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5 June 2014
New York Man Charged with Attempted Drug PossessionRead the Press Release
Carl O’Neal of Queens, NY, was charged today by indictment with attempting to possess with intent to distribute 500 grams or more of cocaine, in May 2014, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 40 years’ imprisonment, five years’ supervised release, a $5 million fine, and a $100 special assessment.
The case was investigated by Immigration and Customs Enforcement – Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Anita Eve.
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, 215-861-8525Navajo Man from Chi-Chi-Tah, N.M., Sentenced to Federal Prison for Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Mark Patrick Eddy, 45, was sentenced this morning to a year and a day in federal prison followed by three years of supervised release for his assault conviction, announced U.S. Attorney Damon P. Martinez and Director John Billison of the Navajo Nation Division of Public Safety.
Eddy, an enrolled member of the Navajo Nation who resides in Chi-Chi-Tah, N.M., was arrested on Jan. 14, 2014, on a criminal complaint charging him with assault with a dangerous weapon and assault resulting in serious bodily injury. Court filings reflect that Eddy assaulted his girlfriend, a Navajo woman, on June 21, 2013, at a residence located on the Navajo Indian Reservation, by kicking the victim in the head with his cowboy boots.
On Feb. 28, 2014, Eddy pleaded guilty to a felony information charging him with assault resulting in serious bodily injury. In entering his guilty plea, Eddy admitted assaulting his intimate partner by throwing her to the ground and kicking her in the head, causing a laceration that required medical attention.This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Special Assistant U.S. Attorney David Adams. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Morrisville Man Indicted on Gun ChargeRead the Press Release
Jonathan A. Miller, Jr., 56, of Morrisville, Pennsylvania was charged on June 3, 2014, by indictment with possession of a firearm and ammunition by a convicted felon. The indictment charges that Miller committed this offense in Penndel, Pennsylvania on January 19, 2013.
If convicted,Miller faces a maximum sentence of ten years imprisonment. Miller also faces a maximum period three years supervised release, a $250,000 fine, and a $100 special assessment.
This case was investigated by the Federal Bureau of Investigation and the Penndel Police Department, and is being prosecuted by Assistant United States Attorney Andrea G. Foulkes.Click here to view the indictment
An Indictment or an Information 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, 215-861-8525Mizpah Man Sentenced for Robbing the First State Bank of Bigfork in KelliherRead the Press Release
MINNEAPOLIS — Earlier this week in federal court, a 21-year-old Mizpah man was sentenced for his role in the robbery of the First State Bank of Bigfork in Kelliher, Minnesota on December 10, 2012. On June 3, 2014, United States District Court Judge Donovan W. Frank sentenced Cody Lowell Troy to 120 months in federal prison, followed by 5 years of supervised release. Troy, who was indicted along with a co-defendant on January 15, 2013, pleaded guilty to one count of Brandishing a Firearm During a Crime of Violence.
In his plea agreement, Troy admitted to robbing the bank while brandishing a 12-gauge, sawed-off shotgun that had a partially obliterated serial number. He stole approximately $3,738.
This case was the result of an investigation by the Federal Bureau of Investigation, the Beltrami County Sheriff’s Office, the Headwaters Safe Trails Task Force, and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Kevin S. Ueland.Meridian Woman Pleads Guilty to Controlled Substance DeliveryRead the Press Release
BOISE – Kristen Rast, 44, of Meridian, Idaho, pleaded guilty today in federal court to one count of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. Sentencing is set before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise on August 25, 2014.
According to the plea agreement, on four occasions in June through August of 2012, Rast knowingly and intentionally distributed to an undercover police officer, 356 pills of 80 mg Oxycontin, which contains oxycodone, a Schedule II narcotic and controlled substance. She had obtained the controlled substances by prescription from a provider.
This investigation was initiated by the Meridian Police Department and investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Service’s Office of Inspector General.
Mathis Man Sentenced to Life in Prison for Large-Scale Drug-Trafficking and Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – Ricardo Guerrero, 55, of Mathis, has been sentenced to federal prison for conspiracy to commit drug trafficking, conspiracy to launder money and being a felon in possession of a firearm, announced United States Attorney Kenneth Magidson. A federal jury in Corpus Christi convicted Guerrero following an eight-day trial and approximately two hours of deliberation on Tuesday, March 18, 2014.
Today, Senior U.S. District Judge Hayden Head, who presided over the trial, handed Guerrero a total sentence of life in federal prison. As part of his sentence, Guerrero was also ordered to forfeit three properties to the U.S. and pay a money judgment of $500,000.
During trial, the government provided evidence that Guerrero was the leader of the conspiracies, which existed from 2009 through his arrest on Sept. 26, 2013. Guerrero was proven to be a major dealer in methamphetamine, heroin and cocaine.
Over the course of the two-year investigation, law enforcement agents seized more than six kilograms of methamphetamine, five kilograms of heroin and six kilograms of cocaine. In addition to these amounts, trial testimony also proved that Guerrero’s criminal organization was moving kilogram amounts of methamphetamine, heroin and cocaine at least once or twice a month. He obtained the illegal narcotics from Mexico and had them crossed into the United States at Brownsville, McAllen or Laredo and stored the narcotics on numerous properties he owned in Mathis and in neighboring counties. Guerrero sold the methamphetamine, heroin and cocaine to sources throughout South Texas, as far north as Houston, and even as far west as San Antonio.
The money laundering conspiracy involved concealing money Guerrero made from his drug trafficking, primarily through cattle and vehicle auctions.
The government presented testimony from 52 witnesses, which included information about the arrests of 21 other conspirators that had been working for Guerrero in the drug trafficking and money laundering conspiracies. Those defendants all entered guilty pleas to their respective roles prior to trial.
Jesus Borja-Borja, 26, of Edinburg, pleaded guilty to the conspiracy, specifically, to being Guerrero’s main source of supply in obtaining the illegal narcotics. Elena Barrera, 36, of Mathis, and Frank Coronado, 30, of Brownsville, were convicted of conspiracy to commit money laundering. Wayne Dedow, 49, of Mathis, Miguel Montemayor, 37, of Beeville, and Douglas Massey, 34, Ricky Bazaldua, 37, and Ramon Alonzo Gonzales, 45, all from Corpus Christi, pleaded guilty for transporting or selling specific loads of narcotics for Guerrero. Six others - Krystan Rios, 23, Eddie Hernandez, 32, Victor Arocha, 54, Sulema Vasquez, 50, Jada Gregg Warren, 30, and Daniel Sosa, 44, all of San Antonio - entered guilty pleas to their roles in transporting or selling specific loads of narcotics for Guerrero.
The remaining conspirators pleaded guilty to their roles in transporting or selling narcotics for Guerrero. These included Carlos Molina, 71, and Roberto Contreras, 57, both of Robstown, Richard Pacheco, 42, of Karnes City, Lee Roy Tanguma, 38, of Beeville, Benjamin Hernandez, 38, of Sandia, and Emmanuel Pabon Lugo, 37, and Amalia Dimas, 36, both of Corpus Christi.
All 21 of the other defendants have already been sentenced to prison terms ranging from 18 months to 180 months.
Those charged in relation to this case were identified through a long-term investigation conducted jointly by Homeland Security Investigations and Texas Department of Public Safety. The case is being prosecuted by Assistant United States Attorney Chad W. Cowan.
Marinette Woman Sentenced on Heroin ChargesRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on June 3, 2014, Karen Ann Sanchez (age: 38) was sentenced to 18 months in federal prison by Chief United States District Judge William C. Griesbach. She had previously entered a guilty plea to a charge of using a communication facility (i.e., a telephone) to facilitate the distribution of heroin.
According to her plea agreement and other documents filed with the court, Sanchez worked in concert with eight other co-defendants to facilitate the movement and delivery of heroin to the Marinette, Wisconsin, and Menominee, Michigan areas from a primary supplier in Chicago.
The court noted the “devastating effect” that heroin use has had in the Marinette / Menominee region. The court described the coordinated actions of Sanchez and her co-defendants as essentially “a drug co-operative” designed not for the purpose of creating a profit, but to increase purchasing power and increase the frequency of coordinated “heroin runs” to Chicago.
The case was investigated by Special Agents from the Wisconsin Department of Justice, Department of Criminal Investigation, the U.S. Drug Enforcement Administration, the Marinette Police Department, Marinette Sheriff’s Office, Menominee (Michigan) Police Department, Menominee (Michigan) Sheriff’s Office, Wisconsin High Intensity Drug Trafficking Area (HIDTA) Task Force, Chicago HIDTA Task Force, Chicago Police Department, Northeast Wisconsin Tri-County Drug Enforcement Group, and the Manitowoc County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
Margate Resident Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announce that Louis A. Francois, 44, of Margate, was sentenced today to five years in prison, to be followed by two years of supervised release. The defendant was also ordered to pay restitution of $355,000.
Louis A. Francois previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Francois owned and operated a tax preparation business called A&I Multi Services (A&I) located in Oakland Park. Francois stole personal identifying information (PII) of various individuals, including their names, dates of birth, social security numbers, and addresses, for the purpose of filing fraudulent U.S. income tax returns claiming tax refunds in those individuals’ names. Subsequently, Francois printed out the refund checks payable to the persons whose PII was used at A&I. The checks were in the amount of the fraudulently obtained tax refunds minus Francois’ “tax preparation” fees and other fees. The “tax preparation” fees were deposited into Francois’ bank account. Francois went to a check cashing store located next door to A&I with the fraudulently obtained tax refund checks and fraudulent Florida driver's licenses matching the stolen identities on the checks and cashed them.
From July 2010 through June 2011, the total amount of U.S. Treasury checks cashed by Francois and the total amount of fraudulent refunds requested by Francois is approximately $355,000. The number of victims involved is greater than ten, but fewer than fifty.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Secret Service. This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manhattan U.S. Attorney Settles Civil Rights Lawsuit with Architects of Manhattan Apartment BuildingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States settled a federal civil rights lawsuit against the architects of 2 Gold Street, a rental apartment building in Lower Manhattan. The lawsuit, which was filed in Manhattan federal court in 2013, alleges that the architect AVINASH K. MALHOTRA and his business, AVINASH K. MALHOTRA ARCHITECTS, designed 2 Gold Street in violation of the accessible design and construction provisions of the federal Fair Housing Act, which require that new multi-family housing complexes include certain features accessible to persons with disabilities. The settlement, which was approved today by U.S. Chief District Judge Loretta A. Preska, requires MALHOTRA and his firm to retain an accessibility expert to review all their ongoing architectural designs for buildings subject to the Fair Housing Act, dedicate $45,000 to compensate people harmed by the inaccessible conditions at 2 Gold Street, and pay a $35,000 civil penalty. Previously, the United States settled with the developers of 2 Gold Street, who agreed to make extensive retrofits at the building, dedicate up to $300,000 to compensate people harmed by the inaccessible conditions at 2 Gold Street, and pay a $35,000 civil penalty.
Manhattan U.S. Attorney Preet Bharara said: “As design professionals, architects have a clear obligation under the Fair Housing Act to ensure that residential buildings are accessible to people with disabilities. When architects disregard that obligation, our Office will use all the legal tools available to us to hold them responsible for such failures and craft remedies to ensure that their designs will be accessible in the future.”
According to the allegations contained in the Complaint and the factual admissions made by MALHOTRA in the consent decree entered by the Court:
2 Gold Street is a 650-unit rental building located in Lower Manhattan. MALHOTRA, the architect of record for 2 Gold Street, provided the architectural drawings and design specifications used by the construction contractors to construct the building. As built, 2 Gold Street had multiple inaccessible features, including insufficient space in bathrooms and kitchens for people in wheelchairs; high thresholds interfering with accessible routes; sinks, ranges, outlets, and mailboxes not fully usable by people in wheelchairs; and protruding objects not detectable by canes used by people with visual impairments.
Inaccessible features at 2 Gold Street were first brought to the attention of the United States by testing performed by the Fair Housing Justice Center. The U.S. Attorney’s Office frequently relies on testers to determine whether property owners are engaging in discrimination on the basis of race, disability, or other protected characteristics, and frequently files lawsuits based on the results of testing.
The consent decree approved today requires AVINASH K. MALHOTRA and AVINASH K. MALHOTRA ARCHITECTS to retain an accessibility expert to review and advise them on each of their new design projects that is subject to the Fair Housing Act, train employees on the requirements of the Fair Housing Act, dedicate $45,000 to compensate people who have been harmed by Fair Housing Act violations at 2 Gold Street, and pay a $35,000 civil penalty to the United States.
Under the consent decree, a person may be entitled to receive monetary compensation if he or she was:
- Discouraged from living at 2 Gold Street because of a lack of accessible features;
- Limited in the full use or enjoyment of an apartment or amenity at 2 Gold Street due to a lack of accessible features;
- Financially affected by having an apartment at 2 Gold Street made more accessible to persons with disabilities;
- Prevented from having visitors because of a lack of accessible features at 2 Gold Street; or
- Otherwise injured by the lack of accessible features or discriminated against on the basis of disability at 2 Gold Street.
People who may be entitled to compensation should file a claim by contacting the Civil Rights Complaint Line at (212) 637-2987 (a TDD line is available at (212) 637-0039), using the Civil Rights Complaint Form available on the U.S. Attorney’s Office’s website, www.usdoj.gov/usao/nys, or sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
Attn: Chief, Civil Rights Unit
86 Chambers Street, 3rd Floor
New York, New York, 10007
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Carina H. Schoenberger, Li Yu, Emily E. Daughtry, and Jessica J. Hu are in charge of the case.
U.S. v. 2 Gold LLC, et al. Consent Decree.
Kinder Man Pleads Guilty to Part in Robbery at Coushatta Tribal ReservationRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that Chanten Keth L. Gauthreaux, 20, of Kinder, La., pleaded guilty before U.S. District Judge Patricia Minaldi to participating in a home invasion at the Coushatta Tribal Reservation.
