s a textbook example of how well law enforcement agencies in this area work together,” stated United States Attorney Robert Pitman. “Protecting the citizens of this community from the threat of harm both from within the United States and abroad is our highest priority, and we will continue to work with our partners to detect, investigate and prosecute those who seek to advance their ideology through acts of terrorism.”
Khan and Wolfe face up to 15 years in federal prison and a maximum $250,000 fine upon conviction. Both remain in federal custody pending a detention hearing scheduled for Friday at 2:30pm before U.S. Magistrate Judge Mark Lane in Austin.
Both criminal complaints resulted from a Central Texas Joint Terrorism Task Force investigation conducted by the Federal Bureau of Investigation together with the Internal Revenue Service-Criminal Investigation, United States Citizenship and Immigration Services, United States Army Intelligence, Austin Police Department, Round Rock Police Department, Killeen Police Department, University of Texas Police Department, Travis County Sheriff's Office, Texas Department of Public Safety, Office of the Texas Attorney General and the Texas Alcoholic Beverage Commission.
Assistant United States Attorneys Gregg N. Sofer and Michael Galdo, together with DOJ Counterterrorism section trial attorneys Josh Parecki and Michael Dittoe, are prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are innocent unless proven guilty in a court of law.
California Drug Trafficker Sentenced to Life in Prison on Drug Conspiracy and Related ChargesRead the Press Release
CHARLOTTE, N.C. – Corvain T. Cooper, 34, of Inglewood, Calif., was sentenced today to life in prison by U.S. District Judge Robert J. Conrad, Jr., for his role as a source of supply in a drug conspiracy involving marijuana trafficking and financial crimes, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department.
According to court documents and court proceedings, from in or about 2004 through January 2013, Cooper was involved in a drug conspiracy that trafficked marijuana from California to the Charlotte area. Court records show that Cooper was charged with conspiracy to distribute and to possess with intent to distribute at least one thousand kilograms of marijuana as well as money laundering conspiracy and structuring financial transactions through banking institutions to avoid IRS reporting requirements. Cooper, along with two co-defendants, Evelyn LaChapelle and Natalia Wade, were convicted of all charges on October 18, 2013, following a three-day trial.
According to filed documents and evidence presented at trial, the marijuana was shipped to the Charlotte area in commercial crate shipments and overnight packages. Trial evidence established that the conspiracy involved more than 35 tons of marijuana being shipped to Charlotte and millions of dollars of laundered proceeds funneled back to the sources of supply in California. Cooper, who possessed firearms during some drug-related transactions, received a mandatory life sentence because of the drug amount involved and two prior felony drug convictions in California.
Cooper has been in custody since his arrest in California on January 28, 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation to a federal facility. All federal sentences are served without the possibility of parole.
LaChapelle and Wade have been in custody since their October 2013 conviction and are currently awaiting sentencing.
This prosecution is part of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation code-named “Goldilocks” that has resulted in the conviction of more than 55 defendants for marijuana trafficking, money laundering, and firearms violations over the past five years. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation was led by HSI and CMPD, assisted by the Gastonia Police Department, the Concord Police Department, the Mooresville Police Department, the Pineville Police Department, the Huntersville Police Department, the Kannapolis Police Department, the Cornelius Police Department, the Waxhaw Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Bureau of Investigation, the Iredell County Sheriff’s Office, the Union County Sheriff’s Office, and the Beverly Hills and Culver City, California Police Departments.
The prosecution for the government was handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Victor Marshall, 36, of Buffalo, N.Y., who was convicted of conspiracy to distribute 500 grams or more of cocaine, was sentenced to 130 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that in 2011, Marshall supplied cocaine to co-defendants Gerry Spencer, Besari Torres, and Mario Pena who then distributed the cocaine in the City of Buffalo. On October 7 and October 19, 2011, the defendant sold cocaine to a confidential informant. On November 22, 2011, Marshall possessed 10 ounces of cocaine.
Besari Torres, Gerry Spencer and Mario Pena have been convicted of similar charges and sentenced.
