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7 August 2014
Sentencing for August 1 - 5, 2014Read the Press Release
Jasmine Bradley, 28, of Orlando, Florida, was sentenced by Federal District Court Judge Alan B. Johnson on August 5, 2014, on one count of use of unauthorized access devices to obtain $1,000 or more and aiding and abetting and on three counts of aggravated identity theft and aiding and abetting. Bradley was arrested in Green River, Wyoming. She received 46 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 special assessment and $235,903.59 restitution, joint and several with co-defendants. This case was investigated by the U.S. Secret Service.
Mindy Nichole Lawrence, 35, of Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on August 5, 2014, for bank robbery and aiding and abetting. Lawrence was arrested in Casper, Wyoming. She received 87 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $32,896.06. This case was investigated by the Casper Police Department and the Federal Bureau of Investigation.
Maurice W. Bright, Jr., 28, of Orlando, Florida, was sentence by Federal District Court Judge Alan B. Johnson on August 5, 2014, on one count of use of unauthorized access devices to obtain $1,000 or more and aiding and abetting and one count of possession of fifteen or more unauthorized access devices and aiding and abetting. Bright was arrested in Green River, Wyoming. He received 33 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and restitution in the amount of $95,118.44, joint and several with co-defendants. This case was investigated by the U.S. Secret Service.
Matthew Anderson, 30, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on August 1, 2014, on one count of passing counterfeit obligations of the United States and one count of passing counterfeit obligations of the United States and aiding and abetting. Anderson was arrested in Cheyenne, Wyoming. He received 30 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and restitution in the amount of $850.00. This case was investigated by the U.S. Secret Service.
Rochester Man Sentenced on Bank and Loan Fraud ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Michael C. Kaufman, of Pittsford, N.Y., who was convicted following a federal jury trial of conspiracy to commit bank and loan fraud, as well as bank and loan fraud, was sentenced to a 12 months in prison and ordered to pay restitution in the amount of $1,360,893.72 by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorneys Craig R. Gestring and Bradley E. Tyler, who handled the trial of the case, stated that between 2002 and June 2008, the defendant, and his son Richard Kaufman, directed the Controller of American Industrial Sales, d/b/a RAK Industries, to provide false financial statements to Key Bank, and to the company’s outside accounting firm. The false financial statements significantly overvalued the accounts receivable and inventory, which were the two assets that Key Bank relied upon as collateral for a total loan credit of $2,000,000.
The loan proceeds were used by the defendants to fund their personal lifestyles including expensive homes, generous salaries and country club memberships. After the defendants defaulted on the Key Bank loan in the summer of 2007, they converted to their personal use approximately $53,000 of accounts receivable proceeds that were the property of Key Bank. As a result of the fraud scheme, Key Bank suffered an immediate loss of over $1.5 million.
Richard Kaufman was also convicted at trial and sentenced to 46 months in prison.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and Postal Inspectors with the United States Postal Inspection Service under the direction of Shelly A. Binkowski, Postal Inspector in Charge, Boston Division..
Rochester Man Arrested and Charged with Robbing the Same Bank Three TimesRead the Press Release
ROCHESTER N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Edward Brown, 51, of Rochester, N.Y., was arrested and charged by a criminal complaint with bank robbery. The charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, the defendant entered the Citizens Bank at 40 Franklin Street in Rochester on June 25, 2014 and told the teller “I got a gun in my waist, I don’t want anybody to get hurt. Give me money in small bills.” The teller gave Brown a specific amount of money.
The complaint further states that on July 31, 2014, the defendant entered the same Citizens Bank, approached a teller and said “Give me money in small bills.” The teller again gave Brown a specific amount of money.
The defendant entered the Franklin Street branch a third time on August 4, 2014. On that date, Brown told the teller “I have a gun and I’ll use it.” Once again, the teller gave Brown a specific amount of money.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson and is being held without bail. Brown is due back in court on August 27, 2014 at 9:00 a.m.
The criminal complaint is the culmination of an investigation on the part of the Rochester Police Department’s Major Crimes and Tactical Units, under the direction of Chief Michael Ciminelli, the Federal Bureau of Investigation, and the NYS Department of Corrections and Community Service under the direction of Acting Commissioner Anthony J. Annucci.
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.Rochester Man Arrested Second Time in Two Days for Threatening to Kill the President, Governor, and Lt. GovernorRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Brandon Correa, 30, of Rochester, N.Y., was arrested on new charges of making a direct threat to kill the President of the United States, Barack Obama. The defendant is also accused of making new online threats to kill New York Governor Andrew Cuomo and New York Lieutenant Governor Robert Duffy. Each count is punishable by five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to a criminal complaint, the defendant, who was indicted on August 5, 2014 on similar charges, was on Twitter and Facebook within the last 48 hours posting new threats. Some of the new postings included photographs of President Obama, Governor Cuomo, and Lt. Governor Duffy and the text “…you three get ready to die”.
The defendant appeared before U.S. Magistrate Judge Marian W. Payson this afternoon and was detained. Correa is due back in court on August 11, 2014 at 3:00 p.m. before Judge Payson.
The complaint is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast, and Investigators from the New York State Police, Protective Services Unit, under the direction of Major Stephen Nevins.
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.Providence Felon Sentenced to 46 Months in Federal Prison on Gun ChargeRead the Press Release
PROVIDENCE, R.I. – Lazar Hazard, 31, of Providence, was sentenced today to 46 months in federal prison for being a convicted felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Hazard to serve three years supervised release upon completion of his prison term. Hazard pleaded guilty in May 2014, as charged in a one-count indictment, to being a felon in possession of a firearm.According to information presented to the court, in January 2014, members of the Providence Police Department Narcotics and Organized Crime Bureau received information about an individual dealing drugs in the north end of the city. On January 27, while conducting surveillance of the area, detectives watched as Hazard drove up and met up with a person driving a separate vehicle and allegedly provided the person with a small quantity of drugs in exchange for cash. Detectives continued to follow Hazard and watched as he picked-up another person already known to the police. Detectives stopped Hazard’s vehicle and placed him in custody.
According to information presented to the court, detectives obtained a court authorized search warrant for Hazard’s residence. A search of the residence resulted in the seizure of .10 mm Glock Pistol with three magazines of ammunition, as well as various items used in the packaging and distribution of drugs, and $510 in cash. Hazard admitted to detectives that the firearm was his and that he obtained it for protection.
Hazard had previously been convicted in Rhode Island state court of a crime punishable by more than one year imprisonment.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in this matter.
This case was brought as part of the Rhode Island Urban Violent Crime Initiative. The Rhode Island Urban Violent Crime Initiative is a local, state and federal law enforcement collaboration to proactively identify, investigate and prosecute individuals responsible for crimes of violence in urban neighborhoods.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Prominent Wine Dealer Rudy Kurniawan Sentenced in Manhattan Federal Court to 10 Years in Prison for Selling Millions of Dollars of Counterfeit WineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that prominent wine dealer RUDY KURNIAWAN was sentenced today to 10 years in prison for carrying out an elaborate scheme in which he manufactured and sold counterfeit bottles of purportedly rare and expensive wine for millions of dollars, and for fraudulently obtaining a $3 million loan from a financing company. KURNIAWAN was found guilty in December 2013 following a one-week jury trial before U.S. District Judge Richard Berman, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Rudy Kurniawan planned and executed an intricate counterfeit wine scheme, mixing cheaper, more common wines, bottling the mixture into old bottles with fake labels, and then fraudulently selling those bottles for millions of dollars. Now, Kurniawan will trade his life of luxury for time behind bars.”
According to the evidence presented at trial, documents filed in Manhattan federal court, and statements made at today’s sentencing proceeding:
The Counterfeit Wine Scheme
KURNIAWAN had been a collector of fine and rare wines, and rose to become one of the most prominent and prolific dealers in the United States of purportedly rare and expensive wine. From 2004 through 2012, he engaged in a systematic scheme to defraud wine collectors and others by selling and attempting to sell numerous counterfeit bottles of purportedly rare and expensive wine. KURNIAWAN manufactured counterfeit bottles of rare and vintage wine at his home in Arcadia, California, operating what was, in effect, a counterfeit wine laboratory.
KURNIAWAN mixed and blended lower-priced wines so that they would mimic the taste and character of rare and far more expensive wines. He then poured his creations into empty bottles of rare and expensive wines that he obtained from various sources and created a finished product by sealing the bottles with corks and outfitting the bottles with counterfeit wine labels he created. KURNIAWAN then sold and attempted to sell these counterfeit bottles of wine at auctions and in direct sales to wealthy wine collectors. KURNIAWAN earned millions of dollars through the sale of these counterfeit bottles of wine.
The Scheme to Defraud a Lender
KURNIAWAN also devised and carried out a scheme to fraudulently obtain a $3 million loan from a financing company located in New York City that specialized in extending loans that are secured by valuable collectibles, such as art and wine. KURNIAWAN obtained the loan by providing false information to, and concealing material information from, the financing company, including falsely omitting approximately $7.4 million in outstanding loans, falsely representing his annual expenses, and falsely representing that he was a permanent resident of the United States when he had no legal immigration status in the United States and had, in fact, been ordered by an immigration court to leave the country years earlier.
In addition to the prison sentence, KURNIAWAN, 37, of Arcadia, California, was ordered to forfeit $20 million and to pay restitution to his victims of $28,405,502.5.
Mr. Bharara praised the outstanding work of the FBI’s Art Crime Team and its New York and Los Angeles field offices.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Stanley J. Okula, Jr. is in charge of the prosecution. Assistant U.S. Attorney Andrew Adams is handling the forfeiture aspects of the prosecution.
U.S. v. Rudy Kurniawan indictment
Porcupine Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 29, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jaron Thunder Hawk, age 21, was sentenced to 96 months in custody, 6 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Thunder Hawk was indicted for three charges of Aggravated Sexual Abuse by a federal grand jury on January 22, 2014. He pled guilty to the charge of Abusive Sexual Contact on April 3, 2014.
The conviction stems from Thunder Hawk having abusive sexual contact with young female relatives between January and August 2013 near Porcupine.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Thunder Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Placement Agent Charged with Bribery in CalPERS Corruption ConspiracyRead the Press Release
SAN FRANCISCO – A federal grand jury earlier today indicted Alfred J. Villalobos, of Reno, Nev., on charges of conspiracy to commit corruption offenses and to defraud the United States, engaging in a scheme to conceal material facts from the United States, and conspiracy to commit mail fraud and wire fraud, announced U.S. Attorney Melinda Haag, U.S. Postal Inspection Service, Inspector in Charge Rafael E. Nunez, FBI Special Agent in Charge David J. Johnson, and U.S. Secret Service Special Agent in Charge Andrew Adelmann.
This indictment adds corruption allegations to, and supersedes, an earlier indictment returned in March 2013.
According to the superseding indictment, Villalobos conspired with Fred Buenrostro, the former Chief Executive Officer (“CEO”) of the California Public Employee Retirement System (“CalPERS”) in connection with a $3 billion investment by CalPERS into funds managed by Apollo Global Management (“Apollo”), a private equity firm based in New York City. Villalobos, through his financial services firm, ARVCO Capital Research LLC (“ARVCO”), acted as the placement agent through which Apollo secured the investments by CalPERS.
The superseding indictment alleges that no later than 2005, Villalobos began giving Buenrostro secret benefits for the purpose of influencing and rewarding him in the exercise of his powers and duties as CEO concerning CalPERS’ financial transactions, investment operations, and internal deliberations, for the benefit of Villalobos. The benefits from Villalobos included payments of approximately $250,000, as well as gifts, domestic and international travel, meals, entertainment, payment for Buenrostro’s wedding, and his subsequent employment at ARVCO after he left CalPERS in May of 2008. In exchange, Buenrostro provided Villalobos with access to CalPERS’ confidential information relating to investments and other proprietary matters and attempted to influence the CalPERS investment staff and CalPERS Board, as directed by Villalobos.
In 2007, Apollo told ARVCO that it required signed Investor Disclosure letters from CalPERS prior to paying ARVCO any fees for its efforts in securing CalPERS’ investments into Apollo-managed funds. After CalPERS’ legal and investment offices declined to sign the first Investor Disclosure letter documenting ARVCO’s relationship with Apollo, Villalobos and Buenrostro conspired to create a series of fraudulent Investor Disclosure letters that were transmitted to Apollo. Apollo paid ARVCO a total of approximately $14 million dollars in fees after receiving the fraudulent letters.
The superseding indictment further alleges that when civil and later criminal investigations were opened into the operations of ARVCO and its role as a placement agent in connection with CalPERS’ investments in Apollo-managed funds, Villalobos and Buenrostro agreed on a false version of facts and subsequently made misrepresentations to, and concealed information from, the SEC, the USPIS, and the FBI, about their financial relationship and the authenticity of the Investor Disclosure letters.
