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25 June 2014
Member of Russian Organized Crime Group Sentenced in Manhattan Federal Court to 20 Years in Prison for Ordering Murder of Two IndividualsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BORIS LISYANKSY was sentenced today to 20 years in prison for his role in hiring a hitman to kill two Queens businessmen, which resulted in a non-fatal shooting in May 2010. LISYANKSY was convicted of one count of murder for hire and one count of conspiracy to commit murder for hire on April 29, 2013, after a six-day trial before Judge George B. Daniels in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara stated: “Boris Lisyansky ordered the cold-blooded murder of two innocent men. Thankfully, his intended victims survived the attempt. Today’s sentence makes clear that even when you send others to do your dirty work, you will be found and held accountable for your crimes.”
According to the Indictment filed in Manhattan federal court and the evidence at trial and sentencing:
In May 2010, LISYANKSY hired an associate, Jesus Rosa, to kill the father and son owners of a catering hall (the “Catering Hall”) in Queens. Torrance Crayton, a/k/a “King Blood,” another associate of LISYANKSY’s, provided Rosa with a gun to use in the murders. LISYANKSY arranged a meeting with the intended victims at their Catering Hall under the ruse that LISYANKSY was considering booking the Catering Hall for his wedding. LISYANKSY met with the victims in the Catering Hall on a weekday during normal business hours. Acting at LISYANKSY’s direction, Rosa entered the Catering Hall during that meeting and brandished his firearm. LISYANKSY, pretending to be a victim, covertly signaled to Rosa the two intended victims of the murder. Rosa pointed the gun at the head of one of the two victims, but decided he could not go through with the murder and instead shot the victim in the leg, and fled the Catering Hall. Rosa jumped into a waiting getaway car driven by Jayson Vasquez-Soto. Vasquez-Soto and Rosa drove back to LISYANKSY’s apartment where they proceeded, at the direction of LISYANKSY, to destroy evidence from the murder plot, including wiping the car down to destroy fingerprint evidence. The police arrived at the Catering Hall soon after the shooting and LISYANKSY, still posing as a victim of the hold-up, gave false details about the shooter to the police.
In addition to the prison term, Judge Daniels sentenced LISYANSKY, 39, of Queens, New York, to three years of supervised release and ordered him to pay a special assessment of $200.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation and the New York City Police Department in connection with this investigation.
A number of co-conspirators and accomplices were also prosecuted in connection with this case. Jesus Rosa pleaded guilty to murder for hire, conspiracy to commit murder for hire, and other offenses, and is awaiting sentencing. Torrance Crayton, a/k/a “King Blood,” pleaded guilty to firearms possession and was sentenced by United States District Judge Richard Sullivan to 5 years in prison. Jayson Vazquez-Soto was convicted at trial of obstruction of justice and sentenced by United States District Judge George B. Daniels to 24 months in prison.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Alexander Wilson and Harris Fischman are in charge of the prosecution.
Mattapoisett Woman Sentenced for Embezzling from Middleboro BusinessesRead the Press Release
BOSTON – A Mattapoisett woman was sentenced today to a year in prison for stealing nearly $320,000 from two Middleboro businesses.
Marie Greany, 43, was sentenced by U.S. District Judge Rya W. Zobel to one year and one day in prison, three years of supervised release, and ordered to pay $74,000 in restitution which is the balance of the stolen funds that Greany has yet to repay. In March 2014, Greany pleaded guilty to wire fraud.
Greany worked as a bookkeeper for two computer systems design and consulting businesses in Middleboro. Between 2006 and 2012, she stole nearly $320,000 from the two companies. Among other things, Greany used a company credit card to make unauthorized charges for personal expenses, including travel, tickets to sporting events and theater productions, restaurant meals and tuition, as well as the costs of operating her photography business. She then paid those charges with corporate funds from both companies. Greany also transferred money from the businesses’ bank accounts to pay her personal credit card bills. Additionally, Greany had the payroll processing company for the victim companies issue payments to her as reimbursement for expenses, which had actually been incurred by other employees, as well as increased salary payments for herself. She also wrote two unauthorized checks on a company account which she used for her own purposes.
United States Attorney Carmen M. Ortiz and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Maryland Man Sentenced to Prison on Drug ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Maryland man was sentenced yesterday, in federal court in Scranton, by United States District Judge Malachy Mannion, to serve 160 months in prison on a charge of conspiracy to distribute heroin.
According to United States Attorney Peter Smith, Michael Murray, age 36, a resident of Maryland pleaded guilty to the conspiracy charge in Novemberof 2013.
Murray was charged after an investigation conducted by the United States Drug Enforcement Administration, the Pennsylvania State Police and the Wilkes-Barre Police Department. An Indictment was filed against Murray and nine other persons on May 21, 2013. The charges against Murray arose from his involvement in heroin trafficking. Murray was sentenced as a career offender under the United States Sentencing Commission Sentencing Guidelines.
In addition to the prison term, Judge Mannion ordered that Murray be supervised by a probation officer for 4 years following his release from prison.
The case was prosecuted by Assistant United States Attorney William S. Houser.
Manhattan U.S. Attorney Announces Charges Against Purported Investment AdviserRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that STEVEN WESSEL, a/k/a “Wes Wessels,” was arrested this morning on securities fraud and wire fraud charges. WESSEL is expected to be presented today in Manhattan federal court before United States Magistrate Judge Michael H. Dolinger.
Manhattan U.S. Attorney Preet Bharara said: “As charged, Steven Wessel was much less an investment adviser than a serial liar. He allegedly lied in telling one investor that his funds would be invested in securities, and then lied in soliciting money from a second investor to pay back the first.”
According to the two-count Complaint unsealed in Manhattan federal court:
From at least June 2013 through April 2014, WESSEL ran a fraudulent investment scheme. WESSEL, who claimed to be the Chairman and Executive Managing Member of Steeplechase USA, LLC (“Steeplechase USA”), located in New York, New York, represented to an investor (“Investor A”) that Steeplechase USA was in the business of trading securities. WESSEL personally solicited $200,000 from Investor A on the understanding that the funds would be solely invested in securities.
Contrary to WESSEL’s promise to invest Investor A’s funds in securities, WESSEL used substantially all of Investor A’s money for his own personal benefit, including for cash withdrawals and personal expenses, including making a payment of $25,000 toward a restitution obligation from a prior judgment of conviction. WESSEL did not tell Investor A about this misappropriation. Instead, WESSEL falsely represented to Investor A that his $200,000 investment had gained tens of thousands of dollars and that Steeplechase USA’s portfolio had gained approximately 167% in 2013.
When Investor A requested to withdraw his funds from Steeplechase USA, WESSEL solicited a $550,000 loan from a second investor (“Investor B”). WESSEL falsely represented that he would use Investor B’s money to provide financing for a commercial real estate project. To induce Investor B to lend him money, WESSEL, among other things, created and sent a fabricated email to Investor B. The fabricated email purported to be from a bank and made it appear as if the real estate project was legitimate.
Contrary to WESSEL’s promise to Investor B, WESSEL used substantially all of Investor B’s money for his own benefit, including to pay $251,000 to Investor A – money that, according to WESSEL, represented Investor A’s initial $200,000 investment and $51,000 in trading profits.
WESSEL is charged with one count of securities fraud and one count of wire fraud. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the work of the Criminal Investigators of the United States Attorney’s Office, who investigated this case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Damian Williams is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Steven Wessel Complaint
Man Charged with Robbing Sovereign BankRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today the filing a bank robbery charge against Tashan Lantiqua Layton, age 24, of Harrisburg, Pennsylvania.
According to U.S. Attorney Peter Smith, on March 30, 2013, Layton entered the Sovereign Bank branch located at 519 South 29th Street, Harrisburg, Pennsylvania, and brandishing a gun robbed the bank of approximately $18,682.00.
If convicted, Layton faces a term of imprisonment of up to twenty years and a fine of up to $250,000.
The investigation was conducted by the Harrisburg Police Department and the FBI. It is being prosecuted by Assistant United States Attorney Joseph J. Terz.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Man Admits Defrauding Fema After Massachusetts Tornado in 2011Read the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ROBBIE ROSSI, 42, formerly of Massachusetts, pleaded guilty yesterday before U.S. Magistrate Judge Donna F. Martinez in Hartford to one count of mail fraud arising from a scheme to fraudulently obtain disaster relief funds from the Federal Emergency Management Agency (FEMA).
According to court documents and statements made in court, a severe storm and tornado outbreak struck central Massachusetts on June 1, 2011. After a Presidential Declaration authorized FEMA to provide disaster relief funds to local residents, ROSSI obtained more than $12,000 in disaster relief benefits by falsely representing that he lived at a residence on New Bridge Street in West Springfield, Mass., that had been damaged by the storm. As part of the scheme, ROSSI provided FEMA with false documentation of rent payments he claimed to have paid in the months following the storm. Between August 2011 and April 2013, ROSSI received payments at various addresses that he supplied to FEMA, including a residence in Enfield, Conn.
ROSSI is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on September 18, 2014, at which time he faces a maximum term of imprisonment of 30 years. ROSSI also has agreed to pay restitution in the amount of $12,718.60.
ROSSI has been detained since his arrest in Las Vegas on January 14, 2014.
This case was investigated by the Office of the Inspector General of the U.S. Department of Homeland Security with the assistance of the Las Vegas office of the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
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(203) 821-3722 [email protected]Local Tattoo Artist Convicted of Federal Firearms ChargeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Anthony Lee Erity (33, Kenneth City) guilty of possession of a firearm and ammunition by a convicted felon. Erity faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for September 18, 2014, before U.S. District Judge Virginia M. Hernandez Covington. Erity was indicted on November 21, 2013.
According to testimony and evidence presented at trial, on July 11, 2013, during an undercover operation at a local tattoo shop in Pinellas County, Erity sold a firearm and ammunition out of his car to a confidential informant. Erity had previously been convicted of a felony, and was therefore prohibited from possessing firearms or ammunition under federal law. Both the firearm and ammunition were manufactured outside the State of Florida and therefore affected interstate commerce. As the trial date approached, Erity took steps to flee the country to avoid federal prosecution. Based on that conduct, Erity was ordered detained pending trial.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorneys Adam M. Saltzman and Simon A. Gaugush.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Justice Department Settles with Omnicare, Inc. for $124 Million to Resolve False Claims AllegationsRead the Press Release
Omnicare, Inc., the nation’s largest provider of pharmaceuticals and pharmacy services to nursing homes, has agreed to pay $124.24 million for allegedly offering improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to elderly Medicare and Medicaid beneficiaries, the Justice Department announced today. Omnicare is headquartered in Cincinnati, Ohio.
“We will not tolerate health care providers who use illegal discounts to get business from nursing homes,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Schemes such as this one undermine the health care system and take advantage of elderly nursing home residents.”
“Omnicare provided improper discounts in return for the opportunity to provide medication to Medicare and Medicaid beneficiaries,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “Nursing homes should select their pharmacy provider based on the best quality, service and cost to the residents, not based on improper discounts to the nursing facility.”
The settlement resolves allegations that Omnicare submitted false claims by entering into below-cost contracts to supply prescription medication and other pharmaceutical drugs to skilled nursing facilities and their resident patients to induce the facilities to select Omnicare as their pharmacy provider. The facilities were participating providers under agreements with Medicare and Medicaid. In addition to the facilities’ own claims for reimbursement from Medicare for short-term rehabilitation treatment rendered to patients, Omnicare submitted additional claims for reimbursement to Medicare and Medicaid for drugs Omnicare supplied. Of the $124.24 million to be paid by Omnicare, $8.24 million will go to various states which jointly funded the Medicaid programs impacted by Omnicare’s conduct.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The Anti-Kickback Statute is intended to ensure that the selection of health care providers and suppliers is not compromised by improper financial incentives and is instead based on the best interests of the patient.
The settlement resolves allegations brought in two lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The first whistleblower, Donald Gale, a former Omnicare employee, will receive $17.24 million.
The settlement with Omnicare was the result of a coordinated effort by the U.S. Attorney’s Office for the Northern District of Ohio, the Commercial Litigation Branch of the Justice Department’s Civil Division, the Department of Health and Human Services Office of Inspector General, and the National Association of Medicaid Fraud Control Units.
The government’s settlement of these allegations illustrates its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19.9 billion through False Claims Act cases, with more than $13.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Judge Sends Former Philadelphia Police Officer to Prison for 15 Years for Obstructing A Federal Drug InvestigationRead the Press Release
PHILADELPHIA – Rafael Cordero, 53, of Philadelphia, was sentenced today to 180 months in prison for interfering with the federal drug investigation of the Christian Serrano/Edwin Medina Drug Trafficking Organizations (“DTOs”). Cordero, who at the time was a 23-year veteran of the Philadelphia Police Department, provided sensitive law enforcement information about drug investigations to his half-brother, David Garcia, a member of the Serrano/Medina DTOs. Cordero was convicted on December 3, 2013.
Cordero told his half-brother about a surveillance camera put up by the DEA to monitor activities occurring at a garage, located at 538 East Indiana Street in Philadelphia, used by the Medina DTO. When the FBI and DEA executed search warrants at several locations associated with the Serrano/Medina DTOs, including the garage, Cordero, after being informed about the searches by his half-brother and without having any official reason to do so, went to the search location on East Indiana Street and began looking in the windows of the garage. When confronted by law enforcement and brought inside the location, Cordero misrepresented his reason for being at the location and offered to assist with the search. At no time did Cordero provide his name to law enforcement.
Immediately after leaving the search location, Cordero placed a call to David Garcia and shared with him, among other things, how many law enforcement officers were conducting the search and what areas of the garage they were searching. Garcia removed a DVR tape that law enforcement had inadvertently failed to seize during the search and viewed it to see if Cordero was recorded at the garage at the time of the search, which he was. At no time did Cordero inform law enforcement that David Garcia had possession of the video tape.
When questioned by federal agents, Cordero denied giving information to Garcia regarding the surveillance camera, denied knowing of anyone associated with the Indiana Street garage and denied having spoken to David Garcia about the search at the garage.
In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered a $5,000 fine and three years of supervised release. The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorneys Kevin Brenner and Maureen McCartney.
Indianapolis Man Pleads Guilty to Defrauding Investors in Ponzi Scheme Involving Fictitious Online Credit UnionRead the Press Release
ALEXANDRIA, Va. – Timothy J. Coughlin, 63, of Indianapolis, Indiana, pleaded guilty today to committing wire fraud and impersonating an Internal Revenue Service official while operating the Oxford International Credit Union (OICU), which Coughlin used to solicit online investments.