The sentencing is the culmination of an investigation by the Safe Streets Task Force, under direction of the Federal Bureau of Investigation.Barrington Payroll Service Company Owner Indicted for Allegedly Diverting Client Federal Employment Taxes Due the IRSRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence today returned a nine-count indictment alleging that Warren Hebert, 66, of Barrington, R.I., owner of Checkmaster Payroll Service, a payroll company which provided payroll services to private companies and at least one municipal agency, devised a scheme to defraud at least nine businesses and the Seekonk, Mass., Water District of federal payroll taxes that were to have been paid to the IRS, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
The indictment alleges that Hebert withdrew funds from client accounts that were to have been used to pay the clients’ federal employment taxes and diverted the funds for other purposes. It is alleged that Hebert provided clients with “client copy” tax returns indicating that the taxes had been paid to the IRS, when they had not. It is also alleged that Hebert falsely represented to his clients that tax delinquency notices they received from the IRS were the result of administrative errors by the IRS.
According to the indictment, beginning in at least April 2009, and continuing through at least October 2011, Hebert allegedly diverted money from at least nine businesses operating in Rhode Island and Massachusetts, including, among others, a moving and storage company, nursery school, jewelry packaging company, and a marketing and communications company, and from the Seekonk Water District, a municipal water agency located in Seekonk, Mass.
The indictment charges Hebert with eight counts of wire fraud and one count of impeding the administration of the Internal Revenue Code. An indictment is merely an allegation 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.
Wire fraud is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $250,000. Impeding the administration of the Internal Revenue Code is punishable by a statutory penalty of up to 3 years in federal prison and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by IRS Criminal Investigation, with the assistance of the FBI, Rhode Island FDA Task Force, Rhode Island State Police and Barrington Police.
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Contact: 401-709-5357
[email protected]Baltimore Bank Ordered to Forfeit $560,000 for Failing to File Currency Transaction Reports on Drug Proceeds Laundered Through the BankRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar has ordered M&T Bank to forfeit $560,000 in drug proceeds laundered through the bank on which the bank failed to file currency transaction reports.
The forfeiture was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department."Financial institutions face penalties if they accept cash deposits without filing currency transaction reports,” said U.S. Attorney Rod J. Rosenstein. “The reports allow law enforcement to trace cash deposits by criminals who try to avoid creating a paper trail."
According to the complaint filed in support of the forfeiture, Deanna Bailey was a member of a drug trafficking organization based in Maryland. Sabrina Fitts was the head teller at the Perry Hall branch of M&T Bank. On at least eight occasions between 2011 and 2013, Bailey came to M&T Bank and asked Fitts to convert the proceeds from the sale of illegal drugs from small denomination bills (i.e. $5, $10 and $20 bills) to $100 bills. The amounts involved in each transaction ranged from $20,000 to $100,000, with most transactions involving $50,000 or more. Bailey paid Fitts a one percent fee for each transaction for making the exchange without filing a currency transaction report.The government filed a civil action on February 10, 2014 alleging that M&T Bank is required to forfeit $560,000 that was transferred to the bank by Bailey in exchange for $100 bills. The complaint alleged that the money was subject to forfeiture because M&T Bank failed to file currency transactions reports on bank transactions in amounts in excess of $10,000 as required by law. Fitts admitted that on each occasion she converted the bills without filing or causing anyone else at M&T Bank to file a currency transaction report.