On July 11, 2014, Buenrostro was charged by superseding information with a single count of conspiracy in violation of Title 18, United States Code, Section 371, and pleaded guilty before the Honorable Charles Breyer, United States District Court Judge, to that charge in an agreement with the government that included his promise to cooperate in future investigations. Both defendants are currently released on bond. The arraignment for Villalobos on the superseding indictment is not yet scheduled. However, a status hearing is scheduled before Judge Breyer for Aug. 8, 2014, at 9:00 a.m.
The maximum statutory penalty for conspiracy to defraud the United States, and for a scheme to conceal material facts from the United States, is five years of imprisonment, $250,000 fine or twice the amount of gain or loss, whichever is greater, three years of supervised release, and a $100 special assessment. The maximum statutory penalty for conspiracy to commit mail fraud and wire fraud is 20 years imprisonment, $250,000 fine or twice the amount of gain or loss, whichever is greater, three years of supervised release, and a $100 special assessment. Restitution may also be ordered as to each of the three counts. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Timothy J. Lucey and Philip A. Guentert are the Assistant United States Attorneys who are prosecuting the case with the assistance of Laurie Worthen and Beth Margen. The prosecution is the result of an investigation by the U.S. Postal Inspection Service and the FBI, with substantial assistance from the Los Angeles Regional Office of the SEC as well as the U.S. Secret Service.
Please note, an Indictment contains only allegations and, as with all defendants, Alfred J. Villalobos must be presumed innocent unless and until proven guilty.
(Villalobos superseding indictment )
Pittsburgh-area Man Admits Selling Party Drugs at Music Festivals and ConcertsRead the Press Release
PITTSBURGH – William Krszal, a resident of Allegheny County, was convicted of conspiring to distribute a mixture of methamphetamine and 3,4-methylenedioxymethamphetamine, sometimes referred to as “molly”, United States Attorney David J. Hickton announced today.
Krszal, 23, pled guilty before United States District Judge David S. Cercone. Judge Cercone scheduled sentencing to occur on Dec. 18, 2014, at 11 a.m.
In support of the guilty plea, the Court was informed that Krszal agreed with his supplier to distribute the mixture of methamphetamine and molly in the Pittsburgh area, including at various concerts or music festivals.
The law provides for a maximum total sentence of up to 20 years in prison and a fine of up to $1,000,000. 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 Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Pennsylvania Attorney General’s Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Bureau of Police, the Allegheny County Sheriff’s Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.
Philadelphia Man Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 31-year-old Philadelphia man pleaded guilty today in Scranton before U.S. District Court Judge Malachy E. Mannion to participating in a conspiracy that distributed heroin during November 2013 to January 2014.
According to United States Attorney Peter J. Smith, the defendant, Luis Morales, admitted that he conspired with others, including Eudy Gonzalez, then an inmate at the Pennsylvania State Correctional Institution at SCI Waymart, to distribute and possess the heroin in Northeastern Pennsylvania.
Morales was indicted by a federal grand jury in March 2014, as a result of an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.
Morales faces a possible maximum sentence of 20 years in prison and a fine up to $1 million. Judge Mannion ordered a pre-sentence investigation to be completed prior to sentencing.
Two of Morales’ co-defendants, Linda Reyes and Eudy Gonzalez, previously pleaded guilty and are awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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.
North Dakota Man Sentenced for Abusive Sexual Contact of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Yates, North Dakota, man convicted of Abusive Sexual Contact of a Minor was sentenced on July 28, 2014, by U.S. District Judge Charles B. Kornmann.
Cecil White Bull, age 41, was sentenced to 20 years in custody, 10 years of supervised release, a $15,000 fine, and a $300 special assessment to the Federal Crime Victims Fund.
White Bull was indicted by a federal grand jury on July 17, 2013. He pled guilty on April 22, 2014.
The conviction stems from incidents which occurred between November 1, 2009, and October 31, 2011, when White Bull, while residing at his mother’s house in Bullhead, sexually abused his nieces and nephew, while he helped care for all three victims.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
White Bull was immediately turned over to the custody of the U.S. Marshals Service.
New Jersey Man Sentenced for Conspiracy to Commit Mail FraudRead the Press Release
Jackson, Miss. - James Lewis Johnson, 61, of New Jersey, was sentenced today by Senior U.S. District Judge William H. Barbour, Jr. to 86 months in federal prison followed by three years of supervised release for conspiracy to commit mail fraud, announced U.S. Attorney Gregory K. Davis and Postal Inspector in Charge Robert Wemyss. Johnson was also ordered to pay restitution in the amount of $107,926.43.
Johnson pled guilty on May 21, 2014 to his involvement in a Nigerian run fraudulent scheme involving Craigslist postings. The scheme involved the mailing and shipping of hundreds of USPS Express mail parcels containing counterfeit postage, USPS money orders and cashier checks. Mr. Johnson printed the counterfeit postage, money orders and checks, mailed them, received money from the victims and forwarded the money to the primary operators in Nigeria via Western Union. The investigation revealed over 590 wire transactions and over 100 mailings in furtherance of the scheme to defraud, with a total victim financial loss of more than $534,600.
"The Postal Service will continue to identify and pursue dishonest mailers who deliberately avoid proper payment of postage. When unscrupulous people use the mail to defraud, Postal Inspectors will not hesitate to ensure they are brought to justice," said Inspector in Charge Robert Wemyss. "Unfortunately, in these challenging economic times, the Postal Inspection Service has no shortage of fraud schemes to investigate."
This case was investigated by the United States Postal Inspection Service and the Meridian Police Department.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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Mission Man Sentenced for Misprision of A FelonyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Misprision of a Felony was sentenced on July 28, 2014, by U.S. District Judge Roberto A. Lange.
Tyler Red Eagle, age 22, was sentenced to 10 months in custody, 1 year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Red Eagle was indicted for First Degree Burglary, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury by a federal grand jury on March 11, 2014. He pled guilty to Misprision of a Felony on May 13, 2014.
The conviction stems from an incident that took place on July 2, 2013, when Red Eagle’s co-defendants broke into the victim’s home and struck the victim repeatedly with their hands and objects. Red Eagle was present when the assault occurred. After the assault, Red Eagle concealed the assault from tribal and federal law enforcement officers.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Marie H. Ruettgers and Tim Maher prosecuted the case.
Red Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on July 28, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Marlow Poor Thunder, age 19, was sentenced to 47 months in custody, 2 year of supervised release, $1,135.80 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Poor Thunder was indicted for First Degree Burglary, Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on March 11, 2014. He pled guilty to Assault Resulting in Serious Bodily Injury on May 12, 2014.
The conviction stems from an incident that took place on July 2, 2013, when Poor Thunder assaulted the victim while he was asleep, hitting him with a bat while others assaulted the victim with their fists and a cane. As a result of Poor Thunder’s actions, the victim suffered a large laceration to his scalp that required staples to repair.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Marie H. Ruettgers and Tim Maher prosecuted the case.
Poor Thunder was immediately turned over to the custody of the U.S. Marshals Service.
Miramar Resident Sentenced for Filing A False Tax ReturnRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that U.S. District Judge James I. Cohn sentenced Erica Jacovia Bryant, 33, of Miramar, to 27 months in prison, to be followed by three years of supervised release, and ordered her to pay $89,190.27 in restitution to the IRS. Bryant was convicted after a two day jury trial on charges of filing a false claim, in violation of Title 18, United States Code, Section 287.
According to the indictment and evidence introduced in court, Bryant filed a false 2011 tax return that fraudulently sought a $110,859.00 tax refund. Based upon this fraudulent return and the information contained therein, Bryant ultimately obtained a $100,653.22 tax refund from the IRS which was later utilized to purchase a 2013 Lincoln MKZ, which was later seized by the IRS for forfeiture.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being handled by Assistant U.S. Attorney Marc Anton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Milwaukee Woman Sentenced to 2 ½ Years in Prison for Filing False Federal Tax Returns and Food Stamp FraudRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that on July 31, 2014, Tiffiny Leanna Harden (age: 30) of Menomonee Falls was sentenced before Judge Rudolph T. Randa on charges of filing false claims against the United States, mail fraud, and food stamp fraud. Harden was sentenced to thirty months in federal prison and was given three years supervised release. Harden was also ordered to pay $120,525 in restitution, requiring Harden to pay $120,125 to the Internal Revenue Service and $400 to the U.S. Department of Agriculture, Supplemental Nutrition Assistance Program.
Harden pleaded guilty to the federal charges on April 11, 2014. Records filed in court indicate that
Harden fraudulently filed a total of at least 35 tax returns for the 2011 tax year seeking total refunds of at least $229,522. Of the $229,522 in refunds that was attempted to be received by Harden, she obtained $120,125 in tax refunds that were deposited into her bank’s accounts.Court documents indicate that Harden sought tax refunds by claiming false incomes, false education credits and/or claiming false dependents for the taxpayers. Several of the taxpayers told law enforcement officials that they did not know Harden and did not know how she got their information. Others stated that Harden had offered to help them fill out their returns and they provided her with their identifying information, but never heard back from her. Many of the victims indicated that Harden had offered to fill out their tax returns for them, but the victims never provided Harden with the information regarding the employer, educational status, or the dependents listed in the returns using their identities. At least two taxpayers did not know that they were claimed as dependents. Harden used the United States mail to receive and send false information to the IRS.
In addition, during the time she was receiving the tax refunds, she also committed food stamp fraud. In order to receive this federal benefit, she claimed in her Food Share application to be homeless during that period and failed to disclose the fact that she had received over $100,000 from the fraudulent tax return scheme during the months of February and March 2012.
This case was jointly investigated by the Internal Revenue Service Criminal Investigative, the United States Postal Inspection Service and the United States Department of Agriculture. The case was prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman.
Merrimack Man Sentenced on Child Pornography OffenseRead the Press Release
CONCORD, NEW HAMPSHIRE – Keith Burns, 41, of Merrimack, was sentenced in United States District Court for the District of New Hampshire to 15 years in prison after pleading guilty to one count of attempted receipt of child pornography, announced United States Attorney John P. Kacavas.
The investigation began in March of 2013 when investigators in Jackson County, Oregon, received information from the parents of a 13-year-old girl that a man was communicating with her online and pressuring her to take pornographic images of herself. The local authorities then contacted the FBI. A subsequent investigation led to the identification and arrest of Keith Burns of Merrimack. Burns was previously convicted of sexually assaulting a minor and is required by New Hampshire law to register with the state’s sex offender registry list.United States Attorney Kacavas said, “Identifying, finding, and prosecuting predators like the defendant has been, and will continue to be, among the highest priorities of my office.”
The charge was the result of an investigation by the Federal Bureau of Investigation, the Merrimack Police Department and the Jackson County, Oregon, Sherriff’s Department and the New Hampshire Internet Crimes Against Children Task Force. This case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
This case is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. 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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Marinette Woman Sentenced for Heroin CrimeRead the Press Release
United States Attorney James L. Santelle, of the Eastern District of Wisconsin, announced that yesterday, Andrea Paris (neé Addington) (age: 30) of Marinette, Wisconsin, was sentenced to 18 months in federal prison by Chief United States District Judge William C. Griesbach. The prison sentence is to be followed by 12 months of supervised release.
Paris had previously entered a guilty plea to a charge of using a communication facility (i.e., a telephone) to facilitate the distribution of heroin. According to the plea agreements and other documents filed with the court, Paris worked in concert with seven other co-defendants to facilitate the movement and delivery of heroin to the Marinette, Wisconsin, and Menominee, Michigan areas after obtaining the drug from a supplier in Chicago. Those records also indicate that Paris established initial contact with the supplier and introduced the others to the heroin source.
The court noted Paris’ manipulative nature, the devastating effect that heroin addiction has had in northeast Wisconsin, and her role involving others in the collective effort to bring large quantities of heroin to the Marinette/Menominee region.
The case was investigated by Special Agents from the Wisconsin Department of Justice, Department of Criminal Investigation, the U.S. Drug Enforcement Administration, the Marinette Police Department, Marinette Sheriff’s Office, Menominee (Michigan) Police Department, Menominee (Michigan) Sheriff’s Office, Wisconsin HIDTA Task Force, Chicago HIDTA Task Force, Chicago Police Department, Northeast Wisconsin Tri-County Drug Enforcement Group, and the Manitowoc County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
Manhattan U.S. Attorney Announces Charges Against Three Individuals in Connection with $18.5 Million Mortgage Modification SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Christy Romero, Special Inspector General of the Troubled Asset Relief Program (“SIGTARP”), announced today the unsealing of charges against PED ABGHARI, a/k/a “Ted Allen,” DIONYSIUS FIUMANO, a/k/a “D,” and JUSTIN ROMANO for engaging in a mortgage modification scheme that defrauded over 8,000 homeowners in all 50 states out of over $18.5 million, in what is believed to be the largest mortgage modification scheme ever charged. Each defendant is charged with wire fraud and conspiracy to commit wire fraud. ABGHARI and FIUMANO were arrested this morning in Irvine, California, and are expected to be presented later today in federal court in Los Angeles before United States Magistrate Judge Paul L. Abrams. ROMANO was arrested this morning in Blue Point, New York and is expected to be presented later today in Manhattan federal court before United States Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants preyed on thousands of homeowners struggling to make their mortgage payments and meet their financial obligations. This Office has zero tolerance for those who target and exploit financially vulnerable people, and we will continue to work to hold these and like-minded defendants accountable.”
