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Tuesday 29 April 2014
Hartford Heroin Trafficker Sentenced to More Than 13 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANGEL ROSA, also known as “Mo Betta” and “Fab,” 43, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 165 months of imprisonment, followed by four years of supervised release, for his role in a heroin trafficking ring.
According to court documents and statements made in court, this matter stems from “Operation Solid Sweep,” a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department into gang-related narcotics trafficking in Hartford’s South End. The investigation specifically targeted a drug trafficking organization headed by Angel Rosa, also known as “Little” and “Daddy,” who is a member of the Los Solidos street gang, and his cousin, ANGEL ROSA, also known as “Mo Betta” and “Fab.” ROSA, aka Mo Betta, managed the daily operations of the organization, facilitated the delivery and transportation of large quantities of heroin, and supervised numerous drug sellers, including his own son, who distributed heroin and other narcotics in the Zion Street area. At times, he also used violence to ensure the success of the organization.
As a result of the investigation, 21 individuals were charged with various federal offenses, and law enforcement officers seized narcotics, one firearm, approximately $230,000 in cash, eight vehicles and jewelry.
ROSA was arrested on April 11, 2013. On December 19, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
As part of his case, ROSA forfeited $8,767 in cash that was seized from his residence at the time of his arrest, a 2007 Mercedes E550 and a 2006 Harley Davidson XLH1200.
During the investigation, ROSA was on state probation for a similar offense. In 2006, he was convicted of selling heroin and was sentenced to 17 years of incarceration, suspended after seven years.
Mo Betta’s son, Angel Rosa, aka “Booby” and “Little Booby,” pleaded guilty and was sentenced to 66 months of imprisonment. Mo Betta’s cousin, Angel Rosa, aka “Little” and “Daddy,” also pleaded guilty and awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Connecticut State Police, Hartford Police Department, East Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard. The Connecticut State Police’s Emergency Services Unit, Hartford Police Department’s Emergency Response Team, Capital Region Emergency Response Team, Drug Enforcement Administration, Homeland Security Investigations and the New Britain, East Hartford, Wethersfield and Manchester Police Departments have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Patrick Caruso.
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[email protected]Goodwin Announces Another Record Prescription Drug Take-back TotalRead the Press Release
U.S. Attorney’s Office and DEA announce more than 3 tons collected, breaking previous record by more than half a ton
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin and U.S. Drug Enforcement Administration (DEA) Resident Agent in Charge Suzan Williamson jointly announced today that last Saturday's Prescription Drug Take-Back event collected a total of 6,211 pounds of unwanted, unused and expired prescription drugs from citizens and households across West Virginia. The April 26th collection results far surpassed the previous Take-Back record of 4,976 pounds of prescription drugs collected in October 2013.
U.S. Attorney Goodwin said, “The last three Take-Back events have each resulted in record totals of prescription medications collected. Last Saturday, we broke our old record by more than half a ton. My thanks go to the DEA and all of the law enforcement agencies that participated. Most of all, I want to thank the citizens of West Virginia, who've stepped up in tremendous fashion to keep their unwanted prescription medicines out of the wrong hands.” Click here to hear an audio clip from U.S. Attorney Booth Goodwin.
Resident Agent in Charge Williamson commended all of the federal, state and local law enforcement partners in West Virginia for their assistance. “There were 127 collection sites designated throughout the state for the April 26th event, providing convenient and accessible locations for the citizens of West Virginia to drop off expired, unused and unwanted medications. It is the assistance of all of our law enforcement partners that continues to make Prescription Drug Take-Back events in West Virginia so successful.”
In the seven previous Take-Back events, the DEA and its law enforcement partners have collected more than 3.4 million pounds (1,733 tons) of prescription medications nationwide. By removing unwanted prescription medications from American homes, each Take-Back event helps prevent potentially addictive substances from falling into the hands of children and teenagers. The Take-Back program also reduces the risk of burglaries and home invasions staged by criminals seeking household prescription drugs.
U.S. Attorney Goodwin encouraged West Virginia citizens to make proper disposal of their prescription medications a regular habit. “While the twice-a-year Take-Back events are tremendously successful, many of our law enforcement agencies now maintain permanent drop-off boxes to allow more frequent disposal of prescription drugs. Sheriffs’ Departments in Kanawha, Putnam, Raleigh, Greenbrier and Wood counties are among those agencies that collect prescriptions drugs throughout the year. Since proper disposal is vital in keeping these drugs off the streets, I encourage our citizens to continue to take advantage of permanent drop-off boxes available in their communities.”
Click here to listen to an audio clip from U.S. Attorney Booth Goodwin.Georgia Dentist Sentenced to Jail for Tax EvasionRead the Press Release
Dr. Dayo Obebe of Muscogee County, Georgia, was sentenced today to serve 12 months and one day in prison for tax evasion and ordered to pay $189,661 in restitution, announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. Obebe pleaded guilty to one count of tax evasion on Feb. 6, 2014.
According to court documents, Obebe is a dentist licensed in Georgia and Alabama, where he operated the Moon Road Cosmetic & Family Dentistry in Columbus, Georgia, and the Brent Dental Dentistry in Brent, Alabama. In 2004, Obebe began intentionally concealing money he earned from patients who paid with credit cards from his accountants and the Internal Revenue Service (IRS) by placing credit card payments into a separate bank account from cash and check receipts. Consequently, Obebe intentionally underreported his total income from the dental practices on his 2004, 2005 and 2006 federal income tax returns by more than $500,000 and falsely claimed a tax refund.
According to court documents, during an IRS audit of Obebe’s tax return, he lied to the IRS revenue agent conducting the audit when he stated that the dental practices did not accept credit cards as a form of payment for dental services when, in fact, the dental practice did accept credit cards. In total, Obebe evaded paying over $185,000 in taxes to the IRS on his 2004, 2005 and 2006 federal income tax returns.
The case was investigated by special agents of IRS - Criminal Investigation and Trial Attorney Charles Edgar for the Tax Division prosecuted the case.
More information about the Tax Division and its enforcement efforts can be found at the division website.
Georgia Dentist Sentenced to Jail for Tax EvasionRead the Press Release
WASHINGTON – Dr. Dayo Obebe of Muscogee County, Georgia, was sentenced today to serve 12 months and one day in prison for tax evasion and ordered to pay $189,661 in restitution, announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. Obebe pleaded guilty to one count of tax evasion on Feb. 6, 2014.According to court documents, Obebe is a dentist licensed in Georgia and Alabama, where he operated the Moon Road Cosmetic & Family Dentistry in Columbus, Georgia, and the Brent Dental Dentistry in Brent, Alabama. In 2004, Obebe began intentionally concealing money he earned from patients who paid with credit cards from his accountants and the Internal Revenue Service (IRS) by placing credit card payments into a separate bank account from cash and check receipts. Consequently, Obebe intentionally underreported his total income from the dental practices on his 2004, 2005 and 2006 federal income tax returns by more than $500,000 and falsely claimed a tax refund.
According to court documents, during an IRS audit of Obebe’s tax return, he lied to the IRS revenue agent conducting the audit when he stated that the dental practices did not accept credit cards as a form of payment for dental services when, in fact, the dental practice did accept credit cards. In total, Obebe evaded paying over $185,000 in taxes to the IRS on his 2004, 2005 and 2006 federal income tax returns.
The case was investigated by special agents of IRS - Criminal Investigation and Trial Attorney Charles Edgar for the Tax Division prosecuted the case.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Former Waldo Chiropractor Pleads Guilty to $3 Million Medicare FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of a Kansas City, Mo., clinic pleaded guilty in federal court today to a $3 million Medicare fraud scheme.
Michael Kelly Miller, 59, of Temple Terrace, Fla., formerly the owner of Waldo Rehabilitation Health & Wellness in Kansas City, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Sarah W. Hays to a federal information that charges him with one count of health care fraud.
Miller, a licensed chiropractor, was the owner of Brookside Health Services, doing business as Waldo Rehabilitation Health & Wellness at 7337 Broadway, Kansas City, during the time period of February 2009 to December 2011. He currently practices at Miller Clinic for Optimal Health in Temple Terrace.
By pleading guilty today, Miller admitted that he submitted claims to Medicare for nerve block injections that were false and fraudulent because the nerve block injections were not medically indicated and necessary for the patients’ health per Medicare coverage guidelines. Between February 2009 and December 2011, the clinic billed Medicare approximately $3,083,454, and Medicare paid the clinic approximately $879,582 for nerve block injections.
Beginning in 2009, the clinic shifted its focus from primarily providing chiropractic services to purportedly diagnosing and treating neuropathy. This shift in focus was due, in part, to information Miller received from a third party promoting a new, “cutting edge” treatment for neuropathy, which included nerve block injections. At the time, Medicare had no specific coverage guidelines regarding the use of nerve block injections for peripheral neuropathy. Miller did not investigate or inquire whether Medicare considered nerve block injections to be medically indicated and necessary for patients experiencing neuropathy.
Miller’s patients typically received anodyne infrared light and electrical stimulation therapies two or three times per week for four to eight weeks. The clinic’s purported treatment of neuropathy was not supported by medical research studies or peer-reviewed medical publications, and would be considered an experimental or investigational treatment or alternative medicine.
During this time, most of the clinic’s patients were Medicare beneficiaries, and most of the clinic’s revenues were received from Medicare. Medicare will not cover experimental or investigational procedures and treatments or alternative medicine. Miller was aware of these Medicare requirements.
Based on Miller’s experience with Medicare, he knew and expected that the clinic would be paid less than the full amount sought in the claims submitted. For example, for nerve block injections, the clinic was paid approximately 29 percent of the claims submitted. Miller estimates that the reasonably foreseeable pecuniary harm and intended loss with respect to nerve block injections was more than $1 million but not more than $2.5 million.
Under the terms of today’s plea agreement, Miller will be sentenced to at least 15 months, and as much as 21 months, in federal prison. Miller must pay approximately $879,582 in restitution to Medicare, with the exact amount to be determined prior to sentencing. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Diabetic Neuropathy
Diabetic neuropathy is a type of nerve damage resulting from diabetes, often damaging nerves in the legs and feet. Diabetic neuropathy is usually diagnosed based on the patient’s symptoms, medical history, and physical examination. While presently there is no medically recognized cure, treatment usually focuses on slowing the disease’s progression, controlling blood glucose, relieving pain, and restoring function. Type II diabetes, one of the underlying causes of neuropathy, is a manageable disease with medicine and dietary change.
This case is being prosecuted by Assistant U.S. Attorneys Cindi S. Woolery and Daniel M. Nelson. It was investigated by the Department of Health and Human Services, Office of Inspector General and the FBI.Former Social Security Administration Employee Pleads Guilty to Taking Bribes in Return for Giving People Increased Benefits-Admits Accepting Total of $54,662 from 13 People-Read the Press Release
WASHINGTON – Christopher Payton, a former specialist for the Social Security Administration in Washington, D.C., pled guilty today to soliciting more than $50,000 in bribes from Social Security recipients in return for providing them with extra, unauthorized benefits.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr. and Michael McGill, Special Agent in Charge of the Philadelphia Field Division of the Social Security Administration’s Office of the Inspector General.
