Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
29 May 2014
Baltimore City Employee and Perry Hall Man Indicted for Conspiracy to Defraud the City of BaltimoreRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Denita Hill, age 25, of Baltimore, and Robert Johnson, age 32, of Perry Hall, Maryland, on charges of conspiracy, wire fraud, and aggravated identity theft, related to a scheme to defraud the City of Baltimore through the reissuance of fraudulent checks for pay and benefits. The indictment was returned on May 7, 2014, and unsealed late yesterday upon the arrest of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to the indictment, Denita Hill was employed as an accountant in the Payroll Accounting Department for the City of Baltimore. Baltimore City employees who left their employment were entitled to a lump sum check of any pay and benefits for which they qualified. Hill was responsible for documenting lost payments and having checks reissued to individuals who had not received their payments. Robert Johnson was employed in the Consumer Relations Service of the U.S. Department of Veteran’s Affairs.
The five-count indictment alleges that from July 11, through August 2, 2013, Hill and Johnson conspired to defraud the City of Baltimore by using financial and identity information of former employees to request fraudulent employee benefit payout checks which were then deposited into Johnson’s personal account and the funds subsequently withdrawn.
According to the indictment, Hill identified individuals who had received and cashed large lump sum payments and then requested that such checks be reissued, as if they had not been received. These duplicate checks would be printed in a location accessible to Hill, who then delivered the checks to Johnson. The duplicate checks bore a forged endorsement, “Pay to the Order of Robert Johnson,” purportedly signed by the recipient. Johnson endorsed and cashed the checks, and deposited the proceeds into a bank account he controlled. Johnson subsequently withdrew the fraudulently deposited funds.
To conceal the scheme, Hill allegedly told officials from Johnson’s bank, and agents from the Baltimore Office of Inspector General, that she had spoken with the check recipients and that the endorsements were genuine. In fact, the indictment alleges that Hill had not contacted any of the recipients and knew the checks were fraudulent. In addition, when Baltimore City discovered the scheme and recouped the funds, leaving a large deficit in Johnson’s account balance, Hill withdrew cash from her own account to cover the negative balance in an effort to prevent further investigations into the scheme.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each of two counts of wire fraud; and two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. The defendants had an initial appearance and arraignment in U.S. District Court in Baltimore on May 28, 2014, and were released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Baltimore Office of Inspector General, Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine and Special Assistant U.S. Attorney Josh Felsen, a cross-designated Baltimore City Assistant State’s Attorney, who are prosecuting the case.
Austin Man Arrested and Charged in Alleged Laser Strike IncidentRead the Press Release
In Austin today, FBI agents arrested 25–year-old Gabriel Soza Ruedas, Jr., for allegedly pointing a laser at an aircraft flying overhead announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In February 2012, President Barrack Obama signed the “FAA Modernization and Reform Act of 2012” and added a new provision that makes it a federal crime to aim a laser pointer at an aircraft. Yesterday, federal authorities filed a criminal complaint charging Ruedas with violating that provision (Title 18 United States Code Section 39A—Aiming a Laser Pointer at an Aircraft). The complaint alleges that on February 15, 2014, Ruedas knowingly aimed the beam of a laser pointer multiple times at an Austin Police Department helicopter that was on approach to land at Austin Bergstrom International Airport.
“Laser strikes can pose serious risks to flight crews, passengers, and even individuals on the ground. They are a serious public safety hazard and will be treated as such by law enforcement officials,” stated United States Attorney Robert Pitman.
Upon conviction, the defendant faces up to five years in federal prison and a maximum $250,000 fine.
“Shining a laser at aircraft can temporarily blind a pilot which could result in the loss of aircraft control and human life. This case should serve as a warning to others who engage in this dangerous criminal activity. The FBI will continue to investigate and pursue prosecution of offenders who threaten aviation safety,” stated FBI Special Agent in Charge Christopher Combs.
This indictment resulted from an investigation conducted by agents with the Federal Bureau of Investigation together with the Austin Police Department and the Texas Attorney General’s Office. Assistant United States Attorney Gregg Sofer is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Reported incidents of laser strikes are on the rise. Since the FBI and the Federal Aviation Administration (FAA) began tracking laser strikes in 2005, statistics reflect a more than 1,100% increase in the deliberate targeting of aircraft by people with handheld lasers. In 2013, there were a total of 3,960 laser strikes reported – an average of almost 11 incidents per day.
Earlier this year, the FBI announced the inception of the Laser Threat Awareness Campaign, a nationwide effort led by the FBI in collaboration with the Air Line Pilots Association, Int’l (ALPA) and the FAA to raise awareness of aircraft laser illumination threats. If you have information about a lasing incident, contact the San Antonio Division of the FBI at 210-225-6741. If you see someone pointing a laser at an aircraft, call the nearest local law enforcement agency immediately by dialing 911. Tips can also be submitted online at https://tips.fbi.gov.
Anchorage Couple Sentenced for Christmas Mail TheftsRead the Press Release
Anchorage, Alaska – United States Attorney Karen Loeffler announced that James Joseph Baehm, Jr., 47, and Melody Baehm, 41, of Anchorage, were sentenced today for their involvement in stealing mail just before Christmas 2013. The Baehms were arrested in the early morning hours of December 22, 2013, in the Upper Hillside area of South Anchorage, where they had been stealing mail from residential mailboxes. Further investigation revealed that they had also stolen mail a week earlier, and had cashed stolen checks amounting to approximately $2000. The United States Postal Inspection Service identified between 80 and 100 victims whose mail was taken by the Baehms, and either recovered from their vehicle or found dumped in trash bins.
U.S. District Court Judge Timothy M. Burgess sentenced each defendant to a five-year term of probationary supervision. Each defendant must spend six months in community confinement, either in a halfway house or in a residential drug treatment facility. The court found that each defendant has a serious heroin addiction that must be addressed if they are to successfully re-enter the community, and ordered them each to submit to an evaluation to determine the extent of their substance abuse problems. Judge Burgess also imposed the requirement that each defendant devote at least 40 hours per week to employment, seeking employment, or job training. He also ordered them to each perform 400 hours of community service and ordered them to pay $1850 in restitution to Alaska USA Federal Credit Union to pay back the money they stole by forging the stolen checks.
The defendants have been in federal custody since their arrest on December 22, 2013, having served five months in jail. Each faces several pending felony and misdemeanor state theft charges, as well as probation violations on prior state property crimes.
Ms. Loeffler thanks the United States Postal Inspection Service and the Anchorage Police Department for their work in solving this case.
Airline Employees Charged with Cash Smuggling and Evading Airport Security Checkpoints in an Undercover Operation at Logan International AirportRead the Press Release
BOSTON – Five commercial airline employees were arrested today and charged after an undercover operation revealed that they used their airport security clearances to secretly smuggle thousands of dollars in cash, past security checkpoints.
According to the complaint affidavit, they transported cash, which was represented to be drug proceeds, past Transportation Security Administration (TSA) officials and security check points and, in some instances, aboard commercial airline flights at Logan International Airport.
It is alleged that nine money laundering transactions were completed, which involved approximately $417,000 in cash the defendants believed to be drug proceeds.
Rupert Crossley, 25, of Lynn, Mass.; Alvin Leacock, 27, of Hollywood, Fla.; Eric Vick, 24, of Mattapan, Mass.; Anthony Trotman, 24, of Boston, Mass., all JetBlue Airways ground operations crew members and Dino Dunkley, 31, of Boston, Mass., a Delta Air Lines customer service ramp agent, were each charged in a criminal complaint with money laundering and of conspiracy to defraud the United States, namely, the TSA, by entering Boston’s Logan International Airport with the intent to evade security procedures, and with the intent to commit a felony, in a secure airport area.
According to the affidavit, each of the defendants used his individual airport security clearance to circumvent TSA security checkpoints and smuggle large amounts of cash from non-secure airport areas, such as curbside passenger drop-off/pick-up or public restrooms near baggage claim, to secure areas of the airport, such as passenger departure gates. In return, each defendant received a cash payment from a cooperating witness involved in the investigation. Defendants Vick and Dunkley each transported the smuggled cash aboard commercial airline flights from Boston to Florida.
U.S. Attorney Ortiz said, “Security at our nation’s airports is paramount and the conduct alleged today is alarming. Thanks to the hard work and commitment of the federal and state investigators and airline security personnel, a potentially dangerous breach in security was identified.”
“Today marks the culmination of a very detailed investigation,” said Bruce Foucart, Special Agent in Charge of HSI. “I want to thank all of the security officials within Massport, TSA, Mass. State Police, and the affected airlines. Their due diligence throughout this investigation, combined with the tireless work of my special agents made today’s arrests possible.”
If convicted, each defendant faces up to 20 years in prison.
U.S. Attorney Ortiz and SAC Foucart made the announcement today. The case was investigated with the assistance of Bob Allison, Federal Security Director, Transportation Security Administration; Special Agent in Charge Dwain Troutt of the Federal Air Marshal Service; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police. The U.S. Attorney’s Office would also like to acknowledge the assistance and cooperation of Jet Blue Corporate Security and Delta Airlines. The case is being prosecuted by Assistant U.S. Attorneys Carlos A. Lopez of Ortiz’s Major Crimes Unit and Dustin Chao of Ortiz’s Public Corruption Unit.
The details contained in the complaint affidavit are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.20-year Sentence for Man Who Dealt Heroin That Resulted in Overdose DeathRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Anthony D. Scott, 28, of Columbus was sentenced in U.S. District Court today to 240 months in prison for distributing the heroin that led to the overdose death of a Columbus man in August 2013.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, James V. Allen, Acting Special Agent in Charge, DEA and agencies participating in the DEA task force announced the sentence imposed today by U.S. District Judge Gregory L. Frost.
Scott pleaded guilty in February 2014 to distribution of heroin. At the time of his plea, Scott acknowledged distributing heroin on multiple occasions in July and August of 2013, including the heroin that caused the overdose-death of a 41 year-old Columbus man, as well as possessing heroin and cocaine along with 5 firearms in his residence at the time of his arrest.
Assistant U.S. Attorney Michael Hunter told the court, “Presented here is not some hypothetical or rhetorical statement by a prosecutor about a defendant that is causing harm to the community; there was significant and compelling evidence that the heroin that Mr. Scott pumped into the streets of Columbus directly contributed to the death” of a Columbus-area man.
Scott was also sentenced to serve six years under court supervision after he serves his prison time.
U.S. Attorney Stewart commended the cooperative investigation by special agents of the DEA, the police departments in Upper Arlington, Westerville, and Grove City, the Central Ohio Drug Enforcement Task Force (C.O.D.E.), Franklin County Sherriff Zach Scott’s Office, and the Fairfield-Hocking Major Crimes Unit for their participation in the investigation and arrest of Scott in August 2013. Scott has been in custody since his arrest.
28 May 2014
Worley Man Pleads Guilty to Meth DistributionRead the Press Release
COEUR D’ALENE – Larry Donald Havier, Jr., 37, of Worley, Idaho, pleaded guilty yesterday in United States District Court to distribution of fifty grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Havier was indicted by a federal grand jury on January 22, 2014.
According to statements made in court, Havier admitted that between May 2013, and January 2014, he conspired with others to distribute methamphetamine. Havier admitted that on at least two occasions he delivered methamphetamine to a confidential source of the Bureau of Indian Affairs and Drug Enforcement Administration.
The charge is punishable by imprisonment for not less than 10 years, a maximum fine of $10 million, and at least five years supervised release.
Havier is set for sentencing on August 18, 2014, before U.S. District Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was the result of a drug investigation conducted by the Bureau of Indian Affairs, Drug Enforcement Administration, Coeur d’Alene Tribal Police Department, and Plummer Police Department.
Woman Indicted for Assault, Interfering with Flight CrewRead the Press Release
MINNEAPOLIS— Today in federal court, a 34-year-old Fresno, California woman was arraigned for interfering with a Delta Airlines flight crew. Brandi Kristine Poulsen was charged by indictment with three counts of Interference with a Flight Crew and Attendants and one count of Assault of a Fellow Passenger.
On February 7, 2014, Poulsen was on board Delta flight 1189 travelling from Baltimore to Salt Lake City. According to the indictment, the defendant made threats against the lives of crew members, and assaulted one crew member and a passenger. The alleged offense caused the unscheduled landing of the airliner at the Minneapolis-St. Paul airport.
The maximum penalty for Interference with a Flight Crew and Attendants is 20 years’ imprisonment, as well as possible fines. All sentences are ultimately determined by a federal district court judge.
This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Wichita Man Charged with Bank RobberyRead the Press Release
WICHITA, KAN. -- Craig E. Applebee, 59, Wichita, Kan., is charged with one count of bank robbery. The indictment alleges that on May 15, 2014, he robbed the Credit Union of America at 212 S. Ridge Road in Wichita.
Court documents allege he entered the credit union at about 3:22 p.m. wearing a black ball cap and dark hooded sweatshirt. He gave a teller a note demanding money. A teller put a GPS tracking device in a bag with the money. Wichita police stopped Applebee’s car near 3700 W. Central less than 15 minutes after the robbery.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.OTHER INDICTMENTS
Weston Brett Canfield, 27, who is in federal custody, is charged with one count of robbery, one count of brandishing a firearm during a robbery and one count of unlawful possession of a firearm after a felony conviction.