The Special Inspector General for TARP, Christy Romero, said “Earlier today, SIGTARP special agents arrested Abghari, Fiumano, and Romano after our investigation with the U.S. Attorney's Office uncovered an alleged massive, nationwide mortgage modification fraud scheme that purportedly targeted homeowners behind on their mortgage payments who simply wanted help from TARP's housing program, HAMP. The defendants are alleged to have stolen more than $18.5 million from more than 8,000 struggling homeowners by making empty promises that the homeowners would be preapproved for lower mortgage payments through HAMP. This was all a purported ruse used to trick vulnerable homeowners into paying the defendants thousands of dollars in up-front fees for which zero meaningful work was ever actually done. SIGTARP has aggressively pursued these allegations, working closely with Preet Bharara's office, to protect homeowners in New York and across our nation from becoming victims of this crime and to bring perpetrators to justice.”
According to the allegations contained in the Indictment:
The Home Affordable Modification Program
As a result of the financial crisis and collapse of the housing bubble in 2008, Congress enacted the Home Affordable Modification Program (“HAMP”), which was to be funded through the Troubled Asset Relief Program (“TARP”). HAMP permits qualified homeowners to obtain mortgage relief. Specifically, HAMP seeks to prevent foreclosure by modifying troubled loans to achieve monthly payments the homeowner can afford.
Pursuant to HAMP, any homeowner may apply to his or her mortgage provider by completing a short form and submitting it, along with supporting paperwork, to the homeowner’s mortgage provider. HAMP further sets guidelines for lenders to follow in determining eligibility, such as guidelines based on the homeowner’s income and the principal balance remaining on the mortgage. Pursuant to HAMP, only a homeowner’s lender may determine the homeowner’s eligibility for a modification and, if appropriate, the modified rate and monthly payment for which the homeowner is eligible.
HAMP applications are readily available online as well as in many local banks. Submitting an application is, by law, free of charge to the homeowner. Virtually all mortgage providers are required to participate in the HAMP program and accept HAMP applications.
The Defendants’ Mortgage Modification Scheme
PED ABGHARI was a co-president and owner of an Irvine, California company that offered purported mortgage modification services (the “Telemarketing Firm”). DIONYSIUS FIUMANO was a senior manager of the Telemarketing Firm, and was directly responsible for training and overseeing the Firm’s telemarketers and salespeople (the “Sales Staff”). JUSTIN ROMANO held himself out as the president of two purported law firms (the “Purported Law Firms”), based in in Holbrook, New York, and Sayville, New York, respectively, which offered purported mortgage modification services in conjunction with the Telemarketing Firm.
From at least January 2011 through May 2014, through the Telemarketing Firm and the Purported Law Firms, ABGHARI, FIUMANO, and ROMANO perpetrated a scheme to defraud homeowners in dire financial straits who were seeking relief through HAMP and other mortgage relief programs. Through a series of false and fraudulent representations, the defendants duped thousands of homeowners into paying thousands of dollars each in up-front fees in exchange for little or no service from the defendants or their companies. In total, through their scheme, the defendants obtained over $18.5 million from more than 8,000 victim-homeowners throughout the United States.
As alleged, to perpetrate the scheme, through the Telemarketing Firm, ABGHARI and FIUMANO purchased thousands of “leads,” consisting of the name, address, and other contact information of homeowners who had fallen behind in making mortgage payments on their home. Thereafter, ABGHARI and FIUMANO caused the Telemarketing Firm to send, by e-mail, false and fraudulent solicitation letters to the homeowners they identified through the “leads,” misleading these homeowners into believing that their mortgages were already under review for a HAMP modification and that new, modified rates had already been contemplated and approved by the homeowners’ lenders.
At the direction of ABGHARI, FIUMANO, and ROMANO, the Sales Staff called homeowners and/or answered telephone calls from homeowners who received the Telemarketing Firm’s fraudulent solicitations. During these calls, in an effort to convince the homeowners to pay up-front fees, the defendants, through the Sales Staff, regularly caused various false and fraudulent representations to be made to homeowners, including that (a) the homeowners were retaining a “law firm” and an “attorney” who would complete the HAMP application and negotiate aggressively on the homeowners’ behalf with banks to modify the terms of the homeowners’ mortgages; (b) the defendants would “pre-approve” the homeowners for a guaranteed modification through HAMP; (c) the defendants employed underwriters who would calculate and guarantee the homeowners a new, modified rate and monthly mortgage payment; and (d) the defendants’ mortgage modification services were free, and the up-front fees paid by the homeowners would be paid directly to the homeowners’ lenders.
In truth and in fact, and as ABGHARI, FIUMANO, and ROMANO well knew, all of these representations were false and fraudulent. As the defendants knew, neither they nor any of their employees could pre-approve the homeowners or guarantee any of the homeowners a mortgage modification or new monthly payment. Furthermore, not only were the defendants’ “services” not free, the defendants kept all of the fees paid by the homeowners, and paid none of it to the homeowners’ lenders. In addition, as the defendants knew, neither the Telemarketing Firm nor the Purported Law Firms provided the homeowners with an attorney or any sort of legal assistance, and they frequently did little more than complete the Government-sponsored HAMP application which, as noted above, the homeowners could have obtained and completed on their own, free of charge. In some cases, as the volume of homeowners paying thousands of dollars to “retain” the defendants’ services swelled, the defendants and their employees did nothing at all in exchange for the money they received from homeowners.
As customer complaints about the Telemarketing Firm and Purported Law Firms mounted, ABGHARI, FIUMANO, and ROMANO sought to cover up their fraudulent scheme by changing the names of the Telemarketing Firm and Purported Law Firms. For example, as ABGHARI emailed employees of one of the Purported Law Firms, “[t]he main reason we’re being slammed . . . is because we waited too long to change names. I normally change names every 9 months to keep things cool and have all agencies off our backs. Within the next month or so you’ll see a major slow down on complaints because we no longer do business under [the name of the Purported Law Firm] or [the name of the Telemarketing Firm].”
ABGHARI, 37, of Irvine, California, FIUMANO, 43, of Irvine, California, and ROMANO, 40, of Blue Point, New York are each charged with one count of conspiring to commit wire fraud, and one count of wire fraud, each of which carries a maximum term of 20 years in prison.
Mr. Bharara praised the investigative work of the Office of the Special Inspector General for the Troubled Asset Relief Program.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Edward B. Diskant and Joshua A. Naftalis are in charge of the prosecution.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Ped Abghari et al. Indictment
Man on House Arrest Pleads Guilty to Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH – Kailen Young, a resident of Allegheny County, was convicted of conspiring to distribute heroin, United States Attorney David J. Hickton announced today.
Young, 29, pled guilty before United States District Judge David S. Cercone. Judge Cercone scheduled sentencing to occur on Dec. 18, 2014, at 10 a.m.
In support of the guilty plea, the Court was informed that Young distributed heroin during August and September 2013 while he was on electronically monitored house arrest. Young, in fact, began distributing heroin within days of being released to house arrest in August 2013.
The law provides for a maximum total sentence of up to 30 years in prison and a fine of up to $2,000,000. 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 Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Pennsylvania Attorney General’s Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Bureau of Police, the Allegheny County Sheriff’s Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.
Louisville Felon Pleads Guilty to Robbing Multiple Jefferson County Restaurants – One at GunpointRead the Press Release
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky, announced the guilty plea of a Louisville felon, this week, in United States District Court, to charges of robbing three restaurants located in Jefferson County, Kentucky, and in one instance, to brandishing a firearm.
Kenneth Dion Flintroy, Jr., age 24, pleaded guilty before District Judge Joseph H. McKinley Jr., to four counts of a seven count indictment, on Monday, August 4, 2014, in Louisville. Flintroy admitted to robbing the McDonald’s located at 7426 3rd Street Road on April 16, 2013. Further, Flintroy admitted to holding up the Papa John’s Store located at 6902 Southside Drive on April 16, 2013, and the McDonald’s located at 8600 Dixie Highway on May 2, 2013. In the case of the robbery at 8600 Dixie Highway, Flintroy admitted to brandishing a firearm.
According to court records, on May 23, 2011, Flintroy was convicted of three counts of trafficking in a controlled substance within 1000 yards of a school, and three counts of possession of drug paraphernalia in Callaway County Circuit Court located in Murray, Kentucky.
If he had been convicted of all seven counts at trial, Flintroy faced no less than 57 years in prison and no more than life, a fine of up to $1,750,000 and up to and including a life term of supervised release.
This federal prosecution stems from “Project Recoil,” the ongoing partnership of multiple law enforcement agencies, developed by U.S. Attorney Hale, to maximize penalties for the most violent repeat offenders, and to reduce violent crime in our community.
This case is being prosecuted by Assistant United States Attorneys Tom Dyke and Amanda Gregory and is being investigated by the Louisville Metro Police Department.
Logan Man Admits Receiving Kickbacks at Arch MineRead the Press Release
More than $1.8 million dollars in kickbacks paid by vendorsCharleston, W. Va. – A 45-year old Mingo County man faces up to 25 years in federal prison after pleading guilty today to extortion and tax evasion, U. S. Attorney Booth Goodwin announced. Former Mountain Laurel Mining Complex General Manager David E. Runyon, of Delbarton, West Virginia, entered a guilty plea in federal court in Charleston.
Runyon admitted that as general manager of the mining complex, he participated in and benefitted from a number of extortion schemes in which he and other Arch Coal employees received cash kickbacks from complicit Mountain Laurel vendors in exchange for continuing to hire those vendors. The cash kickbacks to Arch Coal employees totaled more than $1.8 million dollars between 2006 and 2013.
“This kind of pay-to-play scheme hurts honest vendors in the coal industry—business people who refuse to pay bribes as a way to get customers,” said U.S. Attorney Booth Goodwin. “The corrupt way that this defendant did business should be a thing of the past. It’s bad for the economy and, ultimately, bad for consumers.”
Runyon admitted receiving kickbacks from numerous vendors who did work for Mountain Laurel. His schemes included:
- The Rebuild Kickback Scheme, in which Runyon and others received kickbacks from companies performing rebuild jobs at Mountain Laurel. These companies included Tri-State Mine Service, Inc., owned by Scott Ellis and later joined by Stephen Herndon after he left employment at Arch Coal, and Carter Sales and Service and Apex Mining Construction and Repair, Inc., owned by Donald Carter. Ellis, Carter, and later Herndon understood that they would be excluded from being vendors if they stopped paying kickbacks.
- The Miner/Bolter Repair Kickback Scheme, where Runyon and others received kickbacks from Ronald Barnette, who owned Mining Repair Specialist, Inc. (“MRS”), which performed rebuild and repair work on mining equipment at Mountain Laurel. Barnette understood if he did not pay the kickbacks, MRS would no longer be permitted to perform rebuild work at Mountain Laurel.
- The Construction Work Kickback Scheme, where Runyon received kickbacks from Alvis Porter, who operated Quality Oil, Inc., which was doing business at Mountain Laurel as Southern Construction of Logan. Porter’s company performed a variety of construction services at Mountain Laurel, and Porter paid the kickbacks to keep that work.
- The Contract Labor Kickback Scheme, where Runyon received kickbacks from David Herndon. David Herndon owned and operated MAC Mine Service, Inc., which provided contract labor at Mountain Laurel. David Herndon paid the kickbacks because he believed that he would lose the business at Mountain Laurel if the kickbacks were not paid.
Runyon admitted that he received approximately $1 million as a result of his participation in these kickback schemes. He also admitted that he owed $426,122 in federal taxes to the Internal Revenue Service (IRS).
Runyon is scheduled to be sentenced on November 19, 2014, in Charleston.
Today’s charge stems from an investigation being conducted by the Federal Bureau of Investigation, IRS Criminal Investigation, United States Postal Inspection Service, and the West Virginia State Police. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution.
Click here to hear an audio clip from U.S. Attorney Goodwin.
Lafayette Woman Sentenced to 29 Months in Prison for to Stealing More Than $500,000 from EmployerRead the Press Release
LAFAYETTE, La. –A Lafayette woman was sentenced to 29 months in prison and five years of supervised release for defrauding more than half a million dollars from Waste Auditors Inc., the Lafayette company where she worked, U.S. Attorney Stephanie A. Finley announced today.
Bunnie Morris, 61, of Lafayette, was also ordered by U.S. District Judge Elizabeth E. Foote to pay $337,049 of restitution. According to evidence presented at the February 20, 2014 guilty plea, Morris was employed as a financial accountant/bookkeeper for Waste Auditors Inc. from 2001 to 2009. During that time, she forged signatures of corporate officials on numerous payroll, bonus, and expense account corporate checks processed through two banks totaling $579,050. Not only did she forge checks and expense account information, she orchestrated unauthorized payments to herself in the form of pay raises and bonuses. In order to disguise her actions, she listed in the company’s financial records that she had voided all fraudulent checks that she had cashed or deposited, when in fact she negotiated and received benefits from those checks. Morris was not an authorized signatory on any corporate checking account and was required to obtain signatures from supervisors before executing a transaction.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.Kevin Scott Thibault Pleads Guilty to Forgery of Signature of A U.S. District Court JudgeRead the Press Release
KNOXVILLE, Tenn. – On Aug. 6, Kevin Scott Thibault, 49, Maryville, Tenn., pleaded guilty to a grand jury indictment charging him with two counts of forgery of the signatures of a district court judge and an officer of the U.S. District Court.
