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Friday 18 April 2014
Billings Woman Sentenced to Prison for Drug ViolationsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on April 16, 2014, before U.S. District Judge Donald W. Molloy, KIMBERLY ANN DAHL, 33, of Billings, was sentenced to a term of 66 months' imprisonment and 5 years supervised release.
Dahl was sentenced in connection with her January 2014, guilty plea to possession with intent to distribute methamphetamine. In an Offer of Proof filed by Assistant U.S. Attorney Lori Suek, the government stated that on August 20, 2013, agents with the Billings drug task force were contacted by Montana State probation and parole regarding the defendant. Probation officers were at the defendant's home when, during a probation search, they located 24 individually packaged bags of methamphetamine (660.7 grams of actual meth) under the defendant's bed in her bedroom. The defendant was arrested on a probation violation.
On August 21, 2013, agents with the Billings drug task force went to the jail to interview the defendant. She provided a statement about how she acquired the methamphetamine under
She identified and explained how she met the individual that arranged for the methamphetamine, found under her bed, to be driven from California to Billings for resale. The defendant stored the methamphetamine under her bed - she agreed to do so until it was sold. The defendant would provide an ounce of methamphetamine at a time to the seller. In addition, on a couple of occasions, the defendant found customers for the methamphetamine and arranged the sales.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Another Defendant Sentenced in Identity Theft Tax Refund Fraud and Access Device Fraud SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce that Andrew Ware, 27, of Lauderhill, was sentenced today to 70 months in prison, to be followed by three years of supervised release for his participation in a stolen identity tax refund scheme and an access device fraud scheme that resulted in the submission of over $137,000 in fraudulent tax refund claims and over $49,000 in unauthorized access device purchases. Ware previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud, conspiracy to commit access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1349, 1343, 1029(b)(2) and 1028A(a)(1), respectively.
Co-defendants Alex Dontfred, 29, David Tilus, 27, Sherika Rowe, 20, Fritznel Etienne, 24, and Latonya Ware, 27, all of Lauderhill, were previously sentenced. Dontfred was sentenced on March 18, 2014 to 46 months in prison, followed by three years of supervised release, and was ordered to pay forfeiture of $49,561.88 and restitution in the amount of $45,711.10. Tilus was sentenced on March 10, 2014 to 70 months in prison, followed by three years of supervised release, and was ordered to pay $188,322 in restitution. Rowe was sentenced on March 13, 2014 to 45 months in prison, followed by three years of supervised release, and was ordered to pay a money judgment of $136,538 and restitution in the amount of $136,535. Etienne was sentenced on March 14, 2014 to 34 months in prison, followed by two years of supervised release, and was ordered to pay a money judgment of $11,204 and restitution in the amount of $3,844.81. Latonya Ware was sentenced on March 10, 2014 to 34 months in prison, followed by three years of supervised release, and was ordered to pay a money judgment of $136,535 and restitution in the amount of $136,535.
Dontfred previously pled guilty to one count each of conspiracy to commit access device fraud and access device fraud, in violation of Title 18, United States Code, Sections 1029(b)(2) and 1029(a)(2), respectively. Tilus previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud, conspiracy to commit access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1349, 1343, 1029(b)(2) and 1028A(a)(1), respectively. Rowe previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud and aggravated identity theft, in violation of Title 18, United States Code, Section 1349, 1343 and 1028A(a)(1), respectively. Etienne previously pled guilty to one count each of access device fraud and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A(a)(1), respectively. Latonya Ware previously pled guilty to one count each of conspiracy to commit wire fraud and aggravated identity theft, in violation of Title 18, United States Code, Section 1349 and 1028A(a)(1), respectively.
According to court documents, Andrew Ware, David Tilus, Latonya Ware and Sherika Rowe obtained the personal identifying information (PII) of numerous identity theft victims, including their names, dates of birth, and social security numbers. Latonya Ware stole patients' names and social security numbers from a medical office where she worked, and gave the PII to Tilus and her cousin, Andrew Ware. Rowe electronically filed fraudulent tax returns utilizing the victims’ names and social security numbers, and the fraudulent refunds from these returns were loaded onto prepaid debit cards that Tilus and Andrew Ware used to purchase gift cards and other merchandise from retail stores. Fraudulent refunds claimed by Andrew Ware, Tilus, Latonya Ware and Rowe from the stolen identities totaled approximately $137,132.
Court documents state that Andrew Ware, David Tilus, Jaqwayn Henry, Alex Dontfred and Fritznel Etienne utilized victims’ access devices, without their authorization, to purchase merchandise totaling at least $1,000 in a single year. These defendants obtained credit card numbers from various victims and used these stolen access devices to purchase merchandise, gift cards and prepaid debit cards for later use. The total amount of fraudulent charges made or attempted to be made by Andrew Ware, Tilus, Henry, and Dontfred utilizing the stolen credit cards is $49,561.88. From approximately January 20, 2012 through January 22, 2012, the total amount of fraudulent charges made or attempted to be made by Etienne utilizing a stolen credit card number is $11,942.23.
Co-defendant Jaqwayn Henry, 23, of Lauderhill, is a fugitive. The indictment was dismissed against Latanya Ware.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, and BSO. The case is being prosecuted by Assistant U.S. Attorneys Alicia Shick and Harry Wallace.
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.
Anchorage Man Indicted by Federal Grand Jury for Wire Fraud Theft of Government Funds, Federal Employees' Compensation Act Fraud, and Social Security FraudRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Amancio Zamora Agcaoili, Jr. was indicted by a federal grand jury in Anchorage for wire fraud, theft of government funds, Federal Employees’ Compensation Act fraud, and social security fraud.
Agcaoili, 56, is the sole defendant named in the 18-count indictment, together with two forfeiture allegations.According to the indictment, between at least on or about February 12, 2009 and continuing thereafter until the present, Agcaoili, a United States Postal Service employee, devised and participated in a scheme to defraud the Department of Labor Office of Workers’ Compensation Program and the Social Security Administration Disability Insurance Benefits program of funds totaling at least $334,000. Agcaoili is alleged to have been receiving both federal workers’ compensation and federal social security disability payments by engaging in a scheme to defraud the federal government about the nature and extent of his injury and about the other work he was performing and income he was receiving.
The indictment alleges that despite Agcaoili’s disability claims, Agcaoili went dipnetting and fishing on multiple occasions every summer between 2009 and 2013. In addition, the indictment alleges that Agcaoili lied to the federal government on his annual forms when Agcaoili indicated that he did not perform any work between at least February 2009 and continuing until the present, when he was working and receiving income for performing services such as preparing immigration paperwork and tax returns. In addition, the indictment alleges that Agcaoili concealed and failed to disclose to the Social Security Administration that he was receiving workers’ compensation payments in order to continue receiving social security disability payments to which he was not entitled.
Assistant U.S. Attorney Yvonne Lamoureux, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $25,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
“Each time someone intentionally defrauds the United States in order to receive federal benefits, such as workers’ compensation and disability payments, it undermines the integrity of those federal programs, and harms all law abiding citizens. We are committed to investigating fraud involving federal programs, and to prosecuting theft of government funds in all its forms,” said Kevin Feldis, First Assistant United States Attorney and Criminal Division Chief for the District of Alaska.
The United States Postal Service Office of the Inspector General and the Social Security Administration Office of the Inspector General conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Thursday 17 April 2014
Washington Park Woman Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsOn April 16, 2014, Amber M. Salts, 27, of Washington Park, Illinois, pled guilty in federal court, in East St. Louis, to failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Salts is scheduled for sentencing on August 1, 2014. She faces a term of imprisonment of up to ten (10) years, a fine up to $250,000, or both, and a term of supervised release of five (5) years to life of supervised release, and a mandatory special assessment of $100.
The violation occurred between June 2012 and June 2013, when Salts moved to Illinois from Missouri after being released from parole in 2012, following a conviction of Passing a Bad Check of $500 or More in Howell County, Missouri. She was required to register as a sex offender under both Illinois law and the Sex Offender Registration and Notification Act (SORNA), because of her conviction of Permitting the Sexual Abuse of a Child on July 14, 2009, in Madison County, Illinois. Salts signed a Missouri sex registration compliance form on June 28, 2012, then traveled to Illinois where she resided since. Salt was interviewed by Fairview Heights police officers on January 8, 2014, after her arrest for shoplifting. She provided the officers with a Washington Park, Illinois, address and stated she last registered as a sex offender Illinois in October 2013. Salts admitted not having registered within the three-day timeframe after moving to Illinois. Salts knowingly failed to comply with either Illinois, Missouri and SORNA sex offender registration requirements.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and the Fairview Heights Police Department. The case is assigned to Assistant United States Attorney Daniel T Kapsak for prosecution.
Ware Man Pleads Guilty to Social Security FraudRead the Press Release
BOSTON – A Ware man pleaded guilty today to defrauding the Social Security Administration of more than $50,000.
Carl Lynch, 43, pleaded guilty before U.S. District Court Judge George A. O’Toole, Jr. to theft of public money. In March 2014, he was charged in a felony Information. Sentencing is scheduled for July 22, 2014.
In 2003, Lynch began receiving Social Security disability benefits. In 2007, however, while still collecting disability benefits, Lynch began working under another man’s identity as a personal care provider for an elderly person in Rehoboth. Lynch’s income from this job, which averaged about $80,000 per year, would have made him ineligible to receive disability benefits. Lynch did not report this work to the Social Security Administration (SSA), and, in fact, in February 2013, he falsely told SSA that he had not worked since 1998. In December 2013, Lynch admitted to investigators that he worked under a false identity to conceal his income from SSA. Through this scheme, Lynch received $50,264 in benefits that he would not have received if Social Security had been aware of his actual work and income.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Lieutenant James J. Trombetta, Acting Chief of Police of the Rehoboth Police Department, made the announcement today. The case is being prosecuted by Special Assistant United States Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
U.S. Attorney for Western Pennsylvania Convenes Working Group on Addiction: Prevention, Intervention, Treatment and RecoveryRead the Press Release
PITTSBURGH – David J. Hickton, United States Attorney for the Western District of Pennsylvania, today announced that he has convened a group to develop and implement solutions to Western Pennsylvania’s opiate overdose epidemic.
The U.S. Attorney’s Working Group on Addiction: Prevention, Intervention, Treatment and Recovery will bring together citizens, parents and those in recovery with physicians, providers and regional leaders to prevent opiate overdoses and deaths throughout Western Pennsylvania. Specifically, individuals who have direct experience with addiction and specialists in the fields of public health, law enforcement, human services, pharmacology, drug treatment and recovery will make up the Working Group. The group had an initial meeting on April 7, and created three subcommittees to focus on Community Outreach/Education; Treatment; and Quality, Safety and Outcomes.
U.S. Attorney Hickton said, “We cannot prosecute our way out of the problem of opioid addiction. We need to better address the demand side of the problem by being more attentive to and understanding of addiction, treatment and recovery. Opiate overdoses affect all age groups, all ethnic groups, men, women, and children, and it is destroying lives and killing people. We cannot wait another day to combat this scourge on our communities.”
The Working Group will be co-chaired by Neil A. Capretto, D.O., F.A.S.A.M., Medical Director of Gateway Rehabilitation Center, and Michael Flaherty, Ph.D., Clinical Psychologist. Working Group members currently include:
- Jim Rohr, Executive Chairman, PNC, and former Chairman of the Allegheny Conference on Community Development;
- Mike Zemaitis, Ph.D., Professor of Pharmaceutical Sciences, University of Pittsburgh School of Pharmacy;
- Marc Cherna, Director, Allegheny County Department of Human Services;
- Reverend DeNeise Welch, Bidwell Presbyterian Church;
- Antoine Douaihy, MD, Associate Professor of Psychiatry, University of Pittsburgh School of Psychiatry;
- Fred Thieman, President, Buhl Foundation;
- Sabato Anthony Stile, MD, Medical Director, UPMC Behavioral Health Associates;
- Karen Hacker, MD, MPH, Director, Allegheny County Health Department;
- Debra M. Kehoe, R.N. BSN, MsEd., Executive Director, The Pennsylvania Alliance for Safe and Drug Free Children;
- James Schuster, MD, MBA, Chief Medical Officer, Community Care Behavioral Health Organization;
- David McAdoo, Director, Southwest Behavioral Health Management;
- Latika Davis-Jones, PhD, MPH, MSW, Administrator, Allegheny County Bureau of Drug and Alcohol Services;
- Carmen Carpozi, Founder, Sage’s Army; Parent Advocate – Education and Prevention;
- Lucy Garrighan, CEO, Jade Wellness Center and Parent Advocate for Treatment;
- Scott Golden, MD, VA Pittsburgh Health System; and
- Robert Woolhandler, MD, Family Practitioner.
The group will be meeting on a regular basis, and is expected to issue interim recommendations within 60 to 90 days that will include an action plan for long-term reform.
Tye Albright Sentenced to Prison for Drug ChargesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings on March 27, 2014 before U.S. District Judge Susan Watters, TYE DUSTIN ALBRIGHT was sentenced to 180 months imprisonment and 5 years supervised release.
The sentence is in connection with Albright's November 2013 guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Suek, the government stated that on November 4, 2011, the drug task force in Billings conducted a controlled buy of methamphetamine with a confidential informant. That buy led to the identification of the source of the methamphetamine.
On November 8, 2011 and December 30, 2011, the task force in Billings bought 2 ounces of meth from the identified source. On January 2, 2012, the source was interviewed and his house was searched. He admitted selling meth for the last year. He admitted that his source is in Denver and he obtained 20-30 pounds of methamphetamine that he sold in Billings. Law enforcement seized over 5 pounds of methamphetamine from the source's house. The source's girlfriend and confidential information corroborate the source's statements.
On October 2, 2012, a controlled purchase of methamphetamine was made from an individual that drove to the defendant's home during the deal to obtain the methamphetamine purchased. Drug task force officers surveilled the transaction.
On October 9, 2012, a search warrant was executed at the defendant's house. Task force officers seized seven grams of pure methamphetamine as well as cash and drug paraphernalia.
After the source was charged with federal drug crimes and pleaded guilty, the source was interviewed and identified one of his main Billings customers as the defendant, Tye Albright. The source estimated that he supplied Albright with 30 pounds of methamphetamine up to the time of the source's arrest, in January 2012.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Two Individuals Arraigned for Methamphetamine DistributionRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MICHAEL ALLEN COOPER, age 39 and AMANDA JO JONES, age 24, both of Moore, Oklahoma were arraigned in federal court today on charges of Conspiracy To Possess With Intent To Distribute And Distribute Five Hundred (500) Or More Grams Of mixture or Substance Containing a Detectable Amount of Methamphetamine, a Schedule II Controlled Substance, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A).
The Criminal Complaint filed on April 14, 2014, alleges that beginning in or about August 19, 2013, through on or about April 8, 2014, in the Eastern District of Oklahoma and elsewhere, the defendants, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and Distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
The charges arose from a joint investigation by the Tulsa Police Department, the West Siloam Springs Police Department, the Adair County Sheriff’s Office, the Delaware County Sheriff’s Office, the Delaware County District Attorney’s Investigator, the District 27 District Attorney’s Drug Task Force, the Oklahoma Bureau of Narcotics, the United States Postal Inspection Service, Office of Inspector General and the Drug Enforcement Administration (DEA).
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. Both defendants were remanded into the custody of the United States Marshal Service.
The statutory range of punishment for COOPER is not less than life imprisonment and/or up to $20,000,000.00 in fines.
The statutory range of punishment for JONES is not less than 10 years imprisonment and/or up to $10,000,000.00 in fines.
First Assistant United States Attorney Doug Horn represented the United States.
