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Thursday 17 April 2014
Kountze Man Pleads Guilty in Fraud CaseRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 53-year-old Kountze, Texas man has pleaded guilty in connection with his role in theft of government property, announced U.S. Attorney John M. Bales today.
Tony Lynn Thornton, Sr. pleaded guilty to an Information charging him with theft of government property of a value of less than $1000 today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, in August 2007, Thornton was the executive director and also served as a member of the board of directors of the Hardin County Disaster Recovery Alliance (HCDRA), a non-profit organization chartered by the State of Texas. HCDRA’s main function and purpose was to operate exclusively for charitable, educational, and faith-based purposes, including but not limited to improvement of the condition of victims of Hurricane Rita, giving priority to the elderly, the disabled, the poor and the underprivileged. Thornton controlled and operated the HCDRA residential repair and renovation program. As part of his duties, Thornton selected contractors that were used to repair hurricane damaged homes in Hardin, Jefferson, and Orange Counties. Thornton was to secure the payment for the contractors after each repair job was finished, and inspect and verity that the work was completed. Thornton maintained control over the HCDRA checking account, often writing and signing checks to pay HCDRA vendors and contractors. On or about May 5, 2007, Thornton’s wife incurred a charge on her personal Citi Bank Advantage Credit card in the amount of $627.83. On May 15, 2007, Thornton wrote a check made out to “City Master Carpenters” on the HCDRA checking account. He then signed the check on behalf of HCDRA. The check was then sent, along with a copy of Thornton’s wife’s credit card statement to Citi Bank where the HCDRA check was processed and her account credited in the amount of the check. Thornton knew that the charge was not made for the benefit of HCDRA, and he intended to convert the funds for his own use or that of another to pay off the outstanding credit card debt, without the authority of the HCDRA.
Thornton faces up to one year in federal prison, a fine not to exceed $100,000.00 and restitution. A date for sentencing has not yet been set.
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The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Joseph Batte.Kewa Pueblo Man Sentenced to Twelve Years in Federal Prison for Second Degree Murder ConvictionRead the Press Release
ALBUQUERQUE – Dennis J. Lovato, 29, a member and resident of Kewa Pueblo, was sentenced to 12 years in federal prison followed by five years of supervised release for his second degree murder conviction. Lovato also was ordered to pay $1600.00 in restitution.
Lovato was arrested on April 20, 2011, on a criminal complaint charging him with beating another Kewa Pueblo man to death outside the victim’s residence on April 15, 2011. He subsequently was indicted and charged with second degree murder. Lovato has been in federal custody since his arrest.
On Oct. 24, 2013, Lovato entered a guilty plea to the indictment and admitted killing the victim on April 15, 2011, by beating him to death with his hands and feet. Lovato admitted that he acted with malice aforethought as he beat the victim to death. According to court filings, a preliminary autopsy report indicated that the victim died as a result of multiple blunt force trauma.
This case was investigated by the Santa Fe office of the FBI and the Southern Pueblos Agency of the BIA’s Office of Justice Programs and was prosecuted by Assistant U.S. Attorneys Mark T. Baker and Holland S. Kastrin.Justice Department Settles Immigration-Related Discrimination Claim Against Potter ConcreteRead the Press Release
The Justice Department reached an agreement today with Potter Concrete, a company based in Dallas, resolving claims that the company engaged in a pattern or practice of document abuse in violation of the Immigration and Nationality Act (INA).
The department’s investigation, which was initiated based on a referral from U.S. Citizenship and Immigration Services (USCIS), concluded that Potter Concrete subjected non-U.S. citizen new hires to unlawful demands for specific documentation issued by the U.S. Department of Homeland Security in order to verify their employment eligibility, while U.S. citizens were permitted to present their choice of documentation. The investigation also revealed that Potter Concrete selectively utilized E-Verify to confirm the employment eligibility of individuals they knew or believed to be non-U.S. citizens or foreign born. The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the hiring and employment eligibility verification process based on their citizenship status or national origin.
Under the settlement agreement, Potter Concrete will pay $115,000 in civil penalties to the United States; undergo training on the anti-discrimination provision of the INA; revise its employment eligibility verification policies; and be subject to monitoring of its employment eligibility verification practices for one year.
“Employers cannot create discriminatory hurdles for work-authorized non-U.S. citizens or naturalized citizens in the employment eligibility verification process, which includes the E-Verify program,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Department of Justice is committed to protecting U.S. citizens and all work-authorized immigrants from document abuse.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee, document abuse and retaliation or intimidation . This matter was handled by OSC Trial Attorney Ronald Lee and OSC Equal Opportunity Specialist Alexandra A. Vince. For more information about protections against employment discrimination under immigration laws or how to sign up for a free webinar, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired or visit the OSC website at www.justice.gov/crt/about/osc .
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship status, immigration status or national origin or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral should contact the worker hotline above for assistance.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Strong in Great Falls on April 4, 2014 and entering pleas of Not Guilty were:
- MELINDA MONDRAGON-PATALEON, a 41-year-old resident of Las Vegas, Nevada, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and use of a communication facility to commit a drug felony. If convicted of the most serious charge contained in the indictment, MONDRAGON-PATALEON faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the United States Postal Service. PACER Case Reference: 13-71
Appearing before U.S. Magistrate Ostby in Billings on April 8, 2014 and entering pleas of Not Guilty were:
- KEVIN R. CRISWELL, a 31-year-old resident of Libby, appeared on charges of conspiracy to acquire a controlled substance by forgery, fraud, deception or subterfuge. If convicted of the most serious charge in the indictment, CRISWELL faces 4 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference: 14-36
- BRANDON JAYJOSEPH WHITE, a 24-year-old resident of Billings, appeared on charges of conspiracy to possess a controlled substance with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, WHITE faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The prosecution is part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota. The investigation was conducted by the Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco and Firearms and the Montana Division of Criminal Investigation. PACER Case Reference: 13-91
Appearing before U.S. Magistrate Strong in Great Falls on April 8, 2014 and entering pleas of Not Guilty were:
- DALE YURKOVIC, a 61-year-old resident from Las Vegas, Nevada, appeared on charges of wire fraud and money laundering. If convicted of the most serious charge contained in the indictment, YURKOVIC faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service. PACER Case Reference: 14-13
Appearing before U.S. Magistrate Strong in Great Falls on April 9, 2014 and entering pleas of Not Guilty were:
- SCOBEY BAKER, a 37 year-old-resident of Wolf Point, appeared on charges of aggravated sexual abuse and kidnaping. If convicted of the most serious charge in the indictment, BAKER faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 14-27
- DAVID V. CHASER, a 39-year-old resident of Wolf Point, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the most serious charge in the indictment, CHASER faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-28
Appearing before U.S. Magistrate Lynch in Missoula on April 10, 2014 and entering pleas of Not Guilty were:
- DAVID ERIC JACOBS, a 34-year-old resident of Missoula, appeared on charges of felon in possession and counterfeiting/forgery. If convicted of the most serious charge contained in the indictment, JACOBS faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service and the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 13-17
Appearing before U.S. Magistrate Ostby in Billings on April 11, 2014 and entering pleas of Not Guilty were:
- EUGENIA ANN ROWLAND, a 41-year-old resident of Rapid City, South Dakota, appeared on charges of second degree murder. If convicted of the charge in the indictment, ROWLAND faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. PACER Case Reference: 14-27
Appearing before U.S. Magistrate Strong in Great Falls on April 14, 2014 and entering pleas of Not Guilty were:
- MARK JOHN WEATHERWAX, a 44-year-old resident of Browning, appeared on charges of aggravated sexual abuse, attempted aggravated sexual abuse and assault. If convicted of the most serious charges in the indictment, WEATHERWAX faces life imprisonment $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-03
Appearing before U.S. Magistrate Ostby in Billings on April 16, 2014 and entering pleas of Not Guilty were:
- DAVID ALLEN DARSOW, a 47-year-old resident of Billings, appeared on charges of unlawful possession of a machine gun. If convicted of the charge in the indictment, DARSOW faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-30
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Keri
Information on Death Penalty Eligibility for Homicide Charged in 27 Defendant Indictment CaseRead the Press Release
On April 16 & 17, 2014, some local media inaccurately reported on one of the penalties associated with a grand jury indictment. This corrects that media misstatement.
On April 1, 2014, a federal grand jury returned a 25-count indictment against 27 defendants on drug trafficking and money laundering offenses. Count Five of the indictment alleges that co-defendants Kevin R. Arms, John Bailey and Phillip Moffet used a firearm in furtherance of a drug trafficking offense. That count also alleges that their use of the firearm caused the death of another person. This alleged offense is death penalty eligible. Information about how the U.S. Department of Justice reviews death penalty eligible cases prior to making a determination on whether the death penalty will actually be sought by federal prosecutors, is availalble at the following links:
http://www.justice.gov/usao/eousa/foia_reading_room/usam/title9/10mcrm.htm
http://www.justice.gov/criminal/about/ccs.html
To see the original press release: http://www.justice.gov/usao/wie/news/2014/pr20140416_Twenty-Seven_Indicted.html
Assitant Chief of Police Kurt Liebold, MPD; James Santelle, USA, and Jim Bohn, DEA
Indictments Returned in Hammond Federal CourtRead the Press Release
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on April 17, 2014:
Jeremiah Ellis, 28, and Ashley Patterson, 24, both of East Chicago, Indiana were charged with the bank robberies of the First Merchants Bank in East Chicago and use of a firearm during and in relation to a crime of violence.These charges were filed as the result of an investigation by the Federal Bureau of Investigation and the Chicago Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
DeCarlos Frazier, 30, of Chicago, Illinois, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Akeem Dillon, 28, of Chicago, Illinois, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chicago Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
William D. Cantrell, 59, of Valparaiso, Indiana, was charged with internet stalking.This charge was filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Susan Collins.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Hotel Magnate Sant Singh Chatwal Pleads Guilty to Scheme to Evade Federal Election Campaign Contribution Limits, and to Witness TamperingRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Sant Singh Chatwal pleaded guilty to conspiring to violate the Federal Election Campaign Act (the “Election Act”) by making more than $180,000 in federal campaign donations to three candidates1 through straw donors who were reimbursed, and to witness tampering. When sentenced, Chatwal faces up to 25 years in prison. As part of his plea agreement with the government, Chatwal agreed to forfeit $1 million to the United States.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; David A. O’Neil, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Richard Weber, Chief, Internal Revenue Service-Criminal Investigation.
“The Election Act’s spending limits are in place to limit financial influence in federal elections and to ensure transparency as to the identity of donors. Chatwal sought to buy access to power through unlimited and illegal campaign contributions, funneling money from the shadows through straw donors. Chatwal’s scheme sought to subvert the very purpose of the Election Act,” stated United States Attorney Lynch. “Chatwal then rolled the dice to stymie the government’s investigation, thinking he could corruptly convince witnesses to his federal election crimes to stay silent. That gamble did not pay off. Today’s conviction sends a clear message that this office is committed to vigorously investigating and prosecuting individuals who are responsible for committing crimes in connection with federal campaign donations and witness tampering.”
“Chatwal admitted that he used straw donors to secretly funnel money to political campaigns so that he could gain access to the politicians, and he coerced another person to hide his crime,” said Acting Assistant Attorney General O’Neil. “Chatwal went to great lengths to undermine both election laws and our system of justice. Today’s guilty plea shows our vigilance and determination to prosecute those who damage the integrity of elections by masking the true sources of campaign contributions.”
FBI Assistant Director-in-Charge Venizelos stated, “Attempting to buy elections through illegal campaign contributions is unacceptable. It is also illegal. Americans rightfully expect that elections will be free and fair. The FBI will continue investigating every case of abuse, wherever we find it.”
“Mr. Chatwal admitted his actions were designed to circumvent the Election Act,” said Chief Weber, IRS Criminal Investigation. “IRS-CI’s ability to adapt our financial investigative skills to cases where they are needed uniquely equips our agents to defend and uphold America’s trust in the fairness of the electoral process.”
The Election Act limits the amount and source of money that can be contributed to a federal candidate or to an individual candidate’s political campaign committee and multi-candidate political campaign committees, commonly referred to as “political action committees” (“PACs”). For example, in 2008, the Election Act limited primary and general election campaign contributions in a calendar year to $2,300 per campaign, for a total of $4,600, from any one individual to any one candidate. In 2010, the Election Act limited primary and general election campaign contributions in a calendar year to $2,400 per campaign, for a total of $4,800, from any one individual to any one candidate. The Election Act also prohibits making a campaign contribution in the name of another person, including giving funds to a “straw donor,” or a conduit, for the purpose of having the straw donor pass the funds to a federal candidate as the straw donor’s own contribution.
