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4 June 2014
Houston Man Sentenced for Drug Trafficking Conviction in Liberty CountyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 51-year-old Houston man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Tomas Alonso Moreno pleaded guilty on Jan. 14, 2014 to possession with intent to distribute cocaine and was sentenced to 30 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 22, 2013, Moreno was stopped in Liberty County, Texas for a defective brake light. Moreno appeared nervous and was driving while his license was suspended. He consented to a search of the vehicle after denying that he was carrying anything illegal. As officers prepared to search the vehicle, Moreno confessed to having cocaine in the center console. Officers located the cocaine and arrested Moreno. A federal grand jury returned an indictment on Nov. 6, 2013, charging Moreno with drug trafficking violations.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Liberty County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
#######Guilty Plea to A Conspiracy to Bribe A U.S. Air Force Contract AdministratorRead the Press Release
SACRAMENTO, Calif. — Lida Amin, 40, of Dubai, United Arab Emirates, and Dublin, Calif., pleaded guilty today to conspiring to bribe a public official in furtherance of an ongoing effort to secure government contracts through graft, United States Attorney Benjamin B. Wagner announced.
On August 8, 2013, a federal grand jury charged Lida Amin and her brother Nabil Amin with conspiring to bribe a public official in exchange for a military contract to supply medical clothing and linens that were to be shipped to Afghanistan via Travis Air Force Base. Lida Amin was also charged with three counts of using interstate commerce facilities to aid in her bribery activities: one of those counts is for transportation of goods on Interstate 80 and two of the counts are for using Internet-based email to communicate with officials at Travis Air Force Base.
According to the plea agreement, from 2007 to 2010, Lida Amin engaged in a related scheme for which she is facing federal charges in Texas. In that scheme she conspired to bribe a member of the U.S. Air Force who was serving in Afghanistan as a contracting officer. He awarded contracts to the conspirators in exchange for the promise of $30,000. In 2008, the contracting officer was paid $18,000, but the remaining $12,000 was still owed.
The charges to which Amin pleaded guilty today relate to a second round of contacts with the same contracting officer. In June 2012, he was working for the U.S. government as a civilian acquisition analyst (or contract administrator) in Afghanistan and contacted Lida Amin to see if she was interested in working with government contracts again. Lida Amin replied that she was and agreed to meet in Budapest, Hungary to talk. The scheme involved the contract administrator assisting Lida Amin to obtain as many new government contracts as possible. In exchange, she promised to make bribe payments to the contract administrator.
In September 2012, Lida Amin met with the contract administrator in Budapest. They discussed two upcoming contracts, the manner and amount of the bribe, and in addition to that amount, Lida Amin would pay him an extra $12,000 to cover the debt that he was owed from 2008. Lida Amin and the contract administrator arranged a means to communicate covertly about the government contract bidding process.
Lida Amin established companies and bank accounts in Afghanistan to receive the proceeds from government contracts. In July 2013, Lida Amin, using the alias “Sabrina Samir” and acting through one of her companies, Striker Logistics, shipped contract goods, including medical clothing and linens, to Travis Air Force Base.
On August 28, 2013, Lida Amin was arrested in Prague after she traveled there to meet with the contract administrator.
This case is the product of an investigation by the U.S. Federal Bureau of Investigation, the U.S. Drug Enforcement Administration, and the Fremont Police Department. Assistance was provided by the U.S. Department of Justice, Office of International Affairs and the Czech National Police. Assistant United States Attorney Michael M. Beckwith is prosecuting this case and the case in Texas.
Nabil Amin is scheduled for a status conference in Sacramento on July 9, 2014. The charge against him is only an allegation; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. On June 17, 2014, Lida Amin is scheduled to plead guilty to the charges brought in the Northern District of Texas for the earlier bribery scheme. That hearing will be held in the federal courthouse in Dallas.
Amin is scheduled to be sentenced by United States District Kimberly J. Mueller on September 3, 2014. The plea agreement under which she entered her plea is subject to the approval of Judge Mueller. If the agreement is accepted, Amin’s actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The public is encouraged to report instances of public corruption and government fraud to the FBI by calling toll free 855-4NO-PCGF (855-466-7243).
Guilty Plea Entered in Department of Labor Fraud CaseRead the Press Release
KNOXVILLE, Tenn. – On June 4, 2014, Ronald T. Wolfenbarger, 46, of Knoxville, Tenn., pleaded guilty to a one-count information charging him with theft of government funds. Sentencing for is set for 10:00 a.m. Oct. 6, 2014. He faces up to 10 years in prison, a fine of $250,000, and up to three years of supervised release upon their release from prison.
According to the plea agreement on file with the U.S. District Court, Eastern District of Tennessee, Wolfenbarger received unemployment benefits from the State of Tennessee unemployment program. These unemployment benefits were supplemented with federal funds through the American Recovery and Reinvestment Act of 2009, which authorized 100 percent federal funding for unemployment benefits that he qualified for and received. An internal audit determined that he was overpaid unemployment benefits after failing to report employment and earnings from his employer, violating the policies and procedures for receiving unemployment benefits. In his plea agreement, Wolfenbarger admitted to obtaining unemployment insurance benefits to which he was unentitled.
Unemployment benefits are designed to assist those who qualify under specific policies and procedures. Unemployment benefits fraud is a serious offense. Individuals who take advantage of this benefit program through theft, fraud, and lies, effectuated by hiding earnings, may be prosecuted and face both terms in prison and fines.
This charge and subsequent guilty plea are the result of an investigation by DOL-Office of Inspector General and Tennessee Department of Labor. Assistant U.S. Attorney Brooklyn Sawyers represents the United States.
Members of the public are reminded that an information constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
Grand Jury Indicts Two Scientists for Obtaining Government Research Contracts by FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Mahmoud Aldissi, a/k/a “Matt,”(62) and Anastassia Bogomolova, a/k/a “Anastasia,” (51), both of Pinellas County, Florida, with conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and falsification of records in a federal investigation. If convicted on all counts, each faces a maximum penalty of 20 years in federal prison. The Indictment also notifies the individuals that, among other specified property, the United States is also seeking a money judgment in the amount of $10,000,000, which reflects the proceeds of the charged criminal conduct.
According to the indictment, through their two companies, Fractal Systems, Inc., and Smart Polymers Research Corp., Aldissi and Bogomolova fraudulently obtained approximately $10,000,000 worth of research contracts from the federal government. It is alleged that from in or about 2004 through in or about May 2014, in order to be awarded contracts, the charged individuals submitted proposals using the stolen identities of real people in order to create false endorsements of and for their proposed contracts. In addition, Aldissi and Bogmolova proposed identity theft victims as consultants and subcontractors without their knowledge and without actually using them on those contracts. It is further alleged that, in the proposals, the defendants also lied about their facilities, costs, about the principal investigator on some of the contracts, and certifications in the proposal.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Defense Criminal Investigative Service (DCIS), National Aeronautics and Space Administration’s Office of the Inspector General (NASA-OIG), the Major Procurement Fraud Unit (MPFU) of the United States Army Criminal Investigation Division (Army CID), National Science Foundation’s Office of the Inspector General (NSF-OIG), the Environmental Protection Agency’s Office of the Inspector General (EPA-OIG), the Department of Energy’s Office of the Inspector General (DOE-OIG), the Department of Health and Human Services’ Office of the Inspector General (HHS-OIG), the Department of Homeland Security’s Office of the Inspector General (DHS-OIG), the Department of Homeland Security (DHS), and the U.S. Marshals Service (USMS). It will be prosecuted by Assistant United States Attorney Thomas N. Palermo.
Fridley Man Sentenced for Transporting A Minor to Engage in ProstitutionRead the Press Release
MINNEAPOLIS— Earlier this week in federal court, a 28-year-old man was sentenced for transporting a minor to engage in prostitution. On June 2, 2014, United States District Court Judge Richard H. Kyle sentenced Napoleon Long, Jr. to 180 months in federal prison on one count of Transportation With Intent to Engage in Prostitution. Long was indicted on April 10, 2013 and pleaded guilty on July 11, 2013.
In his plea agreement, Long admitted that in or about October 2011, he transported a 17- year-old girl from Minnesota to Colorado Springs, Colorado, with the intent that she engage in prostitution. Long also admitted knowing the girl was 17, and that she engaged in at least one sexual act while in Colorado and a pattern of sexual activity while working as a prostitute for him.
United States Attorney Andrew M. Luger stated that his Office was pleased with the sentence in this case. “Those such as this defendant, who profit by using underage girls in commercial sexual activity, will be prosecuted aggressively by this Office.”
This case was the result of an investigation by the Anoka County Sheriff’s Office and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorneys David P. Steinkamp and Manda M. Sertich.
In 2012, Yuri Fedotov, the head of the United Nations’ Office on Drugs and Crime reported to those attending a U.N. General Assembly meeting that an estimated 2.4 million people worldwide are victims of human trafficking at any one time, with 80 percent of them being exploited as sex slaves. He also said approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice reports that an estimated 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.ice.gov/human-trafficking/Former Veterans Affairs Doctor Pleads Guilty to Illegally Prescribing OxycodoneRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Julia Immaculata Lucente, 55 of Dayton pleaded guilty in U.S. District Court to illegally prescribing oxycodone while she was a physician at the Veterans Affairs medical center in Dayton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Gavin McClaren, Resident Agent in Charge, Department of Veterans Affairs Office of Inspector General Criminal Investigations Division (VA-OIG), Timothy Plancon, Assistant Special Agent in Charge, Drug Enforcement Administration (DEA), and Jonathan Blanton, Interim Director, State Medical Board of Ohio announced the plea entered today before U.S. Magistrate Judge Michael J. Newman.
According to court documents, Lucente began her employment as a medical doctor at the Veterans Administration Medical Center (VAMC) in Dayton in 2008. On November 6, 2012, Lucente used her VAMC prescription pad to issue issued a prescription for 72 Oxycodone pills to an individual who was neither a patient of Lucente’s nor a patient at the VAMC. Further, Lucente wrote the prescription without a documented proper medical examination, which is contrary to established medical protocol.
Lucente pleaded guilty to one misdemeanor count of aiding and abetting another to knowingly and intentionally possess a controlled substance.
“Terms of the plea agreement call for Lucente to permanently surrender her Medical and DEA licenses,” U.S. Attorney Stewart said. “She also agreed not to reapply for a medical or DEA license in Ohio or any other state.”
Lucente will serve a period of probation to be determined by the court after the court conducts a pre-sentence investigation. No date has been set for sentencing.
“We will tirelessly pursue any VA employees violating their position of trust.” said Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, Resident Agent in Charge, Cleveland.
“Coordination between agencies is important in these types of complex investigations, DEA Assistant Special Agent in Charge Plancon said. “The DEA values the partnerships we have with Federal, State, and Local agencies in our common goal to combat prescription drug abuse.”
“Criminal prescribers have no place in the medical profession,” SMBO Interim Director Blanton said. Partnerships like this one, where we had the opportunity to work with the outstanding agents out in the field, are an invaluable tool in the Medical Board’s continuing efforts to make sure the physicians Ohioans trust with their health care are ethical, competent, and follow the law.”
U.S. Attorney Stewart commended the cooperative investigation by the VA OIG, the DEA Tactical Diversion Squad, and the State Medical Board of Ohio, as well as Assistant U.S. Attorney Sheila Lafferty, who is prosecuting the case.
# # #Former Orleans Parish Sheriff's Office Vendor and Mississippi Businessman, Kendall O. Marquar, Convicted of Failing to File TaxesRead the Press Release
KENDALL O. MARQUAR, age 36, a resident of Waveland, Mississippi, pled guilty today before U.S. Magistrate Judge Sally Shushan to the one-count Bill of Information charging him with willfully failing to file taxes, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to court documents, from in or around 2000 through in or around 2012, MARQUAR, was a Mississippi businessman and owner of K&D Earthworks, a maintenance and construction vendor at the Orleans Parish Sheriff’s Office (“OPSO”). During the years 2007, 2008, and 2009, MARQUAR and K&D Earthworks earned approximately $580,379 in taxable income, mainly from work performed at the OPSO. As set forth in the factual basis, MARQUAR failed to file taxes during the years 2007 through 2009. As a result, MARQUAR owes the Internal Revenue Service approximately $156,941 in funds based on the unpaid taxes. As part of his plea agreement, MARQUAR has agreed to repay this amount to the Internal Revenue Service.