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; Andrew Ceresney, Director, Division of Enforcement, U.S. Securities and Exchange Commission (SEC); and J. Russell George, Treasury Inspector General for Tax Administration (TIGTA), made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.According to a statement of facts filed with the plea agreement, from around 2006 through March 2014, Coughlin operated OICU and anotheronline investment vehicle known as the Oxford International Cooperative Union. Investors paid annual dues to participate in the Oxford entities and made investments in OICU through online payment processors. As part of the scheme, Coughlin created a website through which he posted false information to investors’ online accounts indicating that their deposits were earning significant daily returns, which averaged 0.471% each trading day from January 2007 through December 2009 (equivalent to a 356% approximate rate of return over that time period). To further the fraud, Coughlin posted a fake certificate stating that OICU was an insured credit union, and he also made audio recordings in which he falsely claimed that members were earning significant returns on their investments.
By the end of 2009, Coughlin had ceased approving requests for account withdrawals from investors, claiming that taxing authorities in the United States and Canada were freezing Oxford’s assets abroad. In January 2012, Coughlin falsely announced to investors that he had reached an agreement to resolve the tax issues, and he created a fictitious agreement on which he forged the signatures of an actual IRS employee in Washington, DC and a lawyer based in New York.
During the course of this fraudulent scheme, Coughlin received nearly $15 million from almost 5,000 people for investments and members’ annual dues. Before December 2009, Coughlin approved about $4.4 million in withdrawal requests by investors.
Coughlin faces a maximum penalty of 23 years in prison when he is sentenced on Sept. 26, 2014.This case was investigated by the FBI’s Washington Field Office, SEC, and TIGTA. Assistant U.S. Attorney Jack Hanly is 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-221.Imperial Valley RV Storage Company Charged with Illegally Disposing over A Million Gallons of Raw SewageRead the Press Release
SAN DIEGO – United States Attorney Laura E. Duffy announced that Glamis Dunes Storage Inc. and its owner, Michael Mamelli, Sr. were arraigned today on charges that they injected and disposed of potentially millions of gallons of sewage underground at the Glamis Dunes Storage site, in violation of the Safe Drinking Water Act.
According to the indictment, in August of 2007, Glamis Dunes Storage obtained a conditional use permit from Imperial County to install and operate a 20,000 gallon holding tank for RV waste (including sewage and grey water) at the facility. At that time, Glamis Dunes Storage represented that the wastewater would be pumped out by a licensed septage hauler and disposed of at the Holtville wastewater treatment plant, and estimated that at full occupancy, they would dispose of approximately 1.25 million gallons of RV sewage and grey water at a wastewater treatment plant per year.
The indictment alleges that on December 16, 2009, a Cease and Desist Order was issued to Michael Mamelli of Glamis Dunes Storage by the Imperial County Department of Environmental Health Services, after it was discovered that Glamis Dunes Storage and Mamelli were illegally disposing of sewage from the RV holding tank by pumping out the sewage and discharging it into an underground septic tank on the site. The Cease and Desist Order required them to immediately cease the discharge of sewage to the underground septic tank, remove the underground septic tank and to retain the services of a registered hauler to pump out the RV holding tank and provide evidence of disposal at a wastewater treatment plant.
The indictment further alleges that between February 16, 2010, and March 12, 2010, the defendants had a contractor build a leach field in the rear of the property, place a pump in the RV holding tank, and connect a pipe directly from the RV holding tank out to the leach field, concealing the power connection for the pump under gravel near the RV holding tank. Thereafter, it is alleged that defendant Mamelli and other employees of Glamis Dunes Storage illegally disposed of the sewage in the RV holding tank by activating the pump and discharging the sewage through the underground leach field.
Between August and October of 2012, the defendants had a contractor add a new pump and two 2,500-gallon septic tanks in series to the pipe connecting the RV holding tank to the leach field, and continued to illegally dispose of the sewage in the RV holding tank by discharging the sewage through the underground septic tanks and leach field without a permit or other authorization from the EPA.
The Safe Drinking Water Act, Section 300h-2(b) of Title 42 of the United States Code, prohibits the willful violation of any requirement of an applicable underground injection program. The underground injection program applicable to Class V injection wells in the State of California is the national underground injection control program, which is administered by the Environmental Protection Agency.
Under the federal regulations, injection wells are regulated according to the classification that the well is given. Class V injection wells include septic system wells used to inject the waste or effluent from a multiple dwelling, business establishment, community or regional business establishment septic tank. The regulations prohibit any underground injection of fluids, except into a well permitted or otherwise authorized under this program. The construction of any well required to have a permit is prohibited until the permit has been issued.
The indictment also seeks criminal forfeiture of the sum of $125,000, alleged to be the proceeds of the offense.
Michael Mamelli and Glamis Durnes Storage, Inc. are scheduled to appear before U.S. District Court Judge William Q. Hayes on August 8, 2014, at 2:00 p.m. for a hearing on all motions.
DEFENDANT Case No.: 14-CR-1766-WQH Glamis Dunes Storgage, Inc. Incorporated: 2006 Glamis, California Michael J. Mamelli, Sr. Age: 63 Newport Beach, California CHARGESUnlawful Injection of Pollutants, a felony, in violation of Title 42, United States Code, Section 300h-2(b)(2); Maximum Penalty: Three years in custody, the greater of a $10,000 fine or twice the illegal gain or loss and a $100 penalty assessment
INVESTIGATING AGENCYEnvironmental Protection Agency, Criminal Investigations Division
Bureau of Land Management*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.
Illegal Alien Convicted of Purchasing False IDRead the Press Release
BOSTON – Former Peabody man found guilty of purchasing false identity documents and receiving unemployment benefits.
Following a three-day trial, Renato de la Cruz, 40, was convicted of theft of public money, use of a falsely obtained Social Security Number, and aggravated identity theft. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Oct. 14, 2014.
De la Cruz, an illegal alien, entered the United States using a false name and purchased identity documents in the name of yet another person. De la Cruz then used the purchased identifying information to obtain a Social Security Number and used the Social Security Number for multiple purposes, including to obtain thousands of dollars of unemployment benefits to which he was not entitled.
De la Cruz faces a maximum sentence of 10 years and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Cheryl Garcia, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, NY Regional Office; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Bruce M. Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Sean Gallagher, Field Office Director of U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, New England Field Office; made the announcement today. The case was investigated by the Homeland Security Investigations Document and Benefit Fraud Task Force. The case is being prosecuted by Robert E. Richardson and Brian A. Pérez-Daple of Ortiz’s Major Crimes Unit.
Huntersville Physician Pleads Guilty to Health Care Fraud and Tax Fraud and Agrees to Pay $6.2 Million to Settle Civil Fraud ClaimsRead the Press Release
Former Owner Of Northcross Medical Center Hid $2.4 Million In Income Used To Build 8,000-Square Foot Home On Lake Norman
CHARLOTTE, N.C. – Mark Tuan Le, an internal medicine physician and former owner of Northcross Medical Center, pleaded guilty today to federal criminal charges in connection with a healthcare fraud scheme that billed health insurers for services that were not performed and for evading over $800,000 in taxes in 2009 and 2010, announced Anne M. Tompkins U.S. Attorney for the Western District of North Carolina.
Earlier this month, Le, 55 of Huntersville, N.C., also agreed to pay $6.2 million to the United States to settle civil fraud allegations that Le and his medical center defrauded Medicare and Medicaid by submitting claims for medically unnecessary diagnostic test and procedures. The $6.2 million settlement is the Western District’s largest ever against a single physician.
U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID); Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region; and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
In making today’s announcement U.S. Attorney Tompkins stated, “Dr. Le exploited his medical license to carry out a criminal scheme involving fraudulent billings for services that were not needed or not given. Then, Dr. Le took his criminal conduct a step further and covered up the additional income to avoid the tax liability. As this case shows, we will use all of the tools and resources in our disposal to prosecute fraud, including pursuing parallel criminal and civil proceedings.” U.S. Attorney Tompkins further urged anyone with information of instances involving fraudulent medical billing or other practices involving health care fraud to report them to law enforcement.
“Illegal schemes like this one waste tax dollars and divert funds that are supposed to go toward needed medical care. Our investigators and attorneys will continue to work closely with federal officials to fight health care fraud and recover the public’s money,” said North Carolina Attorney General Roy Cooper.
“Le cheated Americans twice. First by settling health fraud charges to the tune of $6.2 million, and then through $800,000 in tax evasion, said Derrick L. Jackson, Special Agent in Charge for Office of Inspector General of the U.S. Department of Health and Human Services Atlanta region including North Carolina. “Working shoulder to shoulder with our law enforcement partners, we will pursue and prosecute criminals like Dr. Mark Tuan Le.”
“Dr. Le’s exploitation of Medicare and Medicaid, in concert with his tax evasion, made the burden heavier for every American taxpayer” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “This type of criminal activity carries with it serious consequences. IRS Criminal Investigation and our law enforcement partners are committed to the pursuit of those that would engage in this type of fraud.”
Criminal CaseAccording to filed documents and statements made in court, from at least 2009 to 2013, Le and others defrauded Medicare, Medicaid and private health insurers by submitting false claims for certain procedures – namely hemorrhoidectomies and Enhanced External Counterpulsation (EECP) therapy – when those services were never actually provided. Le owned and operated Northcross Medical Center and employed numerous family members at that practice and related businesses. Le and others conspired to defraud health insurers by billing for EECP treatments that were never performed and, if performed, were not medically necessary. Court documents explain that EECP treatments are recommended for patients with chronic disabling angina and insurance companies typically require that diagnosis as a condition of reimbursing claims for EECP treatments.
Court records indicate that after Le and his practice obtained an EECP machine in or about late 2008, Northcross Medical Center’s claims for EECP treatment skyrocketed. According to court documents, most patients did not qualify for EECP treatment and Le falsified the diagnosis code in order to obtain reimbursement. Information contained in filed court documents indicates that Le most frequently claimed to have performed these treatments upon his or his employees’ relatives when the procedures were not actually performed. Court documents also indicate that Le further defrauded insurance programs, including Medicare and a private insurer, by submitting false and fraudulent claims for hemorrhoidectomies (the removal of hemorrhoids) which did not occur.
According to court documents, in or about 2009 and 2010, Le committed tax evasion by hiding approximately $2.4 million in personal income from the IRS by falsely claiming that certain payments were Northcross Medical Center’s business expenses. In reality, court records indicate, Le used these funds to purchase and construct a $2.4 million, 8000-square foot residence on Lake Norman in Cornelius. Plea documents indicate that Le reported to IRS that his taxable income for 2010 was $40,142, resulting in a tax liability of $832.00. Le significantly underreported his income also in 2009, by fraudulently misclassifying personal income as business expenses. In reality, Le had an additional income of approximately $1.2 million in 2010 and another $1.2 million in 2009 and, as a result of his tax scheme, Le evaded a total of $844,367 of personal income taxes, court records show.
Le pleaded guilty today before U.S. Magistrate Judge David S. Cayer to one count of conspiracy to commit health care fraud, seven counts of health care fraud and one count of tax evasion. At sentencing, Le faces a maximum prison term of 10 years and a $250,000 fine for the health care fraud charges and a maximum prison term of five years and a $250,000 fine for the tax evasion charge. As part of his plea agreement, Le has agreed to pay full restitution to Medicare, Medicaid, private insurers and to IRS for any losses. The final restitution amount will be determined by the court at Le’s sentencing hearing. Le is currently released on bond. A sentencing date has been set yet.
Civil SettlementIn addition to criminal charges to which Le pleaded guilty today, Le and Northcross Medical Center have agreed to a $6.2 million settlement to resolve allegations stemming from a federal civil complaint filed on June 4, 2014 by the United States, pursuant to the False Claims Act. According to the civil complaint, from December 2007 through March 2013, Le and his practice billed Medicare and Medicaid for services that were not medically necessary, not provided, and/or provided to immediate family members, and otherwise failed to comply with Medicare and Medicaid rules and regulations. A final judgment in favor of the United States was entered on June 9, 2014. Le and Northcross Medical Center have paid $2.1 million already to resolve these claims and must pay the remainder within 18 months.
The investigation into Le was handled by HHS-OIG, IRS and MID. The criminal prosecution is handled by Assistant U.S. Attorney Kelli Ferry. Assistant U.S. Attorney Jonathan Ferry handled the civil settlement. U.S. Attorney Tompkins also thanked the North Carolina Medical Board for their assistance in the investigation.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
Huntersville Physician Pleads Guilty to Health Care Fraud and Tax Fraud and Agrees to Pay $6.2 Million to Settle Civil Fraud ClaimsRead the Press Release
Former Owner Of Northcross Medical Center Hid $2.4 Million In Income Used To Build 8,000-Square Foot Home On Lake Norman
CHARLOTTE, N.C. – Mark Tuan Le, an internal medicine physician and former owner of Northcross Medical Center, pleaded guilty today to federal criminal charges in connection with a healthcare fraud scheme that billed health insurers for services that were not performed and for evading over $800,000 in taxes in 2009 and 2010, announced Anne M. Tompkins U.S. Attorney for the Western District of North Carolina.
Earlier this month, Le, 55 of Huntersville, N.C., also agreed to pay $6.2 million to the United States to settle civil fraud allegations that Le and his medical center defrauded Medicare and Medicaid by submitting claims for medically unnecessary diagnostic test and procedures. The $6.2 million settlement is the Western District’s largest ever against a single physician.
U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID); Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region; and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
In making today’s announcement U.S. Attorney Tompkins stated, “Dr. Le exploited his medical license to carry out a criminal scheme involving fraudulent billings for services that were not needed or not given. Then, Dr. Le took his criminal conduct a step further and covered up the additional income to avoid the tax liability. As this case shows, we will use all of the tools and resources in our disposal to prosecute fraud, including pursuing parallel criminal and civil proceedings.” U.S. Attorney Tompkins further urged anyone with information of instances involving fraudulent medical billing or other practices involving health care fraud to report them to law enforcement.
“Illegal schemes like this one waste tax dollars and divert funds that are supposed to go toward needed medical care. Our investigators and attorneys will continue to work closely with federal officials to fight health care fraud and recover the public’s money,” said North Carolina Attorney General Roy Cooper.