Sabrina Nicole Fitts, age 29, of Baltimore, Maryland, was sentenced to a month in prison followed by eight months of home detention for failing to file currency transaction reports on suspected drug proceeds. Judge Bredar also ordered Fitts to perform 250 hours of community service and to forfeit $5,000 she was paid by Bailey for converting the drug proceeds. Deanna Bailey, age 33, of Baltimore, was sentenced to 46 months in prison for conspiring to commit money laundering. Judge Bredar also ordered Bailey to forfeit $500,000.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Stefan D. Cassella, who prosecuted the case.Amherst Woman Convicted of Bank RobberyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Sheila L. Cassata, 48, of Amherst N.Y., pleaded guilty before District Court Judge Richard J. Arcara to bank robbery. The charge carries a maximum term of imprisonment of 20 years, a $250,000 fine, or both.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, Cassata was arrested on January 15, 2014 along with co-defendant Michael Mitchell, a/k/a Max. The defendant drove Mitchell to a KeyBank branch at 201 Amherst Street, in Buffalo on December 27, 2013, knowing that Mitchell was intending to rob the bank. In addition, Cassata drive Mitchell to an M&T Bank at 130 Grant Street in Buffalo on January 3, 2014, and a First Niagara Bank at 1248 Abbott Road in Lackawanna on January 9, 2014, knowing that Mitchell was intending to rob the banks.
“With each conviction, we believe we are getting closer to the end of a crime spree which focused on area banks,” said U.S. Attorney Hochul.
Michael Mitchell is currently charged with robbing the three banks. As indicated in publicly filed charging documents, the bank robberies contain similarities to a total of 22 separate bank robberies that began on April 23, 2013. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the FBI Safe Street Task Force.
Sentencing is scheduled for October 1, 2014 at 1:00 p.m. before Judge Arcara.Alien Indicted for Re-EntryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury today returned an indictment charging an illegal alien from Mexico with unlawful re-entry into the United States.
According to United States Attorney Peter Smith, Antonio Figueroa-Zamora, age 29, of Monroe County, an alien who had previously been deported from the United States pursuant to law, was charged by the grand jury for allegedly re-entering the United States on or before June 4, 2014 at an unknown place.
If convicted, Antonio Figueroa-Zamora faces a term of imprisonment of two years of imprisonment.
The investigation was conducted by U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Philadelphia. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 2 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.
Alien Indicted for Re-EntryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury returned an indictment yesterday charging an illegal alien from Nicaragua with unlawful re-entry into the United States.
According to U.S. Attorney Peter Smith, Juan Carlos Tellar-Mendoza, age 27, of Lackawanna County, an alien previously been deported from the United States, was charged by the grand jury for allegedly re-entering the United States on or before May 4, 2014, at an unknown place.
If convicted, Juan Carlos Tellar-Mendoza faces a term of imprisonment of two years of imprisonment.
The investigation was conducted by U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Philadelphia. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 2 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.
28 Indicted on Synthetic Drug Trafficking ChargesRead the Press Release
St. Louis, MO – Within the last thirty hours, twenty-eight people have either been arrested or have surrendered on multiple charges contained in four separate indictments alleging offenses involving the manufacturing and sale of synthetic drugs. Specifically charged in each indictment are: a) conspiracy to distribute and possess with the intent to distribute Schedule I controlled substances and Schedule I controlled substance analogues; b) conspiracy to introduce and receive misbranded drugs in interstate commerce; c) conspiracy to import controlled substances and controlled substance analogues; d) conspiracy to receive, sell and facilitate the transportation of smuggled goods with forfeiture allegations; and e) money laundering counts.
The manufacture of synthetic drugs is a recent development designed to circumvent traditional drug laws by creating new chemical compounds that mimic the effects of drugs like marijuana and cocaine, but purport to avoid the classification of a controlled substance because of a chemical alteration. The synthetic drugs are most frequently marketed as legitimate products and sold in typical commercial outlets such as convenience stores and gas stations. The drugs masquerade as incense, potpourri, glass cleaner, bath salts, and plant food, just to name a few; their cost however is much higher than the normal commercial product they mimic.
One group of synthetic drugs is made up of cathinones, and is a “speed” type drug commonly marketed as bath salts. The synthetic cathinones are typically snorted and are packaged in containers with names such as Full Throttle, Fresh, Limited, Starry Nights, Twisted, Pump It and Blitz. Reported effects have included hypertension, paranoia, anxiety and even psychosis.