The indictment alleges that on May 12, 2014, he brandished a firearm when he robbed Patty’s Retail Liquor at 3705 S.W. Plaza Drive in Topeka.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000 on the bank robbery charge, not less than seven years and a fine up to $250,000 on the charge of brandishing a firearm during a robbery, and a maximum penalty of 10 years and a fine up to $250,000 on the other firearm charge.
The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.Antonio Carrillo, 45, is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred May 11, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Jorge Goerne Canales, 54, El Paso, Texas, is charged with one count of making a false statement to a federal investigator. The crime is alleged to have occurred April 8, 2014, in Johnson County, Kan.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Zeke Mills, 32, Wichita, Kan., is charged with four counts of unlawful possession of ammunition after a felony conviction, two counts of unlawful possession of an unregistered firearm and four counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred in March and April 2014 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties: Unlawful possession of ammunition, unlawful possession of firearms: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of unregistered firearms: A maximum penalty of 10 years and a fine up to $10,000.The Wichita Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Waterloo Man Sent Back to Prison for Violating His Supervised Release Conditions by Selling DrugsRead the Press Release
A federal felon who was serving a six-year term of supervised release after being released from prison for drug trafficking was sent back to prison for three years when he was caught selling drugs again.
Floyd Neal, age 71, from Waterloo, Iowa, received the prison term after admitting during a revocation hearing on Tuesday, May 27, 2014, that he violated the terms and conditions of his supervised release.
During the hearing, Neal admitted that, while on supervised release, he failed to provide a urine sample as required, was residing with a felon against orders, and provided urine on April 23, 2014, that tested positive for cocaine. The most serious violation, however, occurred on May 6, 2014, when the Iowa Division of Narcotics Enforcement and the Waterloo Police Department searched Neal’s apartment and car and found cocaine. Neal admitted to the officers that he was involved in distributing cocaine.
Neal was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Neal was sentenced to 36 months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Neal is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the Iowa Division of Narcotics Enforcement, the Waterloo Police Department, and the United States Probation Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 97-cr-2012.
Violent Felon Sentenced to 105 Months in PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that U.S. District Court Judge James J. Brady sentenced MELVIN TROSCLAIR, age 35, of Baton Rouge, Louisiana, to a term of imprisonment of 105 months and three years of supervised release after imprisonment. His sentence was based on his conviction for possessing a firearm while a convicted felon, in violation of Title 18, United States Code, Section 922(g).
At the sentencing hearing, the Court stated that Trosclair was a danger to the community and cited his extensive criminal history and propensity for violence as reasons for imposing the lengthy prison sentence.
This matter arose from events on April 17, 2012. On that day, Deputy United States Marshals arrived at a residence on North 28th Street in Baton Rouge, Louisiana in order to arrest Trosclair on an outstanding warrant for armed robbery. When Deputy Marshals entered the residence they discovered Trosclair in possession of a loaded pistol and body armor. A Special Agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives quickly responded to the scene and initiated an investigation, which resulted in this federal prosecution.
U.S. Attorney Green stated: “Aggressively pursuing violent offenders will continue to be a top priority for this office. Felons armed with loaded firearms and protected with body armor pose a clear danger to the safety of our communities.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Marshals Service. The matter was prosecuted by Assistant United States Attorney Chris Dippel.
Urbana Man to Serve 10 ½ Years for Bank RobberiesRead the Press Release
Urbana, Ill. – An Urbana, Ill., man, Willie B. Franklin, Jr., 38, has been ordered to serve
125 months (10 years, 5 months) in prison for robberies committed in December 2012 of four banks in central Illinois and one bank in southern Iowa. Yesterday, May 27, U.S. District Judge
Michael P. McCuskey further ordered that Franklin pay restitution in a total amount over
$46,000.
According to court documents filed by the U.S. Attorney’s Office, in mid-May, the U.S.
Attorney’s Office received an anonymous letter with information that Franklin had received inheritance money. Upon investigation, authorities confirmed that Franklin had inherited money after his father died in March 2014. On May 19, U.S. District Judge Michael P. McCuskey issued a court order that any inheritance Franklin received, up to the value of restitution owed, be turned over to the Clerk of the Court.
Franklin pled guilty on Jan. 31, 2014, to committing five bank robberies in December
2012: on Dec. 3, 2012, Main Source Bank, Kankakee County; on Dec. 5, 2012, PNC Bank, Peoria County; on Dec. 20, 2012, Homestar Bank and Financial Services, Kankakee County; on
Dec. 26, 2012, First Mid-Il Bank and Trust, Adams County; and, on Dec. 17, 2012, US Bank in southern Iowa.
Franklin was arrested on Jan. 28, 2013, in the Middle District of Florida and appeared in federal court in Tampa, Fl., prior to being transferred to the Central District of Illinois. Franklin has remained in the custody of the U.S. Marshals Service since his arrest.The investigation was conducted by the FBI, the Urbana Police Department, the Quincy
Police Department, the Peoria Police Department, the Decatur Police Department, the Manteno
Police Department, and the Iowa City Police Department. Assistant U.S. Attorney Jason M.
Bohm prosecuted the case.United States Attorney’s Office Achieving Landmark Results in Fight Against Health Care FraudRead the Press Release
Settlements Valued At More Than $75 Million Completed In the First Half of 2014
LEXINGTON The U.S. Attorney’s Office’s concerted efforts to combat Medicare and Medicaid fraud and recover wrongfully obtained taxpayer dollars, are bearing fruit as evidenced by recent civil settlements totaling more than $75 million. The settlements – highlighted by today’s $40.9 million dollar deal with King’s Daughters Medical Center in Ashland, Kentucky – result from a reorganization of investigative and prosecutorial resources within the U.S. Attorney’s Office to focus on health care fraud.
“Health care fraud has been a Department of Justice priority for several years, and our office has made it a priority as well,” said U.S. Attorney Kerry B. Harvey. “There is a tremendous amount of taxpayer money in federal health care programs like Medicare and Medicaid being spent in the Eastern District of Kentucky. Where there are signs that health care providers have obtained taxpayer dollars through fraud or other forms of abuse, it is our responsibility to investigate those allegations and recover those funds to the fullest extent allowed by the evidence and the law.”
The Eastern District of Kentucky covers 67 counties in the eastern half of the state, and US. Attorney Harvey leads the U.S Attorney’s Office, which has responsibility for enforcing federal laws in that part of the state.
In late 2010, U.S. Attorney Harvey reorganized the U.S. Attorney’s Office to create a fraud unit that focuses in part on fighting civil fraud, particularly health care fraud. The attorneys and other personnel assigned to the group – including a paralegal, auditor, and investigator – work closely with law enforcement agencies such as FBI and Health and Human Services (HHS) and with state level counterparts at the Kentucky Office of the Attorney General to investigate health care fraud allegations. Where appropriate, criminal and civil health care fraud investigations are conducted simultaneously.
“These cases are large and complex from both a legal and factual standpoint,” said Andrew Sparks, Chief of the Fraud Unit. “They have taken time to investigate, but those efforts are paying off.”
U.S. Attorney Harvey observed that several of the cases resolved this year involved allegations of medically unnecessary procedures and other unsafe medical practices, which can pose serious health risks.
“These cases are not just about dollars and cents; they are also about patient safety and quality medical care,” said U.S. Attorney Harvey. “Where appropriate, this office can and will use federal laws and resources to hold accountable those health care providers that put their bottom line above their patients’ interests.”
Each of the 2014 settlements resolves allegations that health care providers violated the False Claims Act by submitting false or fraudulent claims to Medicare or Medicaid. That federal statute allows the government to recover up to three times the amount of monetary loss caused by the fraudulent conduct. Several of the settlements included a separate Corporate Integrity Agreement between the defendant and HHS, which allows for greater government oversight of the health care provider’s quality of service, billing, and compliance practices.
Harvey emphasized the ongoing nature of the Department’s health care fraud efforts and the importance of public awareness of potential fraud.
“We are not resting on our laurels with these settlements, and have added additional resources to our health care fraud group over the last few months,” said Harvey. “However, we can only investigate what we know about, and I would encourage those members of the public who are aware of potential fraud to report it through appropriate channels, whether at their workplace, through the HHS fraud hotline, or at our office.”
Below is a list of some of the significant civil health care fraud settlements in 2014.
U.S. vs. Saint Joseph London Hospital: The hospital agreed to pay the federal government $16.5 million to settle allegations that it billed Medicare and Medicaid for highly invasive and medically unnecessary cardiac procedures.
U.S. vs. Mullali: A Somerset, Ky., oncology center agreed to pay the government $2 million to settle allegations that the oncology practice had purchased cheap, foreign chemotherapy drugs that were not approved by the FDA. The drugs were used on patients, and then the oncology center billed the services to Medicare as if the drugs were the FDA-approved versions.
U.S. vs. PremierTox: A chain of opiate addiction recovery centers, and a clinical laboratory along with two physician owners agreed to pay the government $15.75 million to settle allegations that they fraudulently billed federal health care programs for urine tests that were unnecessary and excessive.
U.S. vs. King’s Daughters: The Ashland Hospital agreed to pay $40.9 million, plus interest, to settle allegations that it had billed Medicare and Medicaid for invasive and medically unnecessary heart procedures as well as allegations of significant Stark Law violations.United States Attorney Stephanie Finley Speaks to Abbeville Rotary Club MembersRead the Press Release
ABBEVILLE, La.–United States Attorney Stephanie A. Finley was the guest speaker today at Abbeville Rotary Club’s weekly meeting held at the Abbeville Country Club where she spoke to members about the role of the U.S. Attorney’s Office.
“I share the values of community involvement and education with the Abbeville Rotary Club,” Finley said. “It is always a priority to speak and share information about what we do at the U.S. Attorney’s Office. I appreciate that the Abbeville Rotary Club invited me to come and spend this time with them and commend them for being strong leaders in the community.”
The 1.2 million-member Rotary International organization started with the vision of Paul P. Harris. The Chicago attorney formed one of the world’s first service organizations, the Rotary Club of Chicago, on February 23, 1905 as a place where professionals with diverse backgrounds could exchange ideas and form meaningful, lifelong friendships. Rotary’s name came from the group’s early practice of rotating meetings among the offices of each member.
The Abbeville Rotary Club is composed of community members of diverse backgrounds who contribute to the community by providing donations, labor and other resources to local organizations and projects. Club members meet once a week at the Abbeville Country Club to share knowledge, socialize, plan events, and learn more about their community. The current club officers are President, Dr. Lance Savoie, a local dentist; Secretary Pamela Trahan, a tax preparer; and Treasurer Mason Romero, a pharmacist. To learn more about the Abbeville Rotary Club, please visit www.rcabbeville.org.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu. Finley was confirmed by the U.S. Senate on May 28, 2010, and sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force, and currently serves as Vice Chair of Attorney General Eric Holder’s Advisory Committee’s Office of Management and Budget Committee.
Two Men Sentenced to Federal Prison for Robberies at Businesses in TopekaRead the Press Release
TOPEKA, KAN. – Two men were sentenced Tuesdayfor robberies at Topeka businesses, U.S. Attorney Barry Grissom said.
Quartez Norwood, 32, Topeka, Kan., was sentenced to 180 months in federal prison. He pleaded guilty to two counts of robbery and one count of brandishing a firearm during a robbery.
Henry Lavelle Davis, 41, Topeka, Kan., was sentenced to 84 months in federal prison. He pleaded guilty to two counts of robbery
In his plea, Norwood admitted that:
- On July 29, 2013, he robbed the EZ Payday Advance at 2613 S.W. 21st Street in Topeka.
- On Aug. 3, 2013, he robbed the Family Dollar at 2616 S.E. 6th Street in Topeka.
- On Aug. 3, 2013, he brandished a firearm during the robbery at the Family Dollar.
In his plea, Davis admitted that:
- On July 25, 2013, he robbed the Check Into Cash at 3711 S.W. Plaza Drive in Topeka.
- On July 29, 2013, he robbed the EZ Payday Advance at 2613 S.W. 21st Street in Topeka.
Co-defendants include:
Xavier Leron Sims, 26, Topeka, Kan., who was sentenced to 35 months.
Robert Wayne Redmond, 42, Topeka, Kan., who is set for sentencing July 14.
Henry Earl Sirvira, 45, Topeka, Kan., who is awaiting trial.Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Two Individuals Plead Guilty to Conspiring to Launder Bribes Received in AfghanistanRead the Press Release
Two individuals have pleaded guilty for their roles in a scheme to launder approximately $250,000 in bribes received from Afghan contractors in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney for the Western District of Tennessee Edward L. Stanton III and United States Attorney for the Eastern District of Tennessee William C. Killian made the announcement.
Jimmy W. Dennis, 44, formerly of Clarksville, Tennessee, and a former First Sergeant with the U.S. Army, pleaded guilty before U.S. District Court Judge Samuel H. May Jr. of the Western District of Tennessee to conspiracy to launder approximately $250,000 in bribe payments he received from Afghan contractors in Afghanistan. Sentencing is scheduled for Sept. 4, 2014.