According to evidence presented at the guilty plea, the defendant along with John Harold Materne, Trevor James Simon, Floyd H. Martine, and another suspect traveled on December 3, 2013, in a van to the home of an acquaintance located on property belonging to the Coushatta Indian Tribe near Elton, La., in order to steal illegal drugs. Simon drove the vehicle. With Materne carrying a shotgun, he and Martine entered the home. While they were robbing the inhabitants, Gauthreaux entered the trailer and helped take pills and marijuana. The group was arrested while fleeing the scene in the van. Materne and two of the victims are Native American Indians and members of the Coushatta Tribe.
Gauthreaux faces up to 15 years in prison, three years supervised release, and a $250,000 fine for one count of robbery in Indian Country. On Wednesday, June 4, 2014, Materne, 22, of Ragley, La., pleaded guilty to one count of robbery in Indian Country and also pleaded guilty to one count of brandishing a firearm, which carries penalties of seven years to life in prison, five years supervised release, forfeiture, and a $250,000 fine. A sentencing date of September 4, 2014 was set for Materne and September 11, 2014 for Gauthreaux.
Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has extended the territorial jurisdiction of the United States to major crimes committed against Native Americans that take place in Indian Country, which includes all property that the government holds in trust or use by officially recognized Native American tribes. The U.S. Attorney’s Office prosecutes all major crimes and misdemeanor cases arising in Indian Country that are within the jurisdiction of this office. The U.S. Attorney’s Office prosecutes cases arising in Indian Country involving felonies where either the defendant or the victim is an Indian or both the defendant and the victim are Indian. The U.S. Attorney’s Office also prosecutes cases involving misdemeanors where the defendant is a non-Indian.
The Coushatta Tribal Police Department, FBI, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
Justice Department Reaches Settlement with Florida State UniversityRead the Press Release
The Department of Justice announced today that it has reached a settlement with the Florida State University Board of Trustees, acting for and on behalf of Florida State University (FSU), in Tallahassee, Florida. The settlement agreement resolves an investigation and compliance review of the FSU Police Department by the Justice Department under Title I of the Americans with Disabilities Act (ADA) and its implementing regulations. The investigation found that the FSU Police Department’s online application form asked questions about a past or present disability and other medical conditions in violation of the ADA. The ADA does not permit employers to inquire whether an applicant is an individual with a disability or as to the nature of such disability before making a conditional offer of employment.
Under the settlement, FSU agrees to ensure that its hiring policies do not discriminate against any applicant on the basis of disability, including by:
· not conducting any medical examination or making any disability-related inquiry of a job applicant before a conditional offer of employment has been made;
· after making a conditional offer of employment, limiting the scope of medical examinations or disability-related inquiries to what is necessary to either confirm the job applicant’s ability to perform job-related functions, with or without a reasonable accommodation; or whether the applicant poses a direct threat to the health or safety of the applicant or others;
· maintaining the medical or disability-related information of an applicant or employee in separate, confidential medical files;
· training employees who make hiring or personnel decisions within the FSU Police Department on ADA regulations; and
· ensuring that the FSU Police Department website, including its employment opportunities website and its mobile applications, conform to the Web Content Accessibility Guidelines 2.0 Level AA Success Criteria and other Conformance Requirements (WCAG 2.0 AA). The WCAG 2.0 AA is available online .
“This agreement ensures that people with disabilities will have an equal opportunity to compete for jobs in the FSU Police Department,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department is committed to knocking down employment barriers for people with disabilities, and we commend the FSU for its cooperation and continuing efforts to improve accessibility for all job applicants.”
People interested in finding out more about the ADA or this agreement can call the department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY), or visit the ADA website
Jacksonville Man Indicted on Federal Charge of Failure to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Anthony Vincent Burkitt, a/k/a “Vincent Thomas Wolfe,” (44, Jacksonville) has been indicted by a federal grand jury and charged with failing to register as sex offender, after traveling from the state of Maryland. If convicted, Burkitt faces up to 10 years in federal prison. Burkitt has been in custody on related state charges since his arrest on April 13, 2014.
According to the indictment, on or about September 27, 2002, Burkitt was convicted of attempted second degree rape in Baltimore County, Maryland. Subsequent to his conviction, between September 9, 2011 and April 13, 2014, he traveled from Maryland to Florida, where he has since resided. Burkitt allegedly failed to register as a sex offender in Florida, as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office, the United States Marshals Service, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Inmate Charged with Filing False Income Tax Returns for Fellow PrisonersRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI -- A federal grand jury here has indicted James Jeremy Savage, 40, originally from Springfield, Ohio, charging him with 29 counts of filing false claims for income tax refunds with the Internal Revenue Service (IRS). Savage was incarcerated in Ohio state correctional facilities in Warren and Madison counties when he allegedly committed the crimes.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the indictment returned yesterday.
According to the indictment, between April 2007 and April 2011, Savage knowingly filed false claims for income tax refunds with the IRS by preparing and filing false federal income tax returns for other individuals. The intended loss to the IRS due to this fraudulent scheme was approximately $44,675.53
Savage prepared and filed the bogus returns on behalf of other inmates who agreed to pay him in commissary items. The apartment number in the address listed by Savage on many of the returns was allegedly the inmate number for the incarcerated person in whose name the return was filed.
Filing false claims with the IRS is punishable by up to five years in prison and a fine of up to $250,000.“At the IRS, protecting taxpayer money is a matter we take extremely seriously. An integral part of the agency’s mission involves detecting and catching fraudulent tax refund claims," stated Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office. "The object of these schemes is to defraud the government and the taxpaying public.”
This case is being prosecuted by Senior Litigation Counsel Anne L. Porter and investigated by special agents of IRS-Criminal Investigation.
Savage is currently in custody in Chillicothe Correctional Institution on unrelated state charges.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Houston Woman Convicted in Alien Smuggling That Resulted in DeathRead the Press Release
CORPUS CHRISTI, Texas – Karin Yamilec Aguilar-Melgor, 22, of Houston, has admitted to smuggling of a group of nine illegal aliens that left one deceased, announced United States Attorney Kenneth Magidson.
According to documents filed of record in the case, on Feb. 25, 2014, at approximately 3:30 a.m., Border Patrol (BP) agents observed individuals getting into a red Ford pickup truck on a Farm to Market Road near Falfurrias. Finding the activity suspicious, BP agents activated their emergency equipment and approached the vehicle. The vehicle then fled the area.
BP agents remained at the scene and apprehended one illegal alien. The pickup truck was located approximately five miles away, which had crashed into a tree on FM 2191 near Falfurrias. At the scene, eight more illegal aliens were discovered as well as Aguilar-Melgor, the driver.
One of the illegal aliens subsequently died due to injuries sustained in the accident.
Aguilar-Melgor was arrested at the scene and has remained in custody since that time.
U.S. District Judge Nelva Gonzales Ramos, who accepted the guilty plea, has set sentencing for Oct. 1, 2014. At that time, Aguilar-Melgor faces up to 20 years in prison and a $250,000 fine.
The case is being investigated by Homeland Security Investigations. Assistant United States Attorney Jeffrey S. Miller is prosecuting.
Hogsett Announces Prosecution of Three in Methamphetamine TraffickingRead the Press Release
Hogsett continues crackdown on illegal drugs and illegal gun possession
EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced the indictments of three men involved in methamphetamine trafficking. Travis Adams, 32, of Mount Vernon, David Connor, 46, of Boonville, and Joseph Isbell, 31, of Dallas, Texas were indicted on one count each of conspiracy to distribute methamphetamine. Adams was also indicted on one count of possession of a firearm by a convicted felon.
In 2010, a Drug Enforcement Administration (DEA) Task Force agent turned up evidence that Adams, Connor and Isbell were involved in interstate drug trafficking, from Texas to Indiana. Investigations into these men’s activities this year allege that Isbell was a distributor to Adams and Connor. In April 2014, Task Force agents received search warrants and allegedly found over two pounds of meth in their search. Adams and Connor were arrested.
“Going after those who transport drugs into our state and those in our state who wish to make money off of selling illegal substances is an important part of keeping Hoosiers safe,” said Hogsett.
The criminal complaint alleges after arresting Adams and Connor, Connor stated that he and Adams had returned from Missouri on the previous evening after buying methamphetamine from Isbell. Connor advised that Isbell would be making trips to Evansville in the coming days with another two pounds of crystal methamphetamine. Connor agreed to place law enforcement monitored phone calls to Isbell in order to track his movements and plan for his arrest. Once on alert that Isbell would be in town, law enforcement officers were at his planned location in order to take him into custody. Isbell was arrested at Tropicana Casino a few days after Adams and Connor. Isbell later was released on bond from state charges.
At the time of the arrest, Adams was in possession of a firearm. By law, prior felons are banned from owning or possessing firearms. Adams’ felony record is as follows:
• Possession of Precursors, Vanderburgh County, 2001
• Dealing in Methamphetamine, Vanderburgh County, 2002
• Maintaining a Common Nuisance, Vanderburgh County, 2002
• Arson, U.S. District Court, Southern Indiana, 2010
• Conspiracy to Commit Arson, U.S. District Court, Southern Indiana, 2010This prosecution is part of the Violent Crime Initiative (VCI). The United States Attorney’s Violent Crime Initiative began in 2011, and is intended to focus on the “worst of the worst” violent offenders by marshaling federal resources to provide local partners the additional tools they may need to succeed in their effort to promote peace.
A major part of VCI is keeping firearms out of felons’ hands. In 2011, only 14 firearms charges were filed. Since then, over 325 firearms cases have been prosecuted. By charging these cases federally, violent felons must serve 85% of their sentence at a minimum.
“I am proud of the work my office has done to ensure that drugs stay off the streets and guns are possessed only by those who can legally own them,” said Hogsett.
This case was a join investigation with the DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to Lauren Wheatley who is prosecuting this case for the government, each defendant could serve a prison sentence of 10 years to life and up to a fine of $10 million if convicted.
Hogsett Announces Conviction by Jury of Local Businessman on Fraud ChargesRead the Press Release
U.S. Attorney’s Office successfully prosecutes Fishers man who defrauded businesses of hundreds of thousands of dollars
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the conviction of Hrong Arman Gasparian, 67, of Fishers. Gasparian was convicted of 10 counts of wire fraud after a three-day jury trial before U.S. District Judge Sarah Evans Barker.
“Fraud is theft. It takes money out of the hands of hard-working, honest Hoosiers who are just trying to make a living,” said Hogsett.
Gasparian claimed he was a loan broker who could secure funding for businesses and non-profits. He was convicted for his involvement in two fraudulent schemes that swindled prospective borrowers of hundreds of thousands of dollars.
The first scheme involved Bell’s Chapel Church in Indianapolis. Gasparian told members seeking financing to rebuild the church that he would be able to secure them a $3 million grant but would need $365,000 for earnest money and $35,000 non-refundable fee for Gasparian to broker the deal. He told Bell’s Chapel he would put the money in an escrow account, and the refundable portion would be returned upon securing the grant. Gasparian instead spent the $400,000, never securing the grant to Bell’s Chapel and never refunding the earnest money.
In the second scheme Gasparian was convicted of fraudulent behavior which involved two Indianapolis-area businessmen seeking to secure financing for a new construction project. Gasparian assured them he could secure several million dollars in financing for them, but needed $200,000 in earnest money and $25,000 for his brokering fee. Like the members of Bell’s Chapel, the businessmen never received a loan, nor were they returned the refundable earnest money that had given to Gasparian.
“I am proud to say this was a true team effort,” Hogsett said. “Together with the Federal Bureau of Investigation (FBI) and our federal and local law enforcement partners, we worked to prosecute and hold accountable an individual who preyed upon his fellow Hoosiers.”
This case is the result of a collaborative effort by the FBI and the U.S. Attorney’s Office. Investigators with the FBI provided key information in securing Gasparian’s conviction.
According to Assistant U.S. Attorney Winfield D. Ong, who prosecuted the case for the government, Gasparian’s sentence could be up to 20 years in federal prison with fines of up to $250,000 for each of the 10 counts of his conviction. He may also be sentenced to serve multiple years of supervised release. A sentencing date will likely come in the next three months. Until his sentencing, Gasparian is under a court order that restricts him from engaging in financial transactions.
Georgia Woman Sentenced for False Tax ClaimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Chickamauga, Ga., woman was sentenced in federal court today for making false claims for tax refunds.
Kimberly Johnson, 43, of Chickamauga, Ga., was sentenced by U.S. District Judge Brian C. Wimes to four years in federal prison without parole. The court also ordered Johnson to pay $306,496 in restitution.
On Jan. 13, 2014, Johnson was found guilty at trial of one count of filing false claims for a tax refund. Johnson filed fraudulent tax returns that falsely claimed refunds due to over-withholding of taxes. This claim utilized fictitious 1099-OID tax forms (which are legitimately used to pay taxes on income received from the interest on bond investments).
Johnson was a branch manager for co-defendant Gerald A. Poynter, also known as “Brother Jerry Love,” 48, of Kansas City, Mo. Poynter pleaded guilty on Nov. 7, 2013, to being the leader of a conspiracy to defraud the government that utilized this fraudulent practice. He was sentenced to 13 years in federal prison without parole. Conspirators filed 284 fraudulent returns that claimed a total of $96 million dollars in refunds. The IRS mistakenly paid out $3.5 million on these fraudulent claims. Conspirators from eight states were involved in filing fraudulent tax returns in the largest federal false claims case that has ever been prosecuted in Missouri.
According to court documents, Johnson filed tax returns and amended returns for 37 people. She admitted that this was her sole livelihood at the time, and she benefitted by making tens of thousands of dollars. Despite notice after notice that Poynter and his scheme were frauds, she continued to file tax returns. Many of her low-income clients were fined $10,000 by the IRS for following Johnson’s fraudulent advice. The government believes Johnson’s intended loss was $3,682,647, and her actual loss was $306,496.
Johnson was convicted of filing a claim for a $61,959 refund in April 2009 on behalf of Marian Fine-Kennedy, 36, of Eugene, Ore. In actuality, Fine-Kennedy had not received interest income from the banks and lenders listed on the Forms 1099, nor had any money been over-withheld. Fine-Kennedy has pleaded guilty in a separate but related case.
Poynter and Fine-Kennedy are among 13 defendants who have pleaded guilty. Co-defendant Nkosi Gray, 40, of New Fairfield, Conn., was also convicted at trial and awaits sentencing.