Another group of synthetic drugs is made from synthetic cannabinoids which are a far more powerful and unpredictable form of marijuana. The cannabinoids are typically smoked and are packaged in multi-gram packets with names such as Mega Kush, Mad Hatter, Bayou Blaster, Avalon, Pirates Booty, Lights Out, Golden Leaf, DEEW, Cloud 9, Primo, Optima and Crazy Eyes. Although commonly referred to as synthetic marijuana, the effects are far more powerful and dangerous than so-called natural marijuana, with reported additional effects, including excessive heart rate, vomiting and seizures.
United States Attorney Richard Callahan warned, "Parents should not be lulled into a false sense of confidence that these substances must be okay just because they were purchased down at the corner gas station or convenience store. The bottom line is that these drugs are extremely dangerous, and the ingestion of these substances has led to serious medical consequences requiring hospitalization and even death and suicide."
"These drugs can cause serious health problems or even kill those who ingest them," said James Gibbons, Deputy Special Agent in Charge for HSI Chicago, which oversees St. Louis. "Homeland Security Investigations will continue to work with our federal, state and local law enforcement partners to identify these criminal schemes, seize their unregulated contraband and bring purveyors of synthetic drugs to justice."
IRS Criminal Investigation Special Agent in Charge James C. Lee stated, "IRS-Criminal Investigation is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society. IRS-CI will continue to investigate and protect the American people."
Charged in the first indictment (4:14CR00150 JAR) are:
- Anwer Rao, O’Fallon, IL
- Michael Lentsch, O’Fallon, IL
- Matthew Fiedler, Belleville, IL
- Larry Farmer, Jr., Keyesport, IL
- Charles Kinney, O’Fallon, IL
- Brandien Robinson, O’Fallon, IL
- Mansi Patel, Phoenix, AZ
Charged in the second indictment (4:14CR00152 FWS) are:
- Greg Sloan, St. Charles, MO
- Doug Sloan, Indianapolis, IN
- Igor Holdaiy, St. Louis, MO
- Elizabeth Pogue, Bridgeton, MO
- Charles Wolfe, St. Peters, MO
- Brett Beeman, O’Fallon, MO
- Sherri Beeman, O’Fallon, MO
- Roger Galvin, Charlack, MO
- John Galvin, St. Louis, MO
- Robert Jaynes, Jr., Indianapolis, IN
- Kirk Parsons, Indianapolis, IN
- David Neal, Carmel, IN
- Marcia Gronek, St. Peters, MO
Charged in the third indictment (4:14CR00175 AGF) are:
- Mark Palmer, Granite City, IL
- Anthony Palmer, Mt. Vernon, IL
- Samuel Leinicke, Arnold, MO
- Charles Wolfe, St. Peters, MO
- Robert Wolfe, Hazelwood, MO
- Joseph Gabrick, O’Fallon, MO
Charged in the fourth indictment (4:14CR000187 JAR) are:
- Pamela Tabatt, St. Peters, MO
- Richard Gross, Winfield, MO
- Paul Berra, Jr., Warrenton, MO
If convicted, the drug conspiracy charges and money laundering conspiracy charges carry a penalty of up to 20 years in prison for each count and/or fines ranging from $500,000 to $1,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Additionally the indictments seek forfeiture of assets and property totaling more than $12 million.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Drug Enforcement Administration, the Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was received from the St. Louis County Police Department, St. Charles County Sheriff’s Department, MO Lake Area Narcotics Enforcement Group, Metropolitan Enforcement Group for Southern IL, Southern Illinois Drug Task Force, the Illinois Attorney General’s Office, as well as the prosecuting attorneys offices in St. Louis County, MO, St. Charles County, MO, Madison County, IL and St. Clair County, MO. Assistant United States Attorneys James Delworth, Erin Granger, Jennifer Winfield and John Mantovani are handling the cases for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Tuesday 17 June 2014
Zuni Pueblo Man Sentenced to Seven Years in Prison for Brandishing a Firearm During a Crime of ViolenceRead the Press Release
ALBUQUERQUE – Shannon D. Concho, 36, a member of Zuni Pueblo, was sentenced this morning to seven years in federal prison followed by two years of supervised release for brandishing a firearm during a crime of violence, announced U.S. Attorney Damon P. Martinez and Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department.