Sentencing is set for 1:30 p.m., on Dec. 1, 2014, in U.S. District Court, Knoxville, before the Honorable Pamela L. Reeves, U.S. District Court Judge. Thibault faces up to five years in prison, a fine of up to $250,000, up to three year of supervised release and a $100 special assessment.
Additionally, Thibault has agreed to plead guilty to a one-count information charging him with use of the mail for the purpose of executing a scheme to defraud. This offense carries a punishment of up to 20 years in prison, a fine of up to $250,000, three years of supervised release, and a $100 special assessment.
The plea agreement on file with the U.S. District Court in Knoxville describes in detail Thibault’s forgery scheme, which began when he falsely represented himself as an attorney and agreed to assist two individuals with the adoption of foster children in their custody. In May 2012, Thibault presented the individuals with fake adoption papers that he claimed had been filed in U.S. District Court, signed by U.S. District Judge Thomas A. Varlan, and certified by U.S. District Court Officer Kathy Keeton. An investigation revealed that neither Judge Varlan nor Keeton signed the documents and the signatures were forged.
In October 2012, Thibault demanded that the individuals sign a power of attorney permitting him to represent their interest in the alleged adoption proceedings. However, the power of attorney actually allowed him to conduct certain financial transactions on their behalf. According to the plea agreement, through the course of this scheme, Thibault obtained at least $400,000 from the victims to further his scheme to defraud and obtain money.
These charges are the result of an investigation by the Blount County Sheriff’s Office and Federal Bureau of Investigation. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
Kansas City Area Business Owner Indicted on Federal Bank Fraud ChargesRead the Press Release
KANSAS CITY, KAN. A Kansas City area business owner has been indicted on federal bank fraud charges, U.S. Attorney Barry Grissom said today.
Brenda Wood, 45, Leavenworth, Kan., was indicted Wednesday on five counts of bank fraud, one count of theft from an employee benefit program, and four counts of willful violations of the Employee Retirement Income Security Act.
The indictment alleges the crimes took place while Wood owned several businesses including one in Kansas City, Mo. -- Professional Cleaning and Innovative Building Services, Inc. (PCI) -- and three in Bonner Springs, Kan. -- Action Real Estate Services, LLC; G&W Investments, LLC, and Riverview Crossings, LLC.
The indictment alleges Wood obtained loans for herself and her companies through Farmers Bank in Overland Park, Kan., by making false representations and submitting falsified documents to the bank. Among the allegations in the indictment are these:
- Wood obtained a loan on behalf of Riverview Crossings to purchase property in Bonner Springs in part by forging the signature of a second mortgage holder releasing the deed.
- Wood submitted falsified invoices totaling more than $100,000 to support fraudulent draws on the Riverview Crossings loan.
- Wood obtained a loan on behalf of PCI to buy property in Basehor, Kan., in which she fraudulently inflated the purchase price to make it appear the loan met the bank’s loan-to-value ratio requirements.
- Wood obtained a $350,000 line of credit in part by fraudulently representing to the lender that her company, PCI, was awarded a contract to provide cleaning services at an Internal Revenue Service building in Kansas City, MO. In fact, her company was not even a finalist for the contract.
- Wood diverted more than $200,000 from an escrow account for PCI to her personal account.
- Wood set up a 401(k) plan for PCI and embezzled more than $30,000 from the plan.
- Wood failed to file annual financial reports for the PCI 401(k) plan.
Farmer’s Bank received $12 million from the U.S. Treasury’s Troubled Asset Relief Program. In November 2012, the bank paid the U.S. Treasury approximately $11.4 million to redeem the funding, resulting in a shortfall of more than $500,000.
If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on each of the bank fraud charges, a maximum penalty of five years and a fine up to $250,000 on the charge of theft from an employee benefit program, and a maximum penalty of 10 years and a fine up to $250,000 on each count of violating ERISA. The Department of Labor, Office of Inspector General, the Special Investigator General for the Troubled Asset Relief Program, the Department of Labor Employee Benefits Security Administration and the FBI investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Justice Department Settles Citizenship Status Discrimination Claim Against Travel Management CompanyRead the Press Release
The Justice Department reached an agreement today with Travel Management Company, a private airplane charter company based in Elkhart, Indiana, resolving claims that the company engaged in citizenship status discrimination in violation of the Immigration and Nationality Act (INA).
Under the INA, employers may not discriminate in hiring on the basis of citizenship status unless required by law, regulation, executive order or government contract. However, the department’s investigation concluded that Travel Management Company had a U.S. citizenship requirement in its job postings for commercial pilot positions, despite the fact that no law, regulation, executive order or government contract authorized the company to restrict employment in this manner. The investigation further established that non-U.S. citizens who applied for the position were eliminated from consideration on the basis of their citizenship status.
Under the settlement agreement, Travel Management Company will pay $22,000 in civil penalties to the United States. The company further agreed to revise its hiring and recruiting procedures, train its human resources personnel to ensure compliance with the INA, and be subject to reporting requirements for a period of two years.
“Employers must give all eligible candidates an equal opportunity to compete for employment and cannot create unlawful discriminatory barriers to work,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The department is committed to ensuring that employers do not unlawfully discriminate against U.S. citizens and other work-authorized individuals based on their citizenship status.”
The Civil Rights Division Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee, unfair documentary practices, and retaliation or intimidation.
For more information about protections against employment discrimination under immigration laws or how to sign up for a free webinar, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); or visit OSC’s website at www.justice.gov/crt/about/osc .
Applicants or employees who believe they were subjected to: different documentary requirements or discrimination based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status, or national origin in hiring, firing or recruitment or referral should contact OSC’s worker hotline for assistance.
Justice Department Reaches Settlement with Fifth Third Mortgage Company to Resolve Allegations of Discrimination Against Recipients of Disability IncomeRead the Press Release
The Department of Justice filed a settlement today with Fifth Third Mortgage Company to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of disability and receipt of public assistance in violation of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA). Under the settlement, Fifth Third has agreed to maintain revised policies, conduct employee training and pay over $1.5 million to compensate victims.
This lawsuit arose as a result of a complaint filed by loan applicants with the U.S. Department of Housing and Urban Development (HUD). The loan applicants elected to have the case heard in federal court and the Secretary of HUD referred the case to the Department of Justice.
The settlement, which is subject to court approval, was filed today in Macon, Georgia with the U.S. District Court for the Middle District of Georgia where one of the affected borrowers is located. The terms of the settlement require Fifth Third to establish a settlement fund of $1,522,000 to compensate eligible mortgage loan applicants who were asked to provide a letter from their doctor to document the income they received from Social Security Disability Insurance. Under the settlement, Fifth Third will also conduct training of its underwriters and loan officers and will monitor loan applications to insure that applicants with disabilities are not asked for a letter from a doctor.
A second defendant in the case, mortgage broker Cranbrook Mortgage Corporation, has revised its underwriting practices, will train its loan officers and will pay $2,000 to compensate the loan applicants who filed the HUD complaint. The Department of Justice does not allege that Cranbrook Mortgage Corporation discriminated against other loan applicants.
“Today’s settlement continues the shift away from an industry practice that violates the Fair Housing Act and the Equal Credit Opportunity Act,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.
“A person’s medical information is often some of the most personal information in and about their life,” said U.S. Attorney Michael J. Moore for the Middle District of Georgia. “My office is proud to have participated with our fellow attorneys from the Department of Justice in reaching a resolution of this matter that protects those with disabilities from having this unnecessary, inappropriate and illegal intrusion into the most private of their affairs.”
“Today’s announcement holds lending institutions accountable for their actions, and is a reminder that every American has the right to apply for a home loan and live in the community of their choice,” said HUD Assistant Secretary for Fair Housing and Equal Opportunity Gustavo Velazquez.
The settlement comes after an investigation by the Department of Justice. Fifth Third cooperated fully with the department’s investigation into its lending practices and agreed to settle this matter without contested litigation. The lawsuit was developed and filed by the Fair Lending Unit of the Housing and Civil Enforcement Section in the department’s Civil Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 35 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for more than $1 billion in monetary relief for impacted communities and individual borrowers.
The Civil Rights Division and HUD are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov .
A copy of the complaint, as well as additional information about fair lending enforcement by the department can be obtained from the department’s website at www.justice.gov/fairhousing .
Jury Convicts Houston Man on Firearm ChargesRead the Press Release
HOUSTON – Ronald Ray Norman, 32 of Houston, has been found guilty of being a felon in possession a firearm and ammunition, announced United States Attorney Kenneth Magidson. The federal jury sitting in Houston convicted Norman following a three-day trial and approximately two hours of deliberation.
During trial, the jury heard that a warrant had been out for Norman’s arrest when law enforcement received information about him and the vehicle he was driving. Testimony further revealed Norman had been regularly using rental vehicles in order to shield himself from law enforcement. Officers located Norman and the vehicle he was driving on Interstate 45 South on Feb. 12, 2014.
Officers attempted a traffic stop, but Norman jumped out and fled on foot, while the passenger drove away in the vehicle. Norman was chased on foot across all lanes of the highway, over retaining walls and along both feeder roads. He briefly stumbled and officers approached. Testimony revealed Norman then reached into his pocket, removed a silver and black .38 caliber revolver and threw it on the ground.
He was soon apprehended and found in possession of five rounds of .38 caliber ammunition.
Norman, a convicted felon, is prohibited from possession firearms or ammunition.
His defense contended that there were no other witnesses who saw him throw the weapon to the ground. His wife also testified and claimed she had never seen him with a gun or ammunition. The jury was not convinced and found him guilty on both counts as charged.
U.S. District Judge David Hittner, who presided over the trial, has set sentencing for Oct. 31, 2014. At that time, he faces a minimum of 15 years and up to life in federal prison. Previously in custody, he will remain detained pending that hearing.
The case was investigated by the Houston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Jennie Basile and Joe Porto are prosecuting.
Joplin Man Charged with Attempting to Entice a Minor for SexRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was charged in federal court today with attempting to entice a minor for illicit sexual activity.
Erik Leroy Clark, 35, of Joplin, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Mo. Clark remains in federal custody pending a detention hearing on Tuesday, Aug. 12, 2014.
According to an affidavit filed in support of today’s criminal complaint, a Jasper County, Mo., Sheriff’s Department detective assumed an undercover identity and posted an advertisement on an online social networking Web site on July 14, 2014. The ad was titled “Looking for someone into incest/taboo things –w4m-40.” The ad included a narrative, which read: “Looking for someone who is practicing incest or is interested in incest. Mother daughter. No spammers put incest in subject line so I know you are serious. Disease free.”
Clark allegedly responded to the ad on July 20, 2014. According to the affidavit, the undercover detective told Clark that the ad was for someone to teach her 10-year-old daughter about sex. Very quickly, the affidavit says, Clark started suggesting a meeting and said he was willing to help, but that the 10-year old girl’s mother needed to be present.
In subsequent emails, according to the affidavit, Clark offered to engage in various sexual activities with the 10-year-old girl and suggested meetings on several occasions. The undercover detective repeatedly told Clark no to each meeting request, the affidavit says, but finally agreed to meet Clark at a park located in Joplin.
On Wednesday, Aug. 6, 2014, law enforcement officers identified Clark as he drove through the park, using a photo he had e-mailed to the undercover detective. Officers stopped Clark and arrested him. Upon initial contact, Clark immediately stated, “I knew it, I knew it, I knew I was going to get in trouble.” Officers searched his car and found a “Hello Kitty” ball, Durex tropical-flavored condoms and a bottle of Equate warming liquid personal lubricant.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Jasper County, Mo., Sheriff’s Department and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Howes Man Sentenced for Unlawful Taking of A Bald EagleRead the Press Release
United States Attorney Brendan V. Johnson announced that a Howes, South Dakota, man charged with Unlawful Taking of a Bald Eagle pled guilty to the charge and was sentenced on July 31, 2014, by U.S. Magistrate Veronica L. Duffy.
Cody M. Weyer, age 42, was sentenced to 1 year probation, a $500 fine, $10,000 in restitution, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on January 21, 2014, when a South Dakota Game Fish and Parks officer responded to a complaint of dead deer in a particular area of Meade County. While searching for the dead deer, the officer found a dead mature bald eagle in a bull pasture leased by Weyer. During the course of the investigation Weyer was interviewed and admitted to killing the eagle.
The investigation was conducted by the U.S. Fish and Wildlife Service. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Hartford Man Sentenced to 7 Years in Prison for Role in Armed RobberyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ELLIS THOMAS, also known as “L” and “Big Homey,” 30, of Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 84 months of imprisonment, followed by three years of supervised release, for his role in an armed robbery scheme.