Two Former Corporate Executives of Samarion, Inc. Charged with Securities Fraud and Conspiracy to Defraud InvestorsRead the Press Release
Jackson, Miss - Mark E. Rodgers, 51, of Houston, Texas, the former Chief Executive Officer of Samarion Solutions, Inc., and Samer N’ser, 52, of Ridgeland, Mississippi, the former Chief Technology Officer of Samarion, Inc., have been charged with one count of conspiracy to defraud investors in the sale of securities and eight counts of securities fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
The indictment in this case alleges that from approximately 2006 through 2009, Rodgers and N’Ser conspired to intentionally mislead Samarion, Inc., investors in Mississippi and Alabama. During that time, Samarion, Inc. (formerly known as Valence Broadband, Inc.) was a corporation operating out of Madison County, Mississippi. The business plan of the company was to produce a viable monitoring system, commonly referred to as the “Samarion Solution”, for installation in nursing homes, and elsewhere, that could predict when a patient might fall, prevent abuse and/or neglect by staff, and improve the over-all care of nursing home patients.
According to the indictment, Rodgers and N’Ser conspired to fraudulently misrepresent to potential investors material facts that would affect their decision to invest, including the financial strength of the company and the true functionality and capacity of the product, among other things. The indictment alleges that Rodgers and N’Ser sold stock to investors representing that the investment funds would be used solely for the business purposes of the company, and instead used the money for their own personal benefit. Rodgers and N’Ser are also facing state criminal charges in the State of Alabama.
Alabama Securities Commission Director, Joseph Borg said, "The willingness of the United States Attorney's Office for the Southern District of Mississippi and the FBI to work jointly with state securities regulatory agencies is a vital part of protecting the public from financial fraud and exploitation. We are proud of the collaborative efforts of the federal and state law enforcement agents and prosecutors in this case."
The case has been set for trial on May 19, 2014 before U.S. District Judge Daniel P. Jordan III. The maximum penalty for conspiracy is five years in prison and a $250,000 fine. The maximum penalty for securities fraud is five years in prison and a $10,000 fine.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
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Two Armed Bank Robbers Sentenced to More Than Six Years in Prison for Robbing the Citibank in AlamedaRead the Press Release
OAKLAND – Craig Goatley was sentenced today to 78 months in prison and Calvin Earl Odom, Jr., was sentenced on April 10, 2014, to 86 months in prison for armed bank robbery, announced U.S. Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, both men admitted that on the morning of Aug. 3, 2013, they robbed the Citibank, located at 1526 Webster Street in Alameda, Calif. Odom entered the bank first and sat down at a desk in the lobby area, purporting to be a bank customer. Goatley entered the bank moments later and proceeded to the customer line, where he waited for the next available teller. When the next teller became available, Goatley walked to the counter and brandished what appeared to be a black handgun. Goatley pointed the gun at the teller and demanded money. The frightened teller grabbed money from her teller drawers and tossed it in Goatley’s direction, ducking behind the teller counter. Goatley, thereafter, robbed a second teller who emerged from the back of the bank during the robbery. While Goatley was robbing the tellers, Odom pulled what appeared to be a black handgun from his waistband and pointed it at a bank employee who had been assisting him. Odom told the employee that the bank was being robbed and not to move. Goatley and Odom fled the bank, stealing $8,869. It was later discovered that the guns carried by Odom and Goatley were pellet guns.
Goatley, 28, of Oakland, and Odom, 25, of Berkeley, were indicted by a federal grand jury on Oct. 10, 2013, for armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d). Both men were arrested on Aug. 14, 2013, by the Alameda County’s Sheriff’s Office on separate charges and remained in state custody on those charges. The men initially appeared in federal court in November 2013, and have remained in federal custody since that time.
Both sentences were handed down by the Honorable Yvonne Gonzalez Rogers, United States District Court Judge in Oakland. Judge Gonzalez Rogers also sentenced each defendant to a 5-year period of supervised release.
Assistant U.S. Attorney Brian C. Lewis prosecuted this case with the assistance of Janice Pagsanjan. This prosecution is the result of an investigation by the Alameda Police Department and the Federal Bureau of Investigation.
(Goatley and Odom indictment )
Todd Franklin Sentenced to Prison for Drug ChargesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on March 26, 2014 before U.S. District Judge Donald Molloy, TODD SEAN FRANKLIN was sentenced to 121 months imprisonment and 5 years supervised release.
The sentence is in connection with Franklin's December 2013 guilty plea to conspiracy to distribute methamphetamine. In an Offer of Proof filed by Assistant U.S. Attorney Tara Elliott, the government stated that between May of 2007 and May of 2011, investigators of Lincoln County and the Northwest Drug Task Force (NWDTF), in an undercover capacity, made several purchases of both methamphetamine and marijuana from the defendant, Todd Sean Franklin.
During the week of January 5, 2013, Detectives were contacted by a confidential informant (CI). The CI advised detectives that Franklin told the CI that Franklin was selling methamphetamine and that he was obtaining the methamphetamine from an individual in the Sandpoint, Idaho area. On January 16, 2013, agents received the criminal history, vehicle registrations, and driver's license status checks for Franklin. The records check of Franklin's driver's license status indicated that his privileges were suspended. A records check of vehicles registered to Franklin indicates that he owns a 1990 GMC truck, bearing Montana license plate 719793A, registered in Flathead County. On January 15, 2013, agents contacted Montana Probation and Parole. The Probation and Parole Officer confirmed that Franklin is currently on Probation with the Montana Department of Corrections for Felony Distribution of Dangerous Drugs and Felony Possession of Dangerous Drugs.
Detectives were again contacted by the CI the week of January 13, 2013. The CI told detectives Franklin told the CI that Franklin would be traveling to Sandpoint within the next few days in order to purchase more methamphetamine.
On January 17, 2013, agents received a Montana District Court Search Warrant to affix a tracking device to Franklin's 1990 GMC truck. On January 18, 2013, agents affixed a GPS tracking device to Franklin's truck.
On January 30, 2013, the GPS tracker indicated that Franklin's truck traveled through Libby, Montana and stopped in Sandpoint, Idaho.
On January 31, 2013, agents were able to determine that the GPS tracking device located on Franklin's truck traveled from Sandpoint, Idaho north to Highway 2 and eastbound through Libby, Montana en route to Kalispell, Montana. Agents observed Franklin operating his truck and arranged to have marked patrol units conduct a traffic stop on Franklin due to the fact his driving privileges are suspended by the state of Montana. Franklin, as part of his probation with Montana DOC, cannot travel out of state without the permission of his probation officer.
Franklin did not have permission to leave the State of Montana. Patrol units conducted a traffic stop on Franklin's truck. When Franklin was ordered to exit the vehicle, Franklin refused the officers commands and started driving eastbound toward Kalispell, Montana at a high rate of speed. Once officers were able to stop Franklin's truck he was arrested and detained at the Flathead County Detention Facility. Franklin's truck was secured and towed to the Flathead County SWAT barn and secured with evidence tape.
Agents applied for and received search warrants from a Montana District Court for Franklin's residence and vehicles. Pursuant to the search detectives located several plastic bags each containing a quantity of suspected methamphetamine from the bed portion of the truck. A lab report indicated that the pure methamphetamine weighed in excess of 50 grams.
Three Indicted for Possession with Intent to Distribute Approximately Seven Pounds of MethamphetamineRead the Press Release
– Street Value of Approximately $210,000
LOUISVILLE, Ky. – An Ohio woman and two men from California were indicted by a federal grand jury in Louisville this week on charges of conspiring to knowingly and intentionally possessing with the intent to distribute fifty grams or more of methamphetamine, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Brenda Buenrostro, age 21, of Fairborn, Ohio, Ricardo Morales, age 27, of Los Angeles, California, and Luis Villa, age 29, of Milpitas, California were charged in a two count indictment. Because of the interstate nature of the crime and the large quantity of methamphetamine seized, the case was referred for federal prosecution.
According to a Metro Louisville Police Department arrest report, on March 27, 2014, police initiated an investigation after observing suspicious activity by the defendants. The investigation led to the search of the defendants’ room at the Economy Inn located at 3304 Bardstown Road, and resulted in the seizure of approximately seven pounds of methamphetamine, with an estimated street value of $210,000, along with various items of drug paraphernalia.
If convicted, the defendants face a mandatory minimum sentence of ten years in prison, a maximum sentence of life in prison, a fine of $10,000,000 and a term of supervised release of at least five years upon release from prison.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by the Louisville Metro Police Department and the Federal Bureau of Investigation (FBI).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Stockton Springs Woman Sentenced to Eight Months for Bank EmbezzlementRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Brittany
A. Mace, 24, of Stockton Springs, Maine, was sentenced today in U.S. District Court in Bangor
by Judge D. Brock Hornby to eight months of imprisonment for bank embezzlement. The court
directed that seven months of the sentence be satisfied by home detention, imposed five years of
supervised release and ordered the defendant to pay almost $26,000 in restitution. The defendant
pleaded guilty to the charge on November 14, 2013.Court records reveal that the defendant was a teller at Bangor Saving Bank. From about
August 23, 2010, to about November 3, 2011, the defendant stole almost $26,000 from the
accounts of 48 bank customers, many of whom were elderly and some of whom had dementia.
The bank discovered the embezzlement in 2011 and reimbursed customers for their losses.
The investigation was conducted by the Federal Bureau of Investigation.Steven Munson Sentenced for EmbezzlementRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena on March 24, 2014 before U.S. District Judge Sam Haddon, STEVEN C. MUNSON was sentenced to 5 years' probation and $74,249.19 in restitution.
The sentence is in connection with Munson's November 213 guilty plea to embezzlement from an employee benefit plan. In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated that during the time period relevant to the charges in the Indictment, Munson was the sole owner of DDCS Express, Inc., a postal service provider based in Bozeman. DDCS operated mail routes pursuant to contracts with the U.S. Postal Service ("USPS"). DDCS sponsored an employee benefit plan - the DDCS Express, Inc. 401(k) Plan. The Plan was defined by ERISA as an employee benefit plan. DDCS was the Plan's administrator and sponsor and Munson was the Plan's trustee. The Plan allowed employees to make voluntary contributions through salary deductions. In addition, the Plan was to receive fringe benefit contributions from the USPS contracts, as each contract expressly required that DDCS make fringe benefit payments to each employee for all hours worked. The Plan was previously administered by Montana Pension Administration, Inc., and American Funds was the Plan's previous record-keeper, but both entities resigned in 2008 due to DDCS's deficient performance.
On July 16, 2010, the Employee Benefits Security Administration ("EBSA") received a complaint from a DDCS employee that Munson had not deposited the required amounts into the Plan and had not filed the required reports disclosing the financial conditions of the Plan. The EBSA opened an investigation and determined Munson did not make any deposits into the Plan from January 2007 through June 2010. He also failed to pay his employees all of the fringe benefits due and owing and eventually liquidated the 401(k) plan but did not return the remaining funds to his employees. The total amount of loss attributable to Munson's conduct is approximately $70,770.52, which is broken down as follows: $2,652.25 in unpaid contributions to the Plan, $46,219.28 in unpaid fringe benefits, and $21,898.99 in funds removed from the liquidated Plan account and not remitted to employees.
During the same period of time that he failed to fund and manage the Plan, Munson paid himself considerable sums of money. He wrote himself approximately $744,000 in company checks during the relevant time period.
St. Thomas Man Sentenced to 151 Months for Conspiracy to Possess and Possession with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Isa Noel, 25, to 151 months in prison for conspiracy to possess with intent to distribute cocaine, and two counts of possession of cocaine with intent to distribute, to be followed by five years of supervised release, announced United States Attorney Ronald W. Sharpe.
On November 14, 2013, after a three-day trial in federal court, a jury found Noel guilty of the three charges. Evidence at trial established that Noel, a supervisor at GCG Ground Services at the Cyril E. King Airport on St. Thomas, used his position to smuggle cocaine past security checkpoints at the airport. Specifically, on or about September 16, 2012, Noel and another co-conspirator smuggled six kilograms of cocaine to a waiting courier in the public bathroom of the airport. The courier was arrested as he attempted to board a flight to the mainland United States. The courier received a 120-month prison sentence.
Evidence at trial also established that on October 17, 2012, Noel recruited a fellow baggage handler to deliver cocaine to another courier. Both the baggage handler and the courier were arrested and prosecuted. At Noel’s trial, four co-conspirators testified about his involvement in the conspiracy and distribution of cocaine. Joelvis Acosta Liz, Edisson Peguero Ortiz and Allen Pacquette pleaded guilty to drug charges prior to Noel’s trial. Kirsten Alexander pleaded guilty to misprision of a felony. All four testified against Noel during his trial.
The case was investigated by Homeland Security Investigations, the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Customs and Border Protection and Virgin Islands Police Department. The case was prosecuted by Assistant U.S. Attorney Nelson L. Jones.
St. Robert Man Sentenced for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a St. Robert, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute heroin in Pulaski County, Mo.
Robert E. Peetz, 27, of St. Robert, was sentenced by U.S. Chief District Judge Greg Kays on Tuesday, April 15, 2014, to seven years in federal prison without parole.
On Oct. 9, 2012, Peetz pleaded guilty to participating in a conspiracy to distribute heroin. Peetz admitted that he began selling heroin in the fall of 2010. Federal agents used a confidential source to make three undercover purchases of heroin from Peetz in August 2011. Peetz estimated that he had sold between 5 and 6 ounces of heroin (which is in excess of 100 grams).
This case was prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol, the Pulaski County, Mo., Sheriff’s Department, the St. Robert, Mo., Police Department, the Waynesville, Mo., Police Department and the Lake Area Narcotics Enforcement Group.
Shiprock Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Dexter Dez, 28, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to an indictment charging him with two assault offenses. Dez entered his guilty plea without the benefit of any plea agreement.
Dez was arrested on July 11, 2013, on a criminal complaint alleging that he assaulted a non-Indian man on May 17, 2013, at a residence in Two Gray Hills, N.M., which is within the Navajo Indian Reservation. Dez subsequently was indicted and charged with assault with a dangerous weapon and assault resulting in serious bodily injury.
According to court filings, on the night of May 17, 2013, an intoxicated Dez entered the victim’s residence and punched him in the left eye with a box cutter. Dez then fled from the residence. The victim’s eyelids were severed as a result of the assault. The victim has had to undergo surgery to repair his eyelids and will require further surgery, including skin grafts.
Dez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Dez faces a maximum penalty of ten years in prison.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Serial Bank Robber Sentenced to 20 Years in Federal PrisonRead the Press Release
FBI Says Luis de la Garza was the “Mesh Mask Bandit”
DALLAS — Serial bank robber Luis de la Garza, 59, of Farmers Branch, Texas, dubbed the “Mesh Mask Bandit,” was sentenced this afternoon by U.S. District Judge Jane J. Boyle to serve a total of 240 months (20 years) in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea papers filed, de la Garza not only admitted committing the five below-listed bank robberies, he stipulated he committed an additional 13 bank robberies and an additional two attempted bank robberies in the Dallas – Fort Worth metroplex between April 2010 and May 2013.
March 18, 2013 Chase Bank 6300 Harry Hines Blvd.
Dallas, Texas
April 5, 2013 Grand Prairie State Bank 2317 South Belt Line Rd.
Grand Prairie, Texas
April 22, 2013 Wells Fargo Bank 13297 Josey Lane
Farmers Branch, Texas
April 29, 2013 Capital One Bank 200 North Mesquite Street, Suite 121
Arlington, Texas
May 15, 2013 Chase Bank 111 South Garland Ave., Suite 150
Garland, TexasIn each of these five bank robberies, de la Garza wore long-sleeved clothing, a mesh mask, cap and gloves to disguise his identity, and in each robbery he brandished and used a BB pistol. In each of the robberies, the tellers were in fear for their lives. During the last robbery, on May 15, 2013, a bank customer grabbed de la Garza’s pistol and struck him in the head. While a struggle then ensued between de la Garza and a bank employee, de la Garza broke free and fled the bank, leaving behind his pistol, which Garland Police Department determined was a CO2 BB gun.
The investigation was conducted by the FBI, Dallas Police Department, Grand Prairie Police Department, Farmers Branch Police Department, Arlington Police Department, Garland Police Department, Carrollton Police Department, Addison Police Department, Lewisville Police Department and Plano Police Department. Assistant U.S. Attorney Keith Robinson prosecuted.