Payton, 46, of Mount Rainier, Md., pled guilty in the U.S. District Court for the District of Columbia to one count of bribery. The Honorable Senior Judge Gladys Kessler scheduled sentencing for July 16, 2014. The charge carries a statutory maximum of 15 years in prison and financial penalties. Under federal sentencing guidelines, Payton faces a likely range of 30 to 37 months in prison and a fine of up to $60,000. The plea agreement calls for him to pay $54,662 in restitution and an identical amount in a forfeiture money judgment.
According to a statement of offense, signed by the defendant and the government, Payton was a Social Insurance Specialist for the Social Security Administration’s Anacostia Office in Southeast Washington. His duties included conducting interviews regarding eligibility for benefits, authorizing or disallowing entitlement, and reviewing and authorizing Supplemental Security Income. He had computerized access to the agency’s database.
Between January and May of 2013, Payton met with 13 people as part of his responsibilities at the agency. Upon meeting these individuals, Payton told them, in substance, that if they gave him a tip, he would take care of them. After they agreed to his solicitation, Payton caused retroactive Supplemental Security Income benefits to go into the individuals’ bank accounts. These retroactive payments were not properly authorized, and Payton knew that the people receiving them were not entitled to the extra income.
After the individuals began seeing increased retroactive benefits in their bank accounts, they met with Payton throughout the Anacostia neighborhood and gave him payments. All told, Payton received $54,662 in cash payments from the individuals for his actions.
Payton’s activities came to light after someone reported his suspicious conduct. In addition, authorities received information through a fraud hotline operated by the Social Security Administration’s Office of the Inspector General. The public can report allegations of waste, fraud, and abuse online at http://oig.ssa.gov/report or by phone at 1-800-269-0271.
In announcing the plea, U.S. Attorney Machen and Special Agent in Charge McGill praised the work of those who investigated the case from the Social Security Administration’s Office of the Inspector General. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Krishawn Graham, and Angela Lawrence; Investigative Analyst Sharon Johnson, and former Paralegal Specialist Shanna Hays. They expressed appreciation for the assistance provided by Trial Attorney Edward P. Sullivan of the Department of Justice’s Public Integrity Section.
Finally, they commended the work of Assistant U.S. Attorney Philip A. Selden, who is prosecuting the case, and Assistant U.S. Attorney Diane Lucas, who is assisting with forfeiture issues.
14-101Former Mendenhall Police Chief Sentenced to Five Years in Federal Prison for Conspiracy to Commit Extortion, Bribery and TheftRead the Press Release
Jackson, Miss – Bruce Barlow, 50, former Chief of Police for the Mendenhall Police Department, in Mendenhall, Mississippi, was sentenced to five years in federal prison followed by three years of supervised release for conspiracy to commit extortion, bribery and theft during this tenure as Mendenhall police chief, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. The amount of restitution to be paid by Barlow will be determined at a restitution hearing scheduled for July 10, 2014.
From January, 2010, through July, 2010, Bruce Barlow instructed Mendenhall police officers to pull over motorists and find ways to gain access into and search their vehicles. He also instructed his officers to seize cash at every arrest, including arrests for misdemeanor charges.
When Barlow was interviewed by FBI agents on March 7, 2013, he admitted to stealing money and property and allowing others to take property seized by the Mendenhall Police Department from the victims after an arrest or detention.
As part of his plea agreement, Barlow agreed to make restitution to the victims of the crime and forfeit any money or property related to the crime. Barlow also agreed to never be employed by any governmental entity in the future.
“The job of a police chief is to serve and protect the public,” said U.S. Attorney Davis. “Mr. Barlow made the choice to go from upholding the law to breaking it. This office will aggressively pursue allegations of public corruption wherever they lead, and this case should serve as a stern and sobering reminder that no one is above the law.”
This case was investigated by the Federal Bureau of Investigation, the Simpson County Sheriff’s Office, and the Mississippi State Auditor’s Office. Assistant U.S. Attorneys Mike Hurst and Mary Helen Wall prosecuted the case.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Former Lawmen Ordered to Federal PrisonRead the Press Release
McALLEN, Texas – Five defendants, all former law enforcement officers, have been ordered to federal prison for their roles in a drug trafficking conspiracy, announced United States Attorney Kenneth Magidson.
Jorge Garza, 60, of Edinburg, was convicted in August 2013 after six days of trial, while Fernando Guerra Jr., 24, Claudio Mata, 35, and James Phil Flores, 47, all of Edinburg, and Gerardo Mendoza-Duran, 31, of Pharr, all previously pleaded guilty in relation to the case.
Today, U.S. District Judge Randy Crane handed Mata a total sentence of 140 months in federal prison. Garza received a sentence of 121 months, while Flores was sentenced to a 120-month term of imprisonment. Mendoza-Duran and Flores both received 96-month terms.
“The prosecution of corrupt law enforcement officers will always be a priority of this office in order to ensure the community’s faith in our judicial system,” said Magidson. “The sentencings today represent part of that continuing effort.”
Fernando Guerra Sr., 48, Jonathan Trevino, 29, Eric Alcantar, 29, Alexis Espinoza, 30, all of McAllen, Salvador Arguello, 34, of Edinburg, and Fabian Rodriguez, 29, of Edcouch, have all also pleaded guilty in the case and are expected to be sentenced tomorrow.
Arguello, Mata, Alcantar and Rodriguez were former members of the Hidalgo County Sheriff’s Office (HCSO) and the now infamous and defunct Panama Unit. Espinoza was a former Mission Police Officer, as was Trevino who also served on the Panama Unit. Mendoza-Duran, Flores and Garza were all members of the HCSO, but not part of the Panama Unit itself. All were convicted of using their positions as law enforcement officers to traffic narcotics.“Today’s sentencing of law enforcement officials involved in crimes they are sworn to investigate serves as a sobering warning about the consequences of violating the public's trust,” said Special Agent in Charge Janice Ayala of Homeland Security Investigations (HSI) in San Antonio. “While HSI is saddened by the circumstances that brought this sentencing to bare, HSI feels justice has been served.”
The investigation revealed that from 2010 through 2012, the defendants used their positions to steal narcotics and currency from local drug traffickers. The stolen narcotics were then re-distributed to Guerra Sr. In addition, Trevino, Espinoza and Mendoza-Duran attempted to assist narcotics traffickers by escorting loads of cocaine which travelled through Hidalgo County in exchange for thousands of dollars.The Guerras, Flores and Garza were also convicted for their roles in the distribution of stolen narcotics. Flores and Garza assisted Guerra Sr. and Jr. by performing false traffic stops utilizing HCSO vehicles in order to assist the Guerras with the theft of the narcotics.
The investigation leading to the charges was conducted by HSI, Drug Enforcement Administration, Immigration and Customs Enforcement - Office of Professional Responsibility, FBI and the Texas Department of Public Safety. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.Former Laredo/Dallas Business Owner Heads to Prison in Large Marijuana CaseRead the Press Release
LAREDO, Texas – Marco Antonio Marchan, 45, has been ordered to federal prison for engaging in a conspiracy to distribute and possession with intent to distribute in excess of 1,000 kilograms of marijuana, announced United States Attorney Kenneth Magidson. A federal jury convicted Marchan Wednesday, Dec. 18, 2013.
Today, U.S. District Judge Marina Garcia Marmolejo ordered he serve a sentence of 210 months in federal prison to be immediately followed by a five-year-term of supervised release.
At the hearing, additional information was presented to include that Marchan was was not just any offender, but a leader/organizer in a long standing conspiracy. The government argued Marchan had been engaged in drug trafficking on a long-term basis and that between 2008 and 2009 alone he arranged for others to transport more than 8,500 kilograms of marijuana from Laredo to the Dallas area. The government noted that the evidence presented at trial established Marchan was the man who coordinated and arranged for the delivery of several loads of marijuana from Laredo to Dallas. Marchan would call upon co-defendants to deliver the drugs to warehouses in Laredo to his drivers who would then transport it to Dallas. Marchan would then dictate where and to whom the marijuana would ultimately be delivered. Marchan would set the price of the marijuana in Dallas in order to ensure he would profit from the endeaver.
Further information was also presented today to indicate Marchan obstructed and impeded justice when he indirectly attempted to intimidate and otherwise influence a witness who was set to testify against him.
The court concurred and found him to be a leader/organizer, that he did in fact obstruct justice and, therefore, was subject to a significant sentence. Following the hearing, a family member of Marchan stood and protested the sentence.
During trial, evidence was presented that Marchan was a former Laredo resident who had several businesses but moved to the Dallas area in 2008, where he operated a business known as Bumper World. According to testimony, upon moving there, he began coordinating to have Los Zetas supply him with multi-ton quantities of marijuana in the Laredo area for ultimate delivery to him in the Dallas area.
A former co-conspirator testified that Marchan had previously been kidnapped by the Zetas for a drug debt and decided to move his drug trafficking operation to the Dallas area. From 2008 to 2009, Marchan had been supplied with at least six marijuana loads. The investigation revealed Marchan’s co-conspirators had sent him 5,500 pounds to the Dallas area on Nov. 30, 2009, and then an additional load of 1,132 kilograms three days later.
Between Nov. 24, 2009, through Dec. 2, 2009, Marchan recruited a person to secure a warehouse and truck driver who could deliver 1,300 kilograms of marijuana from Laredo to Dallas. That person reported the incident to the Drug Enforcement Administration (DEA) and an undercover operation was launched during which time agents coordinated to receive the marijuana.
Marchan ordered the drugs to be delivered to a certain address on Dan Morton Street in Dallas. Marchan’s Bumper World business trucks were seen throughout the area conducting counter surveillance while the transaction was underway. Marchan’s people also followed a white van to a second location where the marijuana was off-loaded from the undercover tractor trailer to the van. The white van then transported the marijuana to a third location, a residence on Lynnacre in Dallas. There, a search warrant was executed which resulted in the discovery of the 1,132 kilograms of marijuana in the van. An additional 2,877 kilograms of marijuana was also found inside the residence which was believed to be the load sent to Marchan on Nov. 30, 2009.
The total weight of marijuana seized by DEA Laredo and Dallas was 4009 kilograms with a value of more than $2.5 million.
The jury deliberated for less than an hour in returning the guilty verdict against Marchan in December 2013.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The case was investigated by DEA Laredo and Dallas with the assistance of local Dallas law enforcement authorities and prosecuted by Assistant United States Attorneys Mary Lou Castillo and Sanjeev Bhaskar.
Former CEO of SEMO Health Network Pleads Guilty to Submitting False Grant DocumentsRead the Press Release
St. Louis, MO – CHERYL ANN WHITE pled guilty to conspiring to create and submit numerous false documents related to Southeast Missouri Health Network, Inc. to federal agencies from 2004 to 2013.
According to court documents, Southeast Missouri Health Network, Inc. (SEMO), is a non-profit, federally qualified health center (FQHC), which provides health services in six counties in southeast Missouri. SEMO had administrative offices and medical, dental and fitness centers in Benton, Bernie, Kennett, Matthews, New Madrid, Portageville, Senath and Sikeston, Missouri.
White was the chief executive officer of SEMO and a non-voting member of the board of directors until December 2013. Her duties included preparing or supervising the preparation of applications for operational and construction grants to be submitted to the United States Department of Health and Human Services (HHS), administering the grants and insuring that the grant funds were expended as required by the grants and preparing and submitting required reports to HHS and other regulatory agencies.