MARQUAR faces a maximum term of imprisonment of one year, a fine of $100,000, and up to one year supervised release following any term of imprisonment. His sentencing is scheduled for September 9, 2014.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigative Division. The case is being prosecuted by Assistant U. S. Attorney Matt Chester.
(Download Factual Basis )
Former Laredo Customs Broker Sentenced for False Classification of Imported GoodsRead the Press Release
LAREDO, Texas - Alejandro Santos, 34, a former U.S. Customs broker, has been ordered to prison following his convictions related to the smuggling of goods into the country, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Janice Ayala, of Homeland Security Investigations (HSI) in San Antonio. Santos pleaded guilty May 14, 2013, before U.S. Magistrate Judge J. Scott Hacker.
Today, U.S. District Judge George P. Kazen, who later accepted the guilty plea, handed Santos a total sentence of 28 months in federal prison for his three convictions of entry of goods by false classification, smuggling goods into the U.S. and making a false statement to an HSI agent. He was further ordered to pay nearly $140,000 in restitution and will serve three years of supervised release following completion of the prison term.
“As illustrated by this probe, HSI and U.S.Customs and Border Protection import specialists are cracking down on customs fraud, which often involves a substantial loss of revenue for law abiding companies and the government,” said Ayala. “Our focus on trade violations and related criminal activities is crucial to maintaining the integrity of a vital commercial trade.”
Santos was licensed by Customs and Border Protection (CBP) to file entry documents for commercial shipments on behalf of importers. As a result of his conviction, Santos was required to surrender his broker’s license. His responsibilities included generating entry packages, describing, classifying and valuating shipments for importation into the U.S. and submitting appropriate payments to CBP on behalf of his clients for any duties, taxes and fees owed, if any.
Santos used a scheme to defraud the government by falsifying the country of origin on goods imported into the United States. The falsification allowed him to benefit from the North American Free Trade Agreement preferential treatment program, resulting in zero duties and taxes owed. In truth, duties and taxes should have been paid to the U.S. Santos would then collect money from his clients to cover the correct amount of duties and taxes that should have been paid to CBP. Santos then failed to turn over the money to CBP, keeping the monies for himself.
Santos admitted to importing various goods into the U.S. made in India and Italy, while falsely claiming the goods were made in Mexico. He would then collect money from his clients (importers of record) and keep the money.
Santos was permitted to remain on bond but is required to surrender no later than June 9, 2014, to begin his sentence with a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by HSI. Assistant U.S. Attorney (AUSA) Roberto Ramirez and former AUSA Roel Canales prosecuted the case. AUSA Homero Ramirez handled the sentencing today.
Former KC Man Pleads Guilty to Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., resident pleaded guilty in federal court today to charges related to producing child pornography.
Paul Leslie Kannarr, 59, formerly of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to all 10 counts of a May 21, 2013, federal indictment.
By pleading guilty today, Kannarr admitted that he used a minor, identified as “Jane Doe,” to produce child pornography on six separate occasions between Dec. 19, 1999 and Sept. 23, 2000.
Kannarr also pleaded guilty to two counts of posting a notice online that offers to display or distribute child pornography, one count of transporting child pornography over the Internet and one count of possessing child pornography.
Under federal statutes, Kannarr is subject to a mandatory minimum sentence of 10 years in federal prison without parole on each of the six production counts and the two advertising counts, up to a sentence of 180 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Kansas City, Mo., Police Department and the FBI Cyber Crimes Task Force.
Project Safe Childhood
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."Former Fugitive Member of A Pickpocket Crew Sentenced to More Prison Time for Failing to Surrender to Serve Her SentenceRead the Press Release
Destroyed Electronic Monitoring Equipment When She Fled
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Crystal Barner, age 28, of Baltimore, today to 14 months in prison for failing to report to serve her sentence in a previous case. Judge Garbis ordered that today’s sentence be served consecutive to Barner’s 33 month sentence in that case.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; U.S. Marshal Johnny Hughes; Special Agent in Charge Brian Murphy of the United States Secret Service – Baltimore Field Office; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to the facts presented at her plea hearing, on December 5, 2013, Barner was sentenced to 33 months incarceration (after credit for time served) and ordered to surrender to serve her sentence on January 6, 2014. This was memorialized in a Judgment entered on December 9, 2013, which stated that Barner should report to the institution designated by the Bureau of Prisons at the date and time specified in a written notice that would be sent to her. If she did not receive such a written notice, Barner was ordered to surrender to the United States Marshal before 2 p.m. on Monday, January 6, 2014.After the sentencing hearing, Barner was required to go to the Marshals Service to verify her residence. Barner falsely verified her address, although she had moved from that address several months earlier. As a result, Barner did not receive the written notice of where she was supposed to self-surrender to the Bureau of Prisons, nor did she comply with the Court’s Judgment by surrendering to the United States Marshall before 2 p.m. on Monday, January 6, 2014.
When she failed to surrender, Barner was contacted by her Pre-trial Services officer, and told him she would self-surrender. During a subsequent telephone conversation, she told him she was in the area looking for parking. In fact, Barner had absconded from supervision and removed and discarded or destroyed her electronic monitoring equipment.
Barner was previously convicted for her role in a scheme to defraud financial institutions by stealing credit cards from the wallets and purses of unsuspecting individuals, then using the stolen credit cards to make purchases. During the course of the conspiracy, Barner and others obtained goods, services and extensions of credit in the amount of $142,717.61, and caused losses to or used the identities of between 10 and 50 financial institutions, businesses and individuals.
United States Attorney Rod J. Rosenstein thanked the U.S. Marshal Service, who apprehended Barner after she fled. Mr. Rosenstein also recognized the U.S. Secret Service, Maryland Transportation Authority Police, Baltimore County Police Department, Baltimore City Police Department, and Atlantic City, New Jersey Police Department for their work in the previous investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Former Chief Financial Officer Pleads Guilty in White Plains Federal Court to Embezzling $5.7 Million and Evading Income TaxesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that GREGG PIERLEONI pleaded guilty to fraud and tax evasion charges arising from his embezzlement of more than $5.7 million from his employer. PIERLEONI pleaded guilty to one count of mail fraud and one count of tax evasion today in White Plains federal court before U.S. District Judge Vincent L. Briccetti, who set a sentencing date for September 18, 2014.
U.S. Attorney Preet Bharara stated: “Gregg Pierleoni indulged in an opulent lifestyle, at the expense of his employer and the American taxpayer. With his guilty plea today, he will now have to pay for that decision.”
According to the allegations in court documents filed in White Plains federal court:
PIERLEONI was the Chief Financial Officer (“CFO”) of a privately held moving and storage company that maintained its headquarters in Westchester County. As CFO, Pierleoni was authorized to write checks drawn on, and transfer funds from, bank accounts held by the moving company and a related entity. From about October 2006 to about April 2013, PIERLEONI paid more than $5.7 million in personal expenses with the moving company's funds. These personal expenses included collectible items, sports memorabilia, airline tickets and other travel expenses, artwork, tickets to sporting events, and meals in restaurants.
PIERLEONI also failed to report the $5.7 million he embezzled from the moving company as income on his personal tax returns for 2007 through 2011 and failed to file a U.S. Individual Income Tax Return Form 1040 for 2012. The resulting loss to the Internal Revenue Service was more than $1.4 million.
PIERLEONI, 59, of New Fairfield, CT, faces sentences of 25 years’ imprisonment on the mail fraud and wire fraud counts. The maximum statutory sentences are prescribed by Congress and provided here for informational purposes, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the criminal prosecution.
U.S. v. Gregg Pierleoni Superseding Information
Former Army National Guard Soldier Pleads Guilty to Bribery and Defrauding the U.S. Army National Guard BureauRead the Press Release
A former soldier in the U.S. Army National Guard pleaded guilty to bribery and fraud on the U.S. Army National Guard Bureau, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Former Specialist Christopher Renfro, 26, of Houston, Texas pleaded guilty today to two counts of wire fraud and one count of aggravated identity theft. Previously, on March 24, 2014, Renfro pleaded guilty to one count of conspiracy and one count of bribery in connection with the same scheme.
According to court documents, former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 23 of whom have pleaded guilty.
According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $2,000 in bonus payments for referring another individual to join the Army National Guard. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Renfro admitted that between approximately February 2008 and August 2011, he paid former Sergeant First Class Michael Rambaran for the personal identifying information of potential Army National Guard soldiers. Renfro further admitted that he used the personal information for these potential soldiers to obtain fraudulent bonuses by falsely claiming that he was responsible for referring these soldiers to join the Army National Guard.
Renfro is scheduled to be sentenced on Jan. 9, 2015 before U.S. District Judge Lee H. Rosenthal of the Southern District of Texas.
Rambaran pleaded guilty on March 25, 2014 to one count of conspiracy, one count of bribery, and one count of aggravated identity theft. He is scheduled to be sentenced on Jan. 9, 2015 before U.S. District Judge Rosenthal in Houston.
This case is being investigated by the San Antonio Fraud Resident Agency of Army CID’s Major Procurement Fraud Unit. This case is being prosecuted by Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch, and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.Former Army National Guard Soldier Pleads Guilty to Bribery and Defrauding U.S. Army National Guard BureauRead the Press Release
To Date, 23 Individuals Have Pleaded Guilty in Ongoing Corruption Investigation
WASHINGTON – A former soldier in the U.S. Army National Guard pleaded guilty to bribery and fraud on the U.S. Army National Guard Bureau, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. .
Former Specialist Christopher Renfro, 26, of Houston, pleaded guilty today to two counts of wire fraud and one count of aggravated identity theft. Previously, on March 24, 2014, Renfro pleaded guilty to one count of conspiracy and one count of bribery in connection with the same scheme.
According to court documents, former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 23 of whom have pleaded guilty.
According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $2,000 in bonus payments for referring another individual to join the Army National Guard. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Renfro admitted that between approximately February 2008 and August 2011, he paid former Sergeant First Class Michael Rambaran for the personal identifying information of potential Army National Guard soldiers. Renfro further admitted he used the personal information for these potential soldiers to obtain fraudulent bonuses by falsely claiming he was responsible for referring these soldiers to join the Army National Guard.
With Renfro’s plea, five individuals have now been convicted in connection with this particular charge, including Rambaran, who also pleaded guilty to one count of aggravated identity theft. Renfro, Rambaran and the others will all be sentenced Jan. 9, 2015, before U.S. District Judge Lee H. Rosenthal in Houston.
The cases are being investigated by the San Antonio Fraud Resident Agency of U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. This case is being prosecuted by Assistant U.S. Attorney John Pearson and Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.
Food Stamp Fraud Charges Announced Against Cincinnati Market OwnerRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO– A federal grand jury has indicted Moustaphe Toure, 54, of Cincinnati, charging him with illegally exchanging “food stamp” cards for cash and other ineligible items including a firearm.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Derrick Hurst, Acting Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA), Mark Porter, Special Agent in Charge, U.S. Secret Service, and John Born, Director, Ohio Department of Public Safety announced the indictment today after Toure was arraigned in U.S. District Court. The indictment was returned on May 27, 2014.
According to the indictment, Toure owned and operated a retail store known as Quick Stop Convenience Store and Sarah Carryout. The indictment charges him with 20 counts of unauthorized use and possession of federal food stamp access devices, each of which is punishable by up to five years in prison. Toure is also charged with 23 counts of wire fraud for using the illegally acquired cards to access the balances on the cards. Each count is punishable by up to 30 years in prison. The indictment also charges Toure with one count of being an illegal alien in possession of a firearm, a crime punishable by up to ten years in prison.
Toure appeared before U.S. Magistrate Judge Michael J. Newman and entered pleas of not guilty. U.S. District Judge Timothy S. Black will schedule a trial for Toure, who was arrested on May 7 and is being held without bond.
The Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program is a federally funded national nutrition assistance program jointly administered by the United States Department of Agriculture (USDA), the Food and Nutrition Service (FNS) and individual state agencies. In Ohio, this program is administered by the Ohio Department of Job and Family Services. Allegations of fraud in the system are investigated on the federal level by the USDA Office of Inspector General and on the state level by the Ohio Investigative Unit in the Ohio Department of Public Safety.Stewart commended the cooperative investigation between agents of the USDA Inspector General, Secret Service, and the Ohio Investigative Unit, and Assistant U.S. Attorney Dwight Keller, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
###Federal Jury Convicts Man of String of Armed Robberies of Las Vegas Convenience Stores During 2013Read the Press Release
LAS VEGAS, Nev. – Following an 11-day federal jury trial, a man accused of robbing 13 convenience stores and a small casino in the Las Vegas area during 2013, was convicted today of all counts charged, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Abdul Howard, 48, of Las Vegas, was convicted of one count of felon in possession of a firearm, 14 counts of interference with commerce by robbery, and 12 counts of possession of a firearm during, in relation to, and in furtherance of a crime of violence. Howard is scheduled to be sentenced by U.S. District Judge Gloria M. Navarro on Nov. 6, 2014, at 9:00 a.m., and faces mandatory life in prison.
“Violent criminals such as Abdul Howard are a threat and danger to the entire community,” said U.S. Attorney Bogden. “We are pleased to be able to assist local law enforcement and use federal laws in these types of cases, which carry stiff mandatory minimum penalties and ensure that career criminals such as Mr. Howard are incarcerated for very long periods of time.”
According to the court records and evidence introduced at trial, Howard robbed 13 convenience stores and one casino in the Las Vegas area between Jan. 15, 2013, and April 16, 2013. Howard robbed most of the businesses late at night using a semi-automatic handgun which he used to threatened store employees and some customers. In some of the robberies, Howard pointed the handgun at an employee or stuck a gun into the employee’s body or head. In one instance, Howard fired a handgun at an employee, and in another, Howard shot an employee in the neck. Investigators dubbed Howard the “Cinched Hoodie Robber,” because he typically entered the businesses wearing a hooded sweatshirt with the hood “cinched” up around his face in an effort to conceal his identity.Howard has at least five prior felony convictions in New York, Florida, and Nevada related to robbery, burglary, cocaine distribution and sexually motivated coercion.
This case was investigated by the FBI, Las Vegas Metropolitan Police Department Robbery Section, and North Las Vegas Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program, and prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Cristina D. Silva.Eagle Butte Man Sentenced for Assaulting, Resisting and Impeding Federal Officers and Discharge of A Firearm During A Crime of ViolenceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Assaulting, Resisting and Impeding Federal Officers and Discharge of a Firearm During a Crime of Violence was sentenced on June 3, 2014, by U.S. District Judge Roberto A. Lange.
Jason Todd Garreau, age 28, was sentenced to 20 years in custody, 5 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund. The 20-year sentence was ordered to be served consecutively to a 25-year sentence that was handed down last week in State Court for Attempted Murder, to which Garreau had previously pled guilty.
Garreau was indicted by a federal grand jury on November 5, 2013. He pled guilty on March 5, 2014.
The conviction stems from a standoff Garreau had with law enforcement on October 31, 2013, at a Pierre residence. The standoff followed a high speed chase that ensued on October 30, 2013, when law enforcement attempted to serve an arrest warrant on an individual. When the individual’s car was located, police discovered it was being driven by Garreau. Police attempted to execute a traffic stop on the vehicle, but Garreau then led police on a high speed chase, which was aborted on east Highway 34.
The Bureau of Indian Affairs soon discovered the vehicle on the Crow Creek Reservation, and a new pursuit ensued. While in pursuit, Garreau made multiple phone calls to his cousin, who came to aid Garreau in the pursuit and the cousin opened fire on law enforcement, which allowed Garreau to flee the scene. The next day, Garreau was located at a residence in Pierre, and a SWAT team was called in to assist in the apprehension. When the SWAT team entered the residence, Garreau fired multiple shots from a Benelli shotgun and a Hi-Point handgun, injuring two police officers. Garreau surrendered and was taken into custody.
The investigation was conducted by the Federal Bureau of Investigation, with assistance from the U.S. Marshals Service, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, Hughes County Sheriff’s Office, and the Pierre Police Department. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Garreau was immediately turned over to the custody of the U.S. Marshals Service.
Drug Trafficker Sentenced 17.5 Years in PrisonRead the Press Release
Trafficker’s Wife Receives A Two And A Half Year Sentence For Laundering Drug Proceeds
STATESVILLE, N.C. – Manuel Ocampo, Jr., 39, of Anaheim, Calif., was sentenced today to 210 months in prison for his role as a supplier of methamphetamine, cocaine, heroin, marijuana and other narcotics, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, U.S. District Judge Richard L. Voorhees ordered Ocampo to serve five years of supervised release. Judge Voorhees also sentenced today Manuel Ocampo’s wife, Yulisma Ocampo, 37, to 30 months in prison and three years of supervised release, for conspiring to launder the proceeds of drug trafficking.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas; Greg McLeod, Director of the State Bureau of Investigation (NC SBI); Chief Tom Adkins of the Hickory Police Department and Sheriff Coy Reid of the Catawba County Sheriff’s Office.
According to court documents and proceedings, the drug conspiracy lasted from 2011 to September 18, 2012. During that time, the Ocampos travelled from California to the Hickory, N.C. area to deliver a variety of narcotics, including methamphetamine, cocaine, heroin, and marijuana, among others. On May 4, 2012, law enforcement in Hickory N.C. seized over four pounds of 97% pure methamphetamine, more than one and half pounds of black tar heroin and over two pounds of powder heroin from a hidden compartment in the roof of the Ocampos’ minivan. During Manuel Ocampo’s arrest on that date, Yulisma Ocampo hid her husband’s cell phone and she subsequently picked-up drug proceeds from customers, until she was arrested in July 2012.
Two other conspirators involved in the drug scheme, Joey Carroll and Peter Anthony Sanders, were previously sentenced. Carroll was sentenced to 113 months in prison and five years of supervised release. Sanders was sentenced to 36 months in prison and four years of supervised release.
Both Manuel and Yulisma Ocampo will remain in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
This investigation into the case was led by HSI and SBI, with the assistance of several other law enforcement agencies, to include the Hickory Police Department and the Catawba County Sheriff’s Office. The prosecution for the government is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Department of Justice and Federal Trade Commission Announce Agenda for June 23, 2014, Joint Agency Workshop on Conditional Pricing PracticesRead the Press Release
The Department of Justice and the Federal Trade Commission (FTC) have issued the agenda for their joint public workshop, which will be held on June 23, 2014, to explore the economic and legal analysis of conditional pricing practices among firms in a supply chain. Announced in early May, the workshop will focus on conditional pricing arrangements – practices in which prices are explicitly or effectively contingent on commitments to purchase or sell a specified share or volume of a single product or a mix of multiple products – such as loyalty or bundled pricing.
A principal goal of the workshop will be to advance the economic understanding of the potential harms and benefits of conditional pricing practices and to reexamine their treatment under the antitrust laws. As detailed in the press release first announcing the event, participants will focus primarily on: 1) Economic Learning, and 2) Law and Policy Issues related to conditional pricing practices.
The Department of Justice and the FTC are interested in receiving comments on conditional pricing practices, and will accept written submissions from the public from now through Aug. 22, 2014, 60 days after the event. Interested parties may submit public comments online. Submitted comments will be made publicly available on the Department of Justice and FTC websites.
The all-day workshop is free and open to the public. Individuals are encouraged, but not required, to register in advance for the workshop by sending an email to [email protected], Please include “RSVP” in the subject line. Seating will be on a first-come, first-serve basis. It will take place at the FTC’s new satellite conference center, Constitution Center, 400 Seventh Street, SW, Washington, DC 20024.
Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted by e-mail to [email protected] , or by calling Lara Kittelson at 202-326-3388. Requests should be made in advance. Please include a detailed description of the accommodation needed and provide contact information.Criminal Immigration Charges Brought Against Two Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that charges in two unrelated cases were brought yesterday against the following persons by a federal grand jury in Scranton.
Jose Efrain Martinez-Aguilar, a/k/a Carlos Oreana Benitez, age 48, a native and citizen of Honduras in the United States illegally, was charged in a one-count indictment alleging that Martinez-Aguilar, an alien previously arrested and deported, knowingly and unlawfully reentered the United States after having been convicted of an aggravated felony involving the trafficking of controlled substances.
If convicted, Martinez-Aguilar, faces imprisonment of up to 20 years and a fine in the amount of $250,000.Arturo Leal-Calderone, age 36, a native and citizen of Mexico in the United States illegally, was charged in a one-count indictment alleging that Leal-Calderone, an alien previously arrested and deported, knowingly and unlawfully reentered the United States on or before April 17, 2014, at an unknown place.
If convicted, Leal-Calderone faces a term of imprisonment of up to two years of imprisonment.
The investigations were conducted by U.S. Immigration and Customs Enforcement (ICE) and Removal Operations (ERO) Philadelphia. The cases are being prosecuted by Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Convicted Bank Robber, on the Run for nearly 5 Years, Arrested in OregonRead the Press Release
A convicted bank robber who absconded from supervised release, was arrested in Hillsboro, Oregon, Monday June 2, 2014, after being on the run for nearly five years, announced U.S. Attorney Jenny A. Durkan. BRADLEY STEVEN ROBINETT, 45, fled following a car chase on Bainbridge Island, Washington, in September 2009. The last time law enforcement saw ROBINETT was in November of 2009, when Washington State Patrol detectives encountered ROBINETT at a park & ride facility in Bellevue. At the time, ROBINETT was operating a stolen vehicle. ROBINETT attempted to ram a WSP vehicle before fleeing the area. The WSP trooper driving the vehicle managed to avoid the collision, but ROBINETT was able to escape.
ROBINETT is wanted in the Western District of Washington on an indictment for escape, being a felon in possession of a firearm and interstate transportation of a stolen vehicle. ROBINETT remains in custody in Oregon.
According to the indictment and other court filings, ROBINETT was convicted of bank robbery and in 2004 was sentenced to seven years in prison. In August 2009 he was released from a federal prison in Arizona and put on a bus to Seattle with the requirement that he was to report to a designated halfway house within 48 hours. ROBINETT never reported to the halfway house and a warrant was issued for him for escape. In September 2009, police on Bainbridge Island, Washington attempted to stop a car that led them on a high speed chase. ROBINETT fled from the car and got away. Inside the car officers found a Glock 9mm pistol and a ballistic vest. Both items were stolen from the Seattle Police Department several years earlier. The vehicle ROBINETT was driving was also reported stolen in Oregon.
ROBINETT was indicted for being a felon in possession of a firearm for the gun found in the car. In addition to his bank robbery conviction, he has prior felony convictions for possession of stolen property (King County and Clallam County), unlawful possession of a machine gun, car theft and burglary (King County).
In 2011, ROBINETT was featured on the programs Washington’s Most Wanted and America’s Most Wanted.
On Monday afternoon Hillsboro police were patrolling the Fred Meyer parking lot with an automated license plate reader. Plate readers match license plates to those of stolen cars that have been entered into the system’s database. The reader noted a Kia with plates stolen in Portland while the car was reported stolen in King County, Washington. The police officers waited for the driver to return to the vehicle. They arrested ROBINETT without incident.
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) has led the search for ROBINETT’ along with the FBI, the U.S. Marshals Service, the Bainbridge Island PD, and the Hillsboro, Oregon Police Department.
The case is being prosecuted by Assistant United States Attorney Mike Dion.
Conspiracy Charge Filed <br /> Against Former Convergex TraderRead the Press Release
A former trader for ConvergEx Global Markets Limited (CGM Limited) — a former securities broker-dealer registered in Bermuda — has been charged in the District of New Jersey with conspiracy to commit wire fraud.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Inspector in Charge Philip R. Bartlett from the U.S. Postal Inspection Service (USPIS) made the announcement.
Craig Marshall, 47, of Bermuda, was charged under seal by criminal complaint on May 27, 2014, and he made his initial appearance this morning.
On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, and CGM Limited all pleaded guilty to conspiracy to commit securities and wire fraud before U.S. District Judge Jose Linares in the District of New Jersey. On the same day, CGM Limited’s parent company, ConvergEx Group LLC, entered into a deferred prosecution agreement. Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.