Sentencing for April 10 - 17, 2014Read the Press Release
John David Hunt, 38, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 17, 2014, for being a felon in possession of a firearm. Hunt was arrested in Gillette, Wyoming. He received 33 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jonathan Earl Olaveson, 29, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 17, 2014, for attempted online enticement of a minor. Olaveson was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Jose Luis Uribe-Ramos, 23, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 14, 2014, for illegal re-entry of a previously deported alien into the United States. Uribe-Ramos was arrested in Gillette, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Armando Loza-Baltazar, aka Nicolas Loza-Baltazar, aka Juan Carlos Castellanos, 30, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 14, 2014, for illegal re-entry of a previously deported alien into the United States. Loza-Baltazar was arrested in Rawlins, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Mercedes Tojin-Lux, 36, of Guatemala, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 14, 2014, for illegal re-entry of a previously deported alien into the United States. Tojin-Lux was arrested in Cheyenne, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Tammy O’Neal, 44, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 14, 2014, for obstruction of correspondence (mail tampering). O’Neal appeared pursuant to a summons. She received 2 years of probation and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Postal Service.
Justin M. Epley, 31, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 14, 2014, for being a felon in possession of a firearm. Epley was arrested in Gillette, Wyoming. He received 72 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Bradley Michael Ward, 44, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 11, 2014, for being a felon in possession of a firearm. Ward received 21 months and 6 days imprisonment, to be followed by two years of supervised probation, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Silverio Orozco, 25, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 11, 2014, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine. Orozco was arrested in Cheyenne, Wyoming. He received 36 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration.
Luis Enrique Lopez-Herrera, aka Luis Enrique Lopez, 39, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on April 10, 2014, for illegal re-entry of a previously deported alien into the United States. Lopez-Herrera was arrested in Rock Springs, Wyoming. He received 33 months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Juan Herrera-Leyva, 52, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on April 10, 2014, for illegal re-entry of a previously deported alien into the United States. Herrera-Leyva was arrested in Gillette, Wyoming. He received four months imprisonment, was order to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Rockland Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Elbert
Ranquist, 43, of Rockland, Maine, pleaded guilty today in U.S. District Court to interfering with
commerce by robbery.
According to court documents, on the evening of August 5, 2013, Ranquist drove to
Jensen’s Pharmacy in Rockland in his wife’s distinctive vehicle. He entered the pharmacy
wearing sunglasses, a hooded sweatshirt pulled tight around his face, a small blue backpack and
blue surgical gloves. He went to the counter holding a knife in his left hand and demanded
oxycodone from the pharmacist. The pharmacist, who recognized the defendant as a regular
customer, asked out loud if he was really being robbed by “Elbert Ranquist.” The defendant
absconded with 10 5mg oxycodone pills.Ranquist faces up to 20 years in prison and a fine of $250,000, or both. He will be
sentenced after the completion of a presentence investigation report by the U.S. Probation Office.The case was investigated by the Federal Bureau of Investigation, the Rockland Police
Department and the Maine State Police.Roberto Tapia Sentenced to 70 Months in PrisonRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez today sentenced Roberto Tapia, 55, to 70 months in prison for using the Virgin Islands Department of Planning and Natural Resources (DPNR) as a criminal enterprise to engage in illegal drug trafficking activities, United States Attorney Ronald W. Sharpe announced.
Tapia, DPNR’s former Director of Environmental Enforcement, pleaded guilty on September 19, 2013 to using DPNR as a criminal enterprise to engage in illegal drug trafficking activities. He was arrested on May 17, 2013, and charged with conspiracy to possess with intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking. On September 12, 2013, he was charged in a 34-count second superseding indictment, along with six other defendants, including Virgin Islands police sergeant Angelo Hill, Raymond Brown, Hector Alcenio, Edwin Monsanto, Stephen Torres, and Eddie Lopez-Lopez.
The indictment and plea followed an extensive investigation conducted by the Federal Public Corruption Task Force, which culminated with the arrest of Tapia while in possession of seven kilograms of cocaine.
“It’s a sad day when a high-ranking law enforcement officer has to be sentenced for violating the public’s trust,” U.S. Attorney Sharpe said. “The egregious criminal conduct perpetrated by this individual, who chose to abuse his position for selfish gain at the expense of the safety and welfare of the community, taints every hard-working law enforcement officer. My office will continue to vigorously fight public corruption, and target individuals who undermine the public trust.”
The case was investigated by the Public Corruption Task, which comprises the Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA; Virgin Islands Police Department; U.S. Marshals Service; Internal Revenue Service Criminal Investigation Division (IRS-CI); U.S. Department of Homeland Security, Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); United States Coast Guard; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Office of the Virgin Islands Inspector General. It was prosecuted by Assistant U.S. Attorney Kelly B. Lake.
Remarks as Prepared for Delivery by U.S. Attorney Paul J. Fishman at the Prisoner Reentry: Breaking the Cycle ConferenceRead the Press Release
ST. PETER’S UNIVERSITY, JERSEY CITY, N.J.
Thank you, Jim [McGreevey], for that very nice introduction. And thank you to both you and Mayor Fulop for having the vision and commitment to organize this conference and for bringing us all together. The program looks incredible and my only regret is that my schedule won’t allow me to stay after my speech. But this topic is so critical and so central to the mission of my office that I am honored for the opportunity to kick off the program by highlighting what the Justice Department is doing across the country and, in particular, here in federal court in New Jersey.
Every other Tuesday at 5:00 in the afternoon, about two dozen people come to a courtroom on the second floor of the Martin Luther King Jr. Federal Courthouse in Newark. At first, it looks like a lot of other proceedings in that courthouse. A federal Magistrate Judge, Judge Madeline Cox Arleo, sits on the bench. In what we call the well of the courtroom, at the two tables usually occupied by lawyers or their clients, there are a couple of lawyers from the federal Public Defender’s Office; four people from the U.S. Attorney’s Office; and at least one or two probation officers. Behind them, sitting on the benches usually occupied by spectators, are about 15 other people.
But this proceeding is different. Everyone on the benches has very recently left federal prison – some with a stop at a halfway house, others directly from jail. And one by one, each of them is called to the front of the courtroom and sits down at one of the tables to talk to the judge. “How is your daughter,” she asks one. “Tell me about your new apartment,” she inquires of another. “Can we help you print your resume?” “Do you want a lawyer to help you get a payment plan so you can get your driver’s license back?” “Do you have to leave early today to get to class?” And, finally, “What do you need?”
And as you listen to her questions, and hear the answers, and watch the interaction among all of those people, you begin to realize there is something very special, and really inspiring, going on in Courtroom 2A.
The last time those defendants were in that courthouse, lawyers from my office were asking another judge to send them to prison for a substantial period of time. The last time those defendants were in that courthouse, a different judge explained why the things they had done and the crimes they had committed required that they receive a meaningful term of incarceration.
Now when they walk in, members of my office and court personnel are editing their resumes, teaching them how to interview for a job, and offering to tutor them in math. The judge is helping them to register for college, find apartments, and get jobs – and is literally taking them to a charter school to help them enroll their kids. Now that they have served their time, those defendants are being asked by lawyers and staff from that same U.S. Attorney’s office and by a federal judge working with probation officers and public defenders, “What do you need?”
How did we get here? And is there an inconsistency in our approach?
The answer is “no.” We have a crisis in this country. Our federal and state prisons currently house 1.5 million people. Hundreds of thousands more are in local jails. In all, we estimate that more than 1 in 100 adults are behind bars. More than 200,000 are in the custody of the federal Bureau of Prisons, and it is my job, and the job of the people who work in my office, to put several hundred more there every year. In my judgment, they have committed crimes for which jail is the appropriate punishment.
But for almost all of them, their incarceration doesn’t and shouldn’t last forever. More than 95 percent of federal prisoners will be released and, when they are, the overwhelming majority go home – or somewhere near where they once called home. And it is on that journey and at its destination that they may well fail if they don’t have help.
Many come back to families that are barely intact, if they are there at all. Housing is hard to find, and jobs even tougher. It’s hard enough in today’s economy for lots of people without criminal records to find work, and here we’ve been particularly slow to recover. Imagine what it’s like for those just out of prison to compete in that environment.
And then add in the educational obstacles. Of the 20 fastest growing occupations, 13 require postsecondary education. But only 22 percent of prisoners have any postsecondary experience, compared to more than half of the rest of us. Two in five prison and jail inmates – 40 percent – lack a high school diploma or its equivalent.
Even when ex-offenders get a job, they face an uphill battle. A report from the Pew Charitable Trusts found that past incarceration reduced subsequent wages by more than 10 percent, cut annual employment by more than two months and reduced yearly earnings by 40 percent.
And it turns out that the ability to find a job after being released from prison is one of the greatest predictors of success on the outside. But without the foundations that the rest of us work so hard to build and maintain – the things that quite frankly we sometimes take for granted – the recently released are often alone, tempted by their past lives, sometimes still on the hook of an addiction, and too frequently with too few alternatives to falling, or stumbling, back into a life that they want to avoid if they can.
So it’s hardly surprising that so many fail. In fact, nationally, two out of every three people released from state prisons will be arrested again within three years of their release. Half of those released will end up back in prison in that time. Released federal prisoners do a little better: they have a 40 percent chance of being re-arrested or having their supervision revoked – which would send them back to prison in their first three years out.
These numbers and the realities they represent are daunting. With roughly 700,000 people coming out of our state and federal prisons every year, plus the millions that flow through jails at the local level, recidivism has terrible consequences for the lives of offenders and their families. It has serious, serious implication for public safety. And with resources already severely strained at the federal, state and local levels, it just costs too much money. The Bureau of Justice Statistics estimates that more than $74 billion is spent on federal, state and local corrections annually. And it costs nearly $30,000 to house a federal inmate for a year.
So how do we stop this terrible cycle?
At the national level, my boss, Attorney General Eric Holder, has convened a Federal Reentry Council to try to bring down the barriers that stop former prisoners from succeeding. The council comprises 20 federal agencies, all with common goals: to make our communities safer by reducing recidivism and victimization; to help those getting out to become productive citizens; and to save limited resources.
How do they do that? Part of it is just raising awareness. There are a huge number of misconceptions out there about the rights and obligations of those who have served time. Can they live in public housing? Yes. Can you get tax credits for hiring them? Yes. Can employers get bonded against theft? Yes. And so, among other things, the Council has promoted and published on line a series of what they call “mythbusters,” answering those questions, among others.
Part of it is knocking down systemic barriers and obstacles that make it difficult for people who have already been held accountable and paid for their crimes to contribute productively and to support themselves, their families and the economy.
In April 2011, Attorney General Holder sent a letter to every state Attorney General citing a comprehensive study by the Justice Department and the American Bar Association cataloguing more than 38,000 statutes across the 50 states and other territories that impose collateral consequences on people convicted of crimes. Although some of those restrictions serve public safety, many impose unnecessary burdens – including denial of employment and housing opportunities – that cripple an individual trying to make a new start. So he asked the states to evaluate relevant laws and policies and he made the Department’s resources available to provide support. And we in the Department of Justice looked to our own house – conducting a review of federal collateral consequences identified in the study.
Early last year, also under the Attorney General’s direction, the Justice Department began a comprehensive review of the criminal justice system – including charging, sentencing, incarceration and reentry – to identify areas in which federal laws could be enforced more fairly and efficiently. The idea was to figure out which practices were more successful and which might actually be working against our goals.The resulting initial reform package – called the “Smart on Crime” initiative – is already driving us to reexamine our priorities, more fairly enforce laws and apply just punishments, strengthen protections for vulnerable populations and focus even more strongly on prevention and reentry.
The final piece is targeting services to the population we’re trying to reach. This has to start in jail. As the Director of the Federal Bureau of Prisons has pointed out, most federal inmates leaving prison need “job skills, vocational training, education, counseling, and other assistance such as drug abuse treatment, anger management, parenting skills, and linkage to community resources for continuity of care if they are to successfully reenter society.” In other words, today’s BOP realizes that reentry begins the day an inmate enters a facility, not the day the inmate leaves it.And it must continue in halfway houses where many federal inmates begin their reintegration. But for too long, the policies and culture of those facilities were actually counterproductive in many ways. So just last month, Attorney General Holder announced that the Justice Department would require federal halfway houses – which saw 30,000 inmates go through their doors in just the past year – to enhance their treatment services. Those facilities will now have to provide a specialized form of treatment to prisoners, including those with mental health and substance abuse issues, provide greater assistance to inmates who are pursuing job opportunities – such as permitting cell phones to be used by inmates and providing funds for transportation – and expand access to equipment that allows more inmates to reenter society through home confinement.
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But even that isn’t enough. So here’s how we got to courtroom 2A:
Three years ago, I asked people in my office – and then in the courthouse – if we could do better. I asked if we had the resources – the time, the money, the commitment – to try something new. There were others who were already running or participating in reentry projects around the country, but we had never done it in federal court in New Jersey. Those conversations, and the hard work of a lot of people, led to the development of the first federal reentry court in New Jersey – what we call our “ReNew” program. That hard work, and most of all, the hard work of the program participants who have dedicated themselves to reimagining their lives – is why courtroom 2A is such a special place.
Because we know that it isn’t enough just to provide the right services; we must provide them at the right time in the right place. Former offenders are at a unique crossroad – poised to become law-abiding contributors or frequent flyers in the criminal justice system. They need to know the path of redemption is theirs to choose – and that they will be supported in their journey and their decision to leave what is familiar and trade it for the prospect of a better future.
To be clear, this isn’t a program for white-collar criminals who just did 18 months in a minimum security prison. The participants in our program were convicted of manufacturing and distributing of dangerous narcotics, selling and transporting firearms, and other very serious and dangerous crimes. They served years – in some cases 10 years or more – in federal prison and were predicted to be some of the most likely to reoffend.
Because of those challenges, it isn’t all smooth sailing. They have to work long hours at difficult jobs – sometimes more than one – and pursue challenging education and other programs to make progress. Some have family members who aren’t supportive and others have the wrong friends who want to reunite with their old buddies. Some just aren’t quite ready to turn away from their previous lives.
So, like everybody else, some of our participants make mistakes. There are excuses, impediments, and apologies. And there are sanctions. Some have to stay in the program for longer, losing credit. Some end up being directed to do some community service and others get some additional house arrest. But all of it – all of it – is geared toward getting these individuals back on their feet, ready and able to make it. And every two weeks, they remind us why this work is so important and they impress us with their ability to evolve and persevere.
Amare Terrell was a straight “A” student until, at around the age of 13, he began to rebel against his mother. He was sent to live with his paternal grandparents and with his father – a heroin addict who introduced him to the drug culture of the streets. He dropped out of high school, had a number of run-ins with the law, and in December 2008, was prosecuted by my office for conspiracy to distribute heroin.
Last year, he was one of the first to participate in our reentry court. Now, in front of Judge Arleo and the other participants, Mr. Terrell is leading in a different way. He obviously takes his role as a father seriously; he talks to the judge about his need for health insurance and a 401(k); and he is focused on what he needs to do to keep his life on track. A couple of months ago, right before one of the 700 snowstorms we had this winter, another participant told Amare that he was worried because he didn’t have any food in his house. And, as many of you know, grocery stores aren’t so plentiful in the urban parts of Essex County. Mr. Terrell told him to meet him at the grocery store in 10 minutes, where he bought him $70 worth of groceries. And, with our encouragement, Mr. Terrell recently spoke to a group of people suspected of committing the worst crimes in a neighborhood and presented a powerful message about what he lost when he broke the law. Next month, Amare Terrell will be one of the first four to graduate from our program. We know how much that means to him, and we hope he knows how much that means to us.
Also graduating is Eddie Wilson. Eddie’s mother and father were intravenous drug users who died of HIV/AIDS. He was raised by his grandmother who also passed away when Mr. Wilson was still a teenager. He was prosecuted by my office for selling guns and ammunition to an undercover ATF agent.