With her plea, White admitted that SEMO submitted annual grant reports for 2008 through 2012 and as many as 40 grant applications, which contained false information, including information about the number of patients needing services and the number of services provided by SEMO. White also admitted to using SEMO funds to pay for a roof on a building she owned; selling another building and a trailer to SEMO while concealing her ownership; using SEMO funds to purchase personal gifts for a relative and some of her co-conspirators; and issuing checks to SEMO employees, who then gave the cash to her. White also admitted to giving information to a co-conspirator, who was then awarded, contrary to federal regulations, the contract to construct the clinic in Bernie, Missouri; repeatedly awarding contracts to the same co-conspirator although seven SEMO buildings he constructed or renovated had leaking roofs or cracked slabs; and receiving payments from the co-conspirator, later disguised as a loan. White also admitted to falsely certifying that an engineering company had determined the Bernie clinic was constructed in compliance with the grant requirements; falsely certifying that SEMO spent $110,000 for two floor–mounted x-ray machines and $40,000 for a digital imaging system, when the equipment was never purchased.
White, New Madrid, Missouri, pled guilty to one felony count of conspiracy to submit false documents before United States District Judge Carol E. Jackson Monday, in St. Louis. Sentencing has been set for July 30, 2014.
She now faces a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Office of the Inspector General, Office of Investigations, and the Office of Audit of the U.S. Health and Human Services and the FBI. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney's Office.
Florida Resident Sentenced in Connection with International Lottery Scheme That Defrauded Elderly AmericansRead the Press Release
Charmaine Anne King was sentenced today in connection with her role in a fraudulent international lottery scheme that targeted U.S. citizens, the Justice Department announced. King was sentenced by U.S. District Court Judge K. Michael Moore in Miami to serve 57 months in prison and 5 years supervised release. A hearing on restitution has been scheduled for June 5, 2014. King was convicted by a federal jury in Miami on Feb. 5, 2014, of one count of conspiracy, three counts of mail fraud, and two counts of wire fraud.
King’s prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat international lottery fraud schemes preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
“The Justice Department will continue to hold criminals accountable for fraudulent lottery schemes,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “This illegal conduct creates significant financial harm to people throughout the country, and we will continue to investigate and prosecute such crime, and bring those responsible to justice.”
A federal grand jury in Miami returned an indictment against King and co-conspirator Althea Angela Peart on Oct. 31, 2013. Judge Moore adopted a report and recommendation accepting Peart’s guilty plea on Feb. 4, 2014, and on March 20, 2014, he sentenced Peart to 33 months’ incarceration. As part of her plea agreement, Peart acknowledged that a co-conspirator, believed to be located in Canada, mailed letters to elderly victims in the United States falsely informing the victims that they had won more than a million dollars in a lottery. These letters purported to be from an actual sweepstakes company in the United States.
“International lottery fraudsters have cheated Americans out of tens of millions of dollars,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida. “In this particular scheme, the fraudsters convinced the victims to deposit counterfeit checks into their bank accounts in order to pay fees to collect their purported lottery winnings. After the victims sent the money to King, the counterfeit cashier’s checks bounced and they lost their money. Such fraud will not be tolerated. Together with federal and local law enforcement, we are working to put an end to this type of scheme.”
The evidence at King’s trial showed that a co-conspirator sent fraudulent lottery letters to the victims and included counterfeit cashier’s checks made out to the victims for thousands of dollars. These letters instructed victims to call “claims agents” who were actually co-conspirators, and when the victims called the purported claims agents, the agents informed the victims that they had to pay several thousand dollars in fees in order to collect their purported lottery winnings. The claims agents told the victims to deposit the cashier’s checks in the victims’ bank accounts in order to purportedly cover the money they had to pay. The co-conspirators instructed the victims on how to send and wire this money to King and others. The cashier’s checks that victims received from the fraudulent lottery had no value. The evidence demonstrated that after the victims sent money to King, the counterfeit cashier’s checks bounced. Victims never received any lottery winnings.
Evidence presented at trial showed that King kept a percentage of the money she received from victims and sent the rest of the money to a co-conspirator. King continued to participate in this scheme even after the U.S. Postal Inspection Service verbally informed her that she was participating in unlawful activity, and after she later signed a Cease and Desist Order requiring that she stop receiving money from victims of fraud. The order that King signed described the lottery related activity that the U.S. Postal Inspection Service explained was unlawful.Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, and the U.S. Marshals Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning with the Department of Justice’s Civil Division, Consumer Protection Branch.
Felon Arrested for Plotting to Blow up Store and Gas Stations as Diversion for Bank RobberiesRead the Press Release
A recently released prison inmate was arrested yesterday for plotting to blow up a large store and gas station as part of his bank robbery scheme, announced U.S. Attorney Jenny A. Durkan. LARRY GILLETTE, 53, of Shelton, Washington, is charged with solicitation to commit a crime of violence and being a felon in possession of a firearm. GILLETTE allegedly began plotting the bombings and bank robberies while still serving a state prison sentence for identity theft. After being released from prison on April 14, 2014, GILLETTE described his plot in detail to someone he thought would assist him with his crimes. In fact the person he met with was an undercover officer working for the FBI’s Safe Streets Task Force. GILLETTE will appear in U.S. District Court in Tacoma at 2:30 today.
According to the criminal complaint, law enforcement learned that GILLETTE told others in prison of his plan to rob banks in Shelton using bombs at various businesses as a diversion during which he would commit violent takeover style robberies. Following his release from prison, an undercover officer posed as someone who could assist GILLETTE in obtaining weapons and explosives for his plot. On two different occasions in April 2014, GILLETTE was recorded on audio and video describing his plot to the undercover officer as they drove around Shelton. As described in court documents, the plot involved powerful bombs at Walmart, and Arco and Chevron gas stations. The plot allegedly anticipated that while first responders were busy with the bombings, GILLETTE would rob three banks. GILLETTE indicated he wanted the maximum loss of life to occur in the bombings and the bank robberies. At one point in the investigation, GILLETTE took possession of four Glock firearms. GILLETTE did not know the firearms had been modified so they would not fire. GILLETTE was arrested yesterday afternoon when he met again with the undercover officer, and attempted to ignite a car bomb. The “bomb” was inoperable.
Solicitation to commit a crime of violence is punishable by up to twenty years of imprisonment. Being a felon in possession of a firearm is punishable by up to ten years of imprisonment.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Seattle Safe Streets Task Force -- which includes special agents from the FBI and task force officers from the Seattle Police Department (SPD) -- and the SPD Major Crimes Task Force. SPD SWAT, the Mason County Sheriff’s Office, and Shelton Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) partnered with the task forces on the arrest and the serving of search warrants.
The case is being prosecuted by Assistant United States Attorney Jeffrey A. Backhus.Federal Prison Terms Handed Down in Sex Trafficking of A Minor CaseRead the Press Release
This afternoon, 32-year-old Ivan Gonzales of San Antonio was sentenced to 168 months in federal prison followed by 20 years of supervised release for his role in a sex trafficking scheme involving a minor announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Christopher H. Combs, San Antonio Division.
On October 2, 2013, Gonzales pleaded guilty to one count of sex trafficking of a minor. By pleading guilty, Gonzales admitted that in December 2012, he recruited and enticed a minor female to engage in sexual activity for financial gain. According to court records, Gonzales and his girlfriend, 19–year-old Ashley Nicole Gonzales of San Antonio, posted advertisements to promote the minor, explained prostitution terminology to her, told her how to conduct business, and transported her to locations where she would meet clients and perform sexual activity. Court records also revealed that Ivan Gonzales and Ashley Gonzales took all of the proceeds from the scheme.
On January 7, 2014, U.S. District Judge Xavier Rodriguez sentenced Ashley Gonzales to three years in federal prison followed by one year of supervised release for her role in the scheme.
This investigation was conducted by the agents with the Federal Bureau of Investigation. Assistant United States Attorney Bettina Richardson prosecuted this case on behalf of the Government.
Ex-Postal Employee Sentenced for Worker's Compensation FraudRead the Press Release
COEUR D'ALENE— Pamela J. Unruh, 58, of Rainer, Washington, was sentenced yesterday to two years of probation for false statement or fraud to obtain Federal Employee’s Compensation, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Unruh to complete 100 hours of community service.
According to court documents, from at least as early as August 2006 to 2011, Unruh admitted that she failed to report her self-employment income to the Office of Worker's Compensation (OWCP) on the annual form she was required to complete and return to OWCP.
The case was investigated by United States Postal Service-Office of the Inspector General.
Elk County Man Sentenced to Eight Years in Prison for Drug and Gun Law ViolationsRead the Press Release
JOHNSTOWN, Pa. - A resident of Brockport, Pa., has been sentenced in federal court to 97 months in prison and four years supervised release on his conviction of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on James A. Volpe, 55.
According to information presented to the court, Volpe distributed an imprint die on Aug. 20, 2012, which would facilitate the production of counterfeit Viagra tablets. In addition, on Nov. 1, 2012, Volpe possessed with the intent to distribute in excess of 50 marijuana plants and 50 grams or more of methamphetamine, and he also possessed a German Sports Gun pistol. He had been convicted in 2009 in United States District Court of unlawful possession of a firearm by a convicted felon. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Unlawful possession of a firearm by a convicted felon is such a crime.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Food and Drug Administration-Office of Criminal Investigations, Homeland Security Investigations, the Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Volpe.
According to Mr. Hickton, Volpe was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Eight More Individuals Sentenced in Operation SoonerRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Anne C. Conway yesterday sentenced eight individuals in a cocaine trafficking investigation, dubbed Operation Sooner or Later, which has spanned more than three years. In the latest round of prosecutions, Chief Judge Conway sentenced Rodrigo Cantu Morales, Carlos Uriostegui-Nunez, Mario Ginorio, and Willie Brooks, IV to 10 years’ imprisonment; Monte Washington to 12 years and 11 months in federal prison; Isaias Ochoa to 7 years and 3 months in federal prison; Deonte Dallas to 5 years’ imprisonment, and David Ruvio, III to 3 years in federal prison. These individuals were sentenced for their respective roles in an international cocaine conspiracy that spanned from Mexico, McAllen and Mission, Texas, and into Ocala and Jacksonville, Florida.
According to court records and trial testimony, these drug trafficking groups were based in Guerrero and Tamaulipas, Mexico. From early 2007 until late 2011, they were responsible for importing several hundred kilograms of cocaine into the Ocala area. During the investigation, Jesus Lozano Alvarez and Rodrigo Cantu Morales were identified as working with a Mexican cocaine source of supply known as “El Nino” in Tamaulipas, Mexico. They shipped loads of cocaine via transport vehicles and couriers from south Texas to the Ocala area. When the loads of cocaine reached Ocala, Carlos Uriostegui-Nunez, Jesus Lozano Alvarez, Mario Ginorio, and Tavaries Norris worked together to redistribute the cocaine to other large scale dealers in the Middle District of Florida and South Carolina. The cocaine was re-sold to other kilogram level dealers, a portion of which was converted into crack cocaine and sold on the streets of Marion County.
As a result of this multi-year investigation, 55 individuals were indicted in the Ocala and Jacksonville Divisions of the Middle District of Florida. Forty-nine of the individuals were arrested and have pleaded guilty, or were convicted at trial. One individual is deceased, and five remain at-large. During this investigation, the United States seized $1.1 million in United States currency, more than $900,000 worth of real property, vehicles valued at more than $220,000, and 50 firearms.