Concho was arrested in Oct. 2012, on an indictment charging him with three counts of assault with a dangerous weapon (a shotgun), being a felon in possession of a firearm, and brandishing a firearm during a crime of violence. Concho was charged with committing all five offenses on Oct. 2, 2011, within Zuni Pueblo. At the time, Concho was prohibited from possessing firearms or ammunition because he previously had been convicted of two felonies, involuntary manslaughter and aggravated assault.
On Feb. 27, 2014, Concho pled guilty to Count 5 of the indictment charging him with brandishing a firearm during a crime of violence. In his plea agreement, Concho admitted that on Oct. 2, 2011, he brandished a 12 gauge shotgun during and in furtherance of a crime of violence. Concho admitted assaulting two men by pointing the shotgun at one man’s head and pushing the muzzle of the shotgun into the second man.
This case was investigated by the Zuni Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Woman Sentenced in Manhattan Federal Court for “Water Park for Foster Kids” FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that LILIANA TRAFFICANTE was sentenced this morning in Manhattan federal court by U.S. District Judge Deborah A. Batts to 41 months in prison for her leadership role in a five-year scheme to obtain money from investors by claiming that the money would be used for a project intended to help foster children, when in fact TRAFFICANTE spent much of the money on personal expenses and other purposes. TRAFFICANTE pled guilty to charges of conspiracy to commit wire fraud in September 2010, and agreed to pay restitution to the victims of her offense, pursuant to a plan to be set by the Court.
Manhattan U.S. Attorney Preet Bharara said: “Instead of developing water parks for foster children as she said she would, Liliana Trafficante used the money to support her own lifestyle. In doing so, she exploited a worthy cause for personal gain, cheating foster kids out of an opportunity to truly benefit from the investors’ contributions.”
According to the charging documents in the case and statements made in open court today at the sentencing proceeding:
LILIANA TRAFFICANTE held herself out as the founder and Chief Executive Officer of International Dreams, a Manhattan-based entity. In addition, she is the principal of, or otherwise affiliated with, a number of entities that appear to be related to International Dreams, including GoOcean Park and Resort LLC, Bouchville Manors, The Little Water Park That Could, and Signature A (collectively, the “Trafficante Entities”). TRAFFICANTE claimed to be raising money for the purchase of land and completion of a water park for foster children (the “Water Park Project”). Among other methods, TRAFFICANTE raised money through postings on the Craigslist website. TRAFFICANTE made numerous false statements to individuals in order to induce them to make loans to and/or investments in the Trafficante Entities.
For example, according to the Complaint, TRAFFICANTE told one individual that land had been located for the Water Park Project. TRAFFICANTE claimed that the land was rich with natural resources, the exploration of which prior to construction could help fund the Water Park Project. Based on these representations, the individual loaned $100,000 to one of the Trafficante Entities. In connection with this loan, TRAFFICANTE and this individual executed a promissory note that stated that the “purpose” of the $100,000 loan was to help “GoOcean Water Park & Resort purchase excavating equipment.” In fact, no land had been purchased by TRAFFICANTE for a water park, or for any other purpose, and the money was not used for equipment of any kind. Rather, among other non-equipment payments, TRAFFICANTE made $40,000 in rent payments on behalf of family members the same day that the $100,000 was wired to an account she controlled.
In addition to the prison term, Judge Batts sentenced TRAFFICANTE to three years of supervised release. TRAFFICANTE also was ordered to pay restitution of $750,000, as well as a $100 special assessment fee.
Mr. Bharara praised the work of the FBI, which investigated this case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Eugene Ingoglia is in charge of the prosecution.
Woman Involved in Kidnapping and Death of Atlantic City Woman Sentenced to 35 Years in PrisonRead the Press Release
CAMDEN, N.J. – An Atlantic City, N.J., woman was sentenced today to 35 years in prison for her role in the kidnapping and death of a 20-year-old Atlantic City woman, U.S. Attorney Paul J. Fishman announced.
