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27 June 2014
Three Foam Manufacturers Plead Guilty in Price Fixing SchemeRead the Press Release
Three manufacturers of polyurethane foam used to create interior components for automobiles pleaded guilty today to participating in a scheme to fix prices to customers, the Department of Justice announced.
Riverside Seat Co., Woodbridge Foam Fabricating Inc. and SW Foam LLC pleaded guilty to a one-count felony charge in the U.S. District Court for the Eastern District of New York in Brooklyn. According to the charge, the companies conspired with others to fix prices for polyurethane flexible slab stock automotive foam in the U.S. and elsewhere from at least as early as June 9, 2008 until at least April 20, 2009. The companies have agreed to pay a total of $6,148,800 in criminal fines and to cooperate with the department’s ongoing investigation.
“Today’s charges demonstrate the Antitrust Division’s commitment to holding companies accountable for conspiracies that affect components used in products that consumers rely on every day,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division will vigorously prosecute companies that engage in price-fixing schemes that subvert normal competitive processes and defraud American consumers and businesses.”Riverside Seat, Woodbridge, and SW Foam manufactured polyurethane flexible slab stock automotive foam – a low-density, slab stock, flexible foam used as a component of automotive interior parts, including seats, headliners, headrests, door panels and armrests. Polyurethane flexible slab stock automotive foam includes only the foam itself and does not include any automotive parts in which such foam may be a component.
According to the charge, the companies and their co-conspirators discussed polyurethane foam prices and agreed to coordinate the timing and amount of price increases to customers. The companies carried out the agreement and exchanged information for the purpose of monitoring and enforcing adherence to the agreement.
The three manufacturers are charged with price fixing in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s pleas are the result of an ongoing federal antitrust investigation being handled by the Antitrust Division’s New York Office, with assistance from the Cleveland Field Office of the FBI and the New York Field Office of the FBI. Anyone with information concerning price fixing or other anticompetitive conduct in the polyurethane foam industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.St. Thomas Man Sentenced to 100 Months in Prison for Possession of Cocaine with the Intent to DistributeRead the Press Release
St. Thomas, USVI - United States Attorney Ronald W. Sharpe announced that Marvin Griffin, 50, of St Thomas, Virgin Islands was sentenced yesterday in District Court to 100 months in prison for possessing with intent to distribute five kilograms of cocaine. After serving his prison sentence, Griffin will be on Federal supervised release for four years. Griffin was remanded to the custody of the United States Marshals Service to complete service of his sentence.
According to court records, on September 29, 2013, the defendant Griffin arrived at the Cyril E. King Airport and attempted to board an American Airlines flight to New York. Griffin had a black backpack, plastic bag and a box in his possession as he entered the primary inspection area of the airport. When the Officers of U.S. Customs and Border Protection (CBP) questioned Griffin about the contents of the box, he stated that the box contained various food items. As a result of his answers, he was referred to the Agricultural Specialist. When the Agricultural Specialist opened the black backpack, she immediately noticed the odor of marijuana. As subsequent search of the box in Griffin’s possession revealed it to contain several cans. When these cans were opened, they were found to contain five kilograms of cocaine. Griffin was then placed under arrest. He pleaded guilty on February 20, 2014 and has been incarcerated since that date. The case was investigated by CBP and U.S. Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Ishmael A. Meyers, Jr.
St. Louis Man Arrested After Traveling to Denver to Have Sex with Mother and Two Minor DaughtersRead the Press Release
The mother was actually an Homeland Security Investigations undercover agent
DENVER – Darwin Gilbert Gowen, age 61, of St. Louis, Missouri, was arrested by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) agents at Denver International Airport (DIA) after he traveled with intent to have sex with two minor children, U.S. Attorney John Walsh and HSI Special Agent in Charge Kumar Kibble announced. Gowen has previously made his initial appearance, where he was advised of his rights and the charges pending against him. He is due back in court on Wednesday, July 2, 2014 at 10:00 a.m. before U.S. Magistrate Judge Kristen L. Mix for a detention hearing. The Criminal Complaint was filed on June 20, 2014. Gowen was arrested by HSI agents at DIA on that same day.
The affidavit in support of the Criminal Complaint was written by an HSI special agent based in Greeley, Colorado, who was working in an undercover capacity. In her undercover role as a 37-year-old single mother of two minor daughters, ages 15 and 11, she communicated with an individual who expressed an interest in having sex with the mother and both daughters.
During the conversations, which took place primarily via email and text, the defendant stated that he was “a 60 year old male, widowed . . . wanting to experience the wild side of life.” He also said he “adored chubby girls” . . . and was “looking for naughty daughters . . . who love to hook up with a kinky mom for mom daughter fun.” Further investigation revealed that the individual was Darwin Gilbert Gowen of St. Louis, Missouri.
Gowen told the undercover agent that he was going to fly to Denver to see her and have sex with her and her daughters. HSI agents confirmed that the defendant had arranged to fly to Denver on June 19th. He was observed by HSI agents leaving the St. Louis Airport. He was then seen at DIA. Gowen met a female HSI agent at the DIA baggage check. After the two discussed that he flew to Denver for the express purpose of having sex with the two minor children, he was arrested.
“Individuals who travel to have sex with minors are dangerous, as there is always the chance that they communicate with a vulnerable woman with children as opposed to an undercover agent,” said U.S. Attorney John Walsh. “Thanks to the work of HSI, another person who was planning to sexually exploit innocent children now faces criminal charges.”
“Crimes against children are some of the most loathsome our agency investigates," said Special Agent in Charge Kumar Kibble, of HSI Denver. "These criminal charges serve as warning to other child predators. We will find you, arrest you and make sure that you are prosecuted to the fullest extent of the law."
If convicted of travel with intent to engage in illicit sexual conduct, the defendant faces not more than 30 years in federal prison, and up to a $250,000 fine. If convicted of attempted coercion and enticement, the defendant faces not less than 10 years, and up to life in federal prison, and up to a $250,000 fine, per count for each of the two counts charged.
This case was investigate by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). The Denver Police Department assisted with the arrest at DIA.
Gowen is being prosecuted by Assistant U.S. Attorney Alecia Riewerts Wolak, the coordinator of the Project Safe Childhood initiative for the District of Colorado.
A criminal complaint is a probable cause charging document. Anyone accused of committing a federal felony crime has a Constitutional right to be indicted by a grand jury.
The charges contained in the Criminal Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
South Carolina National Guard Official Pleads Guilty to Accepting Bribes to Award Freight Contracts to Alabama CompaniesRead the Press Release
BIRMINGHAM -- A South Carolina National Guard official pleaded guilty today in federal court to wire fraud and accepting bribes to steer freight contracts to an Alabama broker, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.
TIMOTHY WOOTEN, 52, a traffic management specialist for the National Guard Bureau, U.S. Property and Fiscal Office, in South Carolina, pleaded guilty before U.S. District Judge Madeline H. Haikala to three wire fraud counts and one bribery count involving freight transportation contracts totaling about $321,949. His sentencing is scheduled Oct. 15.
According to Wooten's plea agreement with the government, he overrode the electronic system that generated a list of "Best Value Carriers" for freight shipments so that he could manually select a company for a shipment. Between September 2011 and January 2012, Wooten manually awarded 55 contracts to two Tuscaloosa-area companies, identified as C.E. and U.S.T. The freight broker who worked as an agent for both companies paid Wooten about 25 percent of his commissions on the freight contracts in return for Wooten awarding them to his companies. The agent received about $115,882 in commission on the 55 contracts and paid about $29,742 in bribes to Wooten, according to the plea agreement.
The agent is identified in government documents by the initials, D.B. He attempted to conceal the bribes to Wooten by making the payments to Wooten's wife, who D.B. purportedly hired as a broker for one of his companies. Aside from making a few phone calls, Wooten's wife did no work for D.B., the plea agreement says. The payments to her "were in return for Wooten providing freight contracts to D.B.'s companies," it says.
Wooten directed government payment to D.B.'s two companies on completed transportation contracts by initiating wire transfers from U.S. Bank in Minneapolis, Minn., to a bank in Tuscaloosa, according to the plea agreement. Those payments constitute the wire fraud counts against Wooten.
Wire fraud carries a maximum penalty of 20 years in prison and $250,000 fine. The bribery count carries has a maximum penalty of 15 years in prison and a fine of $250,000 or three times the value of the bribe.
The FBI and Army CID, MPFU, investigated the case, which Assistant U.S. Attorney Tamarra Matthews Johnson is prosecuting.
South Carolina Man Charged with Tampering with Witnesses in Federal TrialRead the Press Release
CAMDEN, N.J. - A South Carolina man was arrested today and charged with tampering with witnesses in a federal criminal trial that concluded last September, U.S. Attorney Paul J. Fishman announced.
Dennis Nadeau, 53, of Myrtle Beach, S.C., was arrested at his home this morning by agents of the FBI and charged by a complaint with misleading conduct with intent to influence the testimony of four actual and potential witnesses in the trial of the U.S. v. Adam Lacerda et al. Nadeau will have an initial appearance before U.S. Magistrate Judge Karen M. Williams in Camden federal court at a later date.
According to documents filed in this case and in the prior criminal case:
From 2010 through 2013, Nadeau worked at the New Jersey-based Vacation Ownership Group LLC and its successor, VO Financial. In 2013, 13 former VO Group employees pleaded guilty to conspiring to defraud timeshare owners. Four other VO Group employees, including VO Group President Adam Lacerda and his wife, Ashley Lacerda, were convicted by a jury of conspiracy and related charges after a seven-week trial that concluded last September. The Lacerdas have been in custody since the trial and all defendants are awaiting sentencing.
Shortly before the start of last year’s trial, Ashley Lacerda allegedly directed Nadeau to call potential trial witnesses and try to convince them that they had not been defrauded. Nadeau called several individuals, made numerous false statements about their dealings with VO, and tried to get them to agree with the false statements. Unbeknownst to three of the witnesses, Nadeau was recording the calls.
The witness tampering count with which Nadeau is charged carries a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the gain or loss caused by the offense.
U.S. Attorney Fishman credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford, with the ongoing investigation leading to today’s charges.
The charges and allegations in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office in Camden.
14-236
Nadeau, Dennis Complaint
Slaton, Texas, Man Sentenced to 15 Years in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Dale Wray Fulford, 77, of Slaton, Texas, was sentenced today by U.S District Judge Sam R. Cummings to 15 years in federal prison, following his guilty plea in March 2014 to one count of production of child pornography. The announcement was made today by U.S. Attorney Sarah R. Saldaña.
Fulford admitted that between February 2013 and early February 2014, he used, persuaded, induced and enticed a female minor, under age 18, to engage in sexually explicit conduct that he recorded on a digital camera.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lubbock County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Ship Operator Pleads Guilty to, and Chief Engineer Indicted for, Violations of the Act to Prevent Pollution from Ships and Obstruction of JusticeRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that today, MARINE MANAGERS LTD., a Liberian corporation headquartered in Piraeus, Greece, pled guilty to a two-count bill of information charging the company with knowingly failing to maintain an oil record book while in port and within the internal waters of the United States, and submitting a false document to the U.S. Coast Guard.
In addition, MATTHAIOS FAFALIOS, 64, a resident of Greece and Chief Engineer of the Motor Vessel (“M/V”) Trident Navigator, was indicted yesterday on three related charges, specifically failing to maintain an accurate oil record book, obstruction of justice, and witness tampering.
According to court documents, MARINE MANAGERS LTD., was the operator of the M/V Trident Navigator which transported bulk cargo between various ports and places in the world, including the Port of New Orleans and other locations in the Eastern District of Louisiana. On or about December 28, 2013, while the M/V Trident Navigator was sailing, FAFALIOS instructed the Second Engineer to construct a bypass system (often referred to as a “magic pipe”) that could be connected between the vessel’s bilge pump and overboard discharge valve. The purpose of the bypass was to discharge the contents of the ship’s bilge tank directly into the sea, circumventing the ship’s Oil Water Separator and Oil Content Monitor. On or about December 31, 2013, FAFALIOS ordered the Second Engineer to hook up the “magic pipe” and to discharge several metric tons of oily bilge waste from the bilge tank directly into the sea. The “magic pipe” was removed after the discharge was completed and the discharge was not recorded in the vessel’s Oil Record Book as required. FAFALIOS additionally confiscated a crew member’s cell phone which contained a photograph of the installed “magic pipe,” and caused that photo to be deleted.
On or about January 18, 2014, U.S. Coast Guard personnel boarded the M/V Trident Navigator while it was anchored in the Mississippi River near New Orleans. A tip from a crewmember led them to the discovery of the “magic pipe.” FAFALIOS was uncooperative and further obstructed the Coast Guard investigation by instructing crewmembers to deny knowledge of the “magic pipe.”
Although the actions of the crewmembers on the vessel were contrary to defendant MARINE MANAGERS LTD.’s written policies and procedures, the company accepts that it is vicariously liable for its employees’ actions.
MARINE MANAGERS LTD. faces a maximum fine of $500,000 for each count. Sentencing has been scheduled for October 2, 2014, before U.S. District Judge Carl J. Barbier.
For each of his three counts, FAFALIOS faces a maximum fine of $250,000 and three years of supervised release. In addition, he faces a maximum term of imprisonment of six years, five years, and twenty years for the records, obstruction, and witness tampering charges, respectively.
“The Coast Guard is committed to uncovering and investigating regulatory and criminal violations that threaten the health of our marine environment. The successful prosecution of this case is due to the outstanding cooperation between Coast Guard Sector New Orleans, the Coast Guard Investigative Service, and the Department of Justice," said Rear Admiral Kevin S. Cook, Eighth Coast Guard District Commander.
The case against MARINE MANAGERS LTD was investigated by Special Agents of the United States Coast Guard Criminal Investigative Service. Prosecution is being handled by Assistant United States Attorney Gregory M. Kennedy and DOJ Environmental Crimes Section Attorney Kenneth Nelson. The case against MATTHAIOS FAFALIOS was also investigated by Special Agents of the Coast Guard Criminal Investigative Service. Prosecution is being handled by DOJ Environmental Crimes Section Attorney Kenneth Nelson and Assistant United States Attorney Emily K. Greenfield.
(Download Factual Basis - Marine Managers Ltd. )
(Download Indictment - Matthaios Fafalios )
Russell Adler Sentenced in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Russell S. Adler, 52, of Ft. Lauderdale, was sentenced today by United States District Judge James I. Cohn to 30 months’ imprisonment, to be followed by 2 years’ supervised release in connection with his conviction for one count of conspiracy to violate the Federal Election Campaign Act and to defraud the United States, in violation of Title 18, United States Code, Section 371. The defendant was a shareholder of the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
During his April 4, 2014 guilty plea, the defendant admitted that, in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, RRA Chairman and CEO Scott W. Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Adler, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz and Jeffrey N. Kaplan.
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.
Ripley Man Sentenced to 121 MonthsRead the Press Release
Memphis, TN – William David Maness, age 39, of Ripley, Tenn., was sentenced to 121 months in federal prison following his guilty plea to one count of possession with intent to distribute less than 50 grams of methamphetamine, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee and 25th District Attorney General Mike Dunavant.
According to the facts alleged in the indictment and revealed during the sentencing hearing, on February 25, 2013, Maness possessed and distributed under 50 grams of methamphetamine to an undercover source who was working for the Lauderdale County Sheriff’s Department. This is Maness’s fourth methamphetamine-related conviction.
“Illegal drug trafficking, and the violence that often accompanies it, is a plague upon our communities. My office will vigorously pursue any and all involved in these illegal activities” said US Attorney Stanton.
“Methamphetamine has had a devastating impact on rural communities in Tennessee,” said District Attorney General Dunavant. “This defendant, in particular, has been distributing methamphetamine in Lauderdale County for the last eight years. This prison sentence will prevent Maness from further destroying our community and sends a message to other meth dealers.”
In addition to the prison sentence, U.S. District Judge Samuel H. Mays ordered Maness to serve three years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Lauderdale County Sheriff’s Office and the 25th District Attorney General’s Office. Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.Prison Sentences and over $500,000 in Fines for Contractors Who Bribed the “Godfather” of Camp PendletonRead the Press Release
The presidents of two government contracting companies, as well as the companies themselves, were sentenced today for bribing the so-called “Godfather” of Camp Pendleton in exchange for millions of dollars in construction and service contracts at Camp Pendleton and other federal facilities.
At today’s hearing, U.S. District Judge Anthony J. Battaglia sentenced Hugo Hernandez Alonso, president of Hugo Alonso, Inc. (HAI), to one year in prison, three years of supervised release and a fine of almost $127,000. His company was sentenced to five years of probation and the same fine, which could be offset by payment of Alonso’s individual fine.
Bayani Yabut Abueg, Jr., president of MBR Associates, Inc. (MBRA), was sentenced to six months in prison, three years supervised release, $105,025 in restitution to the IRS and a fine of $366,140. His company was sentenced to five years of probation plus a $375,000 fine, which could be offset by payment of Abueg’s individual fine.
The judge ordered both men, who are free on bond, to self-surrender by January 2, 2015.
Alonso, Abueg, their respective companies, and Natividad Cervantes, who was known as the “Godfather” of Camp Pendleton, all pleaded guilty in January, each admitting their parts in the bribery-kickback scheme. Cervantes is scheduled to be sentenced by Judge Battaglia on July 24, 2014.
According to Alonso’s plea agreement, the bribes were made in connection with the awarding of at least six government construction and service contracts from 2008 to 2011.
In addition, Alonso, Abueg and their respective companies pleaded guilty to soliciting and accepting kickbacks from subcontractors in relation to government contracts awarded to Alonso and Abueg’s companies (some of which were steered to them by Cervantes).
The defendants admitted that they solicited and accepted the kickbacks from various subcontractors in exchange for favorable treatment in connection with future subcontracts. Abueg also admitted filing a false federal income tax return for 2010 that failed to report over $268,000 in illegal kickbacks.
Bribery at Camp Pendleton
When he entered his guilty plea, Cervantes admitted using his position at Camp Pendleton to solicit bribes from Alonso and Abueg’s construction companies seeking to do business on the base. Cervantes made it clear that since at least as early as September 2008, he used his position supervising construction and service contracts to seek bribes from Alonso and Abueg, on behalf of either HAI or MBRA.
In return for awarding HAI and MBRA contracts, Cervantes received cash payments from Alonso and Abueg and extensive free construction work on his personal condominium.
As part of his plea agreement, Cervantes admitted that in approximately 2008, he agreed to accept a bribe of $25,000 to assist Alonso and HAI in obtaining a $3.5 million government contract to install flooring at Camp Pendleton.
In arranging for a bribe payment, Cervantes, through a third-party conduit, requested that Alonso “have the 25 package” (code for the $25,000 bribe) available on September 5, 2008. On that same day, Alonso provided the $25,000 to the third party conduit for delivery to Cervantes. Cervantes and Alonso admitted that Alonso paid Cervantes a total of at least $119,000 in bribes between 2008 and 2011. Abueg admitted delivering $20,000 of these bribes to Cervantes, at the direction of Alonso. Alonso’s company, HAI, also entered a guilty plea regarding the paying of bribes to Cervantes.
The bribes to Cervantes were not limited to just HAI. Both Cervantes and Abueg admitted to exchanging a bribe in 2011 related to the awarding of a $3 million contract at Camp Pendleton to Abueg’s company, MBRA. Further, Cervantes admitted that on March 26, 2013, he met with a cooperating witness, who agreed to pay Cervantes a $40,000 bribe in exchange for assistance in obtaining a new $4 million contract at Camp Pendleton. The bribe was to be structured over a number of payments. The first payment was scheduled for March 28, 2013, with the balance of the bribe to be paid after the contract was awarded.
On March 28, 2013, the cooperating witness met with Cervantes at a local business on Miramar Road in San Diego, California, to make the first payment that was discussed earlier in the week. During this meeting, Cervantes discussed, among other things, the payment schedule and the source of funds for the bribe payments. At the end of the meeting, the cooperating witness handed Cervantes an envelope containing $10,000 cash. At that point, FBI agents arrested Cervantes.
Kickbacks Related to Government Contracts and Subcontracts
In addition to the bribery scheme, Alonso and Abueg engaged in a vast scheme to solicit kickbacks from subcontractors in exchange for favorable treatment in the awarding of subcontracts on various government contracts awarded to HAI and MBRA. Some of these government contracts were the same contracts at Camp Pendleton improperly awarded to HAI and MBRA with Cervantes’ help in exchange for bribes.
Abueg, as a representative of HAI and then MBRA, admitted that between 2008 and 2011, he solicited, received, and accepted over $539,000 kickbacks from various subcontractors. The kickbacks typically consisted of cash given to Abueg or to Abueg’s son, and checks issued to Abueg, his son, or his daughter, all in an attempt to conceal the nature of the kickbacks. Other kickbacks to Abueg consisted of subcontractors performing discounted work at the personal residences of Abueg’s wife, relatives, and associates, including Cervantes. For some of the kickbacks, Abueg requested that the subcontractors inflate their original estimate for certain work associated with the government contract. The inflated amount used for the kickback was then improperly included in corporate books and records as a legitimate business expense.
Separately, Alonso, as representative of HAI, admitted that in 2009, he accepted a kickback in the form of discounted remodeling of his Chula Vista residence by a subcontractor. Abueg’s and Alonso’s companies, MBRA and HAI, respectively, also entered guilty pleas regarding the solicitation and acceptance of kickbacks.
“We are not going to allow criminals to turn the contracting system into their own little fiefdoms,” said U.S. Attorney Laura Duffy. “The extreme home makeover party is over for these defendants, who will no longer be ordering up new kitchens and baths for relatives at taxpayer expense.”
FBI Special Agent in Charge Daphne Hearn commented, “Members of our community expect government employees to act ethically and honestly. When even one person dishonors that trust, it rips away the professional dignity that others government servants have spent a lifetime building. At a time when our nation’s military must do more with fewer resources, the actions of the defendants undermine our country’s best interests for their own financial gains.”
“It’s all about playing by the rules—you earn an honest dollar and you report it on your tax return. Failure to do so will land you in prison,” said Erick Martinez, Special Agent in Charge of IRS Criminal Investigation. “IRS Criminal Investigation is proud to work with our law enforcement partners by lending its financial expertise in any investigation involving the improper awarding of government contracts.”
“The Defense Criminal Investigative Service works closely with its law enforcement partners to bring to justice those individuals who seek to illegally enrich themselves at the expense of U.S. taxpayers,” said Chris Hendrickson, Special Agent in Charge of the Western Field Office. “While the vast majority of DoD contractors exercise lawful business practices and engage in fair competition, a few are driven by greed to break the law. Those who do will be caught and punished. The American taxpayer will accept nothing less.”
According to David A. House, Special Agent in Charge, Pacific Rim Regional Office of Investigations General Services Administration, Office of Inspector General: “This investigation demonstrates GSA OIG’s commitment to ensuring the integrity of the procurement process, especially when dealing with public buildings. Bribes and kickbacks are an affront to every taxpayer; we are dedicated to investigating these allegations thoroughly.”
“Hugo Alonso and Bayani Abueg instigated a bribery and kickback scheme that defrauded our government and American taxpayers for personal gain,” said Inspector General Peggy E. Gustafson. “Today’s sentencing demonstrates the SBA OIG’s resolve to bring those who commit fraud in SBA’s set-aside contracting programs and erode the public’s trust in government to justice. I want to thank the U.S. Attorney’s Office for its dedicated leadership and professionalism in pursuit of justice served today.”
The public is encouraged to report possible public corruption criminal activity by calling the FBI’s public corruption/border corruption hotline at (877) NO-BRIBE or (877) 662-7423, or by calling the Department of Defense’s hotline at (800) 424-9098 or emailing [email protected].
DEFENDANT Case Number: 14cr0120-AJBHugo Hernandez Alonso
Age: 50 City: Chula Vista, CA Case Number: 14cr0144-AJBBayani Yabut Abueg, Jr.
Age: 51 San Diego, CACORPORATE DEFENDANTS
Case Number: 14cr0120-AJBHugo Alonso, Inc.
Chula Vista, CA
Case Number: 14cr0144-AJBMBR Associates, Inc.
National City, CA
CHARGESTitle 18, United States Code, Section 371 – Conspiracy to commit bribery of public official
Maximum penalties for individual defendants: 5 years’ imprisonment, $250,000 fine, or twice the gross amount of defendant’s pecuniary gain from the offense
(Defendants Alonso and Hugo Alonso, Inc.)Title 41, United States Code, Sections 8701, 8702, and 8707 – Anti-Kickback Act Violation
Maximum penalties for individual defendants: 10 years’ imprisonment, $250,000 fine, or twice the gross amount of defendant’s pecuniary gain from the offense
(Defendants Alonso, Hugo Alonso, Inc., Abueg, and MBR Associates, Inc.)Title 26 United States Code, Section 7206(1) – Filing a False Tax Return
INVESTIGATING AGENCY
Maximum penalties: 3 years imprisonment, $250,000 fine, or twice the gross amount of the tax loss from the offense
(Defendant Abueg only)Federal Bureau of Investigation
Naval Criminal Investigative Service
Internal Revenue Service, Criminal Investigation
Department of Defense Criminal Investigative Service
General Services Administration, Office of Inspector General
Small Business Administration, Office of Inspector General*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Port Saint Lucie Return Preparer Convicted in Tax Fraud and Identity Theft SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Stevens Nore, 33, of Port Saint Lucie, was convicted by a jury of thirty counts, including twenty-one counts of preparing false tax returns, in violation of Title 26, United States Code, Section 7206(2), four counts of filing false tax returns, in violation of Title 26, United States Code, Section 7206(1), three counts of theft of public money, in violation of Title 18, United States Code, Section 641, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
The Court has reserved judgment as to four of the counts pending argument by the parties. Nore was immediately remanded to the custody of the United States Marshals Service. At sentencing, Nore faces a possible maximum statutory sentence of up to three years in prison for each count of preparing and filing false tax returns, up to 10 years in prison for each count of theft of public money, and a mandatory term of two years in prison, consecutive to any other term in prison, for each count of aggravated identity theft.
According to evidence presented at trial and court documents, from June 11, 2009 through April 2012, Nore owned and operated Fraternity Tax and Services, a tax return preparation business located in Fort Pierce, Florida. Nore prepared and submitted Individual Tax Returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2009 to 2011. Nore also filed false tax returns for 2010 and 2011 by falsely stating the amount of gross receipts and sales on Schedule C forms. The defendant stole three tax refunds totaling $26,349.30 to which he was not entitled, and used the identity of two individuals without their permission.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Shaniek Maynard and Russell R. Killinger.
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.
Patient Recruiter Pleads Guilty for Role in $6.5 Million Health Care Fraud Scheme<br />Read the Press Release
A patient recruiter for a Miami home health care agency pleaded guilty today in connection with a health care fraud scheme involving defunct home health care company Nestor’s Health Services Inc. (Nestor HH). The owner and operator of Nestor HH pleaded guilty to charges related to the scheme earlier this month.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
On June 27, 2014, Euridice Borroto, 45, of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Jonathan Goodman in the Southern District of Florida to one count of conspiracy to solicit and receive health care kickbacks and to defraud the United States. Sentencing is scheduled for Aug. 25, 2014.
According to court documents, Borroto was paid bribes and kickbacks for recruiting patients on behalf of Nestor HH, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. The owner and operator of Nestor HH operated Nestor HH for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
According to court documents, Borroto solicited and received kickbacks and bribes from the owner and operator of Nestor HH in return for recruiting and providing patients to Nestor HH for home health care and therapy services that were medically unnecessary and, in many instances, were not provided. Nestor HH would then fraudulently bill the Medicare program for home health care services on behalf of the recruited patients, in violation of federal criminal laws. Borroto knew that in many instances the patients she recruited for Nestor HH did not qualify for the services billed to Medicare.
From approximately March 2009 through at least January 2014, Nestor HH submitted more than $6.5 million in claims for home health services. Medicare paid Nestor HH more than $6.1 million for these fraudulent claims before the fraud was exposed.
In documents filed with the court, Borroto also acknowledged her involvement in similar fraudulent schemes at other Miami health care agencies.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.Patient Recruiter Pleads Guilty for Role in $6.5 Million Health Care Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Leslie R. Caldwell, Assistant Attorney General, Department of Justice (DOJ) Criminal Division, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ryan Lynch, Acting Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office, announce today that Euridice Borroto, 45, of Miami, Florida, pled guilty before U.S. Magistrate Judge Jonathan Goodman to one count of conspiracy to solicit and receive health care kickbacks and to defraud the United States. Sentencing is scheduled for Aug. 25, 2014.
A patient recruiter for a Miami home health care agency, Borroto, pled guilty in connection with a health care fraud scheme involving defunct home health care company Nestor’s Health Services Inc. (Nestor HH). The owner and operator of Nestor HH pleaded guilty to charges related to the scheme earlier this month.
According to court documents, Borroto was paid bribes and kickbacks for recruiting patients on behalf of Nestor HH, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. The owner and operator of Nestor HH operated Nestor HH for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
According to court documents, Borroto solicited and received kickbacks and bribes from the owner and operator of Nestor HH in return for recruiting and providing patients to Nestor HH for home health care and therapy services that were medically unnecessary and, in many instances, were not provided. Nestor HH would then fraudulently bill the Medicare program for home health care services on behalf of the recruited patients, in violation of federal criminal laws. Borroto knew that in many instances the patients she recruited for Nestor HH did not qualify for the services billed to Medicare.
From approximately March 2009 through at least January 2014, Nestor HH submitted more than $6.5 million in claims for home health services. Medicare paid Nestor HH more than $6.1 million for these fraudulent claims before the fraud was exposed.
In documents filed with the court, Borroto also acknowledged her involvement in similar fraudulent schemes at other Miami health care agencies.
Mr. Ferrer commended the investigative efforts of the DOJ Criminal Division’s Fraud Section, FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force. This case is being prosecuted by DOJ Trial Attorneys Anne P. McNamara and A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Northern District of Georgia Targets Prescription Drug AbuseRead the Press Release
ATLANTA – Abuse of pain medications like oxycodone continues to plague Georgia communities at epidemic levels and now accounts for six times more deaths than all of the traditional illegal drugs combined. The United States Attorney’s Office in the Northern District of Georgia has enhanced its prosecution efforts on the prescription drug abuse problem as part of a broad effort to reverse this deadly trend.
“The abuse of prescription drugs and its related criminal activity is a significant public safety problem in many Georgia communities - one we have made a central focus of our office,” said United States Attorney Sally Quillian Yates. “This problem is too big to prosecute away and requires solutions from doctors, pharmacists, legislators, and public health officials. But we are committed to prosecuting and punishing those who are the primary contributors to this problem.”
“Over the past decade Oxycodone and other opioids have risen to be the most abused and overdose related drugs in the State of Georgia,” said C. Richard Allen, Director of the Georgia Drugs & Narcotics Agency. “Five of the top eight drugs found in overdose deaths are opioids. Of those eight, Oxycodone products are #2 on this list. Ten of the top twenty five most prescribed drugs are opioids. We applaud the U.S. Attorney's office and its efforts to help stop, or at least slow down, this deadly epidemic.”
In the past year, the U.S. Attorney’s Office has successfully prosecuted three cases that reflect the broad spectrum of criminal activity associated with prescription drug abuse.
Most recently, nine of eleven defendants were sentenced for participating in a scheme to obtain and sell painkillers using forged prescriptions. “Many of the defendants sentenced were themselves addicts, some of whom became addicted after receiving a lawful prescription for oxycodone,” said Yates. “Some of them even engaged in further criminal behavior to feed their own addiction. These criminal acts also perpetuated the addiction of others by putting the drugs on the street. It’s a terrible cycle.”
According to United States Attorney Yates, the charges and other information presented in court in the prosecution of eleven defendants: Holly Worley forged prescriptions for oxycodone using the names of actual doctors. The remaining ten defendants would then present the forged prescriptions at numerous pharmacies throughout the Atlanta and North Georgia area to obtain what appeared to be legitimately obtained pain medication. Once the conspirators received the drugs, Worley and Jason Johns would deliver the drugs to others to have them sold on the streets. Worley rewarded the co-conspirators for the participation with either cash or a portion of their oxycodone pills.
All eleven defendants pleaded guilty to conspiring to possess oxycodone with intent to distribute, and many were sentenced by United States District Court Judge Orinda D. Evans on June 19 and 20, 2014:
• Holly Noel Worley, 29, of Cuming, Ga., received a sentence of eight years in prison, to be followed by three years of supervised release;
• Jason Cody Johns, 30, of Gainesville, Ga., received a sentence of eight years, seven months in prison, to be followed by three years of supervised release;
• Shayna Marie Massara, 23, of Alpharetta, Ga., received a sentence of five years of probation with a condition of eight months of home confinement;
• Kelly Webb Ardizone, 26, of Cumming, Ga., received a sentence of two years, three months in prison, to be followed by three years of supervised release;
• Michael Ardizone, 28, of Cumming, Ga., received a sentence of one year in prison, in addition to receiving credit for an additional 18 months already served, to be followed by three years of supervised release;
• Keva Lee Hamrick, 23, of Cumming, Ga., received a sentence of five years of probation;
• Andrew Derek Johnson, 30, of Lawrenceville, Ga., received a sentence of two years in prison;
• Tyler Starnes Newsom, 24, of Suwanee, Ga., received a sentence of two years, six months in prison, to be followed by three years of supervised release;
• James Cory Linder, 24, of Roswell, Ga., received a sentence of two years in prison.
James Brandon Sweatman, 27, and Brian Thompson Myers, 33, both of Cumming, Ga., are scheduled to be sentenced on July 7, 2014.
“This case demonstrates cycle of harm caused by the abuse of prescription drugs,” said U.S Attorney Yates. “Through the combination of incarceration and substance abuse treatment, we hope to break this cycle so that the defendants can become productive members of society.”
Prescription drug abuse manifests itself in many different ways. Falsifying prescriptions, theft, or just purchasing pills on the street are some of the more popular methods of illegally obtaining oxycodone. However, many abusers of prescription drugs also obtain oxycodone from illegitimate pain clinics, known as “pill mills.”
“Illegitimate pain clinics prey on so-called patients who are addicted to opiates,” said Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division. “Some of the doctors who dispense these addictive analgesics often operate under the guise of a stethoscope and a white coat, when in actuality they are nothing more than drug traffickers.”
In one recent “pill mill” prosecution, Jason Cole Votrobek and Roland Rafael Castellanos were non-physician owners of the ‘Atlanta Medical Group’ (AMG) medical clinic in Cartersville, Ga., which served as a front for the mass distribution of addictive pain killers.
“The defendants in this case preyed upon those addicted to prescription drugs in order to line their own pockets,” said Yates.
In their respective capacities, Votrobek and Castellanos, along with Jesse Violante, financed the clinic and worked to procure and distribute oxycodone pills to addicts and distributors. Votrobek, Castellanos, and Violante directed the clinic’s doctors to see as many patients as possible, and to prescribe as many oxycodone pills as possible, in order to generate mass profits. Dr. James Chapman allegedly did so, however, without conducting sufficient medical examinations and, indeed, according to evidence produced at trial, was frequently incapacitated due to intoxication. Tara Atkins served as the office manager. She filled out prescriptions for the doctor to sign, and the amounts of pills distributed to patients were excessive, and with unusual dosage patterns.
Evidence offered at trial established that the clinic was really a drug distribution operation with over 98 % of its patients traveling to the clinic from surrounding states, the majority from Kentucky and Tennessee. Many of those visiting had obvious signs of being addicts. The clinic engaged in unusual practices, like, permitting non-medical staff to assist with medical procedures, such as taking blood pressure, to maximize the number of patients seen. Indeed, in 2011, the clinic was one of the ‘Top 15’ purchasers of oxycodone in the nation. Votrobek and Castellanos made millions of dollars during the clinic's approximately one year of operation. Votrobek and Castellanos established multiple bank accounts, many in third party names, to conceal the windfall profits.
Jason Cole Votrobek had previously been acquitted in Florida of similar charges stemming from his ownership of a Florida pain clinic. During trial, the government offered evidence that Votrobek, 30, of Vero Beach Fla., Roland Rafael Castellanos, 34, of Hollywood, Fla., and Jesse Violante, 35, of Vero Beach, Fla., financed and operated the clinic. Tara Atkins, 36, of Cartersville, Ga., served as the office manager. Dr. James Chapman, 64, of Macon, Ga., served as the primary doctor.
Both Votrobek and Castellanos were convicted on March 26, 2014, after a month-long jury trial on federal drug and money laundering charges for owning and operating the AMG pain clinic, and, on June 19, 2014, they were each sentenced to 15 years in federal prison. Jesse Violante was sentenced to four years and four months in prison and Tara Atkins was sentenced to two years in prison. Dr. James Chapman is presently awaiting trial.
In another recent case, Gerald Young and Rodney Strachan were two Florida men who supplied large amounts of the prescription narcotic oxycodone to pill distributors in northwest Georgia. They were sentenced to federal prison in February 2014.
Young and Strachan stockpiled copious amounts of oxycodone pills, which they would then provide to John Gregory Alvarez and his co-conspirators on consignment. Alvarez’s drug trafficking organization was part of a thirteen-person conspiracy that distributed oxycodone in northwest Georgia and laundered the proceeds of the illicit sales of the pills. The organization obtained the vast majority of its pills from Florida. Specifically, Alvarez, and later co-defendants that he recruited, would travel to Florida on a monthly basis to obtain prescription oxycodone painkillers from both Young and Strachan.
Members of the Alvarez organization would sell the pills for a profit, and then reinvest the proceeds into the organization by using the funds to pay for the previous month’s supply of narcotics. The reach of this organization’s illegal oxycodone distribution included not only the northwest Georgia area, but also extended into Tennessee, West Virginia, and Kentucky. Investigators determined that this conspiracy was responsible for trafficking hundreds of thousands of oxycodone pills.
Young, 69, of Ft. Lauderdale, Fla., was sentenced to ten years, one month in prison to be followed by three years of supervised release. Strachan, 58, of Pompano Beach, Fla., Strachan was sentenced to nine years in prison to be followed by three years of supervised release. They were the last defendants to be sentenced for their roles in this oxycodone distribution ring based in Rossville, Ga. For his role in leading the northwest Georgia drug trafficking organization, Alvarez was sentenced on October 21, 2011, to 21 years, ten months in prison to be followed by six years of supervised release.
“The significant sentences imposed for Young and Strachan are another indicator of our office’s continued commitment to ending the illegal distribution of prescription painkillers in our community,” said Yates. “In recent years, the abuse of oxycodone has risen to epidemic proportions, and fatal overdose rates continue to rise. Anyone who is involved in the illegal acquisition and distribution of pain killers, including unscrupulous doctors, pharmacists, or clinic owners, is on notice that they will be found out and prosecuted.”
In addition to prosecuting criminal cases, the U.S. Attorney’s Office has conducted outreach events to spread the warning to Georgia communities about the dangers of prescription drug abuse and the need for treatment and services for those who become addicted to the substances. In 2011, the office hosted a prescription drug summit at Georgia State University that brought together speakers from national and local law enforcement agencies, medical experts in prescription drug abuse, pharmacists, and substance abuse counselors, to explore the scope of the prescription drug abuse problem and steps to address the problem. In 2014, the office hosted a second summit focusing on the rising dangers of synthetic drugs, convening law enforcement together with medical experts, educators, and university and school officials to publicize the devastating effects of these drugs and how we can best target the problem.
The Worley case was prosecuted by Assistant United States Attorney Elizabeth M. Hathaway, and it was investigated by Special Agents of the Drug Enforcement Administration, the Forsyth County Sheriff’s Office, Dawson County Sheriff’s Office, and the Georgia Drugs and Narcotics Agency.
The Votrobek and Castellanos case was prosecuted by Assistant United States Attorneys G. Scott Hulsey, Cassandra J. Schansman, and Laurel R. Boatright, and investigated by the Georgia Bureau of Investigation, Drug Enforcement Administration’s Diversion Group, Bartow/Cartersville Drug Task Force, Georgia Drugs and Narcotics Agency, and the Internal Revenue Service-Criminal Investigation; with special assistance from the Tennessee Bureau of Investigation and the Kentucky State Police.
Assistant United States Attorney C. Brock Brockington prosecuted the Young and Strachan case, and the investigation was conducted by Special Agents of the Drug Enforcement Administration, officers of the Lookout Mountain Judicial Circuit Drug Task Force, and deputies of the Catoosa County Sheriff’s Office.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com .
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.New York Resident Admits Operating Investor Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHARLES PRINCIPATO, 52, of Rye, N.Y., pleaded guilty on Monday in New Haven federal court to engaging in a scheme to defraud investors of more than $1.3 million.
According to court documents and statements made in court, between approximately January 2011 and February 2014, PRINCIPATO acted as principal of Prince Direct, Inc., an entity that he represented to victim-investors as being in the business of marketing products through advertising such as “infomercials.” PRINCIPATO solicited money from victims, including Connecticut residents, for the stated purpose of funding the business operations of Prince Direct. However, instead of using victims’ money for the stated purposes, PRINCIPATO used it for his own personal expenses, including for vacations and home renovations, and for gambling. Through this scheme, PRINCIPATO defrauded victim-investors of more than $1.3 million.
On June 23, 2014, PRINCIPATO waived his right to indictment and pleaded guilty before Chief U.S. District Judge Janet C. Hall in New Haven to one count of wire fraud. Judge Hall scheduled sentencing for October 7, 2014, at which time PRINCIPATO faces a maximum term of imprisonment of 20 years.
PRINCIPATO is currently released on a $250,000 bond.
This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Nampa Man Pleads Guilty to Drug ChargeRead the Press Release
BOISE – Martin Adam Hernandez, 23, of Nampa, Idaho, pleaded guilty yesterday in United States District Court to conspiring to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Hernandez admitted that in February 2014, he traveled with co-defendant Jason Martin to California in order to obtain methamphetamine. On February 21, 2014, law enforcement agents stopped a vehicle driven by Jason Martin. During a search of the vehicle, agents located approximately two pounds of methamphetamine. Agents recovered evidence showing that Hernandez and Martin obtained the methamphetamine from California with the intent to distribute the methamphetamine in Idaho.
Hernandez is scheduled to be sentenced on September 17, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. Hernandez faces up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release. Co-defendant Jason Martin is scheduled to enter a guilty plea to the same charge on July 1, 2014.
The case was investigated by the Drug Enforcement Administration and the Ada County Sheriff’s Office. The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
More Than 350 Youths Attend Anti-Violence Summit at Friendship Collegiate Academy in Northeast Washington Fourth Annual Event Is Led by U.S. Attorney’s Office and Its Community Partners; U.S. Attorney Machen Urges Youths to “Be A Voice for Positive ChangeRead the Press Release
WASHINGTON - U.S. Attorney Ronald C. Machen Jr., the U.S. Attorney’s Office for the District of Columbia, and numerous community partners today hosted an anti-violence summit attended by more than 350 youths in Northeast Washington.
The fourth annual youth summit took place at Friendship Collegiate Academy and featured discussions about the importance of speaking out against violence and other topics, including the consequences of drug use, the importance of making good decisions, cyber-bullying, and Internet Safety. The event’s co-sponsors included the Project Safe Neighborhoods Task Force, the Columbia Heights/Shaw Family Support Collaborative, the East River Family Strengthening Collaborative, and other law enforcement and community partners.
“We’re here today because we can put an end to this senseless violence,” U.S. Attorney Machen told the youths. “If just one of you listens and thinks twice when you are at that crossroads in your life -- before picking up that gun, before getting in that car where there is nothing but trouble – then this day will be well worth it. You must protect your future at all times. It is your responsibility and yours alone.”
U.S. Attorney Machen concluded his remarks with this challenge: “Ask yourself: Are you willing to stand up for what you believe and know in your heart is the right course of action? Are you willing to say no to drugs, no to abuse, no to bullying, no to hatred, no to retaliation? I believe that each one of you has the strength and courage to do so and in doing so becoming a leader for our community. You can be a voice for positive change.”
The event, emceed by DJ Flava of WKYS Radio (93.9 FM), featured speakers, entertainment, and invaluable resources. Performers included Young Motive, KRU3H, and Main Girl.
The summit assembles young people from under-served neighborhoods in the District of Columbia to discuss the most pressing public safety challenges facing their communities. Previous summits also attracted more than 300 youth participants. The goal is to reach out to area youth on current public safety topics in an informative and inspiring way.
Several collaborative partners joined in the day’s programs, including the Ward 3 and 4 D.C. Prevention Center; the Metropolitan Police Department; the Street Wize Foundation; Black Women for Positive Change; Friendship Collegiate Academy; the National Institute on Drug Abuse; the Street Wize Foundation; and the National Center for Missing and Exploited Children. The effort is supported by Project Safe Neighborhoods, a Department of Justice initiative aimed at reducing gun and gang crimes.
The youth summit is one in a series of community events sponsored by the U.S. Attorney’s Office for the District of Columbia, including town hall meetings, crime prevention presentations, and various outreach programs for people of all ages.
14-153Miami-Dade County Resident Pleads Guilty in Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), announce that Crystal Booker, 31, Miami-Dade County pled guilty today to one count of filing a false claim with the IRS, in violation of Title 18, United States Code, Section 287. Sentencing is scheduled for September 5, 2014. At sentencing, Booker faces a maximum term of five years in prison.
According to court documents, defendant Orlando Cairo, 32, Miami-Dade County, was involved in a stolen identity income tax refund fraud scheme where he obtained the names, social security numbers, and other personal identifying information of individuals and unlawfully used this information to file and cause to be filed fraudulent income tax returns with the IRS. The returns reported false withholdings and requested refunds based on fraudulent IRS Forms W2-G, purportedly issued by the Florida Lottery Commission when an individual has gambling income exceeding a certain threshold amount.
According to court records, Booker assisted Cairo in this scheme by opening approximately eighteen bank accounts at financial institutions located in Broward and Miami-Dade counties. The fraudulent refunds that the IRS paid out were deposited into these bank accounts. Cairo filed and caused to be filed 378 returns identifying one of Booker’s accounts as the account where the refund should be deposited. The returns requested $2,128,841 in fraudulent refunds. In furtherance of the scheme, Cairo, with Booker’s assistance, presented to the IRS a fraudulent tax return, which claimed an income tax refund of $7,064. The refund was paid into one of the bank accounts that Booker opened.
On May 14, 2014, Cairo was sentenced to 120 months in prison, to be followed by three years of supervised release, and was ordered to pay $277,133.58 in restitution. He pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Mr. Ferrer commended the investigative efforts of IRS-CI and USPIS. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
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.
Media AdvisoryRead the Press Release
Montgomery, Alabama - The United States Attorney’s Office will hold a press conference in Dothan, Alabama to announce several indictments and arrests concerning illegal firearms sales at a single location in the Dothan area.
The press conference will be held on Monday, June 30, 2014 at 10:30 a.m., at the Federal Building and U.S. Courthouse in Dothan, located at 100 West Troy Street, Dothan, Alabama, and the media is invited. A press release and other documents will be provided at the conference.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Manhattan U.S. Attorney Files Civil Fraud Suit Against Hospital Group for Fraudulently Delaying Repayment of Nearly $1 Million of Medicaid OverchargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas P. DiNapoli, the New York State Comptroller, today announced the filing and unsealing of a civil fraud lawsuit against CONTINUUM HEALTH PARTNERS, INC. (“CONTINUUM”), BETH ISRAEL MEDICAL CENTER d/b/a MOUNT SINAI BETH ISRAEL (“BETH ISRAEL”), and ST. LUKE’S-ROOSEVELT HOSPITAL CENTER d/b/a MOUNT SINAI ST. LUKE’S and MOUNT SINAI ROOSEVELT (“SLR”) for the hospitals’ fraudulent delay in fully repaying nearly $1 million in Medicaid overpayments for almost two years after it had discovered the overpayments. Federal law requires that when a recipient of Government funds discovers it has been overpaid, it must repay the Government within 60 days, but the hospitals in this case did not complete their repayments for nearly two years, and then only after repeated Government inquiries.
Manhattan U.S. Attorney Preet Bharara said: “The law requires hospitals that receive federal funds to which they are not entitled to promptly return them. They cannot just keep the money – after learning that they should not have received it – in the hopes that the government will not figure it out. To do so is fraud. I want to thank the office of New York State Comptroller Thomas DiNapoli, a frequent partner in these types of cases, for their excellent work in this investigation.”
New York State Comptroller Thomas P. DiNapoli said: “New York State’s Medicaid program costs taxpayers more than $50 billion annually. Fraud in the Medicaid program affects all New Yorkers and will not be tolerated. Audits and investigations by my office have found billions of those dollars lost to waste, fraud and abuse. We will continue to work with federal and state law enforcement to combat Medicaid fraud statewide. I thank U.S. Attorney Preet Bharara for his efforts to prosecute this case, which stemmed from the work of my office, and bring unscrupulous providers to justice.”
According to the allegations in the Government’s Complaint filed in Manhattan federal court:
CONTINUUM submitted hundreds of improper claims to Medicaid in 2009 and 2010 on behalf of BETH ISRAEL and SLR, totaling nearly $1 million, due to a software problem. These claims arose from care provided to patients enrolled in a Medicaid Managed Care Organization (the “MCO”), which contracted with healthcare providers. Under the applicable Medicaid regulations, these providers were entitled to receive as payment for care rendered to the enrolled patients only the amount paid by the MCO and were not entitled to obtain additional payments. A computer glitch caused the MCO erroneously to indicate to its contracted providers, including BETH ISRAEL and SLR, that they should seek additional reimbursement from Medicaid for the healthcare services they provided to the enrollees. CONTINUUM, on behalf of BETH ISRAEL and SLR, thus submitted the improper claims to Medicaid, and received payment for most of them.
Despite becoming aware of the software issue in late 2010 and, further, being provided in early February 2011 with a spreadsheet by a CONTINUUM employee who had identified virtually all of the claims affected by the issue, CONTINUUM and the hospitals failed to take appropriate steps to timely repay the claims. Instead, their repayments occurred only as the Office of the New York State Comptroller brought groups of potentially affected claims to CONTINUUM’s attention, over the course of more than a year. CONTINUUM and the hospitals repaid the remaining approximately 300 affected claims only after this Office issued a Civil Investigative Demand to CONTINUUM in June 2012, and the repayments were completed only in early 2013.
The Complaint in this case was filed under the False Claims Act, which punishes violators who submit false claims to the Government or knowingly attempt to avoid an obligation to repay federal funds. The allegations of fraud stated in the Complaint were first brought to the attention of the Government by a whistleblower, who filed a lawsuit under the qui tam provisions of the False Claims Act. Those provisions allow private parties who have knowledge of fraud committed against the Government to file suit on behalf of the Government and share in any recovery. The United States may then intervene and file a complaint, as it did here.
Mr. Bharara praised the investigative work of the Office of the State Comptroller. He also thanked the U.S. Department of Health and Human Services, Office of Inspector General, for its assistance in this case.
The case is being handled by the Office’s Civil Frauds Unit. Civil Frauds Unit Co-Chief Rebecca C. Martin and Assistant U.S. Attorney Jean-David Barnea are in charge of this matter.
U.S. v. Continuum HealthPartners, Inc., et al. Complaint-In-Intervention
Manhattan U.S. Attorney Announces Guilty Plea of New York State Assemblywoman to Citizenship and Bankruptcy Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that New York State Assemblywoman GABRIELA ROSA was charged with, and pled guilty to, two federal felony charges arising out of her efforts to obtain United States citizenship through fraud and fraudulently to conceal assets and income from a federal bankruptcy court. ROSA pled guilty in Manhattan federal court before United States District Judge Denise L. Cote to a two-count information (the “Information”) charging her with one count of making false statements to immigration authorities, and one count of making false declarations to a federal bankruptcy court. ROSA pled guilty pursuant to a plea agreement with the United States Attorney’s Office that requires her, among other things, to resign from office upon entry of her plea.
Manhattan U.S. Attorney Preet Bharara said: “Gabriela Rosa’s crimes cut to the heart of her legal qualification to serve the people of the State of New York as a New York State Assemblywoman. She gained the ability to run for that office only as a result of a years-long immigration fraud, and then she compounded her lack of fitness to serve by defrauding a federal bankruptcy court. Now she faces losing her position and prison time for her actions.”
According to the superseding information, the plea agreement, and statements made today in Court:
The Marriage and Naturalization Fraud Scheme
The New York State Constitution states that only United States citizens may serve as members of the New York State Legislature. In November 2012, ROSA was elected to the New York State Legislature as an Assemblywoman for Assembly District 72 in Manhattan, and is currently serving a two-year term in the Assembly.
ROSA is a citizen of the Dominican Republic and had no citizenship status in the United States until 2005. In December 2005, ROSA was naturalized as a United States citizen as a result of a scheme to obtain legal residency and ultimately citizenship through a sham marriage. ROSA paid a United States citizen (“Spouse-1”) approximately $8,000 to enter into a sham marriage with her while she maintained a relationship with another individual who later became her husband (“Spouse-2”). In numerous submissions and statements to immigration authorities made under penalty of perjury between in or about 1996 and in or about 2005, ROSA falsely represented to immigration authorities that she had entered into a bona fide marriage with Spouse-1, and that she had never given false or misleading information to a U.S. immigration official while applying for immigration benefits.
The Bankruptcy Fraud Scheme
In September 2009, ROSA filed a voluntary petition for bankruptcy, under Chapter 7 of the United States Bankruptcy Code, in the United States Bankruptcy Court for the Southern District of New York (the “Petition”). Through the Petition, ROSA sought to liquidate over $30,000 in debt that she had accumulated on, among other things, credit card charges and personal loans. In the Petition, which ROSA signed under penalty of perjury, and in subsequent documents submitted in support of the Petition, which were also signed under penalty of perjury, ROSA knowingly and willfully made several false declarations and statements. Among other things, ROSA fraudulently omitted her ownership of a cooperative apartment in Manhattan (the “Apartment”) from the Petition, which required her to list all real or personal property in which she had any ownership interest. ROSA, who worked at the time as a legislative assistant in the New York State Legislature, also failed to list outside income she earned as a political consultant and income earned by Spouse-2 in the Petition and supporting documents.
In her plea allocution today before Judge Cote, ROSA admitted that she had entered into a sham marriage in an effort to obtain citizenship and had submitted a fraudulent petition to Bankruptcy Court. ROSA also agreed, pursuant to the terms of her plea agreement, to the return of a campaign contribution unlawfully received from a representative of a foreign government.
ROSA, 47, of Manhattan, faces a total statutory maximum sentence of 10 years in prison. ROSA also faces a term of up to three years’ supervised release and a fine of up to $250,000. She also must pay restitution and forfeiture arising out of her bankruptcy fraud offenses. The maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Judge Cote set a sentencing date for ROSA of October 3, 2014 at 10am.
Mr. Bharara praised the outstanding investigative work of the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Howard S. Master and Jason Masimore are in charge of the investigation.
Luzerne County Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man pleaded guilty yesterday before U.S. District Court Judge Robert D. Mariani in Scranton to sex trafficking of a minor.
According to United States Attorney Peter Smith, the defendant, Travis Humphrey, age 26, admitted that he helped others commit the crime by recruiting and transporting a 16-year-old female to engage in commercial sex acts in motels in Pennsylvania and New Jersey. Humphrey and others rented motel rooms and posted “escort” advertisements and photographs on the backpage.com website during May 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.
Humphrey faces a mandatory minimum sentence of 10 years in prison and a possible maximum sentence of life in prison. Judge Mariani ordered a pre-sentence investigation to be completed and scheduled sentencing for the week of September 22, 2014.
Humphrey’s wife and co-defendant, Kyoni Humphrey, previously pleaded guilty to transporting a female from Pennsylvania to New Jersey to engage in prostitution.
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."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Lee's Summit Man Sentenced for Cyberstalking, Possessing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man was sentenced in federal court today for cyberstalking one victim and possessing child pornography images of another victim.
August W. Jentsch, 25, of Lee’s Summit, was sentenced by U.S. District Judge Gary A. Fenner to five years in federal prison without parole.
On Dec. 30, 2013, Jentsch pleaded guilty to cyberstalking and possessing child pornography.
Jentsch’s first victim notified the police department at the University of Minnesota (where she was attending school) that Jentsch had broken into her e-mail account and obtained nude images of her that were taken when she was 16 years old. The victim had briefly dated Jentsch in December 2007. The victim stated the 20-day relationship was not romantic and never physically intimate.
Jentsch stalked the victim from Jan. 2, 2008, to Aug. 29, 2011, by showing up at her work and residence, texting and e-mailing her, and leaving gifts for her. Beginning in September 2011, Jentsch set up fictitious Facebook profiles of the victim and posted the nude photos and video he had obtained from her e-mail account. This happened four or five times and each time the victim contacted Facebook to have the accounts taken down. Jentsch hacked into the victim’s gmail, Yahoo! E-mail, and Facebook accounts and assumed control of the accounts by changing the passwords. He sent random e-mails with the nude photos of the victim to people in her e-mail contacts. Jentsch also used the victim’s nude images and identity to set up another social media account to invite others to get in touch with the victim through Facebook for sexual activity.
A restraining order was served on Jentsch on Oct. 13, 2011. When a state search warrant was executed at Jentsch’s residence, officers found the images and video of the victim on an SD card that was in his computer. Investigators also discovered a video of child pornography on Jentsch’s computer that involved a second victim. The video portrayed the second victim, who was 15 years old, engaged in sexual activity with Jentsch.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the University of Minnesota Police Department and the Lee’s Summit, Mo., Police Department.
Lancaster Man Sentenced to 33 Months in Federal Prison for Sales of Bath Salts and Synthetic MarijuanaRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Lancaster man was sentenced on Thursday in United States District Court in Harrisburg to 33 months in federal prison for his role in selling and distributing bath salts and synthetic marijuana.
United States Attorney Peter Smith stated that Amerjit Singh Grewal, 34, Lancaster, was sentenced by U.S. District Court Judge Yvette Kane to 33 months imprisonment after pleading guilty to the unlawful distribution of MDPV, a Schedule I controlled substance more commonly referred to as “bath salts,” “plant food” and “research chemicals” falsely marketed for sale in convenience stores and mini-marts.
MDPV is a central nervous system stimulant which can cause hallucinogenic effects in the user. Users have reported bouts of psychosis and numerous deaths around the country have been linked to the use of MDPV.
Grewal obtained large quantities of MDPV in bulk or pre-packed for sale, as well as synthetic marijuana, also falsely marketed for sale as “spice” or “potpourri.” Grewal then distributed the drugs to convenience stores and gas station mini-marts where the drugs would be sold. In March 2012, Grewal sold almost ½ kilogram of bulk bath salts to an undercover officer in the parking lot of a gas station near Grantville.
Judge Kane also ordered Grewal to forfeit to the United States approximately $500,000 seized by investigators from bank accounts held by Grewal and his co-defendant, Kulwinder Singh Grewal, who has yet to be sentenced.
The case was jointly investigated by the Drug Enforcement Administration’s Harrisburg Resident Office, the Food and Drug Administration’s Office of Criminal Investigations, the Pennsylvania State Police, the Dauphin County Drug Task Force and other county and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney William A. Behe.
Laguna Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Keith J. Carr, 30, a member of Laguna Pueblo, pleaded guilty this afternoon to a federal indictment alleging a federal assault charge.
Carr was arrested on Feb. 28, 2014, on an indictment charging him with assault resulting in serious bodily injury. According to the indictment, the assault, which injured another Laguna Pueblo man, occurred on Dec. 20, 2012, within Laguna Pueblo in Cibola County, N.M.
During today’s proceedings, Carr pled guilty to the indictment and admitted that the victim sustained serious bodily injury on Dec. 20, 2012, when Carr crashed the vehicle he was driving and in which the victim was a passenger. According to the plea agreement, Carr was intoxicated and driving at a high rate of speed when he lost control of his vehicle and caused the vehicle to roll and crash. The victim sustained multiple fractures, nasal bone fractures, fracture of the pneumothorax, orbital fractures, and rib fractures as a result of the assault.
Carr has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Carr faces a statutory maximum penalty of ten years in prison.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Lacey Act SentenceRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R. Brown, and NOAA Fisheries Office of Law Enforcement Special Agent in Charge Tracy A. Dunn announce that David Braley was sentenced yesterday in two related cases. First, Braley was sentenced to serve 30 months imprisonment for violations of the Lacey Act, Title 16, United States Code, Section 3372 and 3373. This charge was based on illegal sales of Gulf of Mexico Reef Fish including Red Snapper with a market value of $10,660.50. Braley was ordered to pay $3,731.18 in restitution to the owner of the vessel he used to illegally catch and sell the fish and $319.82 to the National Marine Fisheries Service.
Braley was also sentenced to serve 63 months imprisonment concurrently to the first sentence for retaliation against a witness who had provided information in the Lacey Act Case. This charge was based on postings Braley made on Facebook threatening physical violence to a witness.
This case was jointly investigated by the NOAA Fisheries Office of Law Enforcement, Florida Fish and Wildlife Conservation Commission and Alabama Marine Resource Division. The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama and the Environmental Crimes Section of the Department of Justice.
Kamiah Man Found Guilty of Assaulting A DeputyRead the Press Release
Coeur d'Alene B Paul Lee Oatman, 33 of Kamiah, Idaho, was convicted yesterday by a federal jury in Coeur d'Alene for assault resulting in serious bodily injury, U.S. Attorney Wendy J. Olson announced.
During the four day trial, the jury heard evidence that on July 13, 2013, the defendant assaulted a Kamiah Marshal and fractured his jaw in two places. The marshal was attempting to arrest a friend of the defendant, when the defendant interfered and struck the marshal in the jaw.
Paul Lee Oatman faces up to 10 years in prison, a maximum fine of $250,000.00, and up to 3 years of supervised release.
Sentencing is set for September 15, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
“The jury's verdict sends the clear message that violent interference with a law enforcement officer engaged in his public safety duties will not be tolerated,” said Olson. “All persons have a duty to comply with a law enforcement officer's commands. I commend the hard work of prosecutors and staff from my office and the cooperative investigative work of the Nez Perce Tribal Police Department and the FBI.”
The case was investigated by Nez Perce Tribal Police, Idaho County Sheriff’s Department, Lewis County Sheriff’s Department and the Federal Bureau of Investigation.
Jury Convicts Charlotte Man of Federal Racketeering and Related ChargesRead the Press Release
Defendant Was Among 91 Charged In Operation Wax House
CHARLOTTE, N.C. – A federal jury delivered a guilty verdict on Thursday, June 26, 2014 against a Charlotte man in connection with a $75 million racketeering conspiracy, announced the U.S. Attorney’s Office for the Western District of North Carolina. Following a three-day trial, Steven Jones, 46, was convicted of racketeering conspiracy, securities fraud, wire fraud scheme to defraud investors and money laundering conspiracy.
This conviction is the latest in Operation Wax House, an investigation which began in 2007 and has netted 91 defendants to date, 86 of which have pleaded guilty or been convicted following a trial.
The United States Attorney’s Office is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) and North Carolina Secretary of State Elaine F. Marshall.
The federal criminal trial began on Monday, June 23, 2014, before Senior U.S. District Judge Graham C. Mullen. According to evidence introduced at trial, the criminal enterprise operated from about 2005 until 2012, and engaged in an extensive pattern of racketeering activities, which included investment or securities fraud, mortgage fraud in the form of wire fraud and bank fraud, and money laundering.
According to trial evidence, Jones was a promoter in the enterprise’s investment fraud operations, bringing in multiple investors, including an attorney, who Jones and his co-conspirators defrauded out of $3.7 million. Trial evidence established that throughout a seven year period the enterprise created a series of sham corporations to convince individuals to invest money. When investors would become aware of the problems with one corporation the enterprise would start a new corporation with new officers on paper to continue to defraud still further investors, court records show. Trial evidence also showed that Jones and others defrauded victims not of just money they had, but also caused the victims to take out expensive loans and to invest those loan proceeds based on false promises. According to evidence presented at trial, Jones and his co-conspirators used the investors’ money for personal expenditures, including private jets, high profile offices, entertaining themselves and others, and supporting their luxurious lifestyles. In total, the enterprise’s investment fraud operations took approximately $48 million from investors.
Following the jury’s conviction, Jones was released on home detention with electronic monitoring pending the scheduling of his sentencing hearing.
The racketeering conspiracy charge carries a maximum term of 20 years in prison and a $250,000 fine or twice the gross profits or other proceeds. The securities fraud charge carries a maximum term of 20 years in prison and a $250,000 fine. The wire fraud charge carries a maximum term of 20 years in prison and a $250,000 fine. The money laundering conspiracy charge carries a maximum term of 20 years in prison and a $500,000 fine or twice the amount of criminally derived proceeds. A sentencing date for the defendant has not been set yet.
Five defendants have charges pending in the case, two of which are international fugitives. Each remaining defendant and his or her status are listed below.
• Ramin Amini, 45, of Tehran, Iran, is charged with racketeering conspiracy, mortgage fraud and money laundering conspiracy. Role: Leader and promoter in the scheme. Status: International fugitive. • Kurosh Mehr, 52, of Charlotte is charged with racketeering conspiracy, mortgage fraud and money laundering. Role: Promoter and buyer. Status: On bond; Scheduled for trial September 2014. • Ann Tyson Mitchell, 62, of Charlotte, is charged with racketeering conspiracy, mortgage fraud and money laundering. Role: Facilitator. Status: On bond; Scheduled for trial September 2014. • John Wayne Perry, Jr., 32, of Charlotte, is charged with racketeering conspiracy and money laundering conspiracy. Role: Promoter. Status: On bond; Scheduled for trial after September 2014. • Nazeere Saddig, 41, formerly of Charlotte, is charged with racketeering conspiracy and mortgage fraud. Role: Promoter and buyer. Status: International Fugitive.
Operation Wax House in the Western District of North Carolina is being handled by the Charlotte Division of the FBI and the Criminal Division of the IRS for the Financial Fraud Enforcement Task Force, along with the Securities Division of the North Carolina Secretary of State. The case was tried by Assistant United States Attorney Maria K. Vento and Special Assistant United States Attorney Kevin Harrington, of the Securities Division of the North Carolina Secretary of State.
Today’s announcement is part of an effort by President Obama’s Financial Fraud Enforcement Task Force (FFETF), created in November 2009, to combat financial fraud crimes by waging aggressive, coordinated and proactive investigations and prosecutions. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, the task force is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force,www.stopfraud.gov.
The names and case numbers of the defendants charged to date in Operation Wax House are listed below, organized by their alleged role in the scheme.
Attorneys and Paralegals
Crawford/Mallard, Michelle 3:11cr374
Gates, Christine 3:09cr100
Norwood, Kelli, 3:09cr162
Rainer, Demetrius 3:08cr239/241
Smith, Troy, 3:08cr264Bank Insiders
Brown, Jamilia, 3:10cr124
Eason, Danyelle, 3:10cr116
Henson, Vic. F., 3:10cr124
Jackson, Mitzi, 3:11cr374
Ramey, Bonnie Sue, 3:10cr124Builders and Sellers
Fink, James, 3:11cr374; 3:12cr239
Jackson, Jennifer, 3:09cr241
Smith, Kelvis, 3:12cr238
Viegas, Jeffrey, 3:12cr298
Wittig, Mark, 3:12cr335
Wood, Gary, 3:09cr208Facilitators and Financiers
Hickey, Denis, 3:09cr103
McClain, Landrick, 3:10cr124
Mitchell, Ann Tyson, 3:12cr239
Panayoton, Sherrill, 3:11cr176
Taylor, Alicia Renee, 3:10cr124
Wilson, Willard, 3:09cr161Buyers
Banks, Arketa, 3:12cr297
Clark, Benjamin, 3:12cr239
Hillian, Kirk, 3:12cr83
Mathis, Charles, 3:10cr1
Mobley, Sarena, 3:10cr124
Moore, George, 3:12cr337
Richards, Dan, 3:10cr119
Smith, Kevin, 3:12cr341
Tyler, Glenna, 3:11cr200
Vaughn, Mary, 3:12cr329
Wallace, Jamaine, 3:12cr330
Wellington, William, 3:12cr333Notary Publics
Willis, Anthony, 3:09cr218
Myles, Denetria, 3:12cr239Appraiser
Darden, Clinton 3:10cr108Mortgage Brokers
Bradley, Bonnette, 3:12cr299
Clarke, Linda, 3:10cr120
Flood, Ericka, 3:10cr124
Goodson-Hudson, Crystal, 3:12cr339
Mahaney, Robert, 3:12cr34-0
Scagliarini, Coley, 3:11cr374
Staton, Walter, 3:10cr113
Vaughn, Danielle, 3:12cr329
Williams, Marcia, 3:12cr334
Williams, Sean, 3:12cr336
Woods, Joseph, 3:09cr178Real Estate Agents
Belin, Chris, 3:11cr374
Clark, Christina, 3:09cr44
Lee, Shannon, 3:12cr338
Pasut, Holly Hardy, 3:12cr331
Wolf, Nathan Shane, 3:12cr239
Wood, Gary, 3:09cr208Promoters
Amini, Ramin, 3:12cr239
Barnes, Vonetta Tyson, 3:12cr239
Brown, William, 3:12cr239
Bumpers, Travis, 3:12cr239
Carr, Stephen, 3:10cr124
Clarke, Benjamin, 3:12cr239
Clarke, Reuben, 3:10cr120
Coleman, Gregory, 3:10cr118
DeSimone, Frank, 3:12cr239
Dooley, Lorie, 3:12cr239
Hitchcock, Jimmy, 3:11cr374
Hubbard, Glynn, 3:12cr239
Hunt, Victoria, 3:12cr239
Hunter, Toby, 3:12cr239
Johnson, Ralph, 3:12cr239
Jones, Steven, 3:12cr239
Jones, Tyree, 3:10cr230
Long Waylon, 3:12cr239
Marshall, Michael, 3:07cr283
McDowell, John, 3:12cr239
McPhaul, Elizabeth, 3:10cr114
Mehr, Kurosh, 3:12cr239
Mitchell, Ann Tyson, 3:12cr239
Moye, Melvin, 3:12cr239
Myles, Denetria, 3:12cr239
Newland, Matthew, 3:12cr239
Perry, John Wayne, Jr., 3:12cr239
Perry, Kim, 3:10cr25
Phillips, Rick, 3:10cr115
Saddig, Nazeere, 3:12cr239
Sharreff-El, Drew, 3:10cr124
Sherald, Kiki, 3:10cr117
Simmons, Aaron, 3:09cr240
Snead, Todd, 3:10cr124
Staton, Lisa, 3:10cr113
Thorogood, Donte, 3:12cr239
Tyson, Carrie, 3:12cr239
Tyson, James, Jr. 3:12cr239
Tyson, James, Sr., 3:12cr239
Wellington, Phillip, 3:12cr332
Wood, Purnell, 3:12cr239International Narcotics Trafficker Sentenced in Manhattan Federal Court to 54 Years in Prison for the Manufacture, Shipment, and Importation of Tons of Cocaine into the United States and Other CountriesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that YESID RIOS SUAREZ was sentenced today in Manhattan federal court to 54 years in prison for his role in overseeing the manufacture of tens of thousands of kilograms of cocaine in clandestine laboratories in Colombia, and the distribution and importation of tons of cocaine to the United States and other countries. RIOS SUAREZ, a citizen of Colombia, pled guilty in February 2014. He was sentenced today by U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “Yesid Rios Suarez was a leader of a conspiracy to bring into the United States tons of Colombian cocaine. He used violence to further his aims, including ordering murders, and will now pay for his crimes with a lengthy prison term.”
According to documents filed in this case, statements made at related court proceedings, and witness testimony at a two-day evidentiary hearing in May 2014:
Between 1992 and his arrest in Venezuela in 2011, RIOS SUAREZ, along with his co-conspirators, oversaw the manufacture of thousands of kilograms of cocaine in clandestine laboratories that they operated in the Arauca department of Colombia and other areas of Colombia near the Venezuelan border. During that time, RIOS SUAREZ and his co-conspirators also oversaw the distribution of thousands of kilograms of cocaine from Colombia and Venezuela to the United States and other countries through various intermediate shipping points. Specifically, once the cocaine had been manufactured in laboratories in Colombia, RIOS SUAREZ worked with others to launch planes carrying multi-hundred-kilogram loads of cocaine from clandestine landing strips operated by RIOS SUAREZ and his co-conspirators in Colombia and Venezuela.
Throughout this time, RIOS SUAREZ also directed others to carry weapons and to use violence in furtherance of the charged narcotics conspiracy. On one occasion, RIOS SUAREZ caused those working at his direction to murder two men in order to maintain the secrecy of RIOS SUAREZ’s narcotics trafficking operation. During the course of the narcotics conspiracy, RIOS SUAREZ also oversaw the planning and preparation for an attack on an oil pipeline located in Colombia, which attack was intended to divert the Colombian military’s attention from RIOS SUAREZ’s narcotics trafficking activities being carried out in the same region. The planned attack – which was ultimately foiled by Colombian authorities – involved dropping explosives from an airplane onto an oil pipeline.
All told, prior to his arrest in 2011, RIOS SUAREZ worked for nearly two decades overseeing critical steps in the manufacture, distribution, and importation into the United States and other countries of thousands of kilograms of cocaine, and causing others to engage in violence in furtherance of his narcotics trafficking operation.
In addition to the prison term, Judge Forrest ordered RIOS SUAREZ, 46, to pay a $1 million fine and a $100 special assessment.
Mr. Bharara praised the outstanding efforts of the DEA’s Bogota Country Office and the DEA’s New York Organized Crime Drug Enforcement Strike Force; the Government of the Republic of Colombia; and the U.S. Department of Justice’s Office of International Affairs.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Adam Fee and Sean S. Buckley are in charge of the prosecution.
Houston Man Arrested for Beaumont Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old Houston man has been arrested for a bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher M. Carmon Thomas was taken into custody in Houston on June 25, 2014 and went before U.S. Magistrate Judge Keith F. Giblin on June 26, 2014 for an Initial Appearance.
According to information presented in court, on June 3, 2014, Thomas entered the Wells Fargo Bank on Gladys Avenue in Beaumont, Texas and presented the bank teller with a demand note. During the robbery, Thomas displayed a gun tucked into his pants by lifting his shirt. Thomas fled the bank with $2,309.00. Surveillance camera photographs were disseminated by the media and Thomas was identified by citizen tipsters and the victim bank teller.
If convicted, Thomas faces up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John Craft.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Gretna Man, Keith Joseph Mcgee, Convicted by A Federal Jury of Sexual Exploitation of ChildrenRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that a federal jury has convicted a Gretna man guilty of crimes involving the sexual exploitation of children.
KEITH JOSEPH MCGEE, age 30, of Gretna, Louisiana, was found guilty of all three counts with which he was charged, specifically: attempting to coerce a minor to produce images of sexually explicit conduct; receiving sexually explicit images of a 14-year-old boy; and receiving sexually explicit images from a 15-year old boy.
According to evidence introduced in trial, MCGEE, formerly a foreign language teacher at several Catholic high schools, posted numerous personal advertisements on an online classified advertisement website seeking sexual interactions with “young teens” and “Catholic high school boys.” Additionally, between January 29, 2013, and February 11, 2013, MCGEE used e-mail, text messages, and several social media applications to correspond with two actual minors and an undercover FBI agent posing as a minor. During those correspondences, MCGEE confirmed that each person was a minor and then subsequently encouraged and enticed them to provide him with sexually explicit pictures. In addition to seeking sexually explicit pictures, MCGEE attempted to arrange sexual liaisons with the boys, including driving to the home of the 15-year-old boy at around 2:00 a.m. Additional trial evidence indicated that MCGEE had engaged in sexually explicit conversations and exchanged sexually explicit pictures with approximately six other minors who have not been identified.
MCGEE faces a mandatory minimum term of imprisonment of 15 years and a maximum penalty of 70 years, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender. Sentencing has been scheduled for September 23, 2014, at 9:00 a.m., before U.S. District Judge Jay C. Zainey.
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.”
This case was investigated by agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorneys Jordan Ginsberg and Patrice Harris Sullivan.
Gang Member Sentenced as Armed Career Criminal for Firearm PossessionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Edlord Dieujuste, 30, of Lake Worth, a documented member of the criminal street gang “Top 6”, was sentenced yesterday by United States District Judge Kenneth L. Ryskamp to 180 months (15 years) in federal prison, to be followed by three years of supervised release for being an armed career criminal in possession of a firearm and ammunition.
According to court documents, Dieujuste has multiple prior felony convictions for robbery with a deadly weapon, robbery, aggravated assault with a deadly weapon, robbery by sudden snatching, and felon in possession of a firearm. On November 1, 2013, Dieujuste was arrested by the Palm Beach County Sheriff’s Office Gang Unit on local charges after detectives recovered a loaded semi-automatic pistol and marijuana from his vehicle following a traffic stop.
A federal grand jury indicted Dieujuste on December 3, 2013, charging him with being a felon in possession of a firearm and ammunition and possession of marijuana. In February 2014, Dieujuste pled guilty to the indictment as charged.
Dieujuste was sentenced under the Armed Career Criminal Act, which provides a sentencing range of fifteen years to life for individuals who have been convicted of federal gun crimes and have at least three prior felony convictions for crimes of violence and/or serious drug offenses.
Mr. Ferrer commended the ATF, and the Palm Beach County Sheriff’s Office, for their work on this case. This case was prosecuted by Assistant U.S. Attorney John McMillan.
This case was brought as part of Project Safe Neighborhoods (PSN) which is the anti-gang, anti-gun violence initiative of the United States Department of Justice. This program emphasizes and facilitates cooperative federal, state and local prosecution of firearm crimes, violent criminals, repeat violent offenders and gang related criminal activity.
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.
Former Shaw Executive Convicted of Insider TradingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that a former executive of the Shaw Group has pled guilty to engaging in insider trading. The conviction is the result of an ongoing federal investigation into the use of pre-merger confidential information regarding the 2012 acquisition of Shaw by Chicago Bridge and Iron Company (CB&I).
SCOTT DAVID ZERINGUE, age 48, of Baton Rouge, Louisiana, pled guilty today before Chief Judge Brian A. Jackson to one count of conspiracy to commit securities fraud in violation of Title 18, United States Code, Section 371. ZERINGUE also agreed to forfeit proceeds derived from the offense.
In the Spring of 2012, Shaw began considering a potential merger. At the time, ZERINGUE was the Vice President of Construction Operations for Shaw’s Plant Services Division. In late July 2012, Shaw and CB&I came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012. As a result of the announcement, Shaw’s stock price rose substantially.
At today’s proceeding, ZERINGUE admitted that, prior to the public announcement, he received confidential inside information regarding the impending merger which he passed on to a family member with the understanding that the family member would trade in Shaw stock based on such information. Thereafter, ZERINGUE and the family member both used the inside information obtained by ZERINGUE to purchase Shaw stock and stock options. As a result of the insider trading, ZERINGUE and the family member made over $750,000 in profits.
ZERINGUE faces a sentence of up to 5 years imprisonment, a fine of up to $250,000, and up to 3 years of supervised release following imprisonment.
U.S. Attorney Green stated: “Insider trading undermines the level playing field that is essential to the integrity and fair functioning of the stock market. We will continue to aggressively investigate and prosecute individuals who exploit confidential company information for personal gain at shareholder expense.”
This matter is being investigated by the United States Secret Service, the Federal Bureau of Investigation (FBI), and the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant United States Attorney J. Christopher Dippel, Jr., and Senior Litigation Counsel M. Patricia Jones.
The investigation is continuing. Anyone with information concerning pre-merger insider trading of Shaw stock is urged to contact Special Agent Moe Hattier of the FBI at 225-291-5159 or Special Agent Kevin Bodden of the U.S. Secret Service at 225-925-5436.
Former Lubbock Resident Admits Possessing Child Pornography Involving Image of Prepubescent MaleRead the Press Release
LUBBOCK, Texas — A former resident of Lubbock, Texas, appeared today before U.S. District Judge Sam R. Cummings and pleaded guilty to a felony child pornography offense, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jeremy Daniel Labrec, 23, pleaded guilty to one count of possession of child pornography. He faces a maximum statutory penalty of 10 years in federal prison, a lifetime of supervised release and a $250,000 fine. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
Labrec, who is in custody, admitted that while he lived in Lubbock, he used his cell phone to take a sexually explicit photograph of a prepubescent minor. He further admitted sending that image, via Skype, to an acquaintance who shared his interest in child pornography depicting prepubescent minor males.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated and Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Former Bronx Not-For-Profit Program DirectorSentenced in Manhattan Federal Court for BriberyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SATNARINE SEEBACHAN, formerly a program director at Bronx Shepherds Restoration Corporation (“Bronx Shepherds”), a not-for-profit corporation in the Bronx, New York, was sentenced to six months of weekend imprisonment to be served during a five year term of probation after having been found guilty by a jury of soliciting and accepting a bribe in the form of labor and materials for the renovation of his residence from a contractor who received federally funded contracts from Bronx Shepherds. SEEBACHAN was sentenced in Manhattan federal court by U.S. District Judge George B. Daniels, who also presided over the five-day jury trial.
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
SEEBACHAN was employed as a program director by Bronx Shepherds, a not-for-profit corporation that provides housing restoration to low-income individuals in the Bronx, New York. As program director, SEEBACHAN was responsible for administering two federally funded home improvement programs, namely, the Weatherization Assistance Program (“Weatherization Program”) and the Home Program (“Home Program”) (collectively, the “Programs”).
The Weatherization Program is a federal program funded by the U.S. Department of Energy and the U.S. Department of Health and Human Services. The Weatherization Program provides weatherization assistance, such as improved lighting and heating systems, window caulking, and wall and ceiling insulation, to buildings with low-income residents in order to make the buildings more energy efficient. The Home Program is a federal program funded by the U.S. Department of Housing and Urban Development. The Home Program provides renovation assistance to low-income individuals who reside in small family homes, such as repairs to ceilings, bathrooms, kitchens, windows, and sidewalks. As a program director for Bronx Shepherds, SEEBACHAN was in charge of the bidding process to select the construction companies to perform the necessary work on the buildings, apartments, and houses that Bronx Shepherds had selected to participate in the Programs.
Toward the end of 2005, SEEBACHAN purchased a residence in Glen Cove, New York. In 2006, 2007, and again in 2010, at the direction of SEEBACHAN, a construction company that bid for and received contracts from Bronx Shepherds to perform renovation work under the Programs (the “Contractor”) supplied materials and labor for construction and renovation work performed at SEEBACHAN’s residence. Specifically, the Contractor paid for marble that was installed in SEEBACHAN’s residence and did extensive concrete beautification renovations to the driveway, front walkway, and back patio and pool area.
At the time the Contractor paid for the marble and performed the concrete work at SEEBACHAN’s residence, SEEBACHAN promised the Contractor that he would ensure that the Contractor received lucrative contracts to perform repairs on apartment buildings Bronx Shepherds owned and managed. The total dollar value of the labor and materials that SEEBACHAN obtained from the Contractor was more than $140,000. SEEBACHAN was found guilty of one count of bribery concerning an organization that receives federal program funds.
In addition to weekend imprisonment and probation, Judge Daniels also ordered SEEBACHAN, 52, of Glen Cove, New York, to perform 500 hours of community service, and pay a $10,000 fine and a $100 special assessment.
Mr. Bharara praised the investigative work of the New York State Inspector General’s Office.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecution.
Former Bail Bondsman Indicted in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Roderick Neal, of Dothan, Alabama, was indicted for stolen identity refund fraud crimes, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of the indictment. Neal was charged with conspiracy, wire fraud and aggravated identity theft.
According to the indictment, Neal worked as a bail bondsman in Dothan, and stole personal identifying information. Neal provided this information to another individual who, in turn, provided the stolen identities to Ivory Bolen, and she used those identities to file fraudulent tax returns with the Internal Revenue Service (IRS) claiming refunds.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Neal faces a statutory maximum sentence of 10 years in prison for conspiracy, a statutory maximum sentence of 20 years in prison for each wire fraud count and a mandatory sentence of two years in prison for the aggravated identity theft counts.
This case was investigated by special agents of the IRS - Criminal Investigation. Trial Attorneys Charles Edgar and Jason Poole of the Tax Division are prosecuting the case with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama, in particular Assistant U.S. Attorney Todd Brown.
Former Attorney Sentenced to Nearly Six Years in Prison for Bilking Investors of $2.8 MillionRead the Press Release
BIRMINGHAM -- A federal judge late Thursday sentenced a former Birmingham attorney to five years and 11 months in prison for a securities fraud scheme through which he took more than $2.8 million from 12 investors and spent it on a lavish home, private jets, championship football trips and island vacations, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and Alabama Securities Commission Director Joseph Borg.
U.S. District Judge Virginia Emerson Hopkins sentenced CHRISTOPHER SHAWN LINTON, 35, of Alabaster, on one count each of wire fraud, mail fraud, securities fraud and money laundering as part of his investment fraud scheme. She also sentenced him on one bank fraud count for submitting a fraudulent commercial loan application to Iberia Bank for a $908,650 loan. Linton used fraudulently obtained investor funds to pay the down payment on the commercial loan, but then defaulted on the loan by writing a $78,960 bad check at closing for his remaining equity on the loan. Linton pleaded guilty to the charges in February.
As part of his plea agreement, Linton is required to pay $2.5 million in restitution to the investors he defrauded, and to pay Iberia Bank $19,850 in restitution. The government's sentencing memorandum notes, however, that the Alabaster house Linton bought with $560,000 in investor funds, and then lavishly improved, cannot be used as means to compensate Linton's victims because there is not enough equity to satisfy a court judgment because Linton used the house as collateral on business and personal loans, which take priority over any judgment.
Linton must report to prison Sept. 22.
"The victims in this case trusted that this defendant, an attorney, would protect their investments. Instead, he robbed them of their savings so he could live a fantasy life of luxury," Vance said. "I appreciate the hard work of the FBI and the Alabama Securities Commission in helping us bring Mr. Linton to justice."
"Mr. Linton risked his clients' retirement funds, money for their children's education, and for their livelihood," Schwein said. "His actions are a dishonor to those who practice law with the utmost commitment and integrity, and the sentence handed down today recognizes his deplorable conduct."
"This Commission feels strongly that the sentence imposed by the federal court is proper and just," said Borg, the ASC director. "We expect this sentence to send a powerful message that professional misconduct that causes damage to our citizens' financial security, and to public confidence in the integrity of the practice of law, will be dealt with swiftly and appropriately. We are very proud to successfully combine our efforts with the United States Attorney for the Northern District of Alabama, Joyce Vance, and the Federal Bureau of Investigation to ensure that justice is served on behalf of the victims."
Unlike Linton, the people who invested with him "worked hard and saved for years hoping to do a small remodeling project on their home," or to take grandchildren on vacations or leave money behind for their family, the government said in its sentencing memorandum. Some of the investors now need the money for assisted living and medical conditions, the government said.
"Linton's frivolous spending and reckless disregard for the investors' funds will have a lasting financial and emotional impact on the investors and their families for decades," the sentencing memorandum said.
According to the memorandum and Linton's plea agreement, he conducted the securities fraud scheme as follows:
In 2007, Linton became an officer, partner and part owner of a business known as Integrity Capital Inc., by purchasing stock in the company. Integrity Capital Inc. was located in the greater Birmingham area and its business was to make advance payments to lawyers who had submitted payment vouchers for work performed for the State of Alabama. Integrity Capital would then receive the voucher payments from the state and keep a percentage as a fee.
In 2009, Linton formed Integrity Capital LLC. Beginning about August 2009, Linton recruited advisors to solicit investments in Integrity Capital LLC in order to purchase the assets and capital stock of Integrity Capital Inc. Between September 2009 and December 2011, 12 individuals invested more than $2.8 million in Integrity Capital LLC. The investors mailed, wired or delivered money to Linton, who deposited the money into one of several bank accounts held by the law firm where he was a partner.
Former Army Soldier Sentenced to Life in Prison for Murder of His Five Year Old DaughterRead the Press Release
Army Soldier Naeem Williams, 34, will receive a life sentence for murdering his five-year-old daughter, Talia Williams, after a federal jury in Honolulu, Hawaii, reported today it was unable to reach a unanimous decision on whether to impose the death penalty.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney Florence T. Nakakuni of the District of Hawaii made the announcement.
The jury previously found Williams guilty of killing his daughter on July 16, 2005, by engaging in child abuse that included beating and punching her at the family’s residence on Wheeler Army Airfield in Honolulu. Williams was also convicted of participating, along with his wife, Delilah Williams, in a pattern and practice of assault and torture from December, 2004, until July 16, 2005, that resulted in Talia’s death. In addition, Williams was convicted of conspiring to engage in a pattern and practice of assault and torture leading to death, obstructing justice, and making false statements to Army Criminal Investigation Division agents on the night of his arrest in July 2005.The evidence presented at trial demonstrated that Naeem Williams and his wife Delilah Williams beat Talia Williams almost daily. Naeem Williams testified that the abuse was aimed at disciplining his daughter as a result of bathroom accidents and was exacerbated due to frustrations he was experiencing in his marriage. The evidence indicated the defendant’s physical abuse included punching Talia repeatedly, commanding her to eat her own feces, and using duct tape to bind her from head to toe to a bed post where she was whipped with a belt. In the hours preceding Talia’s death, Williams struck a frontal blow to Talia and her head slammed backwards against the floor. Talia then appeared to have a seizure.
This case was investigated by the FBI and the Army Criminal Investigation Division. The case was prosecuted by Trial Attorney Steve Mellin from the Capital Case Section of the Justice Department’s Criminal Division and Assistant U.S. Attorney Darren Ching.
Florida Man Sentenced on Fraud ChargesRead the Press Release
Boston – A Florida man was sentenced today for his role in perpetrating an investment fraud scheme.
Michael Zanetti, 36, of Pompano Beach, Fla. was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 37 months in prison and three years of supervised release. In March 2014, Zanetti pleaded guilty to conspiracy to commit wire fraud, 14 counts of wire fraud, and conspiracy to commit money laundering.
Between 2007 and 2011, Zanetti 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. Zanetti and his co-conspirators convinced developers to give deposits between $300,000 and $1 million to the fake fund with the promise that the deposit would be fully refundable. Zanetti and his co-conspirators spent the developers' deposit money, and the fake fund never financed any projects. In perpetrating this scheme, Zanetti continually reassured developers about the safety of their deposits even as the deposits were being spent.Zanetti’s co-defendants, John Condo, Evripides Georgiadis, and Frank Barecich have all been convicted 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 was prosecuted by Alex J. Grant and Karen L. Goodwin of Ortiz’s Springfield Branch Unit.
Federal Jury Finds Man Guilty in Cocaine Trafficking and Money Laundering ConspiracyRead the Press Release
PITTSBURGH - After a trial that began on June 9, 2014, a federal jury deliberated for just the afternoon on June 26, 2014, before finding Robert Russell Spence, a former resident of Duquesne, Pa., who is also known as “Slick” or “Little Russ”, guilty of taking part in both a cocaine conspiracy and a conspiracy to launder drug money, United States Attorney David J. Hickton announced today.
Like dozens of his co-conspirators, Spence’s case was held before United States District Judge David Cercone in Pittsburgh, Pa.
According to Assistant United States Attorney Ross Lenhardt, who prosecuted the case on behalf of the United States, the evidence presented at trial established that Spence was the fulcrum of the entire drug trafficking organization due to his role as the main Pittsburgh-area recipient and trafficker of multiple kilograms of cocaine from California. AUSA Lenhardt indicated in court filings that the overall conspiracy involved approximately 2,000 kilograms of cocaine, valued at more than $200 million on the street. This amount of cocaine is enough for every man, woman and child who is currently a resident of Pennsylvania to have their own dose of cocaine. These doses of cocaine are commonly snorted in “lines” when it remains in powder form and “rocks” of crack cocaine are commonly smoked in pipes after being easily converted into that form in a microwave or over an open heat source such as a stovetop.
The testimony revealed that Spence was initially obtaining cocaine from California by use of common couriers such as DHL, Federal Express and the U.S. Mail until law enforcement made seizures of both cocaine packages coming to the Pittsburgh area and drug money headed back to California. The conspiracy thereafter changed the mechanism of transportation multiple times from tractor trailers and other vehicles, to flights from the Oakland, Calif. airport, to flights from the San Francisco airport, and ultimately to one way private jet flights costing approximately $40,000 each- paid for with bags of cash delivered by members of the conspiracy. Spence also conspired to launder his drug money in multiple ways including making purchases of vehicles, prepaid credit cards, hotels, houses, flights, drug processing materials and businesses in the names of other people, as well as depositing cash in amounts less than $10,000 in order to avoid federal laws which require banks and others to report such transactions.
Spence testified that he had paid for and fired numerous prominent local and out-of-state criminal attorneys, then he fired the attorney appointed by the court to represent him free of charge, and ultimately waived his constitutional right to counsel and represented himself throughout the trial with the assistance of Attorney Thomas Brown as his “stand-by” counsel.
The jury was unable to reach a unanimous verdict on the final charge against Spence.
Judge Cercone indicated that sentencing will occur after the preparation of a Presentence Investigation Report by the United States Probation Office detailing Spence’s background including his criminal, familial, employment, educational and other histories. For cases involving these large amounts of cocaine, the law provides for a minimum sentence of 10 years and a maximum sentence of life in prison, in addition to a fine of up to $4.5 million. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of his crimes and the prior criminal history of the defendant.
The defendant has been in jail awaiting trial, in part because these crimes were committed while Spence was on state parole for previous convictions involving his sale of a firearm and “cloned” phones to an undercover state Trooper. Pending sentencing, the court continued Spence’s incarceration.
Drug Enforcement Administration (DEA) and Internal Revenue Service Criminal Investigations (IRS-CI) agents joined forces as the lead investigators in the case that led to the prosecution of Spence. The investigation also involved the valuable assistance of many other federal, state and local agencies including the West Homestead Police Department, the Cleveland Police Department, The Las Vegas Metro Police Department, the United States Postal Inspection Service, the Oakland (California) Police Department and the Frederick (Maryland) Drug Task Force.
Falls Church Grocery Store Owners Convicted of Insurance FraudRead the Press Release
Defendants filed false insurance claims for over $100,000 after 2009 fire destroyed business
ALEXANDRIA, Va. – Suzanne DeLyon, 65, of McLean, Virginia, and Byoung Kyung Kim, 53, of Centreville, Virginia were convicted yesterday by a federal jury on one count of conspiracy to commit wire fraud and six counts of wire fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after the verdict was accepted by U.S. District Judge Claude M. Hilton.
DeLyon and Kimface a maximum penalty of 20 years in prison when they are sentenced on Oct. 3, 2014.
DeLyon and Kim were indicted on Jan. 30, 2014 by a federal grand jury. According to court records and evidence at trial, DeLyon and Kim were partners in an international grocery store in Falls Church, Virginia that was destroyed by a fire on Jan. 19, 2009. In the course of claiming insurance reimbursements from Travelers Insurance, DeLyon and Kim conspired to falsify payroll documents and records, and they made false representations to Travelers to get over $100,000 more than what they were legally owed.
This case was investigated by the FBI’s Washington Field Office and IRS-CI. Assistant U.S. Attorneys Maya D. Song and Gene Rossi and Special Assistant U.S. Attorney Alison L. Anderson are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-32.
Engineer Sentenced for Traveling to Laredo to Engage in Illicit Sexual ConductRead the Press Release
LAREDO, Texas – Douglas Alan Butler, 55, a resident of Battle Creek, Mich., has been sentenced for traveling in interstate commerce for the purpose of engaging in illicit sexual conduct, announced United States Attorney Kenneth Magidson. Butler pleaded guilty Sept. 9, 2013.
Today, Senior U.S. District Judge George P. Kazen handed Butler a sentence of 30 months in federal prison to be immediately followed by five years of supervised release. Butler will also be required to register as a sex offender.
According to the record, Butler started communicating with an undercover officer posing as a 15-year-old female by way of a local chat room. Communication started on March 28, 2013, and lasted for approximately a month until the date of his arrest, April 23, 2013.
During the chats, Butler was informed the girl was 15 years of age, but he still steered the communication to sexually illicit conversation and repeatedly asked the undercover investigator about sex. Butler also engaged in extensive conversations about what kind of sexual activities they would engage in when they finally met. Particularly, Butler indicated that he “could teach her so many things.” Butler advised that he had plans of traveling to Laredo and expressed a desire to meet her.
Butler had made arrangements to meet the deputy whom he believed to be the minor female at a local city park and promised to bring a sex toy during that encounter. He was arrested upon arrival at that park, at which time a pink vibrator was discovered in his car. A subsequent search of his hotel also resulted in the discovery of several condoms, Viagra pills and other paraphernalia of a sexual nature.
Butler admitted he had engaged in online chats of sexual nature with several young girls from Laredo and that he had met and engaged in sex with several women he had met in Laredo.
He 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 Homeland Security Investigations and Webb County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Sonah Lee and Suntrease Williams.
Eads Man Sentenced to 92 MonthsRead the Press Release
Memphis, TN – Larry Caleb Fish, age 21, of Ripley, Tenn., was sentenced to 92 months in federal prison on Thursday following his guilty plea to one count of being a felon in possession of a firearm, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee and 25th District Attorney General Mike Dunavant.
According to the facts alleged in the indictment and revealed during the sentencing hearing, Fish, who was a previously convicted felon, was arrested on January 27, 2013, for possessing a stolen Smith & Wesson 9mm firearm. Fish traded a friend $80 and some Xanax and Marijuana for the stolen firearm. Fish’s criminal history is extensive and he has multiple felony convictions.
In addition to the prison sentence, U.S. District Judge S. Thomas Anderson ordered Fish to serve three years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fayette County Sheriff’s Office and the 25th District Attorney General’s Office. Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.Department of Justice and Office of the Director of National Intelligence Announce Declassification of Renewal of Collection Under Section 501 of the Foreign Intelligence Surveillance ActRead the Press Release
WASHINGTON- The Department of Justice and the Office of the Director of National Intelligence (DNI) released the following statement Friday:
“On March 28, 2014, the Director of National Intelligence declassified and disclosed publically that the U.S. government had filed an application with the Foreign Intelligence Surveillance Court (FISC) seeking renewal of the authority to collect telephony metadata in bulk, and that, on March 28, 2014, the FISC renewed that authority. The DNI also announced that the Administration was undertaking a declassification review of the FISC’s March 28th Primary Order.
“On June 20, 2014, the DNI declassified and publically disclosed that the U.S. government had filed an application with the FISC seeking renewal of the authority granted in March to collect telephony metadata in bulk, and that, on June 19, 2014, the FISC renewed that authority. The DNI also announced that the Administration was undertaking a declassification review of the FISC’s June 19th Primary Order and an accompanying Memorandum Opinion.
“Following a declassification review by the Executive Branch, the DNI has released in redacted form the March 28, 2014 Primary Order, signed by Judge Rosemary M. Collyer. Separately, following a declassification review by the Executive Branch, the FISC published in redacted form the June 19, 2014 Primary Order and an accompanying Memorandum Opinion, signed by Judge James B. Zagel, re-authorizing the collection of bulk telephony metadata under Section 215. The most recent authorization expires on September 12, 2014. These Primary Orders and Memorandum Opinion re-affirm that the bulk telephony metadata collection is lawful.
“The June 19, 2014 Primary Order and Memorandum Opinion are available at the FISC’s website, www.uscourts.gov. The March 28, 2014 Primary Order along with the July 19, 2014 Primary Order and accompanying Memorandum Opinion are available at the website of the Department of Justice, www.justice.gov; the website of the Office of the Director of National Intelligence, www.dni.gov; and ODNI’s public website dedicated to fostering greater public visibility into the intelligence activities of the Government, IContheRecord.tumblr.com.”
Denver Man Found Guilty of Gun and Drug Crimes Following Jury TrialRead the Press Release
Defendant faces a mandatory minimum of 5 years to life consecutive to any other sentence for possessing a firearm during a drug trafficking crime
DENVER – Dontae Daniel Hines, age 30, of Denver, Colorado, was found guilty earlier this week of gun and drug charges following a 3-day jury trial before U.S. District Court Judge William J. Martinez. The jury deliberated for 4 hours before reaching their verdicts. Hines is scheduled to be sentenced by Judge Martinez on October 8, 2014 at 11:00 a.m. Hines was indicted by a federal grand jury on May 8, 2013. The indictment charged Hines with being a felon in possession of a handgun, possession of crack cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. Hines trial began on June 23, 2014.
According to the facts presented at trial, Hines was selling crack cocaine from inside an apartment building in Denver. During an undercover operation, Hines agreed to sell an undercover officer $40 worth of crack. After the transaction was complete, the undercover officers gave a signal to have an arrest team enter the apartment building. Before the arrest team could arrive, Hines told the undercover officer to smoke the crack in front of him so that he can prove he was not a police officer. Hines, seeing the officers enter the property, fled to the second level of the apartment building. Following a 25 second foot chase, Hines gave up and was taken into custody. During that chase he placed a black firearm onto a blue storage container sitting outside of a second level apartment. Officers very soon after the chase recovered the weapon. Hines having previous felony convictions was prohibited from possessing the firearm. Further, he was using the weapon, which had been reported stolen in the weeks leading up to the incident, in furtherance of drug trafficking – namely the sale of crack.
Hines faces not more than 10 years in federal prison, and up to a $250,000 fine for the one count of being a felon in possession of a firearm. He faces not more than 20 years in federal prison, and up to a $1,000,000 fine for one count of possession of cocaine base (crack) with intent to distribute. Finally, Hines faces not less than 5 years, and up to life imprisonment, consecutive to any other sentence imposed, for one count of possession of a firearm in furtherance of a drug trafficking crime.
This case was investigate by the Denver Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Hines is being prosecuted by Assistant U.S. Attorney Jeremy Sibert and Special Assistant U.S. Attorney Geoffrey Rieman.
Defendants Sentenced in the District Court of GuamRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that five defendants who were witnesses in the U.S. v. Mateo B. Sardoma, Jr. aka “Mat”, Rudy P.H. Sablan, Maric C. Edrosa aka “Cristina”, et al. trial were sentenced this week by Chief Judge Frances Tydingco-Gatewood, as follows:
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Defendant JOSEPH MALLO, age 34, was sentenced on June 24, 2014, to 33 months incarceration, followed by three years of supervised release. Defendant MALLO pled guilty to Felon in Possession of Firearms, in violation of 18 U.S.C. § 922(g)(1). MALLO testified he was a user of methamphetamine that he had obtained from Defendant Rudy Sablan.
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Defendant JERRICK UNCHANGCO, age 33, was sentenced on June 24, 1014, to time served of one year, 11 months and 29 days, and to three years supervised release. Defendant UNCHANGCO pled guilty to Felon in Possession of Firearms, in violation of 18 U.S.C. § 922(g)(1). UNCHANGCO testified he was a user of methamphetamine that he had obtained from Defendant Rudy Sablan.
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Defendant ROMMEL WHITING, age 44, was sentenced on June 25, 2014, to time served, followed by three years of supervised release. Defendant WHITING imported methamphetamine in violation of 21 U.S.C. §§ 841 and 846. WHITING testified he was a user of methamphetamine that he had obtained from Defendant Rudy Sablan.
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Defendant ELIZABETH AGUON, age 56, was sentenced on June 25, 2014, to two years imprisonment and five years supervised release. Defendant AGUON pled guilty to conspiracy to distribute methamphetamine, in violation of 21 U.S.C. §§ 841 and 846. AGUON testified she was a user of methamphetamine that she had obtained from Defendant Rudy Sablan.
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Defendant JOSEPH CABALLERO, age 47, was sentenced on June 26, 2014, to two years imprisonment followed by five years of supervised release. Defendant CABELLERO pled guilty to conspiracy to distribute, in violation of 21 U.S.C. §§ 841(a)(1) and 846. CABELLERO testified he performed odd jobs for Defendant Mateo B. Sardoma, Jr., and that he was a user of methamphetamine and distributed less than one gram of methamphetamine.
U.S. Attorney Limtiaco stated, “Our community is not immune from the poison of methamphetamine. These cases illustrate the hard work our partners in law enforcement do every day to stop the distribution of methamphetamine into Guam.” These five defendants were witnesses in the U.S. v. Mateo B. Sardoma, Jr. aka “Mat”, Rudy P.H. Sablan, Maric C. Edrosa aka “Cristina”, et al., which is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, (OCDETF) a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
The investigations were conducted by Special Agents and Task Force Officers at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Department of Homeland Security-Homeland Security Investigations (DHS-HSI) and the Drug Enforcement Administration (DEA). The cases against Defendants UNCHANGCO and WHITING were prosecuted by Assistant U.S. Attorney Rosetta San Nicolas. The cases against Defendants MALLO, AGUON and CABELLERO were prosecuted by Assistant U.S. Attorney Fred Black.
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Defendant Sentenced on Federal Firearm ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Larry Gene Broadnax of Mobile was sentenced following a March 2014 guilty plea to a charge of being a prohibited person in possession of a firearm. Broadnax was previously convicted in Mobile County in 2010, of Unlawful Distribution of a Controlled Substance and Robbery. By virtue of these convictions, Broadnax is prohibited from possessing firearms or ammunition. Broadnax possessed a 20 gauge and a 12 gauge shotgun on April 30, 2013, in connection with a home invasion burglary he participated in with three other individuals. During the home invasion a female occupant of the residence was raped by one of the individuals with Broadax.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1). United States District Court Judge Callie V.S. Granade imposed the statutory maximum sentence of 10 years imprisonment, to be followed by 3 years supervised release.
This case was investigated by Detective Brad Grandquest of the Mobile County Sheriff’s Office and Task Force Officer Lorne Watts of the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Defendant Sentenced for Prohibited Possession of AmmunitionRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today that Alonzo Spencer of Mobile, Alabama, was sentenced following a March 2014 guilty plea to a charge of being a felon in possession of ammunition. Spencer was previously convicted in Mobile County Circuit Court of Assault in 1984 and 1999, and Burglary in 1984. By virtue of these convictions, Spencer is prohibited from possessing firearms or ammunition. Spencer pled guilty to prohibited possession of multiple rounds of various type of ammunition.
Possession of a firearm or ammunition by a convicted felon is a violation of Title 18, United States Code Section 922(g)(1). Chief United States District Court Judge William H. Steele imposed a sentence of 84 months, to be followed by 3 years of supervised release.
This case was investigated by the Mobile Police Department and Special Agent Nicholas P. Murphy of the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Dallas Man Sentenced to 336 Months in Federal Prison on Child Pornography ConvictionsRead the Press Release
Defendant Convicted at Trial on Four Child Pornography Offenses
DALLAS — A Dallas man who was convicted at trial in March 2014 on various child pornography offenses, was sentenced today, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ted Lynn Snider, 44, of Dallas, was sentenced by U.S. District Judge Barbara M. G. Lynn to 336 months (28 years) in federal prison and a 10-year term of supervised release. After a two-day trial followed by less than one hour of deliberation, a federal jury convicted him on two counts of transporting and shipping child pornography, one count of receipt of child pornography and one count of possession of child pornography.
In May 2013, the FBI discovered that a particular individual, later identified as Snider, was online sharing images and videos of young children engaged in vile and graphic sexual acts. On May 29, 2013, the FBI executed a search warrant at Snider’s residence, and while at the residence agents spoke with Snider. He admitted he had been using a file sharing program to trade files depicting child pornography and that he maintained a categorized, child pornography collection on his computer and external hard drives. The FBI seized electronic evidence that contained hundreds of images and videos of child pornography.
During trial, a detective testified he located chat logs between Snider and others with a sexual interest in children who talked about their desire to sexually assault children. They also exchanged child pornography with each other, and in fact, chats between Snider and two individuals were part of the evidence elicited regarding counts two and three. In those chats, Snider and the two other individuals discussed how they wanted to molest the prepubescent children depicted in the photos.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated. Assistant U.S. Attorney Camille Sparks and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay prosecuted.
Correctional Officer Sentenced to over 3 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
Smuggled Drugs into Baltimore Correctional Facility
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Ebonee Braswell, age 27, of Baltimore, today to 37 months in prison followed by three years of supervised release for participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).
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; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
Braswell, a correctional officer at BCDC, admitted that in 2012 and 2013, she helped smuggle contraband, including drugs such as Percocet, into BCDC for further distribution by BGF members. Other correctional officers helped Braswell smuggle the contraband into BCDC.
Twenty-four of the 44 defendants charged in the conspiracy have pleaded guilty, including 14 correctional officers. One defendant has died. Trial is scheduled to begin November 17, 2014 for the remaining defendants.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.