“Le cheated Americans twice. First by settling health fraud charges to the tune of $6.2 million, and then through $800,000 in tax evasion, said Derrick L. Jackson, Special Agent in Charge for Office of Inspector General of the U.S. Department of Health and Human Services Atlanta region including North Carolina. “Working shoulder to shoulder with our law enforcement partners, we will pursue and prosecute criminals like Dr. Mark Tuan Le.”
“Dr. Le’s exploitation of Medicare and Medicaid, in concert with his tax evasion, made the burden heavier for every American taxpayer” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “This type of criminal activity carries with it serious consequences. IRS Criminal Investigation and our law enforcement partners are committed to the pursuit of those that would engage in this type of fraud.”
Criminal CaseAccording to filed documents and statements made in court, from at least 2009 to 2013, Le and others defrauded Medicare, Medicaid and private health insurers by submitting false claims for certain procedures – namely hemorrhoidectomies and Enhanced External Counterpulsation (EECP) therapy – when those services were never actually provided. Le owned and operated Northcross Medical Center and employed numerous family members at that practice and related businesses. Le and others conspired to defraud health insurers by billing for EECP treatments that were never performed and, if performed, were not medically necessary. Court documents explain that EECP treatments are recommended for patients with chronic disabling angina and insurance companies typically require that diagnosis as a condition of reimbursing claims for EECP treatments.
Court records indicate that after Le and his practice obtained an EECP machine in or about late 2008, Northcross Medical Center’s claims for EECP treatment skyrocketed. According to court documents, most patients did not qualify for EECP treatment and Le falsified the diagnosis code in order to obtain reimbursement. Information contained in filed court documents indicates that Le most frequently claimed to have performed these treatments upon his or his employees’ relatives when the procedures were not actually performed. Court documents also indicate that Le further defrauded insurance programs, including Medicare and a private insurer, by submitting false and fraudulent claims for hemorrhoidectomies (the removal of hemorrhoids) which did not occur.
According to court documents, in or about 2009 and 2010, Le committed tax evasion by hiding approximately $2.4 million in personal income from the IRS by falsely claiming that certain payments were Northcross Medical Center’s business expenses. In reality, court records indicate, Le used these funds to purchase and construct a $2.4 million, 8000-square foot residence on Lake Norman in Cornelius. Plea documents indicate that Le reported to IRS that his taxable income for 2010 was $40,142, resulting in a tax liability of $832.00. Le significantly underreported his income also in 2009, by fraudulently misclassifying personal income as business expenses. In reality, Le had an additional income of approximately $1.2 million in 2010 and another $1.2 million in 2009 and, as a result of his tax scheme, Le evaded a total of $844,367 of personal income taxes, court records show.
Le pleaded guilty today before U.S. Magistrate Judge David S. Cayer to one count of conspiracy to commit health care fraud, seven counts of health care fraud and one count of tax evasion. At sentencing, Le faces a maximum prison term of 10 years and a $250,000 fine for the health care fraud charges and a maximum prison term of five years and a $250,000 fine for the tax evasion charge. As part of his plea agreement, Le has agreed to pay full restitution to Medicare, Medicaid, private insurers and to IRS for any losses. The final restitution amount will be determined by the court at Le’s sentencing hearing. Le is currently released on bond. A sentencing date has been set yet.
Civil SettlementIn addition to criminal charges to which Le pleaded guilty today, Le and Northcross Medical Center have agreed to a $6.2 million settlement to resolve allegations stemming from a federal civil complaint filed on June 4, 2014 by the United States, pursuant to the False Claims Act. According to the civil complaint, from December 2007 through March 2013, Le and his practice billed Medicare and Medicaid for services that were not medically necessary, not provided, and/or provided to immediate family members, and otherwise failed to comply with Medicare and Medicaid rules and regulations. A final judgment in favor of the United States was entered on June 9, 2014. Le and Northcross Medical Center have paid $2.1 million already to resolve these claims and must pay the remainder within 18 months.
The investigation into Le was handled by HHS-OIG, IRS and MID. The criminal prosecution is handled by Assistant U.S. Attorney Kelli Ferry. Assistant U.S. Attorney Jonathan Ferry handled the civil settlement. U.S. Attorney Tompkins also thanked the North Carolina Medical Board for their assistance in the investigation.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
Hugo Man Sentenced to 180 Months for Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that SAMMY WAYNE DAVIS, age 46, of Hugo, Oklahoma, was sentenced to 180 months imprisonment, followed by 8 years of supervised release for Possession with Intent to Distribute Methamphetamine, in violation of Title 18, United States Code, Sections 922(g)(I) and 924(e).
The charge arose from an investigation by the Hugo Police Department, the Choctaw County Sheriff’s Office and District 17 District Attorney’s Drug Task Force. The defendant was indicted in February, 2013 and pled guilty in March, 2014.
The Indictment alleged that on or about June 5, 2011, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant remains in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Dean Burris represented the United States.
Hogsett Announces Sentencing of Bloomington-area Resident as Part of Gun, Drug ProsecutionRead the Press Release
U.S. Attorney continues seeing results from Violent Crime Initiative
Bloomington – Joseph H. Hogsett, United States Attorney, announced the sentencing of Courtney Pickett, 29, Bloomington for one count of conspiracy to distribute with intent to possess five kilograms of cocaine and one count of carrying a firearm in furtherance of a drug trafficking crime. Pickett was sentenced to 15 years by U.S. District Judge Sarah Evans Barker.
“When criminals band together, the damage they can inflict is much greater,” said Hogsett. “It is important to prosecute every player in the game so that career criminals don’t have a chance to repeat their attempts.”
Between November and mid-December 2011, Pickett and four other defendants conspired to break into a property they believed contained a large quantity of narcotics. Pickett illegally possessed a firearm in order to further the plan to rob the property. Local and federal law enforcement monitored the defendants’ activities and interrupted the attempted robbery on December 15, 2011.
“This office is dedicated to taking violent criminals off the streets of our Hoosier communities,” said Hogsett.
Thomas Owings, a codefendant is serving a 20 year sentence for his part in the crime at Terre Haute Federal Prison.
This prosecution was part of the United States Attorney’s Violent Crime Initiative. The United States Attorney’s Violent Crime Initiative began in 2011, and is intended to focus on the “worst of the worst” violent offenders by marshaling federal resources to provide local partners the additional tools they may need to succeed in their effort to promote peace. In 2011, only 14 firearms charges were filed. Since then, over 330 firearms cases have been prosecuted. By charging these cases federally, violent felons serve at least 85 % of their sentence.
According to Assistant United States Attorney Barry Glickman, who prosecuted this case for the government, Pickett will also serve three years of supervised release after his sentence.
Hogsett Announces Indictment of Suspected Warrick County Methamphetamine DealerRead the Press Release
Hogsett continues crackdown on methamphetamine trafficking
BOONVILLE – Joseph H. Hogsett, United States Attorney, announced the indictment of a Warrick County man for possession with intent to distribute 50 grams or more of methamphetamine. Matthew Collins, 51, was indicted by a grand jury yesterday.
“Methamphetamine is a harmful drug,” said Hogsett. “Getting it off the streets and putting dealers behind bars is the best way to prevent drug-related violence in our Hoosier communities.”
Since March of this year, DEA officials have been assisting the Warrick Country Sheriff’s Office (WCSO) criminal investigations narcotic division in an investigation involving Collins. Collins is suspected of distributing pound quantities of methamphetamine in the Warrick County area.
Law enforcement began tracking Collins for his alleged drug distribution and on June 8, 2014, stopped Collins for speeding on SR 161 just inside in Indiana border in Spencer County. Deputies from the Warrick County Sheriff’s Department used their K-9 partner to determine the presence of methamphetamine in Collins’ vehicle. Field tests allegedly revealed nearly 15 ounces of crystal methamphetamine.
“Credit should go where it is due. Collaboration between federal and local levels of law enforcement helps our office do our job and take those harming Hoosiers off the streets,” said Hogsett.
Collins remains in custody at the Spencer County Jail.
According to Assistant United States Attorney Lauren Wheatley who is prosecuting this case for the government, Collins could face 10 years to life and a $5 million fine if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Hogsett Announces Indictment of New Albany Area Violent FelonRead the Press Release
Over 30 weapons confiscated as U.S. Attorney continues efforts to keep career criminals unarmed and off Hoosier streets
NEW ALBANY, IN – Joseph H. Hogsett, United States Attorney, today announced the indictment of Paul James Hoskins, 45, Charlestown Indiana. A grand jury indicted Hoskins on one count of felony possession of a firearm.
“This office has been vigorous in our prosecution of felons in possession of firearms,” said Hogsett. “This defendant represents the worst of the worst as far as career criminals go and it is our job to make sure these people are off the streets and not endangering the stability and peace of Hoosier communities.”
On June 16, 2014, law enforcement officials, upon suspecting Hoskins of engaging in the distribution of methamphetamine and protecting the narcotics with firearms, executed a search warrant on his residence in Charlestown. There, officers allegedly found a 9 mm handgun and multiple rounds of ammunition.
Upon further investigation, and the cooperation of an informant, it was determined that Hoskins also allegedly stored firearms at his parent’s residence, next door. Law enforcement obtained consent to search from Hoskins’ parents. During this consent search, two firearms were found in a rear bedroom. Also in this bedroom was a padlocked closet allegedly storing over 30 firearms, including a sawed-off short-barreled 12 gauge shotgun. A key for the padlocked door was found on the dresser of Hoskins’ bedroom in his own residence.
This prosecution is a result of a joint effort between the ATF (Alcohol, Tobacco, Firearms) office in Louisville, Indiana State Police, Clark County Sheriff’s Department and the Charlestown Police Department.
By federal law, it is illegal for a prior felon to own or possess a firearm. The Federal Armed Career Criminal Act further punishes an individual who possesses a firearm and has at least three prior violent felony convictions with a fifteen year mandatory minimum sentence of imprisonment.
Hoskins felony record spans both Indiana and Kentucky and includes, among others:
Resisting Law Enforcement Causing Bodily Harm, 1993
Fleeing & Eluding Law Enforcement, 1994
Wanton Endangerment, 1st Degree, 1994
Possession of Marijuana with Prior Conviction, Possession of a Concealed Handgun with Prior Conviction, 1994
Resisting Law Enforcement, 2000
Wanton Endangerment, 1st Degree, 2001
Theft, 2007“This office is dedicated to taking violent criminals off the streets and has seen great success in this goal,” said Hogsett. “I am proud of the partnerships we have forged with state and local partners combating crime in our Hoosier communities.”
This prosecution was part of the United States Attorney’s Violent Crime Initiative. The United States Attorney’s Violent Crime Initiative began in 2011, and is intended to focus on the “worst of the worst” violent offenders by marshaling federal resources to provide local partners the additional tools they may need to succeed in their effort to promote peace. Additionally, federal defendants serve 85 % of their sentence.
According to Assistant United States Attorney Lauren Wheatley, who is prosecuting the case on behalf of the government, if convicted, Hoskins can serve a mandatory minimum sentence of 15 years.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Hogsett Announces Indictment of Felon for Illegal Firearm PossessionRead the Press Release
U. S. Attorney’s Office continues to help reduce violence in
Vanderburgh CountyEvansville – Joseph H. Hogsett, United States Attorney, announced the indictment of Larry Tomlinson, 37, Evansville, today. A grand jury indicted Tomlinson on one count of possession of a firearm by a convicted felon and one count of possession of a sawed off shotgun.
“This office has seen that prior felons with firearms are bad news for the safety of Indiana,” said Hogsett. “My office will continue to do all we can to help make our Southwestern Indiana communities safe.”
On May 29, 2014, law enforcement received a tip that a customer at a local hotel had been allegedly dealing narcotics and may be in possession of a firearm. Officers observed Tomlinson leave the hotel in a car with another person driving. The two were pulled over while driving and Tomlinson allegedly contemplated fleeing before complying with the officers orders. Officers searched the driver and Tomlinson and both consented to a search of the vehicle. When officers were able to handcuff Tomlinson, they found a sawed off shotgun in the bag he was carrying, next to the vehicle.
Under federal law, it is illegal for one with a prior felony conviction to possess a firearm. Tomlinson’s felony record is as follows:
• Burglary, Vanderburgh County, March 1994
• Auto Theft and Resisting Law Enforcement, Vanderburgh County, August 1996
• Possession of Cocaine and Carrying a Handgun without a Permit, Vanderburgh County, August 1996
• Robbery and Carrying a Handgun without a Permit, Vanderburgh County, May 2001
• Possession of a Firearm by a Felon, Vanderburgh County, April 2007Due to Tomlinson’s extensive criminal history, he is subject to the enhanced penalty as an armed career criminal which imposes a mandatory minimum sentence of 15 years.
This investigation is part of the U. S. Attorney’s Violent Crime Initiative, (VCI). Launched in 2011, the VCI produced dramatic increases in the number of gun-related charges brought federally. Since then, nearly 235 defendants have been charged.
According to Assistant United States Attorney Lauren Wheatley who is prosecuting this case for the government, Tomlinson could face 25 years and three years of supervised release, if convicted of both charges.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Haines City Man Pleads Guilty to Smuggling Firearms and Ammunition from the United States to ColombiaRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Mauricio Arbelaez (42, Haines City) pleaded guilty today to smuggling goods from the United States, possession of an unregistered silencer, and possession of a firearm with an obliterated serial number. Arbelaez faces a maximum penalty of 25 years in federal prison. Arbelaez was indicted on March 7, 2014.
According to the plea agreement, between November 19, 2012 and November 26, 2012, Arbelaez shipped three packages to Colombia, using a shipping company in Kissimmee, Florida and a third-party shipping company located in Miami, Florida. The packages contained rounds of ammunition and firearms that were concealed in electronic gaming systems. Arbelaez did not declare these firearms and ammunition to the shipping company when he shipped the packages, or at any time thereafter. On November 28, 2012, one of the packages was intercepted by Colombian customs officials at the El Dorado International Airport in Bogota, Colombia. Once Colombian officials discovered that the package contained a starter revolver and rounds of ammunition, they notified the third-party shipper, in Miami, Florida. After speaking to the Colombian officials, the owner of the Miami shipping company inspected the remaining two packages, which were still awaiting final shipment to Colombia, and discovered ammunition and a firearm with an obliterated serial number inside. The two packages, the firearm, and ammunition were eventually turned over to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), which conducted an investigation into Arbelaez. The owner of the Kissimmee shipping company identified Arbelaez as the person who shipped all three packages.