James C. Pittman, 45, of Rossville, Georgia, pleaded guilty last Thursday before U.S. Magistrate Judge William B. Carter of the Eastern District of Tennessee for his role in this conspiracy. Sentencing is scheduled for Sept. 8, 2014.
According to pleadings filed at the time of the guilty pleas, from March 2008 through March 2009, Dennis was an Army Sergeant assigned as a paying agent in the Humanitarian Aid Yard (HA Yard) at Bagram Air Field, Afghanistan. Dennis was a member of the team in the HA Yard that purchased supplies from local Afghan vendors for distribution as part of the Commander’s Emergency Response Program for urgent humanitarian relief requirements in Afghanistan. Dennis and a partner entered into an agreement to steer contracts to certain Afghan vendors in return for approximately $250,000 in cash bribes.
Further according to court pleadings, Dennis smuggled the bribe money back to the United States hidden in packages addressed to his wife, his father and a former Army friend, Pittman. Dennis sent $80,000 to $100,000 to his father from Afghanistan in packages that contained toy “jingle trucks,” colorfully decorated trucks or buses in Afghanistan and Pakistan. Dennis hid the money in the rear compartment of the toy trucks. Dennis also shipped a hope chest to his father containing approximately $100,000 in cash in a concealed compartment.
Also according to court documents, while on leave, Dennis met with Pittman, advised him that he had obtained money through kickbacks, and asked him for help laundering the funds. Pittman, owner of a landscaping business, agreed to “run through his company” these bribery proceeds. After returning to Afghanistan, Dennis sent approximately $60,000 to Pittman contained in toy jingle trucks. Dennis also arranged for his father to send approximately $20,000 to Pittman, who returned it in the form of purported salary checks from Pittman’s company.
These matters are being investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, the Army Criminal Investigative Division, the Defense Criminal Investigative Service, and the Air Force Office of Special Investigation. The prosecution is being handled by Trial Attorney Daniel Butler of the Criminal Division and Assistant U.S. Attorneys Frederick Godwin of the Western District of Tennessee and James Brooks of the Eastern District of Tennessee.Two Individuals Plead Guilty to Conspiring to Launder Bribes Received in AfghanistanRead the Press Release
WASHINGTON – Two individuals have pleaded guilty for their roles in a scheme to launder approximately $250,000 in bribes received from Afghan contractors in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney for the Western District of Tennessee Edward L. Stanton III and United States Attorney for the Eastern District of Tennessee William C. Killian made the announcement.
Jimmy W. Dennis, 44, formerly of Clarksville, Tennessee, and a former First Sergeant with the U.S. Army, pleaded guilty before U.S. District Court Judge Samuel H. May Jr. of the Western District of Tennessee to conspiracy to launder approximately $250,000 in bribe payments he received from Afghan contractors in Afghanistan. Sentencing is scheduled for Sept. 4, 2014.
James C. Pittman, 45, of Rossville, Georgia, pleaded guilty last Thursday before U.S. Magistrate Judge William B. Carter of the Eastern District of Tennessee for his role in this conspiracy. Sentencing is scheduled for Sept. 8, 2014.
According to pleadings filed at the time of the guilty pleas, from March 2008 through March 2009, Dennis was an Army Sergeant assigned as a paying agent in the Humanitarian Aid Yard (HA Yard) at Bagram Air Field, Afghanistan. Dennis was a member of the team in the HA Yard that purchased supplies from local Afghan vendors for distribution as part of the Commander’s Emergency Response Program for urgent humanitarian relief requirements in Afghanistan. Dennis and a partner entered into an agreement to steer contracts to certain Afghan vendors in return for approximately $250,000 in cash bribes.
Further according to court pleadings, Dennis smuggled the bribe money back to the United States hidden in packages addressed to his wife, his father and a former Army friend, Pittman. Dennis sent $80,000 to $100,000 to his father from Afghanistan in packages that contained toy “jingle trucks,” colorfully decorated trucks or buses in Afghanistan and Pakistan. Dennis hid the money in the rear compartment of the toy trucks. Dennis also shipped a hope chest to his father containing approximately $100,000 in cash in a concealed compartment.
Also according to court documents, while on leave, Dennis met with Pittman, advised him that he had obtained money through kickbacks, and asked him for help laundering the funds. Pittman, owner of a landscaping business, agreed to “run through his company” these bribery proceeds. After returning to Afghanistan, Dennis sent approximately $60,000 to Pittman contained in toy jingle trucks. Dennis also arranged for his father to send approximately $20,000 to Pittman, who returned it in the form of purported salary checks from Pittman’s company.
These matters are being investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, the Army Criminal Investigative Division, the Defense Criminal Investigative Service, and the Air Force Office of Special Investigation. The prosecution is being handled by Trial Attorney Daniel Butler of the Criminal Division and Assistant U.S. Attorneys Frederick Godwin of the Western District of Tennessee and James Brooks of the Eastern District of Tennessee.
Twenty-One Defendants Charged in Manhattan Federal Court with Participating in Multimillion-Dollar Scheme to Extort Others by Posing as DEA AgentsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, the Administrator of the United States Drug Enforcement Administration (“DEA”), announced today that 21 citizens of the Dominican Republic have been charged with conspiring to impersonate United States law enforcement officers, extortion, and wire fraud. Beginning two weeks ago, authorities in the Dominican Republic, acting on requests from the United States, located and arrested 17 of the defendants in the Dominican Republic, who are now awaiting extradition proceedings in that country. Four defendants remain at-large.
The defendants are alleged to have engaged in a scheme to extort money from individuals located in the United States by posing as DEA Agents or other representatives of the United States Government. The defendants targeted individuals who they believed had illicitly purchased prescription pharmaceuticals through call centers located in the Dominican Republic. As part of the defendants’ scheme, a member of the conspiracy would call a victim located in the United States and identify him- or herself as a DEA agent or representative of another United States agency. The victim would then be told that he or she was under investigation for illegally purchasing prescription drugs, and that the only way to avoid arrest and jail would be to pay a “fine” or some other fee to the DEA. In total, the defendants and others who participated in this scheme and copy-cat schemes demanded at least $3.5 million, and received at least $880,000, in extortionate payments from victims in the United States.
United States Attorney Preet Bharara said: “These defendants generated untold millions of dollars in illicit profits by posing as DEA Agents or other U.S. law enforcement officers. They carried out the internet or telephone equivalent of displaying phony badges to rip off their victims. In the process, the defendants assaulted the good name of the DEA. We commend the DEA for putting a stop to this criminal charade.”
DEA Administrator Michele M. Leonhart said: “These alleged criminals not only bilked thousands of dollars from unsuspecting Americans but they also called into question the integrity and honor of the DEA and all law enforcement. The DEA, with the assistance of our Dominican Republic counterparts, have worked diligently to identify, target and, ultimately, dismantle this group of alleged scam artists. We urge anyone who receives a similar threatening phone call to hang up and contact local or federal law enforcement immediately.”
According to the Indictment, which was unsealed today in Manhattan federal court:
From at least 2008, up to and including March 2013, JULIO SANTANA JOSEPH, FRANCISCO RUBIO MONTALVO, ANGEL PEREZ AVILES, a/k/a “Mike,” DEIVY BURGOS FELIX, CHENGY PADILLA GARO, GEURY GUZMAN ROSA, DANTE CAMINERO VASQUEZ, SAUL HERNANDEZ BATISTA, MOISES DE LA CRUZ DECENA, CELSO MIGUEL SARITA, EDWARD CUEVAS ESCANO, SANTIAGO GUZMAN GONZALEZ, JOSE ARISMENDY CUESTA ABREU, CARLOS PERDOMO ROSARIO, a/k/a “El Depo,” ELINSON REYES ALMONTE, YEURY AMARANTE ROSARIO, MARIO ANTONIO PLACIDO, YGNACIO ESTEVEZ MESSON, BORIS GIL GUERRERO, VICTOR VELASQUEZ ROCHTTIS, a/k/a “Vitico,” and RAFAELA MEDINA, a/k/a “Carolina,” the defendants, and others known and unknown, engaged in a scheme to extort money from individuals located in the United States by posing as DEA Agents or other representatives of the United States Government (the “Impersonation and Extortion Scheme”). Each of the defendants made extortionate calls and/or received money from victims who had been extorted. The Impersonation and Extortion Scheme targeted individuals who the defendants believed had purchased prescription drugs unlawfully over the internet or through call centers. The illicit websites and call centers at issue sold pills to customers that would typically require a doctor’s prescription to purchase. The illicit websites and call centers did not require consumers to obtain the required prescriptions before purchase (hereinafter, the pills sold in this manner are referred to as the “Prescription Drugs”).
The DEA Impersonation and Extortion Scheme typically operated as follows: First, certain of the defendants and other individuals not named as defendants who engaged in the Impersonation and Extortion Scheme (the “Extorters”) purchased, or otherwise obtained, lists of individuals who the Extorters believed had previously purchased Prescription Drugs over the internet on illicit websites or through illicit call centers located in the Dominican Republic (“Customer Lists”). The Customer Lists generally contained the names, addresses, credit card numbers and other information for individuals located in the United States.
Second, an Extorter contacted a customer from the Customer Lists (the “victim”) and identified him- or herself as a DEA agent or representative of another United States agency. Often, the Extorter provided the name of an actual DEA supervisor from a DEA office located in the United States. The Extorters attempted to extort money from victims throughout the United States, including victims in Manhattan and the Bronx, New York.
During a call with a victim, an Extorter falsely informed the victim that authorities in the Dominican Republic or elsewhere were investigating or criminally charging the victim as a result of his or her illegal purchase of Prescription Drugs that were sent to the victim from the Dominican Republic. In a single call or series of calls and emails, the Extorter detailed the purported criminal charges and potential penalties facing the victim, including imprisonment, and the likelihood that the victim would be arrested and extradited to a foreign country for prosecution.
During a call with the victim, an Extorter also generally informed the victim that he or she could dispose of, or avoid, the criminal charges by making a cash payment. In order to do so, the Extorter had the victim transfer between several hundred and several thousand dollars either (i) through a money remitting service to a particular individual in the Dominican Republic, or (ii) via wire transfer to a particular bank account located in the Dominican Republic.
Following receipt of a payment from a victim, an Extorter typically contacted the victim again. During the follow-up conversations, the Extorter demanded additional payments and threatened to have criminal charges re-filed against the victim. If the victim refused to make, or to continue to make, extortion payments to the Extorter, the Extorter threatened the victim with his or her imminent arrest, with searches of the victim’s home in the United States by federal law enforcement officers, or with public disclosure of the victim’s prior purchases of Prescription Drugs.
The Extorters typically made extortion calls from illicit call centers located in the Dominican Republic (the “Call Centers”). In these Call Centers, the Extorters gathered together and used multiple computers equipped with Voice Over Internet Protocol (“VOIP”) technology to make extortion calls to victims listed on a Customer List. VOIP is a means of transmitting digital voice communications over the internet via a high-speed internet connection. The VOIP technology allowed the Extorters to contact their victims by using VOIP lines that made it appear as though the Extorters were calling from telephone numbers with area codes from within the United States. For example, the Extorters used VOIP lines that made it appear as though the Extorters were calling from, among other places, Washington, D.C., and New York, New York, when, in truth, the Extorters were located in the Dominican Republic. The Extorters often made hundreds of extortion calls a day from these Call Centers to victims in the United States.
Once a particular victim made an extortion payment to one of the Extorters, the Extorter who received that payment often shared that victim’s contact information with other Extorters, who then besieged the victim with additional, repeated extortion attempts via telephone. While using these lines to further the Impersonation and Extortion Scheme, the Extorters often traded tips with other Extorters in the same Call Center on the best techniques to use to extort victims.
Beginning in June 2010, the DEA established a telephone hotline (the “Hotline”), to allow victims to report extortion attempts and other contacts with the defendants and other individuals who engaged in the Impersonation and Extortion Scheme and who posed as DEA and other federal agents. Since the Hotline was established in June 2010, through January 2013, the DEA received approximately 6,500 reports from victims of extortion attempts, nearly all of which followed substantially the same pattern described above. In sum, through the Hotline, the DEA has learned of the Extorters’ efforts to obtain over $3.5 million in extortion payments from victims, and of actual extortion payments from victims to the Extorters of over $880,000. These attempted extortions and actual extortion payment amounts reflect only what was reported to the DEA through the Hotline, and thus represent only a portion of the extortion payments that the Extorters have attempted to obtain, or actually obtained, from their victims.
Each of the defendants has been charged with one count of conspiracy to commit wire fraud, and one count of conspiracy to commit extortion, each of which carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Each of the defendants has also been charged with one count of conspiracy to impersonate a United States law enforcement officer, which carries a maximum potential penalty of 5 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the DEA’s Special Operations Division, the New York Field Office of the DEA, the DEA’s Dominican Republic Country Office, the U.S. Department of Justice's Office of International Affairs, the Department of Homeland Security’s Homeland Security Investigations, and the Dominican National Directorate for Drug Control for their work in this investigation.
This prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Ian McGinley and Adam Fee are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Julio Joseph 13 Cr 213 Indictment
Tonawanda Man Charged with Making False Bomb Threat at Military Recruiting CenterRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Jason Gentzke, 25, of Tonawanda, N.Y., was charged by criminal complaint with intentionally conveying false information indicating that the Armed Forces Recruiting Center on Sheridan Drive in Tonawanda would be damaged by an explosive device. The charge carries a maximum possible sentence of five years in prison and a fine of $250,000.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the complaint, on May 27, 2014, the defendant entered the Armed Forces Recruiting Center and threw a suitcase that appeared to contain electronics, cords, and wires into the office and made threatening statements. After the building was evacuated, the Erie County Bomb Squad inspected the suitcase and discovered that it contained a power strip cord, a fish tank filter, and other materials and was not an explosive device.
The defendant will make an appearance on the charges at a later date.
The criminal complaint is the culmination of an investigation on the part of Special Agents of Federal Bureau of Investigation, the Tonawanda Police Department, under the direction of Chief Anthony Palombo, and members of the Erie County Bomb Squad, under the direction of Sheriff Timothy Howard.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.Three Buffalo Police Officers Charged with use of Excessive ForceRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a five-count indictment charging Gregory Kwiatkowski, 49, Raymond Krug, 36, and Joseph Wendel, 37, with using excessive force and conspiring to use excessive force while acting under color of law. The charges carry a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Paul J. Campana, who is handling the case, stated that according to the indictment, on May 31, 2009, defendant Kwiatkowski, a Buffalo Police Lieutenant at the time, used excessive and unnecessary force following the arrest of four young men in Buffalo. Defendants Krug and Wendel are accused of shooting one of the individuals with a BB gun while this young man was seated in the police car, handcuffed next to another of the arrested individuals. All three officers are alleged to have continued to use excessive and unnecessary force when the officers and arrested young men arrived at the police station for processing.
Gregory Kwiatkowski retired from the Buffalo Police Department in 2011.
The indictment is the culmination of an investigation by the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
***If the public has any information regarding potential civil rights violations, please call the FBI Civil Rights Tip Line at 716-843-1796. All information will be kept confidential.
Tank Cleaning Firm Fined $50,000 for Spilling Toxic Acid Near Elementary SchoolRead the Press Release
A San Diego tank cleaning firm was sentenced yesterday by U.S. District Judge Marilyn L. Huff to pay a $50,000 fine for failing to report an acid spill that occurred at its facility.
Pacific Tank Cleaning (PTC), a family-owned business that employs 85 people on three shifts, is engaged in the business of cleaning industrial tanks and piping, primarily aboard ships. On Monday, March 28, 2011, in the former PTC yard on National Avenue in San Diego, the valve on a 275-gallon plastic container (tote) failed, spilling the contents of the tote onto the ground at the facility. The liquid pooled on the concrete at the facility, and flowed out a hole at the base of the wall. The fluid ran down an alley at the rear of the facility (etching the concrete) and pooled along the curb in front of a nearby elementary school.
Two days later a nearby business reported the spill. The San Diego Fire Department Hazardous Incident Response Team (HIRT) and the San Diego County Department of Environmental Health Service, Hazardous Materials Management Division (DEH) responded to the scene, and closed the affected streets and alley. The responders traced the spill from the school, down the alley to the PTC facility. Samples of the liquid pooled in the street and samples of the soil just outside the PTC facility were found to be extremely acidic, with a pH of less than 1. Measured pH values are typically between 14 (most basic) to 0 (most acidic). Pure water has a pH of about 7.
One of the HIRT responders contacted a PTC vice president at the site. The vice president falsely advised that there were no acids at PTC, only contaminated water. The HIRT responder asked to inspect the facility and observed multiple large totes containing a product called Dynamic Descaler which contains hydrochloric acid. There was no evidence of any spill on the grounds of the PTC facility. Although PTC denied that they were the source of the spill, PTC contacted a clean-up company that afternoon. The clean up company washed and vacuumed the remaining liquid from the street and alley and properly disposed of the vacuumed material, at a cost of $17,000 (which was reimbursed to PTC by their insurance carrier).
Subsequently, the criminal investigation revealed that an employee on the first shift at PTC had been directed by Production Manager Jorge Luquin to use the contents of a 275 gallon tote to clean piping that was in the PTC yard that had come from a Navy ship. On March 28, 2011, the first shift employee discovered that the valve on the tote of used acid had failed, spilling the contents. The first shift employee reported the spill to Luquin, and advised Luquin that he had seen liquid in the alley.
Luquin ordered the PTC employees to clean up the spill on the site. PTC employees rinsed the area and vacuumed the liquid from the yard, placing it in another tote at the facility labeled “oily water” that was later sampled by DEH (and relabeled by health officials as “corrosive”). Although PTC had a Health and Safety Manager, that individual was not aware of the spill until the HIRT response two days later. The acid spill involved well over the reportable quantity of a hazardous substance (100 pounds of a corrosive liquid), but upon discovery of the release, PTC did not report it to the National Response Center, or any other governmental agency, as required by law.
PTC pled guilty in February. In addition to the criminal fine, PTC was placed on probation for three years, assessed a $400 penalty, and also ordered to reimburse DEH $11,238.60 for the costs of responding to the spill.
Pacific Tank Cleaning Production Manager Jorge Luquin pled guilty to the Unlawful Discharge of Pollutants in February of 2014. In pleading guilty, Luquin admitted that although he was aware the tank had leaked, he made no effort to contain the spill outside the facility, which allowed the acid to enter the storm drain system and ultimately the waters of the United States. Luquin is scheduled to be sentenced on June 24, 2014, at 1:30 p.m. before the Honorable Mitchell D. Dembin.
DEFENDANT Case Number: 14CR395-H Pacific Tank Cleaning, Inc Incorporated: 1996 San Diego, CA CHARGESFailure to Report a Release, a felony, in violation of Title 42, United States Code, Sections 9602 and 9603
Maximum Penalty for a corporation: 5 years of probation, a $500,000 fine, $400 special assessment
DEFENDANT Criminal Case No. 14CR394-MDD Jorge Luquin CHARGESUnlawful Discharge of Pollutants, a misdemeanor, in violation of Title 33, United States Code, Sections 1311, 1342 and 1319(c)(1)(A)
INVESTIGATING AGENCY
Maximum Penalty: 1 year in custody, a fine of at least $2500 but not more than $25,000 per day of violation, $25 special assessmentU.S. Environmental Protection Agency, Criminal Investigation Division
Federal Bureau of Investigation
San Diego County Department of Environmental Health Services, Hazardous Materials Management Division*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Statement by Attorney General Holder <br /> on the Passing of Maya AngelouRead the Press Release
Attorney General Eric Holder today issued the following statement on the passing of Maya Angelou:
“I was deeply saddened to learn of the passing of Maya Angelou, a true national treasure whom I have admired greatly for many, many years.
“Dr. Angelou was much more than a literary genius, a chronicler of Jim Crow, and a witness to history. Through her extraordinary work, she captured the tenacity of the human spirit and spoke of harsh realities in the most evocative, moving, and lyrical of ways. Over the course of a career spanning some of the most tumultuous decades of the last century, she taught us how to rise above ‘a past that’s rooted in pain.’ She gave voice to a people too often shut out of America’s public discourse. She displayed remarkable courage in the face of tremendous adversity. And she inspired generations to overcome life’s greatest challenges – through her extensive writings, her performances, her advocacy, her educational work, and her principled activism.
“For my family and me, Maya Angelou will always be much more than a great American and an icon in world literature. She is the namesake of one of my daughters, who met her as a young girl and celebrated her twenty-first birthday just one day before the elder Maya was lost to us. Although our hearts are filled with grief at the news of her passing – a sorrow made all the more acute by the knowledge that we shall not see her like again – she will continue to be a source of strength and inspiration. She will endure in the singular body of work she leaves behind. And she will live on in the shining example that guides our steps forward and fuels the work that remains.
“We have lost a legend, a trailblazer in the truest sense, and one of the guiding lights of the 20th century. Yet despite our heartache and our pain, Maya Angelou will always be with us. Her voice will continue to console, to challenge, and to inspire us. We bid her farewell today. But we know that, even now, ‘into a daybreak that’s wondrously clear,’ still she rises.”
State Audit Director Convicted of Theft from A Federally-funded EntityRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today a conviction in the ongoing federal and state investigation into corruption at the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS).
DELRICE J. AUGUSTUS, age 34, of Baton Rouge, Louisiana, pled guilty this morning before U.S. District Judge Shelly Dick to a Superseding Bill of Information charging him with theft from a federally-funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A), and forfeiture. Augustus faces up to 10 years imprisonment, a fine up to $250,000, forfeiture of the proceeds of the offense, and up to 3 years of supervised release following imprisonment. A sentencing date has not yet been set.
As required by the Plea Agreement, Augustus has resigned his position as the Director of the Bureau of Auditing and Compliance Services for DCFS, a state agency which receives over a billion dollars ($1,000,000,000) in federal funding annually. As Director, Augustus reported directly to the Secretary of DCFS and led the office responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded properly; and ensuring compliance with management policies, as well as federal and state laws and regulations.
At today’s hearing, Augustus admitted to using his official position to defraud DCFS out of between $120,000 and $200,000 through the following three schemes.
• Augustus admitted to fraudulently misusing government purchasing cards to obtain items for personal use for himself and others, including an installed dishwasher, televisions, movies, cameras, wireless audio systems, such as Sonos and Jawbone, gaming devices, such as Xboxes, Wii and Leapsters, mobile devices, such as I-Pads, Kindle Fires, and an I-Phone 5, Dyson vacuums, rental vehicles, hotel rooms, and fuel.
• Augustus admitted to misusing and causing others to misuse state travel and gas cards to pay for personal travel and entertainment expenses for himself and others, including gas, rental vehicles, and hotel stays. One such occasion involved purchasing hotel suites in New Orleans for Mardi Gras and the NBA All-Star Game.
• Augustus admitted to engaging in a scheme to create and use fraudulent documents to request and receive reimbursement from the State of Louisiana for official travel that did not occur. Augustus would sign and submit reimbursement claims for expenses he falsely claimed to have incurred as part of his official duties. Augustus would cause the signature of the Secretary of the Louisiana Department of Children and Family Services to appear on his fraudulent reimbursement claims as approving such claims, when, in fact, the Secretary had neither approved the claims nor authorized her signature to be used in such a manner. Augustus would also create fraudulent documents reflecting that C.P. and K.G., who were employees in the Auditor’s Office, had incurred certain expenses related to official travel. C.P. and K.G. would sign the fraudulent reimbursement requests as the requesting employees, and Augustus would sign as the approving supervisor. The State would pay the requested amount to C.P. and K.G. who would split the proceeds with Augustus.
This matter is being handled by the United States Attorney’s Office, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Corey R. Amundson, who serves as the Chief of the Criminal Division, and Special Assistant United States Attorney J. Brad Casey.
U.S. Attorney Green stated: “This case is a great illustration of federal and state agencies successfully working together to root out public corruption. Federal funding is often distributed through state and local entities and the integrity of that distribution network and those entrusted to protect it is vitally important. Our office, together with our federal, state, and local partners, will continue to aggressively battle public corruption wherever found.”
Louisiana Inspector General Stephen Street commented: “The most disappointing thing about this case is the position of high trust held by Mr. Augustus within DCFS. He took full advantage of that trust to steal money from the taxpayers. Today’s guilty plea should send a clear message that the law enforcement community has zero tolerance for this sort of corruption, and will continue working together relentlessly to bring about criminal consequences for it. I want to again acknowledge and thank LSP Colonel Mike Edmonson, U.S. Attorney Walt Green, and FBI Special Agent in Charge Michael Anderson for the outstanding work done by their respective staffs on this case.”
Colonel Mike Edmonson, Louisiana State Police Superintendent, stated: “There are no boundaries when it comes to federal, state, and local law enforcement working together to fight corruption at any level. The public demands that people in trusted positions are kept to and held to a higher standard of integrity. Violations of the public trust must be dealt with swiftly and directly.”
DCFS leadership has fully cooperated with the investigation and has provided valuable assistance throughout. Such assistance and cooperation is highly commendable and reflects a collective determination by law enforcement and DCFS leadership to root out the corruption identified in this matter.
St. Paul Felon Sentenced for Possession of A FirearmRead the Press Release
MINNEAPOLIS — Yesterday in federal court, a 26-year-old felon from St. Paul was sentenced for possessing a nine-millimeter semi-automatic handgun. United States District Court Judge Patrick J. Schiltz sentenced Gary James Rolfer, Jr. to 63 months in federal prison, followed by three years of supervised release, for one count of being a felon in possession of a firearm. Rolfer was indicted on August 5, 2013, and pleaded guilty on October 3, 2013.
According to the plea agreement, while responding to a “shots fired” call near a St. Paul residence, police officers observed Rolfer riding in a vehicle and holding a handgun outside of the front passenger window. During a subsequent pursuit and traffic stop, officers found an unspent nine-millimeter round in the front passenger door, but did not find the handgun. After backtracking the route taken by the vehicle, the officers found the nine-millimeter Smith & Wesson semi-automatic handgun in a back yard. Subsequent investigation found that the firearm was stolen.