Shamerria Smith, 27, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging her with one count of use of a firearm in furtherance of a crime of violence – specifically, the Hobbs Act robbery and kidnapping that resulted in the death of Nadirah Ruffin. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:On March 23, 2011, a person identified as “D.H.” met with Isiah Ruffin (no relation to the victim) in the courtyard area of a housing complex on North Maryland Avenue, a section of Atlantic City known as “Back Maryland,” to talk to Isiah Ruffin about a dispute between Isiah Ruffin and Victim One. After a brief conversation, D.H. viciously assaulted Isiah Ruffin, knocking Isiah Ruffin unconscious and robbing him of cash. When Isiah Ruffin regained consciousness, D.H. assaulted him again. As a result of the assault, Isiah Ruffin was treated at the Atlantic City Medical Center for a possible concussion and facial lacerations. After Isiah Ruffin was released from the hospital, Smith and Aziz Sanders, 21, of Atlantic City, visited Isiah Ruffin, during which time Isiah Ruffin told Smith that D.H. had assaulted him.
To retaliate, Smith planned to enter Victim One’s house and assault and rob Victim One of illegal drugs and money. Sanders agreed to help Smith execute her plan and recruited a third co-defendant, DeShawn Hicks, 22, of Atlantic City, to participate. Smith supplied the gun, duct-tape and handcuffs.
On March 26, 2011, Smith, Sanders, and Hicks entered Victim One’s house and duct-taped Victim One and four other victims, including Nadirah Ruffin, who were present. While in the house, Sanders and Hicks took money from Victim One, some of which Victim One had earned from selling illegal drugs. They took money from another victim, as well as marijuana that the victim was planning to sell. Sanders and Hicks admitted to taking more than $500 dollars and 50 bags of marijuana from the house.
During the robbery, Nadirah Ruffin recognized Smith’s voice. Smith ordered Sanders to punch Nadirah Ruffin. After Sanders hit Nadirah Ruffin, Smith punched her because she did not think Sanders had hit her hard enough. As the three defendants were leaving the residence, Smith told Sanders and Hicks to take Nadirah Ruffin from the residence. Smith, Sanders and Hicks then placed Nadirah Ruffin in a green van. They drove first to the Clementon area and eventually to Philadelphia. Smith said that because she was a mother she could not kill Nadirah Ruffin. Smith placed the gun near Sanders and told him that they were not leaving until someone else killed Nadirah Ruffin. Sanders and Hicks took Nadirah Ruffin to the banks of the Schuylkill River, where Sanders shot her in the head, killing her. Her body was dumped in the river.
In addition to the prison terms, Judge Rodriguez sentenced Smith five years of supervised release and ordered her to pay restitution of $1,512,840. Hicks and Sanders have also pleaded guilty and both are scheduled to be sentenced July 9, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Chief Henry White, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden, assisted by Assistant U.S. Attorney David Feder of the U.S. Attorney’s Office Appeals Division in Newark, and Mark Coyne, Chief of the Appeals Division.
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Defense counsel:
Smith: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Sanders: Edward Borden Esq., Cherry Hill, N.J., and Carl J. Herman Esq., West Orange, N.J.
Hicks: Michael Huff Esq., Camden, and David Glazer Esq.Washington Woman Pleads Guilty to Assault and Causing Serious Bodily InjuryRead the Press Release
COEUR D'ALENE - Marisa Belle Hawk, 28, of Wapato, Washington, pleaded guilty today to assault with a serious bodily injury, U.S. Attorney Wendy J. Olson announced. Hawk was indicted by a federal grand jury in Coeur d'Alene on December 17, 2013.
According to court documents, Hawk admitted that on November 23, 2013, she used a handgun and shot the victim in the leg. All of these events occurred within the boundaries of the Nez Perce Indian Reservation.
The charge of Assault Resulting in Serious Bodily Injury is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and up to 3 years of supervised release.