These cases were investigated by the Drug Enforcement Administration’s Gainesville Resident Office and Jacksonville District Office. They are the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. The cases were prosecuted by Assistant United States Attorney A. Tysen Duva.
(Download Defendant Summary Sheet )
Detroit Man Sentenced for Wire Fraud and Identity Theft Fraudulent Tax Returns Filed for Deceased IndividualsRead the Press Release
A Detroit man was sentenced to prison for wire fraud and identity theft, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by IRS Criminal Investigation Acting Special Agent in Charge Carolyn Weber.
Willie Watkins, III, was sentenced to 30 months in prison to be followed by a three-year term of supervised release. The sentence was imposed by U.S. District Judge Avern Cohn. In addition, Judge Cohn ordered Watkins to pay restitution to the Internal Revenue Service of $410,949.
In October of 2013, Watkins pleaded guilty to one count of wire fraud and one count of use of false identification. According to court records, Watkins used the names and Social Security numbers of recently deceased individuals who had passed away between September 1 and November 30, 2010 throughout the United States. Watkins participated in the filing of several hundred fraudulent 2010 income tax returns of dead individuals. These income tax returns generated substantial claims for refunds that were deposited into different bank accounts which he controlled. Watkins disbursed the proceeds from the fraudulently obtained refunds.
"Watkins' actions are particularly reprehensible because he used the identities of the recently deceased. The stolen identities could have belonged to loved ones related to any one of us," said Carolyn Weber, Acting Special Agent in Charge for IRS Criminal Investigation. "The IRS has zero tolerance for this type of deplorable behavior."
The investigation of this case was conducted by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Ross MacKenzie and Department of Justice Tax Division Trial Attorney Ken Vert.Delaware Man Charged with Drug and Gun CrimesRead the Press Release
Keith Stroud, 34, of New Castle, Delaware, was charged today by indictment with possession of heroin with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of firearm, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of lifetime imprisonment, a five year period of supervised release, a $1 million fine, and a $300 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Delaware County Criminal Investigation Division, and the City of Chester Police Department. It is being prosecuted by Assistant United States Attorney Jeanine Linehan.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Dallas Tax Return Preparer Admits Preparing Fraudulent Tax ReturnsRead the Press Release
Defendant Was a Fugitive for Six Years
DALLAS — A Dallas-area tax return preparer who was indicted in 2007 on federal felony charges stemming from the operation of that business and who remained a fugitive until November 2013, pleaded guilty in federal court in Dallas today, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ousmane Sow pleaded guilty to one count of aiding and assisting in the preparation of a fraudulent tax return. He faces maximum statutory penalty of three years in federal prison, a $250,000 fine and restitution. A sentencing date was not set.
According to the factual resume filed in the case, from 2003 to 2005, Sow and co-defendant Tichafara Mpariwa provided tax preparation services through a business they jointly owned and operated under the name of DSL Tax Services, LLC., located on Forest Lane in Dallas. In 2004, Sow opened a second location of DSL on Airport Freeway in Irving, Texas. Both Sow and Mpariwa were the Electronic Return Originators at the Dallas and Irving office locations of DSL.
From 2003 to 2005, according to the factual resume, Sow knowingly prepared and caused to be filed U.S. individual tax returns, along with supporting schedules and forms, which contained materially false credits and deductions to fraudulently increase the taxpayer clients’ refunds. This included the use of false business expenses and the use of false education expenses to create a false education credit, thus increasing the taxpayer client’s refund.
Defendant Mpariwa remains a fugitive.
Internal Revenue Service – Criminal Investigation is leading the investigation. The U.S. Department of State’s Bureau of Diplomatic Security assisted in securing the return of Sow to the U.S. Assistant U.S. Attorney Chris Stokes is in charge of the prosecution.
Dallas Man Associated with Anonymous Hacking Group Pleads Guilty to Federal ChargesRead the Press Release
Pleas Resolve All Criminal Cases Pending Against Defendant
in Northern District of TexasDALLAS — Barrett Lancaster Brown, who has been associated with the hacking group, Anonymous, appeared in federal court this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to three separate offenses that essentially resolve all three criminal indictments pending against him in the Northern District of Texas (NDTX), announced U.S. Attorney Sarah R. Saldaña.
Plea negotiations between the United States Attorney’s Office in the NDTX and Brown resulted in filing of a plea agreement and factual resume on April 2, 2014. In the documents unsealed last week and in open court this morning, Brown, 32, of Dallas, admitted his guilt and waived his right to a speedy and public trial.
Pursuant to the plea agreement, Brown pleaded guilty this morning to the felony offense of transmitting a threat to an FBI Special Agent in interstate commerce, as charged in an indictment returned by a federal grand jury in Dallas in October 2012. He also pleaded guilty to both counts of a superseding information that was filed on March 31, 2014, charging the felony offense of being an accessory after the fact to the unauthorized access to a protected computer and with the misdemeanor offense of interfering with the execution of a search warrant and aiding and abetting another person’s interference with the execution of a search warrant. In court this morning, Brown assured the Magistrate Judge that he was pleading guilty because he was guilty, and not for any other reason.
Brown faces a maximum statutory penalty of 60 months in federal prison and a $250,000 fine on the threat conviction; 30 months in federal prison and a $125,000 fine on the accessory after the fact conviction; and 12 months in federal prison and a $100,000 fine on the interference with the execution of a search warrant conviction.
According to the stipulations set forth in the factual resume, Brown understands that in determining the appropriate sentence, the District Court may consider all the facts underlying and relevant to the offenses of conviction. The Court is not limited to those facts set out in Brown’s stipulated factual resume. Sentencing is set for August 18, 2014, before U.S. District Judge Sam A. Lindsay.
The Dallas office of the FBI investigated, and the U.S. Attorney’s Office in the NDTX prosecuted.
(Download Plea Agreement)
(Download Factual Resume)
Clarkston Man Pleads Guilty to Tax EvasionRead the Press Release
A 40-year-old Clarkston man pleaded guilty today to income tax evasion in connection with his 2008 federal income tax return, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Acting Special Agent in Charge Carolyn Weber, Internal Revenue Service, Criminal Investigation.
Bradley T. McKouen entered the guilty plea before U.S. District Judge Gershwin A. Drain.
The case was investigated by special agents of the Internal Revenue Service and is being prosecuted by Assistant U.S. Attorney Stephen Hiyama.
According to court records, during the 2008 tax year, McKouen was the president and sole member of Delta Staffing, LLC, an employee leasing company located in Clarkston. Delta was a Schedule C company, meaning its profits were to be reported on Schedule C as a part of McKouen’s personal federal income tax return. In 2008, Delta’s gross receipts were approximately $5.7 million. However, McKouen reported $0 gross receipts on his return. He also reported $0 business income, $0 taxable income, and $0 income tax. In 2008, McKouen’s actual taxable income was approximately $299,000 and his tax due was approximately $110,000. Under his plea agreement, McKouen is also being held responsible for filing similar false returns for the years 2004-2007. In all, he evaded $319,000 in federal income taxes for the years 2004-2008.
"Each of us is responsible for filing accurate tax returns," said Acting Special Agent in Charge Carolyn Weber. "IRS Criminal Investigation will pursue those who attempt to dodge their tax obligations."
The sentencing hearing was set by Judge Drain for September 4, 2014 at 2 p.m.. The maximum penalty for tax evasion is imprisonment of five years, a $250,000 fine, and an order of restitution.Certified Public Accountant Convicted of Preparing False ReturnsRead the Press Release
A federal jury convicted certified public accountant Jeffery Deshon Applewhite, aka Jeffrey Donald Mason, a resident of Los Angeles County, California, of 20 counts of aiding and assisting the preparation and presentation of false tax returns late yesterday, announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division, U.S. Attorney Melinda Haag for the Northern District of California and Internal Revenue Service (IRS)-Criminal Investigation Special Agent in Charge José M. Martinez. Applewhite was not convicted on five charges of identity fraud.
The evidence presented during the five day trial before U.S. District Court Judge Jeffrey S. White showed that Applewhite, who owned and operated tax preparation businesses in Los Angeles and Oakland, California, prepared false and fraudulent income tax returns for clients during the years 2006 through 2011 on which he fabricated deductible expenses, including gifts to charity, and other expenses. Applewhite also fraudulently included residential energy credits and education credits to which his clients were not entitled on tax returns he prepared. Applewhite prepared and filed false returns using the names Jeffery Deshon Applewhite and Jeffrey Donald Mason, and used the name and tax preparer identification number of another tax return preparer.
Applewhite’s sentencing hearing is scheduled for Aug. 5, 2014, before Judge White in Oakland. The maximum statutory penalty for each count of aiding and assisting the preparation of false tax returns is three years in prison and a fine of $250,000.
The case was investigated by Special Agents from IRS - Criminal Investigation . Assistant U.S. Attorney Cynthia Stier and Trial Attorney Sonia Owens of the Tax Division are prosecuting the case.
More information about the Tax Division and its enforcement efforts can be found at the division website
California Man Sentenced to Federal Prison for Racially Motivated Assault on White Man and African-American WomanRead the Press Release
Perry Sylvester Jackson, 28, of Marysville, Calif., was sentenced today by U.S. District Court Judge John A. Mendez to serve 70 months in prison for violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act in a 2011 racially motivated attack against a white man and an African-American woman in Marysville. Jackson, who previously pleaded guilty on Dec. 17, 2013, was also ordered to serve three years of supervised release following his prison sentence and to pay restitution in the amount of $175. Co-defendant Billy James Hammett, who also pleaded guilty, was sentenced on March 25, 2014, to serve 87 months in prison and three years of supervised release, as well as to pay $175 in restitution. Anthony Merrell Tyler, 33, also pleaded guilty and is awaiting sentencing.
According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, the three defendants attacked the man and woman based on race. After calling the male victim a “[racial slur]-lover,” Jackson, who has the words “white power” tattooed on his legs, punched him twice in the head through the open passenger window. At the same time, Hammett kicked the woman in the chest. A few seconds later, Tyler smashed the car’s windshield with a crowbar. As the attack continued, the woman managed to take refuge inside the convenience store. All three assailants then descended upon the male victim and began attacking him in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest. At the end of the incident, Tyler used a racial slur to refer to an African-American witness.
Tyler is scheduled to be sentenced on July 8, 2014, where he faces a statutory maximum sentence of 10 years in prison and a fine of up to $250,000.
This case was investigated by the FBI. The case is being prosecuted by U.S. Attorney Benjamin B. Wagner for the Eastern District of California and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.
Bonners Ferry Man Pleads Guilty to Lacey Act ViolationRead the Press Release
Admits Aiding and Abetting Unlawful Acquisition and Transportation of Three Mountain Lions
COEUR D’ALENE – Tod S. Navarro, 49, of Naples, Idaho, pleaded guilty yesterday in United States District Court to a superseding information charging him with one count of aiding and abetting the unlawful acquisition and transportation of a mountain lion, a misdemeanor, U.S. Attorney Wendy J. Olson announced. Navarro was initially indicted by a federal grand jury in Coeur d’Alene on July 16, 2013.