1099-OID Tax Fraud Scheme
Conspirators utilized 1099-Original Issue Discount forms as part of their scheme.
These forms are legitimately used by tax filers who must pay taxes on income they receive from the interest on their bond investments. Tax on certain bonds must be paid as income accrues. Bond holders receive annual forms, called 1099-Original Issue Discount (OID), from the debt issuers.
However, the scheme described in the indictments utilized the 1099-OID forms in a nonsensical manner. Clients of the conspirators assembled financial documents such as mortgage and loan statements, car payments, foreclosure records, bank statements, credit card statements, and other records of debt and spending. Poynter and his staff used this debt information – rather than any actual bond income – to prepare and/or finalize false tax returns and improperly calculated Forms 1099-OID.
These tax returns falsely claimed that the filers had received interest and dividend income and that federal income tax had been withheld. The fraudulent returns claimed the government had over-withheld taxes from the clients’ purported interest and dividend income, making the clients appear entitled to more than $96 million in tax refunds.
In reality, Poynter’s clients had not earned – or paid tax on – such income. No financial institution had issued any 1099-OID forms. Instead, the income that was listed was calculated by what the indictment describes as an “arbitrary and capricious formula.” Conspirators simply added up the taxpayers’ debts and spending and listed those creditors as “payers” of interest and dividends.
OID Fraud Web Site
A Web site has been established to provide information about the status of this investigation. Updates about this investigation and related cases will be posted at www.justice.gov/usao/mow/divisions/OIDfraud.html
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA).Georgia Man Pleads Guilty to Federal Chargesfor Discharging Waste into Potomac RiverRead the Press Release
Patrick Brightwell, 48, of Bogart, Georgia, pleaded guilty today to federal charges that he orchestrated the discharge of waste into the Potomac River at East Potomac Park from 2009 through 2011, during the same period he managed the company hired by the National Park Service to clean out the storm water sewer system on the National Mall.
The guilty plea was announced by Acting Assistant Attorney General Sam Hirsch of the Justice Department’s Environment and Natural Resources Division; U.S. Attorney for the District of Columbia Ronald C. Machen Jr.; Special Agent in Charge David G. McLeod Jr. of the Environmental Protection Agency’s criminal enforcement program for the Middle Atlantic States; and Acting Chief Robert D. MacLean of the United States Park Police.
Brightwell pleaded guilty in the U.S. District Court for the District of Columbia to one count of violating the Clean Water Act by knowingly discharging a pollutant without a permit and one count of presenting false claims to the United States. The Honorable James E. Boasberg scheduled sentencing for September 3, 2014. Under federal sentencing guidelines, Brightwell faces a likely range of 46 to 57 months in prison and a fine of up to $75,000. Brightwell also has agreed to pay $270,667 in restitution to the National Park Service, representing the losses for the work that was not properly performed. He also must pay a forfeiture money judgment totaling $230,899.
An eight-count indictment of Brightwell was unsealed following his arrest in Georgia on Dec. 5, 2013. The remaining charges will be dismissed as part of the guilty plea.
“While he was supposed to be helping to keep the National Mall – a treasure of our national park system – clean and free of trash, Brightwell was actually directing the dumping of debris and wastewater into the Potomac River,” said Acting Assistant Attorney General Hirsch. “He now faces a stiff penalty for his callous and egregious violation of the Clean Water Act.”
“Patrick Brightwell harmed the U.S. taxpayer and our nation’s capital by directing his workers to dump waste in the Potomac River,” said U.S. Attorney Machen. “Instead of fulfilling a contract to take waste from the National Mall to a disposal facility, Brightwell polluted our water by telling his employees to cut corners regardless of the damage to our environment. The prison time that Brightwell now faces is an indication of how serious we are about enforcing the Clean Water Act.”
“The defendant dumped untreated wastewater and debris into one of our nation’s most treasured rivers, the Potomac,” said Special Agent in Charge McLeod. “Businesses and their contractors who flout the nation's environmental laws will be held accountable. EPA and its partner agencies are committed to vigorously working together to protect the public from this type of illegal and dangerous action.”
“The guilty pleas in this case shall serve as a reminder that environmental crimes will not be tolerated by the National Park Service, law enforcement, the criminal justice system, and the community," said Acting Chief MacLean. “I applaud the collaborative efforts of every agency involved as a testament to the inherent dedication to protecting our nation's natural resources.”
According to a statement of offense signed by the government and defendant, from in or about 2007 through 2011, Brightwell was a manager of a company that had a contract with the National Park Service to clean the storm water sewer system on the National Mall. The contract required that waste removed from the Mall’s storm drains and oil-water separators be disposed of at a proper disposal facility in compliance with District of Columbia regulations and federal law.
Brightwell hired employees and subcontractors to perform work under the contract and oversaw their work from 2008 to 2011. To clean the structures, Brightwell and his company used a vacuum truck, a vehicle designed to gather, store, and transport such waste. When the storage compartment in the vacuum truck became full, workers would have to discharge waste from the truck prior to continuing the cleaning.
In 2009, 2010 and 2011, according to the statement of offense, Brightwell directed his employees and subcontractors to discharge waste from the vacuum truck at a storm drain near a parking lot in East Potomac Park, across Ohio Drive from the Potomac River. Brightwell concealed these discharges from the National Park Service and police. Workers also discharged waste at a manhole near Fort McNair in the District of Columbia.
During this period, Brightwell continued to invoice the National Park Service for cleaning services, but concealed and did not disclose that the waste was not being properly disposed, as required by the contract. From 2009 through 2011, Brightwell’s company received approximately $406,000 in payments from the National Park Service related to the contract.
According to the statement of offense, the employees and subcontractors illegally dumped waste at the parking lot approximately two-thirds of the time, and dumped the waste at a proper disposal facility in Fort Washington, Maryland, about one-third of the time.
The subcontractor, B&P Environmental LLC, and a B&P employee working on June 6, 2011, both pleaded guilty in November 2014 to violations of the Clean Water Act before the U.S. District Court. As part of their pleas, both the company and employee agreed to cooperate with the government’s investigation. Both the company and employee are awaiting sentencing.
The case was investigated by Special Agent S. Christopher Michael of the EPA and Detective Jon Crichfield of the U.S. Park Police and supported by Environmental Protection Specialists Jerry Crutchley and Justin Young. It is being prosecuted by Senior Trial Attorney Lana Pettus of the Department of Justice’s Environmental Crimes Section and Assistant U.S. Attorney Jonathan P. Hooks of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Paralegal Specialist Ashleigh Nye of DOJ’s Environmental Crimes Section and Paralegal Specialists Krishawn Graham and Donna Galindo of the U.S. Attorney’s Office.Georgia Man Pleads Guilty to Federal Charges for Discharging Waste into Potomac River- Defendant Managed Clean-Up of Storm Sewer System at National Mall -Read the Press Release
WASHINGTON - Patrick Brightwell, 48, of Bogart, Ga., pled guilty today to federal charges that he orchestrated the discharge of waste into the Potomac River at East Potomac Park from 2009 through 2011, during the same period he managed the company hired by the National Park Service to clean out the storm water sewer system on the National Mall.
The guilty plea was announced by Acting Assistant Attorney General Sam Hirsch of the Environment and Natural Resources Division of the Department of Justice; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia, David G. McLeod, Jr. Special Agent in Charge of the Environmental Protection Agency’s criminal enforcement program for the Middle Atlantic States, and Robert D. MacLean, Acting Chief, United States Park Police.
Brightwell pled guilty in the U.S. District Court for the District of Columbia to one count of violating the Clean Water Act by knowingly discharging a pollutant without a permit and one count of presenting false claims to the United States. The Honorable James E. Boasberg scheduled sentencing for September 3, 2014. Under federal sentencing guidelines, Brightwell faces a likely range of 46 to 57 months in prison and a fine of up to $75,000. Brightwell also has agreed to pay $270,667 in restitution to the National Park Service, representing the losses for the work that was not properly performed. He also must pay a forfeiture money judgment totaling $230,899.
An eight-count indictment of Brightwell was unsealed following his arrest in Georgia on Dec. 5, 2013. The remaining charges will be dismissed as part of the guilty plea.
“Patrick Brightwell harmed the U.S. taxpayer and our nation’s capital by directing his workers to dump waste in the Potomac River,” said U.S. Attorney Machen. “Instead of fulfilling a contract to take waste from the National Mall to a disposal facility, Brightwell polluted our water by telling his employees to cut corners regardless of the damage to our environment. The prison time that Brightwell now faces is an indication of how serious we are about enforcing the Clean Water Act.”
“While he was supposed to be helping to keep the National Mall – a treasure of our national park system – clean and free of trash, Brightwell was actually directing the dumping of debris and wastewater into the Potomac River,” said Acting Assistant Attorney General Hirsch. “He now faces a stiff penalty for his callous and egregious violation of the Clean Water Act.”
“The defendant dumped untreated wastewater and debris into one of our nation’s most treasured rivers, the Potomac,” said Special Agent in Charge McLeod. “Businesses and their contractors who flout the nation's environmental laws will be held accountable. EPA and its partner agencies are committed to vigorously working together to protect the public from this type of illegal and dangerous action.”
“The guilty pleas in this case shall serve as a reminder that environmental crimes will not be tolerated by the National Park Service, law enforcement, the criminal justice system, and the community," said Acting Chief MacLean. “I applaud the collaborative efforts of every agency involved as a testament to the inherent dedication to protecting our nation's natural resources.”
According to a statement of offense signed by the government and defendant, from in or about 2007 through 2011, Brightwell was a manager of a company that had a contract with the National Park Service to clean the storm water sewer system on the National Mall. The contract required that waste removed from the Mall’s storm drains and oil-water separators be disposed of at a proper disposal facility in compliance with District of Columbia regulations and federal law.
Brightwell hired employees and subcontractors to perform work under the contract and oversaw their work from 2008 to 2011. To clean the structures, Brightwell and his company used a vacuum truck, a vehicle designed to gather, store, and transport such waste. When the storage compartment in the vacuum truck became full, workers would have to discharge waste from the truck prior to continuing the cleaning.
In 2009, 2010, and 2011, according to the statement of offense, Brightwell directed his employees and subcontractors to discharge waste from the vacuum truck at a storm drain near a parking lot in East Potomac Park, across Ohio Drive from the Potomac River. Brightwell concealed these discharges from the National Park Service and police. Workers also discharged waste at a manhole near Fort McNair in the District of Columbia.
During this period, Brightwell continued to invoice the National Park Service for cleaning services, but concealed and did not disclose that the waste was not being properly disposed, as required by the contract. From 2009 through 2011, Brightwell’s company received approximately $406,000 in payments from the National Park Service related to the contract.
According to the statement of offense, the employees and subcontractors illegally dumped waste at the parking lot approximately two-thirds of the time, and dumped the waste at a proper disposal facility in Fort Washington, Md., about one-third of the time.
The subcontractor, B&P Environmental LLC, and a B&P employee working on June 6, 2011, both pled guilty in November 2014 to violations of the Clean Water Act before the U.S. District Court. As part of their pleas, both the company and employee agreed to cooperate with the government’s investigation. Both the company and employee are awaiting sentencing.
The case was investigated by Special Agent S. Christopher Michael of the EPA and Detective Jon Crichfield of the U.S. Park Police and supported by Environmental Protection Specialists Jerry Crutchley and Justin Young. It is being prosecuted by Senior Trial Attorney Lana Pettus of the Department of Justice’s Environmental Crimes Section and Assistant U.S. Attorney Jonathan P. Hooks of the U.S. Attorney’s Office for the District of Columbia. Assistant U.S. Attorneys Anthony Saler and Catherine Connelly of the Asset Forfeiture and Money Laundering Section assisted with the case. Further assistance was provided by Paralegal Specialist Ashleigh Nye of DOJ’s Environmental Crimes Section and Paralegal Specialists Krishawn Graham and Donna Galindo of the U.S. Attorney’s Office.
14-131Four Charged in $22 Million Movie Investment SchemeRead the Press Release
LOS ANGELES – Three men were arrested today for their roles in a scheme involving a company called Gigapix that allegedly defrauded hundreds of victims by promising large returns on movie investments and a production company’s imminent public offering, announced United States Attorney André Birotte Jr. and Bill L. Lewis, Assistant Director in Charge of the FBI in Los Angeles.
Two defendants were arrested this morning – Gregory Pusateri, 49, of Woodland Hills, and David Pritchard, 66, of Malibu, who has recently been staying with a friend in Hollywood – and are scheduled to be arraigned this afternoon in United States District Court.
A third defendant in the case – Christopher Blauvelt, 58, of Woodland Hills – was arrested this afternoon in Goleta, California. He is expected to be arraigned tomorrow in federal court in Los Angeles.
The fourth defendant in the case – Cheri Brown, 65, of Studio City – has agreed to surrender to authorities.
The four defendants were charged in a 36-count indictment returned under seal by a federal grand jury on May 15th. The indictment, which was unsealed this morning, accuses the defendants of mail fraud, wire fraud, attempted wire fraud and offering for sale unregistered securities.
The case centers on a company called Gigapix that was founded by Blauvelt in 2002 and took on Pritchard as a partner in 2006. The indictment alleges that between 2006 and 2012, Blauvelt and Pritchard hired telemarketers to solicit potential investors, who were told that Gigpix was an animation company similar to Pixar Animation Studios, and that Gigapix was developing projects expected to generate large profits when the company went public. Brown and Pusateri were among the top salespeople for Gigapix, according to the indictment.
The indictment alleges that telemarketers – known as “fronters” – used lead lists purchased by the defendants to find potential investors and then used scripts touting the supposed merits of Gigapix. When investors expressed an interest, materials about the investment were mailed to them. At that time, the potential investor was turned over to Brown and Pusateri – who were known as “closers” – to collect their money.