From the start of reentry court, Mr. Wilson was focused on getting his college degree, which has led to his being called the “Professor” in court. But his dedication is clear. He lived in a shelter until he could save enough money to pay for an apartment. But he never seemed down. When asked by the judge about his situation, he might say it was hard because he didn’t have any food. Or he might let her know that he had to be out of the shelter by 7:00 in the morning. But he would also say that it was probably good, because it made him get up to start studying. And the judge, encouraging his dedication, helped him to get a job at the college he attends.
Like Mr. Terrell, Mr. Wilson shows real ownership in this program. More than a few times, he has discovered and told us and the other participants about different programs that might help with rent payments or furniture. Through these efforts, he has probably taught the team as much about reentry as they have taught him.
Muhammed Shabbaz is one of the newest participants – he was released from a halfway house in mid-February. He also has the distinction of having served 14 years or so in prison – one of the longest sentences of anyone in the reentry court – for distribution of heroin and cocaine. In spite of that, or maybe because of it, he comes across in court as someone who is spiritual and has thought a great deal about how he wants to live his life and what comes next. He has a job, and has resumed a stable relationship with the woman to whom he was engaged when he went to prison. He has a facility for math, and will likely return to school to study accounting.
One side note on the extent to which our reentry court is full service: shortly after he joined the program, Mr. Shabbaz told the court that he had resumed living with his longtime girlfriend, and that they had had a religious wedding but weren’t formally married. Judge Arleo offered to perform the ceremony. He put her off. She offered again. And again. And again. She even offered to buy a cake. None of which is surprising if you know Judge Arleo. Finally they set a date. He and his wife wrote their own vows. And one Tuesday evening, not so long ago, in Courtroom 2A, we all learned Mr. Shabbaz is not only good at math, but he’s also a bit of a poet.
Today, you will hear other stories from Judge Arleo, from Tom Eicher, the Chief of our Office’s Criminal Division, and perhaps from Mr. Terrel, Mr. Shabbaz, Mr. Wilson, or their colleagues. You will hear about their successes and their failures, their excitement and their despair. You will learn that, as much work as the reentry team does to find job opportunities, housing, furniture and even schools and daycare for their children, it is the participants themselves who direct and control their experience. It is our job, our responsibility, to give them the opportunity to do just that.
And it’s not just for them. As long as 1 in 28 children – and 1 in 9 African American children – go to bed each night with an incarcerated parent – as long as our kids are continuing the cycle of generational crime by embarking on lifetimes of involvement with the justice system – our work is not done.
I, and the people who work with me in the U.S. Attorney’s Office, understand that we will only succeed if we take a multifaceted approach to law enforcement. We understand the need, as Attorney General Holder, has said, to be smart on crime. We will never arrest our way out of the problems of crime. Only by emphasizing prevention and reentry, together with enforcement, do we have a chance to make a real and lasting impact on the violence and other issues that plague our communities.
On Monday night, I sat at my family’s Seder, and reflected on the ideas of redemption, of spiritual reawakening, of the rebirth that comes with spring – all themes of Passover. This Sunday, Christians will celebrate Easter, a holiday that celebrates many of the same ideas and hopes, and our collective ability to stretch beyond our limitations, to change ourselves for the better.
I, and the people who work with me on the ReNew court, understand that promise and we see it every day. No matter what our religion, we are a group that believes in second chances.
Redemption is about the triumph of hope over despair – the belief that we all have the potential for and the ability to change, and perhaps to do so dramatically, even if the road is hard. And even if we need someone like a judge to look us in the eye and ask: “What do you need?”
Thank you.Real Estate Developer Sentenced to Jail for Filling Protected Mississippi WetlandsRead the Press Release
William R. “Rusty” Miller, a real estate developer from Fairhope, Ala., was sentenced today in federal district court in Gulfport, Miss., for the unpermitted filling of wetlands near Bay St. Louis, Miss., in violation of the Clean Water Act, announced Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Gregory K. Davis for the Southern District of Mississippi and Special Agent in Charge Maureen O’Mara of the EPA’s Criminal Program in Mississippi.
Miller was sentenced to serve 15 months, with nine months in prison and six months in home confinement, to be followed by one year of supervised release. Miller also was ordered to pay a $15,000 fine and to pay $19,246 in restitution. Miller was sentenced by Chief United States District Judge Louis Guirola Jr.
Miller pleaded guilty in December 2013 and admitted to having caused the excavation and filling of wetlands on a 1,710 acre parcel of undeveloped property in Hancock County, Miss., west of the intersection of Route 603 and Interstate 10. The charging document to which Miller pleaded guilty identified him as a part-owner of corporations that purchased and intended to develop the land.
According to the felony information, in 2001 when Miller and his companies acquired the property, he was informed by a wetland expert that as much as 80 percent of the land was federally protected wetland connected by streams and bayous to the Gulf of Mexico and as such could not be developed without a permit from the U.S. Army Corps of Engineers. Wetland permits typically require that developers protect and preserve other wetlands to compensate for those they are permitted to fill and destroy. In spite of additional notice he had received of the prohibition against filling and draining wetland without authorization, Miller hired excavation contractors to trench, drain and fill large portions of the property to lower the water table and thus to destroy the wetland that would otherwise be an impediment to commercial development.
In pleading guilty, Miller has acknowledged that he knowingly ditched, drained and filled wetlands at 10 locations on the Hancock County property without having obtained a permit from the U. S. Army Corps of Engineers.
Hancock County Land LLC (HCL), the principal owner of the land, previously entered a guilty plea to related charges. HCL pleaded guilty before Senior United States District Judge Walter J. Gex III of the Southern District of Mississippi, who also imposed sentence. The corporation agreed and was ordered to pay a total penalty of $1 million, or $500,000 for each of the two counts. The corporation also agreed and was ordered to perform community service by completing wetland restoration and preservation plans ordered by the court. These require the defendant to replant with appropriate native vegetation the wetland area it excavated and filled, donate approximately 272 acres of the southwest quadrant to the Land Trust for the Mississippi Coastal Plain to be preserved in perpetuity, to fund its management and maintenance, to pay $100,000 toward the litigation costs of the Gulf Restoration Network and to pay a civil penalty to the United States Treasury for the amount of $95,000.
The case was investigated by the EPA’s Criminal Investigation Division. The case was prosecuted by Senior Trial Attorney Jeremy K. Korzenik of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorney Gaines Cleveland of the U.S. Attorney’s Office for the Southern District of Mississippi.Real Estate Developer Sentenced to Jail for Filling Protected Mississippi WetlandsRead the Press Release
Gulfport, Miss -- William R. “Rusty” Miller, a real estate developer from Fairhope, Alabama, was sentenced today by U.S. District Judge Louis Guirola, Jr. to a fifteen-month sentence, with nine months of incarceration and six months home confinement, for the unpermitted filling of wetlands near Bay St. Louis, Mississippi, in violation of the Clean Water Act, announced Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Gregory K. Davis of the Southern District of Mississippi. Miller was also ordered to pay a $15,000 fine, $19,246 in victim restitution, and to serve a one-year term of supervised release upon completion of his sentence.
Miller pled guilty in December, 2013, and admitted to having caused the excavation and filling of wetlands on a 1,710 acre parcel of undeveloped property in Hancock County, west of the intersection of Route 603 and Interstate 10. The charging document to which Miller pled guilty identified him as a part-owner of corporations that purchased and intended to develop the land. According to the felony information, in 2001, when Miller and his companies acquired the property, he was informed by a wetland expert that as much as 80 percent of the land was federally protected wetland connected by streams and bayous to the Gulf of Mexico and as such could not be developed without a permit from the U.S. Army Corps of Engineers. Wetland permits typically require that developers protect and preserve other wetlands to compensate for those they are permitted to fill and destroy. In spite of additional notice he received of the prohibition against filling and draining wetland without authorization, Miller hired excavation contractors to trench, drain, and fill large portions of the property to lower the water table and thus to destroy the wetland that would otherwise be an impediment to commercial development.
In pleading guilty, defendant Miller acknowledged that he knowingly ditched, drained and filled wetlands at 10 locations on the Hancock County property without having obtained a permit from the U. S. Army Corps of Engineers.
Hancock County Land, LLC (“HCL”), the principal owner of the land, previously entered a guilty plea to related charges. HCL pleaded guilty before Senior United States District Judge Walter J. Gex, III, who also imposed the sentence. The corporation agreed and was ordered to pay a total penalty of $1 million (or $500,000 for each of the two counts). The corporation also agreed and was ordered to perform community service by completing wetland restoration and preservation plans ordered by the Court. These require the defendant to replant with appropriate native vegetation the wetland area it excavated and filled, donate approximately 272 acres of the southwest quadrant to the Land Trust for the Mississippi Coastal Plain to be preserved in perpetuity to fund its management and maintenance, to pay $100,000 toward the litigation costs of the Gulf Restoration Network, and to pay a civil penalty to the United States Treasury of $95,000.
"Mississippi's coastal wetlands are an essential state resource,” said U.S. Attorney Davis. “They filter our water, provide us protection from storms, and they are the nurseries for fish and other wildlife. My office has demonstrated many times that we are committed to the protection of our environment. Individuals and companies who illegally develop our wetlands, who chose their own economic interest over the public's interest, will face prosecution and perhaps imprisonment, as the defendant has today."
"Wetlands play a critical role in maintaining a healthy environment," said Maureen O'Mara, Special Agent in Charge of EPA's criminal program in Mississippi. "Wetlands improve water quality, reduce flood damage and provide essential habitat for fish and wildlife. Once they are gone, it's rare to see them restored. Today's sentencing shows that those who illegally destroy these essential natural resources will be prosecuted and held accountable."
The case was prosecuted by Senior Trial Attorney Jeremy K. Korzenik of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, and Assistant U.S. Attorney Gaines Cleveland of the U.S. Attorney’s Office for the Southern District of Mississippi. U.S. Attorney Davis praised the efforts of the U.S. Environmental Protection Agency Criminal Investigation Division for its diligent work in the investigation of this matter.
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Pollock Inmate Sentenced to 200 Months for Assaulting Prison EmployeeRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that Michael Phillip Bourque, 57, originally of Cheverly, Md., was sentenced by U.S. District Judge Dee D. Drell to an additional 200 months in prison and three years of supervised release for assaulting a correctional officer.
According to evidence presented at the guilty plea on January 3, 2014, Bourque attacked an officer at the U.S. Penitentiary in Pollock, La., on June 15, 2013 with a homemade sharpened shank. Video surveillance revealed that after the officer walked to a door, and as he began unlocking it, Bourque attacked him from behind. The officer fell to the ground, and Bourque attacked the officer’s upper body. After Bourque walked off, the officer tried to sit up. Bourque returned and began stabbing the guard’s legs. The officer was later sent to a hospital where he was treated for life threatening stab wounds. Bourque is serving a 44-year prison sentence for charges related to a 2002 bank robbery in Myrtle Beach, S.C.
The FBI and the Federal Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Joseph G. Jarzabek prosecuted the case.Pikeville Doctor Admits to Conspiracy to Misbranding Prescription DrugsRead the Press Release
PIKEVILLE, KY - A Pikeville doctor admitted in federal court that he allowed a pharmacy access to his prescription drug samples that were supposed to go to his patients.
Thad Manning, 48, pleaded guilty on Wednesday to conspiracy to misbranding drugs. Manning agreed to forfeit $250,000 which represents the proceeds he received as a result of the conspiracy. Manning will also enter into drug rehabilitation for an addiction to hydrocodone.
Manning admitted that over the course of several years he received numerous prescription drug samples from various pharmaceutical companies. In the written agreement between Manning and the pharmaceutical companies, Manning pledged to provide the samples to patients. Instead, Manning allowed Marrowbone Clinic Pharmacy (later known as Marrowbone Hometown Pharmacy) to take the prescription samples and co-mingle them with other prescription drugs already in stock bottles. These co-mingled drugs were ultimately dispensed to the pharmacy’s customers.
Because the pharmacy removed the sample medications from their original packaging and mixed them with medications from stock bottles, the drug’s identifying information and expiration information on the stock bottle became inaccurate and thus misbranded. This made it impossible for the consumer to know whether or not their particular medication had been recalled by the Food and Drug Administration or the pharmaceutical companies.
Manning was the last of several individuals to be charged in 2012 as a result of an investigation conducted by the Food and Drug Administration’s Office of Criminal Investigations, the FBI, the Kentucky Board of Pharmacy, the Kentucky Office of the Inspector General and the Kentucky State Police. The individuals that were indicted have been convicted of the charges including a Houston, Texas doctor who wrote unlawful prescriptions for patients from Pike County; six defendants who were distributing narcotics obtained from Marrowbone Clinic Pharmacy; a pharmacy employee who billed insurance carriers for prescriptions that were never filled; the Marrowbone Hometown Pharmacy Corporation for the selling of prescription drug samples; and the pharmacy manager who was convicted of narcotics trafficking and conspiracy to sell prescription drug samples. Pikeville Pharmacist Ronald Huffman was named the 2012 indictment but committed suicide around the time the charges were announced.
The U.S. Attorney’s Office was represented in this case by Assistant U.S. Attorney Lee Gentry.
Manning will be sentenced in July 2014. He faces a maximum of one year in prison and a $100,000 fine. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.
Pennsylvania Man Who Sold Counterfeit Military Goods Sentenced to 21 Months in PrisonRead the Press Release
Imported Counterfeit Merchandise from China
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Hao Yang, age 25, of Bloomsburg, Pennsylvania, today to 21 months in prison for conspiring to traffic in counterfeit goods and counterfeit military goods. Judge Motz also entered an order that Yang forfeit five bank accounts worth over $59,000, a 2010 Acura purchased with proceeds of the crime, and counterfeit computer software, DVDs, sports jerseys and other items valued at approximately $280,720.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).“The defendant imported counterfeit goods from China and fraudulently sold them as legitimate merchandise,” said U.S. Attorney Rod J. Rosenstein. “Counterfeit integrated circuits from China were falsely represented to be legitimate American-made parts.”
“This investigation, conducted by HSI special agents in Baltimore, Tampa and Harrisburg, Pa., identified Chinese national Hao Yang as a co-conspirator in an overall scheme to traffic in counterfeit goods to include military grade integrated circuits and defense goods into the United States from China,” said HSI Baltimore Special Agent in Charge William Winter. “These counterfeit military goods pose a threat to our national security as they could end up in the wrong hands and legitimate manufacturing and high technology businesses may believe they are receiving authentic goods. HSI and our partners at U.S. Customs and Border Protection will continue to protect the American public and America's warfighters from the introduction of counterfeit, non-conforming, and substandard materials and goods from entering the United States.”
According to his plea agreement, from 2010 until his arrest on June 19, 2013, Yang and his co-conspirators created and operated several companies in Maryland, Pennsylvania, and elsewhere, including MS Technologies and Aone Electronics in Baltimore; Abest Technologies in China; and Arrcord Group, SMC Group and Smooth LLC. The latter three companies were operated by Yang at his residence in Bloomsburg. Yang used his residence to warehouse the counterfeit goods, including counterfeit military goods, sent to him by his co-conspirators in China. He then shipped items to buyers in the United States based on the order information provided by his co-conspirators. Yang maintained numerous bank accounts to deposit his illegal commissions and make payments associated with his counterfeit activities. He also used the commissions he received from his co-conspirators to pay for living expenses and other purchases, including a 2010 Acura TSX sedan.Yang received counterfeit circuits, a number of which were military-grade, from a co-conspirator in China. This co-conspirator sold, or attempted to sell, the circuits to individuals, companies and government agencies in the United States. Yang then distributed the counterfeit circuits, using his domestic businesses, to the buyers in the United States, sometimes in repackaged form. The co-conspirator paid Yang a commission of $500 per month for his distribution services. Yang and his co-conspirator formed Aarcord Group to conceal the fact that the counterfeit circuits were being imported from China. The counterfeit circuits that Yang redistributed could likely have caused serious bodily injury or impaired military operations, personnel or national security.
Yang also obtained other counterfeit goods, including computer software, DVDs, and sports jerseys, from other co-conspirators in China and Hong Kong, which he then distributed in the United States. Yang received commissions from these co-conspirators of $1,000 to $2,000 per month for his distribution services. Between March 2011 and April 2013, Yang used several false identities to receive hundreds of shipments from China and Hong Kong, including shipments involving integrated circuits.