According to the plea agreement, Navarro admitted that on January 19 and 20, 2012, he aided and abetted the unlawful hunting and transporting of three Pumas concolors, more commonly known as mountain lions. Navarro admitted that he allowed his Idaho tag to be put on a mountain lion taken by a hunter from North Dakota, knowing that it was going to be transported to North Dakota.
The charge is punishable by up to one year in prison, a maximum fine of $100,000, and up to one year of supervised release, or a maximum term of five years’ probation. Navarro is set for sentencing on July 21, 2014, before United States District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The cases are being investigated by the U.S. Fish and Wildlife Service and Idaho Fish and Game.
Area Man Sentenced to Nine Years in Prison for Conspiracy to Illegally Traffic Firearms from Missouri to IllinoisRead the Press Release
CHICAGO — A former Crest Hill man was sentenced to more than nine years in federal prison for illegally trafficking and possessing five firearms that his sister illegally bought in Missouri and shipped to him in Illinois. The defendant, RICHARD CARRINO, a previously convicted felon who was barred from possessing guns, obliterated the serial numbers on at least three of the guns that he sold to an undercover ATF agent who was posing as a convicted felon and could not obtain guns on his own.
Carrino, 29, also known as “R.J.,” was sentenced to 110 months in prison by U.S. District Judge Rebecca Pallmeyer who imposed the sentence yesterday in Federal Court in Chicago.
“Carrino’s conduct reflects a complete lack of respect for the laws and rules of society, particularly with respect to keeping handguns out of the hands of felons,” Assistant U.S. Attorney Christopher McFadden argued at sentencing.
Carrino’s sister, ANGELA MARIE CARRINO, 25, of O’Fallon, Mo., is scheduled to be sentenced on May 23 after also pleading guilty in the case.
Both defendants pleaded guilty to conspiracy to deliver firearms to a person who did not live in the same state, to sell firearms to a convicted felon, and to make false statements in records kept by a federally licensed gun dealership, and Richard Carrino also pleaded guilty to being a felon-in-possession of firearms.
Both defendants admitted that they conspired between November 2012 and February 2013 to have Angela Marie Carrino make illegal “straw purchases” of firearms from licensed dealers in Missouri, and illegally transfer them to her brother, a convicted felon who lived in Illinois. They discussed types of guns to obtain and Richard Carrino sent his sister money to make the purchases. She falsely certified that she was the actual buyer of the firearms and then shipped at least five firearms from Missouri to her brother in Illinois. Richard Carrino, in turn, sold or transferred three of the firearms to an undercover agent, believing that the individual was a convicted felon.
Three of the firearms – two .45 caliber semi-automatic Hi-Point pistols and a 9- millimeter semi-automatic Hi-Point model C-9 handgun – were obtained by ATF agents during the investigation.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Carl Vasilko, Special Agent-in-Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Chicago.
Apopka Man Sentenced to 30 Years in Prison for Armed Bank RobberyRead the Press Release
Orlando, FL – Senior United States District Judge Gregory A. Presnell yesterday sentenced Dale Matthews Clar (47, Apopka) to 30 years and one month in federal prison for two counts of bank robbery with assault, and two counts of using and carrying a firearm during and in relation to a crime of violence. The court also ordered Clar to serve a two-year term of supervision, following his prison sentence, and to forfeit a 9mm Glock pistol and 17 rounds of ammunition, which were used in the commission of the crimes.
A federal jury found Clar guilty on February 6, 2014.
According to testimony and evidence presented at trial, on January 4, 2013, April 3, 2013, and September 6, 2013, Clar robbed the Chase Bank in Apopka, at gunpoint. He stole a total of approximately $18,000 in the three robberies. During each robbery, Clar rushed into the bank wearing a full ski mask. He pointed his gun at bank employees and customers, demanding cash from the tellers. When Clar fled the bank, he covered his license plate to avoid being caught.
On September 6, 2013, Clar covered his license plate with a temporary registration tag associated with his car. He also attempted to further avoid suspicion by placing a Domino’s Pizza delivery sign on the top of his car. Police located Clar and arrested him near his home. A subsequent search of Clar’s car revealed Clar’s disguise, a Glock 9mm handgun, and thousands of dollars in cash that he had just stolen from the bank.
This case was investigated by the Federal Bureau of Investigation and the Apopka Police Department. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.
Ambassadors for Justice: Celebrating Good Kids - A Column by U.S. Attorney Booth GoodwinRead the Press Release
Ambassadors for Justice: Celebrating Good Kids
By
Booth Goodwin
United States Attorney, Southern District of West VirginiaTeenagers today face a mountain of challenges and temptations, as those of us with kids and grandkids are painfully aware. We live in a world that is much more complicated than it was just a generation ago. Back then, parents and teachers worried mainly about drinking and cutting class. Today, we face an epidemic of prescription drugs—powerful narcotics that many students mistakenly believe are safe because they come from a pharmacy. In reality, these drugs are just as deadly as street drugs, like heroin, if not taken as prescribed. Other problems, like bullying, are also growing worse: far too often these days, we see incidents of bullying and harassment boil over into tragedies in our schools. Simply put, being a good kid is getting harder and harder.
We make it a point to celebrate athletic achievement and academic achievement—and we should. But too often, we fail to celebrate students who are just plain good kids. That’s why, three years ago, my office started a program called Ambassadors for Justice. I got in touch with all the high school principals in my district and asked them to designate juniors from their schools as Ambassadors for Justice. The title Ambassador for Justice recognizes a student’s devotion to justice, citizenship and serving others—to being a good kid and a good influence on those around them.
There is no requirement that the student chosen be the class president or the most popular (although they certainly can be). Rather, I asked principals to identify students with outstanding character and strong ethical compasses; students who are respected by their peers; students who will speak up if a classmate makes a self-destructive choice or bullies someone else. Being recognized as an Ambassador for Justice is not just an award or certificate. The program’s goal is to encourage students to stay the course and keep contributing to their schools and communities by doing the right thing every day—even when no one else is watching.
Every year, a new group of Ambassadors for Justice is recognized in a ceremony held in Charleston. After the ceremony, the Ambassadors are brought together to talk about the hurdles facing teenagers in today’s world, and to share ideas about how to overcome them. The first group of Ambassadors comprised 40 students from all around southern West Virginia, and the second group grew to 57. This year, I was honored to collaborate with my friend, Bill Ihlenfeld, the United States Attorney in the Northern District of West Virginia. Together, Bill and I honored 88 Ambassadors for Justice chosen from the entire State of West Virginia. To see this year’s class of Ambassadors, along with individual pictures of those who were able to attend the March 12, 2014 ceremony in Charleston, you can visit http://www.justice.gov/usao/wvs/AforJ.html.
Every time I meet with these remarkable young people, I come away inspired. It’s easy to be cynical about teenagers, but these students bring the Golden Rule to life. They look out for classmates who are having trouble, whatever it may be, and they stand up for those who can’t defend themselves. They are bright, thoughtful, and committed to improving their schools, their state, and their country. I’m honored to be able to support them, and I hope this program will remind others of the importance of building character in our kids. It doesn’t take much to get involved: Just keep an eye out for young people like these Ambassadors for Justice, who do the right thing even when it’s hard, and let them know you’ve noticed their good deeds. Remind your kids and grandkids that we should always do unto others as we would have them do unto us. Together, we can do much more than you think to keep old-fashioned values alive and well in our schools and our communities.
Alleged “Anonymous” Computer Hacker Charged with 18 Counts of CyberstalkingRead the Press Release
McALLEN, Texas - A federal grand jury has returned a second superseding indictment against Fidel Salinas, 27, of Donna, adding additional attempted computer-hacking charges and 18 counts of cyberstalking, announced U.S. Attorney Kenneth Magidson.
According to the criminal complaint originally filed in the case, Salinas is allegedly linked to the computer-hacking group Anonymous. With the return of the second superseding indictment today, he now faces 44 charges arising out of his alleged attempts in 2011-2012 to hack into the computers of Hidalgo County, La Joya Independent School District and the McAllen Monitor newspaper, as well as a female victim, whom he allegedly cyberstalked at least 18 times in the days surrounding Christmas 2011.
According to the allegations, between Dec. 23-29, 2011, Salinas had the intent to harass and intimidate a female victim. Allegedly, he repeatedly e-mailed her, attempted to gain unauthorized access to her website, made submissions through a contact form on that site and tried to open user accounts without her consent.
The indictment lists his alleged attempts to stalk her and hack into her website. According to the indictment, he repeatedly did so late at night and early in the morning, with his stalking attempts or messages sometimes occurring less than one minute apart from each other. He allegedly did so as part of a conspiracy or agreement with at least one other person, according to the charges.
Salinas also remains charged with attempting to hack into and damage computer servers belonging to Hidalgo County, the La Joya School District and The Monitor over the course of five days in 2011-2012 and causing thousands of dollars in loss as a result. Court documents allege that between the late night and early morning of Jan. 4-5, 2012, Salinas made more than 14,000 hacking attempts to the administration management page of the Hidalgo County website server, resulting in true administrators temporarily not being able to access it. The county allegedly incurred a loss of more than $10,000 in responding to the attack.
He believed the web server contained voter registration information, Social Security numbers, personal identifiers and human resource and payroll information on county employees, according to the charges.
The superseding indictment charges Salinas with conspiring with others to attempt to hack into and damage these sites and links him to the computer-hacking group Anonymous.
Salinas allegedly participated in an online chat room for the Operation Anti-Security faction of Anonymous and attempted to enter the IRC Operations server for Anonymous. According to the charges, after his alleged attempt to hack his way into the Hidalgo County web server, he posted a profanity-laced rant on his Facebook page that ended with a quote used by Anonymous members: “We do not forgive, we do not forget, divide by zero we fall, EXPECT US!”
Salinas faces up to 10 years in federal prison on each of the charges, upon conviction.
The FBI is investigating with the assistance of the Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Christopher Sully is prosecuting the case.
A complaint or indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Alabama Man Sentenced to Prison for Million Dollar Scheme Using Prisoner Identities to Obtain False Tax RefundsRead the Press Release
Harvey James was sentenced today to serve 110 months in prison for his role in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. James previously pleaded guilty to one count of mail fraud and one count of aggravated identity theft on Oct. 25, 2013. James was also ordered to serve three years of supervised release and to pay $618,042 in restitution.
Between January 2010 and 2012, James and his sister, Jacqueline Slaton, obtained stolen identities from various individuals, including one person who had access to inmate information from the Alabama Department of Corrections. James and others used those inmate names to file federal and state tax returns that claimed fraudulent refunds. James directed some of the false refunds to prepaid debit cards, and directed others to be issued in the form of a Treasury check. Vernon Harrison, a U.S. Postal Service employee, provided James with addresses from his postal route, which were used as mailing addresses for the fraudulent prepaid debit cards and state tax refund checks. Harrison collected the debit cards and checks and provided them to another individual, who in turn gave them to James and Slaton. In total, James filed over 1,000 federal and state income tax returns that claimed over $1 million in fraudulent tax refunds. Slaton was sentenced to serve 70 months in jail, and Harrison was sentenced to serve 111 months in jail.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Al-Qaeda in the Arabian Peninsula Operative Pleads Guilty in Brooklyn Federal CourtRead the Press Release
Earlier today, Lawal Olaniyi Babafemi, a Nigerian citizen, pleaded guilty to conspiring to provide and providing material support to a designated foreign terrorist organization, al-Qaeda in the Arabian Peninsula (“AQAP”). Today’s plea took place before United States District Judge John Gleeson. At sentencing, Babafemi faces a maximum of 30 years in prison.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and John P. Carlin, Assistant Attorney General for National Security.