In or around 2008, the defendants allegedly shifted their focus to raise funds to produce a movie titled “OZ3D,” while continuing to solicit funds for Gigapix. In soliciting money for Gigapix and “OZ3D,” the indictment alleges that the defendants made numerous misrepresentations to potential investors and withheld material facts. For example, the indictment alleges that investors were told that Gigapix was a financially successful company, that they would receive high returns on their investments in less than 18 months, and that the investments carried little or no risk. Investors were also told there was an urgency to invest in Gigapix and “OZ3D” because the window of opportunity to invest and the number of shares available were limited.
Investors were told that a minimum of 65 percent of the money investesd in “OZ3D” would be used to produce and distribute the movie, and that only a small percentage of investor money would be used to pay commissions and finder’s fees. However, the indictment alleges that less than 5 percent of the investors’ money was used to finance the film. The indictment alleges that of the millions raised for the Gigapix investment, less than 20 percent of those funds were spent on the production of movies or television shows. The majority of the money raised from investors was spent on salaries, commissions and overhead, according to the indictment.
Approximately 750 victims lost virtually all of the money – approximately $22.6 million – that they invested in Gigapix and “OZ3D,” according to the indictment.
If convicted, the defendants would face decades in federal prison. The mail fraud and wire fraud counts, for example, carry statutory maximum penalties of 20 years in prison for each count.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
This investigation was conducted by the Federal Bureau of Investigation.
Release No. 14-071
Former Top Executive of Japanese Automotive Parts <br /> Manufacturer Indicted for Role in Conspiracy to Fix PricesRead the Press Release
A Detroit federal grand jury returned a one-count indictment against a former top executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of seatbelts, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Gikou Nakajima, a former executive at Takata Corp., with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to rig bids for, and to fix, stabilize and maintain the prices of, seatbelts sold to Toyota Motor Corp., Honda Motor Company Ltd., Nissan Motor Co. Ltd., Mazda Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and/or certain of their subsidiaries, for installation in vehicles sold in the United States and elsewhere. Nakajima served as director of customer relations division at Takata, the highest-level global sales executive at the company, from June 2005 until at least June 2009.
“Today’s indictment demonstrates that the Antitrust Division continues to hold accountable executives who collude with their competitors,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The division will not tolerate executives participating in – and directing their subordinates to participate in – conspiracies to raise the prices on automotive parts that are essential to the safety of U.S. consumers.”
The indictment alleges, among other things, that from at least as early as September 2005 and continuing until June 2009, Nakajima and others attended meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of seatbelts sold to the automobile manufacturers. It alleges that Nakajima participated directly in the conspiratorial conduct, and that he directed, authorized and consented to his subordinates’ participation.
Takata is a Tokyo-based manufacturer of automotive parts, including seatbelts. Takata supplies automotive parts to automobile manufacturers in the United States, in part, through its U.S. subsidiary, TK Holdings Inc., located in Auburn Hills, Michigan. Takata pleaded guilty on Dec. 5, 2013, for its involvement in the conspiracy, and was sentenced to pay criminal fine of $71.3 million. Four other executives from Takata have pleaded guilty and have been sentenced to serve time in a U.S. prison and to pay criminal fines for their roles in the conspiracy.
Including Nakajima, 35 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry, 24 of whom have pleaded guilty or agreed to plead guilty. Of those, 22 have been sentenced to serve prison terms ranging from a year and one day to two years. Additionally, 27 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.3 billion in fines.
Nakajima is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Former Savannah-Chatham Metropolitan Police Chief Willie Lovett Indicted on Extortion, Gambling and Obstruction ChargesRead the Press Release
3 Others Charged For Their Roles in an Illegal Gambling Operation
SAVANNAH, GA – Former Savannah-Chatham Metropolitan Police (SCMPD) Chief Willie Clinton Lovett, 65, was indicted yesterday by a federal grand jury sitting in Savannah on charges of extortion, participating in an illegal gambling operation and conspiring to obstruct the enforcement of state criminal laws. Two other defendants, Randall Wayne Roach and Kenny Amos Blount, were also charged in the superseding indictment with running an illegal gambling business, and with conspiring with Lovett to obstruct the enforcement of Georgia gambling laws. A fourth defendant, Randall Wayne Roach, Jr., was charged with participating in an illegal gambling business.
According to the allegations contained in the superseding indictment, since 2004, Roach, Blount, Roach, Jr. and others would operate an illegal gambling business in Savannah during holiday celebrations, such as St. Patrick’s Day, and other events. The illegal gambling business would operate in violation of Georgia gambling laws, but free from law enforcement intervention. As a Major and then Chief of SCMPD (formerly the Savannah Police Department), Lovett extorted cash payments from Roach and others. In return, Lovett provided protection to the illegal gambling business against enforcement of Georgia gambling laws. The superseding indictment alleges that in 2013, Lovett received cash payments on five separate occasions in exchange for protection against the enforcement of the criminal gambling laws of the State of Georgia, which payments came from the proceeds of the illegal gambling business.
Roach, Roach, Jr., Blount and Lovett each face a maximum sentence of 5 years in prison, $250,000 fine and 3 years of supervised release on the commercial gambling charge. Lovett, Roach and Blount also face a maximum sentence of 5 years in prison, $250,000 fine and 3 years of supervised release on the conspiracy to obstruct the enforcement of state criminal laws charge. Lovett faces a maximum of 20 years in prison, a $250,000 fine and 3 years of supervised release on each of the 5 extortion charges. An indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by the FBI. First Assistant United States Attorney James D. Durham and Assistant United States Attorney R. Brian Tanner are prosecuting the case on behalf of the United States. Any questions should be directed to Mr. Durham at (912) 201-2547Former Postal Worker Sentenced for Stealing IPhones from MailRead the Press Release
BOSTON – A Roxbury man was sentenced today for stealing iPhones from the mail and making false statements.
Mark Dozier, 58, was sentenced by Senior U.S. District Judge Mark L. Wolf to two years in prison, three years of supervised release and $595 in restitution. In March of this year, he pleaded guilty to theft of mail by an employee of the postal service and making false statements. Dozier has been in custody since his arrest in 2012.
While working as an employee at the U.S. Postal Service, Dozier was caught stealing iPhones from the mail sorting machine. He confessed to stealing 12 iPhones over the course of several weeks and reselling them at a local barbershop. Dozier also lied about his identity on his application to become a Postal worker, using his brother’s name and date of birth rather than his own.
United States Attorney Carmen M. Ortiz and Rafael Medina, Special Agent in Charge of the U.S. Postal Service, Office of the Inspector General, Northeast Area Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz's Public Corruption and Special Prosecutions Unit.
Former IRS Employee Sentenced for Identity Theft and Tax Fraud SchemeRead the Press Release
ATLANTA - Missy A. Sledge has been sentenced to four years and nine months in prison for mail fraud and aggravated identity theft in connection with a fraud scheme she carried out using her position as an IRS employee.
“As an IRS employee for over twelve years, Sledge reviewed suspicious returns to protect the government from being victimized by fraud,” said United States Attorney Sally Quillian Yates. “Instead, she used her IRS access to victimize 60 taxpayers, and cost the government over $500,000.00 in losses. Citizens file their taxes expecting government employees to handle their returns and trust that their information will be safe. Identity theft is a growing problem, one we combat daily.”
“The misuse of public office for private gain, especially by those employees who are entrusted with the fair and honest administration of our Nation’s tax laws, is a particularly heinous crime,” said J. Russell George, the Treasury Inspector General for Tax Administration. “In carrying out our duty to safeguard the integrity of the tax administration system, our office will continue to investigate vigorously allegations of corruption and to ensure that those responsible for misconduct are held accountable.”
According to United States Attorney Yates, the charges and other information presented in court: Sledge used her position as an IRS employee to carry out the scheme, which also involved the assistance of other individuals. In general, the other individuals would file fraudulent tax returns using the stolen identities of real taxpayers. These individuals would then provide the Social Security numbers associated with the fraudulent returns to Sledge. If the returns in question were routed to Sledge for review as part of her job, she would make sure that the fraudulent return payment was released by the IRS.
The scheme also involved some tax returns that were not fraudulent. Sledge would look for large, valid tax refunds pending in the IRS computer systems, and then provide the other individuals with information needed to fraudulently change the address of those taxpayers in the IRS systems. The valid refund would then be mailed to the address controlled by the individuals working with Sledge, rather than to the taxpayers' actual addresses. The individuals working with Sledge paid her a share of the proceeds from these activities.
As a result of Sledge's misconduct, a total of 60 taxpayers either had fraudulent tax returns filed or released using their social security numbers, or had valid refunds they were lawfully due redirected to criminals waiting to steal those refunds. The total loss to the government was $501,048.40, with a larger loss of $2,378,678.35 having been attempted, but rejected by the IRS before refunds were issued. Sledge's conduct continued until she was arrested at her desk at work on November 26, 2013.
Sledge, 47, of Atlanta, Ga., has been sentenced to four years and nine months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $501,048.40. Sledge was convicted on these charges on February 18, 2014, after she pleaded guilty.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant United States Attorney Alana R. Black prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Fokker Services B.V. Agrees to Forfeit $10.5 Million for Illegal Transactions with Iranian, Sudanese, and Burmese Entities-Company Will Pay Additional $10.5 Million in Parallel Civil Settlement-Read the Press Release
WASHINGTON – Fokker Services B.V., a Dutch aerospace services provider, has agreed to forfeit $10.5 million to the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by engaging in illegal transactions involving the export of aircraft parts, technologies, and services to customers in Iran, Sudan, and Burma. The company has also entered into a parallel settlement agreement with the Commerce Department’s Bureau of Industry and Security (BIS) and the Treasury Department’s Office of Foreign Assets Control (OFAC).
The announcement was made by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia (USAO-DC); Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office (FBI-WFO); and Eric L. Hirschhorn, U.S. Department of Commerce Under Secretary for Industry and Security. Today’s announcement concludes a multi-year investigation led by BIS, OFAC, FBI-WFO, ICE’s Homeland Security Investigations, the Defense Criminal Investigative Service, and the U.S. Attorney’s Office for the District of Columbia.
A criminal Information was filed today in federal court in the District of Columbia charging Fokker Services B.V. with one count of knowingly and willfully conspiring to violate the IEEPA, in violation of 18 U.S.C. § 371. Fokker Services waived the requirement of being charged by way of federal Indictment, agreed to the filing of the Information, and has accepted responsibility for its criminal conduct and that of its employees. In addition, as part of the deferred prosecution agreement reached with the U.S. Attorney’s Office for the District of Columbia, Fokker Services agreed to forfeit $10.5 million within five days of the approval of the agreement by the Court.
According to court documents, starting on or about late 2005 and ending on or about late 2010, Fokker Services violated U.S. laws by engaging in illegal transactions involving the export and re-export of aircraft parts, technology, and services to customers located in U.S.-sanctioned countries, specifically, Iran, Sudan, and Burma. Throughout this period, Fokker Services knowingly and willfully engaged in this criminal conduct, fully aware of the application of U.S. export laws, an issue which was repeatedly raised internally with the company’s management. In June 2010, Fokker Services made a disclosure of potential violations to BIS and OFAC in which the company acknowledged and accepted responsibility for its unlawful conduct.
Fokker Services’ criminal conduct included knowingly initiating, either directly or indirectly, 1,153 shipments of aircraft spare, repaired, or exchanged parts with a U.S. nexus to Fokker Services’ customers in Iran, Sudan, or Burma. Among those illegal transactions were 99 transactions involving Fokker Services’ customer, Iran Air, which was the subject of a special order from the U.S. Department of Commerce prohibiting Fokker or any third party from exporting U.S.-origin commodities to Iran Air or providing services to Iran Air. Fokker Services’ gross revenue for the shipments in violation of U.S. export control laws amounted to approximately $21 million.
“For years, Fokker Services treated U.S. export laws as inconveniences to be ‘worked around’ through deceit and trickery,” said U.S. Attorney Machen. “Today’s prosecution sends a clear message that there will be consequences for those who seek to profit from violating and circumventing U.S. trade laws.”
“Fokker Services violated the IEEPA by knowingly ignoring U.S. sanctions and engaging in illegal transactions which undermined the integrity of our national security. Today, the company has taken responsibility for their unlawful actions,” said Assistant Director in Charge Parlave. “Together with our partners at the Departments of Commerce, Treasury and Justice, the FBI will continue our efforts to safeguard U.S. interests and ensure that goods do not end up in the wrong hands.”
“The scope of today’s global settlement with Fokker Services highlights the egregious nature of the violations and points to the commitment of OEE to pursue and prosecute those responsible no matter where they are located," said Under Secretary of Commerce Hirschhorn. “OEE and our partner law enforcement colleagues will continue to use all means available to ensure that U.S. technology does not fall into the wrong hands.”
The Scheme
According to court documents, Fokker Services used a number of schemes to evade U.S. sanctions and export laws while continuing its business with customers located in U.S.-sanctioned countries and specifically designed to continue the company’s profit earnings in the sanctioned countries’ markets. Internally, Fokker Services described these as “work-arounds.”
Some examples of the work-arounds used by Fokker Services and its employees include the following: deliberately withholding aircraft tail numbers to U.S.-based repair shops, providing false tail numbers to U.S. and U.K. companies and repair shops, and stating that the parts submitted for repair by U.S.-repair shops were to be used as “stock” parts. Fokker Services engaged in this conduct as an intentional effort to conceal the company’s affiliation with customers located in U.S. sanctioned countries. On one occasion, Fokker Services provided a U.S. aerospace company with a work order that falsely represented that the aircraft part belonged to an airplane owned by a Portuguese airline when, in reality, the part actually belonged to an Iran Air aircraft. The U.S. aerospace company fixed the part and returned it to Fokker Services, who then shipped the part to Iran.
Other work-arounds were designed by Fokker Services to further the company’s efforts of continuing to engage in transactions in violation of U.S. export laws while also avoiding detection of U.S. authorities, for example, the company constructed and constantly updated a chart it called “the black list” that tracked which U.S. companies were more vigilant about export controls, and directed its business to those U.S. companies that were not on “the black list.” The company also deleted references to Iran in materials sent to its U.S. subsidiaries and U.S. repair shops. It changed an internal database that tracked parts to delete fields related to ultimate end-user information, and directed employees to hide activities and documents related to Iranian transactions when inspectors from the U.S. Federal Aviation Administration audited Fokker Services’ Dutch warehouse.