According to court documents and statements made in court, on November 18, 2008, two individuals were lured to a house on Case Street in Hartford for the purpose of buying stolen jewelry. When one of the individuals entered the residence, he immediately had a gun pointed in his face, was thrown to the floor, had his head covered and his hands bound. The second individual, who had been waiting in the car, subsequently entered the residence and was also thrown to the floor, blindfolded, and had his hands bound. Shortly thereafter, the second victim was removed from the house and placed in a vehicle parked at the residence by his kidnappers. While in the vehicle, the kidnappers stole the victim’s cell phone, earrings and a ring.
The kidnappers forced the first victim to set up his friend, a known cocaine trafficker, in order to rob him. The victim then arranged to meet the intended third victim at a location in East Hartford. The first victim was ordered by his kidnappers to drive his rented vehicle to the location in East Hartford, and was instructed to enter his friend’s vehicle and remove the keys from the ignition so that the kidnappers could kidnap the third victim. After meeting the third victim and entering his vehicle, the first victim told the third victim to drive off as they were about to be robbed. The third victim drove away to a safe location where the first victim called police.
The kidnappers stole from the first victim jewelry, money, his rental vehicle and several televisions that were in the back of the car. The car was later recovered by police.
The second victim also escaped from the vehicle in which he was being held. He was encountered by police officers on Case Street after the Hartford Police Department received the 911 call.
The Case Street house was THOMAS’ mother’s residence. The investigation revealed that THOMAS used the first victim’s relationship with THOMAS’ mother to lure him to the house to rob him.
THOMAS has been detained since his arrest on November 7, 2012. On May 29, 2014, he pleaded guilty to one count of attempt to interfere with commerce by robbery.
THOMAS’ criminal history includes convictions relating to felony assault, unlawful possession and discharge of firearms, burglary, larceny, escape, and fleeing from police.
This matter was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorneys Brian P. Leaming and H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Hamden Man Sentenced to 63 Months in Federal Prison for Trafficking CocaineRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DANIEL L. MILLS, also known as “Boone,” 35, of Hamden, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 63 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, on November 28, 2011, a Connecticut State Police trooper traveling on I-95 South attempted to stop a vehicle MILLS was driving for a motor vehicle violation. MILLS accelerated at a high rate of speed and exited the highway at Exit 33 in Stratford. MILLS then pulled into a service station and ran from his car. Stratford Police officers later found MILLS crawling in the marsh behind Savin Rock on Ferry Boulevard. A Stratford Police canine unit also located a black backpack containing approximately three kilograms of cocaine that MILLS had discarded during the pursuit.
MILLS has been detained since his arrest on November 28, 2011. On December 10, 2013, he pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine.
This matter was investigated by the Connecticut State Police, the Stratford Police Department and the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force. The case was prosecuted by Assistant U.S. Attorney H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Gunman in Largo Pizza Restaurant Robbery Exiled to 11 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Keith Dana Steedley, Jr., age 29, of Germantown, Maryland, today to 11 years in prison followed by five years of supervised release for conspiring to rob a business and brandishing a firearm during a crime of violence, in connection with the May 22, 2013 armed robbery of a pizza restaurant.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to Steedley’s plea agreement, he conspired with another individual to rob a pizza restaurant in Largo, Maryland. Steedley went into the restaurant brandishing a shotgun, while his accomplice stayed by the front door. Steedley pointed the shotgun at several employees and demanded money. Steedley took five dollars from a store employee and took the cash register money drawer, which contained $90. Steedley and his accomplice fled in a vehicle. Witnesses called 911 and described the getaway vehicle.
While responding to the 911 calls, a Prince George’s County Police officer saw a vehicle matching the description of the getaway car a few blocks from the restaurant. The officer followed the vehicle turn onto a dead end street, and saw Steedley bail out of the passenger side and run into a wooded area. A K-9 search was conducted and Steedley was found hiding in the woods. A search of the area recovered 48 one dollar bills. Victims brought to the scene identified Steedley as the person who robbed them. The shotgun used in the robbery was recovered from the vehicle, along with a starter’s pistol, a money drawer from a cash register, and cash and receipts from the pizza restaurant.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.
Gulfport Man Pleads Guilty to Misprision of A FelonyRead the Press Release
Hattiesburg, Miss - Joseph C. Ziegler, Jr., 67, of Gulfport, pled guilty today in U.S. District Court to misprision of a felony, announced U.S. Attorney Gregory K. Davis and Acting FBI Special Agent in Charge Johnnie Sharp.
Ziegler admitted helping conceal the crime of mail fraud which involved diverting funds intended for the State of Mississippi into a private bank account controlled by William Walker, former Executive Director of the Mississippi Department of Marine Resources.
Ziegler will be sentenced on November 10, 2014 by U.S. District Judge Keith Starrett in Hattiesburg. The maximum penalty for misprision of a felony is 3 years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation with assistance from the Mississippi State Auditor’s Office. Criminal Division Chief John Dowdy, Assistant U.S. Attorney Jerry Rushing and Assistant U.S. Attorney Jay Golden are prosecuting the case.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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Grand Jury Charges Conspiracy, Perjury, False Statements in Alleged Kidnapping HoaxRead the Press Release
Springfield, Ill. – The federal grand jury in Springfield, Ill., has indicted the woman allegedly kidnapped from a Champaign, Ill., mall on June 11, 2014, and the two men who appeared to kidnap her. The indictment, returned late yesterday, charges Monica Adriana Zacatlan Ramirez, 19, of Urbana, Ill.; Eduardo Guerrero Cortez, 25, of Texas; and Jarbey Emerson Reyes Villalobos, 18, of Champaign, Ill., with conspiring to provide law enforcement with false statements to conceal that the reported kidnapping was, in fact, a hoax. Ramirez is also charged with one count of making false statements to law enforcement and two counts of perjury for making false statements before a federal grand jury.
The charges are the result of investigation by the Champaign Police Department; the Federal Bureau of Investigation, Springfield and Houston Divisions; the Champaign County State’s Attorney’s Office; and, U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson.
“Our justice system expects the truth,” said U.S. Attorney Jim Lewis. “When someone willfully lies to police, then willfully lies again under oath to a federal grand jury about a potential kidnapping, those lies damage the justice system, those lies harm law enforcement that is ready to help, and those lies harm other victims who rely on the police.”
Sean Cox, Special Agent in Charge, Springfield FBI stated, “on behalf of the FBI, the seamless cooperation and coordination of law enforcement agencies in Illinois and Texas led to the timely and safe recovery of the alleged victim and apprehension of the subject in this case. We take every threat to the safety of the public seriously, however, we do not have limitless resources, and diverting the resources from both the Champaign area, and our partners in Texas puts the public at risk in the event that an actual emergency did take place.”
"Ms. Ramirez allegedly orchestrated a hoax that selfishly squandered numerous investigative hours and law enforcement manpower,” said Gary Hartwig, special agent in charge for HSI Chicago. "As this indictment demonstrates, those who brazenly lie to law enforcement and waste precious police resources will be held accountable for their crimes.”
“The Champaign Police Department expended significant time and expense in appropriately responding to this false kidnapping report,” states Champaign Police Chief Anthony Cobb. “The effort spent on this investigation kept several of our detectives busy for many days and made it more difficult for us to investigate crime reports filed by legitimate victims.”
Count one of the indictment alleges that Ramirez, Cortez and Villalobos conspired from June 11 through July 16, 2014, to provide law enforcement with false statements regarding the nature of Ramirez’s kidnapping from Market Place Mall in Champaign, specifically that there was no force, threat or coercion involved in the interstate transportation of Ramirez; she voluntarily consented, agreed, and participated in the planning.
According to the indictment, Ramirez and Cortez were involved in a dating relationship during late 2013 and early 2014. Ramirez and her family moved from Texas to Illinois in late May or early June 2014. Ramirez’s family did not approve of Cortez, and Ramirez began a relationship with another individual, during or after her relationship with Cortez.In June 2014, Ramirez and Cortez allegedly agreed to design a scheme whereby Cortez would kidnap Ramirez so that her willingness to be with him would be concealed. To advance the scheme, on June 11, the day of the alleged kidnapping, Ramirez appeared in circuit court in Champaign to petition the court for an emergency order of protection against Cortez. In support of her petition, Ramirez represented that she was fearful of Cortez after she witnessed a violent incident between Cortez and her boyfriend in a laundromat days earlier.
After the court granted the order of protection, Ramirez allegedly spoke to Cortez and told him to pick her up from the Market Place Mall and make it appear that Cortez took her by force. Cortez agreed and allegedly recruited Villalobos and others to aid in the hoax kidnapping. Cortez and Villalobos, armed with a knife, and another individual, traveled to the mall, collected Ramirez and put her into their vehicle. Villalobos threatened Ramirez’s companion and the defendants fled the area. From June 11 through June 14, Ramirez, Cortez and Villalobos traveled from Illinois to Texas.
In addition to the conspiracy, Ramirez is charged with making false statements to special agents of the FBI about her consent and voluntary participation in the hoax kidnapping, and with two counts of lying to a federal grand jury in Springfield. The indictment alleges that on July 2, while under oath before the grand jury, Ramirez lied about an incident she said she witnessed at a laundromat on June 7 that was the basis, in part, for an emergency order of protection that she received on June 11. The indictment alleges that Ramirez was not present on the day of the altercation, and did not witness any of the events. Again, while under oath, on July 2, before the grand jury, Ramirez allegedly lied about her contact with Cortez hours prior to the kidnapping. When asked her explanation for four calls to Cortez from her phone on the day of the kidnapping, Ramirez said she did not call Cortez, when in fact, she made several calls to Cortez.
The three defendants were previously charged by criminal complaint and arrested on July 25. Each remains detained in the custody of the U.S. Marshals Service following their initial appearance in court on July 25, before U.S. Magistrate Judge David G. Bernthal. The U.S. Clerk of the Court will schedule a future date for the defendants to appear for arraignment in federal court in Urbana.If convicted, each of the offenses carries a statutory penalty of up to five years in prison and fines of up to $250,000.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Fresno Men Indicted for Methamphetamine Distribution ConspiracyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today charging Jose Nicolas Olivas Zazueta, 32, and Jorge Hernandez, 34, both of Fresno, with conspiracy to distribute methamphetamine and possession with the intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, in July 2014 members of law enforcement became aware that Hernandez was involved in methamphetamine sales and were able to set up a purchase through confidential sources for $5,000 per pound. On August 2, 2014, Hernandez and Zazueta brought five pounds of methamphetamine to a parking lot on East Kings Canyon Road in Fresno where they were arrested.
This case is the product of an investigation by the United States Drug Enforcement Administration and the Federal Bureau of Investigation. Assistant United States Attorney Michael S. Frye is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Forsyth Woman Sentenced for Fraudulently Obtaining Government GrantsRead the Press Release
GAINESVILLE, Ga. - Jessica Regas has been sentenced for falsifying government grant applications and fraudulently obtaining $600,000 in government anti-drug grant funds.
“Regas stole over $600,000 in grant funds intended to fight youth substance abuse,” said United States Attorney Sally Quillian Yates. “Rather than steering young people away from drug abuse, she lined her own pocket. Not only did the federal government lose grant funds, but those intended to benefit were cheated as well.”
“Jessica Regas was greedy and she manipulated the grant process to steal federal funds needed for substance abuse prevention,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Grant fraud is a priority for the Office of Inspector General and we will continue to work closely with our law enforcement partners to identify individuals who steal crucial grant funds and victimize taxpayers.”
“Ms. Regas used deceit and fraud, to obtain money that she was not entitled and used the money for her own personal benefit”, stated Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “This sentence is a message to others that there are consequences for submitting fraudulent information to an agency of the United States Government.”
“Our team did an outstanding job coordinating local and federal agencies to bring swift justice. We will remain vigilant identifying, investigating and prosecuting crimes of this nature,” said Forsyth County Sheriff Duane K. Piper.
According to United States Attorney Yates, the charges and other information presented in court: Regas and her husband operated a private business named the “Georgia Martial Arts Foundation,” in Cumming, Ga. Beginning in 2004, Regas, acting on behalf of the Georgia Martial Arts Foundation, applied for a federal grant from the U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services Administration (SAMHSA). The grant required grantees to coordinate a coalition of members from at least 12 community sectors, including, but not limited to law enforcement agencies, media, religious and fraternal organizations, and schools. The grantee was required to, among other things, run coalition meetings that focused on substance abuse among youth, maintain minutes from those meetings, and certify that the grantee had obtained non-federal funding.
The purpose of the grant is to reduce substance abuse among youth; help community coalitions strengthen collaboration; enhance inter-governmental communication and coordination; enable communities to conduct data-driven research-based prevention planning; and provide communities with technical assistance, guidance, and financial support. Georgia Martial Arts Foundation received such a grant on an annual basis from 2004 through 2013. Georgia Martial Arts Foundation was designated as the grantee in charge of a coalition named the “Drug Free Forsyth Coalition.”