“The defendant traveled to Yemen to put himself at the disposal of a violent terrorist organization that has repeatedly demonstrated its determination to inflict bodily and economic harm on the United States and its citizens,” stated United States Attorney Lynch. “After meeting and training the defendant, senior leaders of al Qaeda in the Arabian Peninsula dispatched him back to Nigeria with instructions and funding to recruit others to join the terrorist group. The defendant’s guilty plea to terrorism charges is a testament to the tireless work of the FBI’s Joint Terrorism Task Forces in New York and San Diego in gathering evidence around the world in order to bring the defendant to justice.” Ms. Lynch also expressed her grateful appreciation to the government of Nigeria for its assistance and cooperation in this extradition.
According to previous court filings, between approximately January 2010 and August 2011, the defendant traveled twice from Nigeria to Yemen to meet and train with leaders of AQAP, the Yemen-based branch of al-Qaeda. Babafemi assisted in AQAP’s English-language media operations, which include the publication of the magazine “Inspire.” At the direction of the now-deceased senior AQAP commander Anwar al-Aulaqi, Babafemi was provided by AQAP leadership with the equivalent of almost $9,000 in cash to recruit other English-speakers from Nigeria to join that group. While in Yemen, Babafemi also received weapons training from AQAP.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad and Hilary Jager, with assistance from Trial Attorneys William M. Narus and Annamartine Salick of the Justice Department’s Counterterrorism Section, as well as from the Justice Department’s Office of International Affairs.
The Defendant:
LAWAL OLANIYI BABAFEMI
Age: 33
41 Individuals Indicted for Drug Trafficking in the Municipality of San JuanRead the Press Release
SAN JUAN, PR – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 41 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances. Today, ICE-HSI agents and officers of the Puerto Rico Police Department (PRPD), the agencies in charge of the investigation, executed the arrest warrants with assistance from ATF, FBI, CBP, San Juan Municipal Police and the Puerto Rico Department Housing.
The indictment, handed down April 22, 2014 by a federal grand jury and unsealed in federal court today, charges 41 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), cocaine, and marihuana, all within 1,000 feet of the real property comprising the Nemesio R. Canales Public Housing Project, all for significant financial gain and profit.
The indictment alleges that beginning in 2007, the organization established drug distribution points at the area known as “El Medio” which constitutes the basketball court, and the areas surrounding the gym, and the Administration Office. Other areas of drug distribution also include the areas between buildings 4, 5, 32, 33, 50, 51, 60, and 61 of the housing project. Some of the defendants would routinely possess, carry, brandish and use firearms to protect themselves and the drug trafficking organization from rival gangs.As part of the manner and means of the conspiracy, some of the defendants and their co-conspirators would have access to different vehicles in order to transport money, narcotics and firearms. Also, these vehicles would often be used by some of the defendants and their co-conspirators to conduct drive by shootings and to go out and “hunt” rival gang members. Some of these vehicles were altered with hidden compartments to conceal drugs and firearms.
The 41 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: nine leaders/drug point owners/drug point administrators; one supplier; two enforcers; five runners; 18 sellers; and six facilitators. Thirty-one of the defendants are facing one count of using and carrying firearms during and in relation to a drug trafficking crime.
“This investigation and five-count indictment represent a top-to-bottom dismantling of a violent criminal organization intent on polluting our neighborhoods with drugs,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The criminal activity laid out in this indictment shows the lengths people will go to sell drugs, but it should also underscore our commitment to fighting back. Federal and local law enforcement agencies remain committed to work tirelessly to target and eliminate the most significant threats to our communities.”
Special Assistant U.S. Attorney María L. Montañez-Concepción is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Monday 28 April 2014
Woman Sentenced to 10 Years in Salina Drug Trafficking CaseRead the Press Release
TOPEKA, KAN. – A woman was sentenced Monday to 10 years in federal prison in a federal drug trafficking case from Salina, U.S. Attorney Barry Grissom said.
Abigail Torres Soto, 23, pleaded guilty to one count of conspiracy to distribute methamphetamine, three counts of distributing methamphetamine and one count of possession with intent to distribute methamphetamine. In April 2013, Soto was indicted along with co-defendants Jon Reed Woodbridge, 23, and Delaine Rae Romeo, 48, Salina, Kan. The indictment alleged that beginning in January 2013 the defendants conspired to distribute methamphetamine in Saline County, Kan.
In June 2013, Romeo pleaded guilty to one count of conspiracy to distribute methamphetamine. In her plea, she admitted that on Feb. 7, 2013, agents with the drug task force based in Salina executed a search warrant at the Koyotee lounge in Salina and seized more than $6,000 in cash, marijuana, methamphetamine and other drug paraphernalia. Agents had made three controlled buys of methamphetamine from the Koyotee lounge. Romeo admitted that she had been receiving methamphetamine from Soto to sell.
Co-defendants include:
Jon Reed Woodbridge, who was sentenced to 21 months in federal prison.
Delaine Rae Romeo, who was sentenced to 41 months.Grissom commended the 1-70/I-35 Drug Task Force, the Salina Police Department and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Wichita Man Pleads Guilty to Bank RobberyRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty Monday to robbing a local bank, U.S. Attorney Barry Grissom said.
John Lee Cline, 49, Halstead, Kan., pleaded guilty to one count of bank robbery. At the hearing, prosecutors told the judge that on Jan. 21, 2014, Cline robbed the Intrust Bank located in the Dillon’s store at 3932 West 13th in Wichita. He handed the teller a note that read: “All of the $ out of your drawr (sic), no questions asked no dye paks (sic) everyone will be fine!!! No alarms!” He left the bank in a maroon, four-door car.
He was arrested several days later after he was identified from bank surveillance photos.
Sentencing is set for July 14. He faces a maximum penalty of 30 years in federal prison and a fine up to $250,000. Grissom commended the FBI, the Harvey County Sheriff’s Office and Assistant U.S. Attorney David Lind for their work on the case.Vale Man Charged with Unlawful Taking of Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Vale, South Dakota, man has been charged with a federal offense of Unlawful Taking of Migratory Birds and Lacey Act Violations by an Information filed on April 11, 2014.
Glen V. Schummer, age 68, appeared before U.S. Magistrate Judge Veronica L. Duffy on April 22, 2014, and pled not guilty to the charge.
The maximum penalty upon conviction is one year of imprisonment and/or a $100,000 fine, one year of supervised release and an additional year of supervised release upon revocation, and up to a $35 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Information alleges that Schummer, between February 13, 2013, and February 13, 2014, knowingly hunted, killed, transported, received and acquired wildlife, specifically hawks and owls, when Schummer knew the protected birds were taken, possessed, and transported in a manner unlawful under the law and regulations of the United States.
The charges are merely accusations and Schummer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish and Wildlife Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Schummer was released on bond pending trial, which has been set for July 1, 2014.
US Marshals Arrest Fugitive in FairfieldRead the Press Release
SACRAMENTO, Calif. — U.S. Marshals arrested a woman who has been a fugitive since she missed her sentencing date in October 2011, United States Attorney Benjamin B. Wagner and United States Marshal Albert Nàjera announced.
Niesha Nicole Jackson, 34, was featured on CNBC’s program “American Greed: The Fugitives” and labeled as the “Bank Robbing Babe. After receiving information that Jackson was in Fairfield, the Pacific Southwest Regional Fugitive Task Force, composed of U.S. Marshals and state and local agencies, set up surveillance and arrested her at a hotel. When she was arrested, she had in her possession a T-shirt with “BR Babe” printed on it.
According to court documents, Jackson was part of a bank fraud scheme that netted between one to two million dollars in losses to 37 banks in 2007 and 2008. The organizers, operating from California, sent runners to Alabama, Arizona, Illinois, Indiana, Montana, New Mexico, Ohio, Oklahoma, and Texas to use “pre-paid” credit cards at banks for cash advances. Although the cards only had small amounts of money available, the runners would tell the bank tellers to call a toll-free number that was controlled by Jackson or another co-conspirator. Jackson, posing as a card services representative, would mislead the bank employee into believing that there were thousands of dollars available on the card, and then would instruct the teller what buttons to press on the card terminal in order to make the transaction go through. After receiving the cash, the runner would keep a portion and the rest of the fraudulently obtained funds would go to the organizers in the Sacramento area.
On July 30, 2009, a federal jury indicted Jackson, charging her with one count of conspiracy to commit bank fraud and one count of bank fraud. She pleaded guilty in March 2010, but then failed to appear at her sentencing and a warrant was issued for her arrest. She is scheduled to appear in Sacramento today at 2:00 p.m. before U.S. Magistrate Judge Carolyn K. Delaney.
This case is the product of an investigation by the U.S. Secret Service with assistance from police and sheriff’s departments in several states. Seven defendants have been sentenced in the conspiracy. Assistant United States Attorney Matthew D. Segal is prosecuting the case.
U.S. Attorney Barry Grissom to Speak to NAACP at Hutchinson Community CollegeRead the Press Release
THUTCHINSON, KAN. U.S. Attorney Barry Grissom will speak at the NAACP’s Law Day event on Thursday, May 1, at Hutchinson Community College.
Grissom’s speech will be titled, “Law Enforcement, Equal Justice and Equal Opportunity.” The presentation will begin at 6:45 p.m. on May 1 in the Shears Technology Center on the Hutchinson Community College campus.
Grissom was appointed by President Barack Obama and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.
U.S. Attorney Barry Grissom to Speak to Bar Association in El DoradoRead the Press Release
EL DORADO, KAN. U.S. Attorney Barry Grissom will speak to the Butler County Bar Association on Friday, May 2, at Butler Community College.
Grissom’s speech will be titled, “Law Enforcement, Equal Justice and Equal Opportunity.” The presentation will begin at noon at the Hubbard Welcome Center, Building 2000, 901 S. Haverhill in El Dorado on the Butler Community College Campus.
Grissom was appointed by President Barack Obama and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.Two University of Houston Professors IndictedRead the Press Release
HOUSTON – Two professors at the University of Houston have been charged with making false statements and wire fraud in connection obtaining federal funds for research grants, announced United States Attorney Kenneth Magidson.
Abdelhak Bensaoula, Ph.D., 57, and David Starikov, Ph.D, 58, both of Houston, surrendered to federal authorities this morning. They are expected to make their initial appearances before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m.
The 29-count indictment, returned April 24, 2014, alleges one count of conspiracy, seven counts of making false statements and 21 counts of wire fraud, all in connection with the Small Business Innovation Research (SBIR) program.
According to the indictment, both defendants are professors in the Physics Department at the University of Houston and are affiliated with The Nitride Group. They allegedly started a small business known as Integrated Micro Sensors Inc. (IMS) which applied for and received SBIR grants or contracts from NASA, National Science Foundation, Department of Energy and the United States Air Force.