Because Rolfer is a convicted felon, he is prohibited from possessing a firearm at any time. His felony records include a Ramsey County conviction for a controlled substance crime in 2005; a Hennepin County conviction for fleeing a police officer in a motor vehicle in 2005; and a Ramsey County conviction for criminal damage to property in 2006.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Paul Police Department. It was prosecuted by Assistant United States Attorney Allen A. Slaughter.Smith County Woman Sentenced for Food Stamp Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A 42-year-old Bullard, Texas, woman has been sentenced to federal prison for her role in a food stamp fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Monica Bunch, also known as, Monica Hernandez, pleaded guilty on Aug. 8, 2013 to conspiracy to unlawfully use, transfer, acquire, and possess SNAP (Supplemental Nutrition Assistance Program) benefits and was sentenced to six months in federal prison today by U.S. District Judge Michael H. Schneider. Bunch was also ordered to pay restitution in the amount of $72,846.09 to the U.S. Department of Agriculture and to forfeit the proceeds of the fraud scheme.
According to the indictment, from January 2007 through March 31, 2012, Bunch, a clerk with the Texas Health and Human Services Commission (HHSC) in Jacksonville, Texas, and her co-conspirators, devised and carried out a scheme to unlawfully obtain SNAP benefits. In her position as clerk at HHSC, Bunch identified dormant SNAP accounts belonging to individuals who did not live in or around Jacksonville, Texas, or who had moved away from the Jacksonville, Texas, area. Using the dormant accounts, Bunch created replacement Lone Star cards and forged and created documents to conceal the unlawful creation of the cards. Bunch sold the cards to the other defendants at approximately half of the card's actual SNAP benefit value. Bunch also provided the defendants with the PIN numbers associated with the cards. The defendants used the cards to purchase food from retailers in and around the Jacksonville, Texas, area and the Tyler, Texas, area.
On July 25, 2013, a federal grand jury returned an indictment charging Bunch, Ernest Grady, 47, Evelyn Whitaker, 47, Genoveve Servin, 49, Maria Silva, 50, and Maria Delrosario Padron a/k/a “Chayo”, 38, all of Jacksonville, with conspiracy to unlawfully use, transfer, acquire, and possess SNAP Benefits.
“The United States Department of Agriculture, Office of Inspector General-Investigations is dedicated to combating fraud and abuses in SNAP,” said Special Agent-in-Charge Mary L. Lewis of the United States Department of Agriculture, Office of Inspector General-Investigations (USDA-OIG). “I commend the coordinated investigative efforts of State and Federal agencies that led to the successful prosecution of this case.”
U.S. Attorney Bales also praised the investigative team and added, “SNAP is an expensive and vitally important aid program that assists deserving individuals and families who might otherwise go hungry. Hopefully, the felony conviction and sentencing to prison of Monica Bunch sends a message to anyone who thinks they can rip off the American taxpayer – you will be held to account.”
SNAP is a federal government program, administered by the United States Department of Agriculture (USDA) Food and Nutrition Service (FNS), which helps qualifying individuals and families buy food.
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General-Investigations, U.S. Secret Service, and the State of Texas, Health and Human Services Commission, Office of Inspector General-Internal Affairs. Assistant U.S. Attorney Nathaniel C. Kummerfeld prosecuted this case.
#######Shreveport Man Pleads Guilty to Possessing Child PornographyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that Mickey Williams, 35, of Shreveport, La., pleaded guilty on Tuesday before U.S. District Judge Elizabeth Foote, to possessing child pornography.
According to evidence presented at the guilty plea, law enforcement agents discovered Williams was downloading child pornography using an internet image board. Agents searched Williams’ home on January 28, 2012. After searching the electronic devices and computers found in the home, approximately 150 images of child pornography and one video were found. Some of the images contained prepubescent child pornography and bestiality.
Williams faces up to 10 years in prison, five years to life of supervised release, and up to a $250,000 fine for one count of possessing child pornography. He also faces forfeiture of the devices used in the crime. A sentencing date of September 25, 2014 was set.Immigrations and Customs Enforcement-Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case. This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Romanian Citizens Involved in Internet Phishing Scheme Are SentencedRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two more Romanian citizens have been sentenced for their participation in an extensive Internet “phishing” scheme. On May 27, CIPRIAN DUMITRU TUDOR, 33, was sentenced by Chief U.S. District Judge Janet C. Hall in New Haven to 14 months of imprisonment. On May 23, BOGDAN-MIRCEA STOICA, 34, was sentenced by Judge Hall to approximately 27 months of imprisonment, time already served.
TUDOR and STOICA were extradited from Romania following the ratification in 2010 of an amended treaty on mutual legal assistance between Romania and the United States. TUDOR was arrested by Romanian authorities in November 2013, and he was extradited to the U.S. that same month. He previously had served a sentence of imprisonment in Romania for related crimes. STOICA was arrested by Romanian authorities in February 2012 and was extradited to the U.S. in April 2012.
A phishing scheme uses the Internet to target large numbers of unwary individuals, using fraud and deceit to obtain private personal and financial information such as names, addresses, bank account numbers, credit card numbers and Social Security numbers. Phishing schemes often work by sending out large numbers of counterfeit e-mail messages that are made to appear as if they originated from legitimate banks, financial institutions or other companies. The fraudulent email messages ask individuals to click on a hyperlink contained in the email message, which would take the individual to a counterfeit site on the Internet that purports to be the Internet site of the particular bank, financial institution or company. At the counterfeit Internet site, the individual is then asked to enter information such as the individual’s name, address and credit or debit card numbers.
According to court documents and statements made in court, in June 2005 a resident of Madison, Conn., contacted the FBI in New Haven about a suspicious email that she had received that purported to be from Connecticut-based People’s Bank. The email stated that the recipient’s online banking access profile had been locked and instructed the recipient to click on a link to a web page where the recipient could enter information to “unlock” his or her profile. The web page appeared to originate from People’s Bank, but, as the investigation revealed, was actually hosted on a compromised computer in Minnesota. Any personal identifying and financial information provided by the individual would be sent by email to individuals in Romania, or to a “collector” account, which was an email account used to receive and collect the information obtained through phishing.
TUDOR, STOICA and others were part of a loose-knit conspiracy of individuals from Craiova, Romania, and neighboring areas that shared files, tools, and stolen information obtained through phishing. The co-conspirators used and shared a number of collector accounts, which contained thousands of email messages that contained credit or debit card numbers, expiration dates, CVV codes, PIN numbers, and other personal identification information such as names, addresses, telephone numbers, dates of birth, and Social Security numbers. The co-conspirators then used the personal and financial information to access bank accounts and lines of credit and to withdraw funds without authorization, often from ATMs in Romania.
In addition to People’s Bank, financial institutions and companies targeted by the defendants included Citibank, Capital One, Bank of America, JPMorgan Chase & Co., Comerica Bank, Regions Bank, LaSalle Bank, U.S. Bank, Wells Fargo & Co., eBay and PayPal.
This investigation, which resulted in criminal charges against 19 Romanian citizens, has been conducted by the Federal Bureau of Investigation in New Haven, Conn.
U.S. Attorney Daly acknowledged the critical assistance provided by the U.S. Department of Justice Office of International Affairs, the FBI Legal Attaché in Bucharest, Interpol, the Romanian National Police and the United States Marshals Service.
The case is being prosecuted by Assistant U.S. Attorneys Edward Chang and Sarala Nagala.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Roger France Sentenced to 108 Months for Possession of A Firearm After Having Been Convicted of A Felony OffenseRead the Press Release
GREENEVILLE, Tenn. – Roger D. France, 28, of White Pine, Tenn., was sentenced to serve 108 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge, on May 28, 2014. Upon his release from prison, France will be subject to supervised release under the supervision of the U.S. Probation Office for three years. There is no parole in the federal system.
France pleaded guilty in February 2014 to being a convicted felon in possession of a firearm. During an undercover law enforcement investigation, France, along with co-defendant Roger Thornton, sold stolen firearms from a burglary earlier that day in Cosby, Tenn. At the time that he sold the stolen firearms, France was a convicted felon, having been previously convicted of aggravated burglary in Jefferson County. Thornton, who is also a convicted felon, also pleaded guilty in this case and is scheduled to be sentenced in U.S. District Court on July 28, 2014.
Law enforcement agencies participating in the joint investigation included the Fourth Judicial District Drug Task Force, Tennessee Bureau of Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Rochester man pleads to 1998 murderRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Pablo Plaza, of Rochester, N.Y., 38, pleaded guilty to the commission of a murder while engaged in a drug trafficking conspiracy before U.S. District judge Frank P. Geraci. The charge carries a mandatory minimum penalty of 20 years and a maximum of life, and a $250,000.
Assistant U.S. Attorney Everardo A. Rodriguez, who is handling the case, stated that the defendant murdered Francisco Santos at the Seneca Indian Reservation in Erie County, N.Y., in October 1998. The murder was part of a drug trafficking conspiracy in the Rochester area, which included cocaine, crack cocaine, heroin and marijuana, from 1993 to March 2011.
“This conviction is proof that no matter how long ago a murder was committed, this office will continue to relentlessly investigate and prosecute those responsible for such violent episodes,” said U.S. Attorney Hochul.
The victim, Francisco Santos, was a member of the drug distribution conspiracy and was believed to have stolen drugs and money from other members of the conspiracy. In retaliation for the theft, Plaza and other members of the conspiracy assaulted Santos and one of the other conspiracy members slashed Santos across the side of the head with a knife. Sometime after the beating, the co-conspirator who slashed Santos on the head was arrested for the assault.
To further retaliate for the original theft and to prevent Santos from testifying against the co-conspirator on the assault charge, Plaza and a group of other co-conspirators found Santos and drove him to the Seneca Indian Reservation. Once at the reservation, they took Santos down a dirt path behind some trees and stabbed him to death and buried him in a shallow grave. Plaza admitted to having personally stabbed Santos and to having observed other coconspirators also stabbing him.
In addition, the defendant was present for the beating death of Ryan Cooper. Plaza stated that Cooper learned about Santos’ murder and wanted to report it to the police. The defendant explained that one of the men involved in the Santos murder learned what Cooper was saying. Plaza stated that one day while Cooper was at his residence, two co-conspirators came to Plaza’s apartment, confronted Cooper and then attacked Cooper and killed him. Bags containing Cooper’s remains were later dumped behind a school near some railroad tracks in Rochester.
Plaza was charged along with four other defendants with the murder of Francisco Santos. Also charged: James Kendrick, Pablo Plaza, born in 1972 (Plaza’s older brother with the same name), Janine Plaza Pierce, the mother of Kendrick and the older Plaza, and Angelo Cruz. Kendrick is also charged with the murder of Ryan Cooper. The trial of these remaining defendants is expected to take place later this year or early 2015.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
Sentencing is scheduled for September 2, 2014 at 3:00 pm. before Judge Geraci.
The plea is the culmination of a joint investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division, under the direction of Special Agent in Charge Thomas J. Cannon, and the Rochester Police Department, Violent Crime Team/Firearms Suppression Unit, under the direction of Chief Michael Ciminelli. Numerous federal, state and local law enforcement agencies assisted in the investigation, including the New York State Police, under the direction of Major Robert T. Meyers and Major Mark Koss; the Erie County Sheriff=s Department, under the direction of Sheriff Timothy B. Howard; the Federal Bureau of Investigation; the United States Drug Enforcement Agency, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division. Also assisting in the investigation was the Schenectady County District Attorney=s Office, under the Direction of District Attorney Robert M. Carney.Ringleader of International Rhino Smuggling ConspiracySentenced in New Jersey to 70 Months in Prisonfor Wildlife Trafficking CrimesRead the Press Release
Zhifei Li, the owner of an antique business in China, was sentenced today to serve 70 months in prison for heading an illegal wildlife smuggling conspiracy in which 30 rhinoceros horns and numerous objects made from rhino horn and elephant ivory worth more than $4.5 million were smuggled from the United States to China.
The sentence – one of the longest sentences to be imposed in the United States for a wildlife smuggling offense – was announced by Sam Hirsch, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice; Paul J. Fishman, U.S. Attorney for the District of New Jersey; Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida; and Dan Ashe, Director of the U.S. Fish and Wildlife Service (USFWS).
Li, 30, of Shandong, China, the owner of Overseas Treasure Finding in Shandong, previously pleaded guilty before U.S. District Judge Esther Salas to a total of 11 counts: one count of conspiracy to smuggle and violate the Lacey Act; seven counts of smuggling; one count of illegal wildlife trafficking in violation of the Lacey Act; and two counts of making false wildlife documents. Judge Salas also imposed the sentence today in Newark federal court.
“Li was the ringleader of a criminal enterprise that spanned the globe and profited from an illegal trade that is pushing endangered animals toward extinction,” said Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division. “As this case clearly demonstrates, rhino trafficking is increasingly organized, well financed, and a threat to the rule of law. The United States is resolved to bring wildlife traffickers to justice.”
“The multibillion-dollar illegal wildlife market is supplied by animal poaching of unthinkable brutality and fed by those willing to profit from such cruelty,” said U.S. Attorney Fishman. “Zhifei Li appropriately faces 70 months in prison for orchestrating schemes worth millions of dollars and for violating laws meant to protect the most vulnerable species.”
“Wild populations of rhinos are being slaughtered at appalling rates due to the greed and indifference of criminals like Li and his accomplices,” said U.S. Fish and Wildlife Service Director Dan Ashe. “The sentence handed down today serves notice to other organized trafficking and poaching rings that their crimes will not go unpunished. We will relentlessly work across the U.S. government and with the international law enforcement community to destroy these networks, while strengthening protections for rhinos in the wild and reducing demand for horn in consumer countries.”