According to court filings and facts presented during the plea proceeding, Chatwal operated several businesses, including restaurants, hotels, and a hotel management company. From 2007 to 2011, Chatwal used his employees, business associates, and contractors who performed work on his hotels (the “Chatwal Associates”), to solicit campaign contributions on Chatwal’s behalf in support of various candidates for federal office and PACs, collect these contributions, and pay reimbursements for these contributions, in violation of the Election Act.
Chatwal and the Chatwal Associates induced straw donors to make these campaign contributions, promising them that they would be reimbursed. Chatwal orchestrated a scheme to make approximately $188,000 in campaign contributions to three candidates for federal office via straw donors, and he often arranged for the straw donors to be reimbursed through the Chatwal Associates, ultimately paying for the reimbursed contributions with funds belonging to Chatwal or one of Chatwal’s companies.
The evidence against Chatwal includes an October 2010 recorded conversation between Chatwal and a business associate who became an informant, in which Chatwal underscored his view as to the importance of political campaign contributions, stating that without campaign contributions, “nobody will even talk to you. . . . That’s the only way to buy them, get into the system. . . . What, what else is there? That’s the only thing.”
Chatwal also sought to obstruct the grand jury investigation into his Election Act scheme by tampering with a witness, a person whose business performed construction work for Chatwal and Chatwal’s companies, and who had recruited straw donors at Chatwal’s direction. In a June 2012 recorded conversation, Chatwal told that individual that if FBI and IRS agents approached him or his family, they should not speak with the agents and should instead refer them to a lawyer Chatwal would provide. During this conversation, the individual said that he would not tell agents that Chatwal gave him money to reimburse straw donors. Chatwal replied, “Never, never.”
A few days later, in a July 2012 recorded conversation, Chatwal directed the same individual to lie to agents about the Election Act scheme. Chatwal said he would pay for the individual’s legal fees in connection with the investigation, and offered to conceal the money within a payment for work the individual’s company had performed for Chatwal. During the conversation, they discussed that investigators were seeking copies of campaign checks in the individual’s possession, and they then discussed that it was helpful that some of the straw donors had been reimbursed with cash. Chatwal added, “cash has no proof.”
The guilty plea proceeding took place before United States District Judge I. Leo Glasser.
The government’s case is being prosecuted by Assistant United States Attorneys Martin Coffey, Carolyn Pokorny, Robert Capers and Brian Morris, and Trial Attorney Marquest Meeks of Public Integrity Section of the Department of Justice.
The Defendant:
SANT SINGH CHATWAL
Age: 70
Residence: New York, NY
_____________________________________________________________________________
1 There is no allegation that the candidates participated in, or were aware of, Chatwal’s scheme.
Hotel Magnate Pleads Guilty to Federal Election Campaign Spending Limits Evasion Scheme and Witness TamperingRead the Press Release
Sant Singh Chatwal, 70, of New York – a businessman operating several restaurants, hotels and a hotel management company – pleaded guilty in the Eastern District of New York to conspiring to violate the Federal Election Campaign Act (the “Election Act”) by making more than $180,000 in federal campaign donations to three candidates through straw donors who were reimbursed and to witness tampering. There is no allegation that the candidates participated in, or were aware of, Chatwal’s scheme.
Acting Assistant Attorney General David A. O’Neil of the Criminal Division of the U.S. Department of Justice, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office and Chief Richard Weber of the Internal Revenue Service–Criminal Investigation made the announcement.
The guilty plea proceeding took place before United States District Judge I. Leo Glasser of the Eastern District of New York. As part of his plea agreement with the government, Chatwal agreed to forfeit $1 million to the United States.
“Chatwal admitted that he used straw donors to secretly funnel money to political campaigns so that he could gain access to the politicians, and he coerced another person to hide his crime,” said Acting Assistant Attorney General O’Neil. “Chatwal went to great lengths to undermine both election laws and our system of justice. Today’s guilty plea shows our vigilance and determination to prosecute those who damage the integrity of elections by masking the true sources of campaign contributions.”
“The Election Act’s spending limits are in place to limit financial influence in federal elections and to ensure transparency as to the identity of donors,” said U.S. Attorney Lynch. “Chatwal’s scheme sought to subvert the very purpose of the Election Act. Chatwal then rolled the dice to stymie the government’s investigation, thinking he could corruptly convince witnesses to his federal election crimes to stay silent. That gamble did not pay off. Today’s conviction sends a clear message that this office is committed to vigorously investigating and prosecuting individuals who are responsible for committing crimes in connection with federal campaign donations and witness tampering.”
“Attempting to buy elections through illegal campaign contributions is unacceptable. It is also illegal,” said FBI Assistant Director in Charge Venizelos. “Americans rightfully expect that elections will be free and fair. The FBI will continue investigating every case of abuse, wherever we find it.”
“Mr. Chatwal admitted his actions were designed to circumvent the Election Act,” said IRS-CI Chief Weber. “IRS-CI's ability to adapt our financial investigative skills to cases where they are needed uniquely equips our agents to defend and uphold America's trust in the fairness of the electoral process.”
The Election Act limits the amount and source of money that can be contributed to a federal candidate or to an individual candidate’s political campaign committee and multi-candidate political campaign committees, commonly referred to as “political action committees” (PACs). For example, in 2008, the Election Act limited primary and general election campaign contributions in a calendar year to $2,300 per campaign, for a total of $4,600, from any one individual to any one candidate. In 2010, the Election Act limited primary and general election campaign contributions in a calendar year to $2,400 per campaign, for a total of $4,800, from any one individual to any one candidate. The Election Act also prohibits making a campaign contribution in the name of another person, including giving funds to a “straw donor,” or a conduit, for the purpose of having the straw donor pass the funds to a federal candidate as the straw donor’s own contribution.
According to court filings and facts presented during the plea proceeding, Chatwal operated several businesses, including restaurants, hotels, and a hotel management company. From 2007 to 2011, Chatwal used his employees, business associates, and contractors who performed work on his hotels (the “Chatwal Associates”) to solicit campaign contributions on Chatwal’s behalf in support of various candidates for federal office and PACs, collect these contributions, and pay reimbursements for these contributions.
Further according to court filings, Chatwal and the Chatwal Associates induced straw donors to make these campaign contributions, promising them that they would be reimbursed. Chatwal orchestrated a scheme to make approximately $188,000 in campaign contributions to three candidates for federal office via straw donors, and he often arranged for the straw donors to be reimbursed through the Chatwal Associates, ultimately paying for the reimbursed contributions with funds belonging to Chatwal or one of Chatwal’s companies.
The evidence against Chatwal includes an October 2010 recorded conversation between Chatwal and a business associate who became an informant, in which Chatwal underscored his view as to the importance of political campaign contributions, stating that without campaign contributions, “nobody will even talk to you…That’s the only way to buy them, get into the system… What, what else is there? That’s the only thing.”
Also according to court filings, Chatwal sought to obstruct the grand jury investigation into his Election Act scheme by tampering with a witness, a person whose business performed construction work for Chatwal and Chatwal’s companies and who had recruited straw donors at Chatwal’s direction. In a June 2012 recorded conversation, Chatwal told the individual that if FBI and IRS agents approached him or his family, they should not speak with the agents and should instead refer them to a lawyer Chatwal would provide. During this conversation, the individual said that he would not tell agents that Chatwal gave him money to reimburse straw donors. Chatwal replied, “Never, never.”
A few days later, in a July 2012 recorded conversation, Chatwal directed the same individual to lie to agents about the Election Act scheme. Chatwal said he would pay for the individual’s legal fees in connection with the investigation and offered to conceal the money within a payment for work the individual’s company had performed for Chatwal. During the conversation, they discussed that investigators were seeking copies of campaign checks in the individual’s possession, and they then discussed that it was helpful that some of the straw donors had been reimbursed with cash. Chatwal added, “Cash has no proof.”
The case was investigated by the FBI’s New York Field Office and the IRS-CI. The case is being prosecuted by Trial Attorney Marquest Meeks of Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Martin Coffey, Carolyn Pokorny, Robert Capers and Brian Morris of the Eastern District of New York.Health Care Providers to Pay $1 Million for False Claims, Improper ReferralsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA -- Two Ohio Valley health care providers will pay a million dollar penalty after violating Federal law by submitting false claims to Medicare.
United States Attorney William J. Ihlenfeld, II, announced that Devender Batra, M.D., and Belmont Cardiology, Inc. will pay $1 million to the United States after causing East Ohio Regional Hospital and Ohio Valley Medical Center to submit fraudulent claims to Medicare from January 2009 to August of 2010, in violation of the Federal False Claims Act. The settlement ends an investigation into improper compensation arrangements between Dr. Batra, East Ohio Regional Hospital and Ohio Valley Medical Center. The arrangements with Dr. Batra and Belmont Cardiology led the hospitals to submit false claims for prohibited referrals for various health services in violation of Federal law.
AThese types of prohibited referrals are a significant problem and lead to increased health care costs for everyone,” said U.S. Attorney Ihlenfeld. “Medicare expects that a physician’s referral of a patient to a hospital will be free from improper influences, and when it’s not we will act to hold the wrongdoers accountable.”
The investigation arose after the U.S. Attorney’s Office resolved claims against East Ohio Regional Hospital and Ohio Valley Medical Center for entering into improper compensation arrangements with Dr. Batra and others.
AReferrals of patients that are motivated, to any degree, by prohibited compensation arrangements may lead to costly and unnecessary medical care. For this reason we encourage anyone who has knowledge of such arrangements between a medical facility and a physician to report it,@ said Ihlenfeld.
“Sound medical decision making cannot be influenced by financial gain”, said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the U.S. Department of Health and Human Services in Philadelphia. “We are pleased that these allegations are resolved and will continue to work with the Department of Justice to root out illegal, wasteful business arrangements.”
The False Claims Act is a federal law that allows the government to sue health care providers who submit false or fraudulent claims to federal health care programs, such as Medicare, or cause others to do so. False claims submitted by medical providers cost federal health care programs billions of dollars each year.
Dr. Batra is a physician who practices cardiology in Belmont County, Ohio and the surrounding area. Dr. Batra is the President of Belmont Cardiology Inc., a medical corporation.This matter was handled by Assistant United States Attorney Alan G. McGonigal, in coordination with the United States Department of Health and Human Services, Office of Inspector General.
Harrisonburg Man Sentenced for Providing Fatal HeroinRead the Press Release
HARRISONBURG, VIRGINIA – A Harrisonburg man, who was found guilty by a jury in May 2013, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg on heroin distribution charges.
Jean Paul Alvarado, 31, of Harrisonburg, Va., was indicted in July 2012 one a single charge of distributing heroin and that serious bodily injury and death resulted from the use of such substance. Following a jury trial earlier this year, Alvarado was found guilty of that charge. Today in District Court, he was sentenced to 240 months in federal prison.
“The abuse of heroin is a public health crisis, most emphatically illustrated by the staggering increase in overdose deaths in our district,” United States Attorney Timothy J. Heaphy said today. “We are focusing our investigative resources to meet this threat, as evidenced by cases like this one. We are also working with schools, non-profit organizations and other community groups on prevention, education and treatment solutions. A comprehensive approach is essential if we are going to successfully repel this large and growing threat.”
During trial, the United States introduced evidence that one of Alvarado’s heroin customers overdosed and died after using heroin Alvarado had sold to him on March 29, 2011. After Alvarado was arrested, he told police that he had sold heroin to the customer who died. The jury found Alvarado guilty of distributing heroin that resulted in death.
In its ongoing battle against heroin abuse, the United States Attorney’s Office, along with the Virginia State Police and the Northwest Virginia Regional Drug and Gang Task Force, is cosponsoring a heroin summit on Friday, April 18, 2014 at Shenandoah University. This summit will bring together community leaders, law enforcement, school officials, treatment service providers, and others, to work toward comprehensive solutions to the escalating heroin problem in the region.
The investigation of the case was conducted by the Drug Enforcement Administration, the RUSH Drug Task Force and the Harrisonburg Police Department. Assistant United States Attorney Grayson Hoffman prosecuted the case for the United States.