According to the charges, certain ConvergEx Group broker-dealers regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders. ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”
Also according to charges, to hide the fact that spread had been taken on trades, Marshall, Daspin, Lekargeren, and other employees at ConvergEx Group subsidiaries in Bermuda, New York and London created and sent false transaction reports to clients with fabricated details regarding the execution of orders, including the number of shares involved in a trade, the time at which a trade was executed and the price at which shares were either purchased or sold. After sending certain clients these false reports, the conspirators took a total of $5,171,394 in spread from them.
The charges allege that Marshall, along with Daspin and other conspirators, created and sent a false transaction report to a client on or around June 25, 2007, and created and sent an additional false transaction report to another client on Aug. 11, 2009.
The charges in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Washington Field Office and the Washington, D.C., and New York offices of the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorneys Justin Goodyear, Jason Linder and Patrick Pericak of the Criminal Division’s Fraud Section. Fraud Section Assistant Chief Robert Zink and former Trial Attorney Charles Reed also assisted with the investigation.
The department appreciates the assistance of the U.S. Securities and Exchange Commission and the United States Attorney’s Office for the District of New Jersey.Columbia Man Sentenced to 15 Years in Prison for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man was sentenced in federal court for illegally possessing a firearm that he used to threaten another person.
Robert Earl Foster, 50, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, June 3, 2014, to 15 years and eight months in federal prison without parole. Foster was sentenced as an armed career criminal due to his prior felony convictions for serious drug offenses and violent crimes.
On Feb. 5, 2013, Foster pleaded guilty to being a felon in possession of a firearm. Foster admitted that he was in possession of a loaded Mauser 6.35mm semi-automatic pistol.
Foster was arrested by Columbia, Mo., police officers who responded to a report on June 26, 2011, that he had threatened a woman with a gun. While searching for Foster, officers were told that a neighbor saw him running through her back yard. Foster was located but ignored officers’ commands to get on the ground and continued walking. Foster continued to ignore multiple commands to show his hands and get on the ground until an officer took him to the ground by force. The loaded pistol was found directly underneath Foster.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Foster has felony convictions for possession of a controlled substance, distribution of a controlled substance, unlawful use of a weapon, robbery and assault.
This case was prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
California Sub-Contractor Consultant Pleads Guilty to Fraud Involving Boeing ContractsRead the Press Release
St. Louis, MO – ROBERT DIAZ JR., a consultant to a Boeing sub-contractor, pled guilty to fraud charges in connection with a bribery/kickback scheme involving Boeing military aircraft parts during May 2011 through April 2013.
Boeing Company Defense Space and Security Division is a defense contractor providing military-style aircraft to the United States Department of Defense and the United States armed services with offices and procurement operations located in St. Louis. Deon Anderson was a Procurement Officer for Boeing, residing in the St. Louis area.
J. L. Manufacturing, of Everett, Washington, is an aerospace job machine shop specializing in hard metals, with the capability of producing small to medium-sized complex parts of ferrous and non-ferrous materials, and was a sub-contractor to Boeing on numerous United States government contracts. Jeffrey Lavelle, owner and operator of J. L. Manufacturing, directed the day-to-day operations of the company and oversaw all financial aspects of the company.Inland Empire and Associates, Inc., Las Vegas, Nevada, is engaged in consulting to defense aircraft manufacturers and parts suppliers, including consulting for J. L. Manufacturing. Robert Diaz, Jr. was the owner and operator of Inland Empire, and personally consulted to J. L. Manufacturing and Jeffrey Lavelle relative to numerous Boeing sub-contracts.
According to the court documents, beginning in May 2011 and continuing through April 2013, Deon Anderson provided J.L. Manufacturing, through Lavelle and Diaz, non-public competitor bid information and historical price information in connection with one and more Boeing military aircraft part purchase order requests for quotes. Lavelle used that information in preparing and submitting bids on behalf of J.L. Manufacturing to Boeing for approximately nine different Boeing requests for quotes relative to those various purchase orders. Of the those nine, J.L. Manufacturing was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of orders totaled approximately $2,052,746. Diaz’s scheme went from May 2011 through April 2013. In exchange for that information they made cash payments to Anderson in St. Louis and in California.
Robert Diaz, Jr., Alta Loma, CA, pled guilty to two felony counts of mail fraud and one felony count of wire fraud before United States District Judge Henry Autrey, in St. Louis. Sentencing has been are set for September 2, 2014.
Co-defendant William P. Boozer, Hacienda Heights, California, pled guilty to related charges in May and is scheduled for sentencing August 15, 2014.
Co-defendants Deon Anderson, St. Louis; and Jeffrey Lavelle, Mukilteo, WA; are facing related charges and are presumed innocent until and unless proven guilty.
Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service and Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
California Man Sentenced to More Than 5 Years in Prison for Distributing MethRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHAD McCLUSKEY, 44, of San Clemente, Calif., was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 65 months of imprisonment, followed by five years of supervised release, for his role in a meth distribution ring.
According to court documents and statements made in court, this matter stems from a joint investigation by the Drug Enforcement Administration and the Connecticut State Police’s Statewide Narcotics Task Force. The investigation, which included the use of court-authorized wiretaps, controlled purchases of meth, physical surveillance and the use of an undercover officer, revealed that McCLUSKEY and his girlfriend, Kristen Laschober, sent shipments of meth to Kevin Wallin of Waterbury over the course of approximately four years. After receiving the shipments of meth, Wallin distributed the drug to other dealers and sold it to his own customers. Some of the shipments were sent on consignment with the understanding that Wallin would pay McCLUSKEY and Laschober with proceeds generated from his distribution of the drug.
For a time during the conspiracy, McCLUSKEY and Laschober supplied Wallin with between one and three pounds of meth on a monthly basis.
McCLUSKEY and Laschober were arrested in Las Vegas, Nev., on January 10, 2013. On April 18, 2013, they each pleaded guilty to one count of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine (“meth”).
Wallin was arrested on January 3, 2013. On April 2, 2013, he pleaded guilty to the same charge.
Laschober and Wallin await sentencing.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and H. Gordon Hall.
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(203) 821-3722 [email protected]Business Owner Sentenced for Scheme to Steal $1.3 Million from State FundRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Missouri business owner was sentenced in federal court for a scheme to embezzle more than $1.3 million from the Missouri Petroleum Storage Tank Insurance Fund.
Robert L. Fine, II, 52, of Lenexa, Kan., was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, June 3, 2014, to two years and six months in federal prison without parole. The court also ordered Fine to pay a $50,000 fine in addition to $1,505,514 in restitution that Fine previously paid to the Petroleum Storage Tank Insurance Fund, which includes the total amount of the fraud and related costs.
On Nov. 12, 2013, Fine pleaded guilty to one count of mail fraud and one count of money laundering.
Fine was the owner and sole employee of FINEnvironmental, Inc., a Missouri corporation that he operated from an office in his residence. FINEnvironmental performed environmental services for property owners who used or operated a petroleum storage tank.
In 1989, the Missouri General Assembly created the Petroleum Storage Tank Insurance Fund (PSTIF) in response to federal legislation requiring owners and operators of underground storage tanks to have the financial resources available to pay for cleanup of spills or leaks from their tanks. The PSTIF was funded by a fee assessed to petroleum companies on each load of petroleum that is transported into Missouri and by annual fees charged to the owners and operators for insurance coverage.
Fine utilized subcontractors to perform his environmental services, and those subcontractors submitted invoices to Fine for the work they performed. From August 2002 to February 2012, Fine created false invoices purporting to be from one of his subcontractors and inflated the amount of the invoices. Fine mailed the fraudulent invoices to the PSTIF for payment and, over a nearly 10-year period, obtained $924,236 in excess payments from the PSTIF.
Fine also admitted that he obtained additional funds from the PSTIF by fraudulently submitting invoices for an additional groundwater monitoring trip when only one was made, totaling $326,978. The plea agreement cites an additional $66,243 in losses that resulted from Fine’s fraudulent activity.
The total amount of the fraud committed by Fine on the PSTIF is $1,317,469.
This case was prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, IRS-Criminal Investigation, the Missouri State Highway Patrol and the Cole County, Mo., Prosecuting Attorney’s Office and the Missouri Petroleum Storage Tank Insurance Fund.
Boardman Corrections Worker Charged with AbuseRead the Press Release
A federal grand jury returned a one-count indictment charging Nicole White, age 34, of Boardman, Ohio, with sexual abuse of a ward, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about October 2013, White, who was a correctional counselor at the Northeast Ohio Correctional Center, engaged and attempted to engage in sexual acts with a federal inmate at the facility.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the U.S. Department of Justice Office of the Inspector General and the Bureau of Prisons. The case is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bellingham Man Arrested for Wire Fraud Involving Theft from Elderly ClientsRead the Press Release
A long-time tax and financial adviser in Bellingham, Washington was arrested today on a criminal complaint charging him with wire fraud, announced U.S. Attorney Jenny A. Durkan. JEFFREY M. KNUTSEN, 43, owned and operated Bellwether Financial Services dba Bellwether Wealth Management. In July 2005, KNUTSEN was barred by the Financial Industry Regulatory Authority (“FINRA”) from associating with any broker-dealer as a stock broker because of a customer complaint that he had embezzled from his account. Despite being barred, KNUTSON continued to work with clients – many of them elderly – and now is alleged to have stolen more than $250,000 from client accounts.
“The elderly are particularly vulnerable to this type of fraud because some are less familiar with online trading and computer access to accounts,” said U.S. Attorney Jenny A. Durkan. “It is critical that trusted friends or family members assist them in tracking their resources and determining who has access to their accounts, so that they do not fall victim to this type of predatory conduct.”
According to the criminal complaint, after being barred by FINRA, KNUTSEN did not tell his clients that he had been barred, but simply told clients he was moving to a different online brokerage to reduce the fees they would have to pay. He set up online accounts with TD Ameritrade and later E*Trade in his clients’ names and retained full access and control over the accounts, including check-writing privileges. He allegedly told the clients he would charge them a management fee of one percent or less per year to manage their accounts. However, the criminal complaint alleges he embezzled far more than that from customer accounts, taking some $260,000 from as many as 17 victims.
KNUTSEN made his initial appearance in U.S. District Court in Seattle today. Wire fraud is punishable by up to 20 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The Financial Industry Regulatory Authority (“FINRA”) has online resources to allow clients to check on their advisor’s disciplinary history here. The BrokerCheck website is a free tool to help investors research the professional backgrounds of current and former FINRA-registered brokerage firms and brokers, as well as investment adviser firms and representatives.
The case is being investigated by the FBI and Bellingham Police Department.
The case is being prosecuted by Assistant United States Attorneys Steven Masada and Justin Arnold.
Belleville Man Pleads Guilty to Multiple OffensesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on June 4, 2014, Daris A. Quinn, a/k/a “DQ,” 26, Belleville, IL, pled guilty to Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Child Pornography), in violation of Title 18, United States Code, Section 2252(a)(4)(B); Using a Communication Facility to Facilitate a Drug Transaction, in violation of Title 21, United States Code, Section 843(b); and Making a False Statement to a United States Postal Inspector, in violation of Title 18, United States Code, Section 1001(a)(2). Quinn’s sentencing is scheduled for September 19, 2014, in East St. Louis, Illinois. He has been held without bond since his arrest on May 30, 2013.
Possession of Child Pornography carries a term of imprisonment of up to 10 years, a fine up to $250,000, and a term of supervised release of not less than 5 years to life. Using a Communication Facility to Facilitate a Drug Transaction is punishable by a term of imprisonment of not more than 4 years, a fine up to $250,000, or both, and a term of supervised release of not more than 3 years. Making a False Statement to a Postal Inspector is punishable by up to 5 years imprisonment, a fine up to $250,000, or both, and a term of supervised release of not more than 3 years.
The child pornography offense was discovered on October 19, 2011, when Quinn’s cellular telephone was seized during the search of a residence where Quinn was present. A forensic examination of Quinn’s phone revealed videos made by Quinn which depicted a minor performing oral sex on Quinn in both his car and inside the minor’s home. The search of Quinn’s phone also revealed that Quinn had sent text messages between August 19, 2011 and October 10, 2011 to facilitate the distribution of controlled substances between himself and an individual located in Oakland, California.
On February 26, 2013, Quinn made false statements to the United States Postal Inspection Service during its investigation of a package which had been alerted on by a narcotics-sniffing dog and which was later found to contain $23,650 in United States Currency. Quinn, identifying himself by a false name, attempted to claim the package at the post office in Collinsville, Illinois. After initially lying about the contents of the package, Quinn told a Postal Inspector that he was sending the money to a friend so his friend could buy a car. He was then confronted with the search warrant and a photograph of the contents of the package, and attempted to flee from Postal Inspectors.