Regas submitted numerous annual continuation applications to SAMHSA with materially false statements, including that the “Drug Free Forsyth Coalition” had representatives from the 12 required sectors of the community, had substantial involvement from volunteer leader or members, and could be sustained as an ongoing concern with non-federal financial support. In fact, the “Drug Free Forsyth Coalition” never had representatives from the 12 required sectors of the community, rarely held meetings, and lacked the required non-federal matching funds.
Beginning in 2011, the “Georgia Martial Arts Foundation” ceased to exist. Despite the fact that the “Georgia Martial Arts Foundation” no longer existed, the Defendant continued to submit continuation applications to SAMHSA using the “Georgia Martial Arts Foundation” as the name of the grantee. These renewal applications continued to have materially false statements. Based upon these renewal applications, SAMHSA continued to send $125,000 a year to Regas.
Regas, 62, of Cumming, Ga., was sentenced by U.S. District Judge William C. O’Kelley to one year, nine months in federal prison, three years of supervised release, and ordered to pay $600,000 in restitution.
This case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General, Internal Revenue Service Criminal Investigation, and Forsyth County Sheriff's Office.
Assistant United States Attorney Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Gainesville Division is http://www.justice.gov/usao/gan/.
Former Stockton College Police Officer Admits Distributing OxycodoneRead the Press Release
CAMDEN, N.J. - A former Richard Stockton College of New Jersey police officer today admitted selling oxycodone-based pills to an undercover officer and a witness who was cooperating with law enforcement officers, U.S. Attorney Paul J. Fishman announced.
Marcus Taylor, 41, of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with distributing and possessing with intent to distribute oxycodone. As part of his plea agreement, Taylor will forfeit $8,775, consisting of the illegal profits obtained from his sale of oxycodone.
According to documents filed in this case and statements made in court:
Between November 2012 and January 2013, Taylor sold 537 oxycodone-based prescription pills to either an undercover Drug Enforcement Administration task force officer or the cooperating witness over five meetings, each of which occurred in Clementon, New Jersey. Taylor arranged the meetings with the undercover officer through a series of text messages. Taylor discussed the price of the pills and his hope of fostering a long-term drug distribution relationship. At the Nov. 28, 2012, meeting, Taylor told the undercover officer that the 30-milligram oxycodone pills he sold the officer were obtained through a prescription issued by a doctor, and “if you gonna be a good customer for me and buy these every 28 days for 15 bucks, I won’t give these to nobody.”
None of the transactions involved students or took place at the Stockton College campus, nor was Taylor ever in uniform when the drug sales were made. He resigned in April 2014.
The drug distribution charge carries a maximum potential penalty of 20 years of in prison and a $1 million fine. Sentencing is scheduled for Nov. 14, 2014.
U.S. Attorney Fishman credited special agents and officers assigned to the Camden High Intensity Drug Trafficking Area team, under the direction of the DEA Special Agent in Charge Carl J. Kotowski, for the investigation leading to today’s guilty plea. He also thanked U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); the Camden County Prosecutor’s Office; the Westampton Township, Camden, Burlington City and Richard Stockton College police departments; the Delaware River Port Authority; and the N.J. Division of Criminal Justice for their work on the case.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the Special Prosecutions Division in Camden.
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Defense counsel: Edward Plaza Esq., Little Silver, New JerseyTaylor, Marcus Information
Former Owner of Carlsbad “Head Shop” Pleads Guilty to Federal “Spice” Trafficking and Money Laundering ChargesRead the Press Release
ALBUQUERQUE – Garlan R. Plumlee, 62, of Carlsbad, N.M., entered a guilty plea this afternoon in Las Cruces federal court to distribution of a controlled substance analogue and money laundering. Under the terms of his plea agreement, Plumlee will be sentenced to two years of probation.
Plumlee and his co-defendants, Phillip Larez, 33, and Justin E. Thompson, 33, also of Carlsbad, were indicted in Dec. 2012, and charged with conspiracy to distribute a controlled substance analogue, distribution of a controlled substance analogue, and possession of a controlled substance analogue with intent to distribute. The indictment also charged Plumlee with money laundering offenses. The indictment was superseded in March 2014, to add an additional possession with intent to distribute charge against the three defendants.
The superseding indictment alleged that from March 2011 through June 2012, the defendants conspired to distribute controlled substance analogues in Eddy County, N.M. It also alleges that they distributed controlled substance analogues on Feb. 2, 2012 and June 27, 2012, and that they possessed controlled substance analogues with intent to distribute on June 28, 2012. Plumlee also was charged with laundering the proceeds of this unlawful drug trafficking.
The controlled substance analogues charged in the superseding indictment are commonly referred to as synthetic marijuana or “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
The three men used “The Looking Glass,” a head shop owned by Plumlee and located on Canal Street in Carlsbad to sell “spice,” under the names “Scooby Snax,” “Diablo,” and “Knockout.” Officers seized approximately 4,779 packages of “spice” with 38 different names from “The Looking Glass” on June 28, 2012, when they executed a search warrant at the business. Plumlee withdrew $147,000 out of his business and personal bank accounts the day after the search warrant was executed.
Today Plumlee entered guilty pleas to conspiracy to distribute “spice” and money laundering. In his plea agreement, Plumlee admitted being the owner of “The Looking Glass” from March 2011 through June 2012, and selling controlled substances which were labeled as “incense.” He also admitted withdrawing $147,000, which included proceeds from the sale of “spice,” from his personal and business bank accounts on June 28, 2012, to prevent law enforcement from seizing the money.
Co-defendant Thompson pled guilty on April 4, 2014, to conspiracy to distribute “spice” under a plea agreement that requires a sentence of two years of probation. Thompson admitted being the manager of “The Looking Glass,” and selling “incense” at “The Looking Glass” while knowing that the “incense” was “spice.”
On Aug. 5, 2014, co-defendant Larez pled guilty to distributing “spice” under a plea agreement that specifies a sentence of one year of probation. Larez admitted that on June 27, 2014, while working at “The Looking Glass,” he sold some “incense” to an undercover officer, and that the “incense” contained a detectable amount of an analogue known as “spice.”
The case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force, and is being prosecuted by Assistant U.S. Attorneys Renee L. Camacho and E. Garreth Winstead of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department, Artesia Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Former Office Manager Pleads Guilty to Embezzling Funds from Car DealershipRead the Press Release
PITTSBURGH – The office manager for a South Hills car dealership has pleaded guilty in federal court to charges of wire fraud and filing false income tax returns, United States Attorney David J. Hickton announced today.
Deborah Cassini, 61, of New Castle, Pa, pleaded guilty to four counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Cassini was employed by Three Rivers Volkswagen as the Office Manager. As the Office Manager, Cassini had access to the company’s bank accounts, payroll system, accounting system and cash. Over the course of several years, Cassini embezzled funds in numerous ways, including making approximately 163 online payments to her personal credit cards from the company bank account; by making approximately six online payments for her BMW from the company bank account; by issuing herself additional compensation through the payroll system approximately 98 times; by skimming cash hundreds of times; by writing checks to herself and to cash on company checks and by making cash withdrawals from the company bank account. Cassini concealed the theft by making false accounting entries into the company’s accounting system and by preparing false financial statements. The United States Attorney’s Office submitted to the Court that the loss to the victim was approximately $700,000. Cassini also pleaded guilty to filing false income tax returns for three of the years in which she embezzled funds.
Judge Bissoon scheduled sentencing for Nov. 20, 2014, at 10 am. The law provides for a total sentence of 89 years in prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court permitted Cassini to remain on bond.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government. The United States Postal Inspection Service and the Internal Revenue Service/Criminal
Investigation Division conducted the investigation that led to the prosecution of Deborah Cassini.
Former Fannie Mae Official Sentenced to Federal Prison for Soliciting Kickbacks from Broker Who Sold Foreclosed PropertiesRead the Press Release
LOS ANGELES – A San Francisco man was sentenced to three months in federal prison, followed by six months of home confinement with electronic monitoring, for his involvement in insider trading by purchasing Marvel Entertainment, Inc. stock options immediately prior to its acquisition by The Walt Disney Company in August 2009.
Toby G. Scammell, 29, was sentenced this morning by United States District Judge S. James Otero. In addition to the prison term, which Scammell was ordered to begin serving on September 22, 2014, Judge Otero ordered him to pay restitution in the amount of $122,494.05 to victim broker-dealers who sold the options to Scammell, and ordered him to make payments upon his release from prison toward a judgment to disgorge his trading profits and pay civil penalties and interest totaling $800,985 in a related civil action filed by the Securities and Exchange Commission.
Scammell pleaded guilty in April 2014 to one count of securities fraud through insider trading.
According to court documents, Scammell learned that Disney planned to acquire another company “that people would recognize right away” from his then-girlfriend, who was an extern at Disney in the Summer of 2009 and who worked on the deal to acquire Marvel. Scammell later learned from a supervisor at his then-employer -- which had periodically provided corporate consulting services to Disney and had confidentiality obligations to Disney -- that Disney had previously been interested in acquiring Marvel. Scammell admitted that he learned the planned acquisition by Disney was estimated to close by Labor Day 2009, based on his observations of his girlfriend’s work schedule at Disney and their own travel plans at the time.
Scammell used the information that he learned from his girlfriend to acquire 659 call options to purchase Marvel stock for $5,465. He purchased more than half of the options in his brother's account. Scammell did not tell his girlfriend or his brother about the purchases of the Marvel call options.
Marvel’s stock rose approximately 25 percent after the deal with Disney was announced on August 31, 2009. After the acquisition was publicly disclosed by Disney, Scammell immediately sold his options, realizing more than $192,000 in profits. Scammell transferred $100,000 of the profits out of his brother's account to conceal the trading and profits from his brother.
This case was investigated by the Federal Bureau of Investigation, which received assistance from the Securities and Exchange Commission.
Release No. 14-104
Former ConvergEx Global Markets Chief Executive Officer and Trader IndictedRead the Press Release
The former chief executive officer (CEO) and a former trader of ConvergEx Global Markets Limited (CGM Limited) — a former broker-dealer registered in Bermuda — were indicted late yesterday in federal court in the District of New Jersey for allegedly concealing additional fees, which they referred to as “trading profits,” fraudulently charged to clients in connection with orders to buy and sell securities.
Assistant Attorney General Leslie R. Caldwell for the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office, and Inspector in Charge Philip R. Bartlett of the U.S. Postal Inspection Service (USPIS) made the announcement.
“The former CEO and a senior vice president of ConvergEx Global Markets Limited have been charged in connection with a scheme to bilk millions of dollars from clients, then conceal the fraud from their client victims,” said Assistant Attorney General Caldwell. “The Justice Department’s Criminal Division will bring to justice those who fleece investors in the financial markets, particularly high-level executives and sophisticated traders.”
“Securities fraud schemes undermine investor confidence and damage the integrity of our global trading market,” said Assistant Director in Charge Parlave. “Today’s indictment underscores the FBI’s ability to work with our partners to investigate complex international financial crimes and sends a clear message to the brokerage community that providing anything less than complete transparency will not go unnoticed.”
“This indictment demonstrates Postal Inspectors’ commitment to pursuing those in the financial services industry who have chosen to defraud its customers,” stated Inspector in Charge Bartlett. “We will continue to investigate the criminals who use the mail to further their criminal activity.”
Anthony Blumberg, 49, of New Jersey, and Craig Marshall, 47, of Bermuda, were, respectively, the CEO and a senior vice president involved in trading at CGM Limited. Blumberg was also an executive managing director of ConvergEx Group LLC, the parent company of CGM Limited. A federal grand jury returned an indictment charging both Blumberg and Marshall with securities fraud, wire fraud, and conspiracy to commit securities and wire fraud. In a separate action, the Securities and Exchange Commission (SEC) announced civil charges against Blumberg.
According to the allegations in the indictment, certain ConvergEx Group broker-dealers regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders. Employees throughout ConvergEx Group and its subsidiaries referred to such mark-ups and mark-downs as “spread,” “trading profits” or “TP.” T o hide the fact that spread had been taken on trades, from 2007 to 2011, Blumberg, Marshall and others sent false transaction reports to clients with fabricated details regarding the transactions, or “fills,” executed during the course of a day to complete a client’s orders. These reports falsified details including the number of shares involved in a fill, the time at which the fill was executed and the price at which shares were either purchased or sold.
According to previously-filed court documents, CGM Limited traders, including Marshall, created these false reports using exchange data from transactions entered into by others on the same trade date as the trades that had been executed by CGM Limited on behalf of its clients. Clients who received these reports had approximately $5.2 million in spread taken on their trades.
According to the indictment, Blumberg, Marshall and others agreed to violate a client’s instructions to provide real-time transactional data through an immediate data feed with details of trades that CGM Limited executed for the client. According to previously-filed court documents, instead of providing such real-time data, CGM Limited traders turned off the real-time data feed for certain portions of the client’s orders and took spread while the real-time data feed was turned off. On several occasions, when the client asked why the feed was not receiving real-time data, the client was told that various “IT” issues were to blame.