Harrisonburg Man Pleads Guilty to Fraud ChargesRead the Press Release
HARRISONBURG, VIRGINIA – A Harrisonburg man, who admitted today to bilking nearly 20 investors out of more than $1 million dollars through a fraudulent investment scheme, pled guilty yesterday in the United States District Court for the Western District of Virginia in Harrisonburg to related fraud charges.
Paul Souder, 60, of Harrisonburg, Va., waived his right to be indicted and pled guilty this morning to one count of mail fraud and one count of wire fraud.
“Mr. Souder abused the trust of his clients when he stole their hard-earned assets,” United States Attorney Timothy J. Heaphy said today. “Instead of investing their money, he paid his own bills and bought new vehicles. He has now been held accountable for his despicable acts of greed. We hope that today’s conviction helps Souder’s victims heal and receive restitution.”
According to a statement of facts entered into evidence at yesterday’s hearing, between June 2007 and October 2013, Souder obtained money from at least 18 investors through the issuance of promissory notes. The defendant represented to his clients that he would invite the borrowed money online using his personal trading strategy. He promised to pay a return to these investors ranging up to 10 percent per quarter.
Souder admitted yesterday that he pooled most of the investors’ money into an account under his exclusive control and opened an online trading account operated out of his home. The defendant generated and sent quarterly statements via U.S. mail and emails to investors, informing them of the alleged status of their accounts, however, he never reported any losses to any of his investors. In all, Souder stole approximately $1.2 million from investors.
The defendant admitted yesterday in Federal Court that at no time did he generate any actual financial returns or profits for investors through online trading. The entire promissory note program was fraudulent and Souder only used approximately half of the funds he obtained from investors to trade online and incurred losses as a result of his online trading. Souder converted the remainder of the investor funds for his personal use, using the money to pay his mortgage and buy new vehicles. In addition, Souder used funds obtained from new investors to pay profit distributions to earlier investors.
In the fall of 2012, the Virginia State Corporation Commission (SCC) approached Souder and informed him that his actions violated the Virginia Securities Act and that he should cease his online trading activity immediately. However, Souder continued to trade and failed to return investors funds, as previously agreed.
The investigation of the case was conducted by the United States Postal Inspection Service and State Corporation Commission. Assistant United States Attorney C. Patrick Hogeboom III and Gauhar R. Naseem, Associate General Counsel-Financial Services, Office of General Counsel for the Virginia State Corporation Commission, will prosecute the case for the United States.
Harrisburg Man Charged with Manufacturing Counterfeit U.S. CurrencyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Abdel Jaber Obaid, age 31, of Harrisburg, was indicted yesterday and charged with Manufacturing Counterfeit Obligations of the United States.
According to U.S. Attorney Peter Smith, in at least as early as April 2012, Obaid began manufacturing counterfeit $50 and $20 bills, which were then passed at businesses throughout Dauphin County. If convicted, Obaid faces 20 years imprisonment and a fine of up to $250,000.
This case is being investigated by the United States Secret Service and the Harrisburg Bureau of Police and the Lower Paxton and Swatara Police Departments and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Greenville Man Sentenced for Child Pornography OffenseRead the Press Release
Follow @SDILNewsA Greenville man was sentenced on April 17, 2014, on one count of Attempt to Access with Intent to View Visual Depictions of Minors Engaged in Sexually Explicit Conduct, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Terry L. Adcock, 65, Greenville, Illinois, was sentenced to a term of 30 months in federal prison, to be followed by a 10 year term of supervised release, fined $3,000, and ordered to pay a $100 special assessment. Adcock also forfeited the two computers that were used in the attempt to access the illegal images. In addition, upon his release from prison, Adcock must register as a sex offender as a condition of his supervised release. Adcock had been detained since he entered his guilty plea on January 16, 2014.
Before imposing sentence, Chief Judge David R. Herndon noted that Adcock was charged with a serious offense because child pornography “is not a victimless crime.” He stated that the children contained in these images and/or videos of child pornography suffer from knowing that people are looking at their images and/or videos over and over again. He also noted that, in past victim impact statements submitted on behalf of some children depicted in child pornography currently found on the internet, some noted that, when an individual catches their eye, they have to wonder if this person is looking at him or her because that individual has seen he or she depicted in one of these images and/or videos depicting their abuse that is on the internet. He suggested that individuals who look at child pornography need to think about this. Specifically, he suggested that, maybe when someone has an inclination to look at child pornography, that individual stop and realize that they are not looking at “nothing” or “inanimate objects,” but at “people.” He stated that, maybe when an individual thinks of that child as being aware that that individual is looking at that child and how that makes that child feel, then just maybe the inclination to look at child pornography will pass.
The charges resulted from an FBI nationwide investigation that revealed IP addresses that accessed a web forum known to contain links to images and/or videos of visual depictions of minors engaged in sexually explicit conduct. The web forum listed a detailed description of the image and/or video file that a user could link to, with some of the descriptions of the images clearly indicating that the images and/or video vile involved a prepubescent minor. This investigation revealed that, between October and November, 2011, an IP address assigned to Defendant Terry Adcock tried to access the web forum on five separate occasions.
On December 18, 2012, FBI Special Federal Officers spoke with Adcock at his residence about the results of the investigation. Adcock admitted that he had been searching for and viewing images of child pornography on the internet since he bought his first computer approximately twenty years prior, and that he was interested in prepubescent girls between the ages of 10 and 12. He said that, by googling a search term commonly associated with child pornography, he would gain access to thousands of websites that contained child pornography, sometimes paying for access to certain websites. Adcock gave consent to the officers to search and seize, among other things, a Gateway desktop computer and a Dell Inspiron laptop computer. Adcock stated that he used these two computers to access and view child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Federal Bureau of Investigation=s Springfield Child Exploitation Task Force (SCETF). The case was assigned to Assistant United States Attorney Angela Scott.
Georgia Real Estate Investor Pleads Guilty to Bid Rigging and Fraud at Public Foreclosure AuctionsRead the Press Release
A Georgia real estate investor pleaded guilty today for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia, the Department of Justice announced.
Felony charges were filed on March 25, 2014, in the U.S. District Court for the Northern District of Georgia in Atlanta, against Mohamed Hanif Omar. According to court documents, from at least as early as Sept. 1, 2009, until at least March 7, 2012, Omar conspired with others not to bid against one another, and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Gwinnett County, Ga. Omar was also charged with conspiring to commit mail fraud by fraudulently acquiring title to selected Gwinnett County properties sold at public auctions. Additionally, he was charged with making and receiving payoffs and diverting money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.
“Today’s guilty plea is the fourth in the Antitrust Division’s ongoing investigation into anticompetitive conduct at public real estate foreclosure auctions in Georgia,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division remains committed to working with its law enforcement partners to investigate and prosecute local cartels that harm distressed homeowners and lenders.”The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Gwinnett County public foreclosure auctions at non-competitive prices. When real estate properties are sold at the auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, the conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“Today’s plea should further serve as an example for those who would consider exploiting the processes in place regarding public foreclosures,” said J. Britt Johnson, Special Agent in Charge of the FBI Atlanta Field Office. “The intent of the Sherman Act was to provide a level and competitive field within commerce and the FBI intends to enforce these types of violations.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine of $250,000 for individuals. The fine may be increased to twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime.
The investigation is being conducted by the Antitrust Division’s new Washington Criminal II Section and the FBI’s Atlanta Division, with the assistance of the Atlanta Field Office of the Housing and Urban Development Office of Inspector General and the U.S. Attorney’s Office for the Northern District of Georgia. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions in Georgia should contact the Antitrust Division at 404-331-7113, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, or visit www.justice.gov/atr/contact/newcase.htm.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Former New Mexico Detective Pleads Guilty to Sexually Assaulting Police Department InternRead the Press Release
Michael Garcia, a former detective with the Las Cruces Police Department (LCPD) in Las Cruces, N.M., who focused on child abuse and sex crimes investigations, pleaded guilty today in federal court to a one count information charging Garcia with violating the civil rights of an LCPD student intern when he sexually abused her while on duty.
According to court documents, as a detective, Garcia worked with students who participated in Las Cruces High School’s Excel program, through which students interned at the LCPD. On or about May 4, 2011, Garcia took the victim on a ride-along in his department-issued vehicle to visit a crime scene. Afterward, instead of driving the victim directly back to the police department so that she could retrieve her belongings and go home, Garcia drove her to a secluded location where he sexually assaulted her.
As part of the plea agreement, Garcia acknowledged that he knew that his actions were against the law and that the victim did not consent to his behavior.
“The defendant exploited his position as a sex crimes detective in a most deplorable way,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute law enforcement officers who use their authority to engage in sexual abuse. We commend the victim for having the courage to come forward, and we are thankful for law enforcement officers in this case, as well as the vast majority of others, who support and help victims of crime.”
In addition to a prison sentence, the terms of the plea agreement require Garcia to forfeit his law enforcement certification and comply with federal and state sex offender registration requirements. A sentencing hearing has not yet been set.
This case is being investigated by the Las Cruces Resident Agency of Albuquerque Division of the FBI and the LCPD and is being prosecuted by Assistant U.S. Attorneys Mark T. Baker and Holland S. Kastrin for the District of New Mexico and Trial Attorney Fara Gold of the Justice Department’s Civil Rights Division.
Former Long-Time Treasurer of Fullerton Teamsters Pleads Guilty to Embezzlement from Union and Filing False Tax ReturnRead the Press Release
SANTA ANA, California – The former treasurer of the Fullerton-based International Brotherhood of Teamsters, Graphic Communications Conference, District Council Number 2, has pleaded guilty to embezzlement from the union and filing a false tax return.
Fred W. Correll, 79, of Fullerton, who was the secretary-treasurer of the union since 1970, pleaded guilty to the two felony counts on Tuesday afternoon.
When he pleaded guilty, Correll admitted that during 2009 he embezzled $10,000 from the union for his personal use. Correll also admitted that he filed a false tax return for himself in 2009 when he failed to report that income on the 2009 tax return that he filed with the Internal Revenue Service.
Correll resigned from the union three years ago.
Correll is scheduled to be sentenced on August 4 by United States District Judge James V. Selna. At sentencing, Correll faces a statutory maximum penalty of eight years in federal prison and a fine of up to $500,000.
Correll’s son-in-law, Ryan W. Sherard, the former President of the union, is scheduled to plead guilty to filing a false Labor form on Wednesday, April 23. Sherard, 43, of Fullerton, has agreed to plead guilty to making a false statement in a financial report of a labor union, a misdemeanor offense that carries up to one year in prison. In his plea agreement, Sherard admits he failed to report money – approximately $9,600 – that he received from the union.
This case was investigated by the Department of Labor – Office of the Inspector General and IRS – Criminal Investigation.Release No. 14-046
Former Las Cruces Detective Pleads Guilty to Sexually Assaulting Police Department InternRead the Press Release
ALBUQUERQUE – Michael Garcia, a former detective with the Las Cruces Police Department (LCPD) in Las Cruces, N.M., who focused on child abuse and sex crimes investigations, pleaded guilty today in federal court to a one count information charging Garcia with violating the civil rights of an LCPD student intern when he sexually abused her while on duty.
According to court documents, as a detective, Garcia worked with students who participated in Las Cruces High School’s Excel program, through which students interned at the LCPD. On or about May 4, 2011, Garcia took the victim on a ride-along in his department-issued vehicle to visit a crime scene. Afterward, instead of driving the victim directly back to the police department so that she could retrieve her belongings and go home, Garcia drove her to a secluded location where he sexually assaulted her.
As part of the plea agreement, Garcia acknowledged that he knew that his actions were against the law and that the victim did not consent to his behavior.“The defendant exploited his position as a sex crimes detective in a most deplorable way,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute law enforcement officers who use their authority to engage in sexual abuse. We commend the victim for having the courage to come forward, and we are thankful for law enforcement officers in this case, as well as the vast majority of others, who support and help victims of crime.”
In addition to a nine-year prison sentence, the terms of the plea agreement require Garcia to forfeit his law enforcement certification and comply with federal and state sex offender registration requirements. A sentencing hearing has not yet been set.
This case was investigated by the Las Cruces Resident Agency of Albuquerque Division of the FBI and the LCPD and is being prosecuted by Assistant U.S. Attorneys Mark T. Baker and Holland S. Kastrin for the District of New Mexico and Trial Attorney Fara Gold of the Justice Department’s Civil Rights Division.
