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Thursday 15 May 2014
Trenton, N.J., Mayor Sentenced to 58 Months in Prison on Federal Extortion, Bribery and Mail and Wire Fraud ChargesRead the Press Release
Mayor’s Brother, Also Convicted at Trial, Sentenced to 30 Months
TRENTON, N.J. - Trenton Mayor Tony F. Mack was sentenced today to 58 months in prison after being convicted at trial in February on all six federal extortion, bribery and mail and wire fraud charges against him, U.S. Attorney Paul J. Fishman announced.
Mack’s brother, Ralphiel Mack, who was also convicted on three of the charges, but found not guilty on three mail fraud and wire fraud counts, was sentenced to 30 months in prison. The Macks had been convicted following a five-week trial before U.S. District Judge Michael A. Shipp, who imposed the sentences today in Trenton federal court.
The Macks were charged in connection with a scheme to accept $119,000 in bribes in exchange for Mayor Mack=s official actions and influence in assisting cooperating witnesses in the development of an automated parking garage on City-owned land.
“Nearly four years ago, Tony Mack raised his hand and swore to uphold the state and federal constitutions as he assumed the office of mayor of the capital city of New Jersey,” U.S. Attorney Fishman said. “Within 10 weeks, he began selling that office and, with the help of his brother and others, he sold out the people of Trenton in the process. Today, he learned the true cost of his actions: He will spend 58 months in federal prison.”
“Instead of providing transparent government to the citizens of Trenton, Tony Mack and his brother allowed themselves to succumb to self-interest and greed,” FBI Special Agent in Charge Aaron T. Ford said. “This investigation brought to light the unsavory underworld of secret meetings with convicted felons, the calculated use of ‘buffers’ and bagmen, and bribe payments associated with inside deals to give away the city’s treasures, its property. The citizens of Trenton are entitled to political figures who discharge their duties with goodness of heart, and not those motivated by personal gain.”
Tony F. Mack, 48, and Ralphiel Mack, 41, both of Trenton, originally were charged by complaint on Sept. 10, 2012, with one count of conspiracy to obstruct commerce by extortion under color of official right related to the $119,000 extortion scheme. Also charged at that time was Joseph A. Giorgianni, 64, of Ewing, N.J. An indictment returned in December 2012 added charges against all three defendants.
Giorgianni pleaded guilty on Dec. 13, 2013, to one count of conspiring with the Macks and others to obstruct interstate commerce by extorting individuals under color of official right, in addition to a separate extortion scheme, a narcotics charge and illegal weapons possession, all charges unrelated to the Macks.
Mayor Mack was convicted of the six counts charged in the indictment:- Conspiracy to obstruct and affect interstate commerce by extorition under color of official right;
- Attempted obstruction of commerce by extortion under the color of official right;
- Accepting and agreeing to accept bribes;
- Two counts of wire fraud;
- Mail fraud;
Ralphiel Mack was convicted on the same first three counts and found not guilty of the mail and wire fraud charges. The jury members deliberated for seven hours before returning their verdicts.
According to documents filed in this case and the evidence presented at trial:
Tony Mack, Giorgianni and Ralphiel Mack conspired to accept approximately $119,000 in cash and other valuables, of which $54,000 was accepted and another $65,000 that the defendants planned to accept, from two cooperating witnesses (CW-1 and CW-2). In exchange for the payments, Tony Mack agreed to, and did, assist CW-1 and CW-2 in their efforts to acquire a City-owned lot (East State Street Lot) to develop an automated parking garage (the Parking Garage Project). The scheme included a plan to divert $100,000 of the purchase amount that CW-2 had indicated a willingness to pay to the City of Trenton for the lot as a bribe and kickback payment to Giorgianni and Tony Mack. The mayor authorized and directed a Trenton official responsible for disposition of City-owned land to offer the East State Street Lot to CW-2 for $100,000, significantly less than the amount originally proposed by CW-2.
The defendants went to great lengths to conceal their corrupt activity and keep Tony Mack “safe” from law enforcement. For example, Giorgianni and Ralphiel Mack acted as intermediaries, or “buffers,” who accepted cash payments for Tony Mack=s benefit. Tony Mack also used another City of Trenton employee involved in the scheme, Charles Hall III, 49, of Trenton, to contact other Trenton officials to facilitate the Parking Garage Project and to inform the mayor when Giorgianni had received corrupt cash payments. Hall pleaded guilty before Judge Shipp in February 2013 to an information charging him with one count of conspiracy to obstruct commerce by extortion under color of official right and one count of conspiring to distribute narcotics with others, including Giorgianni.
To conceal the corrupt arrangement, the defendants avoided discussing matters related to the scheme over the telephone. When those matters were discussed, they used code words and aliases. One such code word was “Uncle Remus,” which both Giorgianni and Hall regularly used to communicate to Tony Mack that a corrupt payment had been received. For example, on Oct. 29, 2011, Giorgianni telephoned Hall and informed him that Giorgianni had to “see” Tony Mack and that “I got Uncle Remus for him,” meaning a corrupt cash payment that Giorgianni had received from CW-1 two days earlier. Giorgianni directed Hall to bring Tony Mack to a meeting location controlled by Giorgianni (Giorgianni=s Clubhouse), stating “we gotta talk” because “I got something that might be good for him” and that “they=ve already come with Uncle Remus,” meaning a corrupt cash payment. On June 13, 2012, Giorgianni telephoned Tony Mack and informed him that “Uncle Remus,” meaning a corrupt cash payment, “was there.” Tony Mack replied, “I=ll call you, J. Okay?”@ In text messages to Tony Mack related to the scheme, Giorgianni would refer to himself as “Mr. Baker.”
The defendants also concealed their activities by holding meetings concerning the corrupt activity away from Trenton City Hall, including at Giorgianni=s residence, a restaurant maintained by Giorgianni known as JoJo=s Steakhouse, Giorgianni=s Clubhouse and Atlantic City restaurants. At one Atlantic City meeting among Tony Mack, Giorgianni, Hall and CW-2, Tony Mack instructed Giorgianni to ensure that no photographs were taken in order to conceal the corrupt arrangement.
In addition to the prison terms, Judge Shipp sentenced Tony Mack to three years of supervised release, 100 hours of community service and fined him $3,000. He sentenced Ralphiel Mack to three years of supervised release and fined him $1,500.
U.S. Attorney Fishman credited special agents of the FBI=s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney=s Office Special Prosecutions Division in Trenton and Camden, respectively.
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Defense counsel:
Tony Mack: Mark G. Davis Esq., Hamilton, N.J.
Ralphiel Mack: Robert Haney, Princeton Junction, N.J.Topeka Man Pleads Guilty to Arranging Fraudulent MarriagesRead the Press Release
TOPEKA, KAN. - A Topeka man has pleaded guilty to arranging fraudulent marriages for foreign nationals who wanted to become United States citizens, U.S. Attorney Barry Grissom said today.
Quong Bow Low, 75, Topeka, Kan., pleaded guilty in U.S. District Court in Topeka to one count of conspiracy to commit marriage fraud. In his plea, he admitted that from 1992 to 2013 he facilitated fraudulent marriages between U.S. citizens and foreign nationals. Investigators identified approximately 40 arranged marriages in which he was involved. Foreign nationals used the marriages to obtain, or attempt to obtain, status as lawful permanent residents.
Low’s services included locating a U.S. citizen to participate in the fraudulent marriage, providing documentation in support of the marriage, and instructing the foreign national and the citizen on the immigration interviews they would face with U.S. Citizenship and Immigration Services, USCIS.
Low provided one client with a price list including $6,000 to $7,000 to begin the process and find a U.S. citizen who would participate in the fraudulent marriage, $500 per month between the marriage and the interview to keep the U.S. citizen involved, $6,000 to $8,000 for coaching and services related to the permanent residency interview and a final lump sum of several thousand dollars when the client received permanent residence status.
Low admitted providing supporting documentation for the legitimacy of the marriages, including a lease of an apartment in the basement of his home and congratulation cards addressed to the participants in the fraudulent marriage. Investigators found records indicating Low was a witness for at least 12 marriages, served as a financial sponsor for at least four marriages, provided a lease for his basement apartment for at least four marriages, let the couples list his residence as their own on at least 13 marriages.
Sentencing is scheduled for Aug. 1, 2014. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended the Department of Homeland Security and Assistant U.S. Attorney Christine Kenney for their work on the case.
“Marriage fraud is a serious crime that exploits our nation’s immigration system and poses a vulnerability to our security,” said Special Agent in Charge Gary Hartwig, of Homeland Security Investigations in Chicago. “HSI will continue to identify and arrest individuals whose actions violate U.S. immigration laws.”Taunton Man Sentenced to 17 Years for Child Pornography OffensesRead the Press Release
BOSTON – A Taunton man was sentenced today for producing and transporting child pornography.
David McLellan, 31, of Taunton, was sentenced by U.S. District Judge Rya Zobel to 17 years in prison and 15 years of supervised release. In February 2014, McLellan pleaded guilty to sexual exploitation of children and transportation of child pornography.
After an undercover agent downloaded child pornography on a peer-to-peer file sharing network from McLellan, federal agents obtained a search warrant for McLellan’s residence and seized multiple items of computer media. Computer forensic examination revealed McLellan possessed six million images of child pornography and child erotica of prepubescent children and infants.
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 Assistant U.S. Attorney Eve A. Piemonte Stacey of Ortiz's Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stockton Man Sentenced to over 7 Years in Prison for Federal Firearm ChargeRead the Press Release
SACRAMENTO, Calif. — Barry Rhodes, 28, of Stockton, was sentenced today by United States District Judge Morrison C. England Jr. to over 7 years and three months in prison for being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, on March 9, 2013, in the city of Stockton, an officer pulled over Rhodes’s 1999 Buick Regal for an expired vehicle registration. Rhodes was unable to provide his driver’s license. The officer discovered that Rhodes had a suspended license, two outstanding arrest warrants, and was on active searchable probation. A search of the vehicle uncovered a 9 mm Sig Sauer semi-automatic handgun and a 15-round magazine with 12 live rounds of ammunition inside. Rhodes has five felony convictions since 2004.
This case is the product of an investigation by the Stockton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
“Today’s sentencing demonstrates our continued effort to apprehend violent offenders and to keep our citizens and our streets safe,” said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge, Joseph M. Riehl. “Our expertise in firearms investigations is a valuable asset we bring to the program as we continue our fight against violent crime with our partners.”
This case is the product of “Operation Gideon IV,” an ATF initiative targeting violent criminals and criminal organizations operating in Stockton. Experienced undercover ATF special agents from throughout the U.S. were deployed with local ATF agents and Stockton police officers to conduct covert investigations into violent criminals in Stockton and surrounding areas. As a result of this partnership, 52 defendants were charged federally, and 19 others were charged in state prosecutions. The operation also resulted in the collective seizure of 84 firearms, 36 pounds of methamphetamine, and 21 pounds of marijuana.
Stockton Couple Plead Guilty to Charges Stemming from Large-Scale U.S. Mail Theft and Bank Fraud InvestigationRead the Press Release
SACRAMENTO, Calif. — Stockton residents Rudy A. Trujillo, 35, and Regina L. Perea, 34, pleaded guilty today to three counts each of aggravated identification theft related to the fraudulent use of identification documents of others, United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by the Stockton office of the United States Postal Inspection Service and the San Joaquin County Sheriff's Office with assistance from the Stockton and San Jose police departments, the Placer County Sheriff's Office, and the Delta Regional Auto Theft Task Force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: "We are working closely with the U.S. Attorney's Office and our partners in law enforcement to arrest and prosecute all those responsible for stealing U.S. Mail and using the contents of stolen U.S. Mail in furtherance of fraud and identity theft crimes."
According to court documents, Trujillo and Perea possessed hundreds of pieces of stolen U.S. mail, along with hundreds of stolen checks, credit cards and identification documents at their Stockton residence. During the January 21, 2014, search of their residence, law enforcement recovered the stolen mail and found evidence indicating that the defendants were altering checks, and manufacturing credit cards. During the search, Trujillo and Perea successfully fled from law enforcement, and a high-speed chase ensued through Stockton residential streets. On March 7, 2014, Trujillo and Perea were arrested in San Jose. Upon arrest, the defendants were driving a stolen vehicle with stolen license plates and were again in possession of a large quantity of stolen U.S. mail, checks, credit cards, and identification documents. Perea had assumed the identity of at least two additional female victims while she and Trujillo were on the run from law enforcement.
Trujillo and Perea are scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 7, 2014. They face a mandatory minimum sentence of 24 months for each of the three aggravated identity theft convictions. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
South Holland Man Sentenced to Nearly 17 Years in Prison for Illegally Trafficking Hundreds of Guns from Indiana to ChicagoRead the Press Release
CHICAGO ― A south suburban man was sentenced to nearly 17 years in federal prison for buying hundreds of high-powered firearms at guns shows in Indiana and illegally transporting them to Chicago where he sold them without a federal firearms dealer license. The defendant, DAVID LEWISBEY, was sentenced late yesterday in U.S. District Court.
After a two-week trial last September, Lewisbey, 24, of South Holland, was convicted of dealing firearms without a federal license, two counts of illegally transporting firearms across state lines, and two counts interstate travel to sell guns without a license.
“This case is a perfect example of where the guns come from . . . and into the hands of gangbangers who then shoot them and kill and wound people,” U.S. District Judge Ronald Guzman said before imposing a 200-month sentence.
“During one of the deadliest years in Chicago’s history, the defendant was pumping numerous unregistered and untraceable firearms into the most violent neighborhoods in Chicago. The defendant ran his business on the side streets and back alleys of Chicago’s neighborhoods. No background checks, no receipts, no written record,” Assistant U.S. Attorneys Bethany Biesenthal and Christopher Parente argued in a sentencing memo.
Evidence at the trial showed that between January 2008 and September 2012, Lewisbey, who had no criminal record that disqualified him from buying firearms, routinely traveled to various gun shows in Indiana and purchased duffle bags full of guns that he brought back to Chicago. A government witness testified that he personally observed Lewisbey buy more than 100 firearms, as well as dozens of high-capacity magazines, at Indiana gun shows.
During just one 48-hour period, on April 22-23, 2012, Lewisbey bought 43 guns in Indiana and brought them to Chicago, where he delivered them to co-defendant LEVAINE TANKSLEY, who with two other co-defendants, sold them to an individual who was cooperating with ATF agents. All of those guns were recovered by law enforcement.
Last month, Judge Guzman sentenced Tanksley, 29, of Chicago, to more than 11 years in prison, and CHARLES LEMLE, 28, of Chicago to 10 years in prison. MICHAEL HALL, 29, of Chicago, who cooperated with the government and testified against Lewsibey is awaiting sentencing. Tanksley, Lemle, and Hall each pleaded guilty to illegally possessing firearms as previously convicted felons.
Lewisbey’s sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Chicago Office of the Federal Bureau of Investigation, the Chicago Police Department, and the Illinois State Police assisted in the investigation, which was conducted with the Chicago High Intensity Drug Trafficking Task Force (HIDTA).
Smuggler Pleads Guilty to Causing Deadly Tragedy at SeaRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Rear Admiral John H. Korn, Commander, 7th Coast Guard District (USCG), announce today the guilty plea of Naaman Davis, 53, of the Bahamas, to one count of encouraging and inducing aliens to enter the United States resulting in death, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv), and one count of aiding and assisting an aggravated felon to enter the United States, in violation of Title 8, United States Code, Section 1327.
According to the stipulated statement of facts filed with the Court, the defendant drove a migrant smuggling vessel from Bimini, Bahamas to South Florida on the evening of October 15, 2013. Prior to leaving the Bahamas, the defendant consumed some quantity of rum. The vessel stalled several times throughout the voyage, and the defendant smoked crack-cocaine one of the times that the vessel stalled. Seven nautical miles off of Miami, the vessel began taking on water and lost stability. The defendant and another individual identified as George Lewis jumped overboard shortly before the vessel capsized. Five of the thirteen migrants onboard became trapped underneath the capsized vessel, four of whom ultimately died.
Lewis and three other individuals onboard the vessel that night also pled guilty to their conduct relating to this case. Specifically, George Lewis, 38, of the Bahamas, Matthew Williams, 31, Everton Jones, a/k/a “Everton Bryce,” 41, and Kenard Hagigal, 36, each of Jamaica, pled guilty to illegal reentry into the United States by an aggravated felon, in violation of Title 8, United States Code, Section 1326(a) and (b)(2). They each await sentencing by United States District Judge Kathleen Williams. A fifth individual, Sean Gaynor, 37, of Jamaica, pled guilty to illegal reentry into the United States, in violation of Title 8, United States Code, Section 1326(a), and was sentenced to time served.
At sentencing, Davis faces a statutory maximum sentence of life imprisonment. Lewis, Williams, Jones and Hagigal face a statutory maximum sentence of twenty years imprisonment.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the USCG. This case is being prosecuted by Special Assistant U.S. Attorney Kelly Blackburn.
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.
Six Miami-Area Residents Plead Guilty to Mortgage Fraud Scheme Involving Four Condominium DevelopmentsRead the Press Release
Six Miami-area residents, including three former loan officers, pleaded guilty in the Southern District of Florida this week to participating in a fraudulent scheme designed to enrich real estate developers by selling condominium units to straw buyers.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Special Agent in Charge Phyllis Robinson of the Department of Housing and Urban Development’s Office of the Inspector General (HUD-OIG) in Miami and Acting Inspector General Michael P. Stephens of the Federal Housing Finance Agency (FHFA) made the announcement.
Today, Leidy Masvidal, 42, of Miami, pleaded guilty before U.S. District Court Judge Marcia G. Cooke to conspiring to commit bank fraud. Sentencing is scheduled for Sept. 24, 2014. Alfredo Jesus Chacon, 48, of Orange Park, Florida, and Francisco Martos, 63, and Dorian Wong Magarino, 49, both of Miami, also pleaded guilty today to conspiring to commit wire fraud and mail fraud before U.S. District Court Judge Ursula Ungaro. Sentencing is scheduled for Aug. 1, 2014.
On May 14, 2014, Tania Masvidal, 49, and Douglas Ponce, 40, both of Miami, each pleaded guilty before Judge Cooke to conspiring to commit bank fraud. Sentencing is scheduled for July 30, 2014.
According to the defendants’ plea agreements and other court documents, the defendants participated in a scheme to pay straw buyers to submit false loan applications to lending institutions to purchase condominiums owned by co-conspirators. Leidy Masvidal and Tania Masvidal used a mortgage brokerage they owned, EZY Mortgage Inc., to arrange financing for the purchases. Because the straw buyers were not credit-worthy, the Masvidals secured loans in their names by submitting to lending institutions loan applications and other fraudulent documents containing false statements about the buyers’ income, employment and assets, and falsely stating that the buyers intended to reside in the properties. Additionally, the Masvidals enabled their co-conspirators to secretly fund the buyers’ obligations to pay money at closing (known as “cash to close” obligations) by establishing shell corporations, which the co-conspirators used to funnel cash from conspirators to the escrow account used at closing, as well as paying the straw buyers. The co-conspirators compensated the Masvidals for their role in the scheme by sending kickback payments taken from the loan proceeds to the Masvidals’ shell corporations for every straw buyer identified.
According to admissions in court records, Martos was a former loan officer at a mortgage company known as State Lending who helped secure financing for straw buyers in exchange for kickbacks by procuring false employment documents and by including false information in buyers’ loan applications. Chacon and Ponce recruited straw buyers to purchase properties owned by co-conspirators in exchange for kickbacks paid from the sales proceeds. Chacon also allowed a company that he controlled to be used as a false employer for the straw buyers. Magarino accepted payments to act as one of Chacon’s straw buyers and recruited other straw buyers into the scheme. For the properties in which Margarino acted as the straw buyer, he represented to the lender that he personally met his cash-to-close obligations when in fact he knowingly paid these costs with funds supplied by conspirators.
Many of the straw buyers defaulted on their loans after the conspirators stopped making their mortgage payments on their behalf, causing millions of dollars in losses to lenders.
On March 31, 2014, Luis Mendez, Stavroula Mendez, Luis Michael Mendez, Lazaro Mendez, Marie Mendez, Wilkie Perez and Enrique Angulo were indicted in the Southern District of Florida for their alleged participation in this scheme. They have pleaded not guilty and trial is currently set for Sept. 8, 2014. The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by HUD-OIG and FHFA-OIG. The case is being prosecuted by Trial Attorneys Gary A. Winters and Brian Young of the Criminal Division’s Fraud Section.Singapore Shipping Company and Crew Member Responsible for Oily Waste Discharge Are SentencedRead the Press Release
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Singapore-based ODFJELL ASIA II PTE LTD. and a senior crew member of one of its ships were sentenced yesterday in federal court in Hartford, Conn., for violating the Act to Prevent Pollution from Ships (APPS), announced United States Attorney Deirdre M. Daly, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division Robert G. Dreher, and Rear Admiral Daniel B. Abel, Commander of the First Coast Guard District in Boston. ODFJELL was sentenced to a term of probation and ordered to pay a $1.2 criminal penalty, and the crew member, Ramil Leuterio, was sentenced to three months of imprisonment. ODFJELL and Leuterio pleaded guilty on March 3, 2014.
According to court documents and statements made in court, ODFJELL ASIA II PTE LTD. (ODFJELL) operated the M/T Bow Lind, a 577-foot, 26,327 gross ton petroleum/chemical tanker ship. On November 6, 2012, the U.S. Coast Guard boarded the vessel in New Haven to conduct an inspection. The inspection and subsequent criminal investigation revealed that three times between October 2011 and October 2012, while in international waters, the vessel discharged machinery space bilge water directly into the sea. At the direction of senior engineer Leuterio, crew members bypassed pollution prevention equipment that was in place to ensure that any discharged bilge water contain less than 15 parts per million of oil. The illegal discharges were then concealed by misleading entries and omissions in the vessel’s oil record book.
According to several engine room crew members, Leuterio directed them to use a complex system to transfer the bilge water from the bilge holding tank to the sewage tank. From the sewage tank, the bilge water was dumped directly into the sea without passing through pollution prevention equipment. Once the bilge holding tank was emptied, Leuterio directed the lower ranking crew members to put clean fresh water and salt water into the tank. As the pollution prevention equipment automatically records the time it is being operated, Leuterio then processed the clean water through the prevention equipment, thereby creating an electronic record to account for the bilge water that had bypassed the equipment and been discharged directly overboard.
U.S. District Judge Vanessa L. Bryant sentenced ODFJELL to a three-year term of probation and ordered the company to pay a criminal penalty totaling $1.2 million, including $300,000 that will be directed to The National Fish and Wildlife Foundation to fund projects aimed at the preservation and restoration of the marine environment of Long Island Sound.
As a condition of probation, ODFJELL will implement an environmental management plan which will ensure that any ship operated by ODFJELL calling on a port of the United States complies with all maritime environmental requirements established under applicable international, flag state, and port state laws. The plan ensures that ODFJELL’s employees and the crew of any vessel operated by ODFJELL that calls on a United States port are properly trained in preventing maritime pollution. An independent monitor will report to the court regarding ODFJELL’s compliance with these obligations during the period of probation.
Leuterio, 42, a citizen of the Philippines, will be deported after he serves his three-month prison term.
The government has requested that Judge Bryant award a portion of the criminal fine imposed to two M/T Bow Lind crew members who notified the Coast Guard of the criminal conduct on board the vessel, and whose information led directly to the convictions obtained in this matter. Judge Bryant will rule on the government’s motion after further court proceedings.
This case was investigated by the U.S. Coast Guard Sector Long Island Sound, Coast Guard Investigative Service, and Coast Guard office of Investigations and Analysis (CG-INV). The case is being prosecuted by Assistant U.S. Attorney Paul H. McConnell from the U.S. Attorney’s Office for the District of Connecticut and Trial Attorney Stephen Da Ponte in the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice.
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[email protected]Sentencing for May 8 - 15, 2014Read the Press Release
Jose Gabriel Martinez-Sanchez, 23, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 15, 2014, for illegal re-entry of a previously deported alien into the United States. Martinez-Sanchez was arrested in Jackson, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Janet Lea Lilly, 50, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 8, 2014, for conspiracy to possess with intent to distribute, and to distribute methamphetamine. Lilly was arrested in Gillette, Wyoming. She received 87 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Robert William Bower, 28, of Evanston, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 8, 2014, for conspiracy to possess with intent to distribute, and to distribute, at least 500 grams to 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Bower was arrested in Evanston, Wyoming. He received 78 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Security Guard Sentenced to 15 Years in Prison for Coercing and Enticing Minors into ProstitutionRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Naba Raheem Lewis (34, Tampa) was sentenced to 15 years in federal prison for coercing and enticing a minor to engage in sexual activity. Lewis pleaded guilty to this offense on January 24, 2014.
According to the plea agreement, on June 12, 2013, the Tampa Police Department received a 911 call in reference to a room at the Americas Best Value Inn & Suites. While conducting the investigation, officers made contact with two 16-year-old females and a baby. Further investigation determined that Lewis had met one of the minors on an Internet website, in June 2013. Lewis had browsed the site and found the minor’s Internet profile, then utilized the information to send her a private message. Lewis informed the minor that he was reviewing her photographs online and noticed that she had a child. He told her that he knew how she could make money to help care for her child.
Lewis subsequently obtained sexually explicit photos of the minor victim and her friend. Lewis then posted an Internet advertisement listing his telephone number so that he could schedule dates for the minor victims to meet men and have sex with them in exchange for money. To facilitate the crimes, Lewis rented two hotel rooms at the Americas Best Value Inn & Suites. One room was used for Lewis and the minors to sleep, while the other room was designated for prostitution. Lewis took all of the money that the minors earned from prostitution and stashed it in one of the hotel rooms.
During the investigation, law enforcement determined that Lewis attempted to recruit numerous females into prostitution using his social media accounts. At least one of the unidentified females was determined to be 15 years old.
This case was investigated by the Tampa Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
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.
School Proctor Sentenced to Prison in Student Financial Aid Fraud SchemeRead the Press Release
Three Defendants Convicted for Changing Test Scores to Qualify Students for Federal Grants
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jacqualyn Sue Caldwell, age 55, of Baltimore, today to a year and a day in prison, followed by three years of supervised release, for conspiring to defraud a student financial aid program.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Steven Anderson, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General Mid-Atlantic Regional Office.“Students without high school diplomas who applied for financial aid to attend trade schools were required to pass the Ability to Benefit test and demonstrate their aptitude to complete the educational program and work in the field,” said U.S. Attorney Rod J. Rosenstein. “By cheating, the defendants defeated the purpose of the tests and defrauded the government.”
Caldwell was a test administrator for a company that offered cognitive tests to schools and businesses. During her employment, Caldwell worked almost exclusively as a test proctor for student admissions at the All-State Career School, a for-profit trade school located on Broening Highway in Baltimore.
Students who applied for federal financial aid at All-State were required to have a high school diploma, possess a GED, or pass a designated Ability to Benefit (ATB) test. Caldwell was certified to administer the ATB test onsite at All-State’s campus. Her duties did not include scoring the tests; rather, she was to collect the students’ answer sheets, seal them in an envelope and mail them to her company’s headquarters in Illinois, where they were scored and the results sent back to All-State. The ATB test used a Scan Tron answer sheet that required students to use pencils to fill in circles next to the correct answers. Student applicants who initially failed the ATB test could take it again.
According to Caldwell’s plea agreement, soon after starting her job as a test proctor at All-State in 2008, an All-State admissions representative asked Caldwell for an applicant’s answer sheet so that the representative could change some of the applicant’s answers to allow the applicant to pass the test. Caldwell agreed. Caldwell allowed the representative access to the answer sheet by not sealing the envelope containing the applicants’ answer sheets and leaving the envelope on the receptionist’s desk. After the admissions representative corrected the applicant’s wrong answers, the representative put the answer sheet back into the envelope, sealed it and left it to be mailed. Thereafter, this process was repeated by the representative for other applicants. Caldwell also agreed to employ the same process for a second representative.
Subsequently, a second representative suggested, and Caldwell agreed, that Caldwell erase and change just enough incorrect answers to provide a passing grade for student applicants taking the test for a second time. The representative provided Caldwell with a completed Scan Tron answer sheet and told Caldwell which student applicants were taking the test for a second time, so that Caldwell could correct their answer sheets.
Although the first two representatives agreed not to tell anyone that Caldwell was changing test scores for their student applicants, a third admissions representative asked Caldwell to change scores on answer sheets, which Caldwell agreed to do. Thereafter, Caldwell was continuously approached in the hallways by the three admissions representatives about “helping” a student pass the ATB test on the second try, and Caldwell agreed to do it every time.
According to Moore’s plea agreement, Moore learned through another admissions representative that Caldwell could ensure that students who failed the ATB the first time would pass it the second time. Between January and December 2011, Caldwell agreed to Moore’s requests to help prospective students pass the test the second time.
During her tenure at All-State from 2008 to December 2011, Caldwell changed the answer sheets for approximately 170 students. Approximately 102 of them went on to enroll at All-State and became eligible to receive federal financial aid in the form of Pell Grants and student loans. Approximately 72 of those students received financial aid totaling approximately $572,255.
All-State admissions representatives Jesse Raymond Moore, Sr., age 30, of Crofton, Maryland and Barry Sugarman, age 63, of Owings Mills, each pleaded guilty to the conspiracy. Moore and Sugarman were paid a salary by All-State and were eligible for performance-based raises and commissions for each student that graduated. Moore and Sugarman admitted that they asked Caldwell to manipulate the test results to give applicants taking the test a second time a passing score, which she did. Sugarman also told prospective students to understate their income from previous years when they applied for federal aid in order to qualify for the maximum amount of Pell grants and student loans. Moore was sentenced to four years probation and ordered to pay a $2,000 fine. Sugarman was sentenced to two years probation and ordered to pay a $5,000 fine.
United States Attorney Rod J. Rosenstein praised the FBI and Department of Education, Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Martin Clarke, who is prosecuting the cases.
San Antonio Man Sentenced to Federal Prison for Distributing Child PornographyRead the Press Release
In San Antonio, 32-year-old Jorge Pena, Jr., was sentenced to 150 months in federal prison followed by 25 years of supervised release for distributing child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala.
Court records reflect that HSI agents who were conducting an investigation into on-line exploitation of minors executed a search warrant at the defendant’s residence in February 2012 and seized several computers and related equipment. A subsequent forensics examination of the seized items revealed the presence of hundreds of videos and images depicting sexual exploitation of pre-pubescent children.
On March 12, 2014, Pena pleaded guilty to one count of distribution of child pornography. By pleading guilty, Pena admitted to viewing child pornography since approximately 2005 and knowingly distributing at least 19 files which contained child pornography to other individuals via the Internet.
“By conducting these types of investigations, HSI is taking child predators off the Internet, off the streets, and putting them behind bars,” said Special Agent in Charge, Janice Ayala, HSI San Antonio. “Targeting these 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 that traumatize and victimize children.”
This case was investigated by special agents with HSI and prosecuted by Assistant United States Attorney Tracy Thompson.
Rindge Man Pleads Guilty to Tax EvasionRead the Press Release
In Connection With Fraudulent Investment OperationCONCORD, NEW HAMPSHIRE – Aaron E. Olson, 39, of Rindge, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to four counts of tax evasion, announced United States Attorney John P. Kacavas.
Beginning in 2007 through 2010, Olson was the sole proprietor of an investment business that did business as AEO Associates (AEO). In December of 2010, he formed KMO Associates LLC (KMO), an investment business that was registered in Massachusetts. Olson ran both operations from an office in Jaffrey, New Hampshire. Olson used AEO and later KMO to obtain approximately $27.8 million from individuals and organizations ostensibly to invest on their behalf. Olson was not licensed as an investment broker in New Hampshire or in any other jurisdiction and he did not register AEO and KMO with the State of New Hampshire as investment businesses.
Olson used approximately $2.6 million of the investors’ money for his personal benefit and used some of the investors’ money to make fraudulent “earnings” payments to other investors. To conceal this conduct, Olson sent investors fictitious earnings statements that falsely showed significant earnings in their accounts.
Olson also filed false and fraudulent joint individual tax returns with the IRS in which he attempted to evade or defeat taxes he owed based on his income from the fraudulent investment operation. Among other things, Olson failed to report the gross receipts and expenses associated with the operation of AEO and KMO and he failed to issue Forms 1099 with the Internal Revenue Service summarizing investors’ annual gains and losses. In total, Olson fraudulently understated the income taxes he owed for the four years by more than $664,000.
Olson is facing a maximum sentence of five years in prison and a maximum fine of $250,000 on each charge. Additionally, Olson may be ordered to pay restitution to the defrauded investors in lieu of paying the taxes he owes to the United States. He is scheduled to be sentenced in September 2014.This case is being investigated by the office of Criminal Investigations for the Internal Revenue Service in conjunction with the New Hampshire Bureau of Securities Regulation and is being prosecuted by Assistant United States Attorney Mark S. Zuckerman.
Richmond Man Sentenced for Theft of Copper from VARead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Derek
Less, 26, of Richmond, Maine, was sentenced today in U.S. District Court in Bangor to time
served, up to six months of community confinement and three years of supervised release for
stealing copper from facilities operated by the U.S. Department of Veterans Affairs (VA) in
Togus, Maine. He was also ordered to pay $2,590.30 in restitution. The defendant has been
detained since his arrest on November 19, 2013.According to court records, in July and August 2012, the defendant stole over 400 pounds
of copper wire and pipe fittings from the VA and sold them to Clark’s Cars & Parts, Inc. to
support his drug addiction.The investigation was conducted by the VA’s Criminal Investigation Division, Office of
Inspector General.Portland Man Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Biniam
Tsegai, 26, of Portland, pled guilty today in United States District Court before Judge Nancy
Torresen to conspiring to distribute cocaine base, also known as crack cocaine.According to court records, in 2011 and 2012, the defendant was part a drug trafficking
conspiracy that acquired cocaine in Boston and distributed crack cocaine in the greater Portland
area. He prepared crack cocaine for sale and distribution after it had been brought to Maine and
he took orders for and delivered user-level quantities of crack cocaine to customers.
He faces up to 40 years in prison and a $5,000,000 fine. He will be sentenced after
completion of a pre-sentence investigation report by the United States Probation Office.The investigation was conducted by the Federal Bureau of Investigation (FBI), the
Portland Police Department, the Maine Drug Enforcement Agency, the Maine State Police and
the Southern Maine Gang Task Force, which is a task force comprised of agents and officers
from FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Homeland
Security, U.S. Drug Enforcement Administration and the Portland and Biddeford Police
Departments.Philadelphia Man Charged with Attempting to Disable Mass TransitRead the Press Release
Nicolas Colon, 23, of Philadelphia, Pennsylvania, was charged today by indictment with one count of disabling and attempting to disable a mass transportation vehicle and one count of conveying false information concerning an attempt to disable a mass transportation vehicle, announced United States Attorney Zane David Memeger.
According to the indictment, on or about March 16, 2014, Colon placed objects and debris on the subway train tracks of the Broad Street Line of the Southeastern Pennsylvania Transportation Authority (“SEPTA”). On or about March 18, 2014, Colon allegedly provided a false name, false date of birth, and false Social Security number to law enforcement officers investigating the Broad Street Line incident.
If convicted of both counts, Colon faces a maximum possible sentence of 40 years in prison, a $500,000 fine, three years of supervised release and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force in Philadelphia, including the SEPTA Transit Police Department. The case is being prosecuted by Assistant United States Attorney Vineet Gauri.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
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Peabody Investment Advisor Pleads Guilty to Defrauding ClientsRead the Press Release
BOSTON – A Peabody investment advisor pleaded guilty today to defrauding several Boston-area residents out of their retirement savings.
John Michael Babiarz, 40, of Peabody, pleaded guilty before U.S. District Judge F. Dennis Saylor, IV to wire fraud and aggravated identity theft. In December 2013, Babiarz was arrested and charged. He is scheduled to be sentenced on August 1, 2014.
Following his termination in September 2011from Bishop, Rosen & Co., a retail brokerage firm headquartered in New York, Babiarz falsely told some of his former clients that he had taken a job at Fidelity Investments, the Boston-based asset management firm. Babiarz told other clients that he was working as an independent financial advisor. Babiarz told his clients that he could continue to manage their money if they opened online brokerage accounts at Fidelity. Babiarz assisted the individuals in opening such accounts online, and in so doing, set up the user names and passwords for those accounts. Unbeknownst to his clients, Babiarz then caused their funds – or money he borrowed in their names on margin – to be diverted to accounts that he controlled at several other banks and brokerage firms. Babiarz used the money to buy a new home and a car, and to pay other personal expenses.
Babiarz was previously charged in an administrative complaint brought by the Massachusetts Securities Division with engaging in unregistered and fraudulent activities in violation of the Massachusetts Uniform Securities Act and applicable regulations.
Babiarz faces a maximum sentence of 20 years in prison, three years of supervised release and a $250,000 fine, or twice the gross gain or loss from the offense on the wire fraud charge and a mandatory consecutive term of two years in prison, one year of supervised release, and a fine of $250,000 on the charge of aggravated identity theft.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant United States Attorney Stephen E. Frank of Ortiz’s Economic Crimes Unit.
Passaic County, N.J., Man Admits Distributing Images of Child Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A Wayne, N.J., man admitted today to sharing images of child sexual abuse from his home computer, U.S. Attorney Paul J. Fishman announced.
Manuel Fernandez, 33, pleaded guilty today before U.S. District Judge Jose L. Linares in Newark federal court to one count of an indictment charging him with distributing images of child pornography over the Internet. Fernandez has been in custody since his arrest in January 2012.
According to documents filed in the case and statements made during Fernandez’s guilty plea proceeding:
Fernandez admitted that between March 2011 and January 2012, he was a member of an online peer-to-peer file sharing network. Fernandez also admitted he made images and videos of child pornography available for other members to download from his “shared” folder. On March 24, 2011, an undercover law enforcement agent successfully downloaded multiple images and videos of child sexual abuse from Fernandez’s computer.
On Jan. 25, 2012, federal law enforcement agents executed a search warrant at Fernandez’s residence. The agents recovered a 1-terabyte hard drive and a 250-gigabyte computer tower, both of which contained numerous images and videos of minor children being sexually abused.
As part of his guilty plea, Fernandez agreed to forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.
The distribution of child pornography count to which Fernandez pleaded guilty carries a mandatory minimum penalty of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Aug. 19, 2014.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Chris Adams Esq. Holmdel, N.J.
Fernandez, Manuel Indictment
Owner of Smoke Shops in Bakersfield, Fresno and Visalia Pleads Guilty to Fraud Relating to the Sale of Synthetic DrugsRead the Press Release
FRESNO, Calif. — Victor Anthony Nottoli, 51, of Hillsborough, Calif., pleaded guilty today to one count of conspiracy to defraud the United States and one count of causing at least 24 tons of misbranded smokable synthetic cannabinoids (SSC) to be introduced into interstate commerce. Four defendants arrested last week for manufacturing and distributing SSC were indicted today. The guilty plea and the indictments were announced by United States Attorney Benjamin B. Wagner; Jeffrey J. Fitzpatrick, Special Agent in Charge of the San Francisco Field Division of the U.S. Drug Enforcement Administration; Jose Martinez, Special Agent in Charge of the Oakland Field Office, Internal Revenue Service, Criminal Investigation; and Clark E. Settles, Special Agent in Charge of the San Francisco Field Office of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations.
Nottoli pleaded guilty to one count of conspiracy to defraud the United States by interfering with the lawful governmental regulatory and enforcement functions of the FDA and DEA. According to court documents, between April 1, 2011, and June 26, 2013, Nottoli generated more than $20 million by distributing the SSC products commonly known as K2 or spice in retail outlets throughout the U.S. and from his six smoke shops doing business under the name “The Stuffed Pipe,” and located at 5135 W. Shaw Ave., Fresno; 2377 E. Shaw Ave., Fresno; 7273 N. Blackstone Ave., Fresno; 516 E. Olive Ave., Fresno; 1318 S. Mooney Ave., Visalia; and 3719 Wilson Rd., Bakersfield. In 2012, Nottoli bought a Florida company that manufactured and distributed SSC products and brought the production and distribution operations to a warehouse in Millbrae, Calif. Then in January 18, 2013, Nottoli leased a warehouse in Stockton and began manufacturing and distributing SSC products from that location.
According to court documents, Nottoli and his co-conspirators manufactured and distributed SSC products containing hallucinogenic chemical compounds AM‑2201 and XLR11. They referred to the SSC products as herbal incense, spice, botanicals, and potpourri and marketed them under names such as “Bizarro,” “Posh,” “Sonic Zero,” “Headhunter,” “Neutronium,” and “Orgazmo.” The products were labeled, “Not for Human Consumption.”
As charged in count two, Nottoli pleaded guilty to causing misbranded SSC products or drugs to be introduced into interstate commerce. According to court documents, between August 1, 2012, and June 26, 2013, twenty-four tons of misbranded drugs intended for human consumption were packaged and sold without the labeling required by law and necessary to protect the user such as: the place of business of the manufacturer, packer, or distributor; an accurate statement of the contents; adequate directions for use; warnings against use by children or where its use may be dangerous to health; warning against unsafe dosage; or methods or duration of administration or application.
In pleading guilty, Nottoli specifically agreed to the forfeiture of more than $6.6 million of drug proceeds: $6,488,000 in cash and $191,000 in other assets, including a truck and an Airstream Trailer.
Also today, a federal grand jury indicted Douglas Jason Way, 41, of Evanston, Ill.; Timothy Ortiz, 43, of Waukegan, Ill.; Timothy New, 31, of Pensacola, Fla.; and Natalie Middleton, 28, of Clovis, Calif., for their roles in Nottoli’s synthetic drug enterprise. The indictment charges Way, Ortiz, and New with conspiring to manufacture and distribute synthetic cannabinoids and with manufacturing, distributing, and attempting to possess with intent to distribute SSC products. Middleton, along with Way, Ortiz, and New, are also charged with causing the introduction of misbranded drugs into interstate commerce. Middleton individually was charged with engaging in a monetary transaction in property derived from drug trafficking to buy a time share in Lake Tahoe, Nevada.
“The use of synthetic or designer drugs has increased dramatically among teenagers and young adults. Although synthetic cannabinoids are marketed as ‘legal’ alternatives to marijuana, they are not only illegal but can be extremely harmful,” U.S. Attorney Wagner said. “We are committed to working with our law enforcement partners to shut down the manufacturers and distributors who reap tremendous profits without regard for the law or public safety.”
If convicted of the drug charges, Way, Ortiz, New, and Middleton face a maximum statutory penalty of 20 years in prison and a $1 million fine or twice the gain. The maximum statutory penalty for money laundering is 10 years in prison and a $250,000 fine. The FDA mislabeling charge carries a maximum penalty of three years in prison and a $10,000 fine or twice the gross gain. Any sentence imposed would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Way, Ortiz, and Middleton are scheduled for arraignment on May 21, 2014, in Fresno. New was ordered detained by a U.S. Magistrate Judge in Dallas, and is awaiting transportation to federal court in Fresno.
Today’s guilty plea and indictment follows on the heels of last week’s nationwide synthetic drug takedown in connection with Project Synergy Phase II. Project Synergy is a law enforcement initiative coordinated by the DEA that brings together federal, state, local, and international law enforcement resources to target the dangerous global synthetic designer drug industry.
President Obama signed the Synthetic Drug Abuse Prevention Act into law in 2012, making 26 types of synthetic cannabinoids, including AM-2201, Schedule I drugs under the Controlled Substance Act. Last May, DEA placed XLR11 in Schedule I after the Centers for Disease Control and Prevention found that acute kidney injury is associated with XLR11.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the DEA, IRS-CI, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Office of Criminal Investigations of the Food and Drug Administration (FDA) and the Fresno County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case and Assistant United States Attorney Heather Mardel Jones is handling the forfeiture of assets.
Owner of Local Advertising Company Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – CARY JORDAN was sentenced to 18 months on fraud charges involving his diversion of over $500,000 of client funds for his personal use. Additionally, he was ordered to pay restitution of $519,975.
According to court documents, Cary Jordan owned and operated the Jordan Group, which was in the business of assisting companies in placing advertisements with various print, radio, television and outdoor media companies throughout the United States and Canada. Jordan Group clients contracted them to act on their behalf in finding media outlets for their advertising campaigns. Once the Jordan Group located media outlets in the appropriate geographical location for the advertising campaigns, they negotiated with the media outlets on behalf of its clients and invoiced a pre-bill to the client based on the price and estimated number of advertising spots negotiated with the media outlets. In turn, clients paid the Jordan Group based on the pre-bill. After the ads ran, the media outlets invoiced the Jordan Group based on the price and actual number of advertising spots that ran. The Jordan Group then made payment to the media outlet from the funds it received from its client due to the pre-bill.
Between January and October 2008, the Jordan Group ceased paying the media outlets for their advertising spots. Instead, Cary Jordan diverted funds for his personal use and invested in other non-related investment opportunities.
Jordan, formerly of Webster Groves, MO, currently residing in Florida, pled guilty in February to two felony counts of mail fraud. He appeared today for sentencing before United States District Judge John A. Ross.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney’s Office.
Owner of Car Dealership Sentenced to More Than 17 Years for Laundering over $3 MillionRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Samih Abdel Rahman (51, Tampa) to 17 years and 6 months in federal prison for his involvement in a conspiracy to launder approximately $3,335,898 of proceeds from stolen identity refund fraud and drug trafficking.
Rahman pleaded guilty on January 24, 2014.
According to court documents and other evidence, Rahman was the owner and operator of Sam & Sons Auto Sales, Inc., a used car dealership located in Tampa. For a period of years, beginning no later than 2008, until March 2013, Rahman, who was assisted by others, sold vehicles to customers who paid with proceeds from stolen identity income-tax refund fraud and narcotics trafficking. Knowing that the payments were derived from ill-gotten gains, Rahman laundered the money in a manner that concealed its illicit sources. An estimate of the total amount of money laundered by Rahman is $3,335,898.
Among other ways, Rahman laundered these monies by putting the title of vehicles sold at Sam & Sons in the names of "straw purchasers" – that is, someone other than the actual buyer and intended user of that vehicle. Rahman also disguised the criminal identities of the true buyers of the cars by creating and processing false paperwork for the sales, including fake bills of sales and payment receipts. When receiving cash payments of more than $10,000 of illicit proceeds, Rahman would further launder the money by structuring cash deposits. He structured the deposits in a way that avoided triggering reporting requirements by the bank. He also failed to report those transactions appropriately, as was required under federal law for a car dealership receiving that amount of cash during the sale of a vehicle.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Matthew Jackson.
Omaha Man Sentenced for Filing False Tax ReturnRead the Press Release
United States Attorney Deborah R. Gilg announced that John Main, age 62 of Omaha, Nebraska, was sentenced for making a false declaration on his 2006 tax return. The Honorable Richard G. Kopf sentenced Main to five years probation, 100 hours of community service, and six months of home confinement with an electronic monitoring device.
As the sole proprietor of Main Concrete and Construction, Main is required to file a Form Schedule C as part of his Form 1040. On his 2006 and 2007 tax returns, he underreported his gross receipts by $860,491.00. When he filed his returns, he signed a declaration under the penalty of perjury that the information contained therein was true when in fact he knew the gross receipt figures were wrong. Judge Kopf found that the amount of tax loss to the United States was $240,937 and ordered Main to pay restitution to the IRS in that amount.
“We should not forget that the ultimate victims in tax fraud cases are the American people – those honest taxpayers who diligently file tax returns and pay what they owe each year,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.
This case was investigated by IRS Criminal Investigation.
New York Physician Admits Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A physician with a practice in New York admitted today to accepting over $100,000 in exchange for test referrals as part of a massive bribery scheme operated by Biodiagnostic Laboratory Services LLC (BLS) of Parsippany, N.J., its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Michele Martinho, 39, of New York, pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging her with one count of accepting bribes.
According to documents filed in this and other cases and statements made in court:
Martinho admitted that from September 2010 through April 2013, she accepted bribes of $5,000 per month in cash in return for referring patient blood specimens to BLS, for which BLS received more than $350,000. Martinho accepted approximately $155,000 in bribes.
BLS salesman Kevin Kerekes paid the cash bribes to Martinho. Kerekes pleaded guilty to his involvement in the scheme on June 10, 2013.
The bribery count to which Martinho pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 8, 2014. As part of her guilty plea, Martinho agreed to forfeit $155,000, representing the bribes she received from BLS.
Including Martinho, 27 people – including 16 physicians – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has recovered more than $7 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS– Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Martinho, Michele Information
New York Attorney Indicted for Defrauding Two International Companies Out of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. – A New York attorney was indicted today for his role in an alleged scheme to defraud two international companies out of hundreds of thousands of dollars by fraudulently billing them for services that were never provided, U.S. Attorney Paul J. Fishman announced.
Marijan Cvjeticanin, 50, of St. James, N.Y., was indicted today by a federal grand jury in Newark on six counts of mail fraud. The government is seeking the forfeiture of all funds fraudulently obtained by Cvjeticanin as a result of the scheme. Cvjeticanin was previously arrested and charged in May 2013 by complaint with one count of mail fraud.
According to the indictment and other documents filed in this case:
From approximately September 1996 to September 2012, Cvjeticanin was employed by a New York law firm specializing in immigration law, first as a paralegal and then as an attorney. Among other clients, the firm represented two international companies – with offices in New Jersey – in connection with various immigration law matters. Cvjeticanin was the case manager handling day-to-day tasks such as filing applications for permanent residency for certain foreign workers of those companies employed in the United States on a temporary basis.
The application process required the companies to place job ads, in the geographic location where the relevant position was located, to demonstrate that there were no minimally qualified U.S. citizens available to fill that position. To do that, Cvjeticanin caused the firm to retain a supposed advertising agency, Flowerson Holdings Inc., a/k/a Flowerson Advertising, which allegedly handled all of the advertisement obligations of the companies in connection with permanent residency applications. Neither the firm nor the companies knew that Cvjeticanin owned and controlled Flowerson.
From 2010 through September 2012, the companies paid Flowerson approximately $579,000 for advertisements, but Flowerson did not place the majority of those ads. Instead, Cvjeticanin stole the money and used it for his personal benefit.
If convicted, Cvjeticanin faces a maximum potential penalty of 20 years in prison and a $250,000 fine on each of the six counts.U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, Newark Field Office, and the U.S. Department of State Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge David J. Schnorbus, with the investigation.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office General Crimes Unit in Newark and Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Lorraine Gauli-Rufo Esq., Verona, N.J.Marijan, Cjeticanin Indictment
Navy Senior Chief Sentenced for Conspiracy to Submit False Claims to the United States and Identity TheftRead the Press Release
Gulfport, Miss. – Carl E. Moore, 42, of Gulfport, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to a total of 43 months in federal prison followed by three years of supervised release for conspiracy to submit false claims to the United States and aggravated identity theft, announced U.S. Attorney Gregory K. Davis and Naval Criminal Investigative Service (NCIS) Supervisory Special Agent in Charge Tara Jasinski. Moore was also ordered to pay a $2,000 fine and restitution in the amount of $61,267.61 to the Government.
On February 24, 2014, Moore pled guilty to conspiring with others to submit false claims to the United States Department of Defense by falsifying various travel documents while serving in the Navy at the Naval Mobile Construction Battalion 74 in Gulfport, Mississippi. He also pled guilty to aggravated identity theft for using, without lawful authority, the identification of another person during and in relation to another federal felony charged in the indictment.
This case was investigated by the NCIS and prosecuted by Assistant U.S. Attorney Ruth Morgan.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Naples Man Sentenced for Making False Statements to FBIRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Brandon Todd, 20, of Naples, N.Y., who was convicted of making false statements to the Federal Bureau of Investigation, was sentenced to 12 months in prison and three years supervised release by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Jennifer M. Noto, who is handled the case, stated that the defendant called the FBI in April and early May 2013 claiming to have information about sex trafficking. Todd also claimed to be involved in sex trafficking and to have connections to a group involved in sex trafficking. Following the defendant’s calls, the FBI began an investigation into Todd’s claims. On July 10, 2013, the defendant made false statements to an FBI Special Agent that he had recruited approximately 49 girls for a sex trafficking ring and that he was a member of a gang. At the time, Todd knew that these statements were false. These false statements – concerning the nature of the defendant’s involvement in a sex trafficking ring and his affiliation with a gang - were material to the FBI’s investigation.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.Murrysville Woman Gets 8 Years in Prison for Years-Long Oxycodone Distribution SchemeRead the Press Release
PITTSBURGH - A Murrysville woman has been sentenced in federal court to 96 months imprisonment, to be followed by five years of supervised release, on her conviction of conspiracy to distribute oxycodone and health care fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence yesterday on Paula Jackson, 40.
According to information presented to the court, Jackson conspired with others to engage in a multi-year long oxycodone pill distribution conspiracy, during which Jackson obtained more than 17,000 pills. Jackson both sold the pills she obtained and consumed them. As part of the conspiracy, Jackson stole the DEA numbers of various area doctors and also used stolen health care insurance information to pay for the pills that she fraudulently obtained.
Prior to imposing sentence, Judge Cohill noted the seriousness of the offenses as well as the damage done to the doctors who had their identities stolen by Jackson.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Jackson.
Mississippi Man Pleads Guilty to Abusive Sexual Contact of A Minor Under the Age of TwelveRead the Press Release
Jackson, Miss. - Brandon Farmer, 20, a member of the Mississippi Band of Choctaw Indians, pled guilty today, before Senior U.S. District Judge Tom S. Lee, to abusive sexual contact of a minor under the age of twelve, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. The offense occurred on the tribal lands of the Mississippi Band of Choctaw Indians.
Farmer will be sentenced on July 31, 2014, and faces a maximum sentence of life in prison and a $250,000.00 fine.
This case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It is being prosecuted by Assistant U.S. Attorney Patrick Lemon..If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Member of Organization That Operated Online Marketplace for Stolen Personal Information Sentenced to 20 Years in PrisonRead the Press Release
A Phoenix man convicted after a jury trial last December of conspiracy and racketeering offenses for his involvement in a sophisticated cybercrime organization was sentenced today to serve 20 years in prison.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Claude Arnold of Homeland Security Investigations (HSI) in Los Angeles made the announcement.
David Ray Camez, 22, also known as “Bad Man” and “doctorsex,” was sentenced by U.S. District Judge Andrew P. Gordon. Camez was convicted on Dec. 6, 2013, of one count of participating in a racketeer influenced corrupt organization and one count of conspiracy to participate in a racketeer influenced corrupt organization. In addition to his prison term, he was also sentenced to serve three years of supervised release and ordered to pay $20 million in restitution.
“Camez was a member of a vast criminal organization that facilitated rampant cyber fraud throughout the world,” said Acting Assistant Attorney General O’Neil. “This organization is the new face of organized crime – a highly structured cyber network operated like a business to commit fraud on a global scale. Members, like Camez, paid to tap into the network and gain control of highly sensitive information, like compromised credit card numbers and stolen identities. Thanks to sophisticated law enforcement efforts, Camez will now pay for his crimes with decades in prison.”
“As shown in this case, cybercrime has grown into an industry and is rapidly overtaking traditional crime such as bank robbery,” said U.S. Attorney Bogden. “Cybercrime was once viewed as the crime wave of the future but in reality, that threat is here now. We will continue working with our international law enforcement partners on cases such as this to track and prosecute this new wave of thieves.”
“As this sentence demonstrates, cyber-criminals who purposely harm innocent Americans and compromise the world’s economic stability will be aggressively pursued, investigated and prosecuted – and ultimately receive the justice they deserve,” said HSI Special Agent in Charge Arnold. “This case is a stellar example of how interagency law enforcement cooperation and teamwork can successfully bring down an entire organized criminal conspiracy.”
Camez was one of 39 charged in an indictment returned in January 2012. Seven others have pleaded guilty, two are scheduled for trial in June, and the rest are fugitives. Sixteen other defendants were also charged in the scheme in three separate indictments, and 14 have pleaded guilty to date.
The target of the investigation was an organization that called itself “Carder.su.” Investigation of the Carder.su organization began in March 2007, after the United States Secret Service, operating in conjunction with Homeland Security Investigations (HSI) and other federal, state and local law enforcement agencies who participate in the Southwestern Identity Theft and Fraud Task Force (SWIFT), began investigating a pattern of credit and debit card fraud. A special agent initiated an undercover investigation called Open Market and assumed the identity as a member of the organization when it was in its infancy.
The investigation determined that members of the Carder.su organization, known as “carders,” were involved in large scale trafficking of compromised credit card account data and counterfeit identifications and credit cards, as well as money laundering, narcotics trafficking and various types of computer crime. The organization operated an Internet web portal called a forum, where members could purchase the illicitly obtained data and share knowledge of various fraud schemes. A second forum was also created to vet incoming new members. The forums were generally hosted within the former Soviet Union and the upper echelon of the organization resides within the former Soviet Union. In July 2011, the organization had an estimated 5,500 members.
Members of the organization had different roles, including moderators who directed other members in carrying out activities; reviewers who examined and tested products, services and contraband; vendors who advertised and sold products, services and contraband; and members. Members were required to successfully complete a number of security features designed to protect the organization from infiltration by law enforcement or members of rival criminal organizations. Camez became a member of the organization under the name “Bad Man” on June 22, 2008. Camez also used the name “doctorsex.” During 2009 and 2010, the undercover special agent had multiple contacts with Camez in which Camez purchased counterfeit Nevada and Arizona driver’s licenses. Investigators also intercepted and seized a package shipped to Camez from Pakistan which contained counterfeit credit and gift cards. During a search of Camez’ home in Phoenix in May 2010, agents recovered counterfeit credit cards, equipment used to manufacture counterfeit credit cards, counterfeit U.S. currency and counterfeit identification documents. A search of Camez’ computer revealed software used to encode counterfeit credit cards and stolen identity information.
In addition to the U.S. Secret Service, HSI and members of the SWIFT Task Force in Las Vegas, NASA’s Jet Propulsion Laboratory’s Computer Crimes Division also provided assistance in the investigation. The case was prosecuted by Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada.
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. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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 .# # #
Marubeni Corporation Sentenced<br /> for Foreign Bribery ViolationsRead the Press Release
Marubeni Corporation, a Japanese trading company involved in the handling of products and provision of services in a broad range of sectors around the world, including power generation, was sentenced today for its participation in a scheme to pay bribes to high-ranking government officials in Indonesia to secure a lucrative power project.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Acting U.S. Attorney Michael J. Gustafson of the District of Connecticut and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
Marubeni was sentenced by U.S. District Judge Janet B. Arterton in the District of Connecticut. Marubeni pleaded guilty on March 19, 2014, to one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and seven counts of violating the FCPA. The company signed a plea agreement in which it admitted its criminal conduct, agreed to maintain and implement an enhanced global anti-corruption compliance program and to cooperate with the department’s ongoing investigation, and agreed to pay an $88 million fine, which the court accepted in imposing the sentence. The plea agreement cites Marubeni’s refusal to cooperate with the department’s investigation when given the opportunity to do so, its lack of an effective compliance and ethics program at the time of the offense, and its failure to timely remediate as several of the factors considered by the department in determining the resolution.
According to the court filings, Marubeni and its employees, together with others, paid bribes to officials in Indonesia – including a high-ranking member of the Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia – in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for the company and its consortium partner to provide power-related services for the citizens of Indonesia. To conceal the bribes, Marubeni and its consortium partner retained two consultants purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. The primary purpose for hiring the consultants, however, was to use the consultants to pay bribes to Indonesian officials.
Also according to court filings, the first consultant retained by Marubeni and its co-conspirators received hundreds of thousands of dollars in his U.S. bank account to be used to bribe the member of Parliament. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official. E-mails between the co-conspirators discuss in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project.
As admitted in court documents, in the fall of 2003, Marubeni and its co-conspirators determined that the first consultant was not effectively bribing key officials at PLN. As a result, Marubeni and its consortium partner decided to reduce the first consultant’s commission from three percent of the total contract value to one percent, and pay the remaining two percent to a second consultant who could more effectively bribe officials at PLN. In an e-mail between two employees of Marubeni’s consortium partner, they discussed a meeting between Marubeni, an executive from the consortium partner, and the first consultant, stating that the consultant “committed to convince [the member of Parliament] that ‘one’ [percent] is enough.” Marubeni and its co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the purpose of bribing the Indonesian officials.
Frederic Pierucci, a current executive at Marubeni’s consortium partner, pleaded guilty on July 29, 2013, to one count of conspiring to violate the FCPA and one count of violating the FCPA. David Rothschild, a former vice president of regional sales at the consortium partner, pleaded guilty on Nov. 2, 2012 to one count of conspiracy to violate the FCPA. Lawrence Hoskins, a former senior vice president for the Asia region for the consortium partner, and William Pomponi, a former vice president of regional sales at the consortium partner, were charged in a second superseding indictment on July 30, 2013.
This case is being investigated by FBI agents who are part of the Washington Field Office’s dedicated FCPA squad, with assistance from the Meriden, Connecticut, Resident Agency of the FBI. Significant assistance was provided by the Criminal Division’s Office of International Affairs. In addition, the department greatly appreciates the significant cooperation provided by its law enforcement counterparts in Indonesia at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission), the Office of the Attorney General in Switzerland and the Serious Fraud Office in the United Kingdom.
The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Manchester Woman Sentenced to 15 YearsRead the Press Release
On Child Exploitation Charge
CONCORD, NEW HAMPSHIRE – Erin Upham, 21, of Manchester, was sentenced in United States District Court for the District of New Hampshire to 15 years in federal prison after pleading guilty to the sexual exploitation of a child, announced United States Attorney John P. Kacavas.
The investigation began in 2013 when the Manchester Police received information from the United States Air Force, Office of Special Investigations that the defendant, a resident of Manchester, was communicating with a member of the armed services who was currently stationed at Kadena Air Base in Okinawa, Japan. Specifically, the Air Force Special Agents informed the Manchester Police that they had information that the defendant’s communication was of a sexual nature and involved a minor child.
Federal search warrants were obtained for various electronic items belonging to Morrison and Upham. A forensic examination revealed digital images of a minor child engaged in sexually explicit conduct.
The charge was the result of an investigation by the United States Air Force, Office of Special Investigations, the Federal Bureau of Investigation, the Manchester and Derry Police Departments and the New Hampshire Internet Crimes Against Children Task Force and is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.Luzerne County Woman Pleads Guilty to Transporting A Person in Interstate Commerce to Engage in ProstitutionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an Edwardsville woman pleaded guilty today before U.S. District Court Judge Robert D. Mariani to aiding and abetting another person in transporting a female from Pennsylvania to New Jersey to engage in prostitution.
According to United States Attorney Peter J. Smith, the defendant, Kyoni Humphrey a/k/a “Kyoni Nieves,” age 24, admitted that she helped a co-defendant commit the crime by renting and driving a vehicle used to transport the female to motels in Pennsylvania and New Jersey to engage in prostitution, renting motel rooms, and posting “escort” advertisements and photographs on the backpage.com website during May and June of 2013.
Humphrey was indicted by a federal grand jury in January 2014, as a result of an investigation by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), the Pennsylvania State Police, and the Luzerne County District Attorney’s Office.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Humphrey faces up to ten years in prison and a $250,000 fine. Judge Mariani ordered a pre-sentence investigation to be completed and scheduled sentencing for the week of August 11, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Local Man Sentenced for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Michael Paul Torres, 34, has been ordered to prison following his conviction of sexual exploitation of a child, more commonly referred to as production of child pornography, announced United States Attorney Kenneth Magidson. Torres, of Corpus Christi, pleaded guilty Feb. 28, 2014.
Today, Senior U.S. District Judge Hayden Head sentenced Torres to a total of 16 years in federal prison to be immediately followed by 16 years of supervised release. Additional testimony was provided by the victim and her family describing how this crime has and continues to traumatize them. In determining an appropriate sentence, the court considered the lasting harm done to the victim as well as the need to protect the public from Torres in the future.
On Oct. 28, 2013, a minor female reported that Torres had sexually assaulted her earlier that day. Torres was located and arrested and admitted to sexually assaulting the victim. At the time of his arrest, Torres was in possession of a cell phone which contained pornographic images he had taken of his victim.
Torres will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Corpus Christi Police Department’s Internet Crimes Against Children Task Force and the FBI.
This case, prosecuted by Assistant United States Attorney lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Local Company Charged with Improper Storage of Explosive Hazardous WasteRead the Press Release
PHILADELPHIA – An information, filed on May 7, 2014, charges Action Manufacturing Company with illegal storage of explosive hazardous waste at its facility in Atglen, Chester County, PA, and transportation of hazardous material in violation of regulations, announced United States Attorney Zane David Memeger.
Action Manufacturing makes timing and arming devices for munitions and explosives. Its manufacturing process generates explosive solid waste, that must be disposed of in accordance with the Resource Conservation and Recovery Act. According to the information, instead of sending its waste to an approved treatment, storage and disposal facility, Action Manufacturing stockpiled identified explosive hazardous waste at its Atglen facility without a permit, including scrap parts and components that were years or even decades overdue for disposal. Action Manufacturing also violated Department of Transportation recordkeeping regulations for transporting explosive material on the public roads.
If convicted, Action Manufacturing faces a maximum possible sentence of five years of probation, with a mandatory minimum term of one year of probation, a $50,000 fine for violating transportation regulations, and fine of $100,000 per day for its storage violation, and a special assessment of $800.
The case was investigated by the Environmental Protection Agency's Criminal Investigations Division, and the United States Department of Transportation Office of Inspector General. It is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Lewiston Man Sentenced to 20 Years for Transporting Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Fredrick W. Butler, Jr., 44, of Lewiston, was sentenced today in U.S. District Court by Judge
Nancy Torresen to 20 years in prison, to be followed by a lifetime of supervised release, for
transporting child pornography. Butler pled guilty to the offense on December 20, 2013.According to court records, in April of last year, Butler sent an email message to an
individual in Oregon attaching 19 images, most of which depicted minors engaged in sexually
explicit conduct. Court records also show that in 2001, Butler was convicted in federal court for
receiving child pornography; in 1995, he was convicted in state court of gross sexual assault. As
a result of his prior convictions, Butler was subject to an enhanced sentence of at least 15 years
in prison.The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations.Kannapolis Couple Sentenced on Child Pornography ChargesRead the Press Release
GREENSBORO, N.C. –A Kannapolis, North Carolina, couple have been sentenced for their involvement with child pornography, announced United States Attorney Ripley Rand.
On May 13, 2014, Steven Anthony Webb, age 42, was sentenced to 120 months incarceration and 15 years supervised probation for accessing child pornography with the intent to view it. On May 14, 2014, Tracy Ann Webb, age 38, was sentenced to 36 months in prison and 1 year supervised release for misprision of a felony. Chief United States District Judge William L. Osteen, Jr., was the sentencing judge in both cases. Steven Webb is a former City of Kannapolis police officer.
The case was investigated by the Cabarrus County Sheriff’s Office and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Anand Ramaswamy.
KC Man Sentenced to 15 Years for Illegal FirearmsRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing firearms.
Christopher J. Harris, 31, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole. Harris was sentenced as an armed career criminal due to his prior felony convictions.
On Feb. 12, 2014, Harris pleaded guilty to being a felon in possession of firearms. Harris admitted that he was in possession of a Jennings .22-caliber pistol and a Smith & Wesson .38-caliber revolver on July 17, 2013.
Law enforcement officers found the loaded firearms (along with two more loaded Smith & Wesson .38-caliber revolvers and 19 baggies of cocaine and marijuana) at Harris’s residence while executing a search warrant as part of a drug-trafficking investigation.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Harris has two prior felony convictions for distributing a controlled substance and a prior felony conviction for assault.
This case was prosecuted by Assistant U.S. Attorney Jess Michaelsen. It was investigated by the Kansas City, Mo., Police Department.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.KC Man Sentenced for Possessing PCP to DistributeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for possessing phencyclidine, or PCP, to distribute.
Jamel Jackson, 37, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 10 years in federal prison without parole.
On Dec. 23, 2013, Jackson pleaded guilty to possessing PCP with the intent to distribute.
Jackson was arrested on Dec. 21, 2011, by Kansas City police detectives who were conducting surveillance on him in order to arrest him on an outstanding Jackson County warrant for drug trafficking. At the time of his arrest, Jackson was driving a rental car. When the car was searched, investigators found the PCP, including two packages of More brand cigarettes (which are commonly dipped into PCP liquid by distributors and then smoked by PCP users), four small glass bottles containing PCP residue and a bottle in Crown Royal bag containing 128.77 grams of PCP liquid.
While he was detained after his arrest, Jackson made several telephone calls from the monitored detention unit phone system. During these calls, he made several statements about the rental car he had been driving and its contents. In one call Jackson stated, “I could’ve swore I hid them things in there.”
This case was prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.Justice Department Sues to Shut Down Montgomery, Alabama, Tax Return PreparerRead the Press Release
The United States filed a complaint today to bar Laquanda O. Gilmore (aka Laquanda Garrott) and her company, L&g Associates LLC, from preparing federal tax returns for others, the Justice Department announced. The complaint alleges that Gilmore has prepared returns that falsely claim fuel-tax and earned income tax credits.
According to the complaint, Gilmore has repeatedly and intentionally claimed bogus fuel-tax credits for her customers. The fuel-tax credit is available only to taxpayers who operate farm equipment or off-highway business vehicles. It is not available for vehicles driven on highways , nor is it available for fuel used for commuting to and from work. The complaint alleges that Gilmore prepared returns that claimed absurdly large fuel-tax credits for taxpayers who worked at national retail businesses.
The complaint also alleges that Gilmore repeatedly prepared tax returns that improperly claimed the earned income tax credit (EITC). To claim the EITC, a taxpayer must have “earned income.” According to the complaint, Gilmore repeatedly claimed that her customers earned income from wages or salaries, even though Gilmore did not attach any Forms W-2, which provide information about an employee’s income and tax withholdings, to those customers’ returns. According to the complaint, Internal Revenue Service (IRS) records indicate that no Forms W-2 were issued to those customers in the years at issue.
Return-preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2014 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Sues to Shut Down Montgomery, Alabama, Tax Return PreparerRead the Press Release
WASHINGTON – The United States filed a complaint today to bar Laquanda O. Gilmore (aka Laquanda Garrott) and her company, L&g Associates LLC, from preparing federal tax returns for others, the Justice Department announced. The complaint alleges that Gilmore has prepared returns that falsely claim fuel-tax and earned income tax credits.
According to the complaint, Gilmore has repeatedly and intentionally claimed bogus fuel-tax credits for her customers. The fuel-tax credit is available only to taxpayers who operate farm equipment or off-highway business vehicles. It is not available for vehicles driven on highways, nor is it available for fuel used for commuting to and from work. The complaint alleges that Gilmore prepared returns that claimed absurdly large fuel-tax credits for taxpayers who worked at national retail businesses.
The complaint also alleges that Gilmore repeatedly prepared tax returns that improperly claimed the earned income tax credit (EITC). To claim the EITC, a taxpayer must have "earned income." According to the complaint, Gilmore repeatedly claimed that her customers earned income from wages or salaries, even though Gilmore did not attach any Forms W-2, which provide information about an employee's income and tax withholdings, to those customers' returns. According to the complaint, Internal Revenue Service (IRS) records indicate that no Forms W-2 were issued to those customers in the years at issue.
Return-preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Documents:
United States v. Laquanda O. Gilmore, etc., et al.
Complaint for Permanent Injunction and Other Relief
(PDF documents)Portable Document Format (PDF) files may be viewed with a free copy of Adobe Acrobat Reader
Accessibility InformationJury Convicts British National in $14 Million Computer Equipment SchemeRead the Press Release
HOUSTON – Mark Allan James, 47, a citizen of the United Kingdom (UK), has been convicted for conspiring with a number of other individuals to defraud Hewlett-Packard (HP) of millions of dollars, announced United States Attorney Kenneth Magidson. James utilized straw buyers to make false representations in order to fraudulently secure HP computer equipment at steeply discounted rates. The verdict was returned moments ago after seven days of trial and approximately five hours of deliberation.
The trial evidence showed that James recruited individual business owners from around the globe to pose as persons interested in securing a large volume of computing products. He then directed them to falsely state the procured products would be used internally by those individuals’ businesses and not be resold. Based upon those false representations, HP applied steep discounts to the products for various business reasons to include the opportunity for future large volume sales, further utilization of HP products in the customer's technology infrastructure and continued maintenance of existing HP products. These types of transactions fell under HP’s “Big Deal” program and HP would not have offered the degree of discount on its products, which often reach millions of dollars in a single transaction, without the false representations that the products would be used internally and not be re-sold.
Once negotiations were complete on a Big Deal, James would receive money via international wire transfer from the company for whom James was procuring the discounted products, identified in the indictment as Company A. That company wired money from the United States to a bank account James maintained in the UK in the name of his company, Roamer Media Ltd. James would then send the funds to the bank accounts of the straw buyers in Canada, the United States and Singapore. After the straw buyers received the funds from the Roamer Media bank account, they then forwarded payment for the products to HP or its partners, thereby further deceiving HP and its partners into believing that the computer equipment was being purchased by the straw buyer. In reality, the HP computer equipment never reached the straw buyers, but was instead diverted for re-sale by Company A.
The trial included testimony from members of HP’s Global Security and Brand Protection Departments as well as one of the straw buyers who assisted James in fraudulently procuring HP products on his behalf. Trial evidence included a large number of emails between James and others which demonstrated the level of deception used to deceive HP at every stage of the fraudulent transactions. In addition to the use of straw buyers, James also took care to hide his true identity and the role of Company A when inspecting the products prior to shipping. He also took care to disguise the true destination of the products by either routing them to an intermediary location or utilizing blind shipping techniques that hid the fact that the products were ultimately destined for Company A.
James was found guilty of conspiring to direct four different straw buyer transactions, spanning between May 2009 and November 2011. During one undercover transaction, James unwittingly corresponded with individuals cooperating with law enforcement in an attempt to fraudulently procure a Big Deal discount. The estimated losses to HP are in excess of $14 million.
James faces up to 20 years imprisonment and up to a $250,000 fine in connection with the conspiracy to commit wire fraud. He faces the same sentence for his conviction to conspiring to commit international money laundering, as well as a fine of up to $500,000 or twice the value of the laundered funds, whichever is greater.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorneys Jason Varnado and John Pearson.
Judge Sentences Armed Robber to 41 1/2 Years in PrisonRead the Press Release
PHILADELPHIA – Hakim King, 28, of Philadelphia, PA, was sentenced today to 498 months in prison for his role in two armed robberies of convenience stores. King and his co-defendant, Rezekiel Harris, robbed a Wawa on Bryn Mawr Avenue in Radnor, on February 9, 2012, and, on February 12, 2012, robbed a Sunoco A-Plus store, on Conshohocken State Road in Bala Cynwyd. In one of the robberies, a victim was hit by debris when the defendants fired a gun was fired into the concrete floor before taking the store’s $1,225 in proceeds. King was convicted at trial on April 8, 2014, of two counts each of robbery which interfered with interstate commerce and using and carrying a firearm during a crime of violence.
In addition to the prison term, U.S. District Court Judge Michael Baylson ordered five years of supervised release, $1,914 in restitution, and a $400 special assessment.
Rezekiel Harris, was sentenced on May 6, 2014 to 20 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States Attorney Jose Arteaga.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment: Officer Takes Delivery Driver's Place to Break up Three-Pound Meth DealRead the Press Release
WICHITA, KAN. – Two Wichita men have been charged with drug trafficking after a Wichita police officer posed as a delivery driver at a meeting in which three pounds of methamphetamine were to change hands, U.S. Attorney Barry Grissom said.
Michael Ortega-Alvarez, 45, Wichita, Kan., and Manuel Bencomo-Rodriguez, 47, were charged Wednesday with one count of conspiracy to possess with intent to distribute methamphetamine. It is alleged Wichita police stopped Ortega-Alvarez for a traffic violation on May 6, 2014. They found approximately three pounds of methamphetamine in his vehicle. When investigators learned Ortega-Alvarez was on his way to make a delivery to a man he didn’t know, an officer working undercover took his place.
Using Ortega-Alvarez’s phone, the officer received instructions to drive to a convenience store at 31st and Hillside and wait for a man in a blue car. Bencomo-Rodriguez arrived driving a blue Chevrolet Lumina. He led the officer to another location, after which they returned to the convenience store and Bencomo-Rodriguez was arrested.
If convicted, the defendants face a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
OTHER INDICTMENTS
Juan Antonio Herrera-Zamora, 30, and Jose Guadalupe Montoya-Valenzuela, 42, are charged with one count of attempted possession with intent to distribute methamphetamine. In addition Herrera-Zamora is charged with one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred April 17, 2014, in Kansas City, Kan.
Upon conviction, the crimes carry the following penalties:
Attempted possession with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine: Not less than 10 years in federal prison and a fine up to $10 million.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.The Kansas City International Airport Police and the Drug Enforcement Administration’s Kansas City Interdiction Task Force investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Clarence Smith, III, 31, is charged with failing to register as required by the Sex Offender Registration Act. The crime is alleged to have occurred March 1, 2013, in Wyandotte County, Kan.If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
Jose Pesina Lopez, 61, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found May 2, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Greek Man Convicted of Fraud and Money Laundering ChargesRead the Press Release
BOSTON – A Greek man was convicted in U.S. District Court in Boston yesterday for his role in perpetrating a multi-million scheme which defrauded developers of $7.9 million.
Following a three-week jury trial, Evripides Georgiadis, 49, of Larisa, Greece, was convicted of conspiracy to commit wire fraud, 11 counts of wire fraud, and conspiracy to commit money laundering. He was indicted in June of 2011. Sentencing is scheduled for August 18, 2014.
Between 2007 and 2011, Georgiadis participated in a conspiracy to defraud developers who were seeking financing for large-scale alternative energy and commercial projects by pretending to be a representative of a multi-billion dollar fund located in Luxembourg. Georgiadis and his co-conspirators convinced developers to give deposits between $300,000 and $1 million to this fake fund with the promise that the deposit would be fully refundable. Georgiadis and his co-conspirators spent and transferred the developers' deposit money out of the country, and the fake fund never financed any projects. In perpetrating this scheme, Georgiadis helped create fake letters of credit and a fake New Zealand bank, all to reassure developers about the safety of their deposits.Georgiadis’ co-defendants, John Condo, Michael Zanetti and Frank Barecich, have all pleaded guilty and are awaiting sentencing.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Susan Hensley Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Alex Grant and Karen L. Goodwin of Ortiz’s Springfield Branch Unit.
Glen Burnie Man Pleads Guilty to Illegal Possession of Guns and Improvised Explosive DevicesRead the Press Release
Baltimore, Maryland – Todd Wheeler, age 28, of Glen Burnie, Maryland, pleaded guilty today to being a prohibited person, specifically an unlawful user and a person addicted to drugs, in possession of firearms, including improvised explosive devices.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; and Fire Chief Michael E. Cox, Jr. of the Anne Arundel County Fire Department.
According to Wheeler's plea agreement, on January 1, 2014, Wheeler was treated at the hospital for injuries the he told hospital officials he sustained from an explosion when he was attempting to make fireworks. Wheeler attempted to flee the Emergency Room but was apprehended by police who were called to the scene. Police were directed to the home of Wheeler’s grandmother in Millersville, Maryland. She confirmed that Wheeler often stayed there and gave police permission to search the home and an outbuilding located on her property. Officers recovered chemicals used to manufacture high explosives, as well as other explosive materials. Investigators learned that Wheeler received packages at that address and stored the materials in the outbuilding.
The next day, ATF agents interviewed Wheeler, who remained in custody at the hospital. Wheeler advised agents that he was injured when he mixed chemicals and they exploded. He also told the agents that he had previously made explosive devices and detonated them in his yard. A search warrant was executed at Wheeler’s residence in Glen Burnie by Anne Arundel County Police. Over the next two days law enforcement recovered, among other things: several improvised explosive devices, as well as the chemicals and explosive materials used to make them; drugs and drug paraphernalia; a Walther pistol, flare gun and signal flare launcher, along with a conversion kit to allow the launcher to shoot 12 gauge shot gun shells; and 12 gauge shot gun shells.
Further investigation revealed that Wheeler had history of drug addiction dating back to at least 2006. At the time of this incident Wheeler was on probation for driving under the influence of a controlled substance and in a drug test conducted by his state probation officer shortly before the incident Wheeler tested positive for seven different controlled substances.
Wheeler faces a maximum penalty of 10 years in prison. U.S. District Judge William D. Quarles has scheduled sentencing for September 8, 2014 at 1:00 p.m. Wheeler remains detained.
United States Attorney Rod J. Rosenstein commended the ATF, FBI, Anne Arundel County Police Department and Anne Arundel County Fire Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Harvey E. Eisenberg, who are prosecuting the case.
Georgia Women Used Stolen Identities to File for $2M in False Tax Return RefundsRead the Press Release
PITTSBURGH - Three Georgia women pleaded guilty in federal court to a charge of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Heather A. Smith, 26, of Summerville, Ga.; Astrid P. Perry, 37, of Summerville, Ga.; and Beverly J. McHenry, 57, of Rome, Ga., pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, these defendants conspired with other persons to use stolen identities to file false federal 2010 and 2011 federal income tax returns requesting refunds totaling nearly $2,000.000 into banks and credit unions in Pittsburgh and Georgia.
Judge Fischer scheduled sentencing for Sept. 26, 2014, at 9 a.m. for McHenry and 11:30 a.m. for Perry. Smith’s sentencing is scheduled for Sept. 30, 2014, at 9 a.m. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, conducted the investigation that led to the prosecution of these defendants.
Galveston County Man Sentenced for Orange, Texas Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 37-year-old Bacliff, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Samuel David Sanford, III, pleaded guilty on Oct. 8, 2013 to bank robbery and was sentenced to 72 months in federal prison today by U.S. District Judge Ron Clark.According to information presented in court, on Dec. 19, 2012, Sanford entered the JP Morgan Chase Bank located in the 3100 block of 16th Street in Orange, Texas, and presented the teller with a threatening note demanding money. Sanford was given $25,859.00 and fled the bank. He was identified by tipsters after the robbery and indicted by a federal grand jury on Jan. 23, 2013.
Sanford has also been ordered to pay restitution in the amount of $25,859.00.
This case was investigated by the Federal Bureau of Investigation and the Orange Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Four Ohio Businessmen Associated with Cadillac Ranch Restaurants Plead Guilty to Tax ChargesRead the Press Release
Four businessmen involved in the development, operation and ownership of restaurants, including Cadillac Ranch restaurants, in Ohio and elsewhere in the United States, pleaded guilty today to tax charges, the Justice Department and Internal Revenue Service (IRS) announced.
Joel Field from Marion, Ohio, Jon Field from Dublin, Ohio, Eric Schilder, of Marion, and Paul Butler, of Dublin, all pleaded guilty before Judge Edmund A. Sargus Jr. in U.S. District Court for the Southern District of Ohio today.
Joel Field, 58, pleaded guilty to tax evasion, in which he admitted that he had an unpaid tax liability that exceeded $130,000 from tax years 1997 through 2001. Joel Field was an owner and operator of Cadillac Ranch restaurants and bars. From March 2004 through May 2009, when the IRS attempted to collect the outstanding amount of taxes owed by Joel Field, he provided false information to the IRS by failing to report assets and income. Further, according to publicly filed documents, Joel Field transferred his rental properties, car and business into the names of his relatives in an effort to conceal his ownership from the IRS and to prevent the IRS from seizing assets. Despite transferring these assets to nominees, Joel Field continued to control them and the income they generated.
According to documents filed with the court, in 2008, the government initiated foreclosure proceedings against Joel Field’s personal residence in an effort to collect the approximately $319,000 he then owed the IRS. After the government initiated foreclosure proceedings, Joel Field submitted more false information to the IRS, including the filing of false tax returns for tax years 2006 through 2009. Furthermore, Joel Field caused his son to file false income tax returns for two years by causing his son to report income that actually belonged to Field in order to conceal his own income from the IRS. Finally, Joel Field caused his attorney to send correspondence to the government wherein representations were made that falsely underreported the value of Joel Field’s restaurant. In 2009, based on the false information provided, the government agreed to settle its foreclosure lawsuit against Joel Field’s home for $149,000 less than the amount he then owed the IRS in taxes, penalties and interest. As part of the plea agreement, Joel Field agreed to pay $349,777 in restitution to the IRS.
According to documents filed with the court, Jon Field, 58, pleaded guilty to a conspiracy to file false income tax returns for the years 2006 through 2010. According to court documents, in 2003, Jon Field created JHF Property Holdings LLC, which was purportedly owned by his son, but which Jon Field used to operate the Cadillac Ranch and other restaurants. For the years 2006 through 2010, Jon Field agreed with others to prepare and file false income tax returns with the IRS for Jon Field which falsely underreported the amount of income that he earned from his business ventures. His tax returns for these five years failed to report at least $220,000 in income earned through JHF Property Holdings funds and other companies. According to publicly filed documents, Jon Field diverted business funds for personal expenditures, including to make payments on his vehicles, to pay his taxes, to pay personal charges on credit cards and for cash withdrawals. Jon Field’s false filings resulted in a tax loss of $174,458, and he agreed to pay restitution to the IRS according to his plea agreement.
Eric Schilder, 52, pleaded guilty to filing a false income tax return for 2008. According to publicly filed documents, Schilder participated in the design, construction and, ultimately, the marketing and management of several Cadillac Ranch restaurants and bars. Schilder’s conduct caused a tax loss to the IRS of approximately $95,000.
Paul Butler, 46, pleaded guilty to a conspiracy to defraud the United States. Butler participated in the design, development, building and operation of Cadillac Ranch restaurants and bars. According to public filings, Butler admitted that he amassed over $150,000 in unpaid taxes for the years 1996 through 2001. When the IRS attempted to collect the funds in 2005, Butler admitted that, among other things, he and others created and provided to a false promissory note to the IRS. Butler engaged in conduct, and caused others to engage in conduct, intended to obstruct the IRS from collecting the outstanding taxes that Butler owed.
Joel Field faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release for his tax evasion charge. Jon Field also faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release for his conspiracy charge. Paul Butler also faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release for his conspiracy charge. Eric Schilder faces a maximum sentence of three years in prison, a $250,000 fine and one year of supervised release for filing a false income tax return.
The case was investigated by the IRS-Criminal Investigation Division and is being handled by Trial attorney Richard M. Rolwing for the Justice Department’s Tax Division. Additional information about the Tax Division and its enforcement efforts may be found at the division website . Additional information about tax fraud schemes to watch out for may be found on the IRS Criminal Investigation website .
Former U.S. Congressional Aide Sentenced in Manhattan Federal Court for Accepting Illegal GratuitiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SAMUEL PIERRE, who was employed by a Member of Congress at the time of his offense, was sentenced yesterday in Manhattan federal court to three months home confinement for accepting an illegal gratuity in return for promising to provide immigration-related assistance that never was provided. PIERRE’s co-defendant, KENOL JANVIER, previously was sentenced to four months home confinement for his role in the offense. PIERRE and JANVIER both were sentenced by U.S. Magistrate Judge Kevin N. Fox.
According to court filings and statements made in court:
From 2007 to July 2009, PIERRE was employed by a Member of Congress as a Brooklyn South Liaison in the Congressman's District Office in Brooklyn, New York. As the Brooklyn South Liaison, PIERRE's job responsibilities included helping the Congressman's constituents with immigration-related issues, by, for example, inquiring about the status of constituents' immigration-related matters pending before the Department of Homeland Security (“DHS”).
In the late spring or early summer of 2008, PIERRE was a guest on a radio show hosted by JANVIER and they discussed, among other things, PIERRE’s job with the Congressman and issues related to the Haitian community, including immigration. During the radio show, listeners were invited to call in with any questions, but rather than help certain listeners who called the show seeking immigration-related advice, JANVIER and/or PIERRE instructed them to call "the office" for free assistance. The “office” phone number, however, was JANVIER’s cellphone number and when listeners called it, JANVIER arranged to meet them in person. JANVIER then met with these individuals and promised that PIERRE and he would be able to assist them with their immigration-related matters in exchange for a set fee. JANVIER took hundreds of dollars from the individuals as a down payment for the promised help with their immigration-related matter.
Thereafter, PIERRE and JANVIER spoke to the individuals on the phone, including using a landline phone at the Congressman’s District Office, regarding the remainder of the fee due, which some of them later paid to JANVIER. In connection with the scheme, PIERRE sent e-mails using his Congressional e-mail account in which he, on behalf of the Congressman’s Office, inquired about the status of these individuals’ immigration-related matters and claimed that the individuals were constituents of the Congressman when, in truth and in fact, they were not. The individuals were unaware that these e-mails had been sent and never received any actual assistance with their immigration-related matters from either PIERRE or JANVIER.
When the individuals who had paid JANVIER to help them tried to contact PIERRE and JANVIER to inquire about the status of their immigration matters, including visiting PIERRE at the Congressman’s Office, PIERRE and JANVIER either did not return the calls or continued to promise to help them but did not. Later, when the individuals demanded the return of their money, PIERRE and JANVIER ignored their requests and never paid them back. In connection with the scheme, PIERRE took money and things of value from JANVIER. In addition, PIERRE took money from JANVIER in connection with JANVIER’s own immigration matter and sent e-mails from his Congressional e-mail account to DHS and wrote a letter from the Congressman’s Office to a federal government immigration office about JANVIER’s immigration application.
In addition to home confinement, Judge Fox sentenced PIERRE, 29, of Brooklyn, New York, to three years of probation and ordered him to pay a $5,000 fine and a $25 special assessment fee. In addition, PIERRE was ordered to pay restitution in the amount of $11,300 joint and several with JANVIER.
JANVIER, 45, of Brooklyn, New York, previously was sentenced on April 24, 2014, by Judge Fox to four months home confinement and three years of probation and was ordered to pay a $25 special assessment fee. In addition, JANVIER was ordered to pay restitution in the amount of $11,300 joint and several with PIERRE.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
These prosecutions are being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecutions.
U.S. v. Samuel Pierre and Kenol Janvier Complaint
U.S. v. Samuel Pierre Complaint
U.S. v. Kenol Janvier Complaint