The indictment further alleges Bensaoula and Starikov made false statements in the application and proposal process and in filing electronic claims for payment after they were awarded grants or contracts. On behalf of IMS, they both allegedly used false and fraudulent letters of support and made false representations with regards to facilities, equipment and materials. Additionally, the indictment alleges the defendants stated in proposals that IMS would pay a required subcontract fee to the University of Houston, which it failed to pay on four of five contracts. Bensaoula and Starikov, through IMS, also allegedly applied for and received at least 25 SBIR grants between 2000 and 2013. From 2008 through 2013, the defendants and IMS allegedly received at least five SBIR contracts for approximately $1.3 million.
The defendants allegedly attempted to hide their scheme from detection from the government and university officials.
If convicted of the conspiracy, both face up to a five-year prison term as well as another five years upon each conviction of making false statements. For the wire fraud charges, the defendants face up to 20 years for each conviction. All charges also carry as possible punishment a $250,000 fine.
The investigation of this case has been conducted by the NASA - Office of Inspector General, National Science Foundation, U.S. Department of Energy, U.S. Air Force, Defense Criminal Investigative Service and the Defense Contract Audit Agency with the assistance and cooperation of the University of Houston. Assistant United States Attorney Cedric L. Joubert is prosecuting.
Topeka Man Sentenced for Making Pipe BombRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced Monday to a year and a day for making a bomb, U.S. Attorney Barry Grissom said.
Joseph E. Rogers, 36, Topeka, Kan., pleaded guilty to one count of making a destructive device. In his plea, he admitted that on Nov. 12, 2012, officers of the Topeka Police Department stopped him and co-defendant Kyle C. Roe. Roe was immediately taken into custody on an active felony warrant. Roe told police that he had a bomb in his pocket.
When Rogers was interviewed, he told investigators that he had constructed explosive devices for the entertainment value. Rogers talked about using PVC pipe, wrapped in tape and filled with smokeless powder removed from ammunition.
Co-defendant Kyle C. Roe was sentenced to 33 months in federal prison.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Topeka Police Department and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Title Company Manager Sentenced to over 4 Years in Prison for $4.8 Million Mortgage Fraud SchemeRead the Press Release
Five Co-Conspirators Previously Pleaded Guilty
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 49, of Riva, Maryland, on April 25, 2014, to 51 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud in connection with a mortgage fraud scheme which resulted in losses of over $4.8 million. Judge Bredar also ordered Kreamer to pay restitution of $2,499,048 to the victims and to forfeit $4.8 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Brian Murphy of the United States Secret Service Baltimore Field Office; Special Agent in Charge Michael P. Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.
According to her plea agreement, in 2002, Kreamer’s Maryland license to issue title insurance policies was revoked after she was convicted of theft for fraudulently endorsing checks at a title attorney’s office where she worked. Despite her conviction, from 2007 until January 2010, Kreamer worked at Sanford Title Services LLC located in Columbia, Maryland, and had significant day-to-day responsibility for the operation of Sanford Title. From June 2008 to January 2010, Kreamer and co-conspirators Niesha Williams, Rhonda Scott, Emeka Udeze and Demetrius Peete arranged various aspects of real estate transactions so they could siphon profits out of the transaction for themselves. They used many fraudulent techniques to further the conspiracy, including: short sales in which the property was sold for a higher price than was represented to the lien holder and the seller; sales of properties not owned by the seller at the time of settlement; real estate transactions in which there were multiple sales of the same property at the same time; real estate transactions in which the buyer’s financial status was misrepresented to lenders; transactions in which the seller and/or buyer were shown different settlement statements and the conspirators used the difference between the figures in the two statements to enrich themselves.
In addition, Kreamer admitted that she personally facilitated deals between her co-conspirators, prepared false settlement statements, improperly disbursed funds contrary to the settlement and lender approved disbursements sheets, failed to pay off mortgage loans in accordance with the settlement documents, directed funds to entities created by herself and her co-conspirators, received proceeds of fraudulent transactions, and improperly issued title insurance policies.
Kreamer admitted that the scheme involved at least 30 victims, including lenders, sellers and buyers of real estate, a title insurance company and lien holders. She further agreed that her offense involved sophisticated means and her abuse of a position of trust at Sanford Title. The reasonably foreseeable loss associated with Kreamer’s conduct is at least $4.8 million.
Niesha Williams, age 34, of Fort Washington, Maryland; Rhonda Scott, age 52, of Oxon Hill, Maryland; Demetrius Peete, age 46, of Manassas, Virginia each previously pleaded guilty to their roles in the fraud and are scheduled to be sentenced on May 1, May 2, and May 7, respectively. Gregory Green, age 49, of Waldorf, Maryland, also pleaded guilty and was sentenced to three months in prison and ordered to pay restitution of $404,596. A fifth conspirator, Emeka Udeze, age 38, of Bowie, Maryland, also pleaded guilty and is awaiting sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI, Department of Justice - OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Judson T. Mihok, who are prosecuting the case.
Three Leaders of Citytime Fraud Scheme Each Sentenced in Manhattan Federal Court to 20 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the leaders of the fraud, kickback, and money laundering scheme targeting the City of New York’s (the “City’s”) CityTime information technology project, were sentenced today in Manhattan federal court and ordered to forfeit millions of dollars in cash and property. MARK MAZER, who managed the CityTime project for the City and who was convicted of defrauding the City, receiving kickbacks while managing the project for the City, and laundering the proceeds of his crimes, was sentenced to 20 years in prison. GERARD DENAULT, who managed the project on behalf of the prime contractor on the project, Science Applications International Corporation (“SAIC”), and who was convicted of defrauding the City, defrauding SAIC of its right to DENAULT’s honest services, and laundering the proceeds of his crimes, was sentenced to 20 years in prison. DIMITRY ARONSHTEIN, who managed a subcontractor on the project and who was convicted of paying kickbacks to MAZER and working with MAZER to launder crime proceeds, was sentenced to 20 years in prison. MAZER, DENAULT, and ARONSHTEIN were sentenced today by U.S. District Judge George B. Daniels, who also presided over the defendants’ six-week jury trial in the fall of 2013. Judge Daniels also ordered that the defendants forfeit over $40 million in cash and property tied to their crimes.
Manhattan U.S. Attorney Preet Bharara said: “Today’s sentences punctuate an epic scheme by Mark Mazer, Gerard Denault, Dimitry Aronshtein, and others to steal millions of dollars through kickbacks and fraud from the City of New York, and then squirrel away the proceeds. These defendants are being justly punished – through lengthy sentences and forfeiture of over $40 million in cash and property – for orchestrating one of the largest and most brazen frauds ever committed against the City. This Office’s CityTime prosecutions have held accountable culpable individuals, as well as SAIC, the contractor at the center of the scheme, and through penalties and restitution of over $550 million, has made the City economically whole.”
According to the evidence introduced at trial, public filings, and statements made in court:
The CityTime project was a City initiative to modernize its timekeeping and payroll systems across City agencies. In 2000, SAIC became the lead contractor on CityTime, which at the time had a contract value of approximately $73 million. In 2003, SAIC appointed DENAULT as Program Manager on CityTime. DENAULT later became a Vice President of SAIC and head of SAIC’s New York office. SAIC, at the behest of DENAULT, hired Technodyne LLC (“Technodyne”) as a “single source” subcontractor to provide staffing services on the CityTime project, and repeatedly renewed Technodyne’s “single source” arrangement on the project.
Technodyne’s principals, Reddy Allen and Padma Allen, agreed to pay kickbacks to DENAULT and others in connection with the CityTime project, in exchange for obtaining what ultimately became over $325 million in work on CityTime as an SAIC subcontractor. In 2004, MAZER began managing the CityTime project for the City. Soon thereafter, he arranged with DENAULT for a company controlled by ARONSHTEIN, who is MAZER’s uncle, to become a subcontractor to Technodyne. MAZER used his power on the project to steer over $65 million in business to ARONSHTEIN’s company, and another $23 million in business to a company controlled by Victor Natanzon. In exchange for the business, ARONSHTEIN and Natanzon paid MAZER over $30 million in kickbacks, representing 80% of their net profits on the project. DENAULT received a $5 kickback from Reddy Allen and Padma Allen for every hour Technodyne billed to the City for labor. He also received an additional $2 per hour billed by ARONSHTEIN and Natanzon, resulting in total kickbacks to DENAULT of over $9 million.
Further, in order to maximize the amount of kickbacks they received, DENAULT and MAZER worked together to defraud the City into overpaying for the CityTime project by, among other things, inflating the rates charged for CityTime labor sourced through Technodyne, and overstaffing the project. MAZER also submitted fraudulent timesheets for consultants who had been fired or were on vacation. In part as a result of the fraud and kickback schemes, the costs of the CityTime project ballooned to over $620 million by the time the defendants were arrested in December 2010.
MAZER, DENAULT, and ARONSHTEIN also devised and carried out elaborate schemes to launder the proceeds of their crimes. DENAULT arranged for the kickbacks to be laundered through companies controlled by Padma Allen’s mother in India before being deposited into a shell entity account in the United States that he controlled. MAZER devised a scheme whereby ARONSHTEIN and Natanzon would launder money through shell company bank accounts controlled by Larisa Medzon, Anna Makovetskaya, and Svetlana Mazer. ARONSHTEIN also laundered millions of dollars through wire transfers to shell entity bank accounts located abroad and through other entities that he himself controlled.
In addition to the prison terms, MAZER, 50, of Manhasset, New York, ARONSHTEIN, 53, of Oceanside, New York, and DENAULT, 52, of Danbury, Connecticut, were each sentenced to three years of supervised release. The defendants were also ordered to forfeit $40 million.
These sentences follow a number of earlier developments in the case, including the guilty pleas of co-defendants Medzon, Makovetskaya, Svetlana Mazer, Carl Bell, and Natanzon; SAIC’s entry into a deferred prosecution agreement (“DPA”) in which it agreed to forfeit over $500 million to the United States; forfeiture of over $10 million in cash and property belonging to fugitive defendants Reddy Allen and Padma Allen; and payment of record restitution to the City of over $466 million, which, along with cancellation of $40 million in debt owed to SAIC, brings the total amount recovered for the City’s taxpayers as a result of the investigation and prosecution to over $500 million. The charges contained in the Indictment against Reddy and Padma Allen are merely accusations and they are presumed innocent unless and until proven guilty.
The sentencings of Medzon, Makovetskaya, and Svetlana Mazer are scheduled to take place before Judge Daniels on June 24, 2014 at 10:00 a.m. The sentencings of Natanzon and Bell have not yet been scheduled.
Mr. Bharara thanked and praised the New York City Department of Investigation (“DOI”) for its outstanding work on the case.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Howard S. Master and Andrew D. Goldstein are in charge of the investigation.
Tate and Merritt Indictment Sex Trafficking ChargesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a Federal Grand Jury returned an indictment last week against JEREMIE J. TATE, of Zachary, Louisiana, and ROXANNE R. MERRITT, of Greenwell Springs, Louisiana, on sex trafficking charges, including conspiring to use interstate facilities in aid of racketeering, in violation of Title 18, United States Code, Section 371, using interstate facilities in aid of racketeering, in violation of Title 18, United States Code, Section 1952, and enticing another to travel interstate for prostitution, in violation of Title 18, United States Code, Section 2422(a).
TATE and MERRITT are both in custody. TATE was apprehended last Friday night by the U.S. Marshal’s Fugitive Task Force and the Federal Bureau of Investigation in Houston, Texas. TATE is expected to have an initial appearance today in the Southern District of Texas before being transferred to the Middle District of Louisiana for prosecution.