Former Hidalgo County Sheriff’s Commander Enters Guilty PleaRead the Press Release
McALLEN, Texas – Jose A. Padilla, 54, of Weslaco, has entered a plea of guilty for one count of receipt of a bribe, announced United States Attorney Kenneth Magidson. Padilla was a former deputy commander at the Hidalgo County Sheriff’s Office and served under the leadership of former sheriff Guadalupe “Lupe” Trevino.
Padilla has admitted that during 2011 and 2012, he received cash from alleged drug trafficker Tomas “El Gallo” Gonzalez. In exchange for the cash payments, Padilla performed various tasks for Gonzalez and provided information to Gonzalez related to ongoing law enforcement activities.
U.S. District Judge Randy Crane accepted Padilla’s plea today and has set sentencing for July 17, 2104. At that time, he faces a maximum of 10 years in federal prison and a potential maximum fine of $250,000, or twice the amount he received.
He was permitted to remain on bond pending that hearing.
The investigation leading to the charges was conducted by Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation and Texas Department of Public Safety, Rangers Division. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.
Former Employee Pleads Guilty to Federal Charge in $44,000 Theft from Non-Profit-Defendant Used Employer’s Credit Card for Personal Expenses-Read the Press Release
WASHINGTON - Thomas Webb, 33, of Hyattsville, Md., pled guilty today toa federal charge stemming from the theft of more than $44,000 from a non-profit organization where he worked as an administrative assistant, U.S. Attorney Ronald C. Machen Jr. announced.
Webb pled guilty in the U.S. District Court for the District of Columbia to one count of interstate transportation of stolen property. The Honorable James E. Boasberg scheduled sentencing for June 26, 2014. Under federal sentencing guidelines, Webb faces a likely range of six to 12 months of incarceration, as well as a fine of up to $20,000. Under the plea agreement, Webb must pay restitution to the non-profit. He also is subject to a forfeiture money judgment.
According to the government’s evidence, the not-for-profit organization, identified in court documents as “Company A,” provides financial assistance to underinsured patients being treated for chronic or life-threatening illnesses who are unable to afford the full cost of care. Webb began working as an administrative assistant there in or around January 2013.
Webb was responsible for processing financial transactions, including reimbursing employees for work-related expenses. In connection with these duties, the non-profit granted Webb access to its bank account and its general ledger information systems. Almost immediately after hiring him, the non-profit issued Webb a company credit card.
Beginning in February 2013, Webb began using his company-issued credit card for personal expenses, in spite of his employer’s explicit policies against such use. Between February and July of 2013, Webb generated a total amount of $44,457 in personal expenses on the credit card, including personal expenses related to travel, transportation, hotel lodgings, retail purchases, meals, food, and entertainment. Webb paid the monthly balances of his company-issued credit card directly from the non-profit’s bank account. He never made any attempt to reimburse the non-profit for any of the personal expenditures.
In announcing the plea, U.S. Attorney Machen commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Angela Lawrence; Criminal Investigator Juan Juarez, who investigated the case; Assistant U.S. Attorney Zia Faruqui, who assisted with forfeiture issues, and Assistant U.S. Attorney Richard DiZinno, who investigated and prosecuted the matter.
14-087Former Denver Woman Appears on Charges Related to Aggravated Identity TheftRead the Press Release
DENVER - Libia Hernandez-Garcia, age 60, of Miami, Florida, formerly of Denver, Colorado, appeared yesterday on charges related to aggravated identity theft and tax fraud, visa fraud and social security fraud, federal authorities announced. Hernandez-Garcia was originally indicted by a federal grand jury in Denver on May 21, 2013, which remained sealed until her arrest in Miami, Florida on February 26, 2014. A superseding indictment was filed on February 25, 2014. She made her initial appearance yesterday, April 16, 2014, before U.S. Magistrate Judge Kristen L. Mix, where she was advised of her rights and the charges pending against her. Her indicted co-conspirator, Diana Aleph Aguilar Hernandez, made her initial appearance on March 13, 2014, on one count of visa fraud.
According to the charging documents, from 2009 through 2011, Hernandez-Garcia made five false claims against the Internal Revenue Service which she knew to be false by preparing and filing federal income tax returns for several individuals where the claims for income tax refunds were fraudulent. Furthermore, for her personal 2009 through 2011 federal income tax returns, she submitted false claims for federal income tax returns totaling over $16,000.
From 2009 through 2012, Hernandez-Garcia misused the Social Security Number (SSN) of several individuals by causing the filing of individual income tax returns which falsely included the name and SSN, as a dependent, for the person identified as the filer of the tax return. By misusing the SSN in such a manner, Hernandez-Garcia further allegedly committed aggravated identity theft.
From 2008 through 2011, Hernandez-Garcia assisted in the preparation and filing with the IRS the U.S. Individual Income Tax Return of her husband for tax years 2007 through 2010 which were materially false and fraudulent. Particularly, dependents were claimed on her husband’s tax returns when in fact the dependents were not a person who could lawfully be claimed as a dependent of his.
Furthermore, on two separate occasions, one in 2008 and the second in 2011, Hernandez-Garcia made false statements under penalty of perjury in Petitions for a Nonimmigrant Worker packages. Such statements included: the beneficiary of the H-1B visa petition, Diana Aleph Aguilar Hernandez, would be employed by a local hotel operating under a national brand name as Operations Manager; Libia Hernandez was an authorized official to make such a petition on behalf of that hotel; that Libia Hernandez was authorized by that hotel to act on behalf of the company in labor certification matters; and the rate of pay for the beneficiary would be $51,000 and $35,425 a year, respectively.
Hernandez-Garcia was charged with; two counts of visa fraud, which carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000 per count; five counts of false claims, which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000, per count; thirteen counts of misuse of a SSN, which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000, per count; six counts of aggravated identity theft claims, which carries a penalty a mandatory 2 years in federal prison, and a fine of up to $250,000, per count; four counts of aiding in a false tax return, which carries a penalty of not more than 3 years in federal prison, and a fine of up to $100,000, per count.
This case was investigated by the Internal Revenue Service – Criminal Investigation, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Bureau of Diplomatic Security Service (DSS), and Office of the Inspector General – Social Security Administration (SSA OIG).
This case is being prosecuted by Assistant U.S. Attorney Robert Brown.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Former County Commissioner Convicted of Attempting to Entice MinorRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Freeman Eugene Jockisch, 69, of Theodore, was convicted this morning of attempting to entice a 15-year old girl on the Internet. Jockisch, formerly a Mobile County Commissioner, was convicted following a one-day trial.
The evidence at trial showed that Jockisch responded to two Internet personal ads in July and November, 2013 from what he believed to be a 15-year old girl. Jockisch was arrested when he showed up to meet the girl in Saraland. The investigation was part of an undercover operation.
United States District Judge Callie V.S. Granade set Jockisch’s sentencing for July 15th at 1:00 p.m. Jockisch faces a mandatory sentence of ten years up to life in prison and a fine of up to $250,000. Following his release, Jockisch is subject to supervision by the United States Probation Office for the rest of his life.
The case was investigated by the Saraland Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Maria Murphy and Assistant United States Attorney Sean Costello handled the prosecution on behalf of the United States.
Former Certified Nursing Assistant and Co-Conspirators Sentenced to Prison for Identity Theft Tax SchemeRead the Press Release
Kimberly Banks, Donalene Mosely and Arneshia Austin were sentenced today in Albany, Ga., to serve 192 months, 37 months and 21 months in prison, respectively, for crimes relating to filing fraudulent income tax returns using stolen identities, announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. After a weeklong jury trial, Banks was convicted on Jan. 14, 2014, of conspiring to file false federal income tax returns in the names of stolen identities, wire fraud, aggravated identity theft and theft of government money. Mosely and Austin each pleaded guilty to conspiracy prior to trial. In addition to their terms of imprisonment, the court ordered Banks, Mosely and Austin to pay $275,134 in restitution and to serve three years supervised release.
According to court documents and evidence introduced at trial, Banks, who is a former certified nursing assistant, obtained the names and Social Security numbers of nursing home patients from her employer and conspired with Mosely, Austin and others to use the stolen identifying information to steal money from the government in the form of tax refunds. Several victims testified that they did not consent to the use of their names and Social Security numbers on these tax returns and testified that they did not receive any money from refunds generated by the false tax returns filed with the Internal Revenue Service (IRS).
The tax returns at issue were filed from internet protocol addresses assigned to Banks, and the fraudulent tax refunds were deposited onto prepaid debit cards that were mailed to addresses belonging to Banks, Mosely, Austin and others. The evidence also revealed that Banks and others used the stolen proceeds to make payments on their car loans and on their mortgages, to throw a red-carpet party and to buy products online. During the course of the conspiracy, Banks and her co-conspirators prepared 187 fraudulent tax returns that claimed over $600,000 in false refunds.
The case was investigated by special agents of the IRS-Criminal Investigation with the assistance of the Crisp County Sheriff’s Office. Trial Attorneys Kimberly Shartar and Alexander Effendi of the Tax Division prosecuted the case.
More information about the Tax Division and its enforcement efforts can be found at the division website.
Former CEO of Simi Valley Company Guilty of Bilking Navy by Selling $2.6 Million in Knock-Off Batteries Used on Aircraft Carriers and SubsRead the Press Release
LOS ANGELES – A federal jury has convicted the former CEO of the Simi Valley-based battery distributor Powerline Inc. of defrauding the government by selling more than $2.6 million in cheap, knock-off batteries to the U.S. Department of Defense.
Didier De Nier, 63, who lived in Simi Valley until he fled the United States nearly two years ago, was found guilty yesterday of five counts of wire fraud and one count of conspiracy to defraud the United States.
From 2004 to 2011, Powerline, which also did business as Birdman Distribution Corp, sold more than 80,000 batteries and battery assemblies that the Navy used for emergency back-up power aboard nuclear aircraft carriers, minesweepers and ballistic submarines. The batteries were installed on numerous Naval vessels.
According to the evidence presented during a six-day trial, De Nier and his employees disguised the bogus nature of the batteries by affixing counterfeit labels that falsely identified the batteries as originating from approved manufacturers. Powerline employees also used chemicals to remove “Made in China” markings from the knock-off batteries.
De Nier’s ex-wife Lisa De Nier, who had served for decades as Powerline’s vice president of sales, previously pleaded guilty in this case to conspiracy to defraud the government.
De Nier is scheduled to be sentenced by United States District Judge Dolly M. Gee on August 18. At sentencing, De Nier faces a statutory maximum sentence of 110 years in federal prison.
Lisa De Nier faces up to 10 in prison. She is expected to be sentenced by Judge Gee later this year.
Shortly after federal agents searched Powerline’s offices in July 2012, De Nier fled the Los Angeles area to live aboard his yacht near the Caribbean island of St. Martin, a French territory. In October 2013, federal agents arrested De Nier, a dual French-U.S. citizen, after he had sailed on his yacht to the U.S. Virgin Islands.The investigation in this case was conducted by the Defense Criminal Investigative Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Defense Logistics Agency and the Defense Contract Audit Agency provided significant support to this investigation.
Release No. 14-045
Felon in Possession of 81 Firearms and Methamphetamine Pleads GuiltyRead the Press Release
CHARLESTON, W.Va. – A Belle man who possessed 81 firearms at his Simmons Creek Road residence pleaded guilty today to a federal firearm indictment, announced U.S. Attorney Booth Goodwin. Dorsey Woolwine, Jr., 63, pleaded guilty in federal court in Charleston to being a felon in possession of firearms.
In March of 2012, police searched Woolwine’s home and property and seized 29 firearms including a sawed-off rifle. A year later, another search warrant was executed at Woolwine’s residence. This time, methamphetamine, scales, cash, and 52 additional firearms, including at least two stolen weapons, were discovered and seized. Woolwine had been previously convicted in Kanawha County for unlawful wounding, which precluded him from possessing any firearm. Woolwine faces up to 10 years in federal prison when he is sentenced on August 5, 2014.
Metropolitan Drug Enforcement Network Team (MDENT) and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
El Departamento de Justicia Llega a un Acuerdo Sobre una Queja de Discriminación Relacionada a Inmigración Contra Potter ConcreteRead the Press Release
WASHINGTON – El Departamento de Justicia llegó a un acuerdo hoy con Potter Concrete, una empresa con sede en Dallas, el cual resuelve los reclamos de que la empresa cometió un patrón o práctica de abuso de documentos en violación de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del departamento, la cual se inició basado en una remisión del Servicio de Cuidadanía e Inmigracaion de los Estados Unidos (USCIS por sus siglas en inglés), concluyó que Potter Concrete sometió a los nuevos empleados que no eran ciudadanos estadounidenses a exigencias ilegales de documentos específicos emitidos por el Departamento de Seguridad Nacional, mientras que a los ciudadanos estadounidenses se les permitía presentar los documentos de su elección. La investigación también reveló que Potter Concrete usaba el sistema E-verify selectivamente para confirmar que las personas que Potter Concrete sabían o creían que no eran ciudadanos estadounidenses o que habían nacido en el extranjero, cumplían con los requisitos de empleo. La provision anti-discriminación de la INA prohíbe que los empleadores impongan cargas documentales adicionales a los empleados con autorización de trabajo durante el proceso de contratación y verificación de elegibilidad de empleo basado en su estatus de inmigración u origen nacional.