United States Attorney Rod J. Rosenstein praised HSI Baltimore for its work in the investigation and thanked Assistant U.S. Attorney Christine Manuelian, who prosecuted the case.
Pennsylvania Company Pleads Guilty to Clean Air Act ChargeRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Lycoming Construction Services, LLC, a Pennsylvania Limited Liability Company located in Williamsport, Pennsylvania, pleaded guilty before U.S. District Court Chief William M. Skretny, to violating the Clean Air Act. The charge carries a maximum penalty of a fine of $500,000, a term of probation of five years, or both.
Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that from January 2012 to November 2013, the company was involved in the demolition of the Dahlstrom industrial complex, located at 443-499 Buffalo Street in Jamestown, N.Y. This project involved the demolition of a cluster of condemned buildings on either side of the Chadakoin River. Prior to the start of the demolition, a survey identified that some of the buildings contained asbestos. In February 2012, employees working on behalf of the defendant entered one of the condemned buildings and removed regulated asbestos containing material without adequately wetting it, in violation of the Clean Air Act asbestos work practice standards.
Sentencing is scheduled for August 13, 2014, at 2:00 p.m. before Judge Skretny.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent-In-Charge Neal R. Marzloff; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain David Bennett. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.Pawan Kumar Jain Arrested on Charges of Unlawfully Dispensing Prescription Drugs and Health Care FraudRead the Press Release
ALBUQUERQUE – A federal grand jury has returned an indictment charging Pawan Kumar Jain, 61, of Las Cruces, N.M., with the unlawful dispensing of opioid pain medication and health care fraud charges, announced by Acting U.S. Attorney Damon P. Martinez, Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Field Division and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Jain was arrested without incidence earlier today by the DEA and FBI. He is scheduled to make his initial appearance in federal court in Las Cruces at 8:30 a.m. tomorrow.
The 111-count indictment, which was publicly posted following Jain’s arrest, charges Jain with 61 counts of unlawfully dispensing controlled substances and 50 counts of health care fraud. According to the indictment, Jain allegedly committed the offenses charged between April 2009 and June 2010, in Doña Ana County, N.M. At the time, Jain was a licensed physician with a neurology subspecialty who operated a pain management medical practice in Las Cruces. Jain’s medical license was suspended in June 2012 and subsequently revoked in Dec. 2012 by the New Mexico Medical Board.
Each of the 61 dispensing charges alleges that Jain unlawfully dispensed prescription painkillers, primarily Oxycodone and methadone, to patients outside the usual course of medical practice and without a legitimate medical purpose. The maximum statutory penalty for a conviction on each of the 61 dispensing charges is 20 years in prison and a $1,000,000 fine.
The 50 health care fraud charges allege that Jain engaged in a scheme to defraud two health care benefit programs, Medicare and Medicaid, by submitting claims for payment for prescription medications he dispensed to patients outside the usual course of medical practice and without legitimate medical purpose. The maximum statutory penalty for a conviction on each of the health care fraud charges is ten years in prison and a $250,000 fine.
Four counts in the indictment, Counts 1 through 4, expose Jain to enhanced sentencing because the criminal conduct charge allegedly resulted in the deaths of two patients. Counts 1 and 2 of the indictment allege that Jain’s unlawful dispensing of prescription painkillers and fraudulent conduct resulted in the death of a patient identified by the initials “M.E.B.” According to the indictment, Jain dispensed 540 tablets (40 mg) of Oxycodone and 405 tablets (10 mg) of methadone to M.E.B. between April 22, 2009 and Sept. 29, 2009. Counts 3 and 4 allege that Jain’s unlawful dispensing of prescription painkillers and fraudulent conduct resulted in the death of a patient identified by the initials “N.D.”
The statutory penalty for a conviction on each of Counts 1 and 3, which allege the unlawful dispensing of a controlled substance resulting in death, is a mandatory minimum 20 years in prison and a maximum of life in prison. The statutory penalty for a conviction on each of Counts 2 and 4, which allege health care fraud resulting in death, is life imprisonment.
In announcing the indictment, DEA Special Agent in Charge Joseph M. Arabit said, “The diversion and abuse of prescription opioids, such as hydrocodone and oxycodone, threatens the health and safety of our communities and remains a serious concern for law enforcement. It is particularly concerning when a doctor, who is entrusted with the care and well-being of his patients, contributes to this problem by prescribing addictive pain killers in an unprofessional manner absent a legitimate medical purpose. By engaging in this illegal and irresponsible behavior, a medical practitioner violates the trust of those he has a duty to serve, and, most sadly, his actions can result in their death.”
“Health care fraud and unlawfully dispensing prescription drugs cost consumers, taxpayers and insurance companies billions of dollars,” said FBI Special Agent in Charge Carol K.O. Lee. “Sometimes, as this case alleges, these crimes can even kill. The FBI is proud to work alongside the Drug Enforcement Administration and the U.S. Attorney's Office to make sure physicians who attempt to defraud the government, sometimes with fatal results, are held accountable.”
This case was investigated by the DEA’s Tactical Diversion Team in El Paso, Texas and the FBI’s Healthcare Fraud Unit with assistance from the New Mexico Medical Board and the New Mexico Board of Pharmacy. The case is being prosecuted by Assistant U.S. Attorneys Sarah M. Davenport and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Charges in indictments are merely accusations, and defendants are presumed innocent unless proven guilty.
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Jain Indictment
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Owner, Manager, and Hospice Company Indicted for Committing Medicare FraudRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury in Oklahoma City has returned an indictment charging PAULA KLUDING, 38, from Chandler, Oklahoma, PATRICIA CARTER, 42, from Tecumseh, Oklahoma, and PRAIRIE VIEW HOSPICE, INC. ("Prairie View Hospice"), an Oklahoma corporation located in Chandler, Oklahoma, with 39 separate counts relating to Medicare fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the indictment, Prairie View Hospice was in business to provide hospice care to Medicare beneficiaries. Hospice care consists of providing health care, medication, medical equipment, and other goods and services to terminally ill patients. Kluding owned Prairie View Hospice and Carter was the general manager. The indictment alleges that from July of 2010 through July of 2013, the defendants conspired to conceal the true medical condition of Prairie View Hospice’s patients and the true quality and quantity of health care services they were receiving in order to "pass" a Medicare audit and to fraudulently obtain money from Medicare. Specifically, it is alleged, among other things, that certain medical documents were falsified to make it appear that nurses had visited patients or conducted necessary assessments when such visits and assessments had not, in fact, been made. Also, nursing notes were falsified to make it appear that patients were in worse health than they actually were in order to justify to Medicare the patient’s continued hospice care. It is alleged that Prairie View Hospice, acting through Kluding and Carter, sent the falsified documents to a Medicare subcontractor in response to requests to audit patient files and claims for Medicare reimbursement. The indictment charges the defendants with conspiracy, obstruction of a federal audit, and making false statements in health care matter.
If convicted, the individual defendants face up to 5 years imprisonment and a fine of $250,000 on each count. The indictment also seeks forfeiture of all property and proceeds obtained by the defendants from the alleged criminal acts. Reference is made to the indictment for further information. The defendants are all presumed innocent unless and until proven guilty.
This case is the result of an investigation by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Over 65 Charged in Largest Heroin Trafficking Investigation in Minnesota HistoryRead the Press Release
MINNEAPOLIS— Andrew Luger, United States Attorney for the District of Minnesota, and Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that over 65 heroin distributors were arrested and/or charged with state and federal drug trafficking crimes throughout the State of Minnesota. The charges are part of a joint local, state and federal drug trafficking investigation, named “Operation Exile.”
The investigation involved agents and officers from the DEA, FBI, ATF, ICE, U.S. Marshals Service, Bureau of Criminal Apprehension as well as the Sheriff’s and County Attorney’s Offices from Hennepin, Ramsey, Dakota, Anoka, Washington, St. Louis and Olmsted counties. The local police departments in all seven counties were involved as well. In addition to the over 65 arrests, agents and officers conducted dozens of search warrants at locations throughout the state to gather evidence in support of the heroin trafficking prosecutions that will follow today’s events.
Mr. Luger praised the DEA for bringing local, state and federal law enforcement together to coordinate efforts to combat heroin trafficking. “In recent years, high purity inexpensive heroin in powder form has been imported to Minnesota in large quantities. Operation Exile is a coordinated law enforcement campaign to investigate and prosecute heroin traffickers at all levels in Minnesota. Our goal is to make it as difficult as possible for drug cartels to bring heroin to our state.”
The United States Attorney’s Office has been working with law enforcement at the local, state and federal levels to prepare for Operation Exile. Federal and State prosecutors will determine over the coming days which jurisdiction will prosecute the approximately 65 traffickers charged today.
Luger noted how heroin abuse has become a significant problem in a number of states around the country. Luger stated that law enforcement is determined to prevent Minnesota from becoming the next state to face such a crisis.
“Our goal is to tackle the problem of heroin addiction before heroin traffickers become embedded in our community. Operation Exile is an important step in making Minnesota off limits to large scale heroin distributors,” said Luger.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Oregon Man Sentenced to Prison for Methamphetamine ChargesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on March 28, 2014 before U.S. District Judge Donald Molloy, SHANNON LEROY RAMSLAND, 34, of Aloha, Oregon was sentenced to 188 months imprisonment and 5 years supervised release.
The sentence is in connection with Ramsland's December 2013 guilty plea to possession with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government stated that on or about May 29, 2013, a Helena Police Detective was at the Town Pump gas station in East Helena, Montana when he observed a white Ford F350 truck in the parking lot. At the time, the detective was driving an unmarked vehicle. The detective observed who he believed to be Ramsland who had an active warrant for his arrest from Oregon. The detective called in the license plate number on the truck and confirmed that it was Ramsland.
The detective continued to watch Ramsland and the truck as it left the gas station and headed west on Highway 12 toward Helena. The detective called for backup because previous interaction with law enforcement indicated Ramsland carried a gun with him and was known to go to lengths to evade apprehension by authorities.
The detective followed Ramsland's truck while he was waiting for backup. At one point he lost sight of the truck, but reacquired it as he observed it turning on Rimini Road. Two other deputies arrived and then attempted to make a traffic stop. The truck then began heading westbound on Highway 12 at a high rate of speed reaching 80 MPH. Ramsland was swerving back and forth between the two lanes as he headed up MacDonald Pass. He then suddenly turned in to the scenic turnout, turned around, and headed back down the pass traveling eastbound. He again accelerated to speeds over 80 MPH. Deputies deployed a spike strip, but Ramsland drove into the opposite lane of traffic to avoid hitting the spike strip. As he approached the bottom of the pass, again near Rimini Road, numerous law enforcement vehicles were at this intersection. Ramsland almost caused a head on collision with a patrol car as he turned off Highway 12 and up Rimini Road. Rimini Road is a dirt/gravel road with a speed limit of 35 MPH. Ramsland accelerated to 80 MPH. As he reached the Minnehaha turnoff, he slowed slightly to attempt to make the turn, but he lost control of his truck and crashed into the bridge guardrail.
Deputies blocked the truck in and ordered Ramsland out of the truck. He complied as was taken into custody.
A search warrant was issued in the Montana First Judicial District Court to be executed on Ramsland's 2000 White Ford F-350 being driven by Ramsland. The following day, agents searched the truck. Inside the truck were several bags on the rear driver's side passenger seat. Inside one of these bags was a green Tupperware style container and another zippered pouch. Inside of the zippered pouch was a nearly full large sized zip-lock style bag of a crystallized substance. There was also a second zip-lock bag with a single piece of the crystallized substance. Furthermore, there was a silver and purple colored AWS brand digital scale (with crystallized residue). Inside the Tupperware container was a third zip-lock bag with a much smaller amount of the crystallized substance, an empty zip-lock bag, a glass pipe with residue (commonly used to smoke meth) and various packaged cold medicines.
Oregon Man Sentenced for Illegal Possession of FirearmsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena on March 24, 2014 before U.S. District Judge Sam Haddon, CHRISTOPHER ROBERT LAWRENCE was sentenced to 180 months imprisonment and 5 years supervised release.
The sentence is in connection with Lawrence's December 2013 guilty plea to being a felon in possession of firearms. In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated that On October 16, 2009, Christopher Robert Lawrence, a convicted felon who absconded from Oregon state supervision, possessed three firearms in Bozeman, Montana. Lawrence is believed to be an Armed Career Criminal due to prior, Oregon convictions for burglary and robbery.
On October 16, 2009, a hotel employee turned over a Derringer handgun to the Bozeman Police Chief and Deputy Chief, who were having lunch at the Grantree Hotel restaurant. The employee explained that the handgun was recovered from the business center after a male and female staying at the hotel left the business center in Bozeman, Montana. The employee provided the room number to officers. The officers went to the room. After knocking and announcing themselves, the officers heard voices and shuffling. One officer observed a man (Lawrence) exit the room through the window, run to a nearby vehicle, and drive quickly away.
Upon further investigation and search warrant execution, officers recovered two more handguns from the hotel room. The Ruger 9mm pistol was located in a night stand near with window that Lawrence walked out of. Officers also located a few partial boxes of 9mm ammunition. At the time, the female claimed ownership and possession of all three handguns.
The female later provided a statement in August of 2012 detailing her involvement with Lawrence and his possession of the three firearms and 9mm ammunition in this case. Lawrence lived with her during the summer of 2009. She knew he was a convicted felon who could not have firearm. Both of them were using heroin. Lawrence was obsessed with her two firearms - the Smith and Wesson and the .38 caliber revolver. She purchased the Ruger 9mm for Lawrence. He took her to the convenience store, told her to fill out the form, and buy the gun. She did as she was told although they already had two guns. The female dropped the derringer in the hotel. The derringer was in her pocket because Lawrence wanted the firearm near him. When Lawrence saw the police, he stepped back into the hotel room, placed the firearm in the night stand, and stepped out of the window again. She originally placed all three of the firearms in the room safe. Lawrence did have the combination to the safe and had access to all of the firearms.
Lawrence also provided a statement in November 2012. Lawrence admitted his relationship with the female during the summer of 2009. He acknowledged that he was messed up on heroin during that time - he used heroin during the time of the road trip with her, and he used every day until he was caught by the police and sent to prison.
Lawrence further stated that when the police came into his Bozeman hotel room that he walked out the window and ran. He went to a nearby Lowe's store, called the female, and asked her to pick him up. He admitted to touching the ammunition, but would not answer the question if he purchased any of the ammunition. Lawrence denied touching or possessing any of the firearms.
New York-Based Marijuana Trafficker Convicted in Manhattan Federal Court of Racketeering and Narcotics Conspiracy ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that OSCAR RODRIGUEZ, 36, was convicted yesterday in Manhattan federal court of racketeering conspiracy and marijuana trafficking charges. As a result of his conviction, RODRIGUEZ faces a mandatory minimum sentence of twenty years in prison and a maximum sentence of life in prison.
Manhattan U.S. Attorney Preet Bharara said: “A jury has convicted Oscar Rodriguez of the crimes he committed as a key member of a murderous, narcotics-trafficking organization. The neighborhoods in Washington Heights that Rodriguez and his organization terrorized for over a decade are safer as a result of his conviction, and the conviction of over 50 other Rodriguez Enterprise members and associates in related cases brought by our Office. These prosecutions exemplify the positive difference that federal and local law enforcement, working together, can make in the everyday lives of the citizens in our communities.”
RODRIGUEZ’s charges arose out of a multi-year investigation titled “Operation Green Venom,” a coordinated multi-agency investigation that was led by ICE HSI and first announced in October 2010. With his conviction, a total of more than 50 defendants have been convicted in United States v. Manuel Geovanny Rodriguez-Perez, et al., 10 Cr. 905 (LTS), and related cases. Those defendants include former Rock-a-fella music founder Kareem Burke, a/k/a “Biggs,” who received a sentence of five years in prison, and High Times Magazine editor Matthew Woodstock Stang, a/k/a “Magazine Guy.”