The indictment alleges that, from in or about November 2012 through in or about November 2013, TATE and MERRITT conspired together and with others to use interstate facilities, such as telephones and the internet, to promote and manage TATE’s prostitution business which involved multiple prostitutes, including a minor female. The indictment alleges further that TATE enticed a prostitute who worked for him to travel from Baton Rouge to Las Vegas to engage in prostitution. As part of his prostitution business, TATE allegedly used intimidation and manipulation to ensure that he received most of the proceeds earned by his prostitutes.
If convicted, TATE faces up to 50 years imprisonment, a $1,250,000 fine, forfeiture of the proceeds from his crimes and facilitating property, restitution, and up to 5 years of supervised release following a term of imprisonment. If convicted, MERRITT faces up to 15 years imprisonment, a $750,000 fine, restitution, and up to 3 years of supervised release following a term of imprisonment. TATE and MERRITT are currently in federal custody following their arrest.
U.S. Attorney Green stated: “Sex trafficking is one of the highest priorities of this office and the entire U.S. Department of Justice. We will continue to aggressively pursue such matters, along with our dedicated federal, state, and local partners and the Human Trafficking Task Force for the Middle District of Louisiana.”
This investigation is being conducted by the United States Attorney’s Office, the Federal Bureau of Investigation, Louisiana Attorney General’s Office, and the Louisiana State Police, with assistance from the East Baton Rouge Sherriff’s Office, Baton Rouge Police Department – Narcotics, the U.S. Marshal’s Office and other law enforcement agencies. The matter is being prosecuted by Assistant United States Attorney Reginald E. Jones.
NOTE: An Indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Springfield Man Sentenced for Child Exploitation OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Daniel Gay, 42, of Burlington, Vermont, was sentenced on April 28, 2014, in United States District Court in Burlington, Vermont, to serve eighteen (18) months imprisonment following his guilty plea to one count of possession of child pornography. United States District Judge William K. Sessions III also ordered the defendant to serve a five-year term of supervised release and to pay a $100 special assessment.
According to court records, law enforcement was conducting undercover operations on a file-sharing network, and discovered a computer later identified as belonging to Gay was offering to share image files depicting child pornography. Law enforcement seized Gay’s computer and other digital media pursuant to a search warrant on June 28, 2013, and discovered thousands of images and videos depicting child pornography.
United States Attorney Coffin commended the work of the Vermont Attorney General’s Office and the Vermont Internet Crimes Against Children Task Force. Gay was represented by Steven L. Barth of the Federal Public Defender’s Office. The case was prosecuted by Assistant United States Attorney Barbara A. Masterson.
United States Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices and the Internet Crimes Against Children Task Force, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Salina Man Sentenced on Federal Gun ChargeRead the Press Release
TOPEKA, KAN. A Salina man was sentenced Monday to 37 months in federal prison on a federal firearms charge, U.S. Attorney Barry Grissom said.
Kalun James Purucker, 22, Salina, Kan., pleaded guilty to one count of unlawful possession of a firearm. In his plea, he admitted that the Salina Police Department stopped a car in which he was a passenger on April 9, 2012. Police recovered a .380 caliber handgun and ammunition. At the time, Purucker was prohibited by federal law from possessing a firearm because of a prior felony conviction.
Grissom commended the Salina Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Sacramento Real Estate Professional Pleads Guilty to Mortgage FraudRead the Press Release
SACRAMENTO, Calif. — Licensed real estate agent Manuel Herrera, 34, of Sacramento, pleaded guilty today to conspiring to commit wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents, Herrera served as a loan officer and later a branch manager at Delta Homes and Lending Inc., a real estate and mortgage lending company. Between October 2004 and May 2007, Herrera and his co-defendants conspired to obtain home loans from mortgage lenders based upon false and fraudulent loan applications and supporting documents that falsely represented the borrowers’ assets and income, liabilities and debts, employment status, and citizenship status. As part of the scheme, the defendants, including Herrera, provided money to borrowers in order to fraudulently inflate the borrowers’ assets and bank account balances. Once the defendants had secured the loans, the borrowers returned the money the defendants had provided for the scheme. The aggregate sales price of the homes involved in the conspiracy was in excess of $10 million. As a result of the defendants’ actions, mortgage lenders and others suffered losses of at least $4 million.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Lee S. Bickley is prosecuting the case.
Herrera’s co-defendants, including Moctezuma Tovar, Ruben Rodriguez, and Jaime Mayorga, all licensed real estate agents residing in Sacramento; Sandra Hermosillo, of Woodland, formerly a loan officer; and Christian Parada Renteria, of Sacramento, formerly a loan officer have a trial date of April 21, 2015. Herrera’s co-defendant Jun Michael Dirain pleaded guilty on February 3, 2014, and is currently scheduled to be sentenced on July 7, 2014.
Herrera is scheduled for a status conference concerning sentencing in front of Judge William B. Shubb on July 7, 2014. Herrera faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rosebud Man Charged with Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Appear.
Chauncy Crow Dog, age 20, was indicted on April 22, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 25, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 24, 2014, Crow Dog, having been charged with the offenses of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury, did knowingly fail to appear for a pretrial conference on March 24 and a jury trial on March 25.
The charge is merely an accusation and Crow Dog is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service, the Federal Bureau of Investigation, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Crow Dog was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Roger and Sherryanne Christie Sentenced to PrisonRead the Press Release
HONOLULU – Defendants Roger Cusick Christie, 64, and Sherryanne L. Christie, 62, husband and wife, were sentenced today by U.S. District Judge Leslie E. Kobayashi. Roger Christie was sentenced to 60 months imprisonment, to be followed by a term of supervised release of four years. Sherryanne Christie was sentenced to a 27 month imprisonment term, to be followed by a term of supervised release of three years.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that Roger Christie had also asked the Court to permit him to possess and use marijuana for religious purposes during his term of supervised release, but the Court refused to do so, imposing the standard conditions of release on him, which prohibited the use or possession of controlled substances. In addition, while Roger Christie may participate in Ministry functions that do not involve the use or possession of controlled substances, the court also ordered that he was prohibited from associating with other persons who were using or possessing such drugs. A similar condition was imposed for Sherryanne Christie’s term of supervised release.
Last September, Roger Christie had pled guilty to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, involving 100 or more marijuana plants and two separate tax counts for failure to file federal income tax returns for calendar years 2008 and 2009. Sherryanne Christie had pled guilty to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, involving 50 or more marijuana plants. Under the terms of their plea agreements, both Christies reserved their right to seek appellate review of the District Court’s denial of four pretrial motions, including the Court’s finding that enforcement of marijuana trafficking laws against them did not violate the Religious Freedom Restoration Act (RFRA).
The prosecution resulted from the combined efforts from 2008-2010 of the Drug Enforcement Administration; the Internal Revenue Service - Criminal Investigations; Homeland Security Investigations; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; the U.S. Marshals Service; the National Park Service; the Sheriff’s Office, Department of Public Safety; the Hawaii Police Department; and the Honolulu Police Department. The case was prosecuted by Assistant U.S. Attorney Michael K. Kawahara.
River Forest Man Guilty of Sending Threats to Kill Chicago Politicians, Local Police, and Texas and California Oil ExecutivesRead the Press Release
CHICAGO — A federal jury today convicted a River Forest man of mailing and emailing threatening communications to kill Chicago area politicians, River Forest police officers, as well as oil executives in Texas and California. The defendant, RONALD HADDAD, Jr., 38, was found guilty of all 30 counts against him ― 28 counts of mailing threats and two counts of emailing threats.
The jury deliberated less than four hours this afternoon following a trial that began last Tuesday in U.S. District Court.
U.S. District Judge Virginia Kendall set sentencing for July 21. Haddad faces a maximum sentence of five years in prison and a $250,000 fine on each count. The Court must impose a reasonable sentence under federal statues and the advisory United States Sentencing Guidelines.
Haddad remains in federal custody without bond while awaiting sentencing. He has been in custody most of the time since he was arrested and charged in 2009, and during that time he underwent several mental competency evaluations.
The evidence at trial showed that Haddad sent multiple threatening communications in three waves starting in Dec. 2007, again in June and July 2008, and again in January 2009. The first group of letters, addressed to individuals such as former Chicago Mayor Richard M. Daley and former Chicago Ald. Bernard Stone, contained white powder. The letters in June and July 2008 contained a brown substance, and the letters and packages in January 2009 contained an oily substance or shotgun shells that appeared to be rigged to explode. None of the substances or shells proved to be harmful but witnesses who opened the letters and packages testified that they were fearful when they opened them.
The guilty verdicts were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation; and Chicago Police Superintendent Garry F. McCarthy. The government was represented by Assistant U.S. Attorneys Joseph Thompson and William Ridgway.
Restaurant Owner and Wife Sentenced for Employing Alien Illegally in U.S.Read the Press Release
WICHITA, KAN. – A Wichita restaurant owner and his wife were sentenced Monday for harboring a Chinese girl who worked at their restaurant, U.S. Attorney Barry Grissom said.
The owner, Yong “Tony” Lin, 33, Wichita, Kan., was sentenced to two years supervised release. He pleaded guilty to harboring an alien unlawfully in the United States. His wife, Zhuo Mei “Mandy” Weng, 29, Wichita, Kan., was sentenced to one year on probation. She pleaded guilty to hiding the crime. Both charges are federal felonies.
As part of their guilty pleas, the couple agreed to forfeit about $8,000 in cash seized by Homeland Security agents investigating the case. The money will go to employees who are owed back wages.
In September 2013, the Exploited and Missing Child Unit (EMCU) received a report that a minor teenager from China was being housed with other restaurant workers at a west Wichita apartment complex and that she also was employed at the World Buffet Grill, 2243 N. Ridge Road. With the assistance of the Wichita Police Department and Homeland Security Investigations, EMCU confirmed the reports and was able to place the minor elsewhere.
An indictment was filed in the case Sept. 11 alleging that Lin and Weng harbored and employed at least three restaurant employees they knew were unlawfully in the United States. They often paid the employees in cash, failed to follow wage and hour guidelines, and failed to maintain I-9 employment eligibility verification forms, according to the indictment.
Grissom commended the EMCU, the Wichita Police Department, Homeland Security Investigations and Assistant U.S. Attorney Brent Anderson for their work on the case.Rapid City Woman Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, woman convicted of Involuntary Manslaughter was sentenced on April 22, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lavina Mackey, age 54, was sentenced to 5 years in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Mackey was indicted for Felony Child Abuse and Neglect, Involuntary Manslaughter, and Operating a Motor Vehicle under the Influence of Alcohol Resulting in Serious Bodily Injury to a Minor Child by a federal grand jury on August 29, 2012. She pled guilty to the Involuntary Manslaughter charge on December 2, 2013.
The charge related to Mackey driving a Ford Expedition while intoxicated on May 4, 2012, near Red Shirt Table on the Pine Ridge Indian Reservation. Mackey lost control of the vehicle and caused a roll-over accident. Among the several occupants of the vehicle was an unrestrained three-year-old child, who was thrown from the vehicle and died from his injuries.
This case was investigated by the South Dakota Highway Patrol, Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Mackey was immediately turned over to the custody of the U.S. Marshals Service.