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Tuesday 10 June 2014
Newark Man Admits Convenience Store Robbery SpreeRead the Press Release
NEWARK, N.J. – A Newark, N.J., man today admitted committing six armed robberies of Newark convenience stores – including the same grocery store twice within a week, U.S. Attorney Paul J. Fishman announced.
Larry McRae, 27, of Newark, N.J., pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with six counts of Hobbs Act robbery and one count of discharging a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
From June 30, 2012, through Sept. 15, 2012, McRae entered convenience stores in Newark on six different occasions and robbed the store clerks at gunpoint. During the Sept. 15, 2012, robbery he discharged one round from a handgun as he exited the store. He was apprehended by the Newark Police Department later that morning.
Each of the Hobbs Act robbery charges carries a maximum sentence of up to 20 years in prison and a fine of up to $250,000. The charge of discharging a firearm in furtherance of a crime of violence carries a mandatory minimum of 10 years in prison, a maximum of life in prison and a fine up to $250,000. The sentence on the discharging of the firearm will run consecutively to the sentence for the six robberies. Sentencing is scheduled for Sept. 15, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea. He also thanked the Newark Police Department for their contribution to the investigation.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
McRae, Larry Information
New York Man Charged with Selling Illegal Dietary Supplements OnlineRead the Press Release
ATLANTA - Chenhsin Chan, a/k/a Paul Chan has been arraigned on federal charges of mail fraud, the introduction into interstate commerce of adulterated food, the knowing distribution of a listed chemical, and money laundering.
“Chan is charged with marketing and selling dietary supplements that he knew contained ephedrine which the FDA has determined creates unreasonable risks when used for dieting,” said United States Attorney Sally Quillian Yates. “By putting those unsafe products on the market, he put his customers at risk of illness. Public safety is our priority. We will protect our citizens and the marketplace through criminal prosecution, if necessary.”
According to United States Attorney Yates, the charges, and other information presented in court: Chenhsin Chan owned and operated The Wholesale Source, LLC, a company that marketed and sold dietary supplements, primarily through affiliated websites including www.thatswholesale.com and www.ephedrawholesale.com.
From at least July 2005 through August 2012, Chan allegedly marketed and sold dietary supplements on his websites that contained ephedrine alkaloids. In April 2004, the United States Food and Drug Administration (“FDA”) published a final rule declaring dietary supplements containing ephedrine alkaloids to be adulterated food because they present an unreasonable risk of illness or injury. Chan was allegedly warned by FDA investigators in June 2005 that it was illegal to sell dietary supplements containing ephedrine, but he continued to do so.
Chan’s websites allegedly made materially false and misleading claims concerning the use of ephedrine, such as that ephedrine has been approved by the FDA for treatment of any disease, and that ephedrine has “never been illegal.” These false claims were allegedly designed to lure customers into believing that it was legal to purchase dietary supplements containing ephedrine, when it was not. During the period of the scheme, Chan allegedly sold over $4.3 million in dietary supplements that were adulterated with ephedrine, including to customers in the Northern District of Georgia.
Chan is also charged with money laundering for using proceeds from the alleged mail fraud scheme to purchase real property in New York for over $1 million in cash and a 2012 Mercedes Benz for over $50,000 in cash. The indictment seeks criminal forfeiture of, among other things, the same real property and Mercedes Benz, as well as a 2005 Lamborghini Gallardo and over $666,000 in cash.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Food and Drug Administration Office of Criminal Investigations.
Assistant United States Attorneys Steven D. Grimberg and Michael J. Brown 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/.
Monroe Man Sentenced to Almost 4 Years on Federal Drug ChargesRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Paul
Ford, 33, of Monroe, Maine, was sentenced yesterday in U.S. District Court by Chief Judge
John A. Woodcock, Jr. to 46 months in prison and 5 years of supervised release for conspiracy to
manufacture marijuana and manufacturing marijuana. Ford pleaded guilty to the offenses on
May 7, 2013.According to court records, from approximately 2006 until November of 2011, the
defendant and other family members operated a large and sophisticated indoor marijuana
growing operation out of the defendant’s parents’ home in Monroe, Maine. The defendant also
operated a separate indoor marijuana growing operation at his residence in Swanville, Maine.The investigation was conducted by the Maine Drug Enforcement Agency, the Bureau of
Alcohol Tobacco and Firearms, the Waldo County Sheriff’s Office and the Maine State Police.Mercer County, N.J., Woman Admits Paying Bribes and Engaging in FraudRead the Press Release
TRENTON, N.J. – A Mercer County, N.J., woman today admitted paying bribes to a former Department of Veterans Affairs (VA) employee who worked as a supervisory engineer at the VA’s campus in East Orange, N.J., U.S. Attorney Paul J. Fishman announced.
Donna Doremus, 46, of Hopewell, N.J., pleaded guilty today before U.S. District Judge Mary L. Cooper in Trenton federal court to three counts of a four-count information charging her with one count of bribing a public official, one count of conspiracy to defraud the United States and two counts of making and subscribing to false federal tax returns.
According to documents filed in this case and statements made in court:
The bribes were paid in connection with VA contracts awarded to companies Doremus owned. She also admitted to a conspiracy to defraud the United States by falsely representing that one of her companies was owned and controlled by a service-disabled veteran.
From 2007 to July 2012, Doremus paid approximately $671,000 in bribes to a former VA official, Jarod Machinga, 44, also of Hopewell, in connection with VA contracts awarded to three companies she owned and controlled. In his position as a supervisory engineer, Machinga had the authority and influence to direct certain VA construction contracts to particular companies. Machinga directed more than $6 million of VA construction projects to Doremus’ companies.
One of Doremus’s companies, Tyro General Construction (Tyro), entered into a service-disabled, veteran-owned small business contract with the VA. Congress has established a program whereby certain VA contracts are reserved for small businesses that are owned and controlled by service-disabled veterans. Doremus conspired with Machinga to falsely represent to the VA that Tyro was a service-disabled, veteran-owned small business so that Tyro could improperly obtain a lucrative construction contract from the VA. Machinga then used his official position and influence at the VA to award such a contract to Tyro. In total, Tyro was paid more than $3 million by the VA in connection with this service-disabled veteran-owned contract.
Doremus also engaged in a tax crime. For tax years 2009 and 2010, she intentionally falsely reported on her federal tax returns that certain of the bribe payments she made to Machinga, as well as certain of her personal expenditures, were her companies’ business expenses. As a result, she failed to pay $250,374 in federal income taxes that she owed the IRS.
On Sept.18, 2013, Machinga pleaded guilty before Judge Cooper in connection with his accepting kickbacks from Doremus and engaging in a scheme to defraud the VA. He is awaiting sentencing.
The bribery count to which Doremus pleaded guilty carries a maximum potential penalty of 15 years in prison and a fine of the greater of $250,000; twice the gross pecuniary loss or gain; or three times the value of the bribe paid. The conspiracy to defraud the United States count to which Doremus pleaded guilty carries a maximum potential penalty of five years in prison and a fine equal to the greatest of $250,000 or twice the pecuniary gain or loss. The false tax return count to which Doremus pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 22, 2014.
U.S. Attorney Fishman praised special agents of the Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey Hughes; special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for their work leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division and Peter Gaeta of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
14-208Defense counsel: Michael A. Caudo Esq., Philadelphia, Pa.
Doremus, Donna Information
Manhattan U.S. Attorney Announces Arrest of Reality Television Cast Member for Failing to Pay over $1 Million in Child SupportRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O’Donnell, the Special Agent-in-Charge of the New York Field Office of the United States Department of Health and Human Services Office of the Inspector General (“HHS-OIG”), announced the unsealing of a criminal Complaint against STEVEN JORDAN, a/k/a “Stevie Jordan,” a/k/a “Stevie J,” a cast member on a reality television show, for failing to pay over $1 million in child support obligations with respect to two children. JORDAN was arrested last night at his residence in Atlanta and is expected to be presented today in federal court in the Northern District of Georgia.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Steven Jordan failed to pay over $1 million in child support even while earning substantial income from his participation in a reality television show. By choosing to use the money for himself, rather than to pay his child support obligations, Jordan not only violated court orders, but committed a federal crime for which he will now be held responsible.”
HHS-OIG Special Agent-in-Charge Thomas O’Donnell said: “When individuals conduct themselves the way Steven Jordan is alleged to have done, it is an insult to those parents who struggle each day to fulfill their financial responsibilities to their children. The investigation of such offenses will continue by this office not only to hold accountable those parents who refuse to pay child support obligations, but to deter parents who may consider dodging their obligations in the future.”
According to the allegations contained in the Complaint unsealed today in Manhattan federal court:
Beginning in or about 1999, pursuant to an order of the New York County Family Court, STEVEN JORDAN was required to pay a minimum of $6,608 per month in child support for his two children. JORDAN’s child support obligation was increased in 2011 to a total of $8,557 per month. JORDAN has failed to pay over $1,107,412 in child support.
During the period in which JORDAN failed to satisfy his child support obligations, JORDAN was generating substantial income. Beginning in or about October 2012, for example, JORDAN became employed as a cast member on a reality television show for which he was paid approximately $27,000 per month. From January 2013 through August 2013, JORDAN received at least $193,000 for his work on the reality television show. Yet, during that same period, JORDAN did not make a single voluntary child support payment, and had a total of just $18,566 garnished and applied towards his child support obligations. From 2003 through 2013, JORDAN also received approximately $105,000 in royalties from a company that pays royalties to musicians.
JORDAN, 40, of Atlanta, Georgia, is charged with one count of failing to pay child support, which carries a maximum sentence of two years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the work of HHS-OIG for their assistance in the investigation.
This case is being handled by the Office’s General Crimes Unit and Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Andrew DeFilippis is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Steven Jordan Complaint 14 Mag 1209
Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that United States District Judge John M. Gerrard sentenced Daniel Ariza-Garcia, to 10 years in federal prison, followed by 5 years of supervised release. Mr. Ariza-Garcia pled guilty to conspiracy to distribute methamphetamine on February 25, 2014. Ariza-Garcia had been involved in the distribution of methamphetamine in the Lincoln and eastern Nebraska areas for several months. After his arrest, a search of Ariza-Garcia’s apartment uncovered nearly $40,000.00 in cash and 9.6 pounds of methamphetamine. Ariza-Garcia is expected to be deported to his native Mexico after serving his prison sentence. This case was investigated by the FBI and the Lincoln/Lancaster County Narcotics Task Force.
Man Sentenced to 16 Months for Social Security FraudRead the Press Release
Ronnie Lee Johnson, a/k/a "Ronnie Lee Durham," and "Ronnie Paul Johnson," 51, of Alexandria, Virginia and formerly of Feasterville, Pennsylvania, was sentenced today to 16 months in prison, announced United States Attorney Zane David Memeger. The defendant previously pled guilty to five counts of Social Security Fraud in connection with his use of a stolen Social Security number and date of birth. The defendant, who stole the victim’s Social Security number while working as a Database Administrator in the Eastern District of Pennsylvania, used the stolen Social Security number and date of birth to open bank accounts, obtain a debit card, and obtain employment. The defendant also obtained four driver’s licenses over a period of approximately three years in four different states, and also obtained two passports by altering his appearance and applying for one under the name Ronnie Johnson, and the other under the name Ronnie Durham.
In addition to the 16 month prison sentence, the defendant was ordered to pay a $3,000 fine, and to serve 3 years of supervised release following his prison term.
The case was investigated by the Social Security Administration, Office of Inspector General, the Diplomatic Security Service, and the Lower Southampton Police Department; and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.Release.pdf
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Linneus Man Sentenced to 10 Years for Child Pornography PossessionRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ronald
H. Trecartin, 31, of Linneus, Maine, was sentenced yesterday in U.S. District Court in Bangor
to 10 years in prison and 20 years of supervised release for possession of child pornography. He
pled guilty on November 6, 2013.According to court records, in May 2012, a law enforcement agent learned that videos
containing child pornography were being shared over a file sharing network from a computer
located at Trecartin’s residence in Linneus. On September 26, 2012, agents executed a search
warrant at the residence and seized two laptop computers and other media and electronic devices
belonging to Trecartin. A forensic examination of the items seized revealed that three contained
child pornography.The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations.League City Registered Sex Offender Gets Significant Sentence for Multiple Child Pornography ConvictionsRead the Press Release
GALVESTON, Texas – Donald Post, of League City, 69, has been ordered to prison for 40 years following his convictions of production and distribution of child pornography involving a four-year-old minor female as well as possession of child pornography, announced United States Attorney Kenneth Magidson. Post pleaded guilty March 5, 2014.
Today, U.S. Circuit Judge Gregg Costa sitting in designation, handed Post a sentence of 480 months for each of the distribution and production charges as well as 240 months for possession of child pornography. The sentences will be served concurrently for a total 40-year federal sentence.
Post was arrested Aug. 8, 2013, based on a criminal complaint and appeared before U.S. Magistrate Judge John Froeschner in Galveston on Aug. 13 for a detention hearing. At that time, the court found there to be probable cause he committed the crimes and that Post, a registered sex offender, was a danger to the community and a flight risk. He was subsequently ordered into custody pending further criminal proceedings.
Post has admitted to photographing a four-year-old female victim in lewd and lascivious poses and then distributing these images via the Internet. He also authored a document that chronicled his activities with this victim. The account of the incident is incredibly graphic and makes references to his prior acts of molestation for which he was convicted and subsequently ordered to register as a sex offender.
Post will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, investigated by the FBI and prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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."
Justice Department Urges U.S. Sentencing Commission to Make Certain Individuals Incarcerated for Drug Offenses Retroactively Eligible for Reduced SentencesRead the Press Release
WASHINGTON—Attorney General Eric Holder announced Tuesday that the Justice Department would formally support a proposal under consideration by the U.S. Sentencing Commission to allow certain individuals serving time in federal prison for nonviolent drug offenses to be eligible for reduced sentences.
The Commission—which sets the guidelines for sentences imposed on federal criminal defendants—approved a proposal in April to lower, by two levels, the base offense associated with various drug quantities involved in drug trafficking crimes. Next month, the Commission will vote on whether the change, which is estimated to reduce the average sentence by 23 months, should be applied retroactively to individuals who are already in prison.
The department is proposing that the Commission make the revised guidelines retroactive for individuals who lack significant criminal histories and whose offenses did not include aggravating factors, such as the possession of a dangerous weapon or the use of violence. This approach is consistent with the department’s overall criminal justice reform efforts, which seek to reserve the harshest penalties for the most serious criminals who pose the greatest threat to public safety.
“Under the department’s proposal, if your offense was nonviolent, did not involve a weapon, and you do not have a significant criminal history, then you would be eligible to apply for a reduced sentence in accordance with the new rules approved by the Commission in April,” Holder said. “Not everyone in prison for a drug-related offense would be eligible. Nor would everyone who is eligible be guaranteed a reduced sentence. But this proposal strikes the best balance between protecting public safety and addressing the overcrowding of our prison system that has been exacerbated by unnecessarily long sentences.”The department’s position in favor of applying the revised guidelines retrospectively in some cases was conveyed Tuesday during a formal hearing of the Commission. Sally Yates, the U.S. Attorney for the Northern District of Georgia, and Bureau of Prisons Director Charles Samuels testified on behalf of the department.
“We believe that the federal drug sentencing structure in place before the amendment resulted in unnecessarily long sentences for some offenders that has resulted in significant prison overcrowding, and that imprisonment terms for those sentenced pursuant to the old guideline should be moderated to the extent possible consistent with other policy considerations,” Yates said. Under the plan supported by the department, Yates added, “retroactivity would be available to a class of non-violent offenders who have limited criminal history and did not possess or use a weapon, and thus will apply only to the category of drug offender who warrants a less severe sentence and who also poses the least risk of reoffending.”
The department’s proposal calls for retroactivity to be applied to defendants in Criminal History Categories I and II who did not receive (1) a mandatory minimum sentence for a firearms offense pursuant to 18 U.S.C. § 924(c); (2) an enhancement for possession of a dangerous weapon pursuant to §2D1.1(b)(1); (3) an enhancement for using, threatening, or directing the use of violence pursuant to §2D1.1(b)(2); (4) an enhancement for engaging in an aggravating role in the offense pursuant to §3B1.1; or (5) an enhancement for obstruction or attempted obstruction of justice pursuant to §3C1.1. (2) an enhancement for possession of a dangerous weapon pursuant to §2D1.1(b)(1); (3) an enhancement for using, threatening, or directing the use of violence pursuant to §2D1.1(b)(2); (4) an enhancement for engaging in an aggravating role in the offense pursuant to §3B1.1; or (5) an enhancement for obstruction or attempted obstruction of justice pursuant to §3C1.1.Jefferson County Man Guilty of Federal Income Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A 44-year-old Port Arthur, Texas man has pleaded guilty to federal income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Theodore Paul Victor, Jr., pleaded guilty to tax evasion today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, for the calendar year 2009, Victor failed to disclose all of his taxable income resulting in a tax loss of approximately $25,935.58. Victor was indicted by a federal grand jury on Apr. 2, 2014.
Victor faces up to 5 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney John B. Ross.
Illinois State Rep. Derrick Smith Convicted of Taking $7,000 BribeRead the Press Release
CHICAGO — Illinois State Rep. DERRICK SMITH (10th District) was convicted today on federal corruption charges for accepting a $7,000 cash bribe in March 2012 to write an official letter of support for a daycare center that he believed was seeking a state grant as part of an undercover investigation. Smith was found guilty by a jury that began deliberating Monday afternoon following a trial that began on May 28.
Smith, 50, of Chicago, was convicted of one count each of bribery and attempted extortion. No sentencing date was immediately set. A status hearing was set for Sept. 23 before U.S. District Judge Sharon Johnson Coleman. Bribery carries a maximum sentence of 10 years in prison and attempted extortion carries a maximum of 20 years, and both counts carry a $250,000 maximum fine. The court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
According to the evidence at trial, a confidential source identified as “Pete,” who worked on Smith's political campaigns and who, unbeknownst to Smith, was cooperating with the FBI, had numerous conversations with Smith about helping a fictional daycare owner obtain a purported state grant in exchange for a cash bribe. On March 2, 2012, Smith provided “Pete” with an official letter of support for the daycare owner to obtain a $50,000 Early Childhood Construction Grant from the state’s Capital Development Board. In return, during a recorded meeting on March 10, 2012, “Pete” gave Smith $7,000 cash, purportedly from the fictional daycare owner.
In March 2011, Smith was appointed state representative for the 10th District, which covers portions of Chicago=s near west and near northwest sides. He was campaigning for his General Assembly seat in the March 20, 2012, primary election when he was arrested on March 13, 2012. Despite being impeached, he was elected to his seat in November 2012 while the charges were pending, but he became a lame duck this past February when he lost his primary bid for re-election.
Trial evidence showed that “Pete” approached the agents in December 2011 and said that that Smith was willing to trade political and non-political favors for money. During multiple recorded in-person meetings and telephone calls beginning Jan. 24, 2012, Smith agreed to write a letter of support for the purported grant application in exchange for a $7,000 bribe. On Jan. 26, 2012, Smith and “Pete” toured the daycare facility and Smith was given information about its purported expansion plans.
Throughout February 2012, Smith and “Pete” had multiple conversations in which “Pete” told Smith that the daycare was applying for an Early Childhood Construction Grant. During those recorded conversations, Smith agreed to provide a letter of support in exchange for the daycare owner’s payment of $7,000. In late February 2012, Smith directed “Pete” to have the daycare owner draft a letter for Smith to sign, and law enforcement sent a draft letter of support to Smith’s office via email. On March 2, 2012, “Pete” retrieved the letter, which was signed by Smith on his official letterhead and was addressed to the Illinois Capital Development Board.
During early March 2012, Smith told “Pete” that he wanted payment from the daycare owner, and Smith rejected payment by cashier’s check because he did not want any trace of the money. Smith told “Pete” that he wanted the $7,000 in cash, and agreed to give “Pete” $2,000 for arranging the deal. On March 10, 2012, “Pete” met with Smith in Smith’s vehicle and “Pete” counted out the $7,000 ― all in $100 bills ― for Smith during their recorded meeting.
Smith did not report receipt of the cash on his Illinois campaign finance reports. After he was arrested, Smith admitted to agents that he had accepted $7,000 in exchange for the letter of support and, accompanied by agents, he retrieved $2,500 from beneath a chest at the foot of his bed at his home and returned that money to the agents.
The verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorneys Marsha A. McClellan and Michael T. Donovan.
INTERPOL President Mireille Ballestrazzi Visits with INTERPOL Washington and DHSRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice INTERPOL Washington FOR IMMEDIATE RELEASE Tuesday, June 10, 2014INTERPOL President Mireille Ballestrazzi Visits with INTERPOL Washington and DHS
WASHINGTON - During the week of May 26th, INTERPOL President Mireille Ballestrazzi visited the U.S. where she conducted several meetings with high ranking U.S. law enforcement officials. One of the highlights of Mrs. Ballestrazzi's visit was her meeting with DHS Secretary Jeh Johnson that took place on Tuesday, May 27th. In attendance at their meeting was INTERPOL Vice President of the Americas Region Alan Bersin, INTERPOL Washington Director Shawn A. Bray, and members of Mr. Johnson's cabinet. They discussed ideas and opportunities for continued collaboration between INTERPOL and the U.S. Department of Homeland Security. Mrs. Ballestrazzi is the first-ever elected female to hold the position of INTERPOL President. Along with her title of INTERPOL President, she also serves as the Central Director of the French Judicial Police.
ICE Investigation Leads to Indictment of Crescent Man on Child Porn ChargesRead the Press Release
PITTSBURGH - An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of receipt and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The four-count indictment named Mark A. Chasey, 49, of Crescent, Pa., as the sole defendant.
According to the indictment, on or about Nov. 2, 2012, Nov. 4, 2012, and Nov. 5, 2012, Chasey knowingly received visual depictions of minors engaged in sexually explicit conduct by computer. The indictment further alleges that from in and around November of 2012, and continuing until in and around October of 2013, Chasey knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 70 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The United States Department of Homeland Security Investigations, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Gwinnett College Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The United States Attorney's Office for the Northern District of Georgia has reached a settlement agreement with Gwinnett College to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (“ADA”) by not allowing an individual who has HIV to fully participate in its programs and classes.
“Despite years of education regarding HIV and AIDS, many people still encounter discrimination based on the stigma of this disability,” said United States Attorney Sally Quillian Yates. “Our office will continue to devote resources to fight injustices for people with HIV.”The settlement resolves allegations arising from a complaint filed with the United States Attorney's Office that Gwinnett College would not allow an individual with HIV to participate in its Medical Assistant Program.
The Complainant applied for admission as a student in the Medical Assistant Program at Gwinnett College. As part of the enrollment process, Gwinnett College was informed that the Complainant has HIV. The College accepted the Complainant into the Program, and the Complainant successfully completed one quarter of courses. Only then did Gwinnett College tell the Complainant she could not continue in the program’s Medical Assistant Program because she was a safety risk to others. As a result of being forced from the Program of her choosing, the Complainant left Gwinnett College. Gwinnett College fully cooperated with the United States Attorney's Office to resolve the complaint.
Gwinnett College has agreed to make changes to its enrollment process, including removing questions related to HIV/AIDS on its application. The College has also agreed to draft new policies and procedures indicating that it does not discriminate against applicants or students on the basis of disability, including HIV. Based on the Agreement, Gwinnett College will conduct ADA training for all its employees, with a focus on HIV‑related discrimination. The College has also agreed to pay $23,000 to repay a portion of Complainant’s student loans, and compensate her for emotional distress, pain and suffering.
Title III of the ADA prohibits places of public accommodations, such as Gwinnett College, from excluding people with disabilities, including people with HIV, from participating in or benefitting from the goods, services, facilities, privileges, advantages, or accommodations.
Assistant United States Attorney Aileen Bell Hughes represented the United States in this matter.
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/.Greenville Man Receives More Than 19-year Prison Term in Child Pornography CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge Malcolm J. Howard sentenced MICHAEL ANTHONY COWARD, 28, of Greenville, North Carolina, to 235 months imprisonment followed by 20 years supervised release. The court also imposed a $5,000 fine.
On May 15, 2013, a Federal Grand Jury returned a Criminal Indictment charging COWARD. On February 10, 2014, COWARD pled guilty to distributing child pornography, in violation of Title 18, United States Code, Sections 2252(a)(2).
According to the investigation, in late September, 2011, law enforcement initiated an investigation after an undercover agent identified a computer advertising to share what was suspected to be files of child pornography through a peer-to-peer sharing program. In October, 2011, the undercover agent downloaded 105 still images and 15 videos containing child pornography from the identified computer. Using the Internet Protocol (IP) address, the subscriber was identified and a search warrant was obtained and executed at COWARD’s residence. Forensic examination of the computer belonging to COWARD revealed that 31,531 images of child pornography had been received and stored on the computer.
Additionally, COWARD has been convicted in state court for Second Degree Sexual Exploitation of a Minor and Indecent Liberties with a Child in December, 2012.
The criminal investigation of this case was conducted by the Greenville Police Department, the Pitt County Sheriff’s Office and ICAC Unit of the NCSBI. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Grandson of Naval Historian Charged with Stealing Historical Records Relating to His GrandfatherRead the Press Release
Baltimore, Maryland - A criminal complaint was filed late yesterday under seal charging Samuel L. Morison, age 69, of Crofton, Maryland, with theft of government property, specifically, historical records related to his grandfather, Rear Admiral Samuel Eliot Morison. Morison was arrested today. The complaint was unsealed at his initial appearance held earlier today in U.S. District Court in Baltimore. Morison was released under the supervision of U.S. Pretrial Services. One of the conditions of his release is that he is prohibited from visiting libraries and archives without prior court approval.
According to the affidavit filed in support of the criminal complaint, on April 12, 2014, Morison allegedly offered to sell records relating to Rear Admiral (RADM) Morison’s work during World War II to the owner of a bookstore, who subsequently agreed to take possession of the records, place them on consignment through his shop and sell them using eBay. On May 12, 2014, special agents assigned to the Archival Recovery Team (ART) with the National Archives and Records Administration reviewed the historical records being offered for sale through eBay. The records were determined to belong to the Naval History and Heritage Command, Operation Archives Branch, Naval Historical Center (Navy Archives), and to be the property of the U.S. government.
The affidavit alleges that on May 21, 2014, a search warrant was executed at Morison’s residence and approximately 34 boxes of government records and property stolen from the Navy Archives were seized. The investigation revealed that Morison was a part-time researcher at the Navy Archives from March 19, 2010, and had access to the records, known as the “Office Files of RADM Morison Papers.” Morison was never given authority to remove the records from the Navy Archives.
Morison faces a maximum sentence of 10 years in prison for theft of government property.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised NCIS and NARA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James G. Warwick, who is prosecuting the case.
Four Springfield-area Men Indicted for Stealing Guns from Pawn ShopRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four Springfield, Mo., area men were indicted by a federal grand jury today for stealing 21 handguns from an Ozark, Mo., pawn shop.
Daryl Bradley Maples, 27, Corey Lynn Downard, 32, and Matthew James Oakley, 23, all of Springfield, Mo., and Michael Cameron Heston, 25, of Republic, Mo., were charged in a four-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Maples, Downard, Heston and Oakley aided and abetted each other to illegally enter Sutton Gun and Pawn, a licensed firearms dealer located at 3994 N. 20th St., Ozark, Mo., and steal 21 handguns on Dec. 21, 2012.
Maples is also charged with being a felon in possession of firearms and ammunition. The indictment alleges that Maples, having been convicted of a felony crime, was in possession of an F.N. 9 mm pistol, a Colt Canada .38-caliber revolver and assorted ammunition on Dec. 26, 2012. Maples is also charged with selling two stolen firearms – a Rossi .38-caliber revolver and a Smith & Wesson .357-caliber revolver – on Dec. 21, 2012.
Downard is also charged with being a felon in possession of firearms. The indictment alleges that Downard, having been convicted of a felony crime, was in possession of two Beretta .40-caliber pistols on Dec. 21, 2012.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ozark, Mo., Police Department and the Springfield, Mo., Police Department.Four Sentenced in Dillon-Based Prescription Drug RingRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated that Tracey Lee Rowell, age 41, of Latta, Bobby Lee Scott, age 29, of Dillon, Denise Locklear, 35, of Latta, and Lakisha Marie Clark, age 28, of Dillon, were sentenced today in federal court in Columbia, South Carolina, for participating in a Conspiracy to Distribute Oxycodone, a violation of 21 U.S.C. § 846. Chief United States District Judge Terry L. Wooten of Columbia sentenced Rowell, the ringleader, to twenty years imprisonment; Scott to seventy months imprisonment; Locklear to 37 months imprisonment; and Clark to two years imprisonment.
Evidence presented at the change of plea hearing established that Rowell was the leader of a prescription forgery ring. The drug of choice was Roxicodone, a brand name for Oxycodone, which is a highly addictive painkiller. Rowell provided forged prescriptions to co-conspirators, who then had the prescriptions filled in pharmacies in South and North Carolina. They would then provide the pills to Rowell, who used some and sold the rest. Rowell also shared some of the pills with others in the conspiracy for their personal use. The typical prescription was for 120 pills; the total conspiracy involved almost 42,000. Each tablet had a street value of $20 to $25.
The case was investigated by the newly formed Tactical Diversion Squad of the Drug Enforcement Administration. Assistant United States Attorney Winston Holliday of the Columbia office prosecuted the case.#####
Former Teller Pleads Guilty to Embezzling from Lawrence Credit UnionRead the Press Release
TOPEKA, KAN. – A former teller with a credit union in Lawrence pleaded guilty Tuesday to embezzling more than $81,000, U.S. Attorney Barry Grissom said.
Christi Marie Hout, 38, Lawrence, Kan., pleaded guilty to one count of theft of credit union funds. In her plea, she admitted the crime occurred while she was a teller with Jayhawk Federal Credit Union at 2901 Lakeview Road in Lawrence, Kan. She wrote checks on her personal account, and her husband’s business account, and made ATM debits when there were insufficient funds in the accounts to cover the transactions. She used credit union funds to pay personal expenses and she knew that the credit union manager was covering up the thefts.
Sentencing will be set at a later time. She faces a maximum penalty of 30 years in federal prison and a fine up to $250,000.
Co-defendant Karolyn J. Stattelman, 42, Topeka Kan., former manager of the credit union, is charged with one count of theft of credit union funds. She is set for a change of plea hearing June 17.
Grissom commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.Former Rabobank Trader Pleads Guilty for Scheme to Manipulate Yen LiborRead the Press Release
A former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) Japanese Yen derivatives trader pleaded guilty today for his role in a conspiracy to commit wire and bank fraud by manipulating Rabobank’s Yen London InterBank Offered Rate (LIBOR) submissions to benefit his trading positions.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
Today, a criminal information was filed in the Southern District of New York charging Takayuki Yagami, a Japanese national, with one count of conspiracy to commit wire fraud and bank fraud. Yagami pleaded guilty to the information before United States District Judge Jed S. Rakoff in the Southern District of New York.
“With this guilty plea, we take another significant step to hold accountable those who fraudulently manipulated the world’s cornerstone benchmark interest rate for financial gain,” said Attorney General Eric Holder. “This conduct distorted transactions and financial products around the world. Manipulating LIBOR effectively rigs the global financial system, compromising the fairness of world markets. This plea demonstrates that the Justice Department will never waver, and we will never rest, in our determination to ensure the integrity of the marketplace and protect it from fraud.
“Today, a former Rabobank trader has pleaded guilty to participating in a scheme to manipulate the global benchmark interest rate LIBOR to benefit Rabobank’s trading positions,” said Assistant Attorney General Caldwell. “This was the ultimate inside job. As alleged, traders illegally influenced the very interest rate on which their trades were based, using fraud to gain an unfair advantage. Takayuki Yagami is the ninth person charged by the Justice Department in connection with the industry-wide LIBOR investigation, and we are determined to pursue other individuals and institutions who engaged in this crime.”
“Today’s guilty plea is a significant step forward in the LIBOR investigation and demonstrates the Department’s firm commitment to individual accountability,” said Deputy Assistant Attorney General Snyder. “We will continue to pursue aggressively other individuals involved in this or other illegal schemes that undermine free and fair financial markets.”
“Manipulating financial trading markets to create an unfair advantage is against the law,” said Assistant Director in Charge Parlave. “Today’s guilty plea further underscores the FBI’s ability to investigate complex international financial crimes and bring the perpetrators to justice. The Washington Field Office has committed significant time and resources including the expertise of Special Agents, forensic accountants and analysts to investigate this case along with our Department of Justice colleagues. Their efforts send a clear message to anyone contemplating financial crimes: think twice or you will face the consequences.”
According to court documents, LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.
At the time relevant to the charges, LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London. LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for Yen LIBOR at a specific maturity is the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.
Yagami admitted to conspiring with Paul Robson, of the United Kingdom, Paul Thompson, of Australia, and Tetsuya Motomura, of Japan. Robson, Thompson and Motomura were charged with conspiracy to commit wire fraud and bank fraud as well as substantive counts of wire fraud in a fifteen-count indictment returned by a federal grand jury in the Southern District of New York on April 28, 2014. All four are former employees of Rabobank.
Rabobank entered into a deferred prosecution agreement with the Department of Justice on Oct. 29, 2013 and agreed to pay a $325 million penalty to resolve violations arising from Rabobank’s LIBOR submissions.
According to allegations in the information and indictment, the four defendants traded in derivative products that referenced Yen LIBOR. Robson worked as a senior trader at Rabobank’s Money Markets and Short Term Forwards desk in London; Thompson was Rabobank’s head of Money Market and Derivatives Trading Northeast Asia and worked in Singapore; Motomura was a senior trader at Rabobank’s Tokyo desk who supervised money market and derivative traders; and Yagami worked as a senior trader at Rabobank’s Money Market/FX Forwards desks in Tokyo and elsewhere in Asia. In addition to trading derivative products that referenced Yen LIBOR, Robson also served as Rabobank’s primary submitter of Yen LIBOR to the BBA.
Robson, Thompson, Motomura and Yagami each entered into derivatives contracts containing Yen LIBOR as a price component . The profit and loss that flowed from those contracts was directly affected by the relevant Yen LIBOR on certain dates. If the relevant Yen LIBOR moved in the direction favorable to the defendants’ positions, Rabobank and the defendants benefitted at the expense of the counterparties. When LIBOR moved in the opposite direction, the defendants and Rabobank stood to lose money to their counterparties.
As alleged in court filings, from about May 2006 to at least January 2011, the four defendants and others agreed to make false and fraudulent Yen LIBOR submissions for the benefit of their trading positions. According to the allegations, sometimes Robson submitted rates at a specific level requested by a co-defendant, including Yagami, and consistent with the co-defendant’s trading positions. Other times, Robson made a higher or lower Yen LIBOR submission consistent with the direction requested by a co-defendant and consistent with the co-defendant’s trading positions. On those occasions, Robson’s manipulated Yen LIBOR submissions were to the detriment of, among others, Rabobank’s counterparties to derivative contracts. Thompson, Motomura and Yagami (described in the indictment as Trader-R) made requests of Robson for Yen LIBOR submissions through electronic chats and email exchanges.
For example, according to court filings, on Sept. 21, 2007, Yagami asked Robson by email, “wehre do you think today’s libors are? If you can I would like 1mth higher today.” Robson responded, “bookies reckon .85,” to which Yagami replied, “I have some fixings in 1mth so would appreciate if you can put it higher mate.” Robson answered, “no prob mate let me know your level.” After Yagami asked for “0.90% for 1mth,” Robson confirmed, “sure no prob[ ] I’ll probably get a few phone calls but no worries mate… there’s bigger crooks in the market than us guys!”
The indictment alleges that Robson accommodated the requests of his co-defendants. For example, on Sept. 21, 2007, after Robson allegedly received a request from Yagami for a high 1-month Yen LIBOR, Rabobank submitted a 1-month Yen LIBOR rate of 0.90, which was 7 basis points higher than the previous day and 5 basis points above where Robson said that “bookies” predicted it, and which moved Rabobank’s submission from the middle to the highest of the panel.
According to court documents, the defendants were also aware that they were making false or fraudulent Yen LIBOR submissions. For example, on May 10, 2006, Robson admitted in an email to Yagami that “it must be pretty embarrasing to set such a low libor. I was very embarrased to set my 6 mth – but wanted to help thomo [Thompson]. Tomorrow it will be more like 33 from me.” At times, Robson referred to the submissions that he submitted on behalf of his co-defendants as “ridiculously high” and “obscenely high,” and acknowledged that his submissions would be so out of line with the other Yen LIBOR panel banks that he might receive a phone call about them from the BBA or Thomson Reuters.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The investigation is being conducted by special agents, forensic accountants, and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by Senior Litigation Counsel Carol L. Sipperly and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section, and Trial Attorney Michael T. Koenig of the Antitrust Division. The Criminal Division’s Office of International Affairs has provided assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the LIBOR investigation. The Securities and Exchange Commission also has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
This prosecution is part of efforts underway by President Barack Obama’s 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 about the task force visit: www.stopfraud.com.Former Chief Executive Officer of Investment Advisory Firm Sentenced in Manhattan Federal Court for Fraud and Obstruction of JusticeRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that JOSEPH LOMBARDO, the founder and former chief executive officer of Prim Capital Corporation (“Prim”), was sentenced today to 18 months in prison for mail fraud and conspiracy to obstruct justice, arising from his scheme to defraud the National Basketball Players Association (“NBPA”) through the use of a fraudulent contract worth more than $2 million to Prim. LOMBARDO also attempted to obstruct a grand jury investigation of that fraudulent contract, including by testifying falsely and asking others to testify falsely in the grand jury. LOMBARDO, who was arrested in April 2013, along with Carolyn Kaufman, the then-chief compliance officer of Prim, pled guilty in November 2013 before U.S. District Judge Jesse M. Furman, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Not only did Joseph Lombardo attempt to steal millions of dollars from the National Basketball Players Association, he then tried to cover it up by creating an entirely fake agreement and asking others to lie for him under oath. Today’s sentence closes out Lombardo’s season of scam.”
According to the Complaint, Indictment, previously filed documents, and evidence presented at the trial of Kaufman:
Prim was founded by LOMBARDO. From 2001 until 2013, Prim was the primary outside investment advisory firm entrusted with the NBPA’s investments and finances. In that capacity, Prim performed various services for the NBPA, including assisting with the management of up to $250 million of the NBPA’s assets, reviewing the investments of individual NBA players, and conducting financial seminars for NBA players.
In the spring of 2012, as part of a U.S. Department of Labor (“DOL”) investigation, Prim was served with a grand jury subpoena requesting, among other things, copies of all agreements between Prim and the NBPA. In response, Prim produced a copy of a 2005 contract between the NBPA and Prim, under which Prim’s fee was $350,000 per year. That was the only contract that Prim produced at the time.
Several months later, in January 2013, after Prim learned that a law firm’s review of the NBPA was going to be made public in the near future, Prim produced to the DOL a previously undisclosed contract with the NBPA (the “Purported 2011 Contract”). Prim’s fee under this contract was $602,000 per year for a five-year term, for a total of $3,010,000. The Purported 2011 Contract also contained a provision indicating that it could not be cancelled for any reason by the NBPA. The Purported 2011 Contract was supposedly signed in March 2011 by LOMBARDO, Gary Hall, who was the former NBPA General Counsel, and another NBPA employee.
An investigation revealed that Hall’s signature was not authentic, and that the Purported 2011 Contract was actually created at Prim months after the death of Gary Hall. LOMBARDO had arranged for the creation of a signature stamp capable of stamping the signature “Gary A. Hall,” and used the stamp to falsify Hall’s signature months after his death.
In addition, the investigation revealed that LOMBARDO and Kaufman had agreed and attempted to obstruct a grand jury investigation. During the course of the investigation, both LOMBARDO and Kaufman appeared before the grand jury and provided false and misleading testimony. Kaufman testified, among other things, that she had not spoken with anyone regarding her testimony prior to testifying. However, in a recorded conversation prior to appearing before the grand jury, LOMBARDO gave her specific instructions on how to answer questions before the grand jury, and said that his “life is in [her] hands.” Kaufman also testified that she learned in March 2011 that the Purported 2011 Contract had been executed that same month. But the Purported 2011 Contract had not been fraudulently created until at least nine months later. In another recorded conversation, LOMBARDO instructed another individual that, if he provided certain false information to the grand jury about the creation of the fraudulent contract, “[w]e’re home free.” In a third recorded conversation, LOMBARDO instructed another individual to provide false information and said, “It’s important that we didn’t doctor this document up, okay?”
In addition to the prison term, LOMBARDO, 73, of Gates Mills, Ohio, was sentenced to three years of supervised release. He was also ordered to pay a $10,000 fine and a $200 special assessment.
LOMBARDO’s co-defendant Carolyn Kaufman was convicted of all counts against her—conspiracy to obstruct justice, obstruction of justice, and perjury—after an approximately two-week trial in December 2013. On May 21, 2014, Kaufman was sentenced by Judge Furman to three years’ probation with a special condition of six months’ home confinement, and was ordered to pay a $25,000 fine and a $300 special assessment, and to perform 500 hours of community service.
Mr. Bharara praised the outstanding work of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor, Office of Labor-Management Standards.
This case is being handled by the Public Corruption Unit of the U.S. Attorney’s Office. Assistant United States Attorneys Daniel C. Richenthal and Paul M. Krieger are in charge of the prosecution.
Former Barbour County Sheriff Sentenced to PrisonRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Matthew Lyman, Public Affairs Specialist/Community Outreach CoordinatorELKINS, WEST VIRGINIA – The former Sheriff of Barbour County, West Virginia, was sentenced to prison today for scheming to defraud an insurance company, according to United States Attorney William J. Ihlenfeld, II.
John W. Hawkins, 48 years of age, of Philippi, West Virginia, was ordered to serve 12 months and 1 day in prison as a result of his felony conviction for “Mail Fraud” in February. Hawkins, who resigned from his position as Barbour County Sheriff when he entered his guilty plea four months ago, will self-report to prison on in July. He must also make full restitution.
Hawkins admitted to staging an automobile accident in April of 2013 and then conspiring to fabricate a report for submission to Nationwide Insurance Company so that his claim would be approved. Hawkins agreed that he used the United States Mail to make a fraudulent claim in the amount of $8,262.65, which was paid to him by Nationwide last year.
United States Attorney Ihlenfeld and Assistant United States Attorney John C. Parr prosecuted the case on behalf of the government.
The case was investigated by the U.S. Attorney’s Office Public Corruption Unit. Agents and officers from the Federal Bureau of Investigation and the West Virginia State Police led the inquiry into Hawkins. Assistance was provided by the West Virginia Insurance Commission, Fraud Investigations Division.
Chief U.S. District Judge John Preston Bailey imposed a sentence above the advisory sentencing guideline range. Judge Bailey cited the betrayal of trust by Hawkins to the citizens of Barbour County as a reason for the increase sentence.
Ihlenfeld urges anyone with information regarding public corruption in their community to call the West Virginia Public Corruption Hotline at 855-WVA-FEDS (855-982-3337), or to send an email to [email protected].
Farrell Man Pleads Guilty to Gun Charge, Sentence Will Be Served Consecutive to State Jail TimeRead the Press Release
PITTSBURGH - A resident of Farrell, Pa., pleaded guilty in federal court to a charge of brandishing a firearm during and in relation to drug trafficking, United States Attorney David J. Hickton announced today.
Jashaad Coleman, 20, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill. The plea agreement entered into in this case calls for a stipulated sentence of seven years, to be served consecutively to the 4-year to 11-year sentence Coleman is currently serving in Pennsylvania state custody for a firearm and robbery conviction.
In connection with the guilty plea, the Court was advised that in the early morning hours of July 31, 2012, a vehicle carrying two individuals known to be associated with drug trafficking was stopped by officers employed by the Southwest Mercer County Regional Police Department. Coleman knew that this vehicle was carrying a quantity of crack cocaine for distribution, and upon learning that this vehicle had been subject to a traffic stop, he rode to the scene of the stop. There, Coleman pulled out a 9mm firearm, which he discharged towards the officers, with the goal of distracting the officers from the vehicle that they had stopped. Law enforcement took cover, and both the occupants of the vehicle and the crack cocaine were not recovered by the police.
In February, 2013, Coleman was tried before a Mercer County jury for unauthorized possession of a firearm as it related to the abovementioned shooting. Coleman was acquitted of this crime. Federal charges were then brought resulting in the guilty plea to the federal firearms charge.
Judge Cohill scheduled sentencing for Sept. 16, 2014, at 2:30 p.m.
Pending sentencing, the court detained Coleman pursuant to the 4-year to 11-year sentence Coleman is currently is serving in the State of Pennsylvania.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the United States.
The Pennsylvania State Police, the Southwest Mercer County Regional Police, the Mercer County District Attorney's Office, and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Jashaad Coleman.
Dos Personas Fueron Acusadas de Encabezar una Conspiración para Defraudar y Extorsionar a Consumidores de Habla Hispana por Medio de Centros de Llamadas FraudulentosRead the Press Release
WASHINGTON - Un gran jurado en Miami, Florida, acusó formalmente a dos individuos y dos empresas por supuestamente operar centros de llamadas en Perú que mintieron y amenazaron a víctimas de habla hispana para que pagaran cargos de resolución fraudulentos.
El Secretario de Justicia Auxiliar Stuart F. Delery de la División Civil del Departamento de Justicia, el Fiscal federal Wilfredo A. Ferrer del Distrito Sur de Florida y el Inspector Postal de EE.UU. a Cargo Ronald Verrochio de la Oficina de Miami realizaron el anuncio.
María Luzula, de Miami, y Juan Alejandro Rodríguez Cuya, de Lima, Perú, fueron acusados de conspiración, fraude postal y telegráfico y extorsión. Dos sociedades con sede en Miami – Angeluz Florida Corporation y Angeluz Miami, LLC – fueron acusadas de los mismos delitos.
"El Departamento de Justicia se compromete a combatir el fraude contra consumidores", señaló el Secretario de Justicia Auxiliar de la División Civil del Departamento de Justicia Stuart F. Delery. "No se tolerarán las amenazas, declaraciones falsas y otras tácticas predatorias utilizadas para estafar a consumidores".
"El fraude contra el consumidor que apunta a una población específica es vergonzoso", señaló el Fiscal Federal Ferrer. "En este caso, se alega que los demandados tomaron como blanco a consumidores de habla hispana y los amenazaron falsamente con arresto, deportación, confiscación de propiedad o daño a sus puntajes de crédito cuando los consumidores se negaron a realizar un acuerdo por productos que no fueron entregados ni pedidos. Dichas tácticas son intolerables. La Fiscalía Federal se empeña en proteger a nuestros consumidores contra el fraude, unida a la Oficina de Protección al Consumidor de la División Civil del Departamento de Justicia".
"El Servicio de Inspección Postal de EE.UU. seguirá investigando y persiguiendo enérgicamente a quienes amenacen a nuestros ciudadanos y les estafen su dinero ganado con trabajo arduo, independientemente del país desde el que operen", dijo el Inspector Postal de EE.UU. a Cargo Verrochio.
De acuerdo con los alegatos en la acusación formal, los empleados de los demandados en Perú, por medio del uso de llamadas telefónicas vía Internet, mintieron a víctimas de habla hispana en EE.UU. acerca de multas que debían y demandas judiciales que se iniciarían contra las víctimas. Los llamantes peruanos amenazaron a las víctimas y le dijeron falsamente a cada víctima que él o ella se negaron indebidamente a recibir un envío de productos. Los llamantes alegaron, también falsamente, que las víctimas debían miles de dólares en multas. En realidad, las víctimas nunca habían pedidos los productos y no se había realizado ningún intento de entregar productos a las víctimas.
La acusación formal alega que los empleados de Luzula y Rodríguez Cuya alegaron que los consumidores podrían resolver las multas si pagaban de inmediato un "cargo de resolución". Se les dijo a los consumidores que disputaron los cargos de resolución que, si no pagaban, podrían ser objeto de arresto, deportación, confiscación de propiedad o que sus puntajes de crédito podrían verse perjudicados. A pesar de que, en general, los consumidores objetaron que no pidieron ni rechazaron el envío de ningún producto, miles de consumidores aceptaron pagar los cargos debido a estas amenazas. La acusación formal alega que una sala telefónica en Miami cobraba los cargos.
Luzula y Rodríguez Cuya fueron acusados originalmente por medio de demanda penal y arrestados el 10 de enero de 2013. Permanecen encarcelados desde sus arrestos.
Los cargos en la acusación formal son meros alegatos, y se supone que los demandados son inocentes hasta que se pruebe lo contrario.
El Secretario de Justicia Auxiliar Delery elogió al Servicio de Inspección Postal por su labor de investigación y agradeció a la Fiscalía Federal para el Distrito Sur de Florida por sus aportes al caso. Están a cargo del enjuiciamiento del caso el Abogado Litigante Phil Toomajian y el Director Auxiliar Richard Goldberg de la Oficina de Protección del Consumidor de la División Civil del Departamento de Justicia.
Department of Justice Reaches Landmark Agreement to Improve Missoula County Attorney’s Office’s Response to Reports of Sexual AssaultRead the Press Release
The Department of Justice announced today that it has reached a comprehensive agreement with the Missoula County Attorney’s Office, as well as Missoula County, Montana, and the Montana Attorney General’s Office, to resolve the department’s investigation of alleged gender bias in the prosecution of sexual assaults by the Missoula County Attorney’s Office (MCAO). Under this first-of-its-kind agreement, MCAO and the county agree to take a number of significant steps to improve MCAO’s response to allegations of sexual assault and eliminate discrimination and gender bias. This agreement completes the Civil Rights Division’s investigation of the response by the Missoula criminal justice system and the University of Montana to sexual assault.
"This historic agreement will fundamentally transform the way in which the Missoula County Attorney's Office responds to sexual assault allegations," said Attorney General Eric Holder. "By taking key steps and implementing robust new safeguards to eliminate gender bias, improve communication and prosecution techniques, and increase support for victims, county law enforcement officials will strengthen their ability to combat sexual assault crimes, increase public safety, and protect those who are victimized. This action marks a critical step forward in the Justice Department's comprehensive efforts to ensure the safety and civil rights of all people across the country. And it is my hope that these remedies can serve as a model for the resolution of other cases moving forward."
Under the agreement, the MCAO will take the following steps, which will address gender bias in MCAO’s response to sexual assault and help to restore community confidence in the criminal justice system:
· Develop and implement sexual assault policies and training for prosecutors, including supervisors;
· Improve treatment of individuals who report sexual assault, including in-person interviews and improved communication;
· Use prosecution techniques that have been shown to result in better sexual assault investigations, through improved communication with law enforcement and victims, use of investigators, closer supervision of the development of cases, hiring an in-house victim coordinator, and the use of expert witnesses;
· Improve communication and coordination with other Missoula stakeholders regarding sexual assault response, including through public outreach and collaboration with the Missoula Police Department in conducting, and analyzing the results of, a victim witness survey; and
· Improve the tracking and sharing of data regarding sexual assault prosecutions, so that MCAO has a broader picture of what it is doing and can better identify any general concerns or necessary improvements.
Montana Attorney General Tim Fox, who has oversight authority over all Montana County Attorneys, has agreed to monitor the implementation of these measures, review sexual assault cases MCAO declines to prosecute, and retain a technical advisor, Anne Munch. Munch is a former sex crimes prosecutor and one of the country’s foremost experts in the subject area. As technical advisor, Munch will provide training to MCAO, advise the Montana Attorney General regarding policies, and make recommendations and provide reports regarding implementation that will be made publicly available, alongside the quarterly reports the Attorney General’s office will also publicly disseminate.
“Sexual assault is a crime that is all too pervasive and that has devastating consequences,” said Acting Assistant Attorney General for Civil Rights, Jocelyn Samuels. “Today’s agreement completes a plan for comprehensive reform at every stage of the law enforcement response, from the handling of complaints of assault by the University of Montana, through the investigation of crimes by the Missoula Police Department, to the prosecution of those crimes by the County Attorney. This holistic approach will enable the Missoula community to improve women’s safety and ensure respect for their civil rights.”
“Over the past year, the City of Missoula, the University of Montana, and the Missoula Police Department already have made important strides toward improving their response to sexual assault and strengthening the community’s confidence in its local police,” said Michael Cotter, United States Attorney for Montana. “We are delighted that the Missoula County Attorney has agreed to partner with them and to work cooperatively with the Justice Department to improve the safety of women in Missoula.”
Today’s agreement resolves the last outstanding component of the department’s multi-pronged investigation, launched in May of 2012, regarding the handling of sexual assault complaints made by women in Missoula. The investigation, conducted under the Violent Crime and Law Enforcement act of 1994, the Safe Streets Act, Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, evaluated the response to sexual assault at the University of Montana at Missoula, the University’s Office of Public Safety (OPS), the Missoula Police Department (MPD) and MCAO. In May of 2013, the department entered into agreements with the university, OPS and MPD to resolve findings related to those parties and address deficiencies in their response to sexual assaults. The implementation of those agreements has already improved these parties’ response to sexual assaults.
As part of today’s agreement, Missoula’s County Attorney will dismiss with prejudice the declaratory judgment action filed on behalf of the county attorney against the department in February of 2014. The department has agreed not to file suit regarding its allegations, outlined in a February 2014 letter of findings, that the MCAO’s response to sexual assault violated federal law.
The agreement, as well as a description of the Department of Justice’s work regarding sexual assault in Missoula, Montana, will be available at: http://www.justice.gov/crt/about/spl/ .
Columbia, S.C. Attorney Pleads Guilty to Making A False Statement to A Federal AgentRead the Press Release
COLUMBIA, S.C. – Joenathan Shelly Chaplin, an attorney in Columbia, S.C. appeared in federal court today before U.S. District Judge Margaret B. Seymour and pleaded guilty to making a false statement to a federal agent, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA) which overseas South Carolina, and Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) join U.S. Attorney Tompkins in making today’s announcement.
According to court documents and today’s plea hearing, Chaplin, 47, admitted to knowingly and willfully making a materially false, fictitious, and fraudulent statement and representation to the government. Specifically, court documents indicate, Chaplin told a special agent from the Department of Treasury that he was not aware of the reporting requirements of Form 8300. Form 8300 (“Report of Cash Payments Over $10,000 Received in a Trade or Business”) must be filed with the IRS if a person or business has received over $10,000 in one transaction or a series of related transactions while conducting their trade or business.
Chaplin has been released on bond. At sentencing, he faces a maximum prison term of five years, a $250,000 fine, or both. A sentencing date has not yet been set.
The case was investigated by IRS-CI, DEA and ATF. The prosecution is being handled for the government by Assistant U.S. Attorney Jill Westmoreland Rose of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte, upon recusal of the U.S. Attorney’s Office for the District of South Carolina.
City of San Jacinto, California, Agrees to End Discriminatory Housing PracticesRead the Press Release
The Justice Department today announced a settlement with the city of San Jacinto, California, that resolves a lawsuit alleging disability discrimination filed in the U.S. District Court for the Central District of California. Under the settlement, San Jacinto has changed its laws to comply with the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA). In addition, the city has agreed to pay a total of $746,599 in compensatory damages to housing providers and former residents with disabilities, including private plaintiffs’ attorneys’ fees and costs, as well as a $10,000 civil penalty to the United States. The settlement is subject to court approval.
The Justice Department’s complaint, which was filed in November 2012, alleged that San Jacinto violated the FHA and the ADA by enacting an ordinance intended to exclude unlicensed and some licensed homes for persons with disabilities from the city, and by targeting homes for persons with disabilities for enforcement of the ordinance and other local laws.
“Municipalities and other governmental entities cannot violate federal civil rights statutes by hiding behind intentionally discriminatory laws designed to appear neutral on their face,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “No American should be denied his or her rights, subjected to harassment or excluded from our communities because of a disability. We commend the city for working cooperatively to resolve this matter and to enact legislation to safeguard the fair housing rights of its residents with disabilities.”
The city’s enforcement efforts included an early morning sweep of unlicensed group homes for persons with disabilities by city officials in November 2008, including the city attorney and representatives of the city’s Code Enforcement and Public Works Departments, as well as armed and uniformed law enforcement officers of the Riverside County Sheriff’s Department acting as agents for the city. The officials arrived at the homes unannounced and without warrants and interrogated the residents from a prepared questionnaire targeted to persons with mental disabilities. The questions included whether the residents were or ever had been drug addicts or alcoholics; whether they suffered from any form of mental illness, and if so, what type; whether they were taking “psych” medications, and if so, what kind; whether they or other residents were currently using illegal drugs or alcohol; whether they were on parole or probation; and whether they were registered sex offenders.
“Federal laws protect the fair housing rights of all people, and no local zoning or harassment can change that,” said the U.S. Department of Housing and Urban Development (HUD) Acting Assistant Secretary for Fair Housing and Equal Opportunity Dave Ziaya. “HUD and the Department of Justice remain committed to ensuring that everyone has access to housing free of discrimination, including people with disabilities.”
The case arose as a result of complaints filed with HUD by two providers of housing for persons with disabilities in the city. HUD investigated the complaints and referred them to the Justice Department, which conducted an investigation pursuant to the Attorney General’s independent authority under the FHA and the ADA.
The department’s lawsuit is being resolved together with a lawsuit filed by the two HUD complainants and a third individual whose case was consolidated with that of the United States. The settlement prohibits the city from imposing restrictions on housing for persons with disabilities that are not imposed on housing for an equal or greater number of persons without disabilities. This includes numerical occupancy limits on group housing for unrelated persons with disabilities that are more restrictive than numerical occupancy limits for families or other unrelated persons.
As part of the agreement, the city adopted an ordinance that creates a new zoning classification, “Group Home for Persons with Disabilities,” and under the ordinance, such homes are permitted use in all residential zones. The city also revised its process for providing persons with disabilities exceptions to its zoning and land use requirements to comport with the FHA and the ADA. The agreement also requires the city to pay for fair housing training of its officials, including council members and law enforcement officers employed by the Riverside County Sheriff’s Department; maintain records relating to future proposals for housing for persons with disabilities; and submit periodic compliance reports to the department for a period of five years.
The federal FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Title II of the ADA prohibits governments from discriminating on the basis of disability in administering their zoning laws. More information on the obligation of city and county governments not to discriminate on the basis of disability is available on the department’s website . Individuals who believe that they may have been victims of housing discrimination may call the housing discrimination tip line at 1-800-896-7743, e-mail the department at [email protected] , or contact HUD at 1-800-896-7743.
Citizen of India Sentenced to Prison for Emailing Rape ThreatRead the Press Release
PITTSBURGH - A citizen of India, has been sentenced in federal court to 18 months incarceration on his conviction of violating federal law, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Karthikeyan Natarajan, 27, of La Jolla, Calif.
According to information presented to the court, on April 5, 2013, Natarajan willfully transmitted a threat via interstate commerce to injure the person of another, that is, he sent a threat via computer electronic communications to an individual threatening to rape her.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and Carnegie Mellon Police Department for the investigation leading to the successful prosecution of Natarajan.
Cicero Man Charged with Mailing Fake Anthrax/ricin LettersRead the Press Release
SYRACUSE, NEW YORK - This morning, agents from the Federal Bureau of Investigation, Syracuse Office, and the United States Postal Inspection Service, arrested BRIAN DANIEL NORTON, age 59, of Cicero, New York, on federal felony charges of mailing threatening communications and transmitting false information and hoaxes in violation of 18 U.S.C. §876(c) and 1038(a), respectively, according to United States Attorney Richard S. Hartunian.
The charges relate to conduct by Norton in mailing 21 threatening letters containing white powder, alleged to be either anthrax or ricin to various addresses in the Syracuse, New York area and elsewhere beginning in about 1997 and continuing through 2012. Those receiving the letters included LeMoyne College and Bishop Ludden High School in Syracuse, as well as U.S. Senator John McCain, then-Secretary of Defense Robert Gates and former Congresswoman Ann Marie Buerkle. Later analysis of the powder contained in the letters proved that it was harmless.
Norton made an initial appearance in U.S. District Court in Syracuse before the Hon. David E. Peebles today. If convicted, Norton faces a maximum possible sentence of ten years incarceration. He is being detained pending a detention hearing scheduled for Monday, June 16th at 11am.
The case is being investigated by the Federal Bureau of Investigation, Syracuse Resident Office and the United States Postal Inspection Service, Syracuse Office, and prosecuted by Assistant United States Attorney Stephen C. Green.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315-448-0672.
The charges in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Child Pornographer Sentenced to 10 Years in PrisonRead the Press Release
A Spring Valley college student was sentenced by U.S. District Judge Marilyn Huff today to 10 years in prison in connection with child pornography charges.
Anthony Michael Gonzales, 23, pleaded guilty in December 2013 to a single count of Receipt of Images of Minors Engaged in Sexually Explicit Conduct. He was also sentenced to five years of supervised release and ordered to pay $5,000 in restitution to a victim and register as a sex offender upon release from prison.
According to a complaint, from October 2011 through March of 2012, agents with Homeland Security Investigations identified an Internet Protocol address on a peer-to-peer file sharing program that was trading in files suspected of containing child pornography. The agents tracked the Internet Protocol address to Gonzales’ residence, which was located in Spring Valley, California.
In May 2012, the agents executed a search warrant on the residence and seized Gonzales’ laptop computer, which had the user name “Metatron.” A forensic examination uncovered approximately 170 videos and 22,300 images suspected of containing child pornography. On review of a sampling of at least 883 of the thousands of images, agents determined six of those images included bondage of children.
There also were images involving children who appeared to be under two years old. One DVD had approximately 100 images of child pornography. At the time of his subsequent arrest, Gonzales was a 23-year-old student who possessed a thumb drive that also contain additional images of child pornography.
DEFENDANT Case Number: 13CR3108-H Anthony Michael Gonzales Spring Valley, CA CHARGESCount 4 – Title 18, United States Code, Section 2252(a)(2) Receipt of Images of Minors Engaged in Sexually Explicit Conduct. Maximum penalties: Five year mandatory minimum, 20 year maximum, restitution, $250,000 fine
INVESTIGATING AGENCYU.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI)
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Bridgeport Police Officers Plead Guilty to Federal Civil Rights ChargeRead the Press Release
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Deirdre M, Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that Bridgeport Police officers ELSON MORALES, 42, and JOSEPH LAWLOR, 41, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in Bridgeport to violating an individual’s civil rights by using unreasonable force during the course of an arrest.
According to court documents and statements made in court, on May 20, 2011, officers MORALES and LAWLOR engaged in a pursuit of a van driven by an individual who was suspected of having a firearm and had failed to submit to a traffic stop. After the pursuit, the individual was apprehended in Beardsley Park in Bridgeport. MORALES used his department-issued Taser to incapacitate the individual during the course of his apprehension. Despite the fact the individual was effectively incapacitated by the initial use of the Taser, MORALES deployed the Taser a second time and LAWLOR kicked the individual several times.
“The use of unreasonable force during an arrest is not only a clear violation of an individual’s civil rights, but also gravely undermines the community’s trust in law enforcement,” stated U.S. Attorney Daly. “The overwhelming majority of officers in the Bridgeport Police Department are public servants who dedicate their lives to protecting the public. However, any law enforcement officer who crosses the line during an arrest risks federal prosecution.”
U.S. Attorney Daly stated that the investigation is ongoing.
“Today’s guilty pleas are such an important reminder to those of us who are sworn to uphold the law, that we are not above the law,” stated FBI Special Agent in Charge Ferrick. “Law enforcement officers of this state, and beyond, should rightfully be held to a high standard. Morales and Lawlor’s actions three years ago profoundly undermined that standard and the public’s faith in law enforcement to protect and to serve. It is an absolute honor and privilege to serve a community and the good men and women of the Bridgeport Police Department know that, where so many have served with both pride and distinction.”
MORALES and LAWLOR each pleaded guilty to one count of deprivation of rights under color of law, a charge that carries a maximum term of imprisonment of one year and a fine of up to $100,000.
Judge Meyer scheduled sentencing for September 2, 2014.
As part of their plea agreements, MORALES and LAWLOR have agreed to resign from the Bridgeport Police Department and not seek employment as a police or peace office during any period of supervision.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and David E. Novick.
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[email protected]Birmingham Heroin Summit Nine Part VideoRead the Press Release
Birmingham: A day-long summit on the many issues surrounding the abuse of prescription painkillers, the resurgent use of heroin, and the sharp increase in heroin overdose deaths in our community was held June 10, 2014, in Birmingham. Video excerpts from that conference are provided here.
For more information about the Heroin Summit, contact Lyndon J. Laster at 205-244-2092 or via email at [email protected].HEROIN SUMMIT PART ONE
HEROIN SUMMIT PART TWO
HEROIN SUMMIT PART THREE
HEROIN SUMMIT PART FOUR
HEROIN SUMMIT PART FIVE
HEROIN SUMMIT PART SIX
HEROIN SUMMIT PART SEVEN
HEROIN SUMMIT PART EIGHT
HEROIN SUMMIT PART NINE
Arundel Man Pleads Guilty to Theft by Bank OfficerRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jeffrey
Burnham, 41, of Arundel, Maine, pled guilty today in U.S. District Court before Judge George
Z. Singal to theft by a bank officer.According to court records, from about February of 2011 to February of 2012, Burnham,
who was a Vice President with TD Bank, stole about $240,000 from the bank. Burnham used
his corporate credit card to charge personal expenditures at gentlemen’s clubs located in Maine,
Massachusetts, New York, and Florida and then submitted false expense reports and other false
information that caused the bank to pay for those personal expenditures. Burnham also gave TD
Bank gift cards that were designed to be given as gifts to TD Bank clients instead to employees
of the gentlemen’s clubs.Burnham faces up to 30 years in prison and a $1,000,000 fine. He will be sentenced after
completion of a pre-sentence investigation report by the United States Probation Office.The investigation was conducted by the Federal Bureau of Investigation.
54 Defendants Charged in $18 Million WIC & Food Stamp Fraud ConspiracyRead the Press Release
34 additional defendants charged with allegedly
selling their federal food benefits for cashSAVANNAH, GA: A federal indictment, today unsealed in Savannah, has charged 54 defendants for their alleged roles in a massive fraud upon the WIC and Food Stamp programs. The indictment represents one of the largest federal food program frauds ever prosecuted, which fraud allegedly involved the purchase of over $18 million in WIC vouchers and Food Stamp benefits for cash through a number of purported grocery stores set up throughout Georgia. In addition to the 54-defendant indictment, 34 other defendants have been charged separately for allegedly selling their WIC vouchers and Food Stamp benefits for cash. A list of all of the defendants charged is attached.
Georgia’s Women, Infant, and Children (WIC) program provides infant formula, juice, eggs, fresh fruits and vegetables, and other healthy foods to low-income pregnant and postpartum women, and to infants and children up to age 5 who are nutritionally at risk. Participants in the WIC program receive 3-month supplies of WIC vouchers, which they can exchange at authorized stores for the healthy foods listed on the vouchers. The Food Stamp Program, now known as the Supplemental Nutrition Assistance Program (SNAP), provides “Food Stamp” benefits to low-income families through Electronic Benefit Transfer (EBT) cards, which are similar to debit cards. It is a crime to exchange WIC or Food Stamp benefits for cash. Both the WIC and Food Stamp programs are administered through the United States Department of Agriculture (USDA), and paid for by federal tax dollars.
The 54-defendant indictment alleges that a number of defendants conspired to open purported grocery stores in Savannah, Macon, Atlanta, Garden City, Lithonia, LaGrange, Stone Mountain, Riverdale, and elsewhere for the purpose of buying WIC and Food Stamp benefits for cash. Once the purported stores were opened and approved as WIC and Food Stamp vendors, many of the defendants allegedly canvassed low-income neighborhoods and solicited WIC and Food Stamp participants to illegally exchange their benefits not for food, but for cash. The defendants then allegedly bought WIC and Food Stamp benefits for cash at a fraction of the amount they received from the USDA by redeeming the benefits they had purchased. The defendants also allegedly conspired to launder over $18 million in proceeds received from their fraud upon the WIC and Food Stamp programs.
The 34 defendants charged separately from the larger indictment are alleged to have sold for cash over $1,000 worth of their own WIC or Food Stamp benefits and the WIC or Food Stamp benefits of their minor children.
United States Attorney Edward J. Tarver said, “This prosecution is one of the largest federal food program frauds ever brought. The Government alleges that the defendants stole taxpayer-funded benefits intended to feed the most needy families and children in our communities. Fraudsters beware: the U. S. Attorney’s Office is committed to working with our federal and state partners to investigate and prosecute complex financial fraud, especially when it attacks government programs funded by taxpayers of the United States.”
“This investigation and prosecution should send a strong zero-tolerance message to those individuals who create businesses for the purpose of specifically defrauding the taxpayer funded WIC and SNAP programs,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations. “It should also serve as a warning to all stores, that participate in the WIC and SNAP programs as vendors, that fraud and trafficking (purchasing those benefits for cash) will be vigorously investigated and prosecuted by the USDA-OIG, the U. S. Attorney’s Office, and all of its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer funded programs. The USDA-OIG applauds the steadfastness and resolution of the U. S. Attorney’s Office to also prosecute the WIC and EBT benefit recipients who chose to sell their benefits rather than use them for their intended purpose of purchasing nutritious foods for themselves and their eligible children.”
“The enduring cooperation between the Georgia Department of Public Health (DPH), local law enforcement, and the U. S. Attorney’s Office should send a clear signal to those contemplating WIC fraud,” said Brenda Fitzgerald, M.D., DPH’s commissioner, who commended the prosecution. “We are committed to working together to detect and eliminate fraud, and to preserve precious funds for those who need it most.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The protection of such important federally funded programs as the WIC and Food Stamp program from such wholesale fraud is paramount. The families and their children who truly need and rely on these programs count on that law enforcement protection and the taxpayers demand it. The FBI will continue to work with its many and varied law enforcement partners in combating such rampant cases of fraud against the U. S. Government.”
“The WIC and Food Stamp programs are designed to provide necessary nutrition for the most vulnerable members of our society,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “HSI is proud to have assisted the U. S. Department of Agriculture and others in protecting this program from alleged fraudulent activity in the State of Georgia.”
Each of the 54 defendants listed in the larger indictment have been charged with one count of mail and wire fraud conspiracy, which carries a maximum sentence of 20 years in prison and a fine of up to $250,000, and one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison and a fine of up to $500,000. The United States further seeks the forfeiture of $20 million and various bank accounts and assets, including a 2008 Land Rover and a 2008 Mercedes Benz. Each of the 34 defendants charged with conspiring to sell their federal food benefits face a maximum sentence of 5 years in prison and a $250,000 fine. Mr. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The indictments arise out of a joint investigation by Special Agents with the United States Department of Agriculture, Office of Inspector General; investigators with the Georgia Department of Health and Human Services and Georgia Department of Public Health, Office of Inspector General; and Special Agents with the FBI and HSI. Multiple members of these agencies, assisted by the U. S. Marshals’ Southeast Regional Fugitive Task Force and numerous other local law enforcement personnel, arrested a number of the defendants earlier today. Initial appearances are being held today and tomorrow in Savannah, Macon, and Atlanta.
Assistant United States Attorney E. Gregory Gilluly and First Assistant United States Attorney James D. Durham, both with the U. S. Attorney’s Office for the Southern District of Georgia, are prosecuting the cases for the United States.
31-14
List of Defendants Charged in 54-Defendant Indictment
Brandon Sapp, AKA “B,” 37, Austell, Georgia
Kimberly Sapp, AKA “Kimberly Walker,” AKA “The Money Wizard,” 34, Austell, Georgia
Calvin Williams, AKA “Slick,” 39, Atlanta, Georgia
Isaac Martin, AKA “Ike,” 37, Jonesboro, Georgia
John P. Jones, AKA “JP,” 39, Ellenwood, Georgia
Wayne Jackson, AKA “J5,” 32, Atlanta, Georgia
Gregory Thomas, AKA “Rich Gregg,” 37, Atlanta, Georgia
Kerry Adams, AKA “Big Skreed,” AKA “Skrump,” 38, Atlanta, Georgia
Brian Lockhart, AKA “Lock,” 47, Atlanta, Georgia
Henry Ward, AKA “TY,” AKA “TYE,” AKA “Grand Hustle,” 32, Savannah, Georgia
Vincent Harper, 40, Atlanta, Georgia
Ostrando S. Brock, AKA “Shun,” AKA “Shawn,” 32, Mableton, Georgia
Jesse McCoy, AKA “Jay Mac,” 42, Ellenwood, Georgia
Terence Cosby, AKA “Me Gold,” 33, Savannah, Georgia
Raymond Hargrove, 27, Savannah, Georgia
Jacqueline Beauchamp, AKA “Jackie,” 25, Pooler, Georgia
Elizabeth Beauchamp, 28, Pooler, Georgia
Gerald Patilla, AKA “PT,” 30, Savannah, Georgia
Clayton Talley, 32, Pooler, Georgia
Ebony Jacobs, 28, Savannah, Georgia
Olajawon Simmons, AKA “Wan,” AKA “Won,” 27, Savannah, Georgia
Reginald Simmons, AKA “Reggie,” 28, Savannah, Georgia
Gary Grier, AKA “Bundee”, AKA “Dee,” 37, Atlanta, Georgia
Magregor Warner, AKA “KB,” 40, Atlanta, Georgia
Benjamin Tookes, AKA “B,” AKA “Ben,” 40, Atlanta, Georgia
Carlos Davis, AKA “Lo,” 38, Atlanta, Georgia
Raymond Hixon, AKA “Dre,” 38, Atlanta, Georgia
Thomas Thornton, AKA “Big Bo,” 27, Atlanta, Georgia
Branden Jordan, 32, Atlanta, Georgia
Mark White, 38, Atlanta, Georgia
Tobias Render, AKA “Tee,” AKA “Toby,” 33, Atlanta, Georgia
Eric Burkes, AKA “E,” 25, Atlanta, Georgia
Aryay Strong, 31, Atlanta, Georgia
Marshall Sears, 38, Atlanta, Georgia
Suleyma Arreola, 21, Marietta, Georgia
Emory White, 32, Marietta, Georgia
Obryan Moore, AKA “OB,” 29, Powder Springs, Georgia
Terry Mitchell, Jr., 43, LaGrange, Georgia
Corey Mitchell, AKA “Stick,” 39, Atlanta, Georgia
Luquoise Clay, AKA “Qui,” 30, Atlanta, Georgia
Jessica Cameron, AKA “Keta,” 30, Grantville, Georgia
Joshua Dunlap, 38, Monticello, Georgia
Maurice Fudge, AKA “Reese,” 39, Macon, Georgia
Quinton Matthews, AKA “Q,” AKA “Chuck Matthews,” 39, Macon, Georgia
Charles Jackson, AKA “Cooley Slim,” AKA “Corey,” 35, Lithia Springs, Georgia
Ronnie Zachary, AKA “City,” 29, Byron, Georgia
Porsha Drewery, AKA “Parsha,” 37, Macon, Georgia
Taquilla Johnson, AKA “Quilla,” 35, Macon, Georgia
Raheem Waller, 30, Atlanta, Georgia
Travis Rich, 35, Atlanta, Georgia
Marlon Dobbins, 29, Atlanta, Georgia
Derrick Heard, AKA “Da Man,” AKA “Heard,” 43, Atlanta, Georgia
Rahdriq Turner, AKA “Rah Rah,” 36, Rockmart, Georgia
Antonio Dorsey, AKA “Bear,” 34, East Point, GeorgiaList of Defendants Charged In Separate Indictments
Chiquita Armstead, 40, Savannah, Georgia
Yontalay Renee Bennett, 28, Savannah, Georgia
Precious T. Bevins, 24, Garden City, Georgia
Shanika C. Blige, 22, Savannah, Georgia
Deanna W. Boles, 23, Savannah, Georgia
Candice Bostick, 23, Savannah, Georgia
Danitra Bostick, 26, Savannah, Georgia
Tia K. Bowers, 25, Savannah, Georgia
Tonya D. Clark, 41, Savannah, Georgia
Jocelyn Easterling, 48, Savannah, Georgia
Ebony Ellison, 27, Savannah, Georgia
Deonka S. Ellison, 24, Savannah, Georgia
Joanne Ferguson, 42, Savannah, Georgia
Fanchon Nyticia Hill, 26, Jesup, Georgia
Shaquanna C. Hooper, 24, Savannah, Georgia
Tameshia Natasha Jackson, 24, Savannah, Georgia
Koneshia N. Jenkins, 26, Pembroke, Georgia
Latisha V. Jones, 30, Savannah, Georgia
Jameise’ Mayberry, 23, Savannah, Georgia
Quinta Meggett-Mike, 37, Garden City, Georgia
Ebony Roberson, 26, Savannah, Georgia
Shakeila D. Roberts, 22, Savannah, Georgia
Jasmine S. Sammuel, AKA “Jazmi Beasley,” AKA “Jazmi Smith,” 24, Savannah, Georgia
Deanna K. Scott, 24, Savannah, Georgia
Whitney Denise Stokes, 25, Savannah, Georgia
Regina C. Styles, 21, Savannah, Georgia
Hope Taylor, 33, Savannah, Georgia
Ebonilaestei Tremble, 34, Savannah, Georgia
Linda J. Walker, 22, Savannah, Georgia
Tiera L. Walthour, 23, Savannah, Georgia
Alexis Washington, 26, Savannah, Georgia
Rhonda Washington, 31, Savannah, Georgia
Amber Shaniqua Wilson, 23, Savannah, Georgia
Ke’Airra Young, 24, Savannah, Georgia
Monday 9 June 2014
Washington County Man Sentenced to 15 Years for Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – CHRISTOPHER J. WHITE, age 29, of Whitehall, New York, was sentenced today to 15 years in prison for receiving child pornography by United States District Judge Mae A. D’Agostino, announced United States Attorney Richard S. Hartunian, Joseph D’Amico, Superintendent of the New York State Police, and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation. WHITE must also serve a life term of supervised release and register as a sex offender.
As part of his February 24, 2014, guilty plea, WHITE admitted that, following his 2010 Attempted Sexual Abuse in the First Degree conviction in Saratoga County Court, he used the Internet to search for, receive, and view images of child pornography.
This case was investigated by the New York State Police and the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Wagner Man Sentenced for Drug House ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wagner, South Dakota, man convicted of Maintaining a Drug-Involved Premises was sentenced on May 28, 2014, by U.S. District Judge Karen E. Schreier,
Jeffery Louis Irving, age 38, was sentenced to 87 months in prison, to be followed by 3 years of supervised release.
Irving was indicted with four other people for Conspiracy to Distribute a Controlled Substance, and with one other person for Maintaining a Drug-Involved Premises, by a federal grand jury on December 3, 2013. He pled guilty to the drug-involved premises charge on March 6, 2014, and the conspiracy count was dismissed.
Irving had allowed another man to stay at his house in Wagner and distribute methamphetamine from the residence.
This case was investigated by the Federal Bureau of Investigation, the South Dakota Division of Criminal Investigation, the Bureau of Indian Affairs, and the Charles Mix County Sheriff’s Office. Special Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Irving is being allowed to self-report to the U.S. Marshals Service on June 30, 2014.
U.S. Attorney’s Office Issues Annual ReportRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney for the Western District of Michigan Patrick Miles announced to the media today the publication of his office’s annual report on the prior year, dubbed the “Year in Review.” Overcoming notable budgetary challenges in 2013 due to the sequester and lapse in budget appropriations commonly known as the federal government shut-down, U.S. Attorney Miles emphasized that “[t]he mission of serving the public and justice is foremost in the minds and hearts of those working in the U.S. Attorney’s Office.” The report is on the office’s website at www.justice.gov/usao/miw/about/Year_In_Review.pdf.
U.S. Attorney Miles’s report documents his office’s efforts to engage the community, prosecute complex crimes, protect the public, reduce crime and recidivism, and work with local law enforcement to deploy federal resources where they have the most impact. In particular, the report notes the office’s higher than average prosecution of financial crimes, successful child pornography prosecutions, and violent crime reduction strategy. Along with his continued participation in many pre-existing state-wide initiatives, U.S. Attorney Miles met with and spoke to numerous local organizations and representatives during the year, helped launch an Advocates and Leaders for Police and Community Trust (ALPACT) group in Benton Harbor, and organized a Drug Diversion and Addiction Summit along with Barb McQuade, the Eastern District of Michigan U.S. Attorney.
Notable criminal prosecutions included: the conviction after trial and 55 year prison sentence of Gerald Singer for his arson for profit scheme; the health care fraud criminal conviction of Babuhai Rathod and related million-dollar civil settlement, of which $900,000 went to criminal restitution; the conviction of Marcus Thames and others in the so-called “Felony Lane” identity theft ring; and the conviction of Michael Allen for illegally selling Roderick Dantzler the firearm Dantzler later used to murder seven people, including two children, in a 2011 Grand Rapids killing spree.
Among many accomplishments in civil litigation, the office secured a $2 million settlement with LG Chem for its false bills to the Department of Energy related to Recovery Act grant funds to manufacture lithium-ion batteries.
Highlights also included multiple national and local awards. Assistant U.S. Attorneys (AUSAs) Michael MacDonald and Christopher O’Connor received national recognition in the form of a Director’s Award for their efforts successfully prosecuting Gerald Singer. Kathy Schuette, a Victim-Witness Coordinator, likewise received national recognition for her work in the successful prosecution of Steven Deuman for the murder of his infant daughter. U.S. Attorney Miles personally received a Frederick Douglass award for his service to the Grand Rapids community and a Patriot Award for his hiring of U.S. veterans and supporting Guard and Reserve military service obligations of his employees. Former Interim U.S. Attorney and now retired AUSA Donald Davis received awards for his public service career and for his contributions to the professional development of lawyers in the district.
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Two Carbondale Residents Charged with Crack Cocaine ConspiracyRead the Press Release
Follow @SDILNewsOn May 21, 2014, Johnathan T. Buck, a/k/a “Buffalo,” 40, and Maurice L. Christian, a/k/a “Reece,” 26, both of Carbondale, were charged by indictment with conspiracy to distribute crack cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2013 and March 2014, in Jackson County. Buck made his initial appearance in federal court on May 27, 2014. At his May 29, 2014, 2014, detention hearing, he was ordered held without bond pending a July 28, 2014, jury trial. Christian is scheduled to make his initial appearance in federal court on June 12, 2014.
The crack cocaine offense carries a penalty of up to 20 years in prison, to be followed by 3 years of supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Carbondale Police Department, and Drug Enforcement Administration. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Twelve Indicted in Weakley and Carroll Counties for Charges Related to MethamphetamineRead the Press Release
Jackson, TN – A federal grand jury returned indictments last month on a dozen individuals alleged to have been involved in the production or distribution of methamphetamine in Weakley and Carroll counties, announced U.S. Attorney Edward L. Stanton III.
A total of seven indictments were returned charging the following:
Joey Darling, 40, of Martin, TN, with one count of conspiracy to manufacture and distribute methamphetamine and one count of possession of pseudoephedrine for methamphetamine manufacturing purposes;
Clayborne Tate, 36, and Amanda Box, 34, both of Greenfield, TN, with one count each of conspiracy to manufacture and distribute methamphetamine and one count each of possession of pseudoephedrine for methamphetamine manufacturing purposes;
Charles Dunning, 30, of Gleason, TN, with one count of conspiracy to manufacture and distribute methamphetamine and one count of possession of pseudoephedrine for methamphetamine manufacturing purposes;
Robert Hopgood, 41, of Martin, TN, and Tiffany Prichard, 32, of Greenfield, TN, with one count each of conspiracy to manufacture and distribute methamphetamine and one count each of possession of pseudoephedrine for methamphetamine manufacturing purposes;
Joshua Hearn, 29, Brandy Oliver, 27, Carl Davidson, 30, and Brianna Vermillion, 23, all of McKenzie, TN, with two counts each of conspiracy to manufacture and distribute methamphetamine;
Michael Davidson, 44, of Martin, TN, with one count of conspiracy to distribute methamphetamine; and
Vaughn Yarbrough, 44, of Greenfield, TN, with one count of possession of pseudoephedrine for methamphetamine manufacturing purposes.
The potential penalties for each defendant are listed on the attached chart. There is no parole in the federal prison system.
This case was investigated by the Drug Enforcement Administration and the Weakley County Sheriff’s Office. Assistant U.S. Attorney Matt Wilson is representing the government.# # # #
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three from Oglala Charged with False Statement and FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that two men and a woman from Oglala, South Dakota, have been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substances by Fraud.
Thelma Tail, age 32, Antone Little Moon, age 33, and Shannon Long Jaw, age 38, were indicted on May 20, 2014. They appeared before U.S. Magistrate Judge Veronica L. Duffy on May 29 and 30, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 5 years in custody and/or a $250,000 fine, 1 year of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Tail, Little Moon, and Long Jaw using a fraudulent document in an attempt to obtain Hydrocodone at the Indian Health Services Pharmacy in Pine Ridge on September 16, 2013.
The charges are merely accusations and Tail, Little Moon, and Long Jaw are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
All three were released on bond pending trial. A trial date has been set for August 5, 2014.
The Executive Office for Immigration Review to Host Stakeholder Teleconference and Webinar on Recognition and Accreditation ProgramRead the Press Release
SUMMARY - The Executive Office for Immigration Review (EOIR) invites interested parties to participate in a teleconference and Webinar providing a general overview of EOIR's recognition and accreditation program. This event is intended to educate interested parties about the process for obtaining recognition for an organization and accreditation for individuals.
DATE: Thursday, June 19, 2014, at 2 p.m.
RSVP: To RSVP for the meeting, please contact Lauren Alder Reid, Counsel for Legislative and Public Affairs, 703-305-0289, [email protected], by noon on Wednesday, June 18, 2014. Please note that there will be no in-person attendance for this event. EOIR will send call-in and Web access information on Wednesday, June 18th, to those who RSVP. To attend the meeting via conference call and Web, please RSVP with the name(s) of the attendee(s), the attendee's organization, and an email address where instructions may be sent for accessing the conference call and Web meeting.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Ten Individuals Indicted on Distribution Charges and Conspiracy to Distribute Cocoaine and MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that ten individuals from Custer, Pine Ridge, and Rapid City, South Dakota, have been indicted by a federal grand jury on May 20, 2014.
- Gerald LeBeau, a/k/a Gers LeBeau, 53, of Rapid City, was indicted on Possession with Intent to Distribute Cocaine, and Conspiracy to Distribute Cocaine and Marijuana. The maximum penalty upon conviction is a minimum of 5 years up to 40 years in custody, and/or a $5,000,000 fine, 4 years of supervised release, and $100 to the Federal Crime Victims Fund.
- Neil LeBeau, 33, of Porcupine, was indicted on Conspiracy to Distribute Cocaine and Marijuana. The maximum penalty upon conviction is a minimum of 5 years up to 40 years in custody, and/or a $5,000,000 fine, 4 years of supervised release, and $100 to the Federal Crime Victims Fund.
- Susan Schrader, 52, of Pine Ridge, was indicted on Conspiracy to Distribute Cocaine. The maximum penalty upon conviction is up to 20 years in custody, and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
- Holly Wilson, 53, of Pine Ridge, was indicted on Conspiracy to Distribute Cocaine and 2 counts of Distribution of Cocaine. The maximum penalty upon conviction is up to 20 years in custody, and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
- Whitney Zephier, 26, of Pine Ridge, was indicted on Conspiracy to Distribute Cocaine and Marijuana. The maximum penalty upon conviction is up to 20 years in custody, and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
- Marie Zephier, 28, of Pine Ridge, was indicted on Conspiracy to Distribute Cocaine and Marijuana. The maximum penalty upon conviction is up to 20 years in custody, and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
- Thomas Patrick Brewer, a/k/a Pat Brewer, 48, of Pine Ridge, was indicted on Conspiracy to Distribute Cocaine. The maximum penalty upon conviction is up to 20 years in custody, and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
- Twila LeBeau, 59, of Pine Ridge, was indicted on Conspiracy to Distribute Cocaine and Marijuana. The maximum penalty upon conviction is up to 20 years in custody, and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
- Pablo LeBeau, 18, of Pine Ridge, was indicted on Conspiracy to Distribute Cocaine and Marijuana. The maximum penalty upon conviction is up to 20 years in custody, and/or a $1,000,000 fine,
3 years of supervised release, and $100 to the Federal Crime Victims Fund.
- Lona Lee Colhoff, 55, of Pine Ridge, was indicted on Conspiracy to Distribute Cocaine and Marijuana. The maximum penalty upon conviction is up to 20 years in custody, and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
The charges relate to distribution of cocaine and marijuana, primarily on the Pine Ridge Reservation, beginning as early as 2005 and continuing to the present. Gerald LeBeau, Neil LeBeau, Susan Schrader, Holly Wilson, Whitney Zephier, Marie Zephier, Thomas Patrick Brewer, Twila LeBeau, Pablo LeBeau, and Lona Lee Colhoff, conspired, with persons known and unknown, to distribute cocaine in the District of South Dakota. During the course of the conspiracy, Gerald LeBeau, Neil LeBeau, Whitney Zephier, Marie Zephier, Twila LeBeau, Pablo LeBeau, and Lona Lee Colhoff also conspired, with persons known and unknown, to distribute marijuana in the District of South Dakota.
All ten defendants appeared before U.S. Magistrate Judge John E. Simko on May 30, 2014, and pled not guilty to the Indictments. The charges are merely an accusation and all of the above-mentioned defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, the South Dakota Division of Criminal Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Ted L. McBride and Kathryn N. Rich are prosecuting the case.
Gerald LeBeau, Neil LeBeau, and Pablo LeBeau were remanded to the custody of the U.S. Marshals Service pending trial. Susan Schrader, Holly Wilson, Whitney Zephier, Marie Zephier, Thomas Patrick Brewer, Twila LeBeau, Pablo LeBeau, and Lona Lee Colhoff were released on bond pending trial. A trial date has not been set.
Taos Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Phillip Martinez, Jr., 59, a member and resident of Taos Pueblo, pleaded guilty this afternoon to a felony information charging him with assault resulting in serious bodily injury.
Martinez was arrested in Oct. 2013, on an indictment charging him with assault with a dangerous weapon. According to the indictment, Martinez assaulted another Taos Pueblo man with a stick in the Pueblo of Taos on April 29, 2013.
In entering his guilty plea, Martinez acknowledged that the victim suffered serious bodily injury as a result of the assault. Martinez faces a statutory maximum penalty of ten years in federal prison when he is sentenced. His sentencing hearing has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Tampa Contractor Sentenced to Four Years in Federal Prison for Defrauding Hundreds of Investors in Connection with Home Solutions of America, Inc. StockRead the Press Release
Brian Marshall Taken Into Custody Immediately Following Sentencing
DALLAS — Businessman Brian Marshall, 50, of Tampa, Fla., was sentenced today by U.S. District Judge Barbara M. G. Lynn to four years in federal prison for defrauding investors in connection with the sale of Home Solutions of America, Inc. stock, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Marshall was remanded immediately to custody following the sentencing hearing.
Marshall pleaded guilty on November 18, 2013, the day his trial was to begin in federal court in Dallas, to one count of securities and commodities fraud.
Marshall was a vice-president and a member of the board of Home Solutions of America, Inc., a NASDAQ-traded company that was based in Dallas before it relocated to New Orleans, Louisiana in July 2008. Home Solutions was in the business of construction and restoration, including new construction and restoration following natural disasters such as hurricanes. Home Solutions conducted some of its business through its largest subsidiary, Fireline Restoration, Inc., which was based in Tampa. Marshall was the president of Fireline. Frank J. Fradella of Covington, Louisiana, who was the CEO of Home Solutions, pleaded guilty to securities fraud in the Eastern District of Louisiana and is scheduled to be sentenced on September 24, 2014.
In filed plea documents, Marshall admitted that between December 2006 and August 15, 2007, he ran a scheme to defraud public investors by fabricating false and fictitious revenue, operating income and costs in connection with a series of construction contracts in Tampa. Marshall caused Fireline to enter into construction contracts with private companies that he wholly or partially owned, including a $4 million contract for the construction of his personal residence.
Marshall admitted that he also caused Fireline to record revenue and income from the construction contracts that were false, because little, if any, work had actually been performed. Even though Marshall knew that the revenue, costs and income on the construction projects were false, he caused Home Solutions to report it to public investors in Home Solutions’ 2Q 2007 10-Q.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, visit www.stopfraud.gov.
The FBI, with substantial assistance from the Enforcement Division staff of the Securities and Exchange Commission, conducted the investigation. Assistant U.S. Attorneys J. Nicholas Bunch and Andrew Wirmani prosecuted.
Tacoma Man Pleads Guilty to Falsely Claiming $1.8 Million in Income Tax RefundsRead the Press Release
A Tacoma, Washington man who claimed more than $1.8 million in false income tax refunds pleaded guilty today in U.S. District Court in Tacoma, announced U.S. Attorney Jenny A. Durkan. SEENEY RISTICK, 33, faces up to five years in prison when sentenced by U.S. District Judge Benjamin H. Settle on September 8, 2014.
According to the plea agreement, between 2008 and 2013, RISTICK presented various fraudulent papers and forms to different tax preparation firms in Western Washington and directed the filing of bogus tax returns in his own name and the names of others, to include relatives and friends. To facilitate the scheme, RISTICK created false income journals and falsely claimed self-employment income and various tax credits, all with the intent to defraud the Internal Revenue Service. RISTICK typically approached the tax preparers by himself and presented fraudulent, and sometimes forged, powers of attorney, which purported to allow RISTICK to represent the named tax-filer in financial matters. At other times, he would accompany individuals to the tax preparation firms and assist them in filing the false tax return. RISTICK then charged the person for filing the false tax return between $500 and $1500 for the service he provides.
In all, RISTICK was involved in filing 524 fraudulent federal income tax returns, claiming a total of $1,826,944 in refunds. The U.S. Treasury paid out $1,584,398 before the fraud was uncovered. None of the money has been repaid.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Steven Masada.
T Wo Detained in Federal Custody in Alleged Home Invasion, Hobbs Act Robbery ConspiracyRead the Press Release
PROVIDENCE, R.I. – Allen Prout, 42, of Providence, and Emmett Blyden, 43, of no known address, were ordered detained in federal custody today by U.S. District Court Magistrate Judge Patricia A. Sullivan on allegations that they conspired to commit an armed home invasion in Providence, where they were expecting to find two kilos of heroin and a large amount of cash, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The two men, both previously convicted of felony crimes, were arrested Friday evening moments after they allegedly took possession of firearms to be used in the planned robbery. The firearms, which had been rendered inoperable, were delivered by an individual who was assisting ATF agents.
According to an affidavit in support of a criminal complaint filed with the court, it is alleged that on June 2, 2014, an individual working with ATF agents advised ATF that Prout had contacted him and asked to set up a robbery for him and his crew. It is also alleged that he inquired about the availability of firearms to be used during the robbery. ATF agents instructed the individual to arrange meetings with Prout and his crew to discuss a fictitious scenario involving the robbery of two kilograms of heroin and a large amount of cash from a residence that was being used as storage site by narcotics traffickers.
According to the affidavit, over the next two days two meetings were held and several text messages were exchanged. On June 4, at the first of two meetings, it is alleged that details of the robbery and the availability of firearms were discussed. It is alleged that at that meeting, Prout inquired as to how many individuals would be at the location they planned to rob, stating that he was prepared to “lay them all down.” The meeting was electronically recorded.
At a subsequent meeting on June 6, with both Prout and Blyden in attendance, it is alleged that additional details of the robbery were discussed and the individual assisting ATF provided the firearms, as requested by Prout, to Prout and Blyden. Moments after the two men allegedly took possession of the firearms, ATF agents entered the meeting and took both men into custody. The meeting was electronically recorded.
Prout and Blyden are charged by way of a criminal complaint with conspiracy to commit Hobbs Act robbery; conspiracy to possess with the intent to distribute and distribute more than one kilogram of heroin; possession of a firearm in furtherance of a crime of violence; and being a felon in possession of firearms.
According to information presented to the court, Allen Prout’s felony record includes previous convictions for assault with the intent to commit a felony and larceny. Emmett Blyden’s felony record includes at least three previous drug trafficking convictions.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Milind M. Shah.
The Providence Police Department SWAT Team assisted ATF agents in the arrest of the defendants.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Spa Owner Pleads Guilty as Trial Set to BeginRead the Press Release
McALLEN, Texas - Elva Navarro, 37, of Hidalgo, has entered a guilty plea to violating the U.S. Food, Drug and Cosmetics Act as her federal trial was about to being today, announced United States Attorney Kenneth Magidson.
The investigation into Navarro began in November 2013 after law enforcement discovered she was involved with providing liquid silicone to women to effect the structure and function of their bodies.
Court documents demonstrated that Navarro would administer injections of liquid silicone into individuals who would frequent her facility - Bella Face and Body Spa in McAllen. These injections were not approved by the Food and Drug Administration (FDA). Navarro falsely represented to her customers that they were safe when, in fact, they were not.
During her plea today, Navarro admitted that on Oct. 5, 2013, she used an adulterated device, namely, liquid silicone on a female customer at her spa. Navarro knew that the substance had caused complications on previous occasions, but admitted she intended to mislead the woman by not disclosing that information to her female customer.
The woman later died as a result of the injections.
U.S. District Judge Micaela Alvarez, who accepted the plea, has set sentencing for Aug. 21, 2014. At that time, Navarro faces up to three years in prison and a possible $250,000 fine. She will remain in custody pending that hearing.
The case is being investigated by FDA, Hidalgo County Sheriff's Office and the FBI. Assistant U.S. Attorney Kim Leo is prosecuting.
Six Southern Illinois Residents Added to Methamphetamine Conspiracy IndictmentRead the Press Release
Follow @SDILNewsOn June 3, 2014, James Scott Rankin, 44, and James C. Leming, 53, both of Carbondale, Larry E. Recar, 38, and Amye L. Sandidge, 29, both of Murphysboro, Daniel J.E. Overmyer, 23, of Carterville, and Dawn Unterfer, 44, of Gorham, were charged by superseding indictment with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2010 and May 2014, in Jackson, Williamson, Union, and Franklin Counties. The six co-defendants made their initial appearances in federal court on June 9, 2014. They are currently being held without bond, pending June 12, 2014, detention hearings. Two co-defendants have previously pled guilty and are awaiting sentencing. Five co-defendants have pled not guilty and are awaiting jury trial.
The methamphetamine offense carries a penalty of up to 20 years in prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Sanderson Drug Dealer Pleads GuiltyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Arnold Clayton (42, Sanderson) today pleaded guilty to distribution of cocaine and cocaine base. Clayton faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on July 13, 2012, Clayton sold cocaine, cocaine base and marijuana to a confidential source for $320. Court records reveal that Clayton has two prior federal drug convictions for conspiracy to distribute cocaine and cocaine base (1999) and distribution of cocaine base (2007).
This case was investigated by the Baker County Sheriff’s Office and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Frank Talbot.