On July 26, 2013, ATF located a safe inside a residence in Orlando, Florida, where Arbelaez stored ammunition, firearms, including a stolen firearm, and a silencer which was not registered to Arbelaez in the National Firearms Registration and Transfer Record.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. This is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Grant County Man Sentenced to Prison for Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Javier J. Reyes, 20, of the Village of Santa Clara in Grant County, N.M., was sentenced today in federal court in Las Cruces, N.M., to 48 months in federal prison followed by three years of supervised release for the unlawful possession of an unregistered short-barreled rifle with an obliterated serial number and for receiving a firearm while under indictment.
Reyes and his co-defendant Gabriel Saiz, 21, of Silver City, N.M., were charged with possession of an unregistered firearm in a criminal complaint filed on March 1, 2013. The two subsequently were indicted and charged with possession of an unregistered short-barreled rifle, and possession of a firearm with an obliterated serial number. According to the indictment, Saiz and Reyes possessed a firearm made from a Mossberg .22 caliber rifle with a barrel length of less than 16 inches and an obliterated serial number on Nov. 27, 2012, in Grant County, N.M.
Court filings reflect that Reyes and Saiz were arrested on local charges by the Silver City Police Department on Nov. 27, 2012, in Silver City after they robbed a woman at gunpoint at approximately 7:30 p.m. that day and allegedly assaulted four individuals by brandishing a firearm at them approximately an hour later. The officers were able to apprehend Reyes and Saiz at approximately 9:00 p.m. that night because the victim of the armed robbery provided the license plate number for the vehicle in which Reyes and Saiz were driving. When the officers arrested the men, they observed a firearm on the floor board under the front passenger seat.
Reyes was released pending trial following his arrest. While on release, Reyes was arrested again on Oct. 25, 2013, on a criminal complaint charging him with receiving a firearm while under indictment. According to the complaint, Reyes was arrested on Oct. 4, 2013, on state charges at a dormitory of the Western New Mexico University campus by officers who responded to reports of a man with a gun. At the time of his arrest, Reyes had a firearm in the front waistband of his pants. Reyes has been in custody since this second arrest.
On Dec. 6, 2013, Reyes pled guilty to the indictment charging him with possession of the unregistered short-barreled rifle with the obliterated serial number. He also pled guilty to a felony information charging him with receiving a firearm while under indictment. The pleas were entered without the benefit of any plea agreement.
Saiz, Reyes’ co-defendant, pleaded guilty in Sept. 2013 to both counts of the indictment. He faces a maximum penalty of ten years in prison for possession of an unregistered firearms and a maximum penalty of five years in prison for possession of a firearm with an obliterated serial number. He remains detained pending his sentencing hearing, which has not been scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Silver City Police Department and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Georgia Man Sentenced to More Than 22 Years in Prison for Fraud SchemeRead the Press Release
Peoria, Ill. –Kenneth W. Lewis, 57, of Augusta, Georgia, and Cranford, New Jersey, was sentenced today for wire fraud and money laundering charges, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge James E. Shadid ordered Lewis to serve a total of 271 months (22 years, 7 months) in federal prison. In addition, Lewis was ordered to pay restitution in the amount of $5,565,406 to victims of the offenses and ordered to forfeit that same amount. Approximately $8,000 in assets seized at the time of his arrest will be applied to that amount.
On February 24, 2014, Lewis was convicted by a jury of four counts of wire fraud and 11 counts of money laundering. During five days of trial in February, the government presented evidence that established that beginning in the late 1990s, Lewis offered investors the ability to generate income through highly secretive overseas financial transactions. Evidence further established that Lewis obtained more than $5.5 million from others to cover his living expenses while he was purportedly working on completing the details of non-existent transactions. Further, Lewis told investors that he had been living in Zurich, Switzerland for seven years working on the transaction, when, in fact, he was living in a hotel in New Jersey, where he was arrested in July 2012.
Lewis has remained in federal custody since his arrest.
The case was prosecuted by Assistant U.S. Attorneys Darilynn J. Knauss and Bradley W. Murphy. The charges were investigated by IRS, Criminal Division and the U.S. Postal Inspection Service.
Georgia Man Sentenced on Gun Trafficking ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Liddon Young, 32, of Stone Mountain, Georgia, who was convicted of conspiracy to unlawfully deal firearms without a federal firearms license and unlawfully dealing in firearms without a license, as well as selling firearms to a convicted felon, was sentenced to 180 months in prison by U.S. District Judge Frank P. Geraci, Jr. The defendant was also ordered to forfeit 12 firearms and over 500 rounds of ammunition.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that between August 2012 and February 6, 2013, Young conspired with Paul Davis to unlawfully traffic firearms from the Atlanta, Georgia area to Rochester. Young sold multiple firearms and rounds of ammunition to Davis in the Atlanta area which were then transported by Davis and others for illegal resale on the black market in Rochester. Young delivered 11 firearms to Davis on February 6, 2013 in Rochester as part of the conspiracy. Davis and others deposited money into a bank account in Young’s name as payment for the illegal firearms business.
The sentencing is the culmination of an investigation on the part of on the part of Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Paul Davis was arrested February 6, 2013 after selling a Georgia pistol to a confidential informant. Multiple federal search warrants executed at Young’s residences in Georgia resulted in the seizure of 10 additional firearms and hundreds of rounds of ammunition. Liddon Young was arrested in Rochester on February 8, 2013 in possession of a loaded .380 caliber pistol. Davis was convicted on gun charges in April 2012 and is awaiting sentencing.Four York Men Indicted for Distributing Crack Cocaine, Cociane and HeroinRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the indictment by a federal grand jury in Harrisburg of four men for distribution of crack and powder cocaine and heroin in York, Pennsylvania.
According to United States Attorney Peter Smith, the indictment charges a drug trafficking scheme centered in York County between August 2013 and March 2014. Those indicted Rolando Cruz, Jr., age 29, Marc Hernandez, age 28, Douglas Kelly, age 35, and Roscoe Villega, age 39, all from York.
Hernandez, Kelly and Villega were previously charged in a indictment in March 2014. Today’s indictment adds Cruz as a defendant.
The continuing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is assigned to Assistant United States Attorney Michael A. Consiglio.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is life imprisonment for the defendants and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * * *Four Arrested for Defrauding Mortgage Lending InstitutionsRead the Press Release
BROOKLYN, NY – A six-count indictment was unsealed this morning in federal court in Brooklyn charging mortgage broker Alex Barrett, property manager Barthelemy Adjavehoude, title agent Michelle Baker, property manager and self-described foreclosure specialist James Bayfield, and property managers Samuel Terrell Bell and Dirk Hall with engaging in a bank and wire fraud conspiracy to steal millions of dollars from financial lending institutions.1 Defendants Adjavehoude, Baker, Bayfield, and Bell were arrested and will be arraigned this afternoon before United States Magistrate Judge Lois Bloom at the United States Courthouse in Brooklyn, New York. The defendants face penalties of up to 30 years’ imprisonment if convicted.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Michael Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG); Christina Scaringi, Special Agent-in-Charge, Northeast Region, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG); and Derek Evans, Special Agent-in- Charge, Federal Deposit Insurance Corporation-Office of Inspector General, New York Region.
According to the indictments unsealed this morning, the defendants and other participants in the scheme (“the conspirators”) caused mortgage loan applications with false information to be submitted to lending institutions in connection with the purchase of residential properties located within the Eastern District of New York. These applications contained fraudulently inflated purchase prices and appraisals for the properties, as well as false information about the assets and income of the purchasers of the properties, many of whom were being compensated as part of the scheme to act as straw purchasers. The conspirators also falsified HUD forms and provided false down payment checks to make it appear as if the straw purchasers and the other borrowers had made down payments in connection with the purchase of the properties, which was a condition of the lending institutions for issuing the mortgage loans.
To carry out their scheme, the conspirators allegedly often conducted simultaneous purchases and sales of the properties, sometimes called “flips,” in an effort to conceal their criminal involvement and to inflate the value of the properties. For example, a conspirator would purchase a property from a homeowner. That same day, the conspirator would sell the property to a straw purchaser at an inflated value. The conspirators, through the use of backdated and falsified documents, concealed from the lending institutions the fact that the purchase and sale had occurred on the same day and made it appear as if the transaction between the homeowner and the conspirator had occurred over 60 days prior to the sale from the conspirator to the straw purchaser.
As a result of the false applications and appraisals, the lending institutions were fraudulently induced to issue millions of dollars of mortgage loans secured by properties that had inflated appraisal values to individuals who had insufficient income and assets to qualify for the mortgage loan. In many instances, the straw purchasers and the other borrowers failed to make required mortgage payments to the lending institutions, which caused the mortgage loans to be placed into default status.
At approximately the time of the closings of the properties, the conspirators diverted for their own use the portion of the loan proceeds that exceeded the actual value of the properties. The conspirators collectively caused the financial lending institutions to loan out over $5.5 million, of which over $2.7 million was the conspirators’ profit from the scheme. The investigation identified at least 17 properties in the scheme, including locations in Cambria Heights, Far Rockaway, Brooklyn, Laurelton, Jackson Heights, Jamaica, Hempstead, Rosedale, and Hollis, New York.
“Through a web of lies and false documentation, these real estate professionals allegedly stole millions from banks, which they used to line their own pockets,” stated United States Attorney Lynch. “The size and scope of the conspiracy were noteworthy, but the charges announced today are the result of an even more impressive collaboration between all the agencies that worked tirelessly to bring the defendants to account for these crimes. This is a clear message to anyone who contemplates engaging in mortgage fraud: do not even attempt it because you will be caught.”
FBI Assistant Director-in-Charge Venizelos stated, “In an elaborate scheme between brokers, appraisers, straw buyers, and others, it is alleged that these defendants conspired to shake down and defraud banks. The scheme not only victimized those institutions, but millions of consumers who either paid higher rates or could not get a loan.”
HUD-OIG Special Agent-in-Charge Christina Scaringi stated, “The arrests and charges announced today serve to remind the public that we will continue the important work of investigating mortgage industry professionals who deceive and defraud homeowners, the Federal Housing Administration, and mortgage lending institutions to satisfy their own personal enrichment. As alleged, the conduct of these defendants is particularly troubling as it is yet another reminder of the fraud and difficulties many endured in the aftermath of the recent housing crisis. We wish to thank our law enforcement partners at the FBI, FHFA-OIG, FDIC-OIG, and the U.S. Attorney's Office for their perseverance and steadfast efforts in ensuring these defendants are brought to justice.”
FDIC-OIG Special Agent-in-Charge Derek Evans stated, “The Federal Deposit Insurance Corporation Office of Inspector General is committed to its partnerships with others in the law enforcement community as we address mortgage fraud cases throughout the country. Today’s arrests illustrate that the government is working to ensure integrity in the financial services and housing industries and that those involved in criminal activities that undermine that integrity will be held accountable if ultimately found guilty.”
FHFA Acting Inspector General Michael Stephens stated, “As alleged, the individuals charged in this scheme operated with impunity under the flawed belief that as industry insiders they could better cover their tracks to avoid detection. However, as evidenced by today’s charges, no fraudulent plan is foolproof. We are proud to have worked with our law enforcement partners and will continue our collaborative efforts to bring those who cheat our financial institutions, and ultimately American taxpayers, to justice.”
The government’s case is being prosecuted by Assistant United States Attorney Walter M. Norkin.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The Defendants:
ALEX BARRETT
Age: 47
Residence: Farmingville, New York
BARTHELEMY ADJAVEHOUDE
Age: 54
Residence: Baldwin, New York
GEORGE ALDERDICE
Age: 42
Residence: Manhasset, New York
MICHELLE BAKER
Age: 47
Residence: Jamaica, New York
JAMES BAYFIELD
Age: 42
Residence: Jamaica, New York
SAMUEL TERRELL BELL
Age: 33
Residence: North Babylon, New York
DIRK HALL
Age: 39
Residence: Jamaica, New York
SHARIF RASHED
Age: 32
Residence: Jamaica, New York
__________________________________________________________________________
1 The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty. Previously, co-conspirators George Alderdice, an attorney, and Sharif Rashed, an appraiser, pled guilty to conspiring to commit bank and wire fraud for their respective participation in the scheme.
Barrett.Alderdice.InformationSIGNED
Barrett Indictment
Barrett.Rashed.InformationSIGNEDFormer Saratoga County Deputy Sheriff Sentenced to Five Years on Drug ChargeRead the Press Release
Transported a Confidential Source Who Claimed to Possess Cocaine in an FBI Sting
ALBANY, NEW YORK —CHARLES E. FULLER, age 46, of Corinth, New York, was sentenced today by Chief United States District Court Judge Gary L. Sharpe to five years in prison for attempting to aid and abet the possession with intent to distribute a controlled substance, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division.
As Fuller admitted during his August 20, 2014 guilty plea, in February of 2014, while he was employed as a Saratoga County Deputy Sheriff, he accepted a total of $5,000 from a confidential source supervised by the Federal Bureau of Investigation (“FBI”) as payment for transporting the confidential source while the source was carrying what Fuller believed to be cocaine. The source actually had imitation cocaine. The defendant made two trips from Albany to Warren County: one on February 19, 2014 and one on February 27, 2014. During the first trip, the defendant drove the source with what he believed to be 250 grams of cocaine in return for $1,000, and during the second trip, the defendant transported the source with what he believed to be one kilogram of cocaine in return for $4,000.
This prosecution resulted from an investigation conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Daniel Hanlon.
Former Postmaster Charged with EmbezzlementRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has filed a criminal charge of misappropriation of postal funds against a Clinton County woman in federal court in Williamsport.
According to United States Attorney Peter Smith, a criminal Information was filed charging Macey Geyer, age 41, of Castanea, with allegedly taking over $9,000 in postal funds from the Castanea Post Office. Geyer, who began her employment with the United States Post Service on June 23, 2007, served as Officer-in-Charge at the Castanea Post Office.
At the same time the criminal Information was filed, the U.S. Attorney’s Office filed a plea agreement which is subject to the approval of the court.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Eric Pfisterer.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former National Fast Food Restaurant Chain Employee and Co-Defendant Sentenced for Identity Theft Tax 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 Steve Steinberg, Chief, Aventura Police Department, announce that Tekia Jones, 37, of Hallandale, and Ivory Covington, 29, of Miami, were sentenced before U.S. District Court Judge William P. Dimitrouleas for their roles in an identity theft tax fraud scheme. Jones was sentenced to 42 months in prison, to be followed by three years of supervised release. Covington was sentenced to 36 months in prison, to be followed by three years of supervised release.