According to the Indictment and the evidence at trial, OSCAR RODRIGUEZ was a member of the “Rodriguez Enterprise,” a massive racketeering organization whose members sold large quantities of marijuana, engaged in murders and other violent acts, transported and laundered millions of dollars, obstructed justice and committed perjury, and engaged in firearms offenses. The leader of the Rodriguez Enterprise was Manuel Geovanny Rodriguez-Perez, OSCR RODRIGUEZ’s cousin. OSCAR RODRIGUEZ worked closely with Rodriguez-Perez for over a decade, trafficking truckloads of marijuana, managing a lucrative block in Washington Heights, Manhattan, perpetrating violent assaults – including the near-fatal assault of his own employee – and participating in a plot to uncover and remove the body of another employee murdered by members of the Rodriguez Enterprise. OSCAR RODRIGUEZ participated in these acts on behalf of the Rodriguez Enterprise from at least 1996 through his arrest on October 14, 2010.
RODRIGUEZ, 36, was convicted of one count of narcotics conspiracy, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison, and one count of racketeering conspiracy, which carries a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided for informational purposes only, as any sentencing of the defendant will be determined by the Court.
Mr. Bharara praised the outstanding investigative work of ICE HSI and the NYPD. He also thanked the U.S. Drug Enforcement Administration; the U.S. Marshals Service; the Bergen County, New Jersey, Prosecutor’s Office; the Englewood, New Jersey, Police Department; the U.S. Department of Housing and Urban Development; the City of New York Department of Investigation; and the New York County District Attorney’s Office for their assistance. Mr. Bharara added that the investigation is continuing.
The prosecution of the cases arising from “Operation Green Venom” is being overseen by the Office’s Violent Crimes Unit. Assistant U.S. Attorneys Amie N. Ely and Andrew C. Adams are in charge of the prosecution. Assistant U.S. Attorney Adams is also responsible for forfeiture proceedings in connection with this case.
U.S. v. Oscar Rodriguez Indictment
New Jersey Man Sentenced for Brutal Attack in National ParkRead the Press Release
PHILADELPHIA - Baldwin Centeno, 26, of Camden, New Jersey, was sentenced today to 57 months in prison for randomly beating a man, near Philadelphia’s Independence Hall, who was merely asking for assistance. On June 15, 2012, Centeno and his uncle, Santos Centeno, 47, were standing on 4th Street at National Independence Park when the victim approached them. The victim’s car was missing and he was asking for help when Centeno and his nephew began beating him for no reason. The victim suffered traumatic brain injuries, facial fractures, and other serious injuries for which he required hospitalization. A jury convicted Centeno of assault resulting in serious bodily injury and assault by striking, beating, or wounding. Santos Centeno, who was convicted of an additional incident, will be sentenced May 5, 2014.
In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered three years of supervised release, $6,000 restitution, an $8,000 fine, and a $200 special assessment.
The case was investigated by the Philadelphia Police Department and the National Park Service, United States Department of the Interior. It is being prosecuted by Assistant United States Attorney Denise S. Wolf.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Navy Petty Officer Based in Japan Charged <br /> in International Bribery ScandalRead the Press Release
A fourth U.S. Navy official has been charged in a complaint unsealed today with accepting cash, luxury travel and consumer electronics from a foreign defense contractor in exchange for classified and internal U.S. Navy information.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Deputy Inspector General for Investigations James B. Burch of the U.S. Department of Defense Office of the Inspector General made the announcement.
Petty Officer First Class Dan Layug, 27, who enlisted in the Navy in September 2006, was arrested on April 16, 2014, in San Diego by special agents with NCIS and Defense Criminal Investigative Service. Layug made his initial appearance today in federal court before U.S. Magistrate Judge Karen S. Crawford in the Southern District of California.
According to the complaint, Layug received bribes in return for sending sensitive U.S. Navy information to employees of Glenn Defense Marine Asia (GDMA), a defense contractor. GDMA CEO Leonard Glenn Francis, 49, of Malaysia, had previously been charged with conspiring to bribe U.S. Navy officials, and GDMA executive Alex Wisidagama, 40, of Singapore, pleaded guilty on March 18, 2014, to defrauding the U.S. Navy. Two other senior Navy officials – Commander Michael Vannak Khem Misiewicz, 46, and Commander Jose Luis Sanchez, 41 – have been charged separately with bribery conspiracies involving Francis and have pleaded not guilty. On Dec. 17, 2013, Naval Criminal Investigative Service (NCIS) Supervisory Special Agent John Bertrand Beliveau II, 44, pleaded guilty to bribery charges for regularly tipping off Francis to the status of the government’s investigation into GDMA.
According to the complaint, Layug worked secretly on behalf of GDMA by providing classified ship schedules and other sensitive U.S. Navy information in exchange for cash, travel expenses, and consumer electronics. Court records allege that Layug used his position as a logistics specialist at a U.S. Navy facility in Yokosuka, Japan, to gain access to U.S. Navy ship schedules – some of which were classified – and other internal information, and provided this information to GDMA’s vice president of global operations. In exchange, court records allege, GDMA provided Layug with regular payments, some of which were delivered in envelopes of cash. The complaint alleges that on May 21, 2012, the vice president of global operations instructed a GDMA accountant that “at the end of each month, we will be providing an allowance to Mr. Dan Layug. Total of US $1000. You may pay him the equivalent in Yen. He will come by the office at the end of each month to see you.”
Court records allege that, in addition to his monthly “allowance,” Layug sought consumer electronics from GDMA. In an email on March 9, 2012, Layug asked the vice president of global operations “what are the chances of getting the new Ipad 3 [sic]? Please let me know.” In another email exchange on May 28, 2013, Layug asked the vice president of global operations for a “bucket list” of items including a high end camera, an iPhone5 cellular phone, a Samsung S4 cellular phone, and an iPad Mini. Shortly after sending his “bucket list” to the vice president of global operations, Layug stated in an email that “the camera is awesome bro! Thanks a lot! Been a while since I had a new gadget!”
In addition to consumer electronics, GDMA allegedly provided Layug and his friends with rooms at luxury hotels throughout Asia.
According to court documents, Layug allegedly undertook steps to conceal his bribery relationship with GDMA by, among other things, describing classified ship schedules using the code word “golf schedules” and opening a bank account in the name of his infant daughter into which he deposited portions of his “allowance.”
The ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.
The case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California, Director of Procurement Fraud Catherine Votaw and Attorney Brian Young of the Criminal Division’s Fraud Section, and Trial Attorney Wade Weems, on detail to the Fraud Section from the Special Inspector General for Afghan Reconstruction.
The charges contained in the criminal complaint are merely allegations, and the defendant is presumed to be not guilty unless and until proven guilty.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline , or call (800) 424-9098.Muskogee Man Sentenced to 121 Months for Brandishing A Firearm, Robbery in Indian CountryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JAMAL LEE PIERCY, age 25, of Muskogee, Oklahoma, was sentenced to 37 months imprisonment for Robbery in Indian Country, in violation of Title 18, United States Code, Sections 1151, 1152 and 2111 and 84 months imprisonment to be served consecutively for Brandishing a Firearm During and in Relation to and in Furtherance of a Crime of Violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii). The terms of imprisonment will be followed by 3 years on supervised release.
Charges arose from an investigation by the Muscogee Creek Nation Lighthorse Police, the Muskogee Police Department and the Federal Bureau of Investigation. PIERCY was indicted in August, 2013 and pled guilty in September, 2013.
The Indictment alleged that on or about June 18, 2013, within the Eastern District of Oklahoma, within Indian country, on land held in Trust by the United States of America on behalf of the Muscogee (Creek) Nation, the defendant, a non-Indian, by force, violence and intimidation, took United States Currency from the presence of S.H., an Indian and did knowingly brandish and use a firearm, that is, a small caliber handgun, during and in relation to and in furtherance of a crime of violence.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Dean Burris represented the United States.
Multi-Convicted Felons Sentenced in Case Involving the Burglary of Firearms from A Rincon, Georgia ResidenceRead the Press Release
SAVANNAH, GA - James Seyfried, 55, from Palm Coast; Florida, Finlandia Pineda, 56, from Palm Coast, Florida; and Elaine Taylor, 61, from Alma, Georgia were sentenced yesterday to lengthy prison terms by Senior U. S. District Court Judge B. Avant Edenfield in a case that involved the burglary of a Rincon, Georgia residence of numerous firearms and other items. Each defendant earlier pled guilty to possessing firearms as a convicted felon. Seyfried was sentenced to serve 120 months in prison, Pineda was sentenced to serve 115 months in prison, and Taylor was sentenced to serve 70 months in prison. All three will serve 3 years of supervised release upon their release from prison.
United States Attorney Edward J. Tarver stated, “The combination of repeat offenders with multiple felony convictions and home burglaries makes for a volatile situation, particularly when firearms are the target. Thanks to the quick work of our law enforcement partners, a number of stolen firearms did not end up in our communities to be used in the commission of additional crimes. Dangerous felons who have failed attempts at rehabilitation, continue to commit crimes and possess firearms should do hard time for a long time in a federal prison.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta, stated, “The FBI-led Southeast Georgia Violent Crime Task Force is pleased with the role it played in removing three dangerous repeat offenders from our streets while recovering numerous firearms, including several fully automatic machine guns. With the establishment of this task force, area law enforcement are better prepared to address those more violent individuals in a more comprehensive and effective manner as seen here.”
According to evidence presented during the guilty plea and sentencing hearings, Taylor, a multi-convicted felon, received information that a Rincon, Georgia resident had a number of safes in his home containing cash, firearms, and other items. Taylor recruited Seyfried and Pineda, also multi-convicted felons, in a conspiracy to burglarize the Rincon home. On April 15, 2013, the defendants stole the safes from the Rincon home and transported them to Florida. Once in Florida, the defendants were able to open the safes, which contained 16 firearms, including fully automatic rifles (machine guns) and semi-automatic firearms, as well as silencers, smoke grenades, and thousands of dollars in cash.
Taylor’s criminal history includes over 100 felony convictions, including convictions for tax fraud, counterfeiting, and an aggravated assault. Seyfried, who was on federal supervised release at the time of the burglary, has felony convictions that include cocaine trafficking and possessing a firearm as a convicted felon. Pineda’s criminal history includes a murder-for-hire conviction, where she attempted to hire a hit man to murder Seyfried, her husband at the time.
The investigation of this case was conducted by the FBI Safe Streets Violent Crime Task Force of Southeast Georgia, which was assisted by the Effingham County Sheriff’s Office and the Bacon County Sheriff’s Office. Assistant United States Attorneys E. Greg Gilluly, Jr. and T. Shane Mayes prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Mexican Man Sentenced for Trafficking Marijuana Out of Starr CountyRead the Press Release
McALLEN, Texas – Silvestre Barrera-Villegas, a member of drug trafficking conspiracy originating out Starr County, has been ordered to federal prison for nearly 10 years, announced United States Attorney Kenneth Magidson. Barrera-Villegas, 52, of Camargo, Tamaulipas, Mexico, pleaded guilty Jan. 29, 2014, to his role in smuggling more than 8,000 kilograms of marijuana in 2013.
Today, U.S. District Judge Micaela Alvarez sentenced Barrera-Villegas to a total term of 130 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
Barrera-Villegas admitted to assisting Sostenes Ferreira-Garcia, 50, of Rio Grande City; and Jorge Luis Martinez-Moreno, 28, and Homero Daniel Gutierrez-Aguilar, 24, both of Camargo, in smuggling marijuana from Mexico near La Casita for further distribution within the U.S.Ferreira-Garcia, who coordinated the smuggling and further distribution was previously sentenced to 240 months in federal prison, while Martinez-Moreno and Gutierrez-Aguilar, who assisted with the loading and unloading of the marijuana were sentenced, respectively, to 140 and 112 months in prison.
At the sentencing of Barrera-Villegas today, the court took into consideration information that Barrrera-Villegas, along with Ruben Patino-Garcia, took over Ferreira-Garcia’s duties after the organization in Mexico became dissatisfied with the work of Ferreira-Garcia.
Patino-Garcia, aka Orejon, 19, and Rosbel Morin-Barrera, aka Zacate, 54, both of Mexico, are fugitives in the case. The public can report tips to Immigration and Customs Enforcement - Homeland Security Investigations (ICE-HSI) by calling (866)-DHS-2-ICE (866-347-2423). On the receiving end, a team of special agents, intelligence research specialists and law enforcement specialists man the phones. They are all highly trained in a number of laws related to worksite enforcement, document and benefit fraud, intellectual property rights, money laundering, drug smuggling, child pornography and human trafficking. Callers can expect minimal wait times to speak to a tip line specialist. Average phone calls take less than five minutes to complete. The ICE-HSI Tip Line is open 24 hours a day, seven days a week.
This prosecution was a part of Organized Crime Drug Enforcement Task Force investigation dubbed “Operation Casanova,” conducted by HSI, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation and the Starr County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Juan F. Alanis is prosecuting the case.
Metairie, Louisiana Man, Torrey Ledell Davis, Charged with Sex Trafficking of A Minor by into the New Orleans AreaRead the Press Release
TORREY LEDELL DAVIS, age 42, most recently from Metairie, Louisiana was charged today in a three-count Indictment for offenses related to his involvement in the sex trafficking of a minor from the Jackson, Mississippi-area into the New Orleans area for the purposes of that minor engaging in prostitution, announced United States Attorney Kenneth Allen Polite, Jr..
According to the Indictment, in November 2012 DAVIS was contacted by an individual living in the Jackson, Mississippi area. That individual inquired whether DAVIS would be willing to train the victim, who had just turned 16-years-old, to work as a prostitute. DAVIS agreed, and and on November 26, 2012, DAVIS drove to the Scottish Inn in Jackson, Mississippi, picked up the victim, and drove her back to DAVIS’S residence in Metairie. Once at the residence, DAVIS gave the victim drugs to numb her senses, took sexually suggestive photographs of the victim, and saved the photographs to his laptop computer. DAVIS also arranged for the victim to be paired with a female who had worked as a prostitute for DAVIS; that individual used DAVIS’S laptop computer and the pictures DAVIS had taken of the victim to create a prostitution advertisement on an online classified advertisement website. At DAVIS’S instruction, the female drove the victim to the French Quarter of New Orleans to work as a prostitute. While in the French Quarter that evening, law enforcement officials arrested the minor for prostitution after an undercover officer arranged for the victim to perform a sexual act on the officer in exchange for $500.
If convicted, DAVIS faces a mandatory minimum term of imprisonment of ten (15) years and a maximum of life, followed by up to a life term of supervised release, and a $250,000 fine. DAVIS can also be required to register as sex offenders.
United States Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The investigation was initiated by the New Orleans Police Department and is being investigated by the Federal Bureau of Investigation and the Louisiana State Police Special Victims Unit. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
Matilda Butts Sentenced for Misappropriation of Postal FundsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on March 26, 2014, before U.S. District Judge Donald Molloy, MATILDA BUTTS was sentenced to 2 years' probation with 3 months house arrest and $13,731.97 in restitution.
Butts was sentenced in connection with her December 2013 guilty plea to misappropriation of postal funds. In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, Butts began working for the Eureka Post Office as a mail clerk in December, 2008. During her career, she served as an Officer in Charge and Postmaster at several other offices as well. Pertinent to this case, Butts served as Postmaster for the Eureka Post Office from November 10, 2007, through July 23, 2010.
On September 10, 2010, the United States Postal Service Office of Inspector General ("USPS OIG") received notice of several financial irregularities regarding bulk-mail transactions that were never processed at the Eureka Post Office. Further investigation revealed that Butts failed to document certain permit mailing operations, ignored process controls, failed to enter bulk-mailing transactions into the required computer programs, and improperly stored money order and check payments in her desk.
Specifically, the USPS OIG discovered a Daily Financial Report from May 15, 2009, indicating that Butts failed to properly credit a money order, bulk-mailing payment in the amount of $534.58, which had been received from a local business that regularly paid for bulk mail using non-postal money orders. Butts used the money to buy $534.58 in stamp stock and postal supplies for herself.