Conforme al acuerdo de resolución, Potter Concrete pagará $115,000 en sanciones civiles a los Estados Unidos, participará en adiestramiento sobre la provision anti-discriminación de la INA, revisará las políticas de verificación de elegibilidad de empleo, y estará sujeta a supervisión de sus prácticas de verificación de elegibilidad de empleo por un año.
"Los empleadores no pueden crear obstáculos discriminatorios para aquellas personas con autorización de trabajo que no tienen ciudadanía estadounidense o que son ciudadanos naturalizados, durante el proceso de verificación de elegibilidad de empleo, lo cual incluye el programa E-verify", expresó la Asistente Interina del Procurador General de la División de Derechos Civiles, Jocelyn Samuels. "El Departamento de Justicia se compromete a proteger a los ciudadanos estadounidenses y a todos los inmigrantes con autorización de trabajo del abuso de documentos".
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC por sus siglas en inglés) es responsable de exigir el cumplimiento de la provision anti-discriminación de la INA. La ley prohíbe, entre otras cosas, la discriminación basada en el estatus de inmigración u origen nacional en la contratación, despido o reclutamiento o recomendación a cambio de un pago; abuso de documentos; y represalias o intimidación. Este asunto fue manejado por Abogado de la OSC, Ronald Lee, y por Especialista de Igualdad en el Empleo de la OSC, Alexandra A. Vince. Para más información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración o para como registrarse para un seminario de internet gratis, llame a la línea directa del empleado de la OSC al 1-800-255-7688 (1-800-237-2515, TTY para las personas con dificultades auditivos), llame a la línea directa de empleadores de la OSC al 1-800-255-8155 (1-800-237-2515, TTY para las personas con dificultades auditivos), o visite el sitio web en www.justice.gov/crt/about/osc.
Los solicitantes o trabajadores que creen que han sido sometidos a requisitos documentales distintos basados en su cuidadanía, estatus de inmigración u origen nacional, o a discriminación basada en su cuidadanía, estatus de inmigración u origen nacional en la contratación, despido, o reclutamiento o recomendación, deben comunicarse con la línea directa del empleado indicada arriba para recibir ayuda.
Easton Man Charged with Possession of Child PornographyRead the Press Release
Matthew Cenac, 23, of Easton, PA, was charged today by Information with the possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of ten years in prison.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
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.
Click here to view the indictment
An Indictment/Information/Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Eagle Pass Woman Sentenced to Federal Prison for Faking Her Own Kidnapping for Ransom MoneyRead the Press Release
In Del Rio this afternoon, 25-year-old Julia Esmeralda Garza of Eagle Pass, TX, was sentenced to 11 months in federal prison followed by three years of supervised release for her role in a fraudulent kidnapping scheme announced United States Attorney Robert Pitman and Federal Bureau of Investigation Acting Special Agent in Charge Aaron C. Rouse, San Antonio Division.
According to court records, on May 8, 2013, Garza used her cellphone to make phone calls and send text messages to a friend in attempt to obtain approximately $700 in ransom money. During the scheme, Garza fraudulently claimed that she had been kidnapped, threatened and was being held against her will in Mexico. The friend notified local police of the potential kidnapping. On November 20, 2013, Garza pleaded guilty to one count of wire fraud.
“This case demonstrates the FBI’s commitment to investigate and seek prosecution of individuals, who participate in fraudulent schemes, which compromise public safety by diverting valuable law enforcement resources away from true victims,” stated FBI ASAC Rouse.
This matter was investigated by the Federal Bureau of Investigation together with Eagle Pass Police Department. Assistant United States Attorney Lewis Thomas prosecuted this case on behalf of the Government.
Detroit Man Pleads Guilty to Clean Air Act CrimesRead the Press Release
A 48-year-old Detroit man pleaded guilty today to criminal violations of the Clean Air Act, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Randall Ashe, the Special Agent-in-Charge of the U.S. Environmental Protection Agency’s criminal enforcement program in Michigan.
Terry Williams pleaded guilty before U.S. District Judge Robert H. Cleland. Williams admitted to violating the Clean Air Actin connection with dismantling and scrapping the former AMC headquarters on Plymouth Road in Detroit. In 2012, Williams hired crews to remove salvageable metal from the facility. They disturbed asbestos-containing materials and released ozone-depleting substances. Williams’ crews dismantled at least 50 air conditioning units, including many large rooftop units, releasing R-22 refrigerant into the environment.
Williams also arranged for other fixtures on the property to be scrapped, ordering crews to cut and remove pipes he knew to be insulated with regulated asbestos-containing insulation. These insulated pipes were removed without following the work practice requirements under federal asbestos regulations, including failing to properly wet the asbestos containing materials to prevent asbestos fibers from becoming airborne and failing to secure the materials for proper disposal.“Exposure to asbestos can lead to serious diseases, and the defendant’s unsafe asbestos removal practices put the health of his workers and the public at risk,” said Ashe. “This defendant also chose to ignore the hazards of releasing ozone depleting substances, potentially causing harm to both human health and the environment. Today’s guilty plea demonstrates that those who knowingly engage in such conduct will be prosecuted to the fullest extent of the law."
“Prosecutions like this one are important to protect the people of Detroit from contaminants in the air,” McQuade said. “Environmental enforcement is a high priority for our office so that we can preserve Michigan’s best assets – its clean air and water.”
The crimes to which the defendant pleaded guilty are punishable by a maximum sentence of up to 5 years imprisonment, a $250,000 fine, or both.
The case was prosecuted by the U.S. Attorney’s Office in the Eastern District of Michigan by Assistant U.S. Attorney Jennifer Gorland and Special Assistant United States Attorney David Mucha. The case was investigated by agents of the Environmental Protection Agency’s Criminal Investigation Division.
Derek Rhinehart 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, DEREK DEFOREST RHINEHART was sentenced to 60 months imprisonment and 5 years supervised release for possession of methamphetamine with intent to distribute.
The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota.
In an Offer of Proof filed by Assistant U.S. Attorney Joseph Thaggard, the government stated that between October 2012 and late March 2013, Tomas Alvarado and Eliseo Martinez conspired to distribute and did, in fact, distribute, large quantities of methamphetamine in Billings, Montana and other areas in Eastern Montana, including the Bakken oil fields. The distribution of methamphetamine pursuant to that conspiracy ended on or March 11-12, 2013,
Alvarado and Martinez were arrested on federal drug trafficking charges, although the conspiracy continued for a period of time.
Alvarado and Martinez used a number of subordinates to distribute the methamphetamine. The Defendant was one such subordinate.
Alvarado has stated he fronted multiple pounds of methamphetamine to the Defendant for distribution.
On August 26, 2013, the Defendant was arrested in connection with this indictment. Following his arrest, the Defendant was provided a Miranda warning and agreed to speak to members of an FBI Task Force regarding the crimes charged in the indictment.
The Defendant admitted that met Alvarado near the end of 2012 and was recruited to sell methamphetamine for Alvarado.
The Defendant stated that, over the period of time that preceded Alvarado's arrest in March 2013, he received approximately 16 ounces of methamphetamine from Alvarado. The Defendant stated the methamphetamine was "fronted" (provided on credit) to him and that he distributed methamphetamine in Billings and Colstrip, Montana from the amounts of the drug provided to him by Alvarado.
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.
Dearborn Heights Doctor Convicted of Health Care FraudRead the Press Release
A Dearborn Heights doctor was convicted today in federal court on charges of illegal drug distribution, health care fraud and money laundering, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by James Allen, Acting Special Agent in Charge, Drug Enforcement Administration, Detroit Division, and Lamont Pugh, III, Special Agent in Charge, Department of Health and Human Services Office of Inspector General ("HHS-OIG").
U.S. District Judge Arthur J. Tarnow found Dr. Basil Qandil, 36, guilty on all 34 counts in the indictment.
The evidence presented during the two-week trial showed that between 2011 and 2013, Qandil prescribed more than 3.7 million dosage units of controlled substances outside the course of legitimate medical practice. The prescriptions were issued after either a cursory examination or no examination at all. He wrote unlawful prescriptions for narcotic drugs including Oxycodone and Vicodin, which were resold on the street market or used by addicted patients.
The evidence also showed that Qandil committed health care fraud by submitting all new patients to medical tests, including a medically unnecessary pulmonary function test, which were then billed to Medicare or other health insurance programs. Qandil transferred more than $1.5 million in proceeds from his crimes to an overseas bank account in Amman, Jordan.
United States Attorney Barbara L. McQuade stated, “Diversion of prescription drugs causes significant harm. The number of fatal overdoses from prescription drugs in the United States last year was more than six times the number of fatal overdoses from all other illegal drugs combined.”
The case was prosecuted by Assistant U.S. Attorneys Regina R. McCullough and Wayne F. Pratt.Davenport Man Sentenced on Federal Felon in Possession ChargeRead the Press Release
DAVENPORT, IA- On April 17, 2014, Isrrael Anthony Santiago, Jr., age 25, of Davenport, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 46 months imprisonment, after pleading guilty to felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Santiago was also ordered to serve three years of supervised release and pay $100 towards the Crime Victims Fund. In determining Santiago’s sentence, the district court noted that on March 1, 2012, Santiago displayed a handgun to a victim at a Davenport residence, and later fled from responding police officers armed with the same handgun.
This case was being prosecuted by the United States Attorney’s Office for the Southern District of Iowa. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Davenport Police Department.
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Dallas Woman Sentenced to Five Years in Federal Prison on Wire Fraud Conspiracy ConvictionRead the Press Release
Ran Ponzi Scheme Involving Medical Insurance Investments
DALLAS — Gloria Ann Solomon, 71, of Dallas, was sentenced today by U.S. District Judge Jane J. Boyle to five years in federal prison, following her guilty plea in July 2013 to a felony information charging one count of wire fraud; restitution will be determined at a later date. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In a related case, Duncan MacDonald, 50, also of Dallas, was sentenced earlier this month to five years in federal prison. He also pleaded guilty to an Information charging the same offense.
According to documents filed, from at least 2006 and continuing into at least September 2012, MacDonald was President and Director of Global Corporate Alliance, Inc. (GCA). MacDonald operated GCA out of offices in Addison and Euless, Texas. He hired co-conspirator Solomon in January 2007 as GCA’s Chief Administrative Officer.
GCA managed the North American Consumer Alliance (NACA), a not-for-profit member association that created and packaged insured benefit association healthcare programs and policies administered to corporations, organizations and other entities. GCA sold the healthcare policies throughout the U.S. and maintained a conservative management fee. It collected fees called “overages” that were in excess of the conservative management fee.
In 2008, MacDonald created GCA’s “Overage Program” to sell interests in the overages through “Overage Purchase Agreements.” An investor’s potential return was directly related to the number of people who enrolled in a healthcare plan by purchasing a healthcare policy from CGA. GCA would pay the investor for each new healthcare plan enrollee. MacDonald installed Solomon as the program’s manager and she worked with MacDonald in conducting GCA’s activities regarding the Overage Program.
MacDonald initially planned to have only a single person invest in the Overage Program, but when one couldn’t be found, GCA fractionalized the program to make it available for multiple investors to provide smaller amounts of funds. GCA contracted with a sales agent to solicit individuals to invest, and the sales agent used information regarding the Overage Program that was provided by MacDonald and Solomon. That information included the number of current and projected healthcare plan enrollees that would drive investors’ potential returns.
MacDonald admits that he significantly inflated the current and projected enrollment figures by the thousands in an attempt to sell the Overage Program to investors. He and Solomon knew that the figures were false and that the sales agent would relay the figures to investors he was soliciting.
MacDonald also personally acquired investors for the Overage Program. In fact, MacDonald and Solomon provided false information to persuade one particular investor to invest $2 million in the Overage Program. They then used this money to make payments to existing program investors.