Li was arrested in Florida in January 2013, shortly after arriving in the country, on federal charges brought under seal in New Jersey. Before he was arrested, he purchased two endangered black rhinoceros horns from an undercover USFWS agent in a Miami Beach hotel room for $59,000 while attending an antique show. Li was arrested as part of “Operation Crash” – a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns and other protected species.
In papers filed in Newark federal court, Li admitted that he was the “boss” of three antique dealers in the United States whom he paid to help obtain wildlife items and smuggle them to him via Hong Kong. One of those individuals was Qiang Wang, aka “Jeffrey Wang,” who was sentenced to 37 months in prison on Dec. 5, 2013, in the Southern District of New York . Li played a leadership and organizational role in the smuggling conspiracy by arranging for financing to pay for the wildlife, purchasing and negotiating prices, directing how to smuggle the items out of the United States, and getting the assistance of additional collaborators in Hong Kong to receive the goods and smuggle them to him in mainland China.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (known as CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
In pleading guilty, Li admitted that he sold 30 smuggled, raw rhinoceros horns worth approximately $3 million – approximately $17,500 per pound – to factories in China where raw rhinoceros horns are carved into fake antiques known as Zuo Jiu (which means “to make it as old” in Mandarin). In China, there is a centuries old tradition of drinking from an intricately carved “libation cup” made from a rhinoceros horn. Owning or drinking from such a cup is believed by some to bring good health, and true antiques are highly prized by collectors. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including recently carved fake antiques.
In addition to the prison term, Judge Salas ordered Li to serve two years of supervised release and to forfeit $3.5 million in proceeds of his criminal activity as well as several Asian artifacts. Various ivory objects seized by the USFWS as part of the investigation have also been surrendered.
The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of New Jersey, the U.S. Attorney’s Office for the Southern District of Florida and the Justice Department’s Environmental Crimes Section.
The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary and Barbara Ward of the New Jersey U.S. Attorney’s Office Criminal Division and Asset Forfeiture and Money Laundering Unit, Assistant U.S. Attorney Thomas Watts-FitzGerald of the U.S. Attorney’s Office for the Southern District of Florida and Senior Counsel Richard A. Udell of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Additional information, including a detailed joint factual statement and photo exhibits can be found here: http://go.usa.gov/8nYYRingleader of International Rhino Smuggling Conspiracy Sentenced in New Jersey to 70 Months in Prison for Wildlife Trafficking CrimesRead the Press Release
Zhifei Li, the owner of an antique business in China, was sentenced today to serve 70 months in prison for heading an illegal wildlife smuggling conspiracy in which 30 rhinoceros horns and numerous objects made from rhino horn and elephant ivory worth more than $4.5 million were smuggled from the United States to China.
The sentence – one of the longest sentences to be imposed in the United States for a wildlife smuggling offense – was announced by Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida; Sam Hirsch, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice; Paul J. Fishman, U.S. Attorney for the District of New Jersey; and Dan Ashe, Director of the U.S. Fish and Wildlife Service (USFWS).
Li, 30, of Shandong, China, the owner of Overseas Treasure Finding in Shandong, previously pleaded guilty before U.S. District Judge Esther Salas to a total of 11 counts: one count of conspiracy to smuggle and violate the Lacey Act; seven counts of smuggling; one count of illegal wildlife trafficking in violation of the Lacey Act; and two counts of making false wildlife documents. Judge Salas also imposed the sentence today in Newark federal court.
“Li was the ringleader of a criminal enterprise that spanned the globe and profited from an illegal trade that is pushing endangered animals toward extinction,” said Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division. “As this case clearly demonstrates, rhino trafficking is increasingly organized, well financed, and a threat to the rule of law. The United States is resolved to bring wildlife traffickers to justice.”
“The multibillion-dollar illegal wildlife market is supplied by animal poaching of unthinkable brutality and fed by those willing to profit from such cruelty,” said U.S. Attorney Fishman. “Zhifei Li appropriately faces 70 months in prison for orchestrating schemes worth millions of dollars and for violating laws meant to protect the most vulnerable species.”
“Wild populations of rhinos are being slaughtered at appalling rates due to the greed and indifference of criminals like Li and his accomplices,” said U.S. Fish and Wildlife Service Director Dan Ashe. “The sentence handed down today serves notice to other organized trafficking and poaching rings that their crimes will not go unpunished. We will relentlessly work across the U.S. government and with the international law enforcement community to destroy these networks, while strengthening protections for rhinos in the wild and reducing demand for horn in consumer countries.”
Li was arrested in Florida in January 2013, shortly after arriving in the country, on federal charges brought under seal in New Jersey. Before he was arrested, he purchased two endangered black rhinoceros horns from an undercover USFWS agent in a Miami Beach hotel room for $59,000 while attending an antique show. Li was arrested as part of “Operation Crash” – a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns and other protected species.
In papers filed in Newark federal court, Li admitted that he was the “boss” of three antique dealers in the United States whom he paid to help obtain wildlife items and smuggle them to him via Hong Kong. One of those individuals was Qiang Wang, aka “Jeffrey Wang,” who was sentenced to 37 months in prison on Dec. 5, 2013, in the Southern District of New York. Li played a leadership and organizational role in the smuggling conspiracy by arranging for financing to pay for the wildlife, purchasing and negotiating prices, directing how to smuggle the items out of the United States, and getting the assistance of additional collaborators in Hong Kong to receive the goods and smuggle them to him in mainland China.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (known as CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
In pleading guilty, Li admitted that he sold 30 smuggled, raw rhinoceros horns worth approximately $3 million – approximately $17,500 per pound – to factories in China where raw rhinoceros horns are carved into fake antiques known as Zuo Jiu (which means “to make it as old” in Mandarin). In China, there is a centuries old tradition of drinking from an intricately carved “libation cup” made from a rhinoceros horn. Owning or drinking from such a cup is believed by some to bring good health, and true antiques are highly prized by collectors. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including recently carved fake antiques.
In addition to the prison term, Judge Salas ordered Li to serve two years of supervised release and to forfeit $3.5 million in proceeds of his criminal activity as well as several Asian artifacts. Various ivory objects seized by the USFWS as part of the investigation have also been surrendered.
The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of New Jersey, the U.S. Attorney’s Office for the Southern District of Florida and the Justice Department’s Environmental Crimes Section.
The government is represented by Assistant U.S. Attorney Thomas Watts-FitzGerald of the U.S. Attorney’s Office for the Southern District of Florida, Assistant U.S. Attorneys Kathleen P. O’Leary and Barbara Ward of the New Jersey U.S. Attorney’s Office Criminal Division and Asset Forfeiture and Money Laundering Unit, and Senior Counsel Richard A. Udell of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Additional information, including a detailed joint factual statement and photo exhibits can be found here: http://go.usa.gov/8nYY.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Philadelphia La Cosa Nostra Soldier <br /> Sentenced to Serve 27 Months in PrisonRead the Press Release
Eric Esposito was sentenced today to serve 27 months in prison for conducting an illegal gambling business on behalf of the Philadelphia La Cosa Nostra Family, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division .
Esposito, 43, of Philadelphia, was sentenced by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania. In addition to his prison term, Esposito was sentenced to serve three years of supervised release and ordered to pay a fine of $4,000.
On Feb. 21, 2014, after a week-long trial, a jury convicted Esposito of conducting an illegal gambling business involving the use of video poker machines at a private social club known as the “First Ward Republican Club” in South Philadelphia. According to evidence presented at trial, as a fully initiated mob soldier, Esposito worked in concert with other mob members to carry out this illegal gambling business on behalf of the Philadelphia La Cosa Nostra Family.
A total of 13 leaders, members and associates of the Philadelphia La Cosa Nostra Family have pleaded guilty or been convicted by a jury as part of this case. To date, 12 defendants, including Esposito, have been sentenced, and one is awaiting sentencing.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
The case was investigated by the FBI, the Internal Revenue Service-Criminal Investigations, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.Parma Couple Indicted for Distributing Heroin and Operating A Drug HouseRead the Press Release
A five-count indictment was filed today charging a Parma couple with running a heroin distribution operation from an apartment on West 50th Street, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Michael A. Austin, 34, and Chavone Burnett, 32, both of Parma, were charged with conspiracy, multiple counts of possession with the intent to distribute heroin, and maintaining one or more properties for the purpose of unlawfully manufacturing, storing, distributing and using heroin.
Austin, with the assistance of Burnett, obtained Apartment 3305 at 5556 Broadview Road (Midtown Tower Apartments) in Parma, to list as his residence with Austin’s U.S. Probation Officer. With Burnett’s assistance, he also obtained another residence at 5223 West 50th Street, Parma, for the purpose of storing and distributing heroin, as well as paraphernalia such as scales and baggies, according to the indictment.
Austin and Burnett obtained heroin from various distributors throughout Cleveland with intent to distribute the heroin at various dates in April 2014, according to the indictment.
Prosecutors are seeking to forfeit $11,243 in cash seized from the two Parma addresses.
The indictment results from an investigation conducted by the Parma Police Department and the Federal Bureau of Investigation.
The case was presented for indictment by Assistant United States Attorneys Christian Stickan and Special Assistant United States Attorney Margaret Tomaro, of the Ohio Attorney General’s Office.
If convicted, the defendants’ 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 violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Parker County Woman Sentenced in Extensive Mortgage Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas - A 53-year-old Aledo, Texas woman has been sentenced to federal prison for her role in a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Donna Shirley Cobb pleaded guilty on Oct. 16, 2013 to conspiracy to defraud the United States and was sentenced to 21 months in federal prison today by U.S. District Judge Thad Heartfield. Cobb was also ordered to pay restitution in the amount of $2,151,376.00.
According to information presented in court, from 2005 to 2008, Cobb, an escrow officer with Title Texas, Inc., was involved in a conspiracy to defraud lending institutions by providing fraudulent documents and causing residential loans to be provided based on the fraudulent information. One such property was located on Carlton Court in McKinney, Texas. A total of 28 properties located in Cedar Hill, Cresson, Dallas, Euless, Fairview, Fort Worth, Frisco, Heath, Hurst, McKinney, Murphy, Plano, Prosper, and Watauga, Texas, were involved in the scheme.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. This case was prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.
#######Oxford Junction Man Sentenced to 40 Years for Sexually Exploiting Two ChildrenRead the Press Release
A man who sexually exploited two children was sentenced May 27, 2014, to 40 years in federal prison.
Nicholas Appleby, age 32, of Oxford Junction, Iowa, received the sentence after a December 26, 2013, guilty plea to one count of sexual exploitation of children and one count of possession of child pornography. At the guilty plea hearing, Appleby admitted that, in 2011 and 2012, he persuaded, induced, and enticed two female minors to engage in sexually explicit conduct for the purpose of producing visual depictions of this conduct. Defendant also admitted to possessing pornographic images of these minors.
Appleby was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Appleby was sentenced to 480 months’ imprisonment. A special assessment of $200 was imposed, and Appleby must also serve a 20-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Jones County Sheriff’s Office and the Iowa Internet Crimes Against Children Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-36.
Owner of Pennsylvania Company Pleads Guilty to Violating the Clean Water ActRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Leo M. Williams, 65, the owner of Lycoming Construction Services, LLC, a Pennsylvania company located in Williamsport, Pennsylvania, pleaded guilty before U.S. District Court Chief William M. Skretny, to violating the Clean Water Act. The charge carries a maximum penalty of one year in prison, a fine of $25,000 per day of violation, or both.
Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that from January 2012 to November 2013, the defendant was involved in the demolition of the Dahlstrom industrial complex, located at 443-499 Buffalo Street in Jamestown, N.Y. The project involved the demolition of a cluster of condemned buildings on either side of the Chadakoin River, which is a water of the United States. During the demolition, a significant amount of water contaminated with dust and debris from the demolition flowed offsite directly into the Chadakoin River. Williams should have been aware that such contaminated water was flowing into the river, and acted negligently in allowing the water to be discharged.
“The nation’s clean water laws are intended to protect the health of the public and environment alike,” said U.S. Attorney Hochul. “This office will continue to enforce such laws in order to preserve both for present and future generations.”
“The defendant in this case conducted a demolition project which released a significant amount of water contaminated with dust and debris directly into the Chadakoin River, endangering public health and the environment,” said Vernesa Jones-Allen, Special Agent in Charge of EPA’s criminal enforcement program in New York. “Today’s plea should serve as notice that EPA and its partner agencies remain committed to protecting communities through tough enforcement of the nation’s environmental laws.”
Sentencing is scheduled for September 3, 2014, at 2:00 p.m. before Judge Skretny.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent-In-Charge Neal R. Marzloff; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau and the U.S. Occupational Safety and Health Administration.Old Orchard Beach Man Sentenced to 2½ Years for Child Pornography PossessionRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Carl E.
Johnson, 51, currently of Old Orchard Beach and formerly of Bailey Island, Maine, was sentenced in U.S. District Court by Judge Nancy Torresen to 2½ years in prison and five years of supervised release for possession of child pornography. Johnson pled guilty on September 5, 2013.According to court records, the defendant used peer-to-peer software to access and make available for sharing images and videos of child pornography. Federal agents discovered some of the child pornography online, traced it to Johnson’s computer, seized and examined the computer, and found over 290 images and over 50 videos of child pornography.