According to court documents, this conduct occurred in various business units within Fokker Services and certain policies and practices in furtherance of Fokker Services’ criminal conduct were carried out with the knowledge and approval of the company’s senior corporate managers, as well as with the knowledge of the company’s Legal and Export Compliance departments.
The Investigation
The Justice Department’s investigation of Fokker Services arose out of the company’s disclosure of potential violations to BIS and OFAC in June 2010. In its initial disclosure, Fokker Services acknowledged and accepted responsibility for its unlawful conduct. Over the next two-and-a-half years, Fokker Services conducted a vast internal investigation through outside counsel and disclosed additional violations of U.S. export laws.
Since the submission of its 2010 disclosure to U.S. authorities, Fokker Services has taken steps to enhance and optimize its sanctions compliance programs, including stopping all new business with customers located in U.S.-sanctioned countries; launching an employee disciplinary review to investigate and address the conduct of all employees, including senior management, who were involved in the apparent violations; adopting a new Export Compliance Program; and terminating relationships with sanctioned banks and closing its Iranian representative office and branch.
Fokker Services’ forfeiture of $10.5 million to the United States will settle forfeiture claims by the Department of Justice. In light of the company’s remedial actions to date and its willingness to acknowledge responsibility for its actions, the U.S. Attorney’s Office will recommend the dismissal of the Information in 18 months, provided Fokker Services fully cooperates with, and abides by, the terms of the deferred prosecution agreement.
In a related settlement announced today by the Commerce Department and the Treasury Department, Fokker Services has agreed to pay a $10.5 million civil penalty to settle charges by BIS and OFAC. The BIS settlement is subject to final review and approval by the Assistant Secretary of Commerce for Export Enforcement.
This investigation was conducted by the FBI’s Washington Field Office; the Boston and Miami offices of the BIS Office of Export Enforcement; the Washington, D.C. office of the BIS Office of Enforcement Analysis; the Boston field office of ICE’s Homeland Security Investigations; and the New Haven, Connecticut office of the Defense Criminal Investigative Service.
The prosecution is being handled by Assistant U.S. Attorney Maia L. Miller of the National Security Section of the U.S. Attorney’s Office for the District of Columbia. Former Assistant U.S. Attorneys Robert Bowman and Ann Petalas, along with Assistant U.S. Attorney George Varghese of the United States Attorney’s Office for the District of Massachusetts, also worked on the matter.
14-130Florida Man Sentenced in Manhattan Federal Court to 51 Months in Prison in Connection with $8 Million Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that SETH BEOKU BETTS, a principal of Betts and Gambles Global Equities, LLC (“Betts and Gambles”), was sentenced today to 51 months in prison by the Honorable Shira A. Scheindlin in connection with his role in a scheme to defraud a public university (the “University”) in the Midwest of more than $8 million. BETTS solicited money from the University for the purposes of trading in collateralized mortgage obligations (“CMOs”). He then misappropriated the funds, including at least $2 million to purchase luxury automobiles and a personal residence in Florida. BETTS previously pled guilty to committing securities fraud before Magistrate Judge Gabriel W. Gorenstein on February 18, 2014.
Manhattan U.S. Attorney Preet Bharara said: “Seth Betts purported to invest more than $8 million of a public university’s money in mortgage-backed securities. Instead he invested the university’s money in his own extravagant lifestyle, including luxury Italian automobiles and a beachfront Florida residence. With today’s sentence, Betts will trade in his life of luxury for life in a federal prison.”
According to a Complaint filed in Manhattan federal court, the defendant’s guilty plea, and sentencing:
Between July 2008 and December 2008, BETTS presented himself to the University as a principal of Betts and Gambles. In that capacity, he solicited the University’s investment in CMOs, which he claimed he would then sell to third-party buyers in short order at predicted profits. CMOs are fixed income mortgage-backed securities, in which Betts claimed he had expertise. As a result of his solicitation, the University invested approximately $8.165 million dollars of the University’s money with BETTS. BETTS never delivered any CMOs to the University or returned any funds prior to his arrest. Instead, he converted millions of dollars to his own use to purchase beachfront property, pay personal expenses, and buy multiple high-end automobiles, including a Ferrari and a Maserati.
In addition the prison term BETTS, 38, of Boynton Beach, Florida, was sentenced to three years of supervised release. He was also ordered to pay $8,165,000 in forfeiture and restitution, and a $100 special assessment fee.
Mr. Bharara praised the work of the Criminal Investigators of the United States Attorney's Office and the Federal Bureau of Investigation, which jointly investigated this case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Michael A. Levy and Telemachus P. Kasulis are in charge of the prosecution.
Florida Man Admits Stalking Connecticut Victim, Planting Bottle Bombs Containing Hydrochloric AcidRead the Press Release
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Deirdre M, Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that FRANK MENDOZA, 53, formerly of Jacksonville, Fla., pleaded guilty today before U.S. District Judge Robert N. Chatigny in Hartford to one count of interstate stalking.
“First, this defendant abused, threatened and stalked his victim, a woman who had attempted to end her relationship with the defendant,” stated U.S. Attorney Daly. “The defendant then planted acid-filled bottle bombs in the victim’s car and came dangerously close to permanently disfiguring her. Under the federal Violence Against Women Act, the Department of Justice is empowered with tools to prosecute domestic violence and stalking crimes. We commend the FBI Joint Terrorism Task Forces in Connecticut and Florida, and all of our partner investigative agencies who investigated this heinous crime in an effort to secure justice and provide safety for the victim.”
“Civilized societies must have zero tolerance for criminals like Mendoza who terrorize not only their victims but the communities in which they reside,” stated FBI Special Agent in Charge Ferrick. “The thorough multi-agency investigation into Mendoza’s crimes is indicative of exceptional cooperation among investigators focused on protecting the victim from future harm and seeing to it that justice prevails.”
According to court documents and statements made in court, MENDOZA began a romantic relationship with a woman in Jacksonville, Fla, in 2008. MENDOZA then became emotionally and psychologically abusive toward the victim. The victim also learned that MENDOZA had a serious prior criminal history and claimed to be affiliated with a gang. She also observed MENDOZA carrying a firearm. MENDOZA’s abusive and threatening behavior caused the victim to attempt to end the relationship.
In approximately September 2010, as part of a ruse, the victim told MENDOZA that she was moving to Rhode Island for a work-related training program. The victim instead moved to Stamford, Conn. In October 2010, MENDOZA learned that the victim had moved to Connecticut and began to place numerous harassing and threatening phone calls to her, her friends and her work colleagues.
In early November 2010, MENDOZA traveled from Florida to Connecticut, visited the victim’s residence and place of work, and then returned to Florida. On December 8, 2010, MENDOZA flew from Florida to New York City, rented a car, drove to the victim’s Connecticut residence, and placed two, two-liter bottles in the victim’s car. The bottles contained hydrochloric acid and an aluminum foil wick.
At approximately 11:00 p.m. on December 8, 2010, the victim approached her car and observed that the car’s interior had been dampened by a liquid. She also observed a bottle on the driver’s side floor. When she picked the bottle up, it began to smoke and fizz. She then gently placed the bottle down and ran from the car. The bottle then exploded.
The investigation revealed that the first bottle had exploded before the victim had reached the car.
MENDOZA has been detained since his arrest in Jacksonville on August 17, 2012.
The charge of interstate stalking carries a maximum term of imprisonment of 10 years and a fine of up to $250,000. If the binding plea agreement filed today is accepted by the court, MENDOZA will be sentenced to at least 84 months of imprisonment.
Judge Chatigny scheduled sentencing for September 3, 2014.
This matter has been investigated by the FBI Joint Terrorism Task Forces in New Haven and Jacksonville, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police, the New Haven Police Department, the Stamford Police Department, the Stamford Bomb Squad, the Stamford Fire Department and the Connecticut Department of Energy and Environmental Protection.
The case is being prosecuted by Assistant U.S. Attorneys Krishna Patel and Vanessa Richards.
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(203) 821-3722 [email protected]Father and Son Sentenced for Shooting Federal AgentRead the Press Release
McALLEN, Texas – Two Hargill men have received significant sentences for the July 2012 aggravated assault on a Homeland Security Investigations agent, announced United States Attorney Kenneth Magidson. A federal jury in McAllen convicted Pedro Alvarado, 43, and his son Arnoldo Alvarado, 20, on March 21, 2014, following a four-day trial.
Today, U.S. District Judge Randy Crane sentenced Pedro Alvarado to 120 months for aggravated assault of a federal agent and 120 months for discharging a firearm during and in relation to a crime of violence. The court ordered that the sentences run consecutive for a total sentence of 240 months of federal imprisonment followed by a three-year-term of supervised release. Arnoldo Alvarado will serve 72 months for the aggravated assault and a consecutive 120 months for discharging a firearm for a total sentence of 192 months in federal prison followed by three years of supervised release.
At trial, the jury heard that in the early morning hours of July 3, 2012, Homeland Security Investigations (HSI) agents received information regarding a tractor-trailer located near Hargill that was going to be used to transport a large load of marijuana. Based on this information, agents traveled to Hargill and set up surveillance. One of those agents parked near the residence of Pedro Alvarado. Unbeknownst to the agents, another group of individuals were also conducting surveillance of the same tractor-trailer for the purpose of stealing the load of marijuana that they believed the tractor-trailer contained.
At approximately 3:30 a.m., one of those individuals noticed several vehicles in the area, specifically, a vehicle parked near Pedro Alvarado’s residence and notified him. Pedro Alvarado then told his sons, Arnoldo, and another 16-year-old minor, to get their guns and get into their pickup truck.
Pedro Alvarado then drove the truck with his sons as passengers, without his headlights, near the location the agent was parked. As the truck approached, the agent began to drive away, at which time the 16-year-old minor began shooting with a .22 caliber rifle.
The agent attempted to get away, but Pedro Alvarado continued to pursue him at a high rate of speed, while Arnoldo Alvarado began to shoot at him with a 9 mm firearm. Approximately one mile into the chase, a bullet struck the agent in the back. Although injured, he continued to flee, ultimately landing him in a brush where he got out of the vehicle and managed to run to avoid being detected by this assailants.
Sometime thereafter, other agents located the agent and transported him to the hospital where he underwent surgery to repair his lung which was pierced by the bullet.
The subsequent investigation lead agents to the residence of Pedro Alvarado where agents conducted a search and found both weapons used during the assault hidden in the attic.
Both men have been in custody since their arrests July 3, 2012, where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI and HSI investigated. Assistant U.S. Attorneys Anibal J. Alaniz and James Sturgis prosecuted the case.
Elkton Man Sentenced to over 14 Years in Prison for Solicitation to Commit KidnappingRead the Press Release
Baltimore – U.S. District Judge William D. Quarles sentence Andres Dorantes Flores, age 43, of Elkton, Maryland today to 175 months in prison for soliciting others to kidnap a 10 year old boy.
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; Cecil County Sheriff Barry A. Janney, Sr.; and Cecil County State’s Attorney Ellis Rollins.According to Flores’ plea agreement, beginning in at least July 2012, Flores solicited others to kidnap a 10 year boy. The families of Flores and the boy had been friends. Flores approached an acquaintance and suggested kidnaping the boy and demanding a $300,000 ransom from the boy’s father. Flores continued to solicit the acquaintance to help with the kidnapping in subsequent meetings. Flores provided pictures of the boy and his family to the acquaintance.
On August 15, 2012 Flores arranged a meeting with the acquaintance and two men that Flores believed were from Philadelphia who had come to kidnap the victim as part of Flores’ plot. Flores told the men that he had thought the plan through and provided them with instructions to carry out the kidnapping. Flores arranged for the men take the boy from his home in Maryland to Philadelphia where Flores believed the men resided. Flores told the men that after they received the $300,000 ransom, they would each get $75,000. Flores was arrested following the meeting.
United States Attorney Rod J. Rosenstein praised the FBI, Cecil County Sheriff’s Office and Cecil County State’s Attorney’s Office for their work in the investigation and thanked the New Castle County, Delaware Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Eldorado, Illinois Couple Pleads Guilty to Bankruptcy FraudRead the Press Release
Follow @SDILNewsEarlier today, a couple from Eldorado, Illinois, pleaded guilty to bankruptcy fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Lucy J. McGill, 62, pleaded guilty to two counts of making false statements under penalty of perjury in a bankruptcy case, three counts of making false statements under oath in a bankruptcy case, and one count of falsifying records in a bankruptcy case. Lucy McGill’s husband, Gary G. McGill, 69, pleaded guilty to two counts of making false statements under penalty of perjury in a bankruptcy case and two counts of making false statements under oath in a bankruptcy case.
The McGills filed a chapter 7 bankruptcy case on February 25, 2009. The case was filed in the United States Bankruptcy Court in Benton, Illinois.
Federal law requires that debtors who file for bankruptcy must disclose all of their assets. In addition, debtors are required to disclose certain financial transactions that they conducted prior to filing bankruptcy. The purpose of these disclosures is to ensure that all available funds can collected to pay the creditors as much as possible on the amounts they are owed.
In pleading guilty today, Lucy and Gary McGill both admitted that they lied on a Statement of Financial Affairs that they filed with the Bankruptcy Court. The McGills falsely stated that $22,000 in two accounts in Lucy McGill’s name at SIU Credit Union belonged to Lucy McGill’s sister. In fact, that $22,000 had recently been paid to Gary McGill in settlement of two lawsuits. The McGills further admitted that they again lied on their Statement of Financial Affairs when they concealed the fact that they had recently given their son cash gifts totaling $6,800. The McGills continued to lie about these topics when they gave sworn testimony at a bankruptcy proceeding on April 3, 2009. Finally, Lucy McGill also admitted that she created fake receipts, purportedly showing that the cash in the SIU Credit Union accounts belonged to her sister, and then provided those receipts to the attorney administering her bankruptcy case.
In commenting on today’s guilty pleas, United States Attorney Wigginton stated: “Bankruptcy fraud cheats creditors out of what they are owed. The United States Attorney’s Office for Southern Illinois is committed to prosecuting individuals who commit this type of fraud and protecting the integrity of the bankruptcy system.”
“Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system and undermines public confidence in that system,” stated Nancy J. Gargula, United States Trustee for Southern Illinois, Central Illinois and Indiana (Region 10). “I am grateful to United States Attorney Wigginton and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.” The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill. The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the Southern District of Illinois Bankruptcy Fraud Working Group and U.S. Attorney.
The McGills will be sentenced on October 2, 2014, at the United States District Court in Benton, Illinois. The sentencing hearing will be conducted by United States District Judge J. Phil Gilbert. Each count of bankruptcy fraud is punishable by not more than 5 years’ imprisonment, and/or a $250,000 fine, and not more than three years of supervised release. The actual sentence will be determined by the court and will be guided by the United States Sentencing Guidelines.
The investigation is being conducted by the Federal Bureau of Investigation (“FBI”). The case is being prosecuted by Assistant United States Attorneys Scott A. Verseman.
EOIR's Office of the Chief Administrative Hearing Officer Announces Electronic Filing Pilot ProgramRead the Press Release
The Office of the Chief Administrative Hearing Officer (OCAHO), Executive Office for Immigration Review (EOIR), has launched a voluntary pilot program to test an electronic filing system in cases filed with OCAHO under 8 U.S.C. § 1324a and § 1324b. The pilot program will be in effect from May 30, 2014, until November 26, 2014. Parties who enroll in the pilot program with respect to a particular case within these dates will be permitted to continue utilizing electronic filing throughout the pendency of that case.
See more information about the Office of the Chief Administrative Hearing Officer Electronic Filing Pilot Program by visiting http://go.usa.gov/8wEP.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
EMT Sentenced for Role in Ambulance Fraud SchemeRead the Press Release
PHILADELPHIA – Khusen Akhmedov, 23, of Philadelphia, PA and Lancaster, PA, was sentenced today to 27 months in prison for his role in a health care fraud scheme involving Penn Choice Ambulance Inc., operating from Philadelphia, PA, Huntingdon Valley, PA and Camp Hill, PA. Akhmedov pleaded guilty on December 5, 2013, to conspiracy to commit health care fraud, false statements relating to health care matters, and paying kickbacks to patients, a total of 16 counts. Akhmedov, an EMT for Penn Choice, was indicted with Penn Choice owner Anna Mudrova and operators Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, and Valeriy Davydchik, all of whom have pleaded guilty.
The scheme involved more than $3.6 million in fraudulent claims submitted to Medicare. The defendants conspired to defraud Medicare by recruiting patients who were able to walk and could travel safely by means other than ambulance and who therefore were not eligible for ambulance transportation under Medicare requirements. The defendants, and others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants knew that the patients could be transported safely by other means and that many of them walked to the ambulance for transport. The defendants, themselves, or through others, paid illegal kickbacks to the patients as part of scheme. The defendants billed Medicare for these ambulance services as if those services were medically necessary and, as a result of the fraudulent billing, the Medicare program sustained losses of more than $1.5 million for this medically unnecessary method of transportation.
In addition to the prison term, U.S. District Court Judge Juan R. Sànchez ordered three years of supervised release, restitution in the amount of $582,665, joint and several with the co-defendants, a special assessment of $1,600 and forfeiture of any assets traceable to the offense.
In prior proceedings, defendants Valeriy Davydchik and Yury Gerasyuk, both ambulance drivers, were each sentenced to 24 months in prison; the corporation was ordered to pay restitution of $1,548,583.93 and ordered to cease all operations. The remaining defendants are awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Drug Traffickers Plead Guilty on Eve of TrialRead the Press Release
BROWNSVILLE, Texas - Jose Angel Marichalar, 33, Phillip Cross, 56, and Yisnel Garcia Gonzalez, 30, have all entered guilty pleas in a trial set to begin today, announced United States Attorney Kenneth Magidson. Marichalar, from Mission, pleaded guilty shortly before the jury was empanelled this morning, while Cross, from Indianapolis, Ind., and Gonzalez, from Miami, Fla., entered their guilty pleas late yesterday.
Marichalar was convicted of conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and conspiracy to launder money. He is also forfeiting his interest in several properties and numerous personal items, including tractors, trailers and jewelry, valued at more than $1 million. Additionally, as part of his plea agreement, Marichalar has also agreed to a $10 million money judgment against him.
Cross also pleaded guilty to the marijuana conspiracy, while Garcia pleaded guilty to possession with intent to distribute approximately 1,141 kilograms of marijuana that occurred during a traffic stop in Zapata County on July 12, 2012.
Evidence presented in support of the pleas, demonstrated that Marichalar, Cross, Garcia and others were part of a multi-state drug trafficking and money laundering organization that had existed since 2010. The drug trafficking organization, based out of the Rio Grande Valley, would hire out of state truck drivers to haul loads of produce with ton quantities of marijuana hidden in false compartments. Drug proceeds would then be transported back to the Rio Grande Valley. The conspiracy extended to Indiana, Kentucky, Illinois, North Carolina and Tennessee.
All three men will remain in custody pending their sentencings. Cross and Garcia will be sentenced before U.S. District Judge Hilda G. Tagle on Sept. 10, 2014, while Marichalar will be sentenced Sept. 14, 2014. At their hearings, they will all face a mandatory minimum of 10 years and up to life in federal prison as well as a maximum $10 million fine. Marichalar also faces a maximum of 20 years in prison and another $500,000 fine for the money laundering conspiracy.
The case was investigated by the Drug Enforcement Administration Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Sheriff’s Offices in Cameron and Zapata Counties, Hildalgo County High Intensity Drug Trafficking Area task force, Border Patrol and the Brownsville Police Department. Assistant United States Attorneys Angel Castro and Jody Young are prosecuting.Donahoo Pleds Guilty to Wire Fraud, Money Laundering, and Failure to File Tax Return in Investment Scheme; Loss to Victims is more than $2.5 MillionRead the Press Release
SALT LAKE CITY - James Ronald Donahoo, II, age 36, of St. George, Utah, entered guilty pleas to wire fraud, money laundering, and failure to file a tax return in U.S. District Court in Salt Lake City Thursday afternoon in connection with a scheme to defraud individuals and companies he recruited to invest in Paradigm Investing, Inc., a Utah corporation he exercised control over.
Sentencing is set for Oct. 7, 2014, at 2 p.m. before U.S. District Judge Dee Benson. The plea agreement includes a stipulated sentence of 48 months and supervised release of three years after Donahoo completes his prison sentence. Donahoo also agreed to pay restitution in the approximate amount of $2,793,501.17 to victims of the fraud. Donahoo is in custody.
As a part of the plea agreement, Donahoo admitted that he misrepresented to investors that if they would invest in Paradigm, they would make a 1 percent to 3 percent return on their investment, which would be paid out monthly. Paradigm never earned any revenues on any of its purported investments from which interest payments could have been made.
Donahoo admitted he told investors that Paradigm was in the business of making bridge loans or “hard money loans” to small businesses. According to the plea agreement, Paradigm did invest approximately $1.5 million in various businesses. However, the investments were not used to fund bridge loans or hard money loans as Paradigm’s investors were told. Instead, businesses run by Donahoo’s friends, associates, or family members received the money, according to the plea agreement.
He created false bank statements for Paradigm that he showed to investors to convince them that the investment was safe, low risk, and a good investment. He also told investors that the risk was mitigated by the fact that for every dollar invested, he had a dollar in the bank.
Donahoo made payments to investors totaling more than $267,000 out of investor funds in furtherance of what was a Ponzi scheme.
Donahoo admitted that on or about Dec. 5, 2008, he caused two investors to send a $100,000 wire transfer from California to Utah as an investment in Paradigm. On about December 11, 2008, he purchased fur coats in Park City in excess of $10,000. He admitted in the plea agreement that he knew this transaction involved money obtained from his criminal scheme.
He also admitted that he did not file a tax return for 2008, even though he transferred funds from the Paradigm bank account to his personal bank account totaling $335,000. He used those funds for personal purposes.
The case was investigated by special agents of IRS-Criminal Investigation and prosecuted by the U.S. Attorney’s Office in Salt Lake City.
District Court Approves Selection of Arnaldo Claudio as Technical Compliance Advisor to Oversee Critical Reforms of Puerto Rico Police DepartmentRead the Press Release
Today, U.S. District Judge Gustavo A. Gelpí approved the selection of Arnaldo Claudio to serve as Technical Compliance Advisor (TCA), overseeing the implementation of sweeping civil rights reforms under the Agreement for Sustainable Reform of the Puerto Rico Police Department. The agreement resolved a civil action filed by the Department of Justice in 2012 to protect individuals from the use of excessive force, unconstitutional searches and seizures and discriminatory policing by officers of the Puerto Rico Police Department (PRPD). According to the order of appointment, Claudio will begin his term on June 6, 2014.
Under the agreement, the department and the Commonwealth of Puerto Rico agreed to jointly select a TCA to assist the court and the public in determining whether critical reforms are implemented fully and in a timely manner. The reforms cover 11 core areas, including use of force, searches and seizures, bias-free policing, recruitment, promotions, training, supervision, discipline, community engagement and information technology. The TCA will serve a vital role in promoting compliance and the sustainability of reforms. The TCA will also provide substantive expertise and technical assistance to guide PRPD in its implementation efforts and assures the public that PRPD’s progress is evaluated in a reliable, independent and transparent manner.
The department and the commonwealth selected Claudio after an exhaustive review of potential candidates based on numerous objective factors. These factors included relevant experience with institutional reform, subject-matter expertise, Spanish language proficiency, impartiality, an ability to interact effectively with diverse communities and a strong commitment to civil rights and effective policing. Claudio’s proven record of outstanding performance and achievement demonstrate that he possesses the necessary skills and abilities to effectively carry out the TCA’s duties.
Claudio has the Spanish language proficiency that is contemplated by the agreement and is necessary to communicate effectively in Puerto Rico. He is firmly committed to meaningful community engagement and maintaining a consistent presence in Puerto Rico throughout the reform process. His exceptional work with police departments and criminal justice systems in the United States and around the world will assist in promoting compliance with critical structural and systemic reforms that are necessary to restoring public confidence and achieving effective and constitutional policing in Puerto Rico.
Claudio was born and raised in Puerto Rico. He attended the University of Puerto Rico and was commissioned a Second Lieutenant in the U.S. Army Military Police Corps. He earned a Master of Science Degree in Education from Jacksonville State University and is a graduate of the Inter-American Defense College. During his 30 years of military service, Claudio has held numerous highly sensitive positions culminating as Chief of Staff and Chief of Police of Joint Force Headquarters for the National Capital Region in Washington, D.C. In his current position as Interagency Program Director of the Joint Force Headquarters National Capital Region, he coordinates directly with local, state and federal law enforcement agencies and other national security partners. He also leads critical relationships with governmental and non-governmental agencies to ensure regional safety and security. Many of Claudio’s assignments have allowed him to work closely with police agencies and communities domestically, such as Washington, D.C. and Hawaii, and abroad, including Peru, Bolivia, Colombia and El Salvador. He served as Provost Marshal and Chief of Police of the Multinational Coalition Forces in Iraq, working tirelessly to promote democratic policing and human rights. He also served as Chief of Staff and Operations with the Peace Corps where he oversaw volunteer recruitment, selection and placement. Claudio’s remarkable skill, performance and dedication have been recognized with numerous military and civilian awards and decorations.
“Mr. Claudio’s extraordinary career and service to our nation has been marked by an unwavering commitment to basic principles of human dignity and safety for all people, both here and abroad,” said Associate Attorney General Tony West. “He now brings his exceptional skill and talent home to Puerto Rico to embark in the critical task of transforming the second largest law enforcement agency in the country into a modern, professional agency that serves and protects all residents with respect and fairness.”
“Reforming the Puerto Rico Police Department will take a collaborative and sustained effort over the course of many years, and Mr. Claudio has enthusiastically embraced that challenge to help restore public confidence and public safety to the people of Puerto Rico,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division. “We look forward to working closely with Mr. Claudio, the court, the commonwealth government, police officers and all of the communities that make up Puerto Rico to ensure the full implementation of fundamental civil rights reforms.”
In the coming days and weeks, the department will work with the commonwealth to assist the TCA in building a cohesive team of subject-matter experts to oversee all areas of the agreement and to engage broadly with PRPD and the community. With the start of his term, Claudio will work to evaluate PRPD’s efforts over the last year and will oversee the development of action plans that will guide implementation during the initial capacity-building phase of the agreement. The TCA’s assessments will include a thorough review of PRPD’s policies, training curricula, standard operating procedures, plans, protocols and other operational documents related to the agreement. The TCA will also assess whether the implementation of the agreement results in constitutional policing, increased community trust and the professional treatment of individuals by PRPD officers. To this end, the TCA will engage with a broad cross-section of community stakeholders, including representatives of civic and community organizations, minority communities, lesbian, gay, bisexual, transgender communities, student and labor groups, civil rights organizations, women’s advocacy groups and police officers to ensure they have a voice in the reform process.
District Judge Gelpí entered the agreement as an order in July 2013, following extensive negotiations and a thorough investigation by the Civil Rights Division. The investigation focused on allegations of use of excessive force, unconstitutional searches and seizures and discriminatory policing by officers of the PRPD. The department issued findings of violations and serious deficiencies in September 2011 and filed a civil action to remedy the violations in December 2012. The case was brought under the Violent Crime Control and Law Enforcement Act of 1994, which authorizes the Attorney General to file suit against government authorities to eliminate a pattern or practice of misconduct by state and local law enforcement officers.
A copy of the complaint, the final agreement and the September 2011 findings letter can be found at the department website Additional information about the Civil Rights Division and its enforcement of civil rights laws involving law enforcement agencies can be found on the division website .
Detroit Tax Return Preparer Pleads Guilty to Role in Conspiracy to File False Tax ReturnsRead the Press Release
A resident of Detroit, Michigan, pleaded guilty today to her involvement in a conspiracy to file fraudulent tax returns with the Internal Revenue Service, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Tiffiny Coleman, 35, entered the guilty plea before U.S. District Judge John Corbett O’Meara.