Each defendant previously pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Jones was an employee of a national fast food restaurant chain and had access to employees’ names, social security numbers and dates of birth, but did not have permission to possess the employees’ information outside of her employment. On March 10, 2013, during an inventory search of a car driven by Covington, but shared and controlled by Covington and Jones, 118 names, social security numbers and dates of birth were found that belonged to former and current employees of this national fast food restaurant chain, along with two GreenDot Visa prepaid debit cards with the names of two former national fast food restaurant employees whose PII were found in the car.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
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 Marine Pleads Guilty to Theft of $880,000 in Military Equipment from Department of DefenseRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Vincent P. Vulaj, a resident of Bronx, New York, pleaded guilty to Theft of Government Property. When sentenced on December 16, 2014, Vulaj faces up to 10 years in prison. The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and Jeremy Gauthier, Acting Special Agent in Charge of the Northeast Field Office, Naval Criminal Investigative Service (“NCIS”).
According to court filings and facts presented during the plea proceeding, between 2009 and 2013, while working as a Staff Sergeant at the 2nd Battalion, 25th Marine Regiment, Marine Corps Reserves Base in Garden City, New York, Vulaj stole property belonging to the Department of Defense worth more than $880,000, and sold it on eBay.com. The stolen items included tactical helmets, goggles, jackets, vests, sleep systems and backpacks. The Marine Corps Reserves discovered the thefts and reported it to NCIS for investigation. NCIS investigators then purchased some of the stolen equipment online and traced the transactions back to Vulaj. In September 2013, Vulaj was discharged to Individual Ready Reserve (“IRR”) status with the Marine Corps Reserve. Individuals placed on IRR status are subject to recall to active military service.
“As a non-commissioned officer with the Marine Corps Reserves, the defendant was charged with safeguarding the welfare of his fellow soldiers and the American public. Instead, he cast aside his duty and shamelessly stole equipment that was meant to provide safety and comfort to our troops in the field in order to line his own pockets,” stated United States Attorney Lynch. Ms. Lynch thanked the Marine Corps Reserves for their assistance in this investigation.
“Vulaj abused his access and violated the trust placed in him to embezzle from the American people. Not only is there the matter of $800,000 of property he stole and sold, his actions also resulted in the expenditure of a considerable amount of time and effort on his case; resources which should have been put to better use elsewhere, keeping our communities and warfighters safe,” stated Acting Special Agent in Charge Gauthier.
The guilty plea proceeding was held before United States District Judge Sandra J. Feuerstein.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
Name: VINCENT P. VULAJ
Age: 32
Residence: Bronx, NY
Former Jenkens & Gilchrist Attorney Sentenced to 15 Years in Prison for Orchestrating Multibillion Dollar Criminal Tax Fraud SchemeRead the Press Release
Deputy Assistant Attorney General Ronald A. Cimino for the Tax Division of the Department of Justice and U.S. Attorney Preet Bharara for the Southern District of New York announced that Paul M. Daugerdas, 63, a tax attorney and certified public accountant, was sentenced today in Manhattan federal court to serve 15 years in prison for orchestrating a massive fraudulent tax shelter scheme in which he and his co-conspirators designed, marketed and implemented fraudulent tax shelters used by wealthy individuals to evade over $1.6 billion in taxes owed to the Internal Revenue Service (IRS). The 20-year scheme, which Daugerdas hatched while working at the Arthur Andersen accounting firm and then continued while a partner at two law firms – Altheimer & Gray and then Jenkens & Gilchrist (J&G) – generated over $7 billion in fraudulent tax losses and yielded approximately $95 million in fees to Daugerdas personally. In October 2013, Daugerdas was convicted following a seven-week jury trial, presided over by U.S. District Judge William H. Pauley III, who also imposed today’s sentence.
“Paul Daugerdas used his legal and accounting expertise to cheat the system and unlawfully deprive the government of over $1.6 billion of tax revenue,” said U.S. Attorney Bharara. “With today’s sentence, Daugerdas’s giant tax fraud scheme has reached its just conclusion under the law, with a sentence of 15 years in prison.”
“Dishonest professionals who market tax fraud schemes to their clients need to sit up and take note of today’s sentence,” said Deputy Assistant Attorney General Cimino. “The Justice Department and IRS are committed to holding responsible those who would misuse their skills and expertise to help others to evade their lawful tax obligations.”
According to the evidence at trial and other documents filed in the case:
From 1994 through 2004, Daugerdas, who is a lawyer, a certified public accountant, and the former head of the Chicago office of J&G and its tax practice, participated in a scheme to defraud the IRS by designing, marketing, implementing and defending fraudulent tax shelters.
As part of the scheme, Daugerdas and others plotted to defraud the IRS by, among other things, corruptly endeavoring to prevent the IRS from: detecting their clients’ use of these shelters; understanding how the transactions operated to produce the tax results reported by the clients; learning that, rather than serving as legitimate investment transactions, the tax shelters lacked economic substance in that they were designed and marketed as cookie-cutter products intended exclusively to eliminate or reduce large tax liabilities; learning that the clients were not seeking profit-making investment opportunities, but were instead seeking huge tax benefits; and learning that, from the outset, all of the clients intended to complete a pre-planned series of steps that had been designed to lead to the specific tax benefits they sought. Daugerdas and others created and assisted in creating transactional documents and other materials that falsely and fraudulently described their clients’ motivations for entering into the tax shelters and for taking various steps in order to yield the tax benefits.
As part of the scheme, Daugerdas and his co-conspirators also fraudulently backdated some of the tax shelter transactions. In particular, Daugerdas and his co-defendants learned that certain tax shelter transactions had been implemented incorrectly during the year of the transactions in that they failed to produce the amount or type of tax losses requested by the clients. Rather than reporting those tax shelter results as they occurred – as required by the Internal Revenue Code – Daugerdas and others engaged in corrupt “correcting” transactions after the close of the pertinent tax years, and then backdated the tax shelter documents to make it appear that the amount and type of tax losses sought by the clients had in fact been generated during the pertinent tax years. Daugerdas also authored fraudulent tax opinion letters that falsely described when certain aspects of the transactions had actually occurred. As a result of the fraudulent backdating, Daugerdas and others caused tax shelter clients to file tax returns that falsely and fraudulently claimed tens of millions of dollars of tax losses to which the clients were not entitled.
As a result of the scheme, Daugerdas and his co-conspirators made millions of dollars in fees and bonuses. Daugerdas himself made $95 million in profits but used tax shelters to reduce the taxes he paid to less than $8,000; without the shelters, he would have owed over $32 million in taxes.
Daugerdas, of Wilmette, Illinois, was convicted of conspiring to defraud the IRS, to evade taxes, and to commit mail and wire fraud, and of corruptly endeavoring to obstruct and impede the internal revenue laws. He was also convicted of four counts of tax evasion relating to the use of various tax shelters for specified clients, and of mail fraud.
In addition to the prison term, Judge Pauley ordered Daugerdas to forfeit $164,737,500 in proceeds of the offenses, which included certain assets that had been seized and frozen at the time Daugerdas was indicted. The forfeited proceeds include a lakefront home on Lake Geneva in Wisconsin, and over $20 million in various securities and financial accounts. Judge Pauley also ordered Daugerdas to pay $371,006,397 in restitution to the IRS. At sentencing, Judge Pauley said that Daugerdas “was at the apex of tax shelter racketeers who tapped into the greed of the super wealthy who did not want to pay taxes.”
In connection with this scheme, David Parse, a former broker at Deutsche Bank, was convicted of various tax fraud charges in May 2011 after an 11-week jury trial, and was sentenced in March 2013 to serve 46 months in prison. Donna Guerin, a former lawyer at J&G’s Chicago tax practice, pleaded guilty in September 2012 to various tax fraud charges related to her role in the scheme. She was sentenced in March 2013 to serve eight years in prison.
Former J&G partner Erwin Mayer, former BDO Seidman vice chairman and board member Charles W. Bee Jr., former BDO principal and former member of BDO Seidman’s TSG and Tax Opinion Committee Michael Kerekes, former BDO Seidman vice chairman and TSG member Adrian Dicker, BDO Seidman partner Robert Greisman, and BDO Seidman partner Mark Bloom have all previously been convicted in connection with this scheme.
This case is being prosecuted by the U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Stanley J. Okula Jr. and Niketh Velamoor for the Southern District of New York and Assistant Chief Nanette L. Davis of the Tax Division are in charge of the prosecution.
Former Jenkens & Gilchrist Attorney Sentenced in Manhattan Federal Court to 15 Years in Prison for Orchestrating Multibillion-Dollar Criminal Tax Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Ronald A. Cimino, Deputy Assistant Attorney General for the Tax Division of the Department of Justice, announced that PAUL M. DAUGERDAS, a tax attorney and certified public accountant, was sentenced today in Manhattan federal court to 15 years in prison for orchestrating a massive fraudulent tax shelter scheme in which he and his co-conspirators designed, marketed, and implemented fraudulent tax shelters used by wealthy individuals to evade over $1.6 billion in taxes owed to the IRS. The 20-year scheme, which DAUGERDAS hatched while working at the Arthur Andersen accounting firm and then continued while a partner at two law firms - Altheimer & Gray and then Jenkens & Gilchrist - generated over $7 billion of fraudulent tax losses and yielded approximately $95 million in fees to DAUGERDAS personally. DAUGERDAS was convicted in October 2013 following an eight-week jury trial, presided over by U.S. District Judge William H. Pauley III, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Paul Daugerdas used his legal and accounting expertise to cheat the system and unlawfully deprive the government of over $1.6 billion of tax revenue. With today’s sentence, Daugerdas’s giant tax fraud scheme has reached its just conclusion under the law, with a sentence of 15 years in prison.”
Deputy Assistant Attorney General Ronald A. Cimino said: “Dishonest professionals who market tax fraud schemes to their clients need to sit up and take note of today’s sentence. The Justice Department and IRS are committed to holding responsible those who would misuse their skills and expertise to help others to evade their lawful tax obligations.”
According to the evidence at trial and other documents filed in the case:
From 1994 through 2004, DAUGERDAS, a lawyer, certified public accountant, and the former head of the Chicago office of the Jenkens & Gilchrist law firm (“J&G”) and its tax practice, participated in a scheme to defraud the IRS by designing, marketing, implementing, and defending fraudulent tax shelters.
As part of the scheme, DAUGERDAS and others schemed to defraud the IRS by, among other things, corruptly endeavoring to prevent the IRS from: (i) detecting their clients’ use of these shelters; (ii) understanding how the transactions operated to produce the tax results reported by the clients; (iii) learning that, rather than serving as legitimate investment transactions, the tax shelters lacked “economic substance” in that they were designed and marketed as cookie-cutter products intended exclusively to eliminate or reduce large tax liabilities; (iv) learning that the clients were not seeking profit-making investment opportunities, but were instead seeking huge tax benefits; and (v) learning that, from the outset, all the clients intended to complete a pre-planned series of steps that had been designed to lead to the specific tax benefits sought by the clients. DAUGERDAS and others created, and assisted in creating, transactional documents and other materials that falsely and fraudulently described their clients’ motivations for entering into the tax shelters and for taking various steps in order to yield the tax benefits.
As part of the scheme to defraud the IRS, DAUGERDAS and his co-conspirators also fraudulently backdated some of the tax shelter transactions. In particular, DAUGERDAS and his co-defendants learned that certain tax shelter transactions had been implemented incorrectly during the year of the transactions, in that they failed to produce the amount or type of tax losses requested by the clients. Rather than reporting those tax shelter results as they occurred - as required by the Internal Revenue Code - DAUGERDAS and others engaged in corrupt “correcting” transactions after the close of the pertinent tax years, and then backdated the tax shelter documents to make it appear as if the amount and type of tax losses sought by the clients had in fact been generated during the pertinent tax years. DAUGERDAS also authored fraudulent tax opinion letters that falsely described when certain aspects of the transactions had actually occurred. As a result of the fraudulent backdating, DAUGERDAS and others caused tax shelter clients to file tax returns that falsely and fraudulently claimed tens of millions of dollars of tax losses to which the clients were not entitled.
As a result of the scheme, DAUGERDAS and his co-conspirators made millions of dollars in fees and bonuses. Specifically, DAUGERDAS made $95 million in profits, but used tax shelters to reduce the taxes he paid to less than $8,000; without the shelters, he would have owed over $32 million in taxes.
DAUGERDAS, 63, of Wilmette, Illinois, was convicted of conspiring to defraud the IRS, to evade taxes, and to commit mail and wire fraud, and of corruptly endeavoring to obstruct and impede the internal revenue laws. He was also convicted of four counts of tax evasion relating to the use of various tax shelters for specified clients, and of mail fraud.
In addition to the prison term, Judge Pauley ordered DAUGERDAS to forfeit $164,737,500 in proceeds of the offenses, which included certain assets of DAUGERDAS’ that had been seized and frozen at the time DAUGERDAS was indicted. The forfeited proceeds include a lakefront home on Lake Geneva in Wisconsin, and over $20 million in various securities and financial accounts. Judge Pauley also ordered DAUGERDAS to pay restitution to the IRS of $371,006,397. At sentencing, Judge Pauley said that DAUGERDAS “was at the apex of tax shelter racketeers who tapped into the greed of the super-wealthy who did not want to pay taxes.”
In connection with this same scheme, David Parse, a former broker at Deutsche Bank, was convicted of various tax fraud charges in May 2011 after an 11-week jury trial, and was sentenced in March 2013 to 46 months in prison. Donna Guerin, a former lawyer at J&G’s Chicago tax practice, pled guilty for her role in the scheme to various tax fraud charges in September 2012. She was sentenced in March 2013 to eight years in prison.
Former J&G partner Erwin Mayer, former BDO Seidman Vice Chairman and board member Charles W. Bee, Jr., former BDO principal and former member of BDO Seidman’s TSG and Tax Opinion Committee Michael Kerekes, former BDO Seidman Vice Chairman and TSG member Adrian Dicker, BDO Seidman partner Robert Greisman, and BDO Seidman partner Mark Bloom have all previously been convicted in connection with the scheme.
Mr. Bharara thanked the IRS and the Tax Division of the Department of Justice for their work on this case.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Stanley J. Okula, Jr. and Niketh Velamoor, and DOJ Tax Division Assistant Chief Nanette L. Davis are in charge of the prosecution.