When GCA had difficulty making timely payments to Overage Program investors, MacDonald authorized Solomon to respond to investor complaints and inquiries with excuses for the delayed payments. Solomon sent these emails from accounts that were created for fictitious GCA employees.
The Overage Program did not generate any income or revenue. Less than 50 people actually bought any healthcare policies during the lifetime of the program. MacDonald and Solomon admit that any payments made to existing investors came from money that GCA received from new investors in the program.
In a parallel action, the U.S. Securities and Exchange Commission (SEC) charged both defendants with securities fraud and conducting an unregistered securities offering while acting as unregistered broker-dealers. That complaint alleges that GCA had raised nearly $10 million from investors and returned about $2 million to investors in the form of Ponzi payments. On August 8, 2013, the district court entered Agreed Partial Judgments against both defendants, enjoining them from future violations of federal securities laws. The SEC continues to seek disgorgement plus prejudgment interest and civil penalties against both defendants.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, which was established in 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
The FBI conducted the investigation. The SEC’s Fort Worth Regional Office also provided valuable assistance. Assistant U.S. Attorney Chris Stokes led the prosecution.
Corporate-Wide Settlement with Lowe’s Protects Public from Lead Pollution During Home RenovationsRead the Press Release
Lowe’s Home Centers, one of the nation’s largest home improvement retailers, has agreed to implement a comprehensive, corporate-wide compliance program at its more than 1,700 stores nationwide to ensure its contractors minimize lead dust from home renovation activities, as required by the federal Lead Renovation, Repair and Painting (RRP) Rule, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today. The company will also pay a $500,000 civil penalty, which is the largest ever for violations of the RRP Rule.
The settlement stems from violations, discovered by EPA inspectors, of the RRP Rule’s recordkeeping and work practice standards at private homes that had been renovated by Lowe’s contractors. EPA enforces the RRP and other lead rules to protect children and others who are vulnerable to exposure to lead dust that can cause lead poisoning.
“Today’s settlement requires Lowe’s to institute a robust, nationwide program at its more than 1,700 stores nationwide to ensure that the contractors it hires to perform renovation projects, like window and carpet installation, are properly certified and adhere to practices that help prevent lead contamination in customers’ homes,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This action, the first of its kind to address lead safe work practices on a system-wide basis, will help prevent children’s exposure to lead in communities across the nation by raising home improvement contractors’ awareness of EPA’s lead safety regulations and contributing to a culture of compliance.”
“Today’s settlement sends a clear message to all contractors and the firms they hire: Get lead certified and comply with the law to protect children from exposure to dangerous lead dust,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Lowe’s is taking responsibility for the actions of the firms it hires, and EPA expects other contractors to do the same.”
“Protecting our most valuable assets, our children, is something that I will always do,” said Stephen R. Wigginton, U.S. Attorney for the Southern District of Illinois. “This settlement will ensure that not only children in southern Illinois, but children throughout the United States will be better protected from the known hazards associated with lead exposure. I commend Lowe’s for taking responsibility and entering into this agreement.”
EPA discovered the violations through a review of records from completed renovations performed by contractors hired by the following Lowe’s stores: Alton, Ill.; Kent and Trotwood, Ohio; Bedford, N.H.; Southington, Conn.; South Burlington, Vt.; Rochester, N.Y.; Savannah and Lebanon, Tenn.; Boise, Idaho Falls and Nampa, Idaho; and Muldoon, Alaska.
The government complaint alleged that Lowe’s failed to provide documentation showing that its contractors had been certified by EPA, had been properly trained, had used lead-safe work practices, or had correctly used EPA-approved lead test kits at renovation sites. Additionally, EPA’s investigation found that Lowe’s contractors had failed to ensure that work areas had been properly contained and cleaned during renovations at three homes. EPA’s investigation was prompted by tips and complaints submitted by the public.
In addition to the civil penalty, Lowe’s must implement a comprehensive compliance program to ensure that the contractors it hires to perform work for its customers comply with the RRP Rule during renovations of any child-occupied facilities, such as day-care centers and schools, and any housing that was built before 1978. For these projects, Lowe’s must contract with only EPA-certified renovators, ensure they maintain certification, and ensure they use lead safe work practices checklists during renovations. In addition, Lowe’s must suspend anyone that is not operating in compliance with the rule, investigate all reports of potential noncompliance and ensure that any violations are corrected.
The RRP Rule, which implements the federal Toxic Substances Control Act, is intended to ensure that owners and occupants of housing built before 1978, as well as any child-occupied facilities, receive information on lead-based paint hazards before renovations begin, and that individuals performing such renovations are properly trained and certified by EPA and follow specific work practices to reduce the potential for lead-based paint exposure. Home improvement companies such as Lowe’s that contract with renovators to perform renovation work must ensure that those contractors comply with all of the requirements of the RRP Rule.
Lead-based paint was banned in 1978 but still remains in many homes and apartments across the country. Lead dust hazards can occur when lead paint deteriorates or is disrupted during home renovation and remodeling activities. Lead exposure can cause a range of health problems, from behavioral disorders and learning disabilities to seizures and death, putting young children at the greatest risk because their nervous systems are still developing.
In February 2014, EPA announced enforcement actions that require 35 home renovation contractors and training providers to take additional steps to protect communities by minimizing harmful lead dust from home renovation activities, as required by the RRP Rule. Those settlements generated a total of $274,000 in civil penalties.
Renovators that are certified under EPA’s RRP Rule are encouraged to display EPA’s “Lead-Safe” logo on worker’s uniforms, signs, websites and other material, as appropriate. Consumers can protect themselves by looking for the logo before hiring a home renovator.
Lowe’s operates over 1,700 stores throughout the U.S., with over 120 additional stores located in Canada and Mexico. Lowe’s Home Centers, LLC, formerly known as Lowe’s Home Centers Inc. and Lowe’s HIW Inc., is headquartered in Mooresville, N.C.
The consent decree was lodged in the U.S. District Court for the Southern District of Illinois. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will available for viewing at www.justice.gov/enrd/Consent_Decrees.html .
More information about today’s settlement: http://www2.epa.gov/enforcement/lowes-home-centers-llc-settlement
More information about related settlements: http://yosemite.epa.gov/opa/admpress.nsf/2467feca60368729852573590040443d/383445d9a21d283f85257c83005a24ce!OpenDocument&Highlight=2,lead
More information about the RRP Rule and how contractors can get certified: www.epa.gov/leadRelated Materials:
Lowes Complaint
Lowes Consent DecreeConvicted Ponzi-Schemer Indicted on New Fraud and Other ChargesRead the Press Release
NEWARK, N.J. - An Ocean County, N.J., man who was sentenced less than two months ago to 22 years in prison for running a Ponzi-style real estate scheme was indicted by a federal grand jury today on new charges of conspiracy, wire fraud and transacting criminal proceeds while on pretrial release, U.S. Attorney Paul J. Fishman announced.
Eliyahu Weinstein, 38, of Lakewood, N.J., was indicted on one count of conspiracy to commit wire fraud, five counts of wire fraud committed while on pretrial release, and seven counts of transacting in criminal proceeds. The government is seeking the seizure and forfeiture of all funds fraudulently obtained by Weinstein as a result of the scheme.
According the indictment and documents filed in this and other cases:
Weinstein allegedly defrauded victims through three investment schemes: (1) pre-IPO shares of Facebook stock; (2) the purchase of an apartment complex in Florida; (3) the purchase of the mortgage notes on seven Florida condominiums. Weinstein and co-defendants Alex Schleider and Aaron Muschel, were originally charged by criminal complaint with the Facebook fraud in May 2013.
In February of 2012, Weinstein and his fellow conspirators allegedly offered a pair of investors (referred to in the indictment as the “Facebook victims”) the opportunity to purchase large blocks of Facebook shares prior to the company’s initial public offering, or IPO, in May 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get, and they were expected to increase in value at the time of the IPO. Weinstein and his conspirators did not actually have access to the shares.Based on alleged misrepresentations by Weinstein and his conspirators, the Facebook victims wired millions of dollars between February and March of 2012 to an account Weinstein and a conspirator controlled. Weinstein and another conspirator convinced the Facebook victims to send the money by, among other things, providing them with false documents showing companies owned by various conspirators held assets which would secure the Facebook victims’ investment.
The conspirators did not use any of the Facebook victims’ money to purchase Facebook shares, instead misappropriating it for their own use and benefit by moving it through various accounts. Weinstein used some of the money to pay lawyers and experts representing him in his earlier – and at that time, still pending – criminal case and in related civil matters. Weinstein and his conspirators also used the Facebook victims’ money to make investments in a number of different businesses unrelated to Facebook, and to make loans for their own benefit.
Around the same time, Weinstein and his conspirators also persuaded the Facebook victims to invest in the purported purchase of an apartment complex, “Belle Glade Gardens,” in Florida. They falsely told the Facebook victims that Weinstein had the opportunity to purchase Belle Glade Gardens at a discounted price and immediately flip it at a substantial profit. Weinstein and his conspirators further told the Facebook victims that Weinstein had already placed $2.5 million in the trust account of a Miami law firm for the transaction; that if the Facebook victims contributed another $2.5 million toward the transaction, those funds would remain in escrow at the Miami law firm until the deal closed; and that the Facebook victims would be repaid within 60 days. In reliance on these representations, the Facebook victims wired approximately $2.83 million to the Miami law firm in order to complete the Belle Glades Gardens transaction. Weinstein and his conspirators, however, did not use the money to purchase Belle Glades Gardens. Instead, they allegedly redirected the money from the law firm to accounts that they controlled, returned $1.8 million to the Facebook victims as a purported return on their Facebook investment, and used the remaining money for their own purposes.
In July 2012, Weinstein allegedly approached another group of investor victims (referred to in the indictment as the “Florida condominium victims”) and told them that he had the opportunity to purchase the notes on seven condominiums in Florida at a discounted price of $3 million. Weinstein and his conspirators falsely represented that they had already paid $1.5 million toward the deal, and that they needed only $1.5 million to complete the transaction. They claimed that the properties had an annual rental income of approximately $780,000, and provided to the Florida condominium victims fraudulent documentation purporting to verify this fact. The Florida condominium victims transferred approximately $1.5 million to Weinstein and his conspirators between August 2012 and December 2012. Weinstein did not use this money to purchase the notes on the Florida condominiums – many of which he himself had previously owned and lost to foreclosure. Instead, Weinstein and his conspirators converted the money to their own use and benefit.
Throughout the scheme, Weinstein was already under indictment and on pretrial release, and was prohibited from engaging in any monetary transaction for more than $1,000 without the approval of court-appointed special counsel. Weinstein pleaded guilty on Jan. 3, 2013, before U.S. District Judge Joel A. Pisano in Trenton, N.J., to two counts of that indictment, admitting he ran a Ponzi-style real estate investment fraud scheme that caused $200 million in losses and then laundered the proceeds of the scheme. Judge Pisano sentenced Weinstein on Feb. 25, 2014, to 264 months in prison and ordered him to pay more than $200 million in restitution and forfeiture to the victims of his scheme.The conspiracy count with which Weinstein is charged carries a maximum potential penalty of 20 years in prison; the wire fraud counts carry a maximum potential penalty of 30 years in prison (20 years on the wire fraud plus 10 years for commission while on pretrial release); and the transacting in criminal proceeds counts carry a maximum potential penalty of 10 years in prison. All the counts are also punishable by a $250,000 fine.
Charges against Muschel and Schleider, who were charged in the criminal complaint filed against Weinstein in May 2013, remain pending.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s indictment. He also credited special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for role in the case.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig; Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorneys Zach Intrater of the Economic Crimes Unit and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
The charges and allegations against the defendants are merely accusations, and they are considered innocent unless and until proven guilty.
Today’s indictment is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
14-134Defense counsel: Eric Creizman Esq., New York
Weinstein, Eliyahu Indictment II
Connecticut Man Charged with Coercing A MinorRead the Press Release
BOSTON – A Connecticut man was charged today with attempting to engage a 14-year-old in sexual activity.
Paul R. Hinkel, 56, of Chester, Conn., was indicted on charges that he induced and coerced, and attempted to induce and coerce, a minor to engage in sexual activity.