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 Collinsville Police Department, the United States Postal Inspection Service and the Federal Bureau of Investigation’s Springfield Child Exploitation Task Force. The case was prosecuted by Assistant United States Attorney Angela Scott.
Beckley Woman Pleads Guilty to Distributing HeroinRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Teruko Miller, 29, of Stanaford, West Virginia, pleaded guilty in federal court in Beckley to distributing heroin. Miller admitted that on January 29, 2014, she sold heroin to a person who was cooperating with law enforcement authorities. The drug deal took place on Stanaford Road in Beckley, West Virginia.
Miller faces up to 20 years in prison and a $1,000,000 fine. United States District Judge Irene C. Berger has scheduled Miller’s sentencing hearing for September 18, 2014.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.
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 opiates. 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 in communities across the Southern District.
Baltimore Fraudster Sentenced to over 4 Years in Prison for His Role in Scheme to Defraud Retail StoresRead the Press Release
Stole Merchandise from Retail Stores and Exchanged the Stolen Items for Gift Cards
Baltimore, Maryland – U.S. District Judge George L. Russell III, sentenced Mark Brunelle, age 47, of Baltimore, today to 51 months in prison, followed by three years of supervised release, for a wire fraud conspiracy in connection with a scheme to steal merchandise from large retailers, then return the stolen items to the stores in exchange for gift cards. Judge Russell also ordered Brunelle to pay over $210,000 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea agreement, from January 2009 through February 2013 Brunelle participated in a conspiracy with Melissa Perry, Deanna Lynch and others, known as boosters, to steal merchandise from large retail stores throughout Baltimore, Anne Arundel, Prince George’s, Howard and Harford Counties in Maryland, as well as Virginia, Pennsylvania and Delaware. The boosters then returned the stolen items in exchange for store gift cards. They used modified Maryland driver’s licenses that contained the personal identifier information of actual persons, without those persons’ knowledge, when returning the stolen items without a receipt. For example, throughout the month of February 2012, Brunelle made returns on seven different days totaling over $1,700 to eight different Home Depot stores in Howard, Baltimore, and Prince George’s Counties in Maryland and Falls Church, Alexandria, and Fairfax Counties in Virginia.
Co-conspirator John Tadros, who owned Busy Bees Convenience Mart located at 335 South Monroe Street, and J&J’s Bar and Liquor located at 1801 Ramsay Street, both in Baltimore, bought the fraudulently obtained gift cards from the boosters for 50% of the card’s value. If Tadros was not present or was otherwise occupied, Tadros instructed store manager Mohamed Al-Omeri, or other store employees, to purchase the cards on his behalf.
On February 27, 2013, the U.S. Secret Service executed search warrants and seized 32 fraudulently obtained gift cards from Tadros’ home and 329 retail store receipts for purchases made with fraudulently obtained gift cards from Busy Bee.
The actual loss to retailers in Maryland caused by the scheme is $401,326.12.
John Tadros, age 45, Melissa Perry, age 34; Deanna Lynch, age 44, and Mohamed Al-Omeri, age 39, all of Baltimore, previously pleaded guilty to their participation in the scheme. Tadros is scheduled to be sentenced on July 1, 2014 at 9:30 a.m. Perry and Lynch were sentenced to 30 months and 18 months in prison, respectively, and were ordered to pay restitution of $401,326.12. Al-Omeri was sentence to one year of probation and ordered to pay restitution of $35,000.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service - Baltimore Field Office for its work in the investigation, and commended the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorney Mark W. Crooks, who is prosecuting the case.
Austin Man Sentenced for Harboring Female at Local MotelRead the Press Release
CORPUS CHRISTI, Texas - Jose Gallegos, 47, of Austin, has been ordered to prison for harboring and transporting an undocumented person, announced United States Attorney Kenneth Magidson. Gallegos was convicted by a Corpus Christi federal jury Dec. 10, 2013, following a two-day trial and approximately 45 minutes of deliberation.
Today, U.S. District Judge Nelva Gonzales Ramos, who presided over the trial, handed Gallegos a total 48-month sentence to be immediately followed by three years of supervised release.
On Aug. 17, 2013, Gallegos was caught at the Sarita Border Patrol checkpoint with a scantily-clad 18-year-old female passenger. During trial, the jury heard testimony that she was being smuggled by Gallegos and his associates from Mexico to New Jersey. The young woman provided tearful testimony that she was sexually abused by Gallegos, forced to wear revealing clothing and receive facial piercings. She further testified she was threatened with death if she disobeyed or told anyone.
Gallegos kept the young woman and other undocumented persons being smuggled from Mexico at a Palmview motel for two weeks prior to being arrested at the checkpoint.
The defendant appeared pro se, representing himself in all proceedings and claimed the government was merely attacking him. The jury disagreed and found him guilty as charged.
Gallegos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The matter was investigated by Homeland Security Investigations in conjunction with the U.S. Border Patrol. Assistant United States Attorney Jeffrey D. Preston prosecuted the case.
Armed Drug Trafficker and Alleged Gang Member Sentenced to More Than 14 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Mauricio Mario Baltazar, 21, of Lake City, Ga. was sentenced today to 169 months in prison for his role as a supplier of more than three pounds of methamphetamine, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas.
According to court documents and court proceedings, from 2012 until the time of his arrest in April 2013, Baltazar established an extensive methamphetamine trafficking network that spanned from Georgia to North Carolina and beyond. According to court records, on the day of his arrest, Baltazar was traveling from Georgia transporting approximately 250 grams of methamphetamine (approx. 1,000 dosage units) and was on his way to conduct a drug transaction at a hotel in Boone, N.C. Law enforcement seized the drugs from Baltazar during a traffic stop and Baltazar was arrested. Court records indicate that when law enforcement executed a search warrant at Baltazar’s residence in Georgia, they found a 12-gauge shotgun, a rifle with scope, a ballistic vest, as well as other weapons. Court records indicate that law enforcement also found a cell phone which contained numerous photographs of Baltazar holding an assault rifle, handguns with high-capacity magazines and tactical lights, high-powered rifles and a pump action shotgun. Baltazar also had pictures of bulk currency fanned out with stacks of $100, $50, and $20 bills. According to court records, inside Baltazar’s residence, law enforcement also found “Sur13” gang graffiti consistent with gang-related tattoos on Baltazar’s body. Sur 13, also known as “Sureños” or “Southside,” are loosely affiliated gangs that pay tribute to the Mexican Mafia.
Baltazar will remain in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
This investigation was led by HSI with the assistance of the North Carolina State Bureau of Investigation, the Boone Police Department, the Ashe County Sheriff’s Office and the Caldwell County Sheriff’s Office. The prosecution for the government is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Armed Career Criminal SentencedRead the Press Release
ATLANTA - Demetrius Pullins, who has been convicted multiple times for illegal possession of both firearms and drugs, has been sentenced to 21 years and ten months.
“Pullins’ armed drug dealing had plagued the community for many years,” said United States Attorney Sally Quillian Yates. “Despite three prior felony convictions for drug trafficking spanning two decades, he was unrepentant. This sentence ends Pullins’ ability to sell drugs in our community.”
“This sentence is a direct message to career criminals that law enforcement is observant and will not allow egregious violations of our laws to go unpunished,” said ATF Special Agent in Charge Christopher Shaefer. “ATF and our law enforcement partners will remain on the frontline to reduce violent crime by targeting career criminals such as Pullins to ensure such violators are prosecuted and removed from our streets.”
According to United States Attorney Yates, the charges and other information presented in court: After receiving a tip about a drug stash house located at 2020 Donald Lee Hollowell Parkway (formerly Bankhead Highway), the Atlanta Police Department (APD) investigated the matter, observed a heavy volume of traffic coming to and from the residence and observed a car registered to Demetrius Pullins parked at the residence. After APD made undercover buys of ‘crack’ cocaine from this residence, a State Court Judge issued a warrant to search the residence. On December 14, 2012, APD executed the search warrant just as Pullins left the house. During the search, the police seized: two firearms, a scale, 931 grams of ‘crack’ cocaine in 485 bags, and $5,340 in United States currency. The ‘crack’ cocaine seized from Pullins had an estimated street value of $95,000. During his guilty plea Pullins claimed ownership of all of these items.
Pullins previous convictions were:
• May 19, 1994, he was sentenced to five years’ probation for possession of cocaine with intent to distribute, arising from at November 27, 1993 arrest.
• May 19, 1994, he was sentenced to five years’ probation for possessing cocaine with intent to distribute, arising from a January 5, 1994 arrest.
• August 28, 1996, he was sentenced to three years and ten months imprisonment and three years of supervised release for possession of a firearm by a convicted felon.
• August 28, 1996, after he was released from federal prison, he was sentenced to an additional two years in prison for violating the terms of his supervised release because he frequented a place where illegal drugs were sold.
• February 23, 2009 he was sentenced to a ten year suspended sentence for trafficking in cocaine.
Demetrius Pullins, a/k/a “Foosie,” 40, of Atlanta, Ga., was sentenced by United States District Court Judge William S. Duffey, Jr. to 21 years and ten months of imprisonment, to be followed by five years of supervised release, and ordered to forfeit the $5,340 in drug proceeds seized from him. Pullins pleaded guilty on February 27, 2014, of possessing ‘crack’ cocaine with intent to distribute and being a felon in possession of firearms, after he pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Atlanta Police Department.
Assistant United States Attorney Joseph Plummer prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Armed Career Criminal Pleads Guilty to Firearms PossessionRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Darrell Roby (41, Orlando) has pleaded guilty to possession of a firearm by a previously convicted felon. Roby faces a mandatory minimum term of 15 years in federal prison, up to life. Sentencing has been set for August 20, 2014.
Roby was indicted on March 26, 2014.
According to court documents, Roby, a ten-time previously convicted felon, sold prescription pills to a confidential informant on January 27, 2014. He also sold prescription pills and a Smith and Wesson .38 caliber revolver to a confidential informant on February 12, 2014. Roby then agreed to sell 500 pills of Oxycodone to a confidential informant for $12,500. The deal was scheduled to take place at Roby’s residence on February 26, 2014.
A federal search warrant was obtained and executed at Roby’s residence on February 26, 2014. During the execution of the search warrant, Roby was found to be in possession of a stolen Glock firearm, at which time he was arrested.
Roby’s prior state felony convictions include burglary, possession of a firearm by a convicted felon, escape, introduction or possession of contraband in a state correctional facility, delivery of cocaine, possession of cocaine, and delivery of a controlled substance. As a previously convicted felon, Roby is prohibited from possessing firearms or ammunition under federal law. Because his prior criminal record includes several violent felonies and a serious drug offense, Roby qualifies for enhanced sentencing as an Armed Career Criminal under federal law.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Metropolitan Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Arizona Woman Sentenced for Meth PossessionRead the Press Release
United States Attorney Deborah R. Gilg announced that Senior United States District Judge Richard G. Kopf sentenced Debbie Neumann, 52, of Tucson, Arizona, to 120 months in federal prison, followed by 5 years of supervised release.
Debbie Neumann was a passenger of a vehicle driven by her husband, Troy, when they were stopped for speeding in Nebraska. Troopers searched the rented vehicle and found a small lock box hidden within the clothing of one of the duffel bags located in the trunk. Inside the lock box were eight baggies containing 7.6 ounces of methamphetamine that was greater than 95% pure. Neumann pled guilty to possession of methamphetamine with intent to distribute on July 17, 2013.
This case was investigated by the Nebraska State Patrol.
Antelope Man Sentenced to 14 Years in Prison for Drug Trafficking and Firearm ChargesRead the Press Release
SACRAMENTO, Calif. — Jamie Golladay, 32, of Antelope, was sentenced today by United States District Judge Kimberly J. Mueller to 14 years in prison for possession with intent to distribute methamphetamine, possession with intent to distribute heroin, and possession of a firearm during and in relation to a drug trafficking crime, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 27, 2013, Roseville police officers, investigating a vehicle theft, conducted a search at Golladay’s residence in Antelope. Officers discovered three firearms, baggies with heroin and methamphetamine, tablets of oxycontin, oxycodone, and methadone. Officers also found firearm magazines, three digital scales, syringes, ammunition, and two large safes. Inside the safes, officers found approximately two pounds of methamphetamine, one pound of heroin, and a pink slip tied to their stolen vehicle investigation. On March 12, 2014, Golladay pleaded guilty to possessing a .40-caliber semi-automatic pistol and a 6.35 mm semi-automatic Berretta pistol in furtherance of a drug trafficking offense. He also admitted that he possessed the methamphetamine and heroin with the intent to distribute.