Former Eagle Resident Sentenced to 96 Months in Prison on Child Sexual Exploitation OffensesRead the Press Release
BOISE – Gerald Lee Farrell, Jr., 47, formerly of Eagle, Idaho was sentenced yesterday in federal court in Boise to 96 months in prison on charges of interstate travel with a minor with the intent to engage in criminal sexual activity and possessing sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Farrell to serve 15 years of supervised release.
Farrell was indicted by a federal grand jury in October 2004. He had been a fugitive since January 2004. He was arrested in Spain in July 2013 and extradited to the United States in December 2013. Farrell pleaded guilty to the charges on March 17, 2014.
According to the plea agreement, Farrell and his wife became a host family for a 16-year-old German female exchange student in August 2003. The plea agreement further states that throughout the fall of 2003, the defendant sought various opportunities to observe the girl nude or partially nude and that he engaged her in conversations of a sexual nature. At the sentencing hearing, the United States introduced evidence that the defendant installed hidden cameras in the girl’s bedroom and a bathroom that she used, which captured video of her changing her clothes and going into and coming out of the shower. The plea agreement states that in December 2003, Farrell took the girl to Nevada. One night, she woke up to find the defendant lying across her stomach and trying to remove her panties. The girl was able to push the defendant away. The girl told others about Farrell’s conduct when they returned to Idaho. Ada County Sheriff’s Office deputies executed a search warrant at Farrell’s Eagle home on January 4, 2004, and seized his computers and other items. Farrell and his wife fled Idaho for Switzerland approximately a week later. According to the plea agreement, a forensic computer examiner found video files of children under 18 engaging in sexually explicit conduct on Farrell’s seized computer hard drive. These images were of minors other than the foreign exchange student.
“This defendant preyed upon a vulnerable foreign exchange student, new to this country, who did not speak English as her first language,” said Olson. “The sentence imposed by this Court, some ten years after Mr. Farrell committed his crimes and fled Idaho for Switzerland, should send a clear message that perpetrators of these crimes cannot run and cannot hide. They will be caught, prosecuted and punished. FBI Special Agent Mary Martin and many detectives from the Ada County Sheriff’s Office worked long and hard to bring Mr. Farrell to justice. I commend their work. I also thank the representatives from the foreign exchange student program for their cooperativeness and persistence as well.”
The case was investigated by the Federal Bureau of Investigation and the Ada County Sheriff’s Office.
Felon Who Sold Firearms Out of Hartford Apartment Sentenced to Six Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERNIE NEGRONI, also known as “Omega” and “King Omega,” 33, a former resident of Mansfield, Ohio, and Connecticut, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 72 months of imprisonment, followed by three years of supervised release, for trafficking firearms.
According to court documents and statements made in court, on June 13, 2013, NEGRONI sold two firearms for $900 to an individual working with law enforcement. The sale occurred in an apartment on Franklin Avenue in Hartford. During the sale, the individual who purchased the firearms observed a suitcase with numerous other firearms and a backpack containing ammunition. NEGRONI also told the individual that he would be returning to Ohio in the near future to obtain more guns.
In the early morning hours of June 14, 2013, law enforcement officers executed a state search warrant at the apartment and seized nine handguns, a sawed-off shotgun and several hundred rounds of ammunition. NEGRONI was arrested on federal firearm charges at that time.
NEGRONI is believed to have acquired the firearms at gun shows operating in Ohio and surrounding states.
NEGRONI, an admitted member of the Almighty Latin King Nation, has a criminal history that includes multiple felony drug convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
NEGRONI has been detained since his arrest on June 14, 2013. On February 3, 2014, he pleaded guilty to one count of possession of firearms and ammunition by a convicted felon.
This matter was investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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(203) 821-3722 [email protected]Felon Sentenced to 13+ Years in Prison for Illegally Possessing FirearmRead the Press Release
PITTSBURGH - A Pittsburgh resident was sentenced yesterday in federal court to a total term of imprisonment of 163 months (13 years, 7 months) on his conviction of possession of a firearm by convicted felon, and for committing this crime during his federal supervised release for a prior federal drug-trafficking and firearms conviction, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Gregory Earl Nash, 33, of Pittsburgh, PA.
According to information presented to the court, on or about Feb. 9, 2013, Nash, a convicted felon, possessed a Glock 22 .40 caliber handgun. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm. Nash had been convicted in federal court in Pittsburgh in 2003 for conspiracy to possess with intent to distribute 500 grams or more of cocaine and possessing and brandishing a firearm during and in relation to that drug-trafficking crime. Nash was sentenced to a lengthy period of incarceration for those prior crimes, and following his release from incarceration, he was serving a period of federal supervised release when he was arrested again with the aforementioned firearm.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
U.S. Attorney Hickton commended the Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Nash.
Federal Jury Convicts Sanford Felon for Possessing A FirearmRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Brandon Lavantis Hughes (28, Sanford) guilty of possession of a firearm by a convicted felon. Hughes faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for September 15, 2014, before U.S. District Judge Roy B. Dalton, Jr. Hughes was indicted on April 2, 2014.
According to testimony and evidence presented at trial, on November 25, 2011, officers from the Sanford Police Department responded to a 911 call indicating that an individual was pointing a firearm at people on a public street in Sanford. After the responding officers arrived at the scene, one of the officers further observed Hughes walk towards a bar that was located on the street. The officers stopped Hughes and recovered a loaded Colt .357 caliber revolver from a nearby garbage can. The firearm was loaded with one round of Remington .357 caliber ammunition. A forensic examination of the firearm revealed that Hughes’ fingerprints were present in two locations on the firearm. Both the firearm and ammunition were manufactured outside the State of Florida and therefore affected interstate commerce.
At the time of the incident, Hughes was a convicted felon. As such, he was not permitted to possess a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Sanford Police Department, and the Volusia County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. This is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Federal Jury Convicts Getaway Driver in Barrington Bank RobberyRead the Press Release
PROVIDENCE, R.I. – A federal jury in Providence late Tuesday afternoon convicted David Lasseque, 33, of Providence, for his role as getaway driver during the July 2013 armed robbery of the Barrington branch office of Bank of America, announced United States Attorney Peter F. Neronha, Barrington Police Chief John M. LaCross, East Providence Police Chief Joseph Tavares and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
The jury convicted Lasseque on one count each of conspiracy to commit bank robbery and bank robbery. A co-defendant in this matter, Pierre S. Rheau, 34, of Providence, pleaded guilty in May 2014 to charges of conspiracy to commit armed bank robbery and armed bank robbery.
According to the government’s evidence presented at trial, at approximately 5:00 p.m. on July 12, 2103, members of the Barrington Police Department responded to a report of an armed bank robbery at the County Road branch office of Bank of America. Witnesses told police that an individual armed with a black firearm approached two tellers demanding they give him all the money. The suspect fled the bank with $4,871 in cash. Witnesses were able to provide police with a detailed description of the robber’s physical make-up, his clothing, clothing accessories and the firearm he displayed during the robbery.
According to the government’s evidence, in response to a police dispatch about the bank robbery, a Barrington Police Sergeant positioned himself on Rte. 114. A short time later the sergeant saw a vehicle traveling in a northerly direction away from the bank by an individual who fit the general description of the bank robber. The sergeant began to follow the vehicle, which he then determined was traveling well in excess of the posted speed limit. The sergeant attempted to affect a traffic stop, however after stopping briefly for the officer the vehicle fled the area at a high rate of speed.
According to the government’s evidence, the suspect vehicle was pursued by police as it drove at a high-rate of speed onto I-195 west then off again via an exit into an East Providence residential neighborhood. As the vehicle continued to be operated in a reckless manner, it crashed into an East Providence police cruiser traveling in the opposite direction, with its lights and siren engaged.
According to the government’s evidence, following the collision with the police cruiser, the driver, David Lasseque, fled on foot but was quickly apprehended by Barrington and East Providence officers. A second individual, Pierre Rheau, later identified as the gunman who robbed the bank, was discovered lying on the back seat. From the back seat area, officers recovered a pile of loose money, a black Daisy .177 caliber BB gun, and clothing and accessories described by witnesses as having been worn by the armed bank robber.
Lasseque faces statutory penalties of up to 25 years in federal prison and a fine of up to $500,000 when he is sentenced on September 26, 2014, by U.S. District Court Judge William E. Smith, who presided over the two-day trial. The jury reached its verdict after approximately 90 minutes of deliberations.
Rheau, who pleaded guilty on May 14, 2014, to conspiracy to commit armed bank robbery and armed bank robbery, faces statutory penalties of up to 30 years in federal prison and a fine of up to $500,000 when he is sentenced by U.S. District Court Chief Judge William E. Smith on September 12, 2014.
Lasseque and Rheau have been detained since their arrest.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
Warren and Seekonk, Mass., Police and the Rhode Island State Police assisted Barrington and East Providence Police and the FBI in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Edgewood Man Pleads Guilty to Violating Federal Wildlife Laws Prohibiting Sale of Eagle FeathersRead the Press Release
ALBUQUERQUE – Dale N. Smith, 60, of Edgewood, N.M., pleaded guilty this morning to violating the Migratory Bird Treaty Act by selling or offering to sell Bald Eagle feathers.
Smith was arrested on April 10, 2014, on a criminal complaint charging him with violating the Migratory Bird Treaty Act, the Lacey Act and the Bald and Golden Eagle Protection Act in March 2014, in Santa Fe County, N.M. Smith was indicted on May 7, 2014, and charged with three counts of violating the Migratory Bird Treaty Act and one count of violating the Lacey Act.
Smith, a member of the Lakota/Sioux Tribe of the Hunkpapa Band of Lakota, was charged as the result of an undercover investigation by the U.S. Fish and Wildlife Service that began on March 7, 2014, and concluded with Smith’s arrest on April 10, 2014. The investigation was initiated after the U.S. Fish and Wildlife Service received information that Smith had posted on an Internet website photographs of Indian arts and crafts which appeared to include federally protected feathers.
On March 7, 2014, an undercover agent contacted Smith and inquired about the feathers on one particular piece of art. Smith responded that the feathers were Bald Eagle feathers and offered to sell the artwork for $1,000. On March 20, 2014, Smith sold a feather fan containing Bald Eagle feathers and a medicine wheel containing Bald Eagle feathers to the undercover agent for $1,000. On March 20, 2014 and again on March 24, 2014, Smith offered to sell a headdress with bald eagle feathers to the undercover agent for $2,000.
Today, Smith pled guilty to one count of violating the Migratory Bird Treaty Act, and admitted selling a feather fan with Bald Eagle feathers to an undercover agent on March 20, 2014. In his plea agreement, Smith acknowledged that the Bald Eagle qualifies as a migratory bird and that he violated the Migratory Bird Treaty Act when he sold the Bald Eagle feather fan to the undercover agent.
At sentencing, Smith faces a maximum statutory penalty of two years in prison to be followed by a term of supervised release and a $250,000 fine. Smith remains on conditions of release pending his sentencing hearing, which has yet to be scheduled.
Bald Eagles are amongst more than 1000 wild birds protected under the federal wildlife laws, including the Migratory Bird Treaty Act, the Bald and Golden Eagle Protection Act, and the Lacey Act. Among other things, these laws prohibit the possession, use, and sale of the feathers or other parts of federally protected birds, as well as the unauthorized killing of these birds, to help ensure that the Eagle and other bird populations remain healthy and sustainable.
This case is being prosecuted by Assistant U.S. Attorney Paul H. Spiers and was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement with assistance from the New Mexico Game and Fish Department, Homeland Security Investigations, the U. S. Marshals Service, and Santa Fe County Sheriff's Office.The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov. Connect with its Facebook page at www.facebook.com/usfws, follow its tweets at www.twitter.com/usfwshq, watch its YouTube Channel at http://www.youtube.com/usfws and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq.
Criticizing Wisconsin’s Voter Id Statute, Attorney General Holder Pledges Aggressive Enforcement of Remaining Parts of Voting Rights ActRead the Press Release
WASHINGTON—On the one-year anniversary of the Supreme Court decision that struck down a key part of the Voting Rights Act, Attorney General Eric Holder pledged Wednesday that the Justice Department would remain aggressive in using Section 2 of the law—which was left intact by the Court’s decision—to guard against unjust voting restrictions.
Section 2, which prohibits barriers to voting that disadvantage minority groups, provided the basis for the department’s lawsuits last year against voting laws in North Carolina and Texas. It also formed the basis for a recent challenge to a voter ID statue in Wisconsin. In April, a federal district court sided with the plaintiffs in that case, declaring that the Wisconsin law violated both the equal protection clause of the Constitution and Section 2 of the Voting Rights Act.
Holder joined in criticizing the Wisconsin law in his message Wednesday.
“The Wisconsin law erected significant barriers to equal access without serving any legitimate government interest,” Holder said.
“It’s clear that discriminatory voting laws, rules, and regulations are not confined to any particular region. And thanks to Section 2 of the Voting Rights Act, neither are our enforcement efforts,” he added.
A full copy of the Attorney General’s video message appears below.
“One year ago today, in the case of Shelby County, a narrowly split but deeply divided U.S. Supreme Court struck down a key part of the historic Voting Rights Act of 1965.
“This was a deeply flawed decision – and it effectively invalidated a cornerstone of American civil rights law.
“In the nearly five decades leading up to that ruling, a critical provision of the Voting Rights Act known as Section 5 – which enjoyed consistent support from Members of Congress and presidents of both parties – provided the Justice Department with a rigorous tool to fight unjust attempts to abridge voting rights.
“It required certain jurisdictions with histories of discrimination to seek “preclearance,” from the Department or a federal court, before new voting changes could take effect – so these proposals could be subjected to fair and thorough review.
“This empowered the Justice Department to protect the right of every American to cast a ballot – unencumbered by discriminatory rules, regulations, and procedures that, intentionally or not, discourage and disenfranchise.
“Indeed, not long before the Shelby County decision, a federal judge considering the Department’s objection to South Carolina’s voter ID law noted the ‘continuing utility’ of preclearance ‘in deterring problematic, and hence encouraging non-discriminatory, changes in state and local voting laws.’
“When the Shelby decision effectively denied us this tool, the Department’s Civil Rights Division shifted resources to the enforcement of other protections that remain on the books – including Section 2 of the Voting Rights Act, which prohibits barriers to voting that disadvantage minority groups.
“During the past year, we filed Section 2 challenges to specific laws in North Carolina and Texas that could disproportionately restrict access to the ballot box for minority citizens.