In February 2014, federal undercover agents in Boston placed an advertisement on Craigslist purportedly as a mother seeking an adult interested in a “taboo relationship” with her daughter. Hinkel responded that he was interested, even after the purported mother disclosed that the daughter was only 14-years-old. Hinkel proceeded to engage in email communications with the purported mother, detailing the sexual activities in which he would engage with the minor “daughter”. On March 19, Hinkel traveled from his home in Chester to Watertown, Mass., for the purpose of having sex with a minor. Upon his arrival at the designated meeting place, he was arrested by federal agents. At the time of his arrest, Hinkel was carrying a bag which contained sexual paraphernalia, men’s cologne, and a stuffed animal for the minor.
If convicted, Hinkel faces a statutory mandatory minimum term of 10 years in prison, a minimum of five years and a maximum of a lifetime of supervised released, and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs enforcement’s Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by the U.S. Attorney’s Office in Connecticut, HSI Connecticut, the Massachusetts State Police, and the Watertown Police Department. The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, 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/.
Clarion Man Sentenced to 18 Years on Child Pornography ChargesRead the Press Release
A repeat sex offender who possessed child pornography was sentenced April 16, 2014, to 18 years in federal prison.
Kevin Ammerman, age 49, of Clarion, Iowa, received the sentence after a January 16, 2014, guilty plea to two counts of possession of child pornography. Ammerman previously had been convicted of lascivious acts with a child in Wright County in 1985. Ammerman also had been convicted of indecent contact with a child in Wright County in 2000.
Ammerman was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Ammerman was sentenced to 216 months’ imprisonment. A special assessment of $200 was imposed, and Ammerman must also serve a 15-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by Homeland Security Investigations and the Wright County Sheriff’s Office.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3048.
Chamico President and Employees Charged with Mail Fraud and ConspiracyRead the Press Release
CHARLES “CHUCK” MIZELL, JR., age 44, a resident of Bogalusa, Louisiana, JAMES CREEL, age 48, a resident of Bogalusa, Louisiana, WILLIAM DARRYL KING, age 47, a resident of Angie, Louisiana, TENILLE NIELSON, age 34, a resident of Franklinton, Louisiana, JACQUELINE MYERS, age 27, a resident of Franklinton, Louisiana, JERRY ATHEY, age 56, a resident of Bogalusa, Louisiana, DAVID LOWE, age 48, a resident of Bogalusa, Louisiana, TERRY CASTILOW, age 48, a resident of Bogalusa, Louisiana, and ROGER NADEAU, age 51, a resident of Linn, Missouri, were charged today by a grand jury sitting in the Eastern District of Louisiana with mail fraud and conspiracy to commit mail fraud for an alleged scheme to defraud the Louisiana Workforce Commission of unemployment benefits, announced United States Attorney Kenneth Allen Polite, Jr.
According to the indictment, CHARLES “Chuck” MIZELL, JR., the President of Chamico, Inc., a Bogalusa construction company, and TERRY CASTILOW, WILLIAM DARRYL KING, DAVID LOWE, JAMES CREEL, JERRY ATHEY, TENILLE NIELSON, JACQUELINE MYERS, and ROGER NADEAU who were Chamico employees, conspired to defraud the Louisiana Workforce Commission (“LWC”) of money and property by means of false and fraudulent pretenses, representations, and promises, and by mailing and causing to be mailed through the United States Postal Service fraudulent unemployment benefit claim forms for the purpose of obtaining unemployment benefits to which they were not entitled. Specifically, at the time CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU applied for unemployment benefits and made weekly representations to LWC that they were unemployed and not getting paid, MIZELL, JR., employed them at Chamico. MIZELL, JR. had Chamico checks cashed and used the cash to pay CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU the difference in their salaries after LWC paid them fraudulent unemployment benefits. MIZELL, JR., confirmed the misrepresentations his employees made to the LWC on the Notice of Claim Filed and Notice of Base Period Employer forms mailed to Chamico by the LWC stating that CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU, were not employed by Chamico because of lack of work. As a result, MIZELL, JR. did not have to pay the employees their full salaries thereby saving Chamico and himself money. In addition to being charged with conspiracy, MIZELL, JR., CASTILOW, ATHEY, CREEL, LOWE, NIELSON, and NADEAU, are charged with substantive mail fraud counts based on the mailing of the employer notice forms that fraudulently confirmed to LWC that ATHEY, CREEL, LOWE, NIELSON, and NADEAU, were unemployed due to lack of work.
United States Attorney Polite reiterated that the charges in the indictment are allegations and the defendants are innocent until proven guilty.
The defendants face a maximum sentence of five (5) years in prison on the conspiracy count, and 20 years in prison on each of the mail fraud counts. The defendants also face a $250,000 fine and three (3) years of supervised release as to each count.
The case was investigated by the Department of Labor-Office of Inspector General and the Federal Bureau of Investigation with assistance from the Louisiana Workforce Commission. The case is being prosecuted by Assistant United States Attorney Emily K. Greenfield.
Cambridge Teacher Charged with Transportation of Child PornographyRead the Press Release
BOSTON – A Cambridge elementary school teacher was charged today with transporting child pornography.
Josh Wairi, 27, of Somerville, was arrested and charged in a criminal complaint with transportation of child pornography. Wairi is being held without bail pending a detention and probable cause hearing which is scheduled for April 23, 2014 at 2:30 pm.
The complaint alleges, among other things, that Wairi, a fifth grade teacher, used his email account to trade and receive images of child pornography and also uploaded images and videos of children being sexually exploited. The complaint further alleges that Wairi transferred the images and videos of child pornography to other users.
If convicted, Wairi faces a mandatory minimum sentence of five years and a maximum of 20 years of in prison, a mandatory minimum of five years and a maximum of a lifetime of supervised release, and a $250,000 fine.United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Acting Somerville Chief of Police Charles Femino, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, 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/.
Borger, Texas, Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
AMARILLO, Texas — Aaron Robert Wells, 23, of Borger, Texas, appeared today in federal court, before U.S. District Judge Mary Lou Robinson, and pleaded guilty to one count of transportation of child pornography. Wells, who is on bond, faces a maximum statutory penalty of not less than five years and up to 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing will be set at a later date. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to documents filed in the case, in March 2012, Wells was contacted online by an undercover law enforcement officer through file sharing software. Wells provided the undercover officer passwords necessary to download images of child pornography that Wells had saved his computer and had made available for online sharing. Among other images, the undercover officer downloaded two images of minor males engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI is investigating the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Billings Woman Gets Two Years for Role in Meth Conspiracy Karrie Marie StoltenbergRead the Press Release
The United States Attorney's Office announced that on April 3, 2014, before U.S. District Judge Susan P. Watters, Karrie Marie Stoltenberg, a 40 year-old resident of Billings, Montana, was sentenced to a term of 24 months imprisonment, three years supervised release, and a $100 special assessment. Stoltenberg was sentenced in connection with her guilty plea to conspiracy to possess with intent to distribute methamphetamine.
Assistant U.S. Attorney Brendan McCarthy, during the course of an investigation into the sales of methamphetamine by J.S. and H.R. in the Billings, Montana area, agents learned that J.S. had kept a safe containing methamphetamine at the Billings Heights residence of Karrie Marie Stoltenberg. Agents confirmed through multiple sources that Stoltenberg allowed J.S. to keep the safe at her house from October to November of 2012. Agents also confirmed that Stoltenberg knew that the safe contained methamphetamine. A cooperating witness admitted that she stole the safe from Stoltenberg's residence in November of 2012, and the safe contained less than a pound of methamphetamine.
Beckley Woman Sentenced to 14 Months for Obtaining Oxycodone by FraudRead the Press Release
BECKLEY, W.Va. – Tina Marie Richmond, age 41, of Beckley, West Virginia was sentenced to 14 months in federal prison for obtaining oxycodone by fraud, announced U.S. Attorney Booth Goodwin.
While employed as a receptionist at a Beckley area doctor’s office, Richmond stole a prescription pad that contained the doctor’s DEA registration number. Richmond used the pad to write prescriptions for oxycodone on which she forged the doctor’s signature. Richmond plead guilty in December of 2013
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.Beckley Man Sentenced to Two Years in Federal Prison for Defrauding Walker MachineryRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced that Mark Randall Trump, 44, of Beckley, West Virginia was sentenced to serve two years in federal prison for defrauding Walker Machinery. Trump was also ordered to pay $367,000 in restitution.
Trump was a branch manager of the Walker Express Store in Crab Orchard, West Virginia. From 2009 until April of 2012, Trump gave select customers discounts on equipment rentals if payment was made with cash or personal check. These payments were then deposited into Trump’s personal bank account. Trump concealed the fraud by creating rental agreements for the customers and then later deleting them from Walker Machinery’s computer system. Trump also failed to process paperwork which would have prompted the creation of invoices.
Through this scheme, Trump converted $90,000 to his own use and caused over $350,000 in loss to Walker Machinery. Trump pleaded guilty in December of 2013 to the wire fraud charge.
The West Virginia State Police and the Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Blaire L. Malkin handled the prosecution. United States District Judge Irene C. Berger imposed the sentence.
Augusta Business Woman Sentenced to over 23 Years in Prison for Investor Fraud SchemeRead the Press Release
AUGUSTA, GA: REGINA M. PREETORIUS, 47, of Augusta, Georgia was sentenced yesterday to 280 months in prison by U. S. District Court Judge J. Randal Hall for her role in a multi-million dollar investor fraud scheme. After a lengthy jury trial in September 2013, Preetorius was convicted of eight counts of mail fraud, two counts of wire fraud, and three counts of money laundering.
Evidence presented at trial and during sentencing showed that between 2004 and 2009, Preetorius defrauded dozens of investors out of homes and over $1 million. The victims included private investors and distressed homeowners facing imminent foreclosure. Preetorius promised certain investors that that they would make enormous returns off of their investments in real estate; instead, Preetorius used the homes and money to support her lavish lifestyle.
United States Attorney Edward J. Tarver said, “This defendant stole millions of dollars in money and property from dozens of victims. Preetorius’s promises of realizing the American Dream quickly turned to nightmares for her victims. She now has over two decades in a federal prison cell to sleep on the harm she has caused others.”
In addition to the ordered term of imprisonment, Preetorius was ordered to pay $1,457,374.67 in restitution. After Preetorius is released from prison, she will serve three years of supervised release. Regarding the length of the prison sentence, Mr. Tarver noted that parole was abolished in the federal system in 1984.
FBI Special Agent Paul Kubala and IRS-CI Special Agent Roger Garland conducted the investigation which led to the indictment. Assistant United States Attorney C. Troy Clark and former Assistant United States Attorney David M. Stewart 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.
Assault on A Federal Officer Draws Prison Time for Crow Agency ManRead 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, CHARLES JOSEPH WALKS was sentenced to a term of 51 months imprisonment, 3 years of supervised release and $100 special assessment.
Walks was sentenced in connection with his December 2013 guilty plea to assault on a federal officer. In an Offer of Proof filed by Assistant U.S. Attorney Lori Suek, the government stated that on August 25, 2012, the defendant had been drinking alcohol and drove to a home in Lodge Grass to see an individual that had filed a complaint with the local police department against the defendant four days earlier.
When the defendant arrived at the residence, the defendant was told to leave and the police were called. The victim, a Bureau of Indian Affairs police officer, responded with lights and sirens activated. Almost immediately upon arriving at the scene, the victim was attacked by the defendant and, during the assault, the victim's knee was twisted under his body. The victim suffered a torn meniscus, a torn anterior cruciate ligament, and the victim had to undergo surgery to repair the damage. He was put on seven months of light duty.
On April 4, 2013, the defendant was interviewed. He admitted that something happened with the officer but that he could not provide any specific details because of his alcohol consumption and claimed that he blacked out and woke up in jail.
Army Reserve Soldier Agrees to pay $20,000 to Settle Civil Claims of Obtaining Fraudulent Housing BenefitsRead the Press Release
Oklahoma City, Oklahoma -- Monique J. Ritz, a reserve soldier with the United States Army from Edmond, Oklahoma, has agreed to pay $20,000 to the United States to settle civil claims related to obtaining fraudulent housing benefits, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The United States filed a civil action against Ritz and her former spouse Edward Donahue, a former reserve soldier with the United States Army, alleging that from June of 2007 through January of 2010, Donahue submitted travel vouchers for lodging reimbursement which included lease agreements created and signed by Ritz. It was alleged that the lease agreements falsely represented that Donahue was the only occupant of the residence and that Donahue was paying rent to Ritz when in fact they were living together in the residence as husband and wife. As a result, Donahue and Ritz received lodging reimbursement benefits from the United States Army to which they were not entitled. Ritz did not admit liability but agreed to pay $20,000 to the government in order to resolve the claims against her. In addition, Ritz executed a Consent Judgment of her indebtedness in favor of the United States in the amount of $20,000. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the United States Army Criminal Investigation Command and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Armenian Power Gang Leaders Convicted in Federal RICO CaseRead the Press Release
LOS ANGELES – Two leaders of the Armenian Power gang were convicted today of participating in a racketeering conspiracy that included extortion, firearms offenses, bank fraud and identity theft targeting elderly bank customers, as well as a sophisticated credit and debit card skimming scheme that stole account numbers and personal identification numbers (PINs) from thousands of people who used their cards at 99 Cents Only Stores across Southern California.