According to court records, Coleman was employed as a tax return preparer in Detroit. In 2010, she conspired with others to prepare and electronically file federal income tax returns for the 2009 tax year that were false and fraudulent. The conspiracy involved approximately 100 tax returns that stated that the taxpayers were employed by various businesses and had part of their wages withheld for federal income taxes when, in fact, Coleman and the others knew that the taxpayers were not employed and that the Forms W-2 were completely false. In total, the tax returns caused approximately $482,977 in tax refunds to be paid out.
Coleman’s sentencing was set for October 7, 2014 at 10:15 am. She faces a maximum term of imprisonment of ten years and a fine of $250,000. In addition, she will be required to pay restitution to the IRS in the amount of $482,977.
The case was investigated by special agents of the IRS Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Detroit Tax Preparer, Previously Convicted on Tax Charges, Found Guilty of Failing to Appear at 2013 Bond HearingRead the Press Release
The Justice Department, the Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration (TIGTA) announced that Matthew Bender, of Detroit, was convicted yesterday following a jury trial in the U.S. District Court for the Eastern District of Michigan of failing to appear at a bond hearing on July 2, 2013. The bond hearing had been set to adjudicate Bender's noncompliance with the conditions of his pretrial release on federal tax charges.
The evidence at trial showed that Bender attended a family reunion in Ohio and flew to Texas in the summer of 2013 after a warrant was issued for his arrest. Bender was apprehended by the U.S. Marshals Service on Aug. 13, 2013.
Bender was previously convicted by another Detroit jury in March 2014 of obstructing the IRS and nine counts of aiding and assisting in the preparation of false federal income tax returns. According to court documents and evidence produced at the March 2014 trial, Bender prepared over 3,000 tax returns between 2006 and 2011 and earned over $500,000 in tax preparation fees. However, Bender failed to report his own income to the IRS, either by filing false tax returns for himself or by failing to file his own tax returns at all. The evidence showed that Bender caused his customer’s tax refunds to be inflated by placing false deductions on their returns.
Following the most recent conviction, Bender remains detained pending sentencing for his convictions.
The case was investigated by special agents of IRS–Criminal Investigation and TIGTA. Trial Attorneys Kenneth Vert and Jeffrey McLellan for the Justice Department’s Tax Division prosecuted the case.
Criminal Complaint Filed Today in Federal Court Charges St. Paul Man with Sex Trafficking of MinorsRead the Press Release
MINNEAPOLIS—Today in federal court, a 25-year-old St. Paul man was charged by Complaint with sex trafficking of a minor and conspiracy to commit sex trafficking of a minor. Dontre D’Sean McHenry made his initial appearance this afternoon before United States Magistrate Judge Jeanne J. Graham. McHenry was temporarily detained and a final detention hearing is scheduled for tomorrow before Judge Graham.
According to allegations in the Criminal Complaint, between February 25, 2014 and June 4, 2014, McHenry engaged in criminal sex trafficking by exploiting three minor females and causing them to engage in commercial sex acts by force, threats of force, fraud, or coercion for the defendant’s profit.
A law enforcement affidavit filed in the case alleges that McHenry would communicate with “johns” or potential “johns” via text messages and online chat rooms to arrange commercial sex with three minor females.
On March 12, 2014, officers responded to a Backpage.com advertisement thought to be that of a juvenile sex trafficking victim. The information from the advertisement led investigators to the Motel 6 in Roseville where McHenry was found inside a hotel room with a 17-year-old female. Further investigation revealed that McHenry had also recruited a 15-year old female and a 16-year-old female for the purpose of engaging in commercial sex acts.
United States Attorney Andrew M. Luger stated that, “the allegations in the Complaint set forth a sophisticated, ongoing criminal sex trafficking business run by McHenry. The exploitation of minors for commercial sex will not be tolerated by this Office or our law enforcement partners.”
“Protecting our communities from those who engage in human trafficking is a top priority for Homeland Security Investigations,” said Special Agent in Charge J. Michael Netherland of the HSI St. Paul Division Office. “HSI is committed to working with our federal, state, and local law enforcement partners to investigate human trafficking, as well as working with community and faith-based organizations to identify, rescue, and assist victims of trafficking."
If convicted, McHenry faces a potential minimum sentence of 10 years in federal prison and a maximum of life imprisonment. All sentences are ultimately determined by a federal district court judge.
This case is the result of an investigation by Homeland Security Investigations, the St. Paul Police Department, the Minneapolis Police Department, the Rochester Police Department, and the Roseville Police Department. This case is being prosecuted by Assistant United States Attorney Laura M. Provinzino.
In 2012, Yuri Fedotov, the head of the United Nations’ Office on Drugs and Crime reported to those attending a U.N. General Assembly meeting that an estimated 2.4 million people worldwide are victims of human trafficking at any one time, with 80 percent of them being exploited as sex slaves. He also said approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice reports that an estimated 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.ice.gov/human-trafficking/The charges contained in a criminal complaint are mere allegations and defendants are presumed innocent unless and until proven guilty.
Crawford Sentenced in the District of Montana for One of First Strangulation Convictions in the CountryRead the Press Release
The United States Attorney's Office announced that ZACKARIA JULY CRAWFORD, 22, of Browning, Montana, was sentenced to a term of 30 months imprisonment, three years supervised release, and a special assessment of $100 during a federal court hearing in Great Falls, Montana, on March 18, 2014, before U.S. District Judge Brian Morris.
This is the first case in the District of Montana that a defendant has been sentenced for Strangulation since the inception of the statute. It is also one of the first such cases in the entire country.
U.S. Attorney Mike Cotter said the conviction and sentence of CRAWFORD represents the office's dedication to working with reservations to ensure that Native American women and families are protected from domestic violence. "The strangulation statute and VAWA offers the U.S. Attorney's Office another tool to fight crimes of domestic violence that are inflicted against women and children on Indian reservations. Victims of one episode of strangulation are six times more likely to be a victim of attempted homicide by the same partner. These same victims are seven times more likely to actually die at the hands of their loved ones. It is this type of violence that tears apart families, damages children, and can have lethal consequences. The ability to now charge crimes of strangulation will help in stopping violence before it escalates any further."
On March 7, 2013, President Obama signed into law the reauthorization of the Violence Against Women Act (VAWA). This law contains provisions that significantly improve the safety of Native women and that importantly allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. Many of these critical provisions were drawn from the U.S. Department of Justice's July 2011 proposal for new Federal legislation to combat violence against native women.
The tribal provisions in VAWA address three significant legal gaps by: (1) recognizing certain tribes' power to exercise concurrent criminal jurisdiction over domestic violence cases, regardless of whether the defendant is Indian or non-Indian; (2) clarifying that tribal courts have full civil jurisdiction to enforce protection orders involving any person, Indian or non-Indian; and (3) creating new federal statutes to address crimes of violence, such as strangulation, committed against a spouse or intimate partner and providing more robust federal sentences for certain acts of domestic violence in Indian country.
These steps have been taken, at least in part, because a recent Center for Disease Control and Prevention survey found that 46% of Native American women have experienced rape, physical violence, or stalking by an intimate partner in their lifetime.
CRAWFORD was indicted on December of 2013 by a federal grand jury. He filed a motion to change his plea in January of 2014. That plea was accepted by Judge Morris on March 14, 2014.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved that CRAWFORD strangled his victim until she lost consciousness and urinated in her pants. The beating continued for approximately twenty minutes. The victim ultimately escaped the house, but CRAWFORD jumped onto the vehicle hood as the victim drove away. CRAWFORD eventually fell off the hood, and the victim went to the hospital where she was treated for strangulation. At sentencing, Weldon stated, "Deterrence of these crimes in society, as well as the Blackfeet Indian Reservation, is critical. To deter these crimes will help to save future lives, properly punish defendants who engage in such conduct, will protect women from future abuse by the defendant, and will help end the cycle of violence that currently exists in and around Montana."
Unfortunately, the impacts of strangulation do not only exist in Montana. They are widespread across the United States. Victims of strangulation have testified before the United States Sentencing Commission, explaining the circumstances behind strangulation and the impacts that such acts leave. One victim explained her experience as follows:
I write to provide the Commission my experience as a crime victim who experienced strangling and suffocation.
After two years of marriage filled with verbal abuse, shoving, and other physical abuse, one night my husband threw me down on the bed and began strangling me. Unlike any other way that he had attacked me in the past, this horror instantly sent me to a level of terror and trauma I had never known in my whole life. I knew I was seconds away from dying. This was a fear unlike anything I had ever known. Everything was suddenly different in my whole consciousness. I was going to die. The unthinking rage in his eyes made that clear.
He had even pulled a gun on me once, slapped me black and blue, but nothing felt as scary as this. There was that first part of the attack that so utterly terrified me as I anticipated my imminent death, panicking with what I could do. The fighting for freedom, the pain of his hands around my neck. Then as I began to suffocate, I could feel myself dying. Gasping for breath, desperate for air. Feeling myself slipping away, so fully conscious and hyper aware. And watching him-how personal the rage was. How he was using his bare hands to kill me-it was so intimate, he was so close to me. His skin on my skin. Like drowning, trapped in the water beneath the ice, the panic, the desperation to breathe, yet not being able to.
He felt me going limp and thankfully let go. I coughed myself back to life. What I learned in the days and the weeks after was the on-going and constant re-traumatization of the aftermath of the strangulation. For weeks, every time I moved my head, I was grabbed with pain. I couldn't sleep, I couldn't eat or drink well. Every move was a painful reminder. I had to take time off work without pay to cover up the worst of it, then I had to lie to deal with answering questions about the bruises, etc., at my teaching job. The aftermath was a constant reminder of what had happened. [Twenty] years later it is as vivid to me as any moment of my life.
The neck is so easy to grab, so vulnerable, so vital to all life, connecting breathing and heart to mind. The viciousness and harm of this terroristic act is far different than mere broken bone or a physical injury. I have suffered the range of these injuries and
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that CRAWFORD will likely serve all of the time imposed by the court. In the federal system, CRAWFORD does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The CRAWFORD investigation was conducted by the Federal Bureau of Investigation.
Conspirator in Stolen Identity Refund Fraud Conspiracy Involving More Than 150 Victims Is Sentenced to Nearly Five Years in Federal PrisonRead the Press Release
DALLAS — At a sentencing hearing held this morning before Chief U.S. District Judge Sidney A. Fitzwater, Selemani Hakizimana was sentenced to 57 months in federal prison and ordered to pay approximately $362,000 in restitution, following his guilty plea in February 2014 to one count of conspiracy to commit theft of public money, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Hakizimana has been in custody since his arrest in August 2013 at Hartsfield-Jackson Atlanta International Airport, according to information presented when he made his initial appearance in federal court in the Northern District of Georgia. Hakizimana’s indicted co-conspirator, Dizzy Kisonga, remains a fugitive.
According to the factual resume filed in the case, Hakizimana and Kisonga made an agreement to steal, and convert for their own use, income tax refunds by submitting fraudulent tax returns. In fact, according to information presented at today’s sentencing hearing, the scheme involved 154 victims.
The investigation began in March 2012 when Kisonga attempted to deposit five Refundo, Rush Tax Inc. checks at an Irving, Texas branch of Bank of America, according to the factual resume. Refundo, however, had placed a stop payment on each of the checks. Believing the checks were forged, bank officials notified the Irving Police Department.
An Irving Police Department officer arrived at the bank and met with Kisonga, who claimed to have prepared tax returns for the people named on the refund checks. Kisonga advised, according to the factual resume, that he had loaned the customers money while their tax returns were processed, and once the refunds were issued, the customers endorsed the checks and gave them to Kisonga. After depositing the refund checks, Kisonga advised he planned to give the customers the leftover funds, minus their initial loan amount.
Kisonga, according to the factual resume, admitted to having additional refund checks in his car. The officer determined that each of the seven checks located in the vehicle was already endorsed and made payable to a different person. The officer also found and seized a handwritten note from the car that contained the names of the five individuals listed on the Refundo tax return checks, and next to each name were the last four digits of the individual’s social security number.
Law enforcement executed a search at Kisonga’s house in April 2012 and learned that the five Refundo checks and the other checks found by the Irving Police Department belonged to an acquaintance named Selemani Hakizimana. According to Kisonga, Hakizimana game him the refund checks, already endorsed, while at a nightclub in Addison, Texas. According to their agreement, Kisonga kept a percentage of the checks’ value and gave the remainder to Hakizimana.
Forensic evidence established, according to the factual resume, that Hakizimana and Kisonga communicated via text messaging. These texts contained personal identifying information of several individuals as well as messages from Hakizimana instructing Kisonga to wire transfer money to domestic and foreign bank accounts. A review of Kisonga’s bank statements revealed that in 2012, he sent $275,000 in wire transfers to Hakizimana’s bank account.
Internal Revenue Service Criminal Investigation and the Irving Police Department investigated. Assistant U.S Attorney Aaron Wiley prosecuted.
Chicago Man Sentenced to 6 Years in Prison for Heroin Conspiracy in Fox Valley and Northeast WisconsinRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on June 3, 2014, Lamarcus J. Cargill (age: 27) of Chicago, Illinois, was sentenced to 72 months in federal prison by Chief United States District Judge William C. Griesbach. Cargill had previously entered a guilty plea to a single count of conspiracy to distribute heroin.
According to the plea agreement and other documents filed with the court, Cargill was recruited to come to the Fox Valley area by his brother-in-law and co-conspirator, Sherman M. Threets, to act as the “muscle” in Threets’ heroin distribution business. In this role, Cargill was expected to collect drug debts, deliver heroin, and on one occasion, commit the arson of a vehicle of an individual who owed the drug conspiracy money.
In pronouncing sentence, Chief Judge Griesbach noted the devastating effect that heroin has had throughout northeast Wisconsin, as well as the highly dangerous nature of the arson carried out by Cargill in his attempt to collect on a drug debt. Chief Judge Griesbach concluded that a “just result” could only be achieved through a considerable prison sentence. In addition to the prison sentence, Cargill was ordered to spend an additional 72 months on Supervised Release.