When dealing with other money orders provided by the local business referenced in the preceding paragraph, Butts would either record them as being payments for stamps, which she would then take for herself, or record them as Eureka Post Office deposits, in which case she would steal the equivalent amount in cash from the Post Office. On other occasions, Butts would record personal checks or Postal Service money orders as deposits, again, stealing the equivalent amount in cash.
On November 15, 2012, agents from the USPS OIG conducted a non-custodial interview of Butts at her residence in Fortine, Montana. During the interview, Butts admitted to embezzling Postal Service funds and explained how and why she did it. She also informed the agents that she used some of the money to pay higher wages to a "casual" Postal Service employee ("casual" means a temporary postal employee who works at will, has no union rights, has no set position or usual duties, and receives no benefits other than pay). Butts also executed a handwritten, sworn statement in which she discussed how much money she had embezzled from the Eureka Post Office. Butts stole approximately $13,731.97 in cash, stamps, postal products, and services between January 30, 2009 and July 19, 2010. The final analysis showed that Butts failed to properly record at least 28 bulk mailing transactions.
Mastermind of Violent Robbery Crew Convicted of Robbery Murder and Weapons ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce today that Terrance Brown, 41, of Miami, was convicted of Hobbs Act robbery, two counts of attempted Hobbs Act robbery, and three counts of possession of a firearm in furtherance of a crime of violence.
According to the indictment and evidence presented at trial, Brown was the mastermind of a seven-man robbery crew that conspired in 2010 to rob armored Brinks trucks. In July 2010, the crew planned to rob a Brinks truck at a Bank of America in Lighthouse Point. However, that robbery did not occur because the Brinks truck did not arrive at the bank at the time that the crew planned to rob it. In September 2010, the crew attempted to rob another Brinks truck at a Bank of America in Miramar. That robbery also did not occur because a police vehicle drove through the bank parking lot just prior to the planned robbery causing members of the crew to run from the scene. Finally, in October 2010, the crew returned to the same Bank of America in Miramar to once again rob the Brinks guard as he was delivering currency to the bank. During that robbery, the gunman fatally shot the guard in the head while Brown and his accomplices acted as lookouts. The gunman was arrested at the scene, and one year later, pleaded guilty and was sentenced to life in prison. Thereafter, in July of 2013, a jury convicted Brown and three other co-defendants of several charges, including conspiracy to commit Hobbs Act robbery. However, the jury was unable to reach a unanimous verdict on several other charges, which resulted in a retrial for the charges for which defendant Brown was just convicted.
U.S. Attorney Wifredo A. Ferrer stated, “We are gratified that the jury reached a unanimous verdict finding Terrance Brown guilty of robbery murder and related weapons charges. Brown was the mastermind of a violent robbery crew that resulted in the senseless murder of a Brinks guard. Today our community can sleep sounder knowing that Brown is off our streets and that justice has been served.”
“Terrance Brown is a violent and greedy criminal who was bent on hitting armored truck couriers during their deliveries,” said George L. Piro, Special Agent in Charge, FBI Miami. “In July 2010, Brown and his robbery crew fatally shot a Brinks guard during the course of his duties. For this brutal and cowardly act, Brown is now being held accountable.”
Sentencing for Brown is scheduled for July 1, 2014 before U.S. District Judge Robin S. Rosenbaum in Ft. Lauderdale. Brown faces a maximum sentence of life in prison.
Mr. Ferrer commended the FBI’s Violent Crime Task Force, the Broward County Sheriff’s Office, the Miramar Police Department, the Lighthouse Point Police Department and the Coconut Creek Police Department for their excellent work on this matter. This case was prosecuted by Assistant U.S. Attorneys Mark Dispoto, Marc Anton, and Michael Gilfarb.
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.
Maryland Man Sentenced for Conspiracy to Provide Material Support to TerroristsRead the Press Release
PHILADELPHIA - Mohammad Hassan Khalid, 20, a Pakistani citizen and U.S. lawful permanent resident who resided in Maryland, was sentenced today to five years in prison for conspiracy to provide material support to terrorists. Khalid participated in a scheme to support, recruit and coordinate members of a conspiracy in their plan to wage violent jihad in and around Europe. He pleaded guilty on May 4, 2012.
Khalid conspired with Jamie Paulin-Ramirez and Colleen LaRose, a/k/a “Jihad Jane”, who were charged separately, in a conspiracy to provide material support to terrorists. LaRose also pleaded guilty to conspiracy to kill in a foreign country, making false statements and attempted identity theft and was sentenced to 10 years in prison; Paulin-Ramirez pleaded guilty to conspiracy to provide material support to terrorists and was sentenced to eight years in prison.
In addition to the prison term, U.S. District Court Judge Petrese B. Tucker ordered three years of supervised release, with limited access to computers, and a $100 special assessment. The sentencing result was announced by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward Hanko, and Assistant Attorney General for National Security John Carlin.
Khalid's co-defendant, Ali Charaf Damache, a/k/a “Theblackflag," an Algerian man who resided in Ireland, is in custody in Ireland, pending extradition to the United States.
From about 2008 through July 2011, Khalid and Damache conspired with LaRose, Paulin-Ramirez, and others, to provide material support and resources to terrorists, including logistical support, recruitment services, financial support, identification documents and personnel. Khalid, Damache and others devised and coordinated a violent jihad organization consisting of men and women from Europe and the United States divided into a planning team, a research team, an action team, a recruitment team and a finance team; some of whom would travel to South Asia for explosives training and return to Europe to wage violent jihad.
As part of the conspiracy, Khalid, Damache, LaRose, and others recruited men online to wage violent jihad in South Asia and Europe. In addition, Khalid, Damache, LaRose, and others allegedly recruited women who had passports and the ability to travel to and around Europe in support of violent jihad. LaRose, Paulin-Ramirez, and others traveled to and around Europe to participate in and support violent jihad. In addition, Khalid, LaRose, and others also solicited funds online for terrorists.
For example, in July 2009, Khalid posted or caused to be posted an online solicitation for funds to support terrorism on behalf of LaRose and later sent electronic communications to multiple online forums requesting the deletion of all posts by LaRose after she was questioned by the FBI. In August 2009, Khalid sent a questionnaire to LaRose in which he asked another potential female recruit about her beliefs and intentions with regard to violent jihad. In addition, Khalid received and concealed the location of a U.S. passport that LaRose had stolen from another individual.
The Khalid case was investigated by the FBI Field Division in Baltimore, in conjunction with the FBI's Joint Terrorism Task Force in Philadelphia, and the FBI Field Divisions in New York and Washington, D.C. Authorities in Ireland also provided assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams and Trial Attorney Matthew F. Blue, from the Counterterrorism Section of the Justice Department's National Security Division. The Office of International Affairs in the Justice Department's Criminal Division also provided assistance.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Manhattan U.S. Attorney Announces Settlement Relating to Iranian-Owned Manhattan Office Tower That Will Provide Recovery to Terrorism VictimsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that the United States entered into a settlement agreement with the holders of terrorism-related judgments against the Government of Iran (the “Judgment Creditors”) concerning properties (the “Defendant Properties”) found to have been forfeited by the entities that served as fronts for the Government of Iran, in violation of federal law. The Defendant Properties include a 36-story office building located at 650 Fifth Avenue (the “Building”), several other properties in California, Virginia, Texas, Maryland, and Queens, New York, and the contents of several bank accounts formerly in the name of entities that served as fronts for the Government of Iran. Under the settlement, which was approved by U.S. District Judge Katherine B. Forrest today, the real estate Defendant Properties will be sold by the United States Marshals Service, with the net sale proceeds, along with the contents of the bank accounts, distributed to the signatory Judgment Creditors according to an agreed-upon distribution. Of the 20 judgment creditors who were parties to the litigation, this settlement resolves the case as to all but one of them. The settling Judgment Creditors include the families and estates of victims of the 1983 terrorist bombings of U.S. Marine Barracks in Beirut, the 1996 terrorist bombing of the Khobar Towers in Saudi Arabia, and terrorist attacks in Israel and elsewhere.
This settlement follows Judge Forrest’s September 11, 2013, order, in which she found that the Building is forfeitable to the United States, and Judge Forrest’s order of March 28, 2014, in which she found that the remaining Defendant Properties are forfeitable to the United States and that the Judgment Creditors should also prevail in their claims against the entities that served as fronts for Iran.
Manhattan U.S. Attorney Bharara said: “From the very beginning of this case, this Office sought to dismantle Iran’s slice of Manhattan – an office tower on Fifth Avenue – both to end Iran's illegal sanctions-violation and money-laundering schemes and to provide a means of compensating victims of Iranian-sponsored terrorism. With this settlement, we have taken an important step toward completing what will be the largest ever terrorism-related forfeiture and providing a substantial recovery for victims of terrorism.”
According to the settlement papers, the amended civil forfeiture Complaint, and the opinions issued by Judge Forrest in this case:
The Alavi Foundation has been providing numerous services to the Iranian Government, including managing the Building for the Iranian Government, running a charitable organization for the Iranian Government, and transferring funds from 650 Fifth Avenue Company to Bank Melli Iran (“Bank Melli”), a bank wholly owned and controlled by the Government of Iran. Likewise, Assa Corporation and Assa Company Limited (“Assa Co. Ltd.”) have been providing numerous services to Bank Melli in contravention of the International Emergency Economic Powers Act (“IEEPA”) and the Iranian Transactions Regulations, including transferring rental income generated from 650 Fifth Avenue Company to Bank Melli, following Bank Melli’s instructions with regard to Assa Corporation’s affairs, reporting back to Bank Melli on Assa Corporation’s financial situation and business dealings, and managing the affairs of Assa Corporation for the benefit of Bank Melli.
The Building was constructed in the 1970s by the Pahlavi Foundation, a non-profit organization operated by the Shah of Iran to pursue Iran’s charitable interests in the United States, and was financed by a substantial loan from Bank Melli.
After the 1979 Iranian revolution, the Islamic Republic of Iran established the Bonyad Mostazafan, also known as the Bonyad Mostazafan va Janbazan (“Bonyad Mostazafan”), to centralize, take possession of, and manage property expropriated by the revolutionary government. The Bonyad Mostazafan is controlled by the Government of Iran, and reports directly to the Ayatollah. The Bonyad Mostazafan sought to take control of the Shah’s property, including the assets of the Pahlavi Foundation. Between approximately October 1978 and approximately October 1979, all five previous directors of the Pahlavi Foundation resigned, and four new directors took their places. On February 25, 1980, an amended Certificate of Incorporation for the Pahlavi Foundation was filed renaming the Foundation “The Mostazafan Foundation of New York.” The Mostazafan Foundation of New York later renamed itself the Alavi Foundation.
The Government of Iran’s Involvement in the Management of the Building
In 1989, the Alavi Foundation and Bank Melli formed a partnership, 650 Fifth Avenue Company, in order to avoid paying federal taxes on rental income from the Building. Bank Melli’s ownership interest in 650 Fifth Avenue Company, however, was disguised through the creation of two shell companies. The Alavi Foundation transferred 35 percent of 650 Fifth Avenue Company to Assa Corporation, an entity wholly owned by Assa Co. Ltd. Assa Co. Ltd. is a Jersey, Channel Islands, United Kingdom, entity owned by Iranian citizens who represent the interests of Bank Melli. In conjunction with the transfer of the 35 percent interest in 650 Fifth Avenue Company to Assa Corp., Bank Melli cancelled its loan on the Building. Today, the Alavi Foundation owns 60 percent of 650 Fifth Avenue Company, and Bank Melli owns 40 percent of 650 Fifth Avenue Company, through Assa Corp. and Assa Co. Ltd.
The decision to convert Bank Melli’s mortgage on the Building into a partnership interest in 650 Fifth Avenue Company was discussed and approved by high-level Iranian Government officials. Among others, the head of the Bonyad Mostazafan (also the Deputy Prime Minister of Iran), the Office of the Prime Minister of Iran, the director of the Central Bank of Iran, and the general director of Bank Melli, as well as other Bonyad Mostazafan and Bank Melli officials, discussed and approved the partnership between the Alavi Foundation and Bank Melli. After the Alavi Foundation and Assa Corporation entered into the 650 Fifth Avenue Company partnership agreement, a Bonyad Mostazafan official forwarded the agreement to a Bank Melli official, noting that “the partnership is based on prior agreements between the Ministry of Finance, Bank Melli, and the Bonyad Mostazafan, with the only change being the building will be valued at two million dollars less than as previously agreed . . . .”
The Iranian Government’s control of the Alavi Foundation has continued. In 1989, Kamal Kharrazi was named as the new Iranian Ambassador to the United Nations. As a result of tension between the new Ambassador and the Alavi Foundation president, the Ambassador eventually demanded the president’s resignation. In July 1991, the president resigned his position, and he was replaced that August by an individual who served as president until the summer of 2007. In 1992, the Alavi Foundation’s new president met in New York and in Tehran with Bank Melli officials concerning $1.7 million in real estate taxes owed by 650 Fifth Avenue Company and $2.2 million in unpaid distributions owed by the partnership to Assa Corp. The Tehran meeting was attended by a Bank Melli board member, the head of Bank Melli’s Overseas Network Supervisory Department, the head of Bank Melli’s New York branch, and the head of Bank Melli’s Foreign Affairs. The head of the board of directors and managing director of Bank Melli forwarded the minutes of the Tehran meeting to the head of the Bonyad Mostazafan along with a cover letter stating that “it is hoped that your firm instructions and the extra attention of the brothers from that esteemed Foundation, who are responsible for the Alavi Foundation of New York, will resolve the partnership’s mutual problems quickly. . . .”
Iranian Ambassadors to the U.N. continued to direct the affairs of the Alavi Foundation and to attend meetings of the Alavi Foundation board. In the late 1990s, two Bank Melli employees sought Ambassador Kharrazi’s permission for Assa Corp. to sell its interest in 650 Fifth Avenue Company. The Ambassador informed Bank Melli that the Building would be sold when the real estate market improved. Ambassador Seyed Mohammad Hadi Nejad Hosseinian, Kharrazi’s successor, originated the Alavi Foundation’s project funding formula. In 2004, Hosseinian’s successor told the Alavi Foundation to settle a lawsuit with a company controlled by a former Alavi Foundation president for $4 million.
In October 2007, Alavi Foundation board members met with the Ambassador and another former Iranian Government official to address issues relating to the Building’s management and Alavi’s charitable services. At that meeting, the Ambassador stated that it was necessary to increase the Building’s profit, that the Ambassador was worried about Assa Corporation’s 40 percent share, that the Foundation should only allocate to Shiites, and that the Ambassador would determine the composition of the board. The Ambassador ordered a study about the possibility of increasing the Foundation’s revenue and profit, stating that a business plan and comparative analysis had to be done. The Ambassador instructed: “I have to definitely see the proposed allocations before a final decision is reached. I have to be kept informed and I have to be able to state my opinion in order for you to make a decision.” The Ambassador told the board members that “[i]f there is an issue that needs to be conveyed to Tehran, let me know, I will convey it.”
The Forfeiture Complaints, the Summary Judgment Decisions, and the Settlement
On December 17, 2008, this Office filed a civil Complaint seeking forfeiture of the 40 percent interest held by Assa Corporation in 650 Fifth Avenue Company. In an Amended Complaint filed in 2009, the United States sought to forfeit all right, title, and interest in 650 Fifth Avenue Company, including the Alavi Foundation’s 60 percent interest in the company. The United States also sought to forfeit the contents of bank accounts held by 650 Fifth Avenue Company, the Alavi Foundation, and Assa Corporation, as well as other real properties owned by the Alavi Foundation in Virginia, California, Maryland, Texas, and Queens. The Judgment Creditors filed claims against the Defendant Properties pursuant to the Terrorism Risk Reinsurance Act (“TRIA”), under which they asserted valid terrorism-related judgments against the Government of Iran.