This case was the product of an investigation by the Drug Enforcement Administration, the Roseville Police Department, and the Citrus Heights Police Department with close coordination with the Sacramento County District Attorney’s Office. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
Alabama Man and Woman Sentenced to Federal Prison for Manufacturing, Possessing, and Passing Counterfeit MoneyRead the Press Release
PANAMA CITY, FLORIDA– United States Attorney Pamela C. Marsh announced that the Honorable Richard Smoak sentenced Will Rustin Sprayberry, 33, of Alabama to 46 months in federal prison and Jennifer Nicole Pippin, 31, of Alabama to 18 months in federal prison for manufacturing, possessing, and passing counterfeit currency.
Sprayberry and Pippin pled guilty in March to two counts of manufacturing, possessing, and passing counterfeit United States currency in Panama City, Florida, between November 7, 2013, and November 13, 2013.
Sprayberry and Pippin were also each sentenced to 3 years of supervised release, a $200 special monetary assessment, and ordered to pay restitution in the amount of $410 to various businesses throughout Panama City Beach, Florida.
This conviction results from an investigation by agents of the United States Secret Service and was prosecuted by Assistant U.S. Attorney Katy Risinger.Akron Man Convicted of Possessing Ricin for Use as A WeaponRead the Press Release
Jeff Boyd Levenderis, age 58, of Akron, was convicted after a four-day jury trial in United States District Court in Cleveland, Ohio, of possessing the biological toxin ricin for use as a weapon, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland office.
Levenderis was also convicted of one count of possessing ricin and two counts of making false statements to FBI agents.
The evidence and testimony introduced at trial showed that Levenderis produced ricin, a deadly biological toxin, at his home in Akron, sometime after 2000 and kept it in his freezer until it was recovered by FBI agents in January 2011.
The evidence showed that Levenderis intended to make a “weaponized” form of ricin. The evidence also showed that Levenderis planned to use the ricin against his stepfather and against first responders who might respond to a fire Levenderis planned to set at his house as part of an elaborate suicide plan.
Testimony at trial confirmed that the substance Levenderis manufactured contained active ricin and that it contained hundreds of lethal doses if inhaled or injected. Based on all of the evidence presented at trial, the jury found that Levenderis possessed the ricin for use as a weapon.
Additionally, the jury convicted Levenderis of possessing ricin of an unauthorized type or quantity without justification and with lying to FBI agents on two occasions when Levenderis denied making ricin, claiming it was only ant poison.
“The jury’s verdict confirms the danger posed by Jeff Levenderis in our community," Dettelbach said. "Levenderis produced a dangerous biological weapon that could have been used in multiple ways to harm or kill innocent people. Ricin is a significant threat and the evidence showed the defendant meant to use it. As a result of this conviction, our community is safer.”
“Levenderis brought extreme danger to our community by producing and weaponizing this deadly substance. The jury did an outstanding job handing down these much deserved guilty verdicts,” said Anthony.
Levenderis will be sentenced on a date yet to be scheduled.
The was prosecuted by Assistant United States Attorneys Matthew W. Shepherd and Om Kakani and Erin Creegan, Trial Attorney with the National Security Division of the United States Department of Justice. The conviction resulted from an investigation conducted by the FBI.
15 Face Federal Charges in Central Illinois for Allegedly Defrauding Medicaid Home Services ProgramRead the Press Release
Springfield, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, today announced that 15 individuals have been charged by federal criminal complaint or information for allegedly submitting false timesheets for work not performed as personal assistants through the Home Services Program, a state Medicaid Waiver program. The individuals charged are all alleged to have submitted or assisted another in submitting fraudulent time sheets for hours that the personal assistant was working another job, or was otherwise out of the area, or during a time that the disabled customer was hospitalized or otherwise not using their services.
Medicaid Waiver programs enable states to use both federal and state Medicaid funds to pay for services related to medical care that would not ordinarily be covered under Medicaid. Through the Home Services Program, the State of Illinois provides funding for services to individuals with significant disabilities so that they may remain in their homes and live as independently as possible. One of the services available to those with significant disabilities is the personal assistant program.
The 13 defendants charged by complaint will be issued summonses and are each scheduled to make initial appearances before U.S. Magistrate Judge Tom Schanzle-Haskins on June 16, 2014. The two defendants charged by information are each scheduled to appear before Judge Schanzle-Haskins on June 12, 2014.
All of the charges are the result of investigations conducted by members of the Central Illinois Health Care Fraud Task Force. These agencies include the Illinois State Police Medicaid Fraud Control Bureau; U. S. Department of Health and Human Services Office of Inspector General; the FBI, IRS Criminal Investigation; and the Illinois Attorney General’s Office. The cases are being prosecuted by Assistant U.S. Attorney Patrick D. Hansen.
“We appreciate the importance of making sure that people make honest use of public money,” said U.S. Attorney Lewis. “And we certainly appreciate the work of law enforcement officials to hold people accountable.”
The Home Services Program provides for a qualified individual with disabilities, the customer, to hire one or more personal assistants to perform or assist the individual to perform household tasks, shopping, personal care, incidental health care tasks, and monitoring to ensure the health and safety of the customer. The personal assistant is hired by and reports directly to the customer or their family member, but is paid by the State of Illinois through this Medicaid waiver program.
The Illinois Department of Human Services administers the Home Services Program; operational responsibility for the Home Services Program, with minor exceptions, rests with the Division of Rehabilitation Services, which is a part of the Illinois Department of Human Services. Funds for the program are administered by the Illinois Department of Health and Family Services. Approximately one-half of the program funding is provided by the U.S. Department of Health and Human Services.
To receive payment as a personal assistant, the customer and the personal assistant complete and submit time sheets twice monthly. These time sheets contain the dates and number of hours worked by the personal assistant. Both the customer and personal assistant are required to certify the accuracy of the time sheets. The time sheets are then submitted to the Department of Human Services, and, if approved, the claims are paid through the Office of the Comptroller.When hired, the personal assistant is required to sign a DHS Division of Rehabilitation Services Individual Provider Payment Policies form acknowledging their awareness of Home Services policies including the following: • Individual Providers can only be paid for the hours they worked for the customer per the HSP Service Plan. Billing for hours not worked constitutes Medicaid fraud.
• Individual Providers can only be paid for hours and tasks performed in the customer's home unless the task must be completed outside the home such as laundry due to no facilities in the home, banking, and grocery shopping.
• Individual Providers are not allowed to subcontract. Subcontracting means letting someone else work in your place, putting the time on your time sheet and then paying them yourself. . . .Each Individual Provider will only be paid for services which he or she provided directly to the customer.
• Individual Providers cannot charge HSP for the same hours worked when working another job. This includes working for other HSP customers or as a childcare provider paid through the Department of Human Services. This constitutes fraud and will be prosecuted as such.On May 30, 2014, criminal complaints or informations were filed in the Central District of Illinois against the following:
Michelle Calhoun, 36, of Cantrall Creek Rd, Cantrall, Ill., Patricia Davis, 58, and Alicia Davis, 29, both of the 300 block of S. 7th St., Petersburg, Ill., charged by complaint with mail fraud, in May 2013, for allegedly submitting false time sheets for services that none of them performed; Jason C. Greene, 36, of Bloomington, Ill., but currently in the custody of the Illinois Department of Corrections, charged by complaint with health care fraud, from December 2008 to May 2012, for allegedly submitting false time sheets for at least 300 hours of work performed during times when he was incarcerated; Thelma Gude, 55, of the 600 block of E. Kansas, Peoria, Ill., charged by complaint with health care fraud, from April 2013 to July 2013, for allegedly submitting false time sheets for hours claimed to have been worked while her client was hospitalized; Amber Gibson, 26, of Marengo, Ill., charged by complaint with mail fraud, in September 2011, for allegedly submitting false time sheets for hours worked when she was working at another job.
Palestine Zambrella, 75, of Machesney Park, Ill., charged by complaint with mail fraud, in November 2012, for allegedly submitting false time sheets for hours worked that she was working at another job; Amber F. Pates, 19, of the 5200 block of N. Knoxville, Peoria, Ill., charged by complaint with mail fraud, in March 2013, for allegedly submitting false time sheets for work performed when her customer was incarcerated; Cheryl R. Hood, 33, of the 700 block of E. Milton Ave., Lewistown, Ill., charged by complaint with health care fraud, in September - October 2013, for allegedly submitting false time sheets for hours claimed to have been worked while her client was in the hospital; Gayle L. Schultz, 55, of the 1100 block of Hawkinson, Galesburg, Ill., charged by complaint with mail fraud, in April 2013, for allegedly submitting false time sheets for hours worked when she was working at another job; Karen Garske, 50, of the 2200 block of W. Wiswall St., Peoria, charged by complaint with health care fraud, in February – July 2013, for allegedly submitting false time sheets for hours claimed to have been worked while her customer was in the hospital; Patricia Dismuke, 43, of Rockford, Ill., charged by complaint with mail fraud, in December 2011, for allegedly submitting false time sheets for hours worked when she was working at another job; Marlene A. Liss, 37, of Chicago, charged by information with health care fraud, from June 2010 to August 2013, for allegedly submitting false time sheets for personal assistance work performed for a relative while she was employed full-time with the Illinois Office of the Secretary of State; and, Mildred M. Day, 50, of Chicago, charged by information with making a false statement to a government agency, in March 2012, by misrepresenting that a personal assistant was providing services at a time when that person was not providing any services.
If convicted, for the offense of mail fraud, the statutory penalty is up to 20 years in prison, and fines up to $250,000; for health care fraud, the statutory penalty is up to 10 years in prison and fines up to $250,000; and, for making a false statement, the penalty is up to five years in prison.
Members of the public are reminded that complaints and informations are merely accusations; each defendant is presumed innocent unless proven guilty.
3 June 2014
Wilkes-Barre Man Charged with Drug Trafficking and Firearms ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre resident was indicted by a federal grand jury today on charges of distributing crack cocaine and unlawfully possessing a firearm.
According to United States Attorney Peter Smith, the defendant, Tristan Somers, age 30, was charged with seven counts of distribution of crack cocaine, possessing a firearm in connection with drug trafficking, and possessing a firearm as an unlawful user of controlled substances. The offenses allegedly occurred between March 2014 and May 28, 2014.
The charges stem from an investigation by special agents of the Bureau of Alcohol, Tobacco and Firearms (ATF), Kingston Police, and Wilkes-Barre Police.
If the defendant is convicted of the charges, he faces up to 20 years in prison and a $1 million fine for each drug trafficking crime, up to 10 years in prison and a $250,000 fine for possessing a firearm as an unlawful user of drugs, and a mandatory five-years in prison and up to life in prison for possessing a firearm in connection with drug trafficking.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
West St. Louis Man Sentenced for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a West St. Louis, Mo., man was sentenced in federal court for robbing First Federal Bank in North Kansas City, Mo.
James A. Yokum, 44, of West St. Louis, was sentenced by U.S. District Judge Dean Whipple on Tuesday, June 3, 2014, to five years and three months in federal prison without parole.
On Dec. 11, 2013, Yokum pleaded guilty to stealing $600 from First Federal Bank, 1200 Armour Rd., North Kansas City.
According to an affidavit filed in support of the original criminal complaint, Yokum walked into the bank at approximately 2:45 p.m. on June 11, 2013, and waited in line at a teller window. He leaned over the counter and whispered, “Give me all your hundreds.” The teller handed him six $100 bills and he ran out of the bank.
A relative of Yokum, who was working nearby, told agents that Yokum had been staying at his house temporarily, and that Yokum had told him earlier in the day that he was going to rob a bank.
Yokum was arrested the same day by a Missouri State Highway Patrol trooper who intercepted his vehicle on eastbound Interstate 70 near Columbia, Mo.