“Section 2 also provides a valuable tool to individual voters who seek to protect their voting rights.“In April, a federal district court in Wisconsin ruled that Wisconsin’s unnecessarily restrictive voter-ID law, which disproportionately impacted the state’s African-American and Latino voters, violated both the equal protection clause of the Constitution and Section 2 of the Voting Rights Act.
“The Wisconsin law erected significant barriers to equal access without serving any legitimate government interest – because, as the judge found, and I quote, “The defendants could not point to a single instance of known voter impersonation occurring in Wisconsin at any time in the recent past.”
“By restricting access and decreasing voter participation, laws such as those in Wisconsin would shrink – rather than expand – access to the franchise.
“This is inconsistent not only with our history, but with our ideals as a nation – a nation founded on the principle that all citizens are entitled to equal opportunity, equal representation, and equal rights.
“And that’s why, across this country, the Department of Justice will continue to take aggressive steps to stand against disenfranchisement wherever it exists – and in whatever form.
“It’s clear that discriminatory voting laws, rules, and regulations are not confined to any particular region. And thanks to Section 2 of the Voting Rights Act, neither are our enforcement efforts.
“We will not simply stand by as the voices of many citizens are shut out of the process of self-governance.
“And in the days ahead, we will continue to work with Congressional leaders to fill the void left by the Supreme Court’s ruling – and use every available tool to safeguard the most basic right of American citizenship.”
The video message is viewable online here: http://www.justice.gov/agwa.php
Criminal Immigration Charges Brought Against Two Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, Enforcement and Removal Operations (ERO) announced today announced today that charges in two unrelated cases were brought against the following persons in Harrisburg.
Jose Parada-Rodriguez, age 27, a native and citizen of El Salvador, in the United States illegally was charged in a one-count indictment alleging that Parada-Rodriguez, an alien who has previously been arrested and deported from the United States in May 2011, did knowingly and unlawfully reenter the United States and was apprehended in Franklin County, Pennsylvania.
If convicted, Parada-Rodriguez faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
Omar Hernandez-Garfias, age 29, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment alleging that Hernandez-Garfias, an alien who has previously been arrested and deported from the United States in July 2007, did knowingly and unlawfully reenter the United States and was apprehended in Adams, Pennsylvania.
If convicted, Hernandez-Garfias faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO). It is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Colombian Maritime Narcotics Trafficker Sentenced to 25 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Arley Fernando Garces (34, Colombia) to 25 years in federal prison for possession with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States, and conspiracy to do the same, in violation of the U.S. Maritime Drug Law Enforcement Act. Garces pleaded guilty on April 14, 2014. Garces is the last of three co-defendants to be sentenced in this case. Judge Bucklew previously sentenced Santos Cerros-Maldonado to 12 years and 4 months’ imprisonment. Gregorio Campo-Rodriguez was sentenced to 7 years and 3 months in federal prison.
According to court documents and testimony, on August 19, 2013, the United States Coast Guard interdicted Garces, Campo-Rodriguez and Cerros-Maldonado onboard a stateless vessel in the Caribbean Sea. During the interdiction, individuals onboard that vessel jettisoned electronics, personal identifying information, and one kilogram of cocaine. Investigators later determined that Garces and his co-conspirators were smuggling hundreds of kilograms of cocaine in a false bottom of that vessel.
This case was investigated by the Panama Express South Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation comprised of agents and analysts from the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force North. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
The case was prosecuted by Special Assistant United States Attorney Michael J. Meyer and Assistant United States Attorney Maria Chapa-Lopez.
Clinton, Maryland Man Convicted of Transporting A Minor Across State Lines for ProstitutionRead the Press Release
RICHMOND, Va. – Mustafa Muhammad, 36, of Clinton, Maryland, was convicted yesterday by a federal jury of transportation of a minor across state lines for the purpose of prostitution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge, Federal Bureau of Investigation’s Richmond Field Office; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), made the announcement after the verdict was accepted by U.S. District Judge Robert E. Payne.
Muhammad faces a maximum penalty of life in prison with a mandatory-minimum term of 10 years in prison when he is sentenced on September 11, 2014.Muhammad was indicted on April 15, 2014, by a federal grand jury fortransportation of a minor in interstate commerce for the purpose of prostitution. According to evidence at trial, Muhammad met a 16-year old runaway online in February 2014, and then began communicating with her via text message. Later that month, Muhammad and the juvenile met in person in Maryland, and Muhammad posted an advertisement on backpage.com featuring the juvenile and offering her for prostitution. The juvenile provided Muhammad some of the money she made from prostitution. In March 2014,
Muhammad suggested that they travel to Virginia for the juvenile to work in prostitution, and, so, on March 14, 2014, Muhammad drove the juvenile from Maryland to a Holiday Inn in Fredericksburg, Virginia. Muhammad then posted another advertisement on backpage.com in Fredericksburg, advertising the juvenile for prostitution. A Stafford Sheriff’s deputy was looking for possible prostitution activity on backpage.com and discovered the juvenile’s ad. He then arranged to meet the juvenile and discovered that she was a 16-year old runaway.
This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security, Stafford County Sheriff’s Office, and Spotsylvania County Sheriff’s Office. Assistant U.S. Attorney Heather L. Hart is prosecuting the case on behalf of the United States.
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. 3:14-cr-055.
Chicago Man Arrested on Federal Charges for Allegedly Impersonating A U.S. Marshal Service Employee Twice in 2013Read the Press Release
CHICAGO — A Chicago man was arrested today on federal charges for allegedly impersonating an employee of the U.S. Marshals Service on two occasions last year. The defendant, ROBERT P. ROZYCKI, was arrested without incident by deputy U.S. Marshals.
Rozycki, 37, was charged with two felony counts of impersonating a U.S. Marshals Service employee in an indictment that was returned by a federal grand jury yesterday and unsealed following his arrest. He is scheduled to be arraigned at 1:30 p.m. today before U.S. Magistrate Judge Michael Mason in Courtroom 2266 in the Dirksen Federal Courthouse.
The indictment charges Rozycki with falsely assuming the identity of and pretending to be a U.S. Marshals Service employee on March 3 and May 18, 2013.
Each count of impersonating a federal law enforcement officer carries a maximum penalty of three years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrest and indictment were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Darryl McPherson, United States Marshal for the Northern District of Illinois.
The government is being represented by Assistant U.S. Attorney Kathryn Malizia.
The public is reminded that an indictment complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Chapmanville Man Sentenced for Illegal Distribution of Prescription PainkillersRead the Press Release
CHARLESTON, W.Va. – A Chapmanville, West Virginia, man was sentenced to eight months’ home confinement and three years’ probation for distribution of oxymorphone, a powerful painkiller often sold under the brand name Opana, U.S. Attorney Booth Goodwin announced today. Carl Tomblin, 50, previously pleaded guilty to distribution of oxymorphone on March 25, 2014. Today’s sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Tomblin sold oxymorphone to a confidential police informant on five separate occasions in December 2013 and January 2014. Tomblin also admitted that he purchased and distributed oxymorphone for approximately eight months prior to January 2014.
The investigation was conducted by the U.S. 119 Task Force and the West Virginia State Police. Assistant United States Attorney Haley Bunn handled the prosecution.
The prosecution is part of an ongoing effort by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pill and heroin in communities across the Southern District.
California Operators of Myredbook.com Website Arrested for Facilitating Prostitution and Money LaunderingRead the Press Release
Eric Omuro, of Mountain View, California, a.k.a “Red,” was arrested today following his indictment by a federal grand jury on charges involving the use of the mail and the Internet to facilitate prostitution, and multiple counts of money laundering. Annemarie Lanoce, 40, of Rocklin, California, was also indicted and arrested today for use of the mail and the Internet to facilitate prostitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office, and Special Agent in Charge José M. Martinez of the San Francisco Office of the Internal Revenue Service, Criminal Investigation made the announcement.
As part of today’s operation, the FBI seized the domain names sfredbook.com and myRedBook.com, which were allegedly operated by Omuro, with Lanoce’s assistance to facilitate prostitution in the San Francisco Bay Area and throughout the West Coast region of the United States.
According to information available on the publically accessible website as of the date of its seizure by the FBI, myRedbook.com purported to provide “Escort, Massage, and Strip Club Reviews.” Instead, however, the websites were used to host advertisements for prostitutes, complete with explicit photos, lewd physical descriptions, menus of sexual services, hourly and nightly rates, and customer reviews of the prostitutes’ services. The websites used acronyms for numerous sex acts, which were defined in graphic detail in the websites’ “Terms and Acronyms” section. Although the websites could be accessed for free, myRedBook.com advertised fees for premier placement of prostitution advertisements and for “VIP Memberships,” which purportedly allowed customers access to “private forums” and heightened capabilities to search reviews of the prostitution services.
Omuro, 53, who allegedly used numerous aliases, also engaged in money transfers to move myredbook.com revenue into bank accounts which he controlled. According to the Indictment, Omuro engaged in more than twenty monetary transactions to launder the profits derived from the facilitation of prostitution. The Indictment seeks the forfeiture of more than $5 million in property and money derived from the facilitation of prostitution, as well as the Internet domain names myredbook.com and sfredbook.com .
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI’s San Francisco Field Office, the IRS, and the Oakland Police Department. The case is being prosecuted by Trial Attorney Keith Becker of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorneys Elise Becker and Patricia Kenney of the Northern District of California. The Criminal Division’s Office of International Affairs provided assistance to the prosecution.California Operators of MYREDBOOK.COM Website Arrested for Facilitating Prostitution and Money LaunderingRead the Press Release
SAN FRANCISCO – Eric Omuro, of Mountain View, Calif., also known as “Red,” was arrested today following his Indictment by a federal grand jury on charges involving the use of the mail and the Internet to facilitate prostitution, and multiple counts of money laundering. Annemarie Lanoce, 40, of Rocklin, Calif., was also indicted and arrested today for use of the mail and the Internet to facilitate prostitution, announced U.S. Attorney Melinda Haag of the Northern District of California, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office, and Special Agent in Charge José M. Martinez of the San Francisco Office of the Internal Revenue Service, Criminal Investigation.
As part of today’s operation, the FBI seized the domain names sfredbook.com and myredbook.com, which were allegedly operated by Omuro, with Lanoce’s assistance, to facilitate prostitution in the San Francisco Bay Area and throughout the West Coast region of the United States.
According to information available on the publically accessible website as of the date of its seizure by the FBI, myredbook.com purported to provide “Escort, Massage, and Strip Club Reviews.” Instead, however, the website hosted advertisements for prostitutes, complete with explicit photos, lewd physical descriptions, menus of sexual services, hourly and nightly rates, and customer reviews of the prostitutes’ services. The website used acronyms for numerous sex acts, which were defined in graphic detail in the website’s “Terms and Acronyms” section. Although the website could be accessed for free, myredbook.com advertised fees for premier placement of prostitution advertisements and for “VIP Memberships,” which purportedly allowed customers access to “private forums” and heightened capabilities to search reviews of the prostitution services.
Omuro, 53, who allegedly used numerous aliases, also engaged in money transfers to move myredbook.com revenue into bank accounts which he controlled. According to the Indictment, Omuro engaged in more than twenty monetary transactions to launder the profits derived from the facilitation of prostitution. The Indictment seeks the forfeiture of more than $5 million in property and money derived from the facilitation of prostitution, as well as the Internet domain names myredbook.com and sfredbook.com.
The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI’s San Francisco Field Office, the IRS, and the Oakland Police Department. The case is being prosecuted by Assistant United States Attorneys Elise Becker and Patricia Kenney of the Northern District of California, and Trial Attorney Keith Becker of the Criminal Division’s Child Exploitation and Obscenity Section. The Criminal Division’s Office of International Affairs provided assistance to the prosecution.(Omuro indictment )
Caldwell Man Pleads Guilty to Social Security FraudRead the Press Release
BOISE – Jose Louis Fernandez, 44, of Caldwell, Idaho, pleaded guilty today in federal court to one count of Social Security Fraud by Concealment of Material Facts, U.S. Attorney Wendy J. Olson announced. Sentencing is set before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise on September 4, 2014.
According to the plea agreement, Fernandez maintained two separate identities for the purpose of working under a false name while simultaneously collecting Social Security Disability under his true name. In April of 2012, during a Title II benefit review, Fernandez falsely indicated that he had not worked since the date of his last disability decision in 2001. Contrary to this statement, Fernandez had been working at a home-building company since June 2003, and worked until May 2012. As a result of this fraud, Fernandez received SSA Disability benefits to which he was not entitled. He also received Medicare insurance benefits and benefits directed toward his children. The benefits paid as a result of Fernandez’s fraudulent actions were nearly $200,000.
The case was investigated by the Social Security Administration, Office of Inspector General-Office of Investigations; Health and Human Services, Office of Inspector General, with assistance from the Caldwell Police Department and United States Marshals Service.
Businessman Indicted for Making over $5 Million in False Asset Statements to Government Insurance RegulatorsRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Jeffrey Cohen, age 39, of Reisterstown, Maryland, on five counts of making false statements to an insurance regulator. The indictment was returned yesterday and unsealed today upon his arrest.The indictment 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; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
Cohen acted as the president and chairman of the Board of Indemnity Insurance Corporation RRG (IICRRG), located in Sparks, Maryland, and operating in several states including Maryland. Cohen owned RB Entertainment Ventures, which was a majority owner of IICRRG. IICRRG provided general liability, liquor liability and excess liability coverage to policyholders, which were individuals and companies involved in the entertainment industry, such as nightclubs, concert tours and special events. In 2012, IICRRG insured over 3,000 policyholders and wrote over $25 million in premiums.
IICRRG was a Delaware corporation and regulated by the Delaware Insurance Commissioner, which seeks to protect insurance policyholders and the general public by regulating insurance companies and products to ensure among other things the ability to pay claims.
The indictment alleges that in June 2012, regulators from the Delaware Insurance Commissioner examined IICRRG and learned of serious questions about the financial status of IICRRG. Thereafter, in November 2012 and January 2013, Cohen allegedly caused IICRRG to file an unaudited financial statement with, and sent a letter to, the Commissioner, respectively, which falsely claimed that IICRRG had $5.1 million in cash on deposit, in order to influence the actions of the Commissioner. In April 2013, Cohen caused a fax to be submitted to the Commissioner that falsely claimed that a bank had verified that IICRRG had $5.1 million in cash on deposit at the bank.
Cohen faces a maximum sentence of 15 years in prison and a $250,000 fine for making false statements to an insurance regulator. Cohen had an initial appearance today in U.S. District Court in Baltimore, and is detained pending a detention hearing scheduled for Friday, June 27, 2014 at 2:00 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore, IRS – Criminal Investigation and U.S. Postal Inspection Service - Washington Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Joyce K. McDonald, who are prosecuting the case.