On September 11, 2013, days before the commencement of what would have been the largest forfeiture trial in history, Judge Forrest granted summary judgment in favor of the United States’ claims for forfeiture of the Building as the result of violations of the Iranian Transactions Regulations promulgated under the IEEPA, and the federal money laundering statutes. The Court found that the Alavi Foundation and Assa Corp. committed the IEEPA violations and money laundering offenses. Subsequently, on March 28, 2014, the Court granted summary judgment in favor of the United States’ claims for forfeiture of the remaining Defendant Properties, and in favor of the Judgment Creditors’ claims under TRIA. As part of this decision, Judge Forrest ruled that the Alavi Foundation and Assa Corporation effectively “are” Iran for purposes of the Foreign Sovereign Immunities Act and TRIA, and thus subject to the jurisdiction of the court. The combined effect of these decisions was to ensure that the Building would no longer be in the control of the Alavi Foundation and Assa Corporation.
Under the terms of the settlement entered today, the Building and other forfeited assets will be sold by the United States Marshals Service. The Government will recover its litigation expenses and any sales costs from the sales proceeds, and the remaining net proceeds of the sales will be distributed to the Judgment Creditors that are party to the settlement according to an agreed-upon distribution. The full amount of the claim made by the lone judgment creditor that filed a claim but did not join the settlement will be retained by the settling Judgment Creditors pending the resolution of the non-settling creditor’s claims.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, the Joint Terrorism Task Force, and the Police Department of the City of New York. He also thanked the Counterterrorism Section of the Department of Justice National Security Division, the Office of Foreign Assets Control and the Manhattan District Attorney’s Office for their initiation and assistance in this case.
Assistant United States Attorneys Sharon Cohen Levin, Michael D. Lockard, Martin S. Bell, and Carolina A. Fornos are in charge of the civil forfeiture action.
In re 650 Fifth Avenue and Related Properties (Alavi-Assa) Settlement Stipulation
In re 650 Fifth Avenue and Related Properties (Alavi - Assa) Stipulation ExhibitsManhattan U.S. Attorney Announces Extradition of Former Member of Polish Armed Forces Charged with Narcotics ConspiraciesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, the Administrator of the United States Drug Enforcement Administration (“DEA”), today announced that SLAWOMIR SOBORSKI was extradited from Estonia where he had been arrested for conspiracy to import cocaine into the United States and conspiracy to distribute cocaine on board an aircraft. SOBORSKI, a Polish citizen, will make his first appearance today in Manhattan federal court before U.S. Magistrate Judge Henry B. Pitman. SOBORSKI’s co-defendants, Joseph Manuel Hunter, Timothy Vamvakias, and Dennis Gogel, were previously arrested in Thailand (Hunter) and Liberia (Vamvakias and Gogel) and brought to the United States in September 2013. Co-defendant Michael Filter was previously arrested in Estonia in September 2013 and is pending extradition to the United States.
Manhattan U.S. Attorney Preet Bharara said: “With the arrival of Slawomir Soborski in the United States, one more of the alleged international band of narcotics traffickers and mercenary hitmen, allegedly eager and prepared to kill for cash, will be forced to face these bone-chilling charges in a U.S. court.”
DEA Administrator Michele M. Leonhart said: “It is especially despicable when someone like Soborski, who was trained by his nation to protect his countrymen from harm, uses that very training as a mercenary for hire by criminals whose alleged drug trafficking activities harm individuals, families and communities, both in the United States and around the world. Soborski’s alleged drug trafficking crimes deserve to face the close scrutiny of trial and judgment in the United States’ criminal justice system. The DEA takes pride in having helped thwart his deadly business, secure his arrest and expedite his prosecution.”
According to the Superseding Indictment:
All five defendants have previously served in the armed forces of their respective nations. SOBORSKI served in the Polish armed forces until 2011, and was trained as a sniper. Hunter served as a sniper instructor and a senior drill sergeant, training other soldiers in marksmanship and tactics. Since leaving the U.S. Army in 2004, Hunter has acted as a “contract killer” and successfully arranged for the murder of a number of people.
During meetings in Asia, Africa, and the Caribbean, beginning in January 2013 and continuing through late September 2013, Hunter communicated with three confidential sources (the “CSs”) working with the DEA, who purported to be Colombian narcotics traffickers. Hunter agreed to serve as the head of security for the CSs’ purported narcotics trafficking organization, and assembled a “security team” consisting of Vamvakias, Gogel, Filter, and SOBORSKI. Hunter also told the CSs that he had previously been involved in contract killings – referred to as “bonus jobs” – and that some team members wanted to do as much “bonus work” as possible.
Hunter and his co-defendants, including SOBORSKI, thereafter agreed, in meetings and communications with the CSs, to provide security and surveillance services to the narcotics trafficking organization. Communications between the defendants and the CSs occurred by telephone, over e-mail, and in a series of surreptitiously audio-recorded and videotaped meetings over an approximately nine-month period.
Hunter and his four co-defendants provided a variety of services to the CSs’ purported narcotics organization. In late March 2013, in Thailand, at Hunter’s direction, SOBORSKI, Gogel, and Filter surveilled a vessel on behalf of the CSs’ purported narcotics trafficking organization. In April 2013, in Mauritius, at the direction of the CSs, SOBORSKI, Gogel, and Filter provided security for a meeting at which the participants discussed the distribution of illegal narcotics to the United States and in late June 2013, in the Bahamas, SOBORSKI, Vamvakias, Gogel, and Filter conducted surveillance of a purported U.S.-registered aircraft at the direction of the third CS (“CS-3”), who posed as a member of the CSs’ narcotics trafficking organization. CS-3 informed the defendants that the aircraft was to be loaded with 300 kilograms of cocaine to be shipped to New York.
With respect to the murder-for-hire scheme, in mid-May 2013, at a meeting with the CSs in Thailand, Hunter, SOBORSKI, Vamvakias, and Gogel were told that a “bonus job” – that is, a contract killing – was in the offing, due to a leak within the CSs’ narcotics trafficking organization. In late May 2013, in e-mail communications, Hunter confirmed that his team would be willing to murder both a U.S. law enforcement agent and a source (a boat captain) who was providing information to U.S. law enforcement authorities. Hunter confirmed by e-mail that his team would kill both the DEA agent and the informant who was providing information to law enforcement about the CSs’ narcotics trafficking organization. At a meeting in late June 2013, in the Bahamas, CS-3 explained to Vamvakias and Gogel that “the job is to kill a U.S. DEA agent and a source with the DEA,” who would be located in Liberia. Vamvakias and Gogel discussed the weapons that could be used and masks to be worn for the murders, and Vamvakias stated that it would be better to “hit the agent first” and then “the snitch.” In early July 2013, Hunter sent via e-mail a list of the items needed for the murders, including “[t]wo Submachine Guns with silencers . . .[t]wo .22 pistols with Silencers.”
In late September 2013, Gogel and Vamvakias arrived in Liberia to commit the planned murders-for-hire, where they were ultimately arrested. On the same day, SOBORSKI was arrested in Estonia, with Filter, in coordination with Estonian authorities, and remained in the custody of Estonian authorities until his extradition today to the United States.
SOBORSKI, 42, is charged with one count of conspiracy to import cocaine into the United States, and one count of conspiracy to distribute cocaine on board an aircraft. Each count carries a maximum penalty of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. The case is assigned to U.S. District Judge Laura Taylor Swain. Trial has been set for October 6, 2014.
The charges, arrests, and transfers of the defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division; DEA’s Bangkok, Ghana, Pretoria, Bucharest, Manila, Nassau and Copenhagen Offices; the Royal Thai Police Narcotics Suppression Bureau and Crime Suppression Division; Royal Thai Immigration; the Royal Thai Attorney General's Office; Republic of Liberia’s National Security Agency; the Republic of Liberia’s Attorney General's Office; the Estonian Police and Border Guard Board; the Estonian National Criminal Police, Investigative Bureau; the Estonian State Prosecutor’s Office; the Royal Bahamas Police Force and Drug Enforcement Unit; the Romanian National Police; Interpol; and the U.S. Department of Justice Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael Lockard, Aimee Hector, and Anna Skotko are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Joseph Hunter, et al S7 Indictment
Lucas Jordan Conerly Sentenced to Ten Years in Prison for Using Internet to Entice A Child for Illegal Sexual PurposesRead the Press Release
GREENEVILLE, Tenn. – On Apr. 17, 2014, Lucas Jordan Conerly, 31, of Blountville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 10 years in prison. Conerly pleaded guilty in December 2013 to a federal indictment charging him with using a means of interstate commerce to entice a child for illegal sexual activity. Upon his release from prison, Conerly will be subject to a life term of supervised release with special conditions.
When the family of a 13-year-old child reported to local law enforcement that Conerly had solicited meetings with their child, the Knoxville Police Department Internet Crimes Against Children Unit (ICAC) and Federal Bureau of Investigation joined forces to assume the victim’s online identity and communicate with him. Conerly arranged to meet the victim at a business in Johnson City and promised the victim gifts if he met with him. In January 2013, Conerly was arrested when he appeared at the scheduled location for the purpose of engaging in illegal sexual activity. He maintained an online relationship with the victim for nearly four months and later admitted he selected the victim from the child’s social media photograph.
William C. Killian, U.S. Attorney for the Eastern District of Tennessee, praised the cooperative efforts of the investigative agencies in this case. “Through outstanding investigative work, the Federal Bureau of Investigation, Knoxville Police Department ICAC and the Johnson City Police Department disrupted Conerly’s plan to prey on a child. Those who commit these acts deserve to spend many years in prison and be supervised for the rest of their lives to ensure other children are not harmed,” stated Killian.
The indictment and subsequent conviction of Conerly was the result of an investigation conducted by the Federal Bureau of Investigation, Knoxville Police Department ICAC, and Johnson City Police Department. Assistant U.S. Attorney Helen Smith represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Local VA Nurse Indicted on Healthcare Fraud ChargesRead the Press Release
St. Louis, MO – RICHARD GOLDMAN, of Chesterfield, Missouri, was indicted on charges of health care fraud and aggravated identity theft. According to the indictment, Goldman devised and executed a fraud scheme by both dispensing pain medicine without a doctor’s prescription for his own use or by diverting pain medicine prescribed for patients over the last three years. Goldman worked as a nurse at the John Cochran Medical Center in St. Louis, which is a facility of the United States Department of Veterans Affairs.
Goldman was indicted by a federal grand jury late Wednesday on one felony count of health care fraud and two felony counts of aggravated identity theft for using patients’ names and information without authority in furtherance of the fraud.
The health care fraud charge carries a maximum term of imprisonment of twenty years and a fine of $250,000 or both. The aggravated identity theft charges are punishable by two years, which must be imposed consecutively to any term of imprisonment imposed for the health care fraud. Also, restitution to the veterans’ health care plan is mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the VA Police and the U.S. Department of Veterans Affairs-Office of the Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Lima Man Sentenced to 22 Years in Prison for Coercion of MinorsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Addison R. Richardson, 24, of Lima, Ohio was sentenced in U.S. District Court to serve 264 months in prison for enticing minors to engage in illegal sexual activity.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Zach Scott and members of the Franklin County Internet Crimes Against Children Task Force (ICAC), and Lima Police Chief Kevin Martin announced the sentence handed down today by U.S. District Judge Edmund A. Sargus Jr.
Richardson pleaded guilty on January 30, 2014 to one count of coercion and enticement of a minor to engage in illegal sexual activity, and to one count of attempted coercion and enticement of a minor to engage in illegal sexual activity. During the plea hearing, Richardson admitted to using the internet and a cellular phone to engage in sexual conversations with a 14-year-old boy who resided in northern Ohio, and that he travelled to a residence in northern Ohio where he engaged in sexual activity with the boy. During the conversations with the boy, Richardson asked the boy to send nude photographs of himself and the boy complied.
Richardson also admitted that he had communicated via e-mail and text message with an undercover officer posing as the father of 14 and 9-year-old boys and that during those communications, he had indicated his desire to engage in various illegal sexual acts with the minor children, and that he had travelled to Columbus, Ohio for the purpose of engaging in those sex acts with the children. ICAC officers arrested Richardson when he arrived in Columbus for the meeting on February 11, 2013.
“The government believes that the sentence in this case will deter other potential defendants by sending a clear message: Individuals who engage in this criminal conduct in the Southern District of Ohio will face the severe and lengthy prison sentences mandated by Congress and anticipated by the sentencing guidelines,” Assistant U.S. Attorney Heather Hill told the court.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by ICAC task force officers, FBI Special Agents with the Lima resident agency, and Lima Police officers, as well as Assistant U.S. Attorneys Heather Hill with the Southern District of Ohio and Alissa Sterling in the Northern District of Ohio, who prosecuted the case.
# # #Lafayette, New Iberia Men Plead Guilty to Roles in Vehicle Insurance Fraud SchemeRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that Wardell Lockett, 27, of Lafayette; Aleric Johnson, 50, of New Iberia, La.; and Buddy Estelle, 53, also of New Iberia, pleaded guilty before U.S. District Judge Richard T. Haik to participating in staged vehicle accidents in order to defraud insurance companies. Lockett pleaded Wednesday. Johnson and Estelle pleaded today.
According to evidence presented at the guilty pleas, Lockett, Johnson, and Estelle each admitted to different roles in at least one staged vehicle accident from 2003 until March 10, 2010. The co-conspirators drove cars, served as passengers or independent witnesses, or participated in some other way. Lockett admitted to being an independent witness and Johnson admitted to being a passenger. Estelle admitted to providing his car to be used in the staged accidents. As a result, the defendants made false claims and statements to law enforcement and insurance companies in order to fraudulently secure insurance payments.
They face up to five years in prison, three years of supervised release, a $250,000 fine, and restitution for conspiracy to commit insurance fraud. Sentencing dates were not set.
Three other defendants have pleaded guilty to roles in the scheme. Warren Lockett pleaded guilty to conspiracy to commit insurance fraud on October 29, 2013 and was sentenced on April 2, 2014 to time served and three years of supervised release. He was also ordered to pay restitution of $5,546. Oliver Lockett pleaded guilty on July 24, 2013 to the conspiracy charge as well, and Nicky Jones also pleaded guilty on February 4, 2014 to the same charge.
The Louisiana State Police Insurance Fraud and Auto Theft Unit conducted the investigation. Assistant U.S. Attorney James T. McManus is prosecuting the case.
Lafayette Man Sentenced for Filing False Income Tax ReturnsRead the Press Release
Hammond, Indiana - United States Attorney David Capp announced that Steven Borchert was sentenced to 51 months of imprisonment and 1 year of supervised release after being found guilty of filing nine false income tax returns for the years 2001 – 2009.
Borchert , age 53, of rural Warren County, Indiana, operated a carpet cleaning business in West Lafayette.Borchert’s business generated over $1.8 million in gross revenue during the years in question which should have been reported on his tax returns.Borchert, however, maintained that only income received directly from the federal government was taxable and that his private income did not constitute reportable income.Borchert filed bogus tax returns and reported “zero income.”Borchert’s arguments were categorically rejected by the district court and the jury.
Borchert’s assertions were based, in part, on the website LostHorizons, and a book called “Cracking the Code” written by Peter Hendrickson. Both the website and book encouraged people to file “zero income” tax returns because the Internal Revenue Code only applied to a very small group of people.Some of the theories included that wages and business activity are not income under the Code.The website and book fail to mention that Hendrickson has been twice convicted for federal tax offenses. Hendrickson’s most recent conviction was for filing “zero income” tax returns, the same conduct for which Borchert was convicted. For more information, please go to http://www.justice.gov/opa/pr/2013/June/13-tax-657.html ; US v. Hendrickson, 664 F. Supp. 2d 793 (E.D. MI 2009), and 2103 WL 1759170 (E.D. MI 2013).
United States Attorney Capp stated, “The Borchert conviction should serve as fair warning to any other persons who subscribe to this “zero income” argument.The United States Attorney’s Office, in conjunction with the Internal Revenue Service, will continue to vigorously investigate and prosecute those who file these bogus tax returns.”
This case was the result of an investigation by the Internal Revenue Service and was prosecuted by Assistant United States Attorney Gary Bell.