This case was prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the FBI.Veteran Charged with Falsely Claiming More Than $480,000 in BenefitsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Matthew Lyman, Public Affairs Specialist/Community Outreach CoordinatorCLARKSBURG, WEST VIRGINA – A Bridgeport, W. Va., man has been charged with falsifying documents in order to enhance his Veteran’s Administration (VA) disability benefits, as well as fraudulently obtaining controlled substances from the VA.
United States Attorney William J. Ihlenfeld, II announced that Thomas Cueto, 65, was indicted on one count of theft of government funds and nine counts of obtaining controlled substances by fraud.
Cueto, who served in the U.S. Army from 1969, to 1972, including time spent in Vietnam, was awarded disability benefits in 1999 for service-connected post-traumatic stress disorder. Since 1999, Cueto has collected more than $480,000 in VA benefits.
The Indictment returned today alleges Cueto falsely claimed on his Report of Discharge from the Armed Forces of the United States (also known as a “DD-214”) to have earned the following awards: a Combat Infantry Badge, Bronze Star with V-Device, Purple Heart and Vietnamese Cross of Gallantry. It’s also alleged that Cueto submitted a counterfeit Purple Heart certificate and other misleading documents to show he was injured in combat.
Cueto is also alleged to have misled VA medical personnel in order to obtain Methadone HCL and Hydrocodone, both of which are Schedule II controlled substances. He was allegedly receiving narcotics from private medical providers, but advised VA medical personnel he had not previously received the drugs from any other source. The Indictment alleges Cueto was fraudulently obtaining the narcotics between 2010 and 2012.
The case will be prosecuted by Assistant U.S. Attorneys Brandon S. Flower and Andrew R. Cogar.
It is being investigated by the VA Office of Inspector General.Cueto faces up to 10 years in prison on the theft of Government funds charge and up to 4 years on each of the controlled substance violations. The U.S. Attorney’s Office is seeking a money judgment against Cueto in the amount of $480,000.
Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office Reaches Settlement with Ann Arbor HotelsTo Improve Accessibility for Disabled GuestsRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Michigan has reached an agreement with an Ann Arbor hotel owner to resolve a complaint filed by a Chicago man who could not attend his law school reunion with his disabled son because of the lack of accessible guest rooms.
The settlement resolves allegations against Campus Inn/Bell Tower Joint Venture, the owner/operator of the Campus Inn and the Bell Tower hotels, both located in Ann Arbor, under the Americans with Disabilities Act (ADA), and will improve physical accessibility for people with disabilities at both hotels.
“This case is an important reminder to owners of older buildings that they are required to make all readily achievable modifications to their properties to improve accessibility for guests with disabilities,” said U.S. Attorney Barbara L. McQuade.
Under the settlement agreement, the Campus Inn and the Bell Tower Hotels agreed to make renovations to guest rooms, public restrooms and elevators, to permit service animals and to change their policies regarding reservations for accessible rooms. They also agreed to improve signage, to provide additional training for employees and to pay $1,500 in compensatory damages to the complainant.
Today’s agreement was reached under Title III of the ADA, which prohibits discrimination against individuals with disabilities by public accommodations. The U.S. Attorney’s Office will actively monitor compliance with the agreement, which will remain in effect for three years.
For more information on the ADA and today’s agreement with Campus Inn/Bell Tower Joint Venture, visit www.ada.gov or telephone the U.S. Department of Justice’s toll-free ADA Information line at (800) 514-0301 or (800) 514-0383 (TTY) or the U.S. Attorney’s Civil Rights hotline at (313) 226-9151.U.S. Attorney Hosts Law Enforcement Conference on Cyber ThreatsRead the Press Release
Key law enforcement leaders in the areas of cybercrime and intellectual property are meeting in Seattle this week to share the latest information on cyber threats and efforts to combat them, announced U.S. Attorney Jenny A. Durkan. The Attorney General’s advisory subcommittee on cybercrime and intellectual property will tour the Microsoft Cyber Crime and IP Center and will get a briefing from the FBI’s cyber threat center.
“This is a great opportunity to share strategies on countering cybercrimes which know no geographic boundaries,” said U.S. Attorney Jenny A. Durkan who chairs the AG’s Cybercrime subcommittee. “Recent indictments by the Department of Justice show that this must be a global battle. Meeting in Seattle gives U.S. Attorneys from across the country the opportunity to appreciate the impacts on every sector of our economy – and to hear from our strong high-tech community.”Some of the U. S. Attorneys participating in the conference handle high profile computer hacking and intrusion cases, such as the prosecution of the hacktivist group ‘Anonymous,’ and the prosecution of those who seek financial gain through hacking and identity theft.
Participating U.S. Attorneys include Rod Rosenstein from the District of Maryland, Sarah Saldaña from the Northern District of Texas, Melinda Haag from the Northern District of California, Carmen Ortiz from the District of Massachusetts, Laura Duffy from the Southern District of California, Carter Stewart from the Southern District of Ohio, Karen Loeffler from the District of Alaska and John M. Bales from the Eastern District of Texas. U.S. Attorney David Hickton of the Western District of Pennsylvania will join the conference via video link. On Monday U.S. Attorney Hickton announced indictments and an injunction in a computer malware scheme known as Cryptolocker. More information on the case is available here.
The U.S. Attorneys will be joined by a variety of experts from the FBI and DOJ’s National Security Division including Josh Goldfoot, Deputy Chief, Law and Policy National Security Division, Mick Stawasz, Deputy Chief, Computer Crime and Intellectual Property Section, and Tim Wallach Supervisory Special Agent, FBI. Kev Kubiak the Director of the National Intellectual Property Rights Coordination Center will brief the group via video conference.
Two Federal Inmates Sentenced to Death for MurderRead the Press Release
Two inmates of the U.S. Medical Center for Federal Prisoners in Springfield, Missouri, who were convicted by a federal jury for murdering another inmate at the facility were sentenced to death late yesterday.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney Tammy Dickinson of the Western District of Missouri made the announcement.
“Two federal inmates senselessly killed another inmate, and today, they have been brought to justice,” said Assistant Attorney General Caldwell. “The Justice Department is committed to ensuring the safety and security of all Bureau of Prisons employees and inmates.”
“Achieving justice sometimes requires us to ask our citizens to make the most difficult sentencing decisions,” said U.S. Attorney Dickinson. “We appreciate their patience and commitment throughout trial. The defendants’ conduct strikes at the heart of our justice system, which depends upon the safety and security of our penal institutions. Mr. Castro was targeted for murder, in part, because he intervened to help a Bureau of Prisons employee as he was being attacked by another inmate.”
Wesley Paul Coonce Jr., 34, and Charles Michael Hall, 43, who are both inmates at the U.S. Medical Center for Federal Prisoners, were found guilty on May 7, 2014, of one count of murder in the first degree. Coonce was also found guilty of one count of murder by an inmate serving a life sentence. The trial began on April 28, 2014, before U.S. District Judge Gary A. Fenner of the Western District of Missouri.
The evidence presented at trial demonstrated that another inmate at the prison medical center, Victor Castro-Rodriguez, 51, was found dead on the floor of his cell on Jan. 26, 2010, and had been murdered by Coonce and Hall. At the time of the murder, Coonce was serving a life sentence for a kidnapping and carjacking that involved the brutal rape of a young woman, and Hall was serving a combined 194-month sentence from the District of Maine for making threatening communications against a federal judge and a federal prosecutor.
This case was investigated by the FBI and the Bureau of Prisons and it was prosecuted by Assistant U.S. Attorney Randall D. Eggert and Trial Attorney James D. Peterson of the Capital Case Section of the U.S. Department of Justice’s Criminal Division.Texas Woman Allegedly Prepares Tax Returns Claiming False Deductions and CreditsRead the Press Release
The U.S. District Court for the Southern District of Texas in McAllen, Texas, permanently barred Maria I. Cantu from preparing federal tax returns for others, the Justice Department announced today. Cantu, a tax preparer in McAllen, agreed to the civil injunction order.
The order also requires Cantu to turn over to the United States a list of all persons for whom she prepared federal tax returns or claims for a refund for tax years 2010 through 2012, and to notify these customers of the permanent injunction against her. The order authorizes the United States to monitor Cantu’s compliance with the terms of the order.
The complaint alleged that Cantu prepared returns that contained false, improper or inflated deductions or tax credits, such as the earned income tax credit. The complaint also alleged that these activities led to her clients filing returns which unlawfully understated income tax liabilities and overstated refunds.Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Texas Man Enters Guilty Plea and Is Sentenced to Federal Prison for Cocaine TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Texas resident pleaded guilty today in U.S. District Court in Scranton, before Senior United States District Judge Edwin M. Kosik, to the charge of conspiracy to distribute cocaine and was then sentenced to serve 36 months in prison.
According to United States Attorney Peter Smith, Jose Gomez, age 46, formerly of Garland, Texas, admitted to participating in a drug-trafficking conspiracy which obtained cocaine in Texas and distributed the cocaine in Monroe and Northampton County in 2011.
Gomez, who is originally from the Dominican Republic, also faces deportation proceedings.
The investigation was conducted by the Drug Enforcement Administration, the Stroud Area Regional Police Department and the Internal Revenue Service, Criminal Investigations.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
St. Mary’s County Man Sentenced to over 19 Years in Prison for Producing Child PornographyRead the Press Release
Used a Watch Camera to Surreptitiously Film the Victim
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Ronald Davis Pope, age 49, of Mechanicsville, Maryland, today to 235 months in prison, followed by lifetime supervised release, for production of child pornography. Chief Judge Chasanow ordered that upon his release from prison Pope must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.
According to Pope’s plea agreement, from February through May 2013, Pope lived with a family and shared a bathroom with the victim, a 14 year old male. Pope placed a watch containing a hidden camera in the bathroom and recorded the victim in the shower and using the bathroom. The camera was placed in a location that allowed Pope to capture videos focused on the victim’s genital area. Pope then transferred the videos to his computer and cellular phone. The victim was not aware that he was being recorded.
On May 2, 2013, federal and state law enforcement officials executed a search warrant at Pope’s residence and seized electronic devices, including Pope’s cellular phone and laptop computer. A forensic analysis of the SD card found in the cellular phone and the laptop recovered a total of 18 videos depicting the victim dressing, undressing, showering and using the restroom. The victim’s penis is exposed in at least 12 of the videos. At least one of the five videos found on the laptop appears to be part of the same video recovered on the cellular phone.
On May 7, 2013, a package addressed to Pope arrived at his residence. The package contained a weather clock hidden camera purchased on May 1, 2013, one day before Pope’s arrest. Later that month, one of Pope’s family members retrieved a package from a post office box belonging to Pope, which contained an HD clock DVR, USB cord and a micro SD card.
In June 2013, federal law enforcement officials seized the camera watch used to record the videos of the victim. Subsequent forensic analysis of the watch camera memory revealed three videos, one of which depicts the victim showering. The spy camera watch also contained an image of Pope’s face.
Chief Judge Chasanow ordered that Pope’s federal sentence run concurrent to the sentence imposed in a case pending the St. Mary’s County Circuit Court involving a separate victim. In that case, Pope has agreed to plead guilty to sexual abuse of a minor and be sentenced to 25 years in prison with all but 20 years suspended. His sentencing in that case is scheduled for 1:30 p.m. today.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, St. Mary’s County Sheriff’s Office and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kristi N. O’Malley and Nicolas Mitchell, who prosecuted the case.
Robert Wayne Locklear Pleads Guilty to Federal Crack Cocaine Conspiracy and Health Care Fraud ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On June 2, 2014, Robert Wayne Locklear, 45, of Greeneville, Tenn., pleaded guilty to one count of a conspiracy to distribute a quantity of cocaine base (“crack”) and one count of a conspiracy to commit health care fraud before the Honorable J. Ronnie Greer, U.S. District Court Judge. Sentencing was scheduled for 1:30 p.m., September 22, 2014.
According to a plea agreement signed and filed with U.S. District Court in Greeneville, Locklear was licensed to practice medicine in the State of Tennessee and operated two businesses, Trinity Internal Medicine and Sleep and Trinity Recovery Clinic, in Greeneville, Tennessee. The latter was an office based substance abuse treatment program where individuals with opioid addictions were treated with Suboxone or Subutex in an outpatient setting. While operating these businesses, Locklear developed addictions to alcohol and crack cocaine. He admitted to law enforcement agents that he had been smoking crack cocaine a few times a day (before, during and after work). Locklear also admitted to going back to the office at night to run the Suboxone clinic and seeing patients “with a buzz.” He further admitted in the plea agreement that he gave/distributed crack cocaine on occasions to others.