Sentencing is set for August 27, 2014, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
The case was investigated by Federal Bureau of Investigation (FBI) and the Nez Perce Tribal Police.
U.S. Files Lawsuit Against IPC the Hospitalist Company, Alleges Overbilling of Federal Health Insurers for Physician ServicesRead the Press Release
CHICAGO — The United States filed a civil lawsuit against California-based IPC The Hospitalist Company, Inc., and its subsidiaries, alleging that IPC submitted false claims to federal health care programs, the U.S. Attorney’s Office announced today. The complaint alleges that IPC violated the federal False Claims Acts by knowingly engaging in systematic overbilling for hospital evaluation and management services billed to Medicare, Medicaid, and other federal health benefit programs.
The government’s complaint, intervening in a whistleblower’s lawsuit, was filed yesterday in U.S. District Court. Last December, when the whistleblower’s lawsuit was unsealed, the United States gave notice of its intention to file its own complaint.
IPC, based in North Hollywood, Calif., is one of the largest hospitalist companies in the United States, employing 2,500 hospitalist physicians and other health care providers in more than 1,300 facilities in 28 states. Hospitalists are physicians who work only in hospitals and other long-term care facilities, overseeing and coordinating inpatient care for patients from admission to discharge.
The government’s lawsuit alleges that IPC physicians sought payment for higher and more expensive levels of medical service than were actually performed ― a practice commonly referred to as “upcoding.” Specifically, the lawsuit alleges that IPC encouraged its physicians to bill at the highest levels regardless of the level of service provided and pressured physicians with lower billing levels to “catch up” to their peers.
“IPC’s upcoding scheme caused, and still continues to cause, Medicare, Medicaid and other federal payors to overpay millions of dollars to IPC,” the suit states. “As a result of corporate/management pressure, and/or in keeping with IPC corporate culture and expectations to maximize billings, IPC hospitalists have routinely and systematically submitted upcoded claims for payment to the United States,” it adds.
The lawsuit was originally filed under seal in 2009 by Dr. Bijan Oughatiyan of Dallas, who worked as a hospitalist for IPC in San Antonio from 2003 to 2008, under the qui tam or whistleblower provisions of the False Claims Act. The federal law and similar state statutes permit private individuals to sue for false claims on behalf of the government and to share in any recovery. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover three times its damages plus civil penalties ranging from $5,500 to $11,000 for each false claim submitted.
As alleged in the government’s complaint, more than half of IPC’s revenues have come historically from government medical insurers, including Medicare and Medicaid, as well as the TRICARE Program, the Federal Employee Health Benefits Program, and the Railroad Retirement Medicare Program.
The lawsuit alleges that IPC pressured and encouraged its physicians to engage in systematic overbilling of the codes submitted to government health benefit programs for evaluation and management procedures such as admission, subsequent hospital visits, and discharge of patients. Based on IPC’s regular and detailed monitoring of the codes billed by individual physicians, the lawsuit alleges that IPC was aware that its physicians were using the highest-level billing codes (those which require the most work and are reimbursed at the highest amounts) at rates far in excess of what would normally be expected. It further alleges that IPC knew or should have known that its physicians could not have actually been performing the services at the levels for which claims were submitted.
The complaint illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case is being handled by the U.S. Attorney’s Office for the Northern District of Illinois and the Fraud Section of the Commercial Litigation Branch of the Justice Department’s Civil Division, with assistance from the U.S. Department of Health and Human Service’s Office of Inspector General, the Office of Personal Management’s Office of Inspector General, and the Railroad Retirement Board’s Office of Inspector General. The government is being represented by Assistant U.S. Attorney Eric Pruitt and DOJ Senior Trial Counsel Elizabeth Rinaldo.
The case is captioned United States ex rel. Oughatiyan v. IPC The Hospitalist Company, Inc., et al., No. 09 C 5418 (N.D. Ill.). The claims asserted against IPC are allegations only, and there has been no determination of liability. In a civil case, the government has the burden of proving the allegations by a preponderance of the evidence.
Complaint