The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group, the Winnebago County Sheriff’s Office and the Oshkosh Police Department. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.Certified Public Accountant Associated with Cadillac Ranch Restaurants Pleads Guilty to Tax ChargesRead the Press Release
Larry Couchot, 59, a certified public accountant (CPA) from Dayton, Ohio, who is the president and part owner of an accounting firm in Centerville, Ohio, and prepared the tax returns of businessmen associated with Cadillac Ranch restaurants, pleaded guilty today to tax charges, the Justice Department and Internal Revenue Service (IRS) announced.
According to documents filed with the court, Couchot admitted that for tax years 2006 through 2010, he assisted in the preparation of false individual income tax returns for a group of individuals associated with the Cadillac Ranch restaurants, which caused a tax loss of over $191,000 to the IRS. On May 15, 2014, Jon Field from Dublin, Ohio, along with Eric Schilder, of Marion, Ohio, and Paul Butler, also from Dublin, pleaded guilty to tax charges related to Cadillac Ranch.
According to documents filed with the court, during the period 2006 through 2010, Couchot was aware that these individuals used a substantial amount of company funds to pay for personal expenses, including payments for their personal cars, car insurance, country club dues, personal credit card charges and their individual income tax liabilities. Couchot also admitted that he was aware that one individual used company funds to pay for other personal expenses, including lawn services, repairs and maintenance to personal residences, granite counter tops and TV and audio systems.
Couchot admitted that he prepared false federal income tax returns that failed to report these items as income on two individuals’ income tax returns. Couchot pleaded guilty to aiding and assisting in the preparation of a false income tax return for the year 2009 for Jon Field and to preparing a false income tax return for Eric Schilder for the year 2007, which reported only $68,000 of income. In contrast, the business records of the company indicated Schilder earned over $129,000 in income in that year. Couchot admitted that after the false return was filed with the IRS on behalf of Schilder, he created a false summary that he retained in his records to support the false income reported on that return.
At sentencing, Couchot faces a statutory maximum sentence of three years in prison, a $250,000 fine and one year of supervised release for each of the two charges.
The case was investigated by IRS-Criminal Investigation, and is being prosecuted by Trial Attorney Richard M. Rolwing and Senior Litigation Counsel John E. Sullivan of the Justice Department’s Tax Division. Additional information about the Tax Division and its enforcement efforts can be found at the division website Additional information about tax fraud schemes can be found on the IRS-Criminal Investigation website
Campaign Worker Pleads Guilty to Buying Votes in Donna School Board ElectionRead the Press Release
McALLEN, Texas – A campaign worker pleaded guilty today for paying voters to vote in the November 2012 Donna school board election, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Guadalupe Escamilla, 72, of Weslaco, pleaded guilty to one count of vote-buying before Chief U.S. District Judge Ricardo Hinojosa. She faces a maximum penalty of five years in prison and a $10,000 fine. Sentencing is set for Aug. 29, 2014.
According to a factual statement read during the plea hearing, a general election was held on or about Nov. 6, 2012, in Donna, which included candidates for the presidential election, as well as various state, county and local offices, including the members of the Donna School Board. Escamilla assisted in the campaign to elect candidates to the Donna School Board. In the course of that work, Escamilla knowingly and willfully paid and offered to pay voters for voting in this election. In addition, she indicated during the plea hearing that at least two candidates gave her money to pay to voters for voting in the election.
Two other campaign workers, Rebecca Gonzalez, 44, and Diana Balderas Castaneda, 48, of Donna, have pleaded guilty to the same charge. They are awaiting sentencing.
This case was investigated by the FBI. Assistant U.S. Attorney Leo J. Leo and Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Public Integrity Section in the Justice Department’s Criminal Division are prosecuting the case.
Camden Man Sentenced to 37 Months in Prison for Exchanging More Than $2.5 Million in Snap/Food Stamp Benefits for CashRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 37 months in prison for stealing more than $2.5 million dollars from the U.S. Government through a food stamps scheme, U.S. Attorney Paul J. Fishman announced.
Alexander D. Vargas, 35, previously pleaded guilty before U.S. District Court Judge Joseph H. Rodriguez to an information charging him with stealing U.S. Government monies during a scheme in which he purchased Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps) for approximately 50 cents on the dollar at the local grocery store he managed in Camden. Vargas was detained after his arrest on May 16, 2013, and his detention was continued.
According to documents filed in this case and statements made in court:
From January 2012 through December 2012 Vargas managed Eddie’s Grocery Store, a small store in Camden that was authorized to accept SNAP benefits. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for food stamp benefits. However, they may not exchange food stamp benefits for cash.
Every food stamp recipient receives an Electronic Benefits Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept food stamp benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a secret Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. If the transaction is authorized, the amount of the purchase is then deducted electronically from the food stamp benefits reserved for the customer, and the amount is credited to the retailer’s designated bank account.
Eddie’s Grocery designated a bank account at Sovereign Bank to receive the reimbursements for SNAP benefits. Bank records listed Vargas and another individual as managers of Eddie’s Grocery.Eddie’s Grocery was first approved to participate in the SNAP program in 2007. In his application to participate in SNAP, the owner estimated that Eddie’s Grocery would generate receipts of approximately $280,000 annually, or an average of $23,333 per month. The volume of SNAP benefits reimbursement received at Eddie’s Grocery substantially exceeded those estimates, indicating large scale food stamp fraud. From February 2012 through November 2012 the SNAP redemptions were more than $2.8 million greater than the estimates.
In addition to the high volume of SNAP benefits redemptions, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of a cooperating witness and an undercover law enforcement officer. During a series of five transactions from June 7, 2012, through Oct. 4, 2012, law enforcement agents directed a cooperating witness and an undercover law enforcement officer to go into Eddie’s Grocery and exchange $1,359.75 in SNAP benefits for $650 cash.
A review of the bank records for the Eddie’s Grocery account showed total cash withdrawals of $3,109,776 for the 2012 calendar year. Records from Feb. 15, 2012, (when defendant Alexander Vargas was added as an authorized cosigner on the account) through December 2012, showed $2,548,510 in cash withdrawals – of which Vargas’ name was on 40 withdrawals totaling $1,869,266.
In addition to the prison term, Judge Rodriguez sentenced Vargas to three years of supervised release and ordered him to pay $2,791,430 in restitution.
U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires Jr. in New York; the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
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Defense counsel: Jeffrey C. Zucker Esq., CamdenCamden Accountant Found Guilty of TheftRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that former C.P.A. Joseph Glenn Folsom, Jr., age 61, of Camden, has been convicted of four counts of Interstate Transportation of Stolen Money, a violation of 18 U.S.C. § 2314, after a three-day trial in Columbia that concluded Wednesday. United States District Judge Joseph F. Anderson, Jr., of Columbia presided over the trial and will sentence Folsom at a later date.
Evidence presented at the trial established that Glenn Folsom prepared the taxes for “E.F.” and her husband for thirty years. E.F. requested Folsom to draft her will in December 2006. He did so, naming himself as the executor. When she died ten months later, Folsom used his power as executor to steal funds from the estate and buy classic cars, an airplane, and lake property for himself. In all, he stole approximately $580,000.
“The United States Attorney’s Office will continue to prosecute those who abuse the trust placed in them by our most vulnerable citizens, in this case, an elderly woman and her family. We are grateful for a system of justice that holds Glenn Folsom and those like him accountable for their actions,” said Mr. Nettles.
David A. Thomas, Special Agent in Charge of the F.B.I., said, “We are pleased by the resolution of this matter. This individual betrayed the confidence and trust placed in him, and the financial losses in this case were staggering. We will continue working with our partners to identify and stop those who line their own pockets at the expense of others.”
Mr. Nettles stated the maximum penalty for Interstate Transportation of Stolen Money is imprisonment for 10 years and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston Holliday of the Columbia office is prosecuting the case.California Man Sentenced to 10 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
PITTSBURGH - A resident of Elk Grove, Calif., has been sentenced in federal court to 10 years imprisonment, to be followed by five years of supervised release, on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Joseph Rojas, 28.
According to information presented to the court, Rojas conspired to distribute in excess of 50 grams of methamphetamine. Rojas acknowledged that he was responsible for distributing one pound of “ice,” a pure form of methamphetamine. The “ice” seized in this case was over 90% pure.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation leading to the successful prosecution of Rojas.
Business Pleads Guilty to $3 Million Scheme to Sell Foreign Versions of BotoxRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Alton, Ill., business owner and his company pleaded guilty in federal court today to distributing more than $3 million worth of foreign Botox and Juvederm in the United States.
Christopher Carstens, 49, of Alton, and his company, Orthopaedic Solutions, Inc., pleaded guilty before U.S. district Judge Howard F. Sachs to violations of the Federal Food, Drug and Cosmetic Act. Orthopaedic Solutions pleaded guilty to the felony charge of introducing a misbranded drug into interstate commerce. Carstens pleaded guilty to a misdemeanor charge.
Carstens and Orthopaedic Solutions pleaded guilty to introducing foreign Botox into interstate commerce (by shipping it across state lines via FedEx) in August 2009. The Botox was not approved by the FDA for distribution in the United States; rather, it was labeled for use in Great Britain. Other Botox was labeled for use in the United Arab Emirates, Bahrain, Kuwait, Lebanon, Oman and Palestine. The foreign Botox was misbranded in that its labeling failed to bear adequate directions for use, failed to bear adequate “black box” warnings and failed to bear the symbol “Rx only.”
Carstens admitted that approximately 5,879 units of foreign Botox, Juvederm 2, and Juvederm 3 were distributed by Orthopaedic Solutions to doctors or other health care professionals in the United States between 2008 and 2011, at a retail value of approximately $3,058,183. (Juvederm is a clear, biodegradable gel implant that is injected into the skin to correct wrinkles and folds.)
Undercover FDA agents purchased the foreign and mislabeled Botox and Juvederm from Orthopaedic Solutions from June 22, 2009, through Dec. 21, 2010.
Under the terms of today’s plea agreement, Orthopaedic Solutions must forfeit $374,476 to the government (with $80,000 due at the time of sentencing and $3,505 paid each month, until paid in full). Carstens must pay a $50,000 fine (with $10,000 due at the time of sentencing and $667 paid each month thereafter until paid in full). A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Jane Pansing Brown and Lucinda S. Woolery. It was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigation.
Bucks County Man Indicted on Child Porn ChargesRead the Press Release
Thomas Silber, 50, of Yardley, PA, was charged today, by indictment with 10 counts of knowingly receiving, and attempting to receive, visual depictions, that is, DVD movies, depicting child pornography. According to the indictment, between February 2007 and October 2010, Silber received 10 DVD movies, using the internet, which were shipped and transported in interstate and foreign commerce, and contained materials that had been shipped and transported in interstate and foreign commerce. The producing of these visual depictions involved the use of minors engaging in sexually explicit conduct, and such visual depictions were of minors engaging in sexually explicit conduct.
If convicted the defendant faces a maximum possible sentence of 200 years in prison, a lifetime of supervised release, and a $1,000 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the U.S. Postal Inspection Service. It and is being prosecuted by Assistant United States Attorney Michelle Morgan.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Boise Woman Pleads Guilty to Delivery of A Controlled SubstanceRead the Press Release
BOISE – Brittany Nicole Tillema, 25, of Boise, Idaho, pleaded guilty today in federal court to one count of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. Sentencing is set before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise on August 25, 2014.
According to court documents, on or about October 18, 2012, Tillema knowingly and intentionally distributed to an undercover police officer, 32 pills of 80 mg Oxycontin, which contains oxycodone, a Schedule II narcotic and controlled substance.
This investigation was initiated by the Meridian Police Department and investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Service’s Office of Inspector General.
Board-Certified New Jersey Pediatrician and Internist Sentenced to 20 Months in Prison for Taking KickbacksRead the Press Release
NEWARK, N.J. – A board-certified pediatrician and internist from Morris County, N.J., was sentenced today to 20 months in prison for soliciting and taking cash and rental payments as kickbacks for his patients’ diagnostic testing referrals, U.S. Attorney Paul J. Fishman announced.
Chikezie Onyenso, 55, of Randolph, N.J., was convicted on Oct. 15, 2013, after a three-week trial before U.S. District Judge Claire C. Cecchi, of conspiracy to solicit and receive kickbacks from a diagnostic testing facility called Orange Community MRI LLC (Orange MRI), and of soliciting and taking such kickbacks from Orange MRI. Judge Cecchi imposed the sentence today in Newark federal court.
Including Onyenso, 18 defendants – including 16 doctors – have been convicted in connection with the government’s ongoing investigation of illegal payments made by Orange MRI.
According to documents filed in this case and the evidence at trial:
Onyenso was a licensed and board-certified pediatrician and internist who owned his own medical practice, Total Support Medical Group, in Irvington, N.J. From the summer of 2010 through December 2011 he conspired to take illegal kickbacks in exchange for sending his patients to Orange MRI. Onyenso sought and accepted thousands of dollars of cash in envelopes in exchange for referring his Medicare and Medicaid patients to Orange MRI for MRIs and CAT scans. For his ultrasound referrals, Onyenso received from Orange MRI more than $25,000 in kickback payments disguised as rental payments and documented by a bogus, $1,000-per-square-foot lease. He was recorded taking cash kickbacks in his Irvington office on Oct. 11, 2011, and Nov. 22, 2011.
In addition to the prison term, Judge Cecchi sentenced Onyenso to two years of supervised release, fined him $40,000 and ordered him to forfeit $42,176.Ashokkumar Babaria, 64, of Moorestown, N.J., Orange MRI’s former medical director, has been ordered to forfeit $2 million in revenue from corrupt referrals. Chirag Patel, 38, of Warren, N.J., Orange MRI’s former executive director, awaits sentencing and has agreed to forfeit $89,180 in corrupt gains. In addition, health care providers, including Onyenso, have agreed to or been ordered to forfeit a total of $429,666 in illegal cash kickbacks.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, and criminal investigators from the U.S. Attorney’s Office, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorneys Scott B. McBride, deputy chief of the Economic Crimes Unit, and Joseph G. Mack, deputy chief of the Health Care and Government Fraud Unit, in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $500 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Alan L. Zegas Esq., Chatham, NJ
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