Over time, Locklear’s excessive drug usage resulted in his coming into the office to see patients only sparingly, according to the plea agreement. In order to maintain his Suboxone practice, Locklear told his office staff to continue to see patients, call in their prescriptions for Suboxone and order urine drug screens in his absence, all while knowing that no employee/medical assistant at his practice was properly licensed or trained to provide these requisite medical services. By having his staff continue to see patients in his absence, Locklear authorized prescriptions for medications, including Suboxone, to be distributed to patients that he had not seen, had not conducted physical examinations, and had not determined sufficient medical necessity for the prescriptions. On numerous occasions, drug screens came back positive for the presence of other illegal drugs, but the patients continued to get their Suboxone prescriptions anyway.
The investigation leading to the indictment and conviction was conducted by the Federal Bureau of Investigation, Tennessee Bureau of Investigation and Third District Judicial Drug Task Force. Assistant U.S. Attorney Wayne Taylor represents the United States.
Remarks as Prepared for Delivery by U.S. Attorney Paul J. Fishman at the Camden County College Police Academy Graduation for the 63rd Basic Police Recruit ClassRead the Press Release
CAMDEN COUNTY COLLEGE, BLACKWOOD, N.J.
Thank you, President Yannuzzi, for that introduction. It is always a privilege for me to speak with uniformed officers and it is a special thrill to be the keynote speaker on such a momentous occasion. The presence of so many public figures shows just how significant today is. And while I don’t want to run the risk of picking and choosing among elected and non-elected officials, I do want to single out two people. First, I want to thank Warren Faulk for his service as Camden County Prosecutor and for his friendship and for being such a great partner. I want to thank Chief Scott Thompson of the Camden County Police Department, with whom I have worked so closely over the last several years for his vision, his resolution, his flexibility and his leadership.
Thank you all for letting me mark this milestone with you today. Thank you for your service. And Congratulations Academy Class 63.
One morning, a few months from now, a woman will walk out of her door in the Parkside neighborhood in Camden with her new baby. And she will see one of you – maybe Officer Diana Deren or Ken Egan or Keyana Smith – walking up the block. And she will feel safer.
On a Tuesday afternoon in October, a retired couple will be taking a walk on the trail as the leaves change in Wood Lake Park in Edgewater Park. And maybe they will see Officer Kyle McPhillips or Charles Ryder pull into the parking lot. And they will feel safer.
Early one evening, a young family will get into their car after eating at one of the restaurants on Blackwood – Clementon Road as Matt Gray, or Joe Thomson, pulls in on a coffee break. And the kids will wave and the officers will wave back. And the parents will smile and feel safer.
And on a Sunday afternoon, a couple of teenagers will be riding their bikes to play ball at Legion Field in Fieldsboro. Maybe they’ll see Officer James or Officer Palma patrolling on Front Street or Washington Street. And they will be safer. And maybe one of those kids might think that he or she wants to be just like them.
Today we celebrate all of that. Today we recognize that all of you have chosen a career that will give you the chance to change people’s lives. Today we celebrate that all of you will, simply by doing your jobs, make our streets and our neighborhoods safer in 13 different communities – from Ocean City to Camden, and from Washington Township to Gloucester City. And today we congratulate you for having made it through a rigorous, demanding, state of the art academy that has prepared you to handle those responsibilities in the best possible way.
You each have come to this career, and to this day, for different reasons and by different paths. For some of you, this work is literally in your blood and you are part of a family tradition and the next in a line of dedicated officers. Recruits Bagby, Camacho and Melendez are following in the footsteps of parents who have served these same communities.
Others of you are like those teenagers on their bikes, who have always wanted to be cops and have imagined wearing these uniforms since you played at arresting your friends on the playground. Four of you have already served your country in the armed forces, and this work is a natural extension of that extraordinary service. Several of you have already finished college, and three of you have advanced degrees.
And all of you, I suspect, have some deep, personal reasons to make a difference.
Chief Thomson shared Recruit CaBria Davis’ story with me, and that alone would be enough to make me proud to be here today. In 1994, her father was tragically murdered at the Crestbury Apartments in Camden. She and her brother were raised on the 500 block of Mechanic Street by their mother who struggled to make ends meet while on government assistance. There are a lot of ways Recruit Davis could have turned as a result of those experiences. But instead, she worked two jobs to assist her mother and brother -- all while paying her own way to attend Camden County College and Rowan University, where she earned a bachelor’s degree in Criminal Justice. It is a testament to her resolve and an inspiration to all of us that she is motivated to use that experience and that education as a police officer in the City of Camden.
As the United States Attorney, I have a lot of opportunities to speak about the importance of public service and its rewards and obligations. For the better part of my 30-year career, I have been proud to tell people that I work for the Department of Justice, and it never gets old to say I represent the United States. As you all know, there is no greater honor than the opportunity to serve our country and our communities.
But while what I do is satisfying, rewarding and intellectually challenging, it’s not dangerous, and it’s not scary. I don’t get up in the morning and put on a uniform, and a badge, and strap on a gun. I’ve never put my body through the grueling training required to do the job and save lives; and I’ve never been involved in a high-speed chase with a dangerous felon. I've never had to run into a burning building to save someone else. And I've never pulled over and approached a car with tinted windows on a deserted street, not knowing who was behind the glass or what they were holding.
To do that; to be willing to do that; to ask to do that – that requires a special kind of dedication and commitment. It means making a choice – and sometimes it’s just an instinct – to put the safety and welfare of others ahead of your own.
It is no coincidence that your badges are pinned over your hearts.
That kind of public service demands the sacrifice of time, compensation, and the companionship of family and friends. It’s lost weekends, and all-nighters, and missed school concerts and baseball games.
That sacrifice is shared – if not exceeded – by your family and friends. If you love someone who is on the job – if your husband or your wife is on patrol; if your mom or your dad is on a stakeout; if your sister or your brother or your friend is making an undercover buy – you bear burdens and worries and sleepless nights that others just can’t fully understand or appreciate. To the families of these brave men and women, I want to thank you in advance for carrying that weight.
Today we also celebrate something else. A little more than a year ago, the Camden County Police Department was launched. After all of the raised expectations this change created, it is your class – finally bringing the ranks to nearly full staffing – that will be able to deliver.
As budgets have tightened, we have all done “more with less.” All over New Jersey, we and our law enforcement partners have thwarted terrorist plots, stopped corrupt public officials, crippled cyber thieves who steal our most valuable information, held corporations accountable and locked up white collar criminals who have defrauded victims and markets and illegally used our healthcare system as a cash cow. We’ve taken guns and drugs off the streets, stopped producers and traders of images of sexually abused children and protected our delicate environment. Every day, I see my colleagues throughout the law enforcement community do their jobs with professionalism, dedication and pride.
But at a certain point, we can only do less with less. Even the most resilient are not immune from the constant stress of budget cuts, shutdown, furloughs or lay-offs. In today’s economy, this has been the reality for all of us in law enforcement. But the police in Camden – and the people of its neighborhoods and communities – have felt a particularly harsh bite. I and your other partners in this work are thrilled to see the cavalry has arrived.
Not that the force hasn’t been doing amazing work. Even with significantly challenged staffing levels, the men and women of this department have worked to reduce violent crime by 10 percent, homicides by 20 percent, and shootings by 25 percent. And crime is down in every category.
So imagine how much more we can do now. Those of you graduating today will boost the new County force to almost 390, full stop. That will allow deployments to further drive down the crime rate and it will give the department the flexibility to really employ a model of community policing. More officers will walk beats, patrol neighborhoods on bikes, and make real connections with the people they protect and serve. The fact that the force is so diverse, and reflects more and more who lives in those neighborhoods, will help to establish and maintain that trust. And it will be a huge advantage that you can communicate in 11 different languages.
We in the federal government have been and remain dedicated to supporting you in so many ways. For example, ten of you in this class were funded by a grant from the Justice Department’s Community Orienting Policing Services – or COPS – Hiring Program of 2013, which awarded Camden more than $2.2 million to bring them on board.
Last September, with the support of my office, the Justice Department’s Office of Juvenile Justice and Delinquency Prevention awarded Camden a roughly $1.4 million Community-Based Violence Prevention Demonstration Program grant to implement a public health based violence-reduction program called Cure4Camden, which will use Outreach Workers and Violence Interrupters to target those who are threatening Camden’s four most challenged neighborhoods: Cooper-Lanning, Liberty Park, Whitman Park and Centerville.
OJJDP, as that office is known, also awarded Camden another quarter of a million dollars in a National Forum on Youth Violence Prevention grant in September to support the Mayor’s Task Force on Youth Violence Prevention – a multi-agency partnership that began meeting in the fall of 2012 to identify, plan and direct a number of strategic initiatives in the areas of prevention, intervention, enforcement and re-entry. I’m proud that my office is playing a major role in that initiative as well.
And just over two years ago, the federal Department of Education awarded Camden a half-million dollars Promise Neighborhood grant to ramp up services to children and families in the Cooper Plaza and Lanning Square neighborhoods; and the Department of Housing and Urban Development awarded Camden a $300,000 Choice Neighborhood grant to focus on addressing housing, transportation, education, employment, healthy living and health care for public housing residents in the Liberty Park, Whitman Park and Centerville neighborhoods.
As I know from my conversations with the mayor and the Chief, these resources are incredibly important, particularly in these lean days. But the federal commitment can’t be and isn’t just about big checks. It must also be about big ideas and new strategies.
We always preach that we work best and are most effective when we work together at all levels of law enforcement. But in my thirty years of experience, I have never seen a better model than how we’re doing that in Camden in what we call the Camden County Crime Collaboration, or “C-4.” Every federal, state, county, and local law enforcement agency responsible for combating drug trafficking, gang activity and violent crime in Camden has assigned personnel – including agents, cops, intelligence analysts and prosecutors – to work out of a single location in the city. Every morning at 10 o’clock, in a meeting that has become known as the “huddle,” senior supervisors of those agencies share real-time information about homicides, shootings, and – most important – the details of ongoing criminal investigations. The kind of information that is exchanged, and the trust among those agencies, is extraordinary, and this kind of cooperation and collaboration is truly unprecedented. Not only is there nothing else like it in New Jersey, but I don’t know of a similar program anywhere else in the country. It is smart, creative law enforcement, and I hope that many of you in this class will have the opportunity to work directly with this impressive group.
But whatever your assignment, no matter what community you serve, the moment is now yours. Regardless of all of our cooperation, and all of our partnerships, and all we do as a team – in those moments of crisis in those neighborhoods and on those streets, it will be you who is there. When there is a call of shots fired; when the blaze is still burning; when the scene is not yet secure; when the ambulance hasn’t yet arrived; when the lost child has not yet been found – it will be you who is there. You are literally the first to respond.
Today we say, “You are ready.” You have trained hard and well, and will continue to hone your instincts through years of experience on the job.
It isn’t just about the fact that you keep people safe, it is also about how you keep people safe – always mindful of the civil liberties you are sworn to defend and the trust of the public you protect.
For the people of your communities, you – each of you – is an ambassador. For many, their interaction with the police is the closest contact they will ever have with their government. It is on you to represent all of us in a professional and positive light. You will need to be that much better; your skin will need to be that much thicker; and you will need to be that much more resistant to the temptation of corruption and the abuse of your power. Remember that everything you do – the way you handle every encounter – reflects not just on you but on all of your brother and sister officers.
Throughout my career, I have been lucky and privileged to work with law enforcement officers at every level of government: local, county state and federal. At every turn, I have been moved by the willingness of the New Jersey law enforcement community – the one I know best – to stand against those who won’t or can’t abide by the laws of our society, particularly those who commit crimes of violence. You have made it your life’s work – your chosen career – to help keep our communities safe.
The work will be hard, but it will be hugely satisfying.
In the communities you will serve, your patrol will be a welcome sight. In the communities you will serve, you will build relationships that will yield rewards for years. In the communities you will serve, criminals will be more afraid to carry guns and the law abiding people who work, live, play, and go to school there will carry themselves with less fear – and more pride.