On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, and CGM Limited each pleaded guilty to conspiracy to commit securities and wire fraud before U.S. District Judge Jose L. Linares in the District of New Jersey. On the same day, ConvergEx Group entered into a deferred prosecution agreement. Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Washington Field Office and the Washington, D.C. and New York offices of the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorneys Justin Goodyear, Jason Linder and Patrick Pericak of the Criminal Division’s Fraud Section and by Assistant U.S. Attorney Leslie Schwartz for the District of New Jersey. Fraud Section Assistant Chief Robert Zink and former Trial Attorney Charles Reed also assisted with the investigation. The department appreciates the substantial assistance of the SEC.Former Co-Owner of Atlanta-based Medical Clinic Chain and Former Hospital Executive Plead Guilty to Illegal Pay-for-Patient ConspiracyRead the Press Release
ATLANTA –Tracey Cota and Gary Lang have pleaded guilty to conspiracy to violate the Anti-Kickback Statute by paying and receiving illegal remuneration in exchange for Medicaid patient referrals to hospitals in the Atlanta area and on Hilton Head Island, S.C.
“Our federal health care programs depend on providers exercising independent judgment in the best interests of patients,” said United States Attorney Sally Quillian Yates. “These illegal referral arrangements resulted in women being steered to deliver their babies at hospitals on the basis of Clinica’s and the hospitals’ financial self-interest, regardless of whether it was in the women’s best interest.”
“These medical executives enriched themselves by using uninsured pregnant women and newborn babies as commodities, whose health care could be bought and sold for kickbacks and bribes,” said Principal Deputy Assistant Attorney General Miller. “Unlawful payments for patient referrals can lead to increased Medicaid costs, corrupt medical decision-making, overutilization of medical services, and unfair competition – and most importantly, insufficient or inadequate care for patients. The Justice Department is committed to investigating and prosecuting those who illegally pay for patients.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty pleas will hold two individuals who were in positions of trust and authority accountable for their participation in a criminal scheme in which decisions on patient care were driven by illegal monetary gain instead of the patients’ best interest. The FBI will continue to partner with HHS-OIG and the Department of Justice to ensure that the many facets of the health care industry operate as intended and are free from those who seek opportunity to illegally profit by manipulating federal programs designed to aid those in need.”
“It is unacceptable that health care providers would scheme to refer uninsured mothers about to deliver their babies to hospitals based on a kickback agreement designed to boost profits rather than based on who would provide the best health care to the mothers and newborns. Our agency is dedicated to unearthing such illegal kickback schemes, which undermine the public’s trust in the medical profession,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services, Office of Inspector General’s Atlanta Regional Office.
According to United States Attorney Yates, the charges and other information presented in court: Cota was the co-owner and chief operating officer of Hispanic Medical Management, Inc. d/b/a Clinica de la Mama (“Clinica”), a Georgia corporation that operated several medical clinics in the Atlanta, Ga., area and on Hilton Head Island, S.C. These clinics specialized in the provision of prenatal care services to primarily undocumented Hispanic women. Because of their immigration status, the women, who lacked other means of medical insurance, were ineligible for Medicaid coverage. Georgia and South Carolina Medicaid, however, did cover and pay certain costs associated with their labor and delivery and the care of their newborns at hospitals, as well as the professional fees of the physicians providing labor and delivery services. Lang was the Chief Executive Officer of an Atlanta area hospital that was enrolled as a provider in the Georgia Medicaid program.
Between July 2000 and July 2012, Cota conspired with executives from Atlanta area hospitals, including Lang, and from a hospital on Hilton Head Island, to compensate Clinica for the referral of Clinica’s patients to the hospitals. To accomplish this goal, the hospitals contracted with, and paid, Clinica to provide certain services, including translation services and Medicaid eligibility determination services, but the true purpose of the arrangements were to pay Clinica for patient referrals. These referrals ultimately triggered Medicaid reimbursements of over $100 million to the hospitals.
Cota, 50, of Dunwoody, Ga., and Lang, 58, also of Atlanta, Ga., were each charged in separate Criminal Informations on June 28, 2014, with one count of conspiracy to pay and receive remuneration in exchange for Medicaid patient referrals. Sentencing has not yet been scheduled.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General.
Assistant United States Attorney Sally B. Molloy and Assistant Chiefs Ben Curtis and Rob Zink with DOJ Criminal Division’s Fraud Section are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Chatham County Deputy Sheriff Indicted on Federal Child Pornography ChargeRead the Press Release
Savannah, GA – Richard Adam Hall, 52, of Savannah, Georgia was indicted this week by a federal grand jury sitting in Savannah on charges of producing child pornography, transporting a minor to engage in sexual activity, and other charges. In part, the indictment alleges that Hall, a former Chatham County Deputy Sheriff, coerced a minor to engage in sexually explicit conduct for the purpose of producing child pornography. The indictment further alleges that Hall transported a minor across state lines for the purpose of engaging in sexual activity. Earlier this year, a Chatham County grand jury indicted Hall on 25 counts of child molestation and related offenses.
If convicted on all counts of the federal indictment, Hall could face a maximum sentence of life in prison and a $1 million fine. The federal indictment of Hall arises out of a joint investigation by HSI, the Chatham County District Attorney’s Office, the Chatham County Sheriff’s Office, and the Savannah-Chatham Metro Police Department. U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorneys Daniel R. Crumby is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Cape Cod Pediatrician Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A former pediatrician was indicted today with charges relating to child pornography.
Daniel J. O’Hern, 64, of Mashpee, was charged with distribution and possession of child pornography. In June 2014, O’Hern was charged by criminal complaint and is currently being held in federal custody.
According to the affidavit, in May 2014, law enforcement discovered that O’Hern was utilizing a public file sharing program to post what appeared to be child pornography. Federal agents subsequently accessed the files and determined that they contained pictures and videos of minors engaged in sexually explicit conduct. In June 2014, federal agents executed a search warrant at O’Hern’s Mashpee residence and seized multiple computers, external hard drives, hundreds of DVDs, and other media storage devices. O’Hern, a semi-retired pediatrician at the time, was arrested following the execution of the search warrant.
The charge of distribution of child pornography provides a mandatory minimum term of five years in prison and a maximum penalty of 20 years in prison, and a lifetime of supervised release. The possession charge carries a maximum penalty of 10 years in prison and a lifetime of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the US Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Mashpee Police Chief Rodney Collins; and Barnstable Police Chief Paul MacDonald, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crime Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former CEO of Luggage Manufacturer Pleads Guilty in Manhattan Federal Court to Orchestrating Multimillion-Dollar Bank Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MARVIN JEMAL, the former Chief Executive Officer of a Manhattan-based company that designed, imported and distributed luggage, business bags, backpacks, and accessories (the “Company”), pled guilty today in connection with a scheme to fraudulently obtain millions of dollars in loans from a bank by making false statements and submitting false and phony documents to the bank. JEMAL pled guilty before U.S. District Judge Valerie E. Caproni.
Manhattan U.S. Attorney Preet Bharara said: “Marvin Jemal orchestrated a scheme to line his own pockets by duping a bank into lending his luggage company more than $6 million based on lies and phony documents, and then diverting the money for his own personal uses, including the purchase of homes and luxury cars. Now Jemal stands convicted of a felony and awaits sentencing.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at today’s guilty plea:
From 2007 through October 2009, MARVIN JEMAL and Mark Bernstein, the former CEO and CFO, respectively, of the Company, engaged in a scheme to fraudulently induce a commercial bank based in New York (the “Bank”) to lend millions of dollars to the Company. Among other things, JEMAL and Bernstein knowingly made false representations to the Bank, concealed material facts from the Bank, and submitted false and fraudulent documents to the Bank, including fabricated invoices and shipping documents. In total, the Company obtained approximately $6.9 million in loans from the Bank and defaulted on approximately $6 million of those loans. Although the loans were purportedly for the benefit of the Company’s business, JEMAL diverted approximately $3.5 million of the loan proceeds to personal bank accounts and used the money to pay for various personal expenses, including mortgage payments on properties he owned, credit card bills, and payments on his Porsche.
The Factoring Agreement
The Company obtained the loans from the Bank as part of a secured credit facility, pursuant to a factoring agreement between the Company and the Bank. Under the terms of the factoring agreement, the Company would assign and sell the Company’s interest in its accounts receivable to the Bank and, in exchange, the Company could borrow from the Bank up to 85% of the value of those receivables. In addition, the Company could borrow up to 50% of the value of its inventory. In order to draw down on its secured credit facility, however, the Company was required to provide the Bank with, among other things, an accurate listing of all accounts receivable, as well as supporting documentation, including copies of (i) relevant underlying invoices and (ii) shipping documents or other proof of delivery.
The Scheme to Fraudulently Obtain Loans
To fraudulently obtain loans from the Bank under the factoring agreement, JEMAL and Bernstein made false statements and submitted false and fraudulent documents to the Bank, including the following:
- JEMAL and Bernstein sent duplicate and/or fabricated invoices to the Bank that purported to reflect the sale of certain products by the Company and, thus, an outstanding receivable for the Company. In truth, however, the sales reflected on those invoices were false, as those sales either had never occurred or had already been invoiced separately.
- JEMAL and Bernstein provided fraudulent shipping documents to the Bank to substantiate the purported sales of products by reflecting that those products had been shipped to customers. In truth, however, those shipping documents were false and fraudulent, as the products had not, in fact, been shipped to the customers as reflected in the shipping documents.
- JEMAL and Bernstein concealed material facts from the Bank, including credits that the Company had provided to certain of its customers (which thereby reduced the total accounts receivable associated with those customers) and instances in which the Company had directly collected and deposited payments from its customers on the same invoices the Company assigned to the Bank.
- JEMAL and Bernstein provided inaccurate monthly inventory spreadsheets to the Bank which overstated the Company’s existing inventory.
Further, in order to conceal the scheme, JEMAL made various oral misrepresentations to certain representatives of the Bank when those representatives confronted him about irregularities and other issues that the Bank had discovered with respect to the Company’s assignment of its accounts receivable.
JEMAL, 60, of Brooklyn, New York, pled guilty to one count of bank fraud, which carries a maximum sentence of 30 years in prison. Sentencing is scheduled for November 5, 2014, before Judge Caproni.
Bernstein, 64, of Belle Harbor, New York, pled guilty in October 2013 before U.S. District Judge Robert P. Patterson to one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of making a false statement to influence bank action, each of which carries a maximum sentence of 30 years in prison. He also pled guilty to one count of wire fraud and one count of money laundering, each of which carries a maximum sentence of 20 years in prison. He is scheduled to be sentenced on November 13, 2014.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Christopher D. Frey is in charge of the prosecution.
U.S. v. Marvin Jamal Plea Agreement
First Defendant Sentenced in Identity Theft Fraud Scheme Involving Personal Identifying Information from AT&T Customer FilesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that U.S. District Judge Marcia G. Cooke sentenced Chouman Emily Syrilien, 25, of Lauderdale Lakes, to 34 months in prison, to be followed by three years of supervised release.
Syrilien previously pled guilty to one count of possession of 15 or more unauthorized access devices and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A for participating in a conspiracy to unjustly enrich themselves by stealing personal identifying information and using the information to make unauthorized wire transfers from the victims’ bank accounts and obtain unauthorized credit or debit cards.
Co-defendants Jacqueline Nicole Lee Warrick, 26, of Miami, and Tracy Delva, 27, of Deerfield Beach, pled guilty on July 30, 2014, and Carlos Antonio Alexander, 24, of Orlando, pled guilty on July 16, 2014, to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Alexander’s sentencing is scheduled for October 1, 2014. Sentencing for Warrick and Delva is scheduled for October 15, 2014.
Co-defendant Angel Arcos, 23, of Pompano Beach, pled guilty on May 15, 2014, to one count conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349. Arcos’ sentencing is scheduled for September 3, 2014 at 2:00 p.m.
Change of plea hearings are scheduled on September 3, 2014, for Monique Smith, 31, of Pompano Beach, and Shantegra La’Shae Godfrey, 23, of Deerfield Beach.
Trial is scheduled on September 22, 2014, for Arrington Basil Segu, 28, of Miami.
According to court documents, defendant Syrilien was employed by Interactive Response Technologies, Inc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Defendant Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Defendants Alexander, Delva, Godfrey, Smith and Warrick were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money.
Defendants Delva and Warrick both utilized fraudulently obtained debit and credit cards that bore their names as additional “authorized users” on victims’ accounts to make both retail purchases as well as cash advances in excess of $28,000. Defendants Alexander, Smith and Godfrey made retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Defendant Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity. From September 16 to 18, 2013, five withdrawals totaling $13,000 were made from the fraudulent account and deposited into Arcos’ checking account.
The defendants face a maximum of thirty years in prison for the conspiracy charge, a maximum of ten years in prison for the access device fraud charge, and a mandatory term of two years in prison for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fifteen-Month Investigation Targeting Repeat Offenders in Dona Ana County Concludes with Major Law Enforcement OperationRead the Press Release
ALBUQUERQUE – A 15-month investigation by the FBI and the New Mexico HIDTA Regional Interagency Drug Task Force (Metro Narcotics Task Force) targeting repeat offenders in Doña Ana County, N.M., concluded yesterday with a major law enforcement operation, announced U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division and Commander Bobby Holden of the Metro Narcotics Task Force.