Concluding a four-week trial, a federal jury returned guilty verdicts against Armenian Power leaders Mher “Capone” Darbinyan and Arman “Horse” Sharopetrosian. Rafael Parsadanyan, an associate of the gang, was also convicted for his role in the 99 Cents Only Stores skimming scheme.
The convictions today in United States District Court in Los Angeles were announced by United States Attorney André Birotte Jr., Acting Assistant Attorney General David O’Neil of the Justice Department’s Criminal Division, and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office.
Darbinyan, 38, of Valencia, was found guilty of 57 criminal counts, including racketeering conspiracy, extortion conspiracy, extortion, bank fraud, access device fraud conspiracy, aggravated identity theft, and possession of a firearm by a convicted felon. According to the evidence presented at trial, Darbinyan was a leader of Armenian Power who participated in extortions, firearms offenses, frauds, and identity theft, and repeatedly engaged in criminal activities with members of the Mexican Mafia prison gang. Among other things, Darbinyan operated a sophisticated bank fraud scheme that used middlemen and runners to deposit and cash hundreds of thousands of dollars in fraudulent checks drawn on the accounts of elderly bank customers and businesses. Separately, Darbinyan also organized and operated a sophisticated debit card skimming operation targeting customers of the discount chain 99 Cents Only Stores. This expansive scheme involved installation of skimmers in stores that were used to steal customers’ debit card numbers and PIN codes. The scheme targeted stores across Southern California, and involved the bank accounts of thousands of customers of the discount store. Darbinyan also conspired to extort and extorted funds from a member of the Armenian community using threats of violence against the victim and his family members. Darbinyan, on two separate occasions, possessed firearms and ammunition after having previously been convicted of felony grand theft for his role in a 2004 debit card fraud scheme. At sentencing, Darbinyan will face a statutory maximum penalty of 973½ years in federal prison.
Sharopetrosian, 35, was convicted of three counts – racketeering conspiracy, extortion conspiracy, and extortion. The evidence at trial showed that while Sharopetrosian was incarcerated in Avenal State Prison in 2009, he used smuggled cell phones to direct the extortion of a member of the Armenian community. Sharopetrosian worked together with Darbinyan and others to carry out the extortion over a period of six months, at one point even arranging the kidnapping at gunpoint of the victim in order to hasten the extortion payments. Sharopetrosian, at different times, threatened to kill and kidnap the victim in order to coerce the victim into paying him more than $100,000. As a result of today’s guilty verdicts, Sharopetrosian faces a statutory maximum sentence of 60 years in federal prison.
Parsadanyan, 29, of Los Angeles, was convicted of 14 counts of bank fraud for his role in the 99 Cents Only Store scheme. The evidence at trial showed that Parsadanyan assisted Darbinyan by, among other things, collecting and storing proceeds of the fraud scheme, including delivering approximately $34,000 in criminal proceeds to a co-schemer. Each count of bank fraud carries a statutory maximum sentence of 30 years in federal prison.
Darbinyan, Sharopetrosian, and Parsadanyan were convicted after a jury trial before United States District Judge R. Gary Klausner. Darbinyan is scheduled to be sentenced on July 21. Sharopetrosian is scheduled to be sentenced on September 15. Parsadanyan is scheduled to be sentenced on July 14.
Darbinyan, Sharopetrosian, and Parsadanyan were among 90 individuals charged in 2011 in two indictments targeting Armenian Power. One indictment accused 29 defendants, including Darbinyan and Sharopetrosian, of participating in the Armenian Power racketeering conspiracy that involved a host of illegal activities such as sophisticated bank fraud schemes, identity theft, debit card skimming, manufacturing counterfeit checks. Some defendants in the case were charged with participating in a variety of violent crimes, such as kidnapping, extortion and firearms offenses.
According to court documents, the Armenian Power street gang formed in the East Hollywood area of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. Armenian Power has more than 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions, and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
The evidence also showed that Armenian Power leaders worked closely with powerful organized crime figures in Russia and Armenia, known as “thieves-in-law,” to commit criminal activities in the Los Angeles area and elsewhere.
Out of the 90 defendants charged in the two indictments, 85 have now been been convicted. Two of the defendants are still pending trial, two defendants are fugitives, and prosecutors dismissed charges against one defendant. The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, the Glendale Police Department, the Los Angeles Police Department, the Burbank Police Department, the Los Angeles Sheriff’s Department, IRS – Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Secret Service. The Huntington Beach Police Department and the Beverly Hills Police Department provided assistance.
The case is being prosecuted by Assistant United States Attorneys E. Martin Estrada and Elizabeth Yang of the Central District of California and Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section.Release No. 14-047
Armenian Power Gang Leaders Convicted <br /> for Their Role in Racketeering ConspiracyRead the Press Release
Two leaders of the Armenian Power gang were found guilty today by a federal jury in Los Angeles for their participation in a racketeering conspiracy that included extortion, bank fraud targeting elderly bank customers and a sophisticated credit and debit card skimming scheme that stole account numbers and personal identification numbers (PINs) from thousands of people who used their cards at 99 Cents Only Stores throughout Southern California.
Armenian Power leaders Mher “Capone” Darbinyan and Arman “Horse” Sharopetrosian were each found guilty for their roles in a racketeering conspiracy, and an associate of the gang, Rafael Parsadanyan, was found guilty for his role in the 99 Cents Only Stores skimming scheme.
Acting Assistant Attorney General David O’Neil of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement following a four-week jury trial before United States District Judge R. Gary Klausner of the Central District of California.
Darbinyan, 38, of Valencia, was found guilty of 57 criminal counts, including racketeering conspiracy, extortion conspiracy, extortion, bank fraud, access device fraud conspiracy, aggravated identity theft and possession of a firearm by a convicted felon. According to the evidence presented at trial, Darbinyan was a powerful leader of Armenian Power who operated a sophisticated bank fraud scheme that used middlemen and runners to deposit and cash hundreds of thousands of dollars in fraudulent checks drawn on the accounts of elderly customers and jewelry businesses. Darbinyan also organized and operated a sophisticated debit card skimming operation targeting customers of 99 Cents Only Stores. This expansive scheme involved installation of skimmers in stores that were used to steal customers’ debit card numbers and PINs. The scheme targeted stores throughout Southern California and involved the bank accounts of thousands of customers of the discount store. Separately, Darbinyan conspired to extort and extorted funds from a member of the Armenian community using threats of violence. He also possessed, on two separate occasions, firearms and ammunition after having previously been convicted of felony grand theft for his role in a 2004 debit card fraud scheme.
Sharopetrosian, 35, was convicted of three counts: racketeering conspiracy, extortion conspiracy and extortion. The evidence at trial showed that while Sharopetrosian was incarcerated in Avenal State Prison in 2009, he directed the extortion of a member of the Armenian community. Sharopetrosian worked together with Darbinyan and others to carry out the extortion over a period of six months, at one point even arranging the kidnapping of the victim in order to hasten the extortion payments. Sharopetrosian, at different times, threatened to kill and kidnap the victim to coerce the victim into paying him over $100,000.
Parsadanyan, 29, of Los Angeles, was convicted of 14 counts of bank fraud for his role in the 99 Cents Only Store scheme. The evidence at trial showed that Parsadanyan assisted Darbinyan by, among other things, collecting and storing proceeds of the fraud scheme, including delivering approximately $34,000 in criminal proceeds to a co-schemer.
Darbinyan is scheduled to be sentenced on July 21, 2014. Sharopetrosian is scheduled to be sentenced on Sept.15, 2014. Parsadanyan is scheduled to be sentenced on July 14, 2014.
Darbinyan, Sharopetrosian and Parsadanyan were among 90 individuals charged in 2011 in two indictments targeting Armenian Power. One indictment accused 29 defendants, including Darbinyan and Sharopetrosian, of participating in the Armenian Power racketeering conspiracy that involved a host of illegal activities such as sophisticated bank fraud schemes, identity theft, debit card skimming and manufacturing counterfeit checks. Some defendants in the case were charged with participating in a variety of violent crimes, such as kidnapping, extortion and firearms offenses.
According to court documents, the Armenian Power street gang formed in the East Hollywood area of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. Armenian Power has more than 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
Out of the 90 defendants charged in the two indictments, 85 have now been convicted. Two of the defendants are still pending trial, two defendants are fugitives and prosecutors dismissed charges against one defendant. The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by the Eurasian Organized Crime Task Force, which is composed of the FBI, the Glendale Police Department, the Los Angeles Police Department, the Burbank Police Department, the Los Angeles Sheriff’s Department, IRS – Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Secret Service. The Huntington Beach Police Department and the Beverly Hills Police Department provided assistance.
The case is being prosecuted by Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys E. Martin Estrada and Elizabeth Yang of the Central District of California.Angelo Hill Sentenced to 21 Months in Prison for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Angelo Hill, 51, a former Virgin Islands Police Department sergeant, to 21 months in prison for conspiracy to possess with intent to distribute cocaine, United States Attorney Ronald W. Sharpe announced.
On December 18, 2013, Hill pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine after he was arrested on May 24, 2013, and charged with conspiracy to possess with intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking. Hill was arrested as part of the investigation of Roberto Tapia, Director of the Virgin Islands Department of Planning and Natural Resources (DPNR) Division of Environmental Enforcement. On September 12, 2013, he was charged in a 34-count second superseding indictment, along with six other defendants, including Tapia, Raymond Brown, Hector Alcenio, Edwin Monsanto, Stephen Torres, and Eddie Lopez-Lopez.
The case was investigated by the Public Corruption Task Force, 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.
Alabama Man Sentenced to 24 Months in Prison for Copyright ViolationRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Johnson Augustus Powell, 54, of Huntsville, Ala., was sentenced by U.S. District Judge Richard T. Haik to 24 months in prison and three years of supervised release for copyright infringement. He was also ordered to pay $7,500 restitution to the Motion Picture Association of America.
According to evidence presented at the guilty plea on November 12, 2013, Louisiana State Police stopped Powell’s vehicle August 10, 2011, on Interstate 10. During a search of the vehicle, State Police found 1,463 counterfeit DVD movies and 1,225 counterfeit music CDs. Powell surrendered the illegal materials and admitted that he was selling them for profit.
On November 30, 2011, a Calcasieu Parish Anti-Drug Team officer stopped Powell’s vehicle on Interstate 10 for a routine traffic violation. After a vehicle search, officers found 1,085 counterfeit DVD movies and 836 counterfeit music CDs. Powell again admitted to making the illegal materials for profit. In January 2012, Powell turned over computer programs and equipment he used to counterfeit the media. On April 4, 2012, a Calcasieu Parish Anti-Drug Team officer again stopped Powell on Interstate 10, and after a search of the vehicle, found 511 counterfeit DVD movies and 423 counterfeit music CDs.
The Louisiana State Police, Calcasieu Parish Anti-Drug Team, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Brett L. Grayson prosecuted the case.
Akron Man Arrested for Importing Bath Salts from ChinaRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Rodney Howard, 45, of Akron, N.Y., was arrested and charged by criminal complaint with importing, conspiracy to import, and smuggling into the United States, alpha-PVP, a synthetic drug also commonly known as “bath salts.” The charges carry a maximum sentence of 20 years in prison and a $1,000,000 fine.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the complaint, a quantity of bath salts were ordered over the Internet from China and addressed to a third party at the defendant’s residence in Akron. On April 15, 2014, Howard arrived at the United States Post Office in Akron and picked up the package, which contained 14 ounces of alpha-PVP. Special Agents from Homeland Security Investigations then arrested the defendant.
The defendant made an initial appearance on April 16, 2014 before U.S. Magistrate Judge Hugh B. Scott. Howard was released on bond and is due back in court for a preliminary hearing on May 7, 2014 at 2:00 p.m.
The criminal complaint is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, and Special Agents of the U.S. Postal Inspection Service, Boston Division, under the direction of Acting Inspector in Charge, Shelly A. Binkowski.