In imposing sentence, Judge Torresen observed that child pornography crimes are very serious. Children are tortured to create child pornography and they are humiliated by the fact that it persists and circulates. People, like Johnson, who possess child pornography fuel the demand for its creation.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland
Security Investigations.Ochoa-Perez Indicted on Additional ChargeRead the Press Release
LAREDO, Texas – A federal grand jury has added a charge of conspiracy to possess with the intent to distribute heroin, cocaine and methamphetamine to the current kidnapping allegations against Raul Ochoa-Perez, announced United States Attorney Kenneth Magidson.
Ochoa-Perez, 42, of Laredo, was originally indicted for conspiracy to kidnap and kidnapping on May 14, 2014. The new charge alleges Ochoa-Perez has been a part of a conspiracy to transport drug-laden fire extinguishers since at least 2012. Further, the indictment alleges that in the course of the drug conspiracy, Ochoa-Perez had another individual abducted, bound and taken to Mexico where Ochoa-Perez threatened the lives of that individual’s family if he did not work for him.
Following the return of the original indictment, he made an appearance before U.S. Magistrate Judge J. Scott Hacker, at which time he was ordered detained pending further criminal proceedings. He is expected to appear again on the new charges in the near future.
Ochoa-Perez faces a mandatory minimum of 10 years and up to life in prison, upon conviction, as well as a potential $10 million fine. The U.S. is also seeking a money judgment in the amount of $3,066,975.
The case is the result of an investigation led by the FBI with the assistance of Homeland Security Investigations, Drug Enforcement Administration and Texas Department of Public Safety. Assistant United States Attorney James Hepburn is the handling the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.New York Man Sentenced to Three Years in Prison, Ordered to Repay $1.5 Million After Skimming from Trucking CompaniesRead the Press Release
A New York man was sentenced to three years in prison and ordered to pay more than $1.5 million in restitution for his role in a conspiracy that skimmed more than $1.7 million from trucking companies, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Special Agent in Charge Marlon Miller, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit, which covers Michigan and Ohio.
Dilshod Sidikov, aka “Dema”, 26, of Brooklyn, N.Y., was sentenced to 37 months in prison after previously pleading guilty to conspiracy to commit wire fraud and money laundering.
“Criminal enterprises are constantly coming up with new ways to rip off companies, consumers and customers,” Dettelbach said. “This group tried to turn truck stops into their own personal ATMs. We will continue to work with our partners in law enforcement to stamp out these schemes.”
“Criminal groups are under the false impression that money-transfer scams crimes are low risk and high reward,” said Miller. “Today’s significant sentencing and subsequent fines underscore the very real consequences that await those who participate in these types of schemes.”
Twenty-six people have been found guilty of crimes related to the conspiracy.
Sidikov and other conspirators obtained account numbers and codes used by independent trucking companies to wire money to the companies’ drivers from February 2011through November 2012. They accomplished the objectives of the conspiracy and wire fraud as set forth below:
Electronic fund processing companies (EFP) such as Fleet One, Comdata, and TCH are used by trucking companies to electronically transfer funds to truck drivers at truck stops and other locations throughout the country. Drivers typically obtain the money by providing information to a customer service representative at a participating truck stop. That information is then relayed via wire to an EFP processing center. Once the EFP has authorized the request for money, the truck stop will issue a check to the driver who then cashes it.
From the above period of time, known and unknown individuals obtained account numbers and codes used by trucking companies to issue checks through EFPs. These account numbers and codes were obtained without the knowledge or consent of the trucking companies. The known and unknown individuals then provided the stolen account numbers and codes via telephone calls or text messages to the defendants, according to the indictment.
The defendants traveled to truck stops in the Northern District of Ohio and elsewhere. Once at the truck stops, they posed as truck drivers, approached customer service counters, presented the stolen account numbers and codes, and requested checks from EFPs such as Comdata, Fleet One and TCH, according to the indictment.
Customer service representatives at the truck stops then processed the requests by sending the account numbers and codes via wire to EFP processing centers located outside the Northern District of Ohio. The EFPs then authorized the requests and authorized the truck stop customer service representatives, via wire, to print checks for the defendants. They then endorsed the checks and cashed them at the truck stops, according to the indictment.
In total, the defendants fraudulently obtained a gross amount of more than $1.7 million, according to court documents.
From about February 2011, and continuing to on or about November 2012, Sidikov and other defendants conspired to launder money by transferring the proceeds of this scheme overseas and then back to the United States, according to the indictment.
The investigation preceding the indictment was conducted by the Department of Homeland Security Investigations (HSI). The matter was presented to the grand jury and is being prosecuted by Assistant United States Attorney David M. Toepfer.
New Jersey Business Owner Charged with Operating Corporate Ponzi Scheme Resulting in More Than $42 Million in LossesRead the Press Release
NEWARK, N.J. – The owner of a group of freight payment, logistics, and shipping businesses headquartered in Branchburg, N.J., surrendered today to face charges she operated them as a multimillion-dollar Ponzi scheme, U.S. Attorney Paul J. Fishman announced.
Shirley Sooy, 63, currently of Fort Smith, Ark., surrendered in Newark this afternoon to inspectors of the U.S. Postal Inspection Service and special agents of IRS-Criminal Investigation on a criminal complaint charging her with wire fraud conspiracy, wire fraud, mail fraud, and transacting in criminal proceeds. She is scheduled for an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint unsealed today:
From 2003 through April 2013, Sooy, through a collection of businesses operating under the umbrella of the “TransVantage Group,” entered contracts with corporate clients – referred to in the complaint as the “victim companies.” TransVantage audited freight bills generated by common carriers and freight forwarders hired by the victim companies. TransVantage was obligated to pay the audited and approved freight bills to the carriers from funds provided by those companies, and the funds were supposed to be held in trust by TransVantage until paid over to the carriers. The victim companies also paid TransVantage for its purported auditing services, payments separate and apart from the carrier payment funds.
Sooy allegedly operated TransVantage as a Ponzi scheme, which resulted in more than $42 million in losses to the victim companies. Sooy and others comingled the funds from the victim companies – funds that were to have been paid to carriers – into two accounts and then misused those funds in various ways. They paid prior, unpaid carrier bills of particular victim companies using funds provided by other, unrelated victim companies; they funded TransVantage’s payroll obligations and they funded the obligations of various TransVantage subsidiaries.
They also subsidized millions of dollars in personal expenses, including mortgage payments for personal properties owned by Sooy and others in Bloomsbury, N.J.; Phillipsburg, N.J.; Waretown, N.J.; and Palm Beach Gardens, Fla.; a 48-foot yacht purchased by Sooy with others; a $135,000 Maserati automobile purchased by a conspirator; payments for personal credit card charges incurred by Sooy and her family members; and payments for remodeling Sooy’s home.
The counts of wire fraud conspiracy, wire fraud, and mail fraud with which Sooy is charged each carry a maximum potential penalty of 20 years in prison and a fine of up to $250,000, or twice the gain or loss from the offense. The counts of transacting in criminal proceeds with which Sooy is charged each carry a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Shirley U. Emehelu of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.Today’s arrest is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
14-194Defense counsel: Michael J. Rogers Esq., Somerville, N.J.
Sooy, Shirley Complaint
Montour Man Pleads Guilty to Bankruptcy FraudRead the Press Release
A man who concealed assets from his creditors and the United States Bankruptcy Court pled guilty today in federal court in Cedar Rapids.
Jay Freese, age 51, from Montour, Iowa, was convicted of one count of concealment of bankruptcy assets.
In a plea agreement, Freese admitted that he filed for bankruptcy protection in September 2009, in the United States Bankruptcy Court in the Northern District of Iowa, in Cedar Rapids, Iowa. As part of seeking that protection, Freese was required to disclose all of his assets. Freese admitted that he did not disclose a Bobcat S175 skid loader or a Kubota tractor/loader. Freese further admitted that, during a bankruptcy hearing, he falsely testified under oath that he had sold the Bobcat and Kubota. In fact, Freese had never sold the Bobcat or Kubota and had retained possession of the equipment at all times, fraudulently concealing those assets with the intent to deceive his creditors, the bankruptcy trustee, and the United States Bankruptcy Court.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Freese remains free on bond previously set pending sentencing. Freese faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the United States Trustee’s Office and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-14-LRR.
Minnesota-Based Medtronic Inc. to Pay $9.9 Million<br /> to Resolve Claims That Company Paid Kickbacks to PhysiciansRead the Press Release
Medtronic Inc., of Fridley, Minnesota, has agreed to pay the United States $9.9 million to resolve allegations under the False Claims Act that the company used various types of payments to induce physicians to implant pacemakers and defibrillators manufactured and sold by Medtronic, the Justice Department announced today.
“Improper financial incentives have the potential to compromise physician medical judgment,” said Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division. “This case demonstrates the Department of Justice’s commitment to pursue medical device manufacturers that use improper financial relationships to influence physician decision-making.”
The United States alleged that Medtronic caused false claims to be submitted to Medicare and Medicaid by using multiple types of illegal kickbacks to induce physicians to implant Medtronic pacemakers and defibrillators. Specifically, Medtronic allegedly induced physicians to use its products by: 1) paying implanting physicians to speak at events intended to increase the flow of referral business; 2) developing marketing/business development plans for physicians at no cost; and 3) providing tickets to sporting events. The United States alleged that Medtronic paid the remuneration to persuade the physicians to continue using Medtronic products or to convert their business from a competitor’s products.
“Decisions about devices used to treat cardiac rhythmic disease should be based on the best interests of the patient, not on whether the manufacturer is going to pay a kickback,” said U.S. Attorney Benjamin Wagner of the Eastern District of California. “These sorts of improper financial incentives not only undermine the integrity of medical decisions, they also waste taxpayer funds and are unfair to competitors who are trying to play by the rules.”
“As this settlement indicates, health care executives who try to boost profits by paying kickbacks to doctors will instead pay the government for their improper conduct,” said Special Agent in Charge Ivan Negroni of the U.S. Department of Health and Human Services Office of Inspector General’s San Francisco Office. “We will continue to work with the Department of Justice to root out illegal, wasteful business arrangements.”
The settlement announced today stems from a whistleblower complaint filed by a former employee of Medtronic, Adolfo Schroeder, pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the United States and to share in the proceeds of the suit. Schroeder will receive approximately $1.73 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19.2 billion through False Claims Act cases, with more than $13.7 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with Medtronic Inc. was the result of a coordinated effort among the Department of Justice’s Civil Division; the U.S. Attorney’s Office for the Eastern District of California; and the Office of Inspector General of the U.S. Department of Health and Human Services.
The lawsuit is captioned United States ex rel. Schroeder v. Medtronic, Inc., No. 2:09-cv-0279 WBS EJB (E.D. Cal.). The claims settled by this agreement are allegations only, and there has been no determination of liability.Milford Man Sentenced to 33 Months in Federal Prison for Being A Felon in Possession of A FirearmRead the Press Release
CONCORD, NEW HAMPSHIRE – Richard Ouellette, 28, of Milford, was sentenced in United States District Court for the District of New Hampshire to 33 months in federal prison for being a felon in possession of a firearm, announced United States Attorney John P. Kacavas.
Ouellette was previously convicted of accomplice to armed robbery as a result of his participation in a 2004 armed robbery at Hans Market in Manchester, New Hampshire. As a result of that state felony conviction, Ouellette was sentenced to three years imprisonment at the New Hampshire State Prison. Federal law prohibits persons convicted of felony crimes from owning or possessing firearms or ammunition.
During an undercover operation in January, 2011, Ouellette sold a German, Model Makarov, 9mm pistol and ammunition to agents of the United States Drug Enforcement Administration. The Bureau of Alcohol, Tobacco, Firearms and Explosives subsequently determined that the firearm had been reported stolen from a residence during a home burglary in Deering, New Hampshire.
United States Attorney John P. Kacavas praised the efforts of federal law enforcement in this case and said, “ensuring that persons who violate the prohibition against possessing firearms are brought to justice is a central mission of my office. We will continue to work closely with our state and federal partners to enforce federal gun laws.”
The case was investigated by the United States Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis.
Miami Resident Pleads Guilty to Identity Theft Scheme Involving Theft of Mail from Apartment Complex MailboxesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announce that Rodelyn Lamour, 26, of Miami, pled guilty to one count of conspiracy to commit mail theft, in violation of Title 18, United States Code, Section 371, one count of possession of a Postal Service key, in violation of Title 18, United States Code, Section 1704, one count of mail theft, in violation of Title 18, United States Code, Section 1708, one count of use of unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing is scheduled for July 17, 2014, at 2:30 p.m. before Senior U.S. District Judge James Lawrence King.
According to the stipulated statement of facts executed by the parties, from August 2013 to January 2014, Lamour and co-conspirator, Nestor Herrera, conspired to steal mail from various apartment complexes in Miami-Dade County. On various occasions, Herrera acted as a lookout while Lamour used a stolen Postal Service key to open apartment complex cluster mailboxes and steal mail. After stealing mail that contained debit cards, Lamour used the debit cards to make cash withdrawals at various banks, to buy United States Postal Money Orders, and to conduct wire transfers via money gram. The seventeen debit cards he used during a one-year period contained $45,729.17 in fraudulent tax refunds. Lamour knew the debit cards belonged to real people who did not authorize him to use their debit cards.