The investigation, which began in May 2013, initially targeted methamphetamine manufacturers and traffickers operating out of Doña Ana County, but expanded to include individuals trafficking in other drugs and using firearms to facilitate their drug trafficking crimes. The investigation identified sources of drug supply in Los Angeles, Calif., Tucson, Ariz., and El Paso, Texas, who were supplying drug traffickers in southern New Mexico with high-grade methamphetamine, and led to the filing of criminal charges against 75 individuals, including 42 federal defendants and 33 state defendants. Law enforcement officers seized more than 29 pounds of methamphetamine, 37 pounds of cocaine, 4.5 ounces of heroin, 30 pounds of marijuana, 74 firearms and 17 vehicles during the course of the investigation.
U.S. Attorney Damon P. Martinez commended the FBI and Metro Narcotics Task Force on the outstanding results of their investigation and said, “The charges filed and drugs seized as a result of this investigation illustrate the success of our District’s federal, state and local law enforcement collaboration in rooting out drug traffickers whether they operate in large communities or in rural counties.”
“A case like this is only possible through the collaborative efforts of all of us in law enforcement,” said FBI Special Agent Carol K.O. Lee. “We are proud to have been able to work with the outstanding officers of the Metro Narcotics Task Force, the Las Cruces Police Department, the Dona Ana County Sheriff's Office, the New Mexico State Police and the U.S. Attorney's Office to have such a positive and significant impact on the communities in southern New Mexico.”
“This operation was a great example of collaboration between several agencies to improve the quality of life for the citizens of Doña Ana County,” said Commander Bobby Holden of the Metro Narcotics Task Force.
The following federal defendants were either arrested yesterday or had federal detainers filed against them:
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Anthony Calderon, 40, and Orlando Roman, 34, both of Las Cruces, are charged with distributing heroin and methamphetamine in April 2014.
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Salvador Ortega, 33, and Steven Roman, 26, both of Las Cruces, are charged with distributing methamphetamine in April 2014.
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Robert J. Lambe, 36, of Las Cruces, is charged with distribution of methamphetamine in June 2014, using a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
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Jesse Antillion, 27, of Las Cruces, is charged with being a felon in possession of a firearm in Nov. 2013.
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Josh Alamagor, 32, and David Enriquez, 26, both of Las Cruces, are charged with distributing methamphetamine in May 2014.
The following defendants were arrested on federal charges during the investigation:
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Javier Orozco, 30, and Victor Manuel Carreon, 23, both of Anthony, N.M., were charged with illegally possessing firearms in June 2013, in Doña Ana County. Both entered guilty pleas. In May 2014, Carreon was sentenced to 46 months in prison followed by three years of supervised release. Orozco is scheduled to be sentenced on Sept. 24, 2014.
John Wade Crist, 57, of Las Cruces, was charged with distribution of methamphetamine in June 2013 and with being a felon in possession of a firearm. Crist pled guilty in May 2014 under a plea agreement that requires the imposition of a 144 month prison sentence.
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Matthew Pena, 29, Rebecca Torres, 40, Anthony Perez, 40, and Robert Snow, 45, all of Deming, N.M., were charged with distribution of methamphetamine in June 2013. Torres pled guilty in April 2014, and Pena pled guilty in May 2014. Both are in custody pending sentencing hearings, which have not been scheduled. Perez has pleaded not guilty and is in custody pending trial. The charges against Snow were dismissed following his death.
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Jennifer Sanders, 42, Jose Niño, 40, and Aubrey Savage, 34, all of Las Cruces, and Matthew Maley, 47 and Candice Marie Carpenter, 35, of Tucson, Ariz., are charged with conspiring to distribute methamphetamine from June 2013 through Aug. 2013 and in Dec. 2014. Niño and Maley also are charged with being felons in possession of firearms. Sanders, Savage and Niño entered guilty pleas in July 2014, and are detained pending sentencing. Sanders and Niño each face a mandatory minimum of ten years in prison and a maximum of life in prison, while Savage faces a mandatory minimum of five years to a maximum of 40 years in prison. Maley and Carpenter have entered not guilty pleas and are in custody pending trial.
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Mario Humberto Llantada, 51, and Martin Llantada, 41, both of La Puente, Calif., are charged with conspiracy to distribute methamphetamine in March 2014. Mario Humberto Llantada also is charged with money laundering and using a communications device to facilitate a drug trafficking crime. Both have entered not guilty pleas and are in custody pending trial.
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Miguel Angel Tinajero-Martinez, 24, a Mexican national illegally in the United States, was charged with conspiracy to distribute methamphetamine in Jan. 2014 and Feb. 2014, and possession of cocaine with intent to distribute in Feb. 2014. He entered a guilty plea in July 2014 and is in custody pending his sentencing hearing. Tinajero-Martinez faces a mandatory minimum of ten years in prison and a maximum of life in prison, and will be deported after completing his prison sentence.
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Justin E. Clark, 21, of Doña Ana County, is charged with distribution of cocaine in April 2014, possession of a machine gun, and being a felon in possession of a firearm. Clark has pleaded not guilty and is in custody pending trial.
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Eddie Velarde-Carmona, 33, of El Paso, Texas, and Fernando Garcia, 29, of Anthony, N.M., are charged with conspiracy to distribute methamphetamine in April and May 2014. Both have entered not guilty pleas and are detained pending trial.
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Jesus Francisco Nino, 36, of Las Cruces, is charged with possession of methamphetamine with intent to distribute in March 2014, using a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. Nino has pleaded not guilty and is detained pending trial.
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Eddie Gallardo, 31, of Las Cruces, is charged with possession of methamphetamine with intent to distribute in April and May 2014 and with being a felon in possession of a firearm. Gallardo has pleaded not guilty and is detained pending trial.
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Aaron Alexander Nowak, 25, of El Paso, Texas, is charged with possession of methamphetamine with intent to distribute in May 2014. Nowak has pleaded not guilty and is detained pending trial.
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Renelle Serna, 23, of Las Cruces, N.M., is charged with distributing methamphetamine in May 2014. Serna has pleaded not guilty and is detained pending trial.
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Eric G. Acosta, 27, and Christopher J. Cleveland, 34, both of Las Cruces, are charged with possession of methamphetamine with intent to distribute in June 2014, using a firearm in furtherance of a drug trafficking crime, and being felons in possession of firearms. Both have pleaded not guilty and are detained pending trial.
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Manuel Alfred Gamboa, 42, of Las Cruces, is charged with distribution of heroin and using a communication device to facilitate a drug trafficking crime. He has pleaded not guilty and is detained pending trial.
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Derek Cruz Rubalcava, 24, and Mark Jesse Rodriguez, 24, both of Las Cruces, are charged with conspiracy to distribute methamphetamine and distribution of methamphetamine in July 2014. Both have pleaded not guilty. Rodriguez is detained and Rubalcava is released on bond pending trial.
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Patricia Castro, 41, of Las Cruces, is charged with possession of methamphetamine with intent to distribute in July 2014. She has pleaded not guilty and is detained pending trial.
Two defendants arrested as a result of this investigation, Victor Edmundo Cano, Sr., 49, and Jaime Cano, Sr., 48, of Canutillo, Texas, are charged with cocaine trafficking offenses and using firearms in furtherance of drug trafficking crimes in the U.S. District Court for the Western District of Texas. Both have entered not guilty pleas and are detained pending trial.
Four federal defendants have yet to be arrested and are considered fugitives.
The investigation leading to the aforementioned arrests, drug seizures and cases was conducted by the FBI’s Las Cruces Southwest Border/Safe Streets Task Force and the New Mexico HIDTA Regional Interagency Drug Task Force. Agents and officers from the FBI, Metro Narcotics Task Force, Doña Ana County Sheriff’s Office, Las Cruces Police Department, U.S. Marshals Service, U.S. Border Patrol and DEA assisted in today’s law enforcement operation.
The federal cases filed in the U.S. District Court for the District of New Mexico are being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office. Assistant U.S. Attorney Krystal Wade of the U.S. Attorney’s Office for the Western District of Texas is prosecuting the federal case filed in the Western District of Texas. Assistant District Attorneys of the 3rd Judicial District Attorney’s Office are prosecuting the state cases.
The New Mexico HIDTA Regional Interagency Drug Task Force is comprised of officers from the Doña Ana County, Las Cruces Police Department, New Mexico State Police and the FBI. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.Charges in criminal complaints and indictments are merely accusations. Criminal defendants are presumed innocent unless found guilty in a court of law.
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Federal Jury Convicts Rochester Man of Trafficking in Illegal Prescription DrugsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that James Marsh, 73, of Rochester, N.Y., was found guilty at trial before U.S. District Judge David G. Larimer, of conspiracy to possess with intent to distribute, and to distribute, oxycodone, and to acquire and obtain possession of oxycodone by misrepresentation, fraud, forgery, deception and subterfuge. The charges carry a maximum penalty of 20 years in prison and a fine of $1,000,000 or both.
“This case demonstrates one of the ways in which powerful and addictive prescription opiates enter the black market world of illegal narcotics traffickers,” said U.S. Attorney Hochul. “With the entire nation confronting the scourge of opiate abuse, this Office will continue to prosecute those who contribute to this epidemic regardless of age or status of the defendant.”
Assistant U.S. Attorneys John Field and Charles Moynihan, who handled the prosecution of the case, stated that the Government’s evidence showed that the conspiracy began in November of 2008 and continued through March of 2010. During that time frame, members of the conspiracy acquired oxycodone through the use of fraudulent prescriptions and then distributed it.
Witnesses for the Government detailed how they acquired Oxycontin tablets and provided them to the defendant. Marsh, who also used the names “Joe Black” and “Cowboy,” requested that another co-conspirator who held the position of office manager at a doctor’s office, write a prescription for sixty 80 milligram tablets of Oxycontin in exchange for a cash payment of between $340.00 and $380.00. The defendant also requested that the prescriptions be written in the names of other co-conspirators, who acted as fraudulent patients. Furthermore, Marsh would drive the fraudulent patients to the various pharmacies in the Rochester area to fill the prescriptions. The defendant then took the Oxycontin tablets from fraudulent patients and paid them $100.00.
Over 50 such prescriptions were written during the course of the conspiracy. In addition, the New York State Medicaid program was utilized by the conspirators to pay for the prescriptions.
The conviction is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration under the direction of James J. Hunt, Acting Special Agent in Charge of the New York Division, and the Office of the New York State Attorney General, Medicaid Fraud Control Unit, under the direction of Acting Director Amy Held.
Sentencing is scheduled for October 29, 2014, at 2:00 p.m. before Judge Larimer.Federal Judge Sentences Fort Payne Man to 30 Years for Child PornographyRead the Press Release
BIRMINGHAM – On August 6, 2014, a federal judge sentenced a Fort Payne man to 30 years imprisonment to be followed by 20 years of supervised release for three counts of child pornography, announced U.S. Attorney Joyce White Vance and Special Agent in Charge Raymond Parmer, Jr. from Homeland Security Investigations.U.S. District Judge R. David Proctor sentenced ROBERT WILLIAM FRAZIER, 34, to 30 years imprisonment for transporting, receiving, and possessing images of child pornography.
The defendant pleaded guilty to three counts carrying a statutory maximum of twenty years each. Pursuant to the factual basis of the plea agreement, forensic examination of the defendant's IPhone, computer and/or hard-drive indicated that there were images of child pornography produced, transported, received, and possessed. The images of child pornography produced, transported, received, and possessed by the defendant were of real children engaged in sexually explicit conduct, including but not limited to, actual or simulated sexual intercourse, masturbation, and the lascivious exhibition of the genitals or pubic area of at least two minor female children from DeKalb county. The defendant sent images of child pornography to and communicated with another individual, Michael Haynes, from Anniston, Alabama, who has also been prosecuted and sentenced to 10 years imprisonment.
According to U.S. Attorney Joyce White Vance, "As a direct result of the hard work of law enforcement and the National Center for Missing and Exploited Children, prosecutors have put two pedophiles in federal prison, where they will serve lengthy sentences. And most importantly, the child victims are now safe from these two predators."
HSI Special Agent in Charge Raymond Parmer, Jr. said, "The collaboration between Homeland Security Investigations, the U.S. Secret Service's Electronic Crimes Task Force, and several local law enforcement agencies, was essential to identifying and rescuing the child victims. I also appreciate the substantial assistance provided by the National Center for Missing and Exploited Children from pictures that had been shared among the defendants."The DeKalb County Sheriff's Office, Alabama Department of Public Safety, Sylvania Police Department, U.S. Secret Service Electronic Crimes Task Force, and the Hoover Police Department, provided assistance to Homeland Security Investigations in the investigation of these cases. The National Center for Missing and Exploited Children (NCMEC) was instrumental in providing information from pictures that had been shared among the defendants. Assistant U.S. Attorneys Daniel Fortune and Henry Cornelius prosecuted the cases.