Banker in Johnson County Admits Making False Statements on Loan ApplicationRead the Press Release
KANSAS CITY, KAN. – A Johnson County man pleaded guilty Wednesday to conspiring to make false statements on a loan application while he was working as a senior vice president of a bank in Overland Park, U.S. Attorney Barry Grissom said today.
Michael W. Yancey, 55, Olathe, Kan., pleaded guilty to one count of conspiracy to make false statements on a loan application. In his plea, he admitted the crime took place while he was working as a senior vice president and commercial lender at Farmers Bank & Trust, N.A., in Overland Park. Farmers Bank is headquartered in Great Bend, Kan.
Yancey conspired with another person to obtain and maintain a business loan of $850,000 from Farmers Bank for two companies by falsely representing the terms of a real estate purchase in Basehor, Kan. He falsely represented to the bank that the property’s purchase price was $1.1 million when in fact it was $850,000. The false information made it appear the loan conformed to a maximum 75 percent loan-to-value ratio when in truth the loan was approximately 97 percent of the purchase price. He also falsely stated that the loan involved a seller carryback of $150,000 and a borrower equity injection of $125,000.Sentencing will be set at a later time. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended SIG-TARP (Office of Inspector General for the Troubled Asset Relief Program), the FBI, the U.S. Department of Labor and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Attorney General Holder Pledges Support for Legislation to Provide E.U. Citizens with Judicial Redress in Cases of Wrongful Disclosure of Their Personal Data Transferred to the U.S. for Law Enforcement PurposesRead the Press Release
Attorney General Eric Holder announced today that the Obama administration, as part of successfully concluding negotiations on the E.U.-U.S. Data Protection and Privacy Agreement (DPPA), would seek to work with Congress to enact legislation that would provide E.U. citizens with the right to seek redress in U.S. courts if personal data shared with U.S. authorities by their home countries for law enforcement purposes under the proposed agreement is subsequently intentionally or willfully disclosed, to the same extent that U.S. citizens could seek judicial redress in U.S. courts for such disclosures of their own law enforcement information under the Privacy Act.
The Attorney General has been co-chairing the E.U./U.S. Justice and Home Affairs Ministerial in Athens, Greece. The agenda of the Ministerial is to advance E.U.-U.S cooperation against transnational crime and terrorism, with particular emphasis on foreign fighters traveling to and from Syria.
As part of that law enforcement cooperation, the Ministerial also discussed the ongoing negotiation of an "umbrella" DPAA, which would cover the exchange of law enforcement information between the E.U. and the U.S. The DPPA is an outgrowth of an initiative begun during the Bush Administration, and carried forward during the Obama Administration, to establish an enhanced commitment to share information transatlantically to fight crime and terrorism, while also protecting privacy.
In order to advance the DPPA negotiations, Attorney General Holder stated at the Ministerial that the Obama Administration is committed to seeking legislation that would ensure that, with regard to personal information transferred within the scope of the proposed DPPA, E.U. citizens would have the same right to seek judicial redress for intentional or willful disclosures of protected information, and for refusal to grant access or to rectify any errors in that information, as would a U.S. citizen under the Privacy Act.
“In a world of globalized crime and terrorism, we can protect our citizens only if we work together internationally, including through sharing law enforcement information with and by E.U. Member States and other close allies,” Attorney General Holder said. “At the same time, we must ensure that we continue our long tradition of protecting privacy in the law enforcement context. The step we are announcing today will help advance both goals.”
A copy of Holder’s full statement, as delivered in Athens, appears below:
“At the outset, I would like to thank our Greek hosts -- Minister Athanassiou and Minister Kikilias -- for their superb hospitality. And I would like to congratulate them on the highly successful Greek Presidency of the EU.
“Today, we have had the opportunity to discuss the wide range of justice and home affairs issues that bind together the EU, its Member States and the United States, in a common effort to protect all of our citizens. We have talked today about how we can increase our cooperation on countering violent extremism, and on responding to the critical issue of "Foreign Fighters" -- citizens from our countries, and other countries around the world, who are traveling to Syria to join terrorist groups, and who may return as trained and hardened terrorists. We discussed joint strategies for countering transnational crime, including trafficking in firearms and wildlife; and we talked about protecting victims of crime, as well as persons with disabilities. We dealt with the ever-increasing threat of cybercrime -- and announced that the United States would carry forward the important initiative begun by Commissioner Malmstrom, the Global Alliance Against Child Sexual Abuse Online.
“One consistent theme ran through all our discussions: in a world of globalized crime and terrorism, we can protect our citizens only if we work together, including through sharing law enforcement information. At the same time, we must ensure that we continue our long tradition of protecting privacy in the law enforcement context. We already have many mechanisms in place to do this, and we have -- on both sides of the Atlantic – an outstanding record of protecting the privacy of law enforcement information. But we can always do more, and for that reason, the EU and the United States have undertaken to negotiate an "umbrella" Data Protection and Privacy Agreement Regarding Police and Judicial Cooperation -- the DPPA.
“Vice President Reding and her Directorate have been our key partners in this endeavor. While I am sorry that other commitments made it impossible for Vice President Reding to be present today, I did want to state publicly my agreement with her view that we are close to concluding the Data Protection and Privacy Agreement.
“Indeed, I believe we should be able to finish this negotiation soon, since the remaining issues -- those regarding the legal framework for the transfer and use of information -- have already been addressed in our existing agreements, including our EU/U.S. Mutual Legal Assistance agreement and our bilateral treaties with all of the Member States thereunder. These prior agreements have been proven, through actual experience, to provide a high level of protection both for the safety of all our citizens and for their privacy, and we should incorporate their principles into the DPPA.
“Moreover, we should move forward quickly here to conclude our negotiations, since our DPPA negotiators have already reached agreement on additional, and comprehensive, administrative privacy protections that will come into effect when the DPPA enters into force. And today, I am happy to announce that, in support of our desire to bring the DPPA negotiations to conclusion, the Obama Administration is committed to seeking legislation that would ensure that, with regard to personal information transferred within the scope of our proposed DPPA Regarding Police and Judicial Cooperation, EU citizens would have the same right to seek judicial redress for intentional or willful disclosures of protected information, and for refusal to grant access or to rectify any errors in that information, as would a U.S. citizen under the Privacy Act.
“This commitment -- which has long been sought by the EU -- reflects our resolve to move forward not only on the DPPA itself, but on strengthening transatlantic ties.
“The work we do together is vital. Thank you again to our Greek hosts, to the Commission, and to the incoming Italian Presidency.”
Atf-led Law Enforcement Operation Targets Violent Crime in Bridgeport and New HavenRead the Press Release
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New Haven – Law enforcement officials today announced the results of a four-month joint law enforcement initiative to stem violent crime in Bridgeport and New Haven. The operation, headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), resulted in the seizure of more than 73 illegal firearms and is expected to result in the prosecution of 154 individuals on federal or state charges. Today’s announcement was made by U.S. Attorney Deirdre M. Daly, ATF Special Agent in Charge Daniel J. Kumor, Bridgeport Police Chief Joseph L. Gaudett, Jr., New Haven Police Chief Dean Esserman, Commissioner Dora B. Schriro of the Connecticut Department of Emergency Services and Public Protection, Fairfield State’s Attorney John Smriga and New Haven State’s Attorney Michael Dearington.
“There is no higher calling in law enforcement than preventing violent crime,” stated U.S. Attorney Deirdre M. Daly. “Under the powerful leadership of the ATF and with the invaluable collaboration of the Bridgeport and New Haven Police Departments, the Connecticut Department of Emergency Services and Public Protection and other local and federal law enforcement agencies, Operation Samson has successfully stemmed the violence in two of Connecticut’s largest cities. Samson included dangerous undercover operations. We commend the agents and officers who repeatedly risked their lives to remove over 70 illegal guns and a large number of violent offenders from our communities.”
“ATF is always focused on violent crime, as this four-month enhanced enforcement initiative has shown,” stated Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division. “The citizens of New Haven and Bridgeport have been victimized by violent criminals who act with total disregard for public safety and our goal is to take these offenders off the streets, period. The partnership of law enforcement and prosecutors in Connecticut taking a united stand contributed to the operation’s overall success. To this end, we are committed to utilize every resource to keep citizens safe. To those who choose to disregard the rules of our communities by committing violence, be warned, we will not rest until you are off the streets.”
In March 2014, the ATF and the Bridgeport and New Haven Police Departments launched “Operation Samson” a multi-layered initiative targeting violent criminals and illegal firearm possession and firearm trafficking in New Haven and Bridgeport. As part of the initiative, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations. The combined law enforcement team brought a range of expertise to the operation, including tactical, technical, analytical, undercover skills and supervisory experience.
Several other federal, state and local law enforcement agencies supported the initiative as investigations expanded into other cities and towns in Connecticut and across state lines.
The initiative employed intelligence-led policing to determine where to place resources in order to have the greatest impact. During Operation Samson, law enforcement personnel conducted approximately 425 operations, which included undercover meetings, controlled purchases of firearms and narcotics, and the execution of search and arrest warrants. As a result, a total of 80 individuals have been charged, or are expected to be charged, with a variety of federal firearms, narcotics and robbery violations. In addition, 74 defendants have been charged, or expected to be charge, with various state offenses.
The operation resulted in the confiscation of 73 firearms, including sawed-off shotguns, sawed-off rifles and a silencer. Law enforcement also recovered more than one kilogram of crack cocaine, approximately 750 grams of powder cocaine, more than 200 grams of heroin, more than seven kilograms of marijuana, and approximately 400 prescription narcotic pills.
During Operation Samson, investigators uncovered an alleged firearms trafficking ring that used out-of-state straw purchasers who accepted narcotics in exchange for firearms. This ring was identified as having trafficked approximately 100 firearms into Connecticut. A second alleged firearms trafficking ring that used straw-purchasers within Connecticut is estimated to be responsible for delivering 30 illegal firearms into New Haven and Bridgeport. Both of these cases are still being actively investigated.
Investigators also identified and arrested alleged members of robbery crews, some of whom also trafficked in firearms and narcotics.
“I am deeply grateful to the ATF and also the state crime lab,” stated Bridgeport Police Chief Joseph L. Gaudett, Jr. “For the last few months, ATF agents and our officers have worked together seamlessly every day and night. There was a common goal to take guns and dangerous criminals off the street. The technicians at the crime lab worked behind the scenes but they were equal partners in helping us build these cases. Any time law enforcement sent evidence for analysis, the response unfailingly was ‘We’ll get right on it. When do you need the results?’ Because of those efforts, the streets of Bridgeport are safer today.”
“Cooperation between police departments, law enforcement agencies and the community are what’s required to achieve progress,” stated New Haven Police Chief Dean Esserman. “This collaboration, led by the ATF, is an impressive example of cooperation. We are particularly grateful to them, the U.S. Attorney’s Office and the Connecticut State Crime Laboratory. This precedent-setting mission has targeted local gun violence and shown great results. We’re proud of those who’ve put in the long hours to see this operation through. New Haven and the State of Connecticut are safer for it.”
“The results of this initiative clearly demonstrate the effectiveness of cooperation between federal and state law enforcement,” stated Fairfield State’s Attorney John Smriga.
“This initiative has brought together all branches of law enforcement to strengthen partnerships, provide a sense of security and make our greater New Haven communities safer,” stated New Haven State’s Attorney Michael Dearington.
An instrumental component of Operation Samson has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence. NIBIN is an ATF-administered digital ballistics imaging system that aids law enforcement agencies in their investigations by capturing images of shell casings to link violent crimes involving firearms, and subsequently identify firearms users or “trigger pullers.” NIBIN-users are able to acquire digital images of the unique markings made on fired ammunition recovered from a crime scene or test-fired from a crime gun recovered by law enforcement, and then quickly compare those images against earlier NIBIN entries. If a potential match emerges, firearm examiners compare the original evidence with a microscope to confirm the match, or a “hit.”
Within recent months, the Connecticut State Crime Laboratory has entered ballistics evidence recovered from crimes committed within the state into NIBIN and identified a substantial number of NIBIN “hits.” To date, 42 such hits have linked 104 crimes involving the unlawful discharge of firearms that have occurred in Bridgeport, New Haven and surrounding areas. NIBIN has linked these unlawful discharges to robberies, aggravated assaults, and homicides. Importantly, these links have provided law enforcement with timely, actionable leads to assist in identifying serial shooters and violent criminal organizations. NIBIN has also been instrumental in the investigation of four separate homicides. One firearm recovered during Operation Samson has been linked to a previously unsolved homicide and five additional shooting investigations.
“I would like to thank the Bureau of Alcohol, Tobacco and Firearms and Explosives for its commitment of resources to the state of Connecticut and to Operation Samson,” stated Dr. Dora B. Schriro, Commissioner of the Department of Emergency Services and Public Protection. “Bridgeport and New Haven are to be commended as well for their leadership in making their communities safer places to live and work. The additional financial support provided by the Statewide Firearms Trafficking Task Force and the participation by the Connecticut State Police and the State Crime Laboratory were also critical to the success of the Operation. In just a matter of months, this partnership has helped to reduce gun violence and strengthen our communities.”
Operation Samson is the ninth Enhanced Enforcement Initiative (EEI) conducted by ATF since 2012. The cities of New Haven and Bridgeport were chosen for this EEI based on Uniform Crime Reports that ranked both cities as having high amounts of violent crime, and due to existing partnerships between ATF and the New Haven and Bridgeport Police Departments. Previous ATF EEI’s were deployed in New Orleans; Philadelphia; Oakland, Calif.; Flint, Mich.; Chicago; Stockton, Calif.; St. Louis, and Camden, N.J.
U.S. Attorney Daly and ATF Special Agent in Charge Kumor acknowledged and commended the investigative support and assistance of several additional law enforcement agencies including the U.S. Marshals Service, Homeland Security Investigations, the Statewide Firearms Trafficking Task Force, the Connecticut State Police, the Connecticut Department of Correction and the Milford, Norwalk, Stamford, Waterbury and West Haven Police Departments.The federal cases are being prosecuted by the U.S. Attorney’s Office’s Violent Crime and Narcotics Unit under the leadership of Assistant U.S. Attorneys Dave Vatti, Robert Spector and Tracy Dayton.
U.S. Attorney Daly stressed that charges contained in indictments and complaints are not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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