Mr. Ferrer commended the investigative efforts of IRS-CI and USPIS. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Man Heads to Federal Prison for Importing Cocaine into the United StatesRead the Press Release
LAREDO, Texas – Sergio Alejandro Valero Ibarra, 48, a resident of Mexico, has been ordered to prison following his conviction of possession with the intent to distribute more than five kilograms and more of cocaine, announced United States Attorney Kenneth Magidson. Ibarra pleaded guilty Aug. 29, 2013.
Today, Senior U.S. District Judge George Kazen handed Ibarra a total sentence of 78 months in federal prison. At the hearing, additional evidence was presented including Ibarra’s prior crossings into the U.S. He is expected to face deportation proceedings following his release from prison.
On June 21, 2013, Ibarra was detained by Customs and Border Protection (CBP) officers as he attempted to enter the United States at the Gateway to Americas Bridge II, in Laredo. At that time, CBP Officers noticed fingerprints and potential tampering with Valero’s vehicle fuel tank. Ibarra and his vehicle were then sent for secondary inspection, at which time 13.82 kilograms of cocaine were discovered bundled inside the fuel tank.
Ibarra admitted to importing and trafficking the drugs for individuals in Mexico. He stated he was driving the drug-laden vehicle for delivery in Houston and admitted he previously made three other drug deliveries in Houston.
Ibarra will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by CBP and Homeland Security Investigations. Assistant U.S. Attorney Sanjeev Bhasker prosecuted the case.Methamphetamine Cooks Sentenced to Serve 208 Months & 228 Months in PrisonRead the Press Release
GREENEVILLE, Tenn. – Two individuals involved in a methamphetamine conspiracy were sentenced on May 28, 2014, by the Honorable J. Ronnie Greer, U.S. District Judge. Randy J. Davis, 42, of Trade, Tenn., was sentenced to serve 228 months in federal prison, to be followed by eight years of supervised release, for conspiring to manufacture methamphetamine. Terrance L. Turnmire, 31, of Mountain City, Tenn., was sentenced to serve 208 months in federal prison, to be followed by five years of supervised release, for conspiring to manufacture and distribute methamphetamine. There is no parole in the federal system.
A total of 20 individuals, including the two sentenced today, were indicted in May 2013 for conspiring to manufacture methamphetamine and possessing equipment, chemicals, materials, and products to be used in the manufacture of methamphetamine. Seven others named in the indictment were also charged with distributing methamphetamine. All others in this case have been adjudicated guilty and will be sentenced later this year.
The charges came from a lengthy investigation spanning from August 2006 to May 2013 involving a conspiracy by these individuals to obtain pseudoephedrine and other products needed to manufacture methamphetamine in the Eastern District of Tennessee, Western District of North Carolina, and Western District of Virginia. The pseudoephedrine and other products were then used to manufacture methamphetamine utilizing the “shake and bake” method. The methamphetamine was used and distributed in the Eastern District of Tennessee.
Davis and Turnmire were both methamphetamine cooks. Davis admitted in his plea agreement that he had conservatively manufactured at least 35 but less than 50 grams of methamphetamine. Turnmire admitted in his plea agreement that he had conservatively manufactured at least 50 but less than 150 grams of methamphetamine and that he had distributed at least 35 but less than 50 grams of actual methamphetamine throughout the course of the conspiracy. Evidence presented during Turnmire’s sentencing hearing demonstrated that on several occasions, methamphetamine had been manufactured in Turnmire’s apartment, where he lived along with another co-defendant and their 18 month old child. The evidence presented also demonstrated that Turnmire’s apartment was within 1,000 feet of a public school.
“These significant sentences demonstrate that manufacturing methamphetamine is taken very seriously due to the inherent danger and risk involved in the process. Methamphetamine cooks have been and will continue to be aggressively prosecuted by this office to ensure that the public is protected by those who endanger the safety of our communities,” said U.S. Attorney William C. Killian.
This investigation was a result of the collaborative efforts of the Johnson County Sheriff’s Office, 1st Judicial District Drug Task Force, Tennessee Methamphetamine and Pharmaceutical Drug Task Force, and the Drug Enforcement Administration. Assistant U.S. Attorneys Suzanne Kerney-Quillen and Caryn Hebets represented the United States.
Member of Hartford Drug Trafficking Ring Sentenced to 8 Years in Federal PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LUIS ANTONIO MENDEZ, 32, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 96 months of imprisonment, followed by four years of supervised release, for his role in a Hartford-based narcotics trafficking ring.
According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department into gang-related narcotics trafficking in Hartford’s South End. The investigation specifically targeted a heroin and cocaine trafficking organization headed by Angel Rosa, also known as “Little” and “Daddy,” who is a member of the Los Solidos street gang, and his cousin, Angel Rosa, also known as “Mo Betta” and “Fab.” “Little,” supervised the drug trafficking ring, which included several other family members, through fear and intimidation. “Mo Betta” managed the daily operations of the organization, facilitated the delivery and transportation of large quantities of heroin, and supervised numerous drug sellers who distributed heroin and other narcotics in the Zion Street area. At times, “Little” and “Mo Betta” used, or threatened to use, violence to ensure the success of the organization.
MENDEZ delivered substantial quantities of heroin for the Rosa drug trafficking organization.
As a result of the investigation, 21 individuals were charged with various federal offenses, and law enforcement officers seized narcotics, one firearm, approximately $230,000 in cash, eight vehicles and jewelry.
While he was involved in this heroin trafficking conspiracy, MENDEZ was on probation for committing a robbery with a firearm in the area of 600 Zion Street. He was convicted of robbery in the first degree and was sentenced to 15 years in jail, suspended after seven years, and five years of probation. MENDEZ’s criminal history also includes convictions for assault, risk of injury to a minor, possession with intent to sell narcotics and carrying a pistol without a permit.
MENDEZ has been detained since his arrest on April 17, 2013. On January 8, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
Angel Rosa aka “Little” and Angel Rosa aka “Mo Betta” each pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. On May 15, 2014, “Little” was sentenced to 235 months of imprisonment, and on April 29, 2014, “Mo Betta” was sentenced to 165 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Connecticut State Police, Hartford Police Department, East Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard. The Connecticut State Police’s Emergency Services Unit, Hartford Police Department’s Emergency Response Team, Capital Region Emergency Response Team, Drug Enforcement Administration, Homeland Security Investigations and the New Britain, East Hartford, Wethersfield and Manchester Police Departments have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Patrick Caruso.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Medtronic Inc. to Pay $9.9 Million to Resolve Claims That Company Paid Kickbacks to PhysiciansRead the Press Release
SACRAMENTO, Calif. — Medtronic Inc. of Fridley, Minn., has agreed to pay the United States $9.9 million to resolve allegations under the False Claims Act that the company used various types of payments to induce physicians to implant pacemakers and defibrillators manufactured and sold by Medtronic, United States Attorney Benjamin B. Wagner announced today.
“Improper financial incentives have the potential to compromise physician medical judgment,” said Stuart F. Delery, Assistant Attorney General for the Civil Division of the Department of Justice. “This case demonstrates the Department of Justice’s commitment to pursue medical device manufacturers that use improper financial relationships to influence physician decision-making.”
The United States alleges that Medtronic caused false claims to be submitted to Medicare and Medicaid by using multiple types of illegal kickbacks to induce physicians to implant Medtronic pacemakers and defibrillators. Specifically, Medtronic allegedly induced physicians to use its products by: 1) paying implanting physicians to speak at events intended to increase the flow of referral business; 2) developing marketing and business development plans for physicians at no cost; and 3) providing tickets to sporting events. The United States alleges that Medtronic paid the remuneration to persuade the physicians to continue using Medtronic products or to convert their business from a competitor’s products.
“Decisions about devices used to treat cardiac rhythmic disease should be based on the best interests of the patient, not on whether the manufacturer is going to pay a kickback,” said U.S. Attorney Wagner. “These sorts of improper financial incentives not only undermine the integrity of medical decisions, they also waste taxpayer funds and are unfair to competitors who are trying to play by the rules.”
“As this settlement indicates, health care executives who try to boost profits by paying kickbacks to doctors will instead pay the government for their improper conduct,” said Ivan Negroni, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General’s San Francisco Office. “We will continue to work with the Department of Justice to root out illegal, wasteful business arrangements.”
The settlement announced today stems from a whistleblower complaint filed by a former employee of Medtronic, Adolfo Schroeder, according to the qui tam provisions of the False Claims Act that permits private persons to bring a lawsuit on behalf of the United States and to share in the proceeds of the suit. Mr. Schroeder will receive approximately $1.73 million.
The settlement with Medtronic Inc. was the result of a coordinated effort among the Department of Justice’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Eastern District of California; and the Office of Inspector General of the U.S. Department of Health and Human Services. Assistant United States Attorney Catherine Swann handled the investigation for the Eastern District of California.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Maryland Man Sentenced to 100 Months in Prison for Supplying Network That Distributed Cocaine and Heroin-Arrest Followed DEA Investigation-Read the Press Release
WASHINGTON – Herman Curtis Malone, 45, of Upper Marlboro, Md., was sentenced today to 100 months in prison for his role in a network that distributed substantial quantities of cocaine and heroin in the Washington, D.C. area.
The sentencing, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr. and Karl C. Colder,Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration (DEA).
Malone pled guilty in March 2014 to a charge of conspiracy to distribute and possess with intent to distribute cocaine and heroin. He was sentenced by the Honorable Ellen S. Huvelle. Upon completion of his prison term, Malone will be placed on five years of supervised release; during that time-frame, he must perform 75 hours of community service each year. Malone also must pay a forfeiture money judgment of $150,000.
Malone, who helped run youth basketball programs, had been convicted of a narcotics offense during the 1990s in Prince George’s County, Md. He was arrested on the current offenses on Aug. 9, 2013, following a DEA Group-43 Cross-Border-Task-Force investigation.
Three others have pled guilty to charges in the case. Clarence Redd, 35, of Washington, D.C., pled guilty to a charge of distribution of heroin that took place in August of 2012. He was sentenced to a 90-month prison term. Derico Williams, 36, of Silver Spring, Md., and Stephen Williams, 30, of Washington, D.C., pled guilty to a charge of conspiracy to distribute and possess with intent to distribute cocaine. Both men are awaiting sentencing; they are not related.
Another defendant, Micah Jerry Bidgell, 47, of Washington, D.C., is a fugitive.
According to the government’s evidence, Malone himself conspired with others from August 2012 to August 2013 to distribute cocaine and heroin in the Washington, D.C. area. Malone acknowledged that as part of the conspiracy he was responsible for at least five kilograms of cocaine and at least 100 grams of heroin.
On Aug. 9, 2013, the DEA found a loaded .40-caliber handgun in the upstairs bedroom of Malone’s home in Upper Marlboro. Downstairs in the basement, agents found 998.5 grams of cocaine and 81.2 grams of heroin; a bag of .40-caliber ammunition; and cocaine residue in a sink and trash can. Malone, as someone who had been previously convicted in 1991 of a felony offense for possession with intent to distribute cocaine in Prince George’s County, Md., was not lawfully able to possess a firearm.
“Curtis Malone had the opportunity to be a positive role model for young people, but with today’s prison sentence, he becomes a cautionary tale,” said U.S. Attorney Machen. “The lesson is simple: peddling drugs and toting guns will put you behind bars. We hope that young people who see Malone’s fate will steer clear of the lifestyle that led to his downfall.”
“The cloak that Curtis Malone wore for more than two decades has been removed and a man who was once entrusted with his community's most valuable assets, its children, will no longer live freely in the community that he was covertly destroying,” said Special Agent in Charge Colder “DEA has assured that Mr. Malone will pay a dear price for dealing heroin and cocaine on the streets of the District, all the while touting himself as a mentor to children. As a father, I cannot think of anything worse in life than being entrusted the future of our youth and abusing that privileged as Mr. Malone has clearly done.”
In announcing the sentence, U.S. Attorney Machen and Special Agent in Charge Colder commended the work of those who investigated the case for the DEA. They also expressed appreciation to the Metropolitan Police Department (MPD), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Prince George’s County Police Department, the Maryland State Police, and the Maryland Park Police. Assistance was provided by the Organized Crime Drug Enforcement Task Force (OCDETF).
U.S. Attorney Machen and Special Agent in Charge Colder also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists Rommel Pachoca, Starla Stolk, Candace Battle, Teesha Tobias, Regan Gibson, Kim Hall and Mary Downing; former Paralegal Specialist Jeremy Stoller; Legal Assistants Jessica Moffatt, Tammy Scott, Latoya Wade, and Diane Brashears, and former Legal Assistant Niya Attucks. They recognized the work of Assistant U.S. Attorneys Allessandra Stewart, Zia Faruqui, and Arvind K. Lal, of the Asset Forfeiture and Money Laundering Section. Finally, they commended the efforts of Assistant U.S. Attorneys Stephen J. Gripkey, Darlene M. Soltys, and Nