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14 July 2014
Shiprock Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Thomas Navaho, 21, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Navaho was arrested on March 4, 2014, on a criminal complaint charging him with assault and subsequently was charged in a two-count indictment with assault resulting in serious bodily injury and assault with a dangerous weapon. According to court filings, Navaho assaulted the victim, another Navajo man, on Feb. 22, 2014, at a location within the Navajo Indian Reservation.
During today’s hearing, Navaho entered a guilty plea to Count 1 of the indictment charging him with assault resulting in serious bodily injury. Navaho admitted that on Feb. 22, 2014, he initiated the assault by choking the victim while he was asleep. Navaho continued his assault on the victim during a physical altercation, during which the victim sustained injuries that required medical attention.
Navaho has been in federal custody since his arrest and remains detained pending his sentencing hearing. At sentencing, Navaho faces a maximum penalty of ten years in prison when he is sentenced, which has yet to be scheduled.
This case was investigated by the Farmington Office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Saraland Man Sentenced to Fifteen Years in Child Pornography CaseRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Michael Dewayne Kimbrell, 52, of Saraland was sentenced to fifteen years in prison for receipt and distribution of child pornography. Kimbrell was sentenced by United States District Judge Charles R. Butler. Following his release, Kimbrell will be supervised by the United States Probation Office for the rest of his life and will be required to register as a sex offender.
Kimbrell pled guilty to the charge in November, 2013. He has been in custody since his arrest in June of 2013. The investigation revealed that Kimbrell had actively sought out and traded child pornography with other internet users, as well as downloaded images and videos of child pornography. Investigators recovered thousands of computer images, hundreds of videos, and more than 4,000 hard copy printouts from Kimbrell of victims as young as two years old. During a polygraph interview, Kimbrell initially denied ever having inappropriate contact with a child, but after being confronted with the results of the polygraph, ultimately admitted that when he was younger, he lured a toddler under a bridge, removed her diaper, and molested her.
The case was investigated by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorney Sean P. Costello as part of the Department of Justice’s Project Safe Childhood initiative, a unified and comprehensive strategy to combat child exploitation. The goal of Project Safe Childhood is to reduce the incidence of sexual exploitation of children. For more information, please visit http://www.justice.gov/psc/
Rothstein Associate Charged with Conspiracy to Commit Wire FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of charges against Frank Preve, 70, of Coral Springs, for conspiring to commit crimes associated with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
The information, which was filed earlier today, charges Preve with conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 371. If convicted, the defendant faces a maximum statutory sentence of up to five years in prison.
According to the information, Preve worked for a number of companies, referred to as “the Banyon Group,” which solicited lenders and investors into the confidential settlement business being offered by Rothstein. The information further charges that, from in or about July 2009 through October 2009, Preve defrauded investors by not disclosing that Rothstein had failed to make payments that were due to the Banyon Group, that Rothstein had frozen certain bank accounts that were holding investor funds, that certain paperwork was not being prepared, and that verification of the investments was not taking place, all in violation of a private placement memorandum which had been circulated to potential investors by the Banyon Group. The information further charges that, through these material misrepresentations and omissions, Preve caused more than $20 million to be paid by investors to the Banyon Group.
Mr. Ferrer commended the investigative efforts of the IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Rapid City Man Pleads Not Guilty to Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Bradley Makes Room For Them, age 29, was indicted on April 22, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 7, 2014, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Makes Room For Them failing to register as a convicted sex offender between November 22, 2013, and April 22, 2014, in South Dakota.
The charge is merely an accusation and Makes Room For Them is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Makes Room For Them was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for September 9, 2014.
Quincy Man Charged with $3.4 Million Forex Investment SchemeRead the Press Release
Boston – A Quincy man was charged today with engaging in a scheme to defraud persons seeking to invest in the foreign currency exchange (“forex”) market.
Marcellus Lopes Lee, 46, was charged in an indictment unsealed today with 16 counts of wire fraud and six counts of monetary transactions in property derived from specified unlawful activity.
According to the Indictment, Lee was the owner and operator of Taurus Global Markets, Ltd. (TGM), an entity which he held out as being a company that executed transactions in the forex market on behalf of investors. The indictment alleges that Lee induced prospective investors to wire funds to TGM's Belize bank account for the purpose of trading in the highly-risky forex market when, in fact, Lee never intended to use the funds for that purpose, but instead converted investors’ funds to Lee 's own personal and other uses. It is alleged that Lee held out TGM as having staff, management and its computer network "distributed all across the world," when in fact TGM had no employees and Lee operated it primarily from his residence in Massachusetts. According to the indictment, Lee caused investors to be sent documents reflecting that their money was invested in the forex market, and that all or most of the investors' funds were lost in forex trading when, in fact, no actual forex transactions had occurred on behalf of investors, and Lee instead converted the money to his own use. The indictment alleges that Lee defrauded at least 65 individuals of more than $3.4 million through this scheme.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 on the charge of wire fraud, and on the charge of illegal monetary transactions, a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pilot Flying J Enters into Criminal Enforcement AgreementRead the Press Release
Requires Full Restitution to Fraud Victims, Payment of $92 Million Monetary Penalty,and Complete Cooperation with Ongoing Federal Investigation
KNOXVILLE, Tenn. – Pilot Travel Centers LLC, d/b/a Pilot Flying J (Pilot), has entered into a Criminal Enforcement Agreement with the United States for the purpose of resolving the company’s criminal liability for its employees’ fraudulent conduct in deceptively withholding diesel fuel price discounts from hundreds of customers.
As stated in the attached agreement, Pilot has accepted legal responsibility for the criminal conduct of its employees, which caused more than $56 million in loss to its customers, and agreed to pay full restitution to every victim of the fraud. Pilot further acknowledged the gravity of its employees’ criminal wrongdoing by agreeing to pay the United States a $92 million monetary penalty – an amount within the fine range recommended by the U.S. Sentencing Guidelines. The agreement also expressly states that it provides no protection from prosecution to any individual, and moreover, imposes a continuing obligation on Pilot to provide complete cooperation with the ongoing federal investigation of current and former Pilot employees relating to fraudulent conduct involving the sale of diesel fuel. Pilot must also periodically report to the United States what it has done to ensure that a system of internal accounting controls and other compliance procedures have been established to prevent fraudulent conduct from occurring again in the sale of diesel fuel. In the event Pilot materially breaches its obligations under the agreement, Pilot has agreed that the United States may file the criminal information, attached to the agreement, and will not contest the allegations in that charging document.
“The terms of this agreement, including the significant monetary penalty and the very serious consequences if Pilot fails to comply, demonstrate quite clearly that no corporation, no matter how big, influential, or wealthy, is above the law,” said U.S. Attorney Bill Killian. “In addition, the company’s agreement to fully cooperate with the United States, including its obligation to identify its employees’ criminal conduct, will assist the ongoing federal investigation. The agreement ensures that Pilot’s extensive remediation efforts will continue until all trucking company victims have received full restitution and until Pilot has demonstrated to the United States that it has implemented sufficient internal controls to prevent this kind of fraudulent conduct from ever occurring again,” continued Killian.
Following a lengthy joint-investigation by the FBI and the IRS-Criminal Investigation into allegations of fraudulent conduct at Pilot, on April 15, 2013, search warrants were executed at multiple locations, including Pilot’s headquarters in Knoxville. Since that time, 10 Pilot employees, including those with supervisory responsibilities, agreed to cooperate with the ongoing federal investigation and entered guilty pleas to mail and wire fraud charges arising from their involvement in the fraudulent reduction of diesel fuel price discounts owed to Pilot customers.
In the agreement, Pilot confirmed that fraudulent conduct involving diesel fuel price discounts was prevalent within its Direct Sales group and carried out with the knowledge and participation of employees responsible for the operation and oversight of Direct Sales. Pilot further confirmed that supervisory employees encouraged participation in discount fraud for the company’s benefit. For example, during a November 19 and 20, 2012, annual sales training meeting at Pilot’s headquarters in Knoxville, a Pilot supervisor encouraged and taught Direct Sales employees how to deceptively reduce the rebates paid to some customers for the purpose of making targeted accounts more profitable for the company.
Pilot also confirmed that the discount fraud was executed generally in one of two ways: either by fraudulently reducing the amount of monthly rebate amounts to targeted customers or by deceptively reducing the off-invoice discounts of targeted customers. Pilot acknowledged that its employees emailed spreadsheets among each other that documented their fraudulent reductions, and that in some cases, its employees fabricated “back up” documentation sent to customers to justify fraudulently reduced rebate or discount amounts.
Additionally, Pilot confirmed that in February 2013 certain Pilot employees involved with Direct Sales expressed an intent to expand the scheme to defraud by having Direct Sales personnel identify and target Pilot’s off-invoice customers that were considered to be too unsophisticated to carefully monitor diesel pricing data in conjunction with their periodically received fuel invoices. As set forth in the agreement, certain Pilot employees involved with the operation and oversight of Direct Sales referred to this new aspect of the fraud as “cost plus B plan” – named after having two tiers of cost pricing for different types of customers: tier “A” and tier “B.” Pilot further acknowledged that certain employees involved with the operation and oversight of Direct Sales planned not to inform the targeted unsophisticated customers of their placement in the higher-priced tier, and these employees occasionally referred to these targeted customers as “Customer Bs.”
The FBI’s and IRS-Criminal Investigation’s joint investigation is ongoing. Assistant U.S. Attorneys F. M. (Trey) Hamilton III and David P. Lewen, Jr. are representing the United States.
(Download Agreement )
Omaha Man Sentenced to 30 Years Imprisonment on Firearm ChargesRead the Press Release
United States Attorney Deborah R. Gilg announced that Ranelle Perry of Omaha was sentenced on July 14, 2014, to 30 years in prison by United States District Judge Laurie Smith Camp. Perry had previously pled guilty to using a firearm during, and in relation to, a drug trafficking crime.
In October 2013, Perry was arrested in a High Intensity Drug Trafficking Area Program (HIDTA) sponsored law enforcement initiative that targeted gang violence in Omaha. During the joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Omaha Police Department, Perry sold two rifles, two handguns, and 8 grams of crack cocaine to a felon who was working with law enforcement as a cooperating witness.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Omaha Police Department.
Mt. Vernon Man Indicted on Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsRobert A. Tate, 30, of Mt. Vernon, IL, was indicted on July 8, 2014, on methamphetamine related charges in a two count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that from February 2013, until on or about June 2014, in Jefferson County, Tate knowingly conspired to manufacture methamphetamine. Count 2 charges that on March 31, 2014, in Jefferson County, Tate knowingly and intentionally distributed methamphetamine.
With respect to each Count, Tate faces up to 20 years imprisonment, up to $1,000,000 fine, and supervised release of at least 3 years.
An Indictment is a formal charge against a defendant. 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 investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Middlesex County, N.J., Woman Pleads Guilty to Sexually Exploiting A MinorRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, woman admitted today to sexually exploiting a minor female by coercing the girl to live stream sexually explicit acts via the Internet, U.S. Attorney Paul J. Fishman announced.
Jane Dornick, 53, of South Plainfield, New Jersey, pleaded guilty, prior to the selection of a jury, to Count One of an indictment charging her with three counts of sexual exploitation of a child. The remaining counts will be dismissed at sentencing. Dornick entered her plea before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and statements made in court:
On August 16, 2010, Dornick coerced and used “Victim 1,” a minor female, to perform sexually explicit acts and live stream them over the Internet to Michael Grennier, 51, who watched remotely via his computer in his home in South Plainfield.
The charge of sexual exploitation of a child is punishable by a mandatory minimum sentence of 15 years in prison and a maximum penalty of 30 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 7, 2014.
Grennier pleaded guilty before Judge Wolfson to a separate charge of the sexual exploitation of a minor on Dec. 16, 2013, and is scheduled to be sentenced on August 20, 2014.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s plea. Fishman also thanked the South Plainfield Borough Police Department, under the direction of Chief of Police James Parker, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew Carey, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Fabiana Pierre-Louis and Harvey Bartle, Attorney-in-Charge of the U.S. Attorney’s Trenton Office.
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Defense counsel: Bruce Throckmorton Esq., Trenton
Dornick, Jane Indictment
Men Plead Guilty to Lying About Roles in Arch Coal Kickback SchemeRead the Press Release
CHARLESTON, W. Va. – Ronald Barnette, 53, of Holden, West Virginia, and Gary Griffith, 62, of Oceana, West Virginia, both pleaded guilty today to making a materially false statement in a federal matter, U.S. Attorney Booth Goodwin announced. Barnette and Griffith now each face up to five years in prison. Barnette admitted to lying about paying kickbacks to the general manager of Arch Coal’s Mountain Laurel mining complex, located in Logan County, while Griffith admitted to lying about receiving kickbacks as an employee of Arch Coal.
Barnette owned and operated Mining Repair Specialist, Inc., which did rebuild work on miners and bolters at the Mountain Laurel complex for several years. From 2009 through sometime in 2010, Barnette admitted that he paid approximately $300,000 in kickbacks to a high level Arch employee, who is identified in other court documents as mine general manager David Runyon, so that Runyon would continue hiring Barnette’s company to do rebuild work at the mine. Barnette further admitted that he lied to agents regarding paying cash kickbacks. When asked by Internal Revenue Service agents, along with investigators from the West Virginia State Police (WVSP), whether Barnette had ever paid cash kickbacks to Runyon, Barnette falsely stated that he did not.
Barnette has agreed to forfeit $400,000 to the Federal Bureau of Investigation (FBI) in connection with the kickback scheme.
Griffith, the former maintenance manager at Mountain Laurel, admitted that since 2002 he received cash kickbacks in the amount of at least $250,000 on behalf of himself and Runyon from an individual associated with the North American Rebuild Company, Inc. (NARCO). NARCO provided shuttle cars to Arch Coal’s Ben Creek mine and the Mountain Laurel mining complex. Griffith admitted that an individual, on behalf of NARCO, paid kickbacks to Griffith and Runyon for each shuttle car ordered at the mines. When Griffith was asked by federal agents about receiving kickbacks either personally or on behalf of Runyon, he denied it.
Griffith has agreed to pay $250,000 in restitution to Arch Coal, Inc., in connection with the kickback scheme.
Barnette and Griffith entered their guilty pleas before United States District Judge Thomas E. Johnston. Both are scheduled to be sentenced on October 20, 2014, in Charleston.
Today’s guilty pleas stem from an investigation being conducted by the FBI, IRS Criminal Investigation, United States Postal Inspection Service, and the WVSP. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution.
Mayfield Heights Man Faces Additional Charges of Tax Violations at Daycare Centers He OperatedRead the Press Release
New tax charges were filed against a Mayfield Heights man who earlier this year pleaded guilty to his role in defrauding a Cleveland Heights charter school out of more than $400,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Joel B. Friedman, 66, is accused of withholding more than $293,000 in payroll taxes from employees at four daycare centers Friedman operated. But he kept the money for himself instead of paying it over to the IRS, according to a supplemental criminal information.
Friedman operated four daycare centers – A Child’s View, Bass Lake Child Care of Kirtland, Bass Lake Child Care of Chardon (also known as Barney Enterprises) and Bass Lake Child Care of Mentor (also known as Bryce Road Enterprises).
In that position, he was responsible for the daycare centers’ business and financial operations, including payroll and employment tax operations.
Between 2008 and 2011, Friedman deliberately failed to pay over to the IRS approximately $293,248 in taxes that were withheld from employees, according to the criminal information.
Friedman pleaded guilty earlier this year to five counts of mail fraud, two counts of wire fraud and two counts of conspiracy to commit money laundering for activities that took place at Greater Heights Academy, a charter school in Cleveland Heights.
Friedman served as chairman of the school and was part of a group that conspired to submit and approve more than $400,000 worth of fraudulent invoices, with a portion of the payments then being returned to Friedman, according to court documents.
“Not only did Friedman violate the trust of taxpayers and the students of Greater Heights Academy, he violated the trust of his employees by failing to pay over their withheld payroll taxes,” Enstrom said. “The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes.”
This case is being prosecuted by Assistant United States Attorney Robert J. Patton. The case was investigated by the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Man Pleads Guilty to Bank Robbery in Franklin CountyRead the Press Release
KANSAS CITY, KAN. - A Kansas man pleaded guilty Monday to helping to rob a Franklin County Bank, U.S. Attorney Barr Grissom said.
Robert Martin, 39, Quenemo, Kan., pleaded guilty in U.S. District Court in Kansas City, Kan., to one count of bank robbery. In his plea, he admitted he took part in the March 19, 2014, robbery of Goppert State Service Bank at 118 East Franklin Street in Pomona, Kan. He said he drove to the bank with co-defendant Caleb Jeffcoat. He gave Jeffcoat a mask and BB gun that had been altered to make it look more like a real gun. Jeffcoat entered the bank and robbed a teller.
Investigators used video surveillance from a Dollar General store and a gas station in Pomona to identify the robber.
Co-defendants are: Caleb Jeffcoat, 26, Quenemo, Kan., who is awaiting sentencing.
Christel Collins, 37, Quenemo, Kan., who is awaiting trial.Sentencing will be set for a later date. Martin faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commended the Franklin County Sheriff’s Office, the Ottawa Police Department, the Kansas Bureau of Investigation, the FBI, the Franklin County Attorney’s Office and Assistant U.S. Attorney Scott Rask for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Licensed Pharmacist Convicted in “Pill Mill” Operation Is Sentenced to 60 Months in Federal PrisonRead the Press Release
DALLAS — A licensed pharmacist, who along with four co-defendants was convicted at trial earlier this year for their roles in a “pill mill” operation in Dallas, was sentenced this afternoon, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lisa L. Hollier, 44, of Sunnyvale, Texas, was sentenced by U.S. District Judge Barbara M. G Lynn to 60 months in federal prison. She has been in custody since her conviction in February 2014.
Hollier owned and operated Urban Independent Pharmacy (UIP), located at 6300 Samuell Blvd., in Dallas. The jury convicted Hollier on one count of conspiracy to distribute, unlawfully, a controlled substance.
The four co-defendants who were convicted at trial on the same offense, Dallas residents Joesephis Austin, 60, Patricia A. Bryant, 59, and Walter R. Hudspeth, 62, along with Flower Mound, Texas, resident, Jose L. Martinez, 54, are scheduled to be sentenced on September 17, 2014. Each faces a maximum statutory penalty of 10 years in federal prison and a $500,000 fine.
Twelve other defendants charged in the case have pleaded guilty to their respective roles, and they have received sentences ranging from probation to 72 months in federal prison. Fourteen “dealers” were indicted and convicted in the case.
Defendants Austin, Bryant and Hudspeth operated as dealers who recruited “patients,” often from homeless shelters, and drove them in groups to Padron Wellness Clinic (PWC), located at 1000 Emerald Isle Drive in Dallas. Co-conspirators physician Nicolas Alfonso Padron, 54, of Garland, Texas, and Martinez opened PWC in the fall of 2010. PWC operated not as a legitimate medical facility, but as a place to unlawfully obtain controlled substances, such as hydrocodone.
Dr. Padron and Martinez, the PWC’s business manager, charged cash only for office visits in which Dr. Padron would do little to no physical examination and prescribe a “cocktail” of controlled substances, including hydrocodone, a Schedule II controlled substance and alprazolam, a Schedule IV controlled substance. Generally, they charged $250 for a new patient office visit and $185 for an established patient visit.
Typically, the dealers set appointments on PWC’s schedule and brought in multiple patients at a time. The dealers escorted the patients into the clinic, coordinated with Martinez and paid cash for the patients they brought. Dr. Padron would sometimes see two or more patients at a time in one exam room. Patient visits were short in duration and patients normally left with a 30-day prescription of 120 pills of hydrocodone and 30-90 units of alprazolam. Most of the patients were diagnosed by Dr. Padron with lower back pain and anxiety, without regard of their true condition; thus these prescriptions were medically unnecessary and outside the scope of professional practice.
Dr. Padron, who pleaded guilty in September 2013 to his role in this conspiracy and testified at trial, is also scheduled to be sentenced on September 17, 2014. He, too, faces a maximum statutory penalty of 10 years in federal prison and a $500,000 fine on this conviction.
Hollier and Dr. Padron coordinated a procedure for PWC’s staff to fax prescriptions for the controlled substances to UIP. Once Dr. Padron issued the prescriptions, these dealers would drive the patients to UIP to get the prescription filled. Typically, they did this in groups and Hollier had large amounts of hydrocodone and alprazolam in pre-filled bottles ready each day to handle the large groups of dealers and their patients. These dealers furnished the money to pay for the narcotics. Sometimes they paid Hollier directly for the prescriptions. After Hollier filled the prescriptions, the patients would give the dealers the pills that they would sell on the street for a profit.
In a separate and unrelated case, Dr. Padron pleaded guilty in September 2013 to one count of conspiracy to commit health care fraud stemming from his role as medical director of A Medical House Calls, a physician house-call company. Dr. Padron was sentenced in March 2014 to 57 months in federal prison, and he was ordered to pay nearly $9.5 million in restitution to the Centers for Medicare and Medicaid Services (CMS).
The Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit, investigated. Assistant U.S. Attorneys Kate Pfeifle and J. Nicholas Bunch are prosecuting.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for almost $6 billion. In addition, HHS’s CMS, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT Strike Force, see: www.stopmedicarefraud.gov
Justice Department, Federal and State Partners Secure Record $7 Billion Global Settlement with Citigroup for Misleading Investors About Securities Containing Toxic MortgagesRead the Press Release
The Justice Department, along with federal and state partners, today announced a $7 billion settlement with Citigroup Inc. to resolve federal and state civil claims related to Citigroup’s conduct in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) prior to Jan. 1, 2009. The resolution includes a $4 billion civil penalty – the largest penalty to date under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). As part of the settlement, Citigroup acknowledged it made serious misrepresentations to the public – including the investing public – about the mortgage loans it securitized in RMBS. The resolution also requires Citigroup to provide relief to underwater homeowners, distressed borrowers and affected communities through a variety of means including financing affordable rental housing developments for low-income families in high-cost areas. The settlement does not absolve Citigroup or its employees from facing any possible criminal charges.
This settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group, which has recovered $20 billion to date for American consumers and investors.
“This historic penalty is appropriate given the strength of the evidence of the wrongdoing committed by Citi,” said Attorney General Eric Holder. “The bank's activities contributed mightily to the financial crisis that devastated our economy in 2008. Taken together, we believe the size and scope of this resolution goes beyond what could be considered the mere cost of doing business. Citi is not the first financial institution to be held accountable by this Justice Department, and it will certainly not be the last.”
The settlement includes an agreed upon statement of facts that describes how Citigroup made representations to RMBS investors about the quality of the mortgage loans it securitized and sold to investors. Contrary to those representations, Citigroup securitized and sold RMBS with underlying mortgage loans that it knew had material defects. As the statement of facts explains, on a number of occasions, Citigroup employees learned that significant percentages of the mortgage loans reviewed in due diligence had material defects. In one instance, a Citigroup trader stated in an internal email that he “went through the Diligence Reports and think[s] [they] should start praying . . . [he] would not be surprised if half of these loans went down. . . It’s amazing that some of these loans were closed at all.” Citigroup nevertheless securitized the loan pools containing defective loans and sold the resulting RMBS to investors for billions of dollars. This conduct, along with similar conduct by other banks that bundled defective and toxic loans into securities and misled investors who purchased those securities, contributed to the financial crisis.
“Today, we hold Citi accountable for its contributing role in creating the financial crisis, not only by demanding the largest civil penalty in history, but also by requiring innovative consumer relief that will help rectify the harm caused by Citi's conduct,” said Associate Attorney General Tony West. “In addition to the principal reductions and loan modifications we've built into previous resolutions, this consumer relief menu includes new measures such as $200 million in typically hard-to-obtain financing that will facilitate the construction of affordable rental housing, bringing relief to families pushed into the rental market in the wake of the financial crisis.”
Of the $7 billion resolution, $4.5 billion will be paid to settle federal and state civil claims by various entities related to RMBS: Citigroup will pay $4 billion as a civil penalty to settle the Justice Department claims under FIRREA, $208.25 million to settle federal and state securities claims by the Federal Deposit Insurance Corporation (FDIC), $102.7 million to settle claims by the state of California, $92 million to settle claims by the state of New York, $44 million to settle claims by the state of Illinois, $45.7 million to settle claims by the Commonwealth of Massachusetts, and $7.35 to settle claims by the state of Delaware.
Citigroup will pay out the remaining $2.5 billion in the form of relief to aid consumers harmed by the unlawful conduct of Citigroup. That relief will take various forms, including loan modification for underwater homeowners, refinancing for distressed borrowers, down payment and closing cost assistance to homebuyers, donations to organizations assisting communities in redevelopment and affordable rental housing for low-income families in high-cost areas. An independent monitor will be appointed to determine whether Citigroup is satisfying its obligations. If Citigroup fails to live up to its agreement by the end of 2018, it must pay liquidated damages in the amount of the shortfall to NeighborWorks America, a non-profit organization and leader in providing affordable housing and facilitating community development.
The U.S. Attorney’s Offices for the Eastern District of New York and the District of Colorado conducted investigations into Citigroup’s practices related to the sale and issuance of RMBS between 2006 and 2007.
“The strength of our financial markets depends on the truth of the representations that banks provide to investors and the public every day,” said U.S. Attorney John Walsh for the District of Colorado, Co-Chair of the RMBS Working Group. “Today's $7 billion settlement is a major step toward restoring public confidence in those markets. Due to the tireless work by the Department of Justice, Citigroup is being forced to take responsibility for its home mortgage securitization misconduct in the years leading up to the financial crisis. As important a step as this settlement is, however, the work of the RMBS working group is far from done, we will continue to pursue our investigations and cases vigorously because many other banks have not yet taken responsibility for their misconduct in packaging and selling RMBS securities.”
“After nearly 50 subpoenas to Citigroup, Trustees, Servicers, Due Diligence providers and their employees, and after collecting nearly 25 million documents relating to every residential mortgage backed security issued or underwritten by Citigroup in 2006 and 2007, our teams found that the misconduct in Citigroup’s deals devastated the nation and the world’s economies, touching everyone,” said U.S. Attorney of the Eastern District of New York Loretta Lynch. “The investors in Citigroup RMBS included federally-insured financial institutions, as well as a host of states, cities, public and union pension and benefit funds, universities, religious charities, and hospitals, among others. These are our neighbors in Colorado, New York and around the country, hard-working people who saved and put away for retirement, only to see their savings decimated.”
This settlement resolves civil claims against Citigroup arising out of certain securities packaged, securitized, structured, marketed, and sold by Citigroup. The agreement does not release individuals from civil charges, nor does it release Citigroup or any individuals from potential criminal prosecution. In addition, as part of the settlement, Citigroup has pledged to fully cooperate in investigations related to the conduct covered by the agreement.
Michael Stephens, Acting Inspector General for the Federal Housing Finance Agency said, “Citigroup securitized billions of dollars of defective mortgages, after which investors suffered enormous losses by purchasing RMBS from Citi not knowing about those defects. Today’s settlement is another significant step by FHFA-OIG and its law enforcement partners to hold accountable those who committed acts of fraud and deceit in the lead up to the financial crisis, and is a necessary step toward reviving a sound RMBS market that is crucial to the housing industry and the American economy. We are proud to have worked with the Department of Justice, the U.S. Attorneys’ Offices in the Eastern District of New York and the District of Colorado. They have been great partners and we look forward to our continued work together.”
The underlying investigation was led by Assistant U.S. Attorneys Richard K. Hayes, Kevin Traskos, Lila Bateman, John Vagelatos, J. Chris Larson and Edward K. Newman, with the support of agents from the Office of the Inspector General for the Federal Housing Finance Agency, in conjunction with the President’s Financial Fraud Enforcement Task Force’s RMBS Working Group.
The RMBS Working Group is a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis. The RMBS Working Group brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, 10 U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than 10 state Attorneys General offices around the country.
The RMBS Working Group is led by its Director Geoffrey Graber and its five co-chairs: Assistant Attorney General for the Civil Division Stuart Delery, Assistant Attorney General for the Criminal Division Leslie Caldwell, Director of the SEC’s Division of Enforcement Andrew Ceresney, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric Schneiderman.
Learn more about the RMBS Working Group and the Financial Fraud Enforcement Task Force at: www.stopfraud.gov
Related Materials:
SOF
Settlement Agreement
Appendix 1
Annex 2
Annex 3Justice Department, Federal and State Partners Secure Record $7 Billion Global Settlement with Citigroup for Misleading Investors About Securities Containing Toxic MortgagesRead the Press Release
WASHINGTON – The Justice Department, along with federal and state partners, today announced a $7 billion settlement with Citigroup Inc. to resolve federal and state civil claims related to Citigroup’s conduct in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) prior to Jan. 1, 2009. The resolution includes a $4 billion civil penalty – the largest penalty to date under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). As part of the settlement, Citigroup acknowledged it made serious misrepresentations to the public – including the investing public – about the mortgage loans it securitized in RMBS. The resolution also requires Citigroup to provide relief to underwater homeowners, distressed borrowers and affected communities through a variety of means including financing affordable rental housing developments for low-income families in high-cost areas. The settlement does not absolve Citigroup or its employees from facing any possible criminal charges.
This settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group, which has recovered $20 billion to date for American consumers and investors.
“This historic penalty is appropriate given the strength of the evidence of the wrongdoing committed by Citi,” said Attorney General Eric Holder. “The bank's activities contributed mightily to the financial crisis that devastated our economy in 2008. Taken together, we believe the size and scope of this resolution goes beyond what could be considered the mere cost of doing business. Citi is not the first financial institution to be held accountable by this Justice Department, and it will certainly not be the last.”
The settlement includes an agreed upon statement of facts that describes how Citigroup made representations to RMBS investors about the quality of the mortgage loans it securitized and sold to investors. Contrary to those representations, Citigroup securitized and sold RMBS with underlying mortgage loans that it knew had material defects. As the statement of facts explains, on a number of occasions, Citigroup employees learned that significant percentages of the mortgage loans reviewed in due diligence had material defects. In one instance, a Citigroup trader stated in an internal email that he “went through the Diligence Reports and think[s] [they] should start praying . . . [he] would not be surprised if half of these loans went down. . . It’s amazing that some of these loans were closed at all.” Citigroup nevertheless securitized the loan pools containing defective loans and sold the resulting RMBS to investors for billions of dollars. This conduct, along with similar conduct by other banks that bundled defective and toxic loans into securities and misled investors who purchased those securities, contributed to the financial crisis.
“Today, we hold Citi accountable for its contributing role in creating the financial crisis, not only by demanding the largest civil penalty in history, but also by requiring innovative consumer relief that will help rectify the harm caused by Citi's conduct,” said Associate Attorney General Tony West. “In addition to the principal reductions and loan modifications we've built into previous resolutions, this consumer relief menu includes new measures such as $200 million in typically hard-to-obtain financing that will facilitate the construction of affordable rental housing, bringing relief to families pushed into the rental market in the wake of the financial crisis.”
Of the $7 billion resolution, $4.5 billion will be paid to settle federal and state civil claims by various entities related to RMBS: Citigroup will pay $4 billion as a civil penalty to settle the Justice Department claims under FIRREA, $208.25 million to settle federal and state securities claims by the Federal Deposit Insurance Corporation (FDIC), $102.7 million to settle claims by the state of California, $92 million to settle claims by the state of New York, $44 million to settle claims by the state of Illinois, $45.7 million to settle claims by the Commonwealth of Massachusetts, and $7.35 to settle claims by the state of Delaware.
Citigroup will pay out the remaining $2.5 billion in the form of relief to aid consumers harmed by the unlawful conduct of Citigroup. That relief will take various forms, including loan modification for underwater homeowners, refinancing for distressed borrowers, down payment and closing cost assistance to homebuyers, donations to organizations assisting communities in redevelopment and affordable rental housing for low-income families in high-cost areas. An independent monitor will be appointed to determine whether Citigroup is satisfying its obligations. If Citigroup fails to live up to its agreement by the end of 2018, it must pay liquidated damages in the amount of the shortfall to NeighborWorks America, a non-profit organization and leader in providing affordable housing and facilitating community development.
The U.S. Attorney’s Offices for the Eastern District of New York and the District of Colorado conducted investigations into Citigroup’s practices related to the sale and issuance of RMBS between 2006 and 2007.
“The strength of our financial markets depends on the truth of the representations that banks provide to investors and the public every day,” said U.S. Attorney John Walsh for the District of Colorado, Co-Chair of the RMBS Working Group. “Today's $7 billion settlement is a major step toward restoring public confidence in those markets. Due to the tireless work by the Department of Justice, Citigroup is being forced to take responsibility for its home mortgage securitization misconduct in the years leading up to the financial crisis. As important a step as this settlement is, however, the work of the RMBS working group is far from done, we will continue to pursue our investigations and cases vigorously because many other banks have not yet taken responsibility for their misconduct in packaging and selling RMBS securities.”
“After nearly 50 subpoenas to Citigroup, Trustees, Servicers, Due Diligence providers and their employees, and after collecting nearly 25 million documents relating to every residential mortgage backed security issued or underwritten by Citigroup in 2006 and 2007, our teams found that the misconduct in Citigroup’s deals devastated the nation and the world’s economies, touching everyone,” said U.S. Attorney of the Eastern District of New York Loretta Lynch. “The investors in Citigroup RMBS included federally-insured financial institutions, as well as a host of states, cities, public and union pension and benefit funds, universities, religious charities, and hospitals, among others. These are our neighbors in Colorado, New York and around the country, hard-working people who saved and put away for retirement, only to see their savings decimated.”
This settlement resolves civil claims against Citigroup arising out of certain securities packaged, securitized, structured, marketed, and sold by Citigroup. The agreement does not release individuals from civil charges, nor does it release Citigroup or any individuals from potential criminal prosecution. In addition, as part of the settlement, Citigroup has pledged to fully cooperate in investigations related to the conduct covered by the agreement.
Michael Stephens, Acting Inspector General for the Federal Housing Finance Agency said, “Citigroup securitized billions of dollars of defective mortgages, after which investors suffered enormous losses by purchasing RMBS from Citi not knowing about those defects. Today’s settlement is another significant step by FHFA-OIG and its law enforcement partners to hold accountable those who committed acts of fraud and deceit in the lead up to the financial crisis, and is a necessary step toward reviving a sound RMBS market that is crucial to the housing industry and the American economy. We are proud to have worked with the Department of Justice, the U.S. Attorneys’ Offices in the Eastern District of New York and the District of Colorado. They have been great partners and we look forward to our continued work together.”
The underlying investigation was led by Assistant U.S. Attorneys Richard K. Hayes, Kevin Traskos, Lila Bateman, John Vagelatos, J. Chris Larson and Edward K. Newman, with the support of agents from the Office of the Inspector General for the Federal Housing Finance Agency, in conjunction with the President’s Financial Fraud Enforcement Task Force’s RMBS Working Group.
The RMBS Working Group is a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis. The RMBS Working Group brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, 10 U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than 10 state Attorneys General offices around the country.
The RMBS Working Group is led by its Director Geoffrey Graber and its five co-chairs: Assistant Attorney General for the Civil Division Stuart Delery, Assistant Attorney General for the Criminal Division Leslie Caldwell, Director of the SEC’s Division of Enforcement Andrew Ceresney, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric Schneiderman.
Learn more about the RMBS Working Group and the Financial Fraud Enforcement Task Force at: www.stopfraud.gov.
Citi - Settlement Agreement SIGNED
Citi - SOF FINAL
Citi - Appendix 1 SOF
Citi - Annex 2 (Consumer Relief) FINAL (2)
Citi - Annex 3 (Deal List) FINALJoplin Man Pleads Guilty to Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man pleaded guilty in federal court today for fraudulently receiving federal disaster benefits following the tornado that struck the city of Joplin on May 22, 2011, killing 158 people and causing more than $2.9 billion in damage.
Fred Lewis Pickett, Jr., 34, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of disaster fraud.
By pleading guilty today, Pickett admitted that he fraudulently received disaster benefits by claiming that he relocated from one primary residence to another primary residence in Joplin because of damage from the tornado. To substantiate his claim of relocation, Pickett submitted several leases and rent receipts bearing the signature of his purported landlord, Dustin Showalter, 36, of Joplin.
On the basis of Pickett’s representations, the Federal Emergency Management Agency (FEMA) authorized four rental assistance payments totaling $5,147. However, Pickett’s claim was false. Pickett did not relocate and Showalter was not his landlord. In fact, Showalter had been banned from the residence, which had been occupied by Showalter’s mother before she was relocated to a nursing home. Pickett and Showalter fabricated the documents Pickett used to substantiate his claim.
Showalter has pleaded guilty, in a separate case, to one count of disaster fraud. Showalter admitted that he committed disaster fraud by making false statements to FEMA in an application for disaster benefits. Showalter fraudulently received disaster benefits by claiming to have lived at a residence in Joplin at the time of the May 22, 2011, tornado, when in fact he did not live at that residence. On the basis of his application to FEMA, Showalter received $938 to which he was not entitled.
Under federal statutes, Pickett and Showalter are each subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.Inver Grove Heights Man Indicted for Trafficking in Counterfeit Sports JerseysRead the Press Release
MINNEAPOLIS—The United States Attorney’s Office announced today that a federal grand jury recently indicted a man on charges of conspiracy and trafficking in counterfeit goods. Brian Todd Gore, 45, of Inver Grove Heights, made his initial appearance on July 11, 2014 before U.S. Magistrate Judge Jeanne J. Graham.
The indictment alleges that from November 2009 through September 2012, Gore conspired with other individuals to traffic in goods, specifically counterfeit sports jerseys, imported from China. As part of the alleged conspiracy, Gore would order the counterfeit sports jerseys from suppliers in China, have them delivered to him in the United States, and then sell them to Co- conspirator A with the knowledge that the counterfeit jerseys would be sold to the public.
During this time, Co-conspirator A possessed hundreds of counterfeit sportswear items in his retail store in Roseville, Minnesota, some of which he had purchased from the defendant. The indictment further alleges that the defendant transported hundreds of counterfeit jerseys in his van and stored counterfeit jerseys at his residence in Inver Grove Heights, Minnesota and in a leased storage unit in Des Moines, Iowa.
In February 2010, the defendant traveled to Miami, Florida, the location of the 2010 NFL Super Bowl, to sell counterfeit NFL jerseys. During that time, the defendant allegedly possessed approximately 383 counterfeit NFL jerseys and two DHL shipping receipts showing packages sent from China to Fort Lauderdale, Florida. The defendant and Co-conspirator B also allegedly possessed approximately 70 counterfeit NFL jerseys at an apartment where they were temporarily residing in Fort Lauderdale.
United States Attorney Andrew Luger praised the work of federal agents from Homeland Security Investigations, stating “I am pleased that HSI is pursuing these counterfeit cases. We will prosecute those who traffic in counterfeit goods aggressively.”
“Trafficking in counterfeit goods is not a victimless crime,” said Special Agent in Charge J. Michael Netherland of HSI St. Paul. “Buying these items may appear at first to be a bargain, but when we take into account how the money it generates is often tied to organized crime or worse, we see that this 'victimless crime' harms us all in the long run."
If convicted, Gore faces a potential maximum penalty of 10 years in prison and a $2 million fine. All sentences are ultimately determined by a federal district court judge.
This case is being investigated by Homeland Security Investigations (“HSI”) and the Coalition to Advance the Protection of Sports Logos (“CAPS”). It is being prosecuted by Assistant United States Attorney Sarah E. Hudleston.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Indiana Woman Convicted of $3 Million FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Linda Deavers (61, Fishers, Indiana) guilty of 10 counts of wire fraud and 5 counts of money laundering. Deavers faces a maximum penalty of 20 years in federal prison for each count of wire fraud and 10 years in federal prison for each count of money laundering.
Deavers was indicted in September 2012. She was arrested in October 2013, after flying into California from Hong Kong. The jury returned the verdict on July 11, 2014. Her sentencing hearing is scheduled for October 2, 2014.
According to evidence presented at trial, Deavers devised an investment fraud scheme that used an entity by the name of Angel Annie Humanitarian Trust, LLC. As part of her pitch to investors, Deavers represented that the entity was a Section 501(c)(3) charitable organization, that she had connections to trading programs in Europe that would generate large rates of returns and that she had been successful in investing in such trading programs previously. She represented that any money invested with her and Angel Annie Humanitarian would be invested in such trading programs overseas. None of those representations were true. Deavers collected more than $5.2 million from investors located in Florida. After returning approximately $1.8 million to investors, Deavers used most of the remaining $3.4 million in proceeds to fund her lifestyle, in Indiana and Europe, and to pay various expenses for herself and her family, including a $1 million deposit on a mansion. To lull her investors into a false sense of security, Deavers used e-mail and Skype to provide the investors with a series of false excuses as to why she had not been able to successfully invest their money. Even after Deavers had spent the last of the funds from her victims, for several years, she continued to falsely claim that she was working on investments for them.
This type of scheme is sometimes referred to as a Prime Bank Investment Fraud scheme. For more information on this type of scheme, please visit the website of the United States Department of the Treasury, Office of Inspector General. This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Former University of Virginia Dean Sentenced on Child Pornography ChargesRead the Press Release
A Crozet, Virginia man who previously pleaded guilty to child pornography charges was sentenced today in the U.S. District Court for the Western District of Virginia in Charlottesville for distribution and possession of child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Timothy J. Heaphy for the Western District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office made the announcement.
Michael G. Morris, who used the screen name “funshooter2006,” age 50, of Crozet, Virginia was indicted in 2013 and pleaded guilty on April 21, 2014 to two counts of distributing or receiving images of child pornography and one count of possessing child pornography. During the offenses charged, Morris was employed as an associate dean at the University of Virginia’s McIntyre School of Commerce. Morris was sentenced today before U.S. District Judge Norman K. Moon to 106 months in prison followed by 20 years of supervised release.
“Michael Morris was an associate dean at one of our country’s top universities, but instead of inspiring young minds academically, he was sharing and viewing pornographic images of young children,” said Assistant Attorney General Caldwell. “Today’s sentence demonstrates that those who trade and possess child pornography, no matter what positions of authority they may hold, will face the consequences for fueling an industry that causes immense damage to children.”
“Each and every time defendants like Mr. Morris download and share images depicting child pornography the children in those images suffer re-victimization,” U.S. Attorney Timothy J. Heaphy said today. “The Department will continue to use all available resources to seek out those who trade in this lurid material and bring them to justice.”
“The Richmond-based Child Exploitation Task Force will pursue and bring to justice anyone who produces, distributes, or possesses child pornography,” said Special Agent Lee. “The Morris case is an example of the FBI’s commitment to Virginia’s communities to keep our kids safe. I would like to thank the United States Attorney’s Office for achieving a positive conclusion to this case, the Charlottesville Police Department for their commitment to the Task Force, and the Task Force officer and FBI agent who led the case for their outstanding investigative work.”
According to evidence presented during the plea hearing and in court documents, a law enforcement officer, acting in an undercover capacity, successfully downloaded videos depicting minors engaged in sexually explicit conduct that Morris had made available to him on a publicly available file-sharing site on Jan. 6, 2012 and March 19, 2013. Morris also admitted that on Nov. 6, 2013, he possessed images or videos depicting prepubescent minors who the defendant knew had not attained 12 years of age. Investigators recovered computers and other items that contained child pornography during a search of Morris’s home.
The case was investigated by the FBI, with the assistance of the Charlottesville Police Department and the Department of Justice’s High Technology Investigative Unit. The case was prosecuted by Trial Attorney Herbrina Sanders of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Nancy Healey of the Western District of Virginia.Former University of Virginia Dean Sentenced on Child Pornography ChargesRead the Press Release
WASHINGTON – A Crozet, Virginia man who previously pleaded guilty to child pornography charges was sentenced today in the U.S. District Court for the Western District of Virginia in Charlottesville for distribution and possession of child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Timothy J. Heaphy for the Western District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office made the announcement.
Michael G. Morris, who used the screen name “funshooter2006,” age 50, of Crozet, Virginia was indicted in 2013 and pleaded guilty on April 21, 2014 to two counts of distributing or receiving images of child pornography and one count of possessing child pornography. During the offenses charged, Morris was employed as an associate dean at the University of Virginia’s McIntyre School of Commerce. Morris was sentenced today before U.S. District Judge Norman K. Moon to 106 months in prison followed by 20 years of supervised release.
“Michael Morris was an associate dean at one of our country’s top universities, but instead of inspiring young minds academically, he was sharing and viewing pornographic images of young children,” said Assistant Attorney General Caldwell. “Today’s sentence demonstrates that those who trade and possess child pornography, no matter what positions of authority they may hold, will face the consequences for fueling an industry that causes immense damage to children.”
“Each and every time defendants like Mr. Morris download and share images depicting child pornography the children in those images suffer re-victimization,” U.S. Attorney Timothy J. Heaphy said today. “The Department will continue to use all available resources to seek out those who trade in this lurid material and bring them to justice.”
“The Richmond-based Child Exploitation Task Force will pursue and bring to justice anyone who produces, distributes, or possesses child pornography,” said Special Agent Lee. “The Morris case is an example of the FBI’s commitment to Virginia’s communities to keep our kids safe. I would like to thank the United States Attorney’s Office for achieving a positive conclusion to this case, the Charlottesville Police Department for their commitment to the Task Force, and the Task Force officer and FBI agent who led the case for their outstanding investigative work.”
According to evidence presented during the plea hearing and in court documents, a law enforcement officer, acting in an undercover capacity, successfully downloaded videos depicting minors engaged in sexually explicit conduct that Morris had made available to him on a publicly available file-sharing site on Jan. 6, 2012 and March 19, 2013. Morris also admitted that on Nov. 6, 2013, he possessed images or videos depicting prepubescent minors who the defendant knew had not attained 12 years of age. Investigators recovered computers and other items that contained child pornography during a search of Morris’s home.
The case was investigated by the FBI, with the assistance of the Charlottesville Police Department and the Department of Justice’s High Technology Investigative Unit. The case was prosecuted by Trial Attorney Herbrina Sanders of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Nancy Healey of the Western District of Virginia.
Former U.S. Postal Service Employee from Silver City Sentenced to Probation for Falsefying Postal RecordsRead the Press Release
ALBUQUERQUE – Gabriel Arsola, 40, of Silver City, N.M., was sentenced today to three years of probation for making false and fictitious entries on U.S. Postal Service forms. Arsola also was ordered to pay $10,834.68 in restitution to the U.S. Postal Service.
Arsola was indicted in Dec. 2013, and charged with 56 counts of making false entries and reports on U.S. Postal Service forms in order to conceal a scheme to defraud the U.S. Postal Service. According to the indictment, between Aug. 20, 2012 and Dec. 7, 2012, Arsola made false and fictitious entries on the forms regarding the value of the postage stamps and bubble-wrap sold at the Silver City Post Office to understate the amount of funds received by the Post Office. During that time period, Arsola was employed as a sales and service associate at the Silver City Post Office.
On April 15, 2014, Arsola pled guilty to Count 1 of the indictment and admitted to the full scope of criminal conduct charged in the 56-count indictment as well as other criminal conduct. In his plea agreement, Arsola admitted that between July 2011 and Dec. 2012, he falsified postal records to conceal that he was stealing money from the U.S. Postal Service. Arsola admitted selling full books of stamps to customers but only scanning single stamps and recording the sale of single stamp transactions. In his plea agreement, Arsola agreed to pay restitution in the amount of $10,834.68 to the U.S. Postal Service.
This case was investigated by the U.S. Postal Service, Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Former Plymouth Police Officer Sentenced for Using Excessive Force and LyingRead the Press Release
BOSTON – A former Plymouth police sergeant was sentenced today for using excessive force on an arrestee and covering up his actions by falsifying police reports related to the incident.
Shawn Couglin, 47, was sentenced to one year and one day in prison, one year of supervised release, and a fine of $7,500. In February 2014, Coughlin was convicted following a jury trial of deprivation of constitutional rights under color of law and falsifying a record to impede a federal investigation.
On November 19, 2011, at the Plymouth police station, Coughlin assaulted an arrestee who was in a holding cell and handcuffed behind his back. Coughlin struck the arrestee in the head and kneed him in the body, resulting in bodily injury. Evidence at trial also established that Coughlin falsified the official police incident reports regarding the incident.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by S. Theodore Merritt and Kristina E. Barclay of Ortiz’s Civil Rights Enforcement Team.
Former Official of Maryland Department of Veterans Affairs Admits to Fraudulently Obtaining over $1.4 Million in BenefitsRead the Press Release
Eight Other Veterans Have Admitted to Paying U.S. Army Veteran David Clark
Cash to Fraudulently Obtain Veteran Benefits
Baltimore, Maryland – U.S. Army veteran David Clark, age 67, of Hydes, Maryland, the former Deputy Chief of Veterans Claims in the Maryland Department of Veterans Affairs, pleaded guilty today to extortion in connection with a scheme to fraudulently obtain over $1.4 million in veterans benefits.The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kim R. Lampkins of the Department of Veterans Affairs Office of Inspector General.
In January 2011, Clark retired from the Maryland Department of Veterans Affairs (MDVA) as the Deputy Chief for Veterans Claims. Clark’s duties included submitting claims and documentation on behalf of veterans in Maryland who appointed the MDVA to represent them in obtaining federal benefits from the Department of Veterans Affairs (VA). Clark also submitted documents to the Maryland State Department of Assessments and Taxation (SDAT) in support of veterans’ applications for property tax waivers.
According to his plea agreement, while serving at Deputy Chief of Claims, Clark fraudulently obtained VA compensation for himself and at least 17 others, by submitting false documents to the VA purporting to show that the claimants had been diagnosed with diabetes, and in some cases that the claimant had served in Vietnam when they had not. The claimants paid Clark half of the retroactive lump sum payment they received in cash, or some other amount of cash. These payments to Clark were made in unmarked envelopes, at MDVA offices in Bel Air, Maryland; at the Fallon Federal Building in Baltimore; and at other locations.
In support of these claims, Clark submitted fake letters from doctors purportedly treating the veterans, which falsely stated that the claimants suffered from Type II diabetes. Clark used the names and addresses of real doctors who were unaware of his conduct. Each letter stated that the diagnosis of Type II diabetes had been made a year or more prior to the date of the letter, which entitled each claimant to a retroactive lump-sum payment. The letters also stated that the claimants were currently taking insulin, which increased the amount of compensation the VA paid the claimant.
Clark created counterfeit versions of a Defense Department form for himself and five others, which falsely stated that each had served in Vietnam. These forms also falsely stated that these individuals had received various awards and decorations for the Vietnam service, including that Clark himself had been awarded the Purple Heart Medal. These documents were submitted to the VA to provide false evidence that they qualified for compensation benefits for diabetes.
Clark also submitted false certifications to the SDAT, on behalf of claimants that owned homes in Maryland, that the filers were entitled to a property tax waiver due to a service-connected disability.
The total loss to the government caused by false submissions to the VA is $1,151,219 and the loss from the property tax evasion is $255,555, for a total loss of $1,407,134.
Clark faces a maximum sentence of 20 years in prison and a $250,000 fine. Clark has agreed to forfeit $1,407,134. U.S. District Judge Catherine C. Blake scheduled sentencing for November 17, 2014 at 9:15 a.m.
Eight other veterans have previously pleaded guilty to paying Clark cash to submit false documentation to receive VA benefits:
John Bratcher, age 56, of Conowingo, Maryland, a veteran of the U.S. Air Force; Richard Genco, age 71, of Baltimore, a veteran of the U.S. Navy; Paul Heard, age 65, of Baltimore, a veteran of the U.S. Navy; George Kulla, age 68, of Dillwyn, Virginia, a veteran of the U.S. Army; Sandra Tyree, age 65, of Baltimore, a veteran of the U.S. Air Force and former employee of the U.S. Department of Veterans Affairs; Kenneth Webster, age 68, of Pasadena, Maryland, a veteran of the U.S. Marine Corps and a former police officer with AMTRAK; Raymond Sadler, age 63, of Middle River, Maryland, a veteran of the U.S. Marine Corps; and Kenneth Williams, age 65, of Baltimore, a veteran of the U.S. Marine Corps.
Today’s announcement is part of efforts underway by President Obama=s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys= offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the VA Office of Inspector General for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
Former Milledgeville Credit Union Employee Sentenced for EmbezzlmentRead the Press Release
ROCKFORD — A former employee of Milledgeville Community Credit Union was sentenced by U.S. District Judge Frederick J. Kapala for embezzling money from Milledgeville Community Credit Union, in Milledgeville, Ill. KIMBERLY KENT, 53, who was also a former Treasurer of Wysox Township, was sentenced to 8 months in prison, to be followed by 2 years of supervised release requiring her to serve the first 6 months of supervision under home confinement, and a $5,000 fine. Kent was also ordered to pay restitution in the amount of $10,176.72 to Milledgeville Community Credit Union and $5,278.75 to Wysox Township, in addition to restitution in the amount of $231,823.15 that Kent already paid. Restitution included investigative costs incurred by the Credit Union and Township.
Kent pleaded guilty to the charge on February 24, 2014. According to Kent’s written plea agreement, from October 2005 through February 2012, Kent embezzled approximately $219,600 from Milledgeville Community Credit Union, where she was the manager and responsible for supervising other employees. Kent was also responsible for her own cash drawer and for handling various transactions on accounts, including the deposit and withdrawal of funds to and from customers’ accounts. As stated in the plea agreement, to conceal her embezzlement, Kent created fictitious loans using the names of family members and fictitious certificates of deposit. In 2009, Kent was elected treasurer of Wysox Township. Kent admitted that in August 2010, in her capacity as treasurer of Wysox Township, she used funds from Wysox Township’s account at Milledgeville Community Credit Union to cover her embezzlement. Kent used the money she embezzled for personal purposes. The deposits of the credit union were insured by the National Credit Union Administration Board.
The sentencing 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 Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Former Chief Operating Officer and Co-owner of Schuylkill Products Sentenced in Largest Disadvantaged Business Enterprise Fraud in Nation's HistoryRead the Press Release
Ernest G. Fink, Jr., 68, of Orwigsburg, Pennsylvania, the former Chief Operating Officer and co-owner of Schuylkill Products Inc., was sentenced in federal court in Harrisburg, Pennsylvania, today to 51 months’ imprisonment and ordered to pay fines totaling $25,100 for his role in a massive conspiracy to defraud the Disadvantage Enterprise (DBE) program, announced Peter Smith, U.S. Attorney for the Middle District of Pennsylvania. Senior U.S. District Court Judge Sylvia H. Rambo directed that Fink report to prison no later than September 8, 2014.
In handing down the sentence, Judge Rambo stated “DBE fraud is pervasive in the construction industry and persons so inclined to commit the same kind of fraud need to be aware that they face serious consequences from DBE fraud.”
According to the U.S. Department of Transportation (USDOT), this scheme, which lasted for over 15 years and involved over $136 million in government contracts in Pennsylvania alone, is the largest reported Disadvantaged Business Enterprise (DBE) fraud in the nation’s history.
On August 16, 2010, Fink pleaded guilty to conspiracy. Sentencing was deferred pending the resolution of the case against Joseph W. Nagle, SPI’s former president and co-owner.
In April 2012, after a four-week jury trial, a federal jury found Nagle guilty on 26 charges in the indictment, including conspiracy to defraud the USDOT and to commit wire and mail fraud, seven counts of wire fraud, six counts of mail fraud, conspiracy to commit money laundering and 11 counts of money laundering.
On June 30, 2014, Nagle was sentenced to 84 months imprisonment and ordered to pay fines totaling $27,600.
Fink was Vice-President, Chief Operating Officer and co- owner of Schuylkill Products Inc. (SPI) and its wholly-owned subsidiary CDS Engineers Inc. (CDS), until April 2009 when SPI was sold. SPI, based in Cressona, Pennsylvania, manufactured concrete bridge beams used on highway construction projects in Pennsylvania and surrounding states. CDS was SPI’s erection division and installed SPI’s bridge beams as well as other suppliers’ products on highways in Pennsylvania and surrounding states. The conspiracy defrauded USDOT, the Pennsylvania Department of Transportation (PennDOT) and the Southeastern Pennsylvania Transportation Authority (SEPTA) in connection with the federal government’s DBE program.
USDOT provides billions of dollars a year to states and municipalities for the construction and maintenance of highways and mass transit systems on the condition that small businesses, owned and operated by disadvantaged individuals, receive a fair share of these federal funds. In Pennsylvania, PennDOT and SEPTA receive these funds and requires contractors to award a percentage of their subcontracts to eligible DBE’s.
The USDOT Office of Inspector General has cautioned prime contractors and subcontractors not to engage in fraudulent DBE activity and encouraged them to report any suspected DBE fraud by contacting www.oig.dot.gov/hotline.
Fink and his co- conspirators executed the scheme by using a small Connecticut highway construction firm known as Marikina Construction Corporation as a front company to obtain these lucrative government contracts.
Marikina was owned by Romeo P. Cruz of West Haven, Connecticut, a naturalized American citizen born in the Philippines. Marikina was certified by PennDOT and SEPTA as a DBE. Although Marikina received the DBE contracts on paper, all the work was performed by SPI and CDS personnel, and SPI and CDS received all the profits. In exchange for letting SPI and CDS use its name, Marikina was paid a small fixed-fee, set by SPI.
SPI and CDS personnel pretended to be Marikina employees by using Marikina business cards, email addresses, stationery, and signature stamps, as well as using magnetic placards and decals bearing the Marikina logo to cover up SPI and CDS logos on SPI and CDS vehicles.
Earlier this year, three other former executives associated with SPI, CDS and Marikina were sentenced for their roles in the scheme.
Romeo P. Cruz, the former owner of Marikina, was sentenced to 33 months’ imprisonment, must pay $119 million in restitution and serve two years’ supervised release.
Timothy G. Hubler, of Ashland, Pennsylvania, CDS’ former Vice-President in charge of field operations, was sentenced to 33 months’ imprisonment, pay $119 million in restitution and serve two years’ supervised release.
Dennis F. Campbell, of Orwigsburg, Pennsylvania, SPI’s former Vice-President in charge of sales and marketing was sentenced to 24 months’ imprisonment, $119 million in restitution and serve two years’ supervised release.
The investigation was conducted by the FBI, the U.S. Department of Transportation Inspector General’s Office, the U.S. Department of Labor Inspector General’s Office, and the Criminal Investigation Division of the IRS. Senior Litigation Counsel Bruce Brandler handled the prosecution.
Former Bank Employee in Neosho CountySentenced for Embezzling More Than $278,000Read the Press Release
WICHITA, KAN. - A former employee of a bank in Neosho County was sentenced Monday to a year and a day in federal prison for embezzling more than $278,000 from the bank and two customers, U.S. Attorney Barry Grissom said.
Sherrie Landell, 42, Erie, Kan., pleaded guilty to one count of embezzlement by a bank employee. In her plea, she admitted that from September 2007 to May 2013 she embezzled from Exchange State Bank.
Landell worked in the bank’s branch in St. Paul, Kan. She was responsible for maintaining the bank’s general ledger account and an account designated for accounts receivable on certificates of deposit. Money she stole included interest due on certificates of deposit. She fraudulently altered the bank’s records to conceal the crime. The shortage was discovered during a bank regulatory exam and subsequent audit by an independent accounting firm in 2013.
Grissom commended the U.S. Secret Service, the Federal Deposit Insurance Corporation and Assistant U.S. Attorney Aaron Smith for their work on the case.
Flora, Illinois, Man Sentenced to 24 Months for Being A Convicted Felon in Possession of A FirearmRead the Press Release
Follow @SDILNewsA Clay County man was sentenced on July 10, 2014, to federal prison on gun charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Leroy O’Ryan, 67, of Flora, Illinois, was sentenced to 24 months in federal prison, to be followed by two years of supervised release following his imprisonment, and fined $2,000. O’Ryan had previously pleaded guilty to a one count federal indictment. That Indictment charged that on August 12, 2013, O’Ryan, who had a previous felony conviction for Aggravated Battery, knowingly possessed a Bushmaster, Carbon 15 model, .223 caliber rifle, and a Ruger, P85MKII, 9mm semi-automatic pistol. O’Ryan sold the firearms to an undercover officer and a confidential informant working for law enforcement.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case is being handled by Assistant United States Attorney George Norwood.
FBI and Crafton Police Department Seek Public’s Assistance to Identify Dollar Bank RobberRead the Press Release
The Federal Bureau of Investigation (FBI) Pittsburgh Division and the Crafton Police Department are seeking the public’s assistance in identifying the unknown male responsible for robbing the Dollar Bank, Crafton Office, located at 45 Walsh Road, Pittsburgh (Crafton), Pennsylvania, 15205, on Monday, July 14, 2014, at approximately 3:45 p.m.
The robber is described as follows:
• Sex: Male
• Race: Black
• Height: Approximately 5’6” to 6’ tall
• Build: Medium buildBank surveillance photograph from the Dollar Bank, Crafton Office, 45 Walsh Road, Pittsburgh
(Crafton), Pennsylvania, taken on Monday, July 14, 2014:Anyone with information regarding this robbery should contact the FBI at telephone number (412) 432-4000. To view other photographs of bank robbers law enforcement is seeking to identify please visit https://bankrobbers.fbi.gov.
Essex County, N.J., Man Convicted of Brandishing Weapon During CarjackingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey man who previously admitted his role in an armed carjacking in Little Falls, New Jersey, was convicted today for brandishing a shotgun while committing that crime, U.S. Attorney Paul J. Fishman announced.
Ivan Lee, 26, of Newark, was found guilty of brandishing a firearm in furtherance of a crime of violence following a one-week trial before U.S. District Judge Susan D. Wigenton in Newark federal court. The jury deliberated three hours before returning its verdict.
According to documents in this case and the evidence at trial: Oct. 30, 2011, Lee and Hanza Darby, 25, of Newark, were in the Little Falls area when they spotted a parked 2008 BMW 335 with passengers inside. Darby and Lee – who brandished a shotgun – approached the car and ordered the occupants out of the vehicle at gunpoint. Darby and Lee then took the car and fled the area. Law enforcement officers recovered the car in Newark on Nov. 7, 2011. Darby was standing next to it at the time. Lee previously pleaded guilty to the carjacking count and Darby has previously pleaded guilty carjacking and brandishing a weapon in furtherance of a crime of violence. Darby is awaiting sentencing.
The carjacking charge carries a maximum potential penalty of 15 years in prison. The firearm charge carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each of the two counts also carries a maximum $250,000 fine. Sentencing for Lee is scheduled for Oct. 21, 2014.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, officers of the Little Falls Police Department, under the direction of Chief John Dmuchowski; the N.J. State Police, under the direction of Col. Rick Fuentes; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorney Cari Fais and Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Criminal Division in Newark.
14-248
Defense counsel: Mark Berman Esq., of River Edge, New JerseyEl Paso Man Sentenced to Federal Prison for Production of Child PornographyRead the Press Release
In El Paso today, 48-year-old Tomas Steven Quinones was sentenced to 225 months in federal prison followed by ten years of supervised release for production of child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Dennis Ulrich.
On August 29, 2013, HSI agents executed a search warrant at the defendant’s residence and seized over 90 assorted computers, accessories and other miscellaneous items including laptop computers, desktop computers, computer hard drives, thumb drives, memory sticks, flash drives, CDs, DVDs and VHS tapes. A subsequent forensics examination of the seized items revealed the presence of approximately 25,000 images of child pornography.
On May 7, 2014, Quinones pleaded guilty to production of child pornography. By pleading guilty, Quinones admitted to producing a video in December 2010 in which he knowingly persuaded and enticed two minors to take part in sexually explicit conduct for the purpose of producing a video depiction of such conduct. Quinones is seen and heard throughout the video instructing the children on how to have sex.
“This 18-year sentence sends a clear message that those who exploit children in any way will face serious consequences,” said Special Agent in Charge, Dennis Ulrich, HSI El Paso. “Preventing and investigating crimes against children is a high priority for HSI. We will continue to dedicate law enforcement resources to identify and bring to justice child predators who traumatize and victimize children.”
Assistant United States Attorney Rifian Newaz prosecuted this case on behalf of the Government.
Edgewater Teacher Arrested for Producing and Distributing Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Matthew C. Graziotti (42, Edgewater) with production, distribution, receipt and possession of child pornography. If convicted, Graziotti faces a mandatory minimum penalty of 15 years in federal prison, up to 30 years for the production charge. For the receipt and distribution charges he faces a mandatory minimum of five years, up to 20 years for each. The maximum penalty for the possession charge is 10 years in federal prison. Graziotti made his initial appearance in federal court today and was detained pending a preliminary hearing on July 24, 2014 at 10:00 a.m., before U.S. Magistrate Thomas B. Smith.
According to the criminal complaint, Graziotti distributed 141 images and 6 videos depicting the sexual abuse and exploitation of children to an FBI agent, who was acting in an undercover capacity. During the execution of a search warrant earlier today, agents located thousands of child pornography images on Graziotti’s computer. One folder on the computer was named “personally known.” The folder contained 41 subfolders titled with different boys’ names. In one of the subfolders, agents located a picture of Graziotti sexually abusing a prepubescent boy. The picture was produced with a digital camera that agents found in Graziotti’s residence. The investigation revealed that Graziotti teaches elementary school in South Daytona, and is director of the school’s summer day camp program. He formerly worked as a youth pastor at a church in Edgewater.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Edgewater Police Department and the Volusia County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Karen L. Gable.
Anyone with additional information about potential victims may contact the FBI – Daytona Beach Resident Agency at 386-252-0463.
It is another case 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 (CEOS), 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.projectsafechildhood.gov.
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Dubuque Gas Station Altercation Leads to Federal Prison SentenceRead the Press Release
A man who threatened a Dubuque woman with a gun after she refused to assist him in committing food stamp fraud at a Dubuque gas station was sentenced today to just under 5 years in federal prison.
Billy Evans, 23, from Milwaukee, Wisconsin, received the prison term after a April 15, 2014 guilty plea to possession of a firearm and ammunition as a felon.
According to court records and information disclosed at the sentencing hearing, Evans arrived in Dubuque from Wisconsin on January 16, 2014. Upon his arrival in Dubuque, Evans walked to a gas station and attempted to persuade a woman at the gas station to use Evans’s food stamp card to purchase her items, and to give Evans her cash. When the woman refused, Evans yelled at the woman while lifting the side of his jacket to show her that he was carrying a handgun in his waistband. The altercation was captured by the store’s surveillance camera.
A second confrontation occurred after the woman left the gas station, prompting the woman to call 911. Police arrived and approached Evans as he walked away from the gas station. Upon seeing the officers, Evans fled on foot. The foot pursuit went several blocks, through backyards. While he was running from the police, Evans discarded a loaded .25 caliber pistol, which officers found following the chase. Evans was a felon at the time, having been convicted in Wisconsin of Operating a Vehicle without Consent and Attempted Armed Robbery.
Evans was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Evans was sentenced to 57 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Evans is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Dubuque Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/ login.pl. The case file number is 14-CR-1007.
Corona Woman Who Ran High-End Denim Jean Company Indicted for Defrauding Investors While on BondRead the Press Release
LOS ANGELES – A Corona woman, who is already charged with a $15 million bank fraud and bankruptcy fraud, was indicted on Friday on new charges. Carolyn Marie Jones, 51, of Corona, who was the Chief Executive Officer of a high-end denim jean company, was charged in an indictment returned by the grand jury late Friday afternoon.
According to the seven-count indictment returned on Friday, which charges wire fraud and contempt, Jones defrauded victims in an investment fraud scheme. According to the indictment, Jones convinced investors to invest with her by representing that she was operating a clothing company called Premium Management and needed money to close a securities deal and for other business-related expenses. The indictment alleges that Jones spent the money on her own personal expenses. Jones, who was on bond pending a September 23 trial in the bank and bankruptcy fraud case, was prohibited from soliciting money from investors while the trial is pending. The new indictment also alleges that Jones failed to disclose to investors that she was under indictment and was prohibited from soliciting money. Jones is now being held in custody pending trial.
According to the nineteen count indictment returned by a federal grand jury in September 2013, Jones was the Chief Executive Officer of Diamond Decisions, Inc., which sold denim jeans marketed under the labels of Privacywear and PRVCY Premium. According to the indictment, Jones obtained a $15 million business line of credit from Union Bank, using fake financial statements and fake tax returns. The indictment states that Jones gave the bank a Social Security Number that belonged to someone else. Jones also hid from the bank that she had filed for bankruptcy previously and that she had a felony record. According to the indictment, Jones defaulted on the $15 million loan after a year causing Union Bank to file a lawsuit in state court. When Union Bank tried to seize the contents of the Diamond Decisions warehouse, Jones caused the company to file for bankruptcy and hid assets from the bankruptcy trustee.
Jones faces a maximum statutory sentence of 80 years on the wire fraud and contempt indictment. Jones faces a maximum statutory sentence of 489 years in federal prison on the bank and bankruptcy fraud indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The charges in the indictment are the result of an investigation conducted by the United States Secret Service and the Internal Revenue Service.
Release No. 14-086
Colorado Springs Man Sentenced to 92 Months in Federal Prison for Being A Felon in Possession of A Firearm and for Violating the Terms of His Supervised ReleaseRead the Press Release
DENVER – Jeffrey Scott Taylor, age 42, of Colorado Springs, was sentenced last week by Senior U.S. District Court Judge John L. Kane to serve 92 months in federal prison for being a felon in possession of a firearm and for violating that terms of his supervised release for an earlier felon in possession of a firearm conviction. The sentencing was announced by U.S. Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Special Agent in Charge Luke Franey. Taylor, who appeared at the sentencing hearing in custody, was remanded.
Taylor was indicted by a federal grand jury in Denver on September 25, 2013. He pled guilty to being a felon in possession of a firearm on December 23, 2014. He was sentenced by Senior Judge Kane on July 8, 2014.
According to the stipulated facts contained in the plea agreement and other court documents, on July 18, 2013, Colorado Springs Police were dispatched to a local residence to investigate a reported domestic disturbance. Officers spoke with the reporting party who told the officers that Jeffrey Scott Taylor had started an argument with other members of his family. Taylor apparently then left the home and walked away. While officers were speaking with the reporting party, Taylor was spotted walking towards the residence. The caller pointed out Taylor and identified him to the officers, who saw that Taylor had his hand in his pocket. An officer asked Taylor to remove his hand from his pocket. Taylor ignored the officers. The officers asked Taylor to come over and speak to them. Taylor walked over to the side of the house, bent down and placed an item on the ground. The officers subsequently detained Taylor and walked over to the place where Taylor had bent down. Officers found a .380 caliber pistol lying on the ground. The firearm was loaded with six rounds of .380 caliber ammunition.
Taylor is a prohibited person and convicted felon. Taylor had been convicted of the following felony offenses prior to his possession of the firearm:
- 12/13/1991; El Paso County District Court; Assault in the Second Degree; - 12/13/1991; El Paso County District Court; Robbery; - 05/12/1997; El Paso County District Court; Attempted Escape; and
- 06/01/2003; United States District Court, District of Colorado, Case No. 03-cr-288-JLK; Felon in Possession of a Firearm.Taylor was on supervised release for the 2003 felon in possession of a firearm offense at the time he was charged with this crime.
This case was investigated by the Colorado Springs Police Department and the ATF.
The defendant was prosecuted by Assistant U.S. Attorney Richard Hosley.
Cocaine Dealer in St. Mary’s County Drug Trafficking Conspiracy Sentenced to 20 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Jamar Holt, a/k/a “Reds,” “Jamal Holt” and “Rex,” age 36, of Baltimore, Maryland, today to 20 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute five kilograms or more of cocaine and a kilogram or more of heroin; engaging in money laundering; and violating his supervised release. Chief Judge Chasanow also entered an order requiring Holt to forfeit $1 million, two vehicles, three properties located in Baltimore, as well as jewelry and $22,390 seized at Holt’s residence during the execution of a search warrant.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; St. Mary’s County Sheriff Tim Cameron; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office .
According to his plea agreement, from October 2012 to April 2013, Holt acquired kilograms of cocaine and other quantities of heroin, and provided the drugs to conspirators who distributed the drugs to customers. Co-conspirator Damon Estep coordinated the delivery of cocaine to himself and other conspirators from St. Mary’s County. The conspirators would meet in Glen Burnie to pay for the drugs to be distributed in St. Mary’s County by Estep and others. The distribution of between 15 and five kilograms of cocaine hydrochloride, and between three and one kilograms of heroin, were reasonably foreseeable to Holt.Holt had been sentenced on April 14, 2005 in federal court in Maryland to six years in prison followed by four years of supervised release for conspiring to distribute heroin. His drug trafficking activities occurred while on supervised release, thereby violating his terms of release.
In November 2012, Holt gave his girlfriend around $20,000, more or less, to buy a 2012 Jeep. In December 2012, Holt also delivered checks totaling $54,440.42 to an individual to pay off an outstanding loan on properties located at 524-530 Oldtown Mall, Baltimore. In return, Holt received an ownership interest in the properties. In February 2013, Holt provided $51,000 in cash to the seller of property located at 4338 Glenmore Avenue in Baltimore, in order to buy the property. The monies Holt provided in these transactions included the proceeds of his drug trafficking, which Holt intended to conceal.
When Holt was charged in May 2013 in a superseding indictment, he was notified that the government would seek forfeiture of any property obtained as a result of the drug conspiracy. Nevertheless, on June 25, 2013, Holt filed a false document purporting to transfer his ownership in 4338 Glenmore to his sister and mother. The signatures of his mother and sister on the document were forged. In filing this document, Holt intended to obstruct forfeiture proceedings.
On April 25, 2013, law enforcement executed a search warrant at Holt’s residence and seized drug paraphernalia, seven cell phones, $22,390 in cash and over $119,000 in jewelry, including 12 watches with brands such as Rolex and Breitling.
Chief Judge Chasanow sentenced Damon Jerome Estep, a/k/a “Country”, age 38, of California, Maryland, on February 7, 2014 to 188 months in prison. Co-defendants Alrahman Sharif Allen, a/k/a “Rock” and “Rahman Allen;” and Jeffrey Kirk Berry, a/k/a “Kojack,” previously pleaded guilty to their participation in the conspiracy and await sentencing.
United States Attorney Rod J. Rosenstein praised the DEA, St. Mary’s County Sheriff’s Office, and IRS-Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah Jo Bressack and Deborah Johnston, who prosecuted the case.
Child Care Operator Charged with Fraud SchemeRead the Press Release
PHILADELPHIA - Tracey Parson, 44, of Sicklerville, NJ, was charged today by indictment with two counts of conspiracy, three counts of wire fraud, and one count of mail fraud, announced United States Attorney Zane David Memeger. The charges arose from a scheme to defraud the Pennsylvania Department of Education and the United States Department of Agriculture, and a separate scheme to defraud Clear Channel Communications, Inc. (“Clear Channel”), all through Kiddie Kare Child Care & Education Center (“Kiddie Kare”). Kiddie Kare was a day care company with locations in Philadelphia and was founded and run by Parson. Parson used Kiddie Kare to, among other things, defraud a federally funded program designed to provide meals to eligible children attending day care. In addition, Parson used Kiddie Kare to defraud Clear Channel in connection with a defamation lawsuit stemming from a radio broadcast. Parson falsely alleged in the lawsuit that the defamation resulted in lost revenue at Kiddie Kare.
If convicted the defendant faces a maximum possible sentence of 90 years in prison, a fine of up to $1.5 million, five years of supervised release, and a $600 special assessment.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Agriculture Office of Inspector General. It is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Bridgeport Man Sentenced to 5 Years for Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY PATTERSON, 35, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on November 13, 2012, a Connecticut State Police trooper stopped a rental car being driven by PATTERSON on I-95 South. When the trooper approached the vehicle, PATTERSON informed him that he was on parole for conspiracy to commit murder and that he was driving without a license. The trooper instructed PATTERSON to exit the vehicle, searched him and recovered a loaded .380 caliber handgun from PATTERSON’s waistband.
PATTERSON has been detained in state custody since his arrest. On March 19, 2014, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This is PATTERSON’s fifth felony conviction, including a conviction for conspiracy to commit murder. In November 2001, a 32-year-old man was shot seven times and killed by PATTERSON’s accomplices at the Roodner Court housing complex in Norwalk after PATTERSON had lured the victim out of an apartment.
This matter was investigated by the Connecticut State Police, Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
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(203) 821-3722 [email protected]Boise Man Sentenced for Unlawfully Possessing AmmunitionRead the Press Release
BOISE – Michael Sean Crist, 46, of Boise, Idaho, was sentenced today in United States District Court to 44 months in prison followed by three years of supervised release for unlawfully possessing ammunition, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Crist to forfeit the firearm and ammunition involved in the offense.
According to the plea agreement, Crist possessed 555 rounds of ammunition on September 5, 2012. The ammunition was discovered when parole officers searched Crist’s residence. The parole officers also located a .22 semiautomatic pistol. Crist is prohibited from possessing firearms and ammunition because of previous felony convictions including: possessing a controlled substance with the intent to deliver and unlawful possession of a firearm in Ada County in 2004, and delivery of marijuana in Ada County in 1993. Crist pleaded guilty to the charge on April 24, 2014.
The case was investigated by the Idaho Department of Probation and Parole, Meridian Police Department, and the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
Crist is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Bladensburg Man Sentenced to over 14 Years in Prison in Bank Fraud SchemeRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Lateef Akande, age 36, of Bladensburg, Maryland, today to 175 months in prison, followed by five years of supervised release, for conspiring to commit bank fraud, bank fraud, aggravated identity theft and money laundering. Judge Titus also ordered Akande to pay restitution of $418,042.58.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service B Washington Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division .
According to his plea agreement, from January 2010 to May 2012, Akande and others recruited individuals to provide personal bank information regarding existing bank accounts in their names, or to open new accounts in their own names. Akande and others then caused third-party checks to be deposited into those bank accounts. For any of the checks that cleared, the co-conspirators would withdraw monies from those accounts.
For example, on January 29, 2010, Akande opened a bank account under the name of Tyrone Jackson and deposited a check in the amount of $29,750.90, drawn on the account of a victim. The check contained the words “Tax Refund” on the memo line. Akande then caused a check in the amount of $12,920, payable to an electric company, to be negotiated using the funds from this account.
Akande admits that the loss or intended loss as a result of the fraud scheme was $1,798,456.30.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the Secret Service and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Thomas P. Windom, and Special Assistant United States Attorney Margaret Moeser, of the U.S. Justice Department’s Asset Forfeiture & Money Laundering Section, who prosecuted the case.
11 July 2014
Worth County Minister Sentenced for Bank FraudRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced today that Craig A. Howell, 53, of Sylvester, Georgia, was sentenced to serve 12 months in federal prison for making false statements to a federally insured financial institution. The sentence was handed down by the Honorable W. Louis Sands, United States District Court Judge, in Albany, Georgia.
As part of the sentence, the Court entered a Preliminary Order of Forfeiture, ordering Howell to forfeit $100,000.00, or in the alternative, the real property and residence in Worth County which Howell purchased with the fraudulently obtained funds.On October 7, 2013, Mr. Howell, the pastor of Plantation Parkway Assembly of God Church, in Leesburg, Georgia, pleaded guilty to the indicted charges. According to the plea agreement, Mr. Howell entered an agreement with Brad Heard, Sr., Brad Heard, Jr., and banker Larry Malone to borrow a total of $800,000 from Southwest Georgia Farm Credit under false pretenses. Howell acted largely as a “straw” or conduit to pass approximately $700,000.00 directly to Mr. Heard, Sr., and Mr. Heard, Jr. Howell did not have the means or the intention of repaying these loans himself.
However, Mr. Howell kept $100,000.00 of the loan proceeds for himself. Mr. Howell then falsely represented to Heritage Bank that the $100,000.00 was a gift from his mother. Mr. Howell caused his mother to sign a fraudulent “gift letter” formally attesting that the $100,000.00 was a gift. He also photocopied the front of a check from his mother payable to him and gave it to Heritage Bank as proof that his mother had given him the down payment as a gift. This check was never negotiated, and in fact, Mr. Howell’s mother had only a few thousand dollars in her checking account at the time.
The case was investigated by the Federal Bureau of Investigation, the United States Secret Service, and internal auditors with Southwest Georgia Farm Credit. Assistant United States Attorney James N. Crane represented the Government in the prosecution of the case.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Maricruz Mendoza, aka Erika L. Luna, 36, of Elkhart, Indiana pled guilty to the felony offense of theft of government property. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Department of Labor and the Indiana Department of Work Force Development. Sentencing has been set for 10/16/ 2014. This case is being prosecuted by Assistant United States Attorney Barbara Brook.
- Alfonso Serrano, 46, of Logansport, Indiana pled guilty to the felony offense of conspiracy to distribute cocaine over 500 grams. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration. Sentencing has been set for 10/17/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Jose Luis Lopez, 24, of Logansport, Indiana pled guilty to the felony offense of distribution of cocaine. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration. Sentencing has been set for 10/17/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Daniel Haslam, 43, of Crawfordsville, Indiana was sentenced to 181 months imprisonment with 3 years supervised release after pleading guilty to the felony offenses of possession of unregistered silencers, illegal manufacture of methamphetamine, possession of multiple firearms as a drug user and possession of multiple firearms in furtherance of drug trafficking. According to documents filed in this case, Haslam had a number of completed firearm silencers as well as silencers that he was still manufacturing. Additionally, there were a number of firearms in the house (several loaded rifles, a shotgun, and a revolver). Haslam was manufacturing and using methamphetamine. Records for pseudoephedrine purchases show that Haslam made 30 pseudoephedrine purchases in 2011 and through August 2012. Local police executed a search warrant and discovered evidence of methamphetamine manufacturing and use, ammunition and multiple firearms and silencers. None of the silencers or firearms were registered to Haslam in the National Firearms Registration and Transfer Record. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald J. Schmid.
- Davon Stewart, 39, of South Bend, Indiana was sentenced to 106 months imprisonment with 3 years supervised release after pleading guilty to the felony offenses of possessing cocaine base (crack) with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. According to documents filed in this case, local law enforcement went to a residence in South Bend searching for a wanted individual. At the location being visited, Stewart answered the door and gave officers consent to enter and search. Officers detected and observed marijuana within the location. Stewart readily admitted that he smoked marijuana. After officers obtained search warrants for the residence, a .40 caliber Smith & Wesson pistol with a loaded magazine was discovered. Near the gun, police found 4 grams of crack cocaine and 6 grams of powder cocaine in two plastic baggies. Officers also discovered a video surveillance system, digital scales, ammunition, additional cocaine powder concealed in a ceiling fan and marijuana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosive. This case was prosecuted by Assistant United States Attorney Donald Schmid.
- Tiffany J. Miller, 28, of Ligonier, Indiana was sentenced to 2 years probation and to pay $15,062 in restitution after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, from in or around September 2010 through August 2011, Miller applied for and received extended unemployment insurance benefits through the State of Indiana Department of Work Force Development (IDWD.) Miller submitted weekly vouchers to IDWD and intentionally answered “No” to the question asking if she was working when in truth she was employed in Elkhart, Indiana during the specified week. Miller also failed to disclose she received wages during that time period. This case was the result of an investigation by the Department of Labor and the Indiana Department of Work Force Development. This case was prosecuted by Assistant United States Attorney Barbara Brook.
- Patrick J. Condon, Jr., 41, of South Bend Indiana was sentenced to 2 years probation and to pay $40,251.50 in restitution after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, April 2010 through July 2011, Condon applied for and received extended unemployment insurance benefits through the State of Indiana Department of Work Force Development (IDWD). Condon submitted weekly vouchers to IDWD and intentionally answered “No” to the question asking if he was working when in truth and in fact he was employed in Elkhart, Indiana during the specified week and earned wages. This case was the result of an investigation by the Department of Labor and the Indiana Department of Work Force Development. This case was prosecuted by Assistant United States Attorney Barbara Brook.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Timothy Yatsko, 42, of Portage, Indiana was sentenced to 30 months imprisonment with 2 years supervised release after pleading guilty to felony possession of a firearm. According to documents filed in this case, on March 14, 2013, Yatsko was found in possession of nine firearms and an assortment of ammunition after previously being convicted of a felony in the Superior Court of Lake County. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Portage Police Department, Lake Station Police Department, and Porter County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Thomas McGrath.
- Armando Ortega, 36, of Hammond, Indiana was sentenced to 5 months on home detention with 2 years of supervised release after pleading guilty to the felony offense of possession with intent to distribute a quantity of cocaine. According to documents filed in this case, on February 25, 2012, law enforcement officers responded to a domestic call at the defendant’s residence and smelled a strong smell of marijuana. On April 6, 2012, a Hammond detective decided to do a “knock and talk” at same residence, when he approached it he smelled a strong odor of marijuana. He left the residence without contact. Three days later, Hammond Police officers did a trash pull, and recovered the remains of marijuana blunts and stems. On April 13, 2012, Hammond Police executed a search warrant on the residence. They recovered around 240 grams of cocaine and redistribution amounts of marijuana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney David Nozick.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Bryant Davis, 40, of Fort Wayne, Indiana was sentenced to 30 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, local law enforcement obtained and executed a state search warrant for the Davis’ residence. During the search, a firearm was located in the bathroom and one was thrown out a window of the residence. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Tina Nommay.
- Christopher M. Salas, 41, of Fort Wayne, Indiana was sentenced to 2 years probation concurrently on both counts of conviction after pleading guilty to the felony offenses of being a felon in possession of a firearm and possession with intent to distribute cocaine. According to documents filed in this case, on April 12, 2011, law enforcement served a search warrant at Salas’ residence. During the search, firearms and cocaine were discovered in the bedroom. This case was the result of an investigation by the Federal Bureau of Investigation and its Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The Fort Wayne Police Department Vice and Narcotics Division and the Allen County Drug Task Force assisted with this investigation. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
- Ben B. Fisher, 38, of Fort Wayne, Indiana was sentenced to 8 months imprisonment with time served and 1 year supervised release after pleading guilty to the felony offense of using a telephone to facilitate a drug felony to include conspiring to distribute and possess with intent to distribute marijuana. According to documents filed in this case, this investigation progressed with a spinoff wiretaps through two different supply chains. Interceptions over Fisher’s telephone led to an immediate supplier. This case was the result of an investigation by the Federal Bureau of Investigation, and the Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and the Fort Wayne Police Department. A number of law enforcement agencies also assisted with this investigation, including the Fort Wayne Police Department Vice and Narcotics Division and Gang Unit, the Allen County Drug Task Force, United States Marshals Service, New Haven Police Department, Orange County California Regional Narcotics Suppression Program, San Bernardino County California Sheriff’s Department, and the Kansas City, Missouri Police Department Drug Interdiction Unit. This case was prosecuted by Assistant United States Attorney Anthony Geller.
Waycross Men Charged with Enticing Minors to Engage in Sex Acts and with Producing Child PornographyRead the Press Release
SAVANNAH, GA: JACQUES DONTE TAYLOR, 22, and DONNEL CORNELIUS SHAVERS, 22, both of Waycross, Georgia, were indicted by a federal grand jury sitting in Savannah earlier this week on numerous counts of enticing minors to engage in sexual acts and with production of child pornography. In part, the indictment alleges that from January through March of 2014 TAYLOR and SHAVERS persuaded, induced, and enticed two minors to engage in sexually explicit conduct for the purpose of producing child pornography.
United States Attorney Edward J. Tarver said, “These defendants have been charged with committing heinous acts against young children. Our children deserve protection from those who abuse and prey on them. The U. S. Attorney’s Office will continue to aggressively prosecute those who violate the innocence of our children.”
“The online exploitation of children is a problem being faced by law enforcement agencies at all levels of government,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. “By working with local partners like the Ware County Sheriff’s Office, HSI special agents can use their unique authorities and technical expertise to help fully investigate crimes against children and ensure their perpetrators are brought to justice.”
Ware County Sheriff Randy F. Royal stated, “I am proud of our investigator, Detective Hope Salinas, who began the initial investigation, which led to Mr. Taylor and Mr. Shavers’ arrests and their being charged with child molestation and other state-level felonies. I am prouder still of the level of support and the spirit of cooperation between our agency and Homeland Security Investigations, which afforded the manpower and resources needed to broaden the scope of the investigation so that all the victims in this case will get the opportunity for justice.”
The federal indictment of TAYLOR and SHAVERS arises out of a joint investigation by the HSI and the Ware County Sheriff’s Office, with additional assistance from the Liberty County Sheriff’s Office. 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.
This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Daniel R. Crumby is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Warren County Man Sentenced to 120 Months in Prison for Possessing and Receiving Child PornographyRead the Press Release
Defendant Used his Computer and the Internet to Download and Save Approximately 600 Child Pornography Files
ALBANY, NEW YORK – GARY MINER, age 45, of Glens Falls, New York was sentenced on July 10, 2014 to 120 months of imprisonment for possessing and receiving child pornography by United States District Court Judge Mae A. D’Agostino, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. MINER, who had entered a guilty plea on February 6, 2014, was also ordered to serve a 25 year term of supervised release, to have no unsupervised contact with minors, and to register with the New York State Sex Offender Registry Program.
Between January 2010 and November 29, 2011, MINER used the Internet to download approximately 600 files that contained child pornography from a website and other individuals.
This case was investigated by the Federal Bureau of Investigation.
Walter Liew Sentenced to Fifteen Years in Prison for Economic EspionageRead the Press Release
SAN FRANCISCO – Yesterday, Walter Lian-Heen Liew (aka Liu Yuanxuan) was sentenced to serve 15 years in prison, forfeit $27.8 million in illegal profits, and pay $511,667.82 in restitution for what the sentencing judge described as a “white collar crime spree” that included violations of the Economic Espionage Act, tax evasion, bankruptcy fraud, and obstruction of justice, announced U.S. Attorney Melinda Haag; John P. Carlin, Assistant Attorney General for National Security at the Department of Justice; David Johnson, Special Agent in Charge of the Federal Bureau of Investigation (FBI), San Francisco Division; and Jose Martinez, Special Agent in Charge of the Oakland Field Office, Internal Revenue Service (IRS), Criminal Investigation.
Liew was convicted on March 6, 2014, after a two month jury trial before the Honorable Jeffery S. White, U.S. District Court Judge, on each of the twenty counts with which he was charged. The jury found that Liew, his company, USA Performance Technology, Inc. (USAPTI), and Robert Maegerle conspired to steal trade secrets from E.I. du Pont de Nemours & Company regarding their chloride-route titanium dioxide production technology and sold those secrets for large sums of money to state-owned companies of the People’s Republic of China (PRC). The purpose of their conspiracy was to help those companies develop large-scale chloride-route titanium dioxide production capabilities in the PRC, including a planned 100,000-ton titanium dioxide factory in Chongqing. This case marks the first federal jury conviction on charges brought under the Economic Espionage Act of 1996.
The jury also found that Liew, USAPTI, and Maegerle obstructed justice during the course of their conspiracy. The jury found that Liew filed false tax returns for USAPTI and Performance Group, a predecessor company to USAPTI, and made false statements and oaths in bankruptcy proceedings for Performance Group.
Liew, 56, of Walnut Creek, Calif., originally was indicted in August 2011 and the grand jury subsequently returned two superseding indictments. Liew was convicted of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, conspiracy to obstruct justice, witness tampering, conspiracy to tamper with evidence, false statements, filing false tax returns, false statements in bankruptcy proceedings, and false oath in bankruptcy proceedings. Liew was an owner and president of USAPTI, a company headquartered in Oakland, Calif., that offered consulting services. USAPTI was found guilty of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, and conspiracy to obstruct justice.
Evidence at trial showed that in the early 1990s, Liew met with the government of the PRC and was informed that the PRC had prioritized the development of chloride-route titanium dioxide (TiO2) technology. TiO2 is a commercially valuable white pigment with numerous uses, including coloring paint, plastics, and paper. DuPont’s TiO2 chloride-route process also produces titanium tetrachloride, a material with military and aerospace uses. Liew was aware that DuPont had developed industry leading TiO2 technology over many years of research and development and assembled a team of former DuPont employees, including Robert Maegerle, to assist him in his efforts to convey DuPont's TiO2 technology to entities in the PRC. Liew executed contracts with state-owned entities of the PRC for chloride-route TiO2 projects that relied on the transfer of illegally obtained DuPont technology. Liew, Maegerle, and USAPTI obtained and sold DuPont’s TiO2 trade secrets to the Pangang Group companies for more than $20 million.
The jury found Liew, Maegerle, and USAPTI guilty of obstructing justice by causing an answer to be filed in a federal civil lawsuit in which they falsely claimed that no information from DuPont’s Kuan Yin plant was used in the USAPTI designs for the development of TiO2 manufacturing facilities. Liew was also found guilty of witness tampering for his efforts to influence a co-defendant’s testimony in the civil lawsuit. The jury also convicted Liew of conspiring with his wife, Christina Liew, to mislead the FBI by corruptly concealing records, documents, and other objects during the FBI’s investigation into their criminal activity.
Liew was also convicted of filing a false income tax return for his company, Performance Group, for calendar years 2006, 2007, and 2008 and for USAPTI in 2009 and 2010. The jury also found Liew guilty of making false statements and a false oath in connection with filing for bankruptcy for Performance Group in 2009.
Liew, as co-owner of USAPTI, entered into contracts worth nearly $28 million to convey TiO2 trade secret technology to Pangang Group companies. The Liews received millions of dollars of proceeds from these contracts. The proceeds were wired through the United States, Singapore, and ultimately back into several bank accounts in the PRC in the names of relatives of Christina Liew.
The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Court Judge. The Court stated during the sentencing hearing that the 15 year sentence was intended, in part, to send a message that the theft and sale of trade secrets for the benefit of a foreign government is a serious crime that threatens our national economic security. In addition to the prison term, the Court ordered Liew to forfeit $27.8 million, and to pay $511,667.82 in restitution to DuPont and victims of his bankruptcy fraud and a $2,000 special assessment ($100 for each of the twenty counts of conviction).
The case was prosecuted by attorneys from the Special Prosecution Unit of the U.S. Attorney’s and the U.S. Department of Justice National Security Division. The FBI and the IRS Criminal Investigation Division were responsible for the investigation.
(Liew second superseding indictment )
Two Metro East Women Convicted of Unemployment FraudRead the Press Release
Follow @SDILNewsTwo more metro east women have been convicted of unemployment fraud. Melonetria McCallum, 37, of O’Fallon, Ill., and Trudie Lindsey, 57, of East St. Louis Ill., pleaded guilty to Embezzlement of Public Funds on July 11, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Documents filed in US District Court established that in each case the women applied for and received unemployment compensation from the state of Missouri at a time when they were earning income and residing in Illinois. In each case, the women falsely certified that they were eligible to receive unemployment benefits and concealed the fact that they had employment at the time they were also receiving benefits. McCallum is accused of unlawfully taking $14,219.97 from the program, while Lindsey was charged with stealing $14,001.00.
The Missouri Department of Employment Security administers Missouri’s unemployment program to provide temporary income replacement for individual workers who lost their jobs through no fault of their own. US Attorney Stephen R. Wigginton said, “These programs are funded through the taxes paid by employers, employees and additional federal contributions. This money is intended to serve as the fundamental safety net in society, not as a hammock for those who double dip.”
Embezzlement of public funds is punishable by not more than 10 years in prison, and/or a $250,000 fine, or both, and not more than three years of supervised release. Each defendant will also be required to make restitution for the amount that they stole. The United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Both defendants will be sentenced in US District Court on October 23, 2014.
The investigations were conducted by agents from the US Department of Labor, Office of the Inspector General. The cases are being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Two Men Sentenced for Identity Theft/Income Tax FraudRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced today thatClifford Virgile, 25, of Tallahassee, and Rodney Charles, 22, of Miami, were sentenced to prisons terms based upon their pleas of guilty to identity theft and income tax refund fraud charges. United States District Judge Robert L. Hinkle sentenced Virgile to a total of 70 months in prison, three years of supervised release, $500 in special monetary assessments, and $102,824 in restitution. Charles received a total term of 25 months in prison, three years of supervised release, $400 in special monetary assessments, and $4,475 in restitution.
According to court records, the men were arrested on the Florida State University campus on May 16, 2013. FSU Police Officers responded after employees noticed the men loitering in a deserted area, near a bank of automated teller machines shortly before 6:00 a.m. Charles fled when officers approached. When caught, Charles had $2,906 in cash, a debit card in a woman’s name, and a receipt showing that he had just withdrawn $500 using that card. Virgile was located nearby. When officers found Virgile’s rental vehicle, they discovered another five debit cards in other people’s names, $13,605 in cash, and receipts for other cash withdrawals.
Officers also found Virgile’s laptop, which contained stolen personal identity information (“PII”) for about 250 people. Other fraudulent income tax returns have been linked to the PII in Virgile’s computer and to the internet addresses used for the returns, which were directed to the debit cards.
Proceeds from seventeen fraudulent income tax returns were sent to these six debit cards. These returns sought a total of $95,499 and actually caused refunds totaling $58,513 to be issued. Another $17,953 was recovered from the debit cards after they were seized. Sentencing was based upon total attempted losses exceeding $400,000 and actual losses of $119,619, which were reduced by the monies seized when the defendants were arrested.
U.S. Attorney Marsh credited the success of this prosecution to the joint efforts of the FSU Police Department, the U.S. Secret Service, and the Internal Revenue Service. The case was prosecuted by Assistant United States Attorney Michael T. Simpson.
Two Men Charged with Insider Trading of Stock in American Superconductor CorporationRead the Press Release
BOSTON – Two men were charged today with conspiring to use inside information about business activities of American Superconductor Corporation (AMSC) to profit from trading AMSC stock.
Eric McPhail, 41, of Waltham and Douglas Parigian, 56, of Lowell, were indicted on charges of conspiracy and securities fraud. Parigian was also charged with making false statements to a federal agent in the course of the investigation.
U.S. Attorney Carmen M. Ortiz said, “Those who engage in insider trading are rigging the system and victimizing the law-abiding citizens who choose to invest our public companies. We will aggressively police the markets to deter this kind of behavior.”
Vincent Lisi, Special Agent in Charge of the Boston Division said, “For those that think they can get away with insider trading, they should know the government has a variety of safeguards in place to detect possible insider trading through the review of suspiciously timed trades. Once someone gets on the radar screen, no matter how inside information is shared or acted on, whether person to person at a country club with golfing buddies, over the phone to trusted allies, or by oneself, the FBI has the tools to investigate and prove the criminal activity. Knowing that we can detect such trading and have the capability to uncover the schemes, those who want to harm the investing public should think twice.”
According to the indictment, starting in or about July 2009, McPhail began giving several of his friends, including Parigian, inside information about AMSC’s business activities and upcoming earnings announcements. McPhail obtained this information during golf outings and other social activities with a close friend who was a senior executive at AMSC. The executive, however, trusted McPhail to keep the information to himself and was unaware that McPhail was using it to tip his friends.
Between July 2009 and April 2011, several of McPhail’s friends, including Parigian, repeatedly traded on the inside information. Over that time, Parigian allegedly made over $300,000 in illicit gains. It is further alleged that during an interview with federal agents in May 2012, Parigian lied about his trading activities and his knowledge of others who traded in AMSC shares.
The statute for the criminal charges provides a maximum sentence of 20 years in prison on the securities fraud charge to be followed by three years of supervised release and a $5 million fine. The conspiracy and false statements charges carry a maximum sentence of five years in prison, three years of supervised release and a fine of $250,000 per count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz and SAC Lisi made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case. The case is being prosecuted by Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
The details contained in the Indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Long Beach Men Plead Guilty to Conspiracy to Engage in Sex Trafficking by Force, Fraud and CoercionRead the Press Release
SANTA ANA, California – Two Long Beach, California, men pleaded guilty today to conspiracy charges arising from a sex trafficking scheme that exploited adult women for prostitution. Roshaun Nakia Porter, 39, and Marquis Monte Horn, 35, both pleaded guilty before Judge Josephine L. Staton in the U.S. District Court for the Central District of California to conspiring to engage in sex trafficking by force, fraud and coercion. Sentencing has been set for Oct. 24, 2014, and each defendant faces a sentence of up to life imprisonment.
According to documents filed in court, from October 2009 through April 2012, Porter and Horn conspired together and with others to recruit, entice, harbor, transport and provide women to engage in commercial sex acts, using various coercive means to compel the women to engage in prostitution for the defendants’ financial benefit. Porter and Horn’s scheme of force, fraud and coercion included false and deceptive internet advertisements they used to lure the victims into romantic relationships with the defendants, and psychological manipulation and control to cause the victims to engage in commercial sex acts for the defendants’ financial benefit.
“Human trafficking is a horrific crime that causes significant damage to victims who are often forced to commit unspeakable acts,” said U.S. Attorney André Birotte Jr. for the Central District of California. “This scheme to control and manipulate victims forced to work in the sex trade has come to an end. With today’s guilty pleas, I hope that healing for the victims can begin.”
“The Department of Justice is committed to the vigorous prosecution of defendants who prey upon and exploit vulnerable individuals for their own financial gain,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “We will continue to pursue justice on behalf of victims of human trafficking to restore their rights and dignity and to hold their traffickers accountable.”
“Sex trafficking is not something that only happens outside of the United States, but victimizes Americans in our own backyards,” said Assistant Director of the FBI Los Angeles Field Office Bill Lewis. “In this case, the defendants defrauded victims and forced them to work as sex slaves under threat to themselves and their families. I hope this conviction reminds vigilant members of the public to report the signs of human and sex trafficking to law enforcement when they encounter it.”
This matter was investigated by the FBI and is being prosecuted by the U.S. Attorney’s Office for the Central District of California and the Civil Rights Division’s Human Trafficking Prosecution Unit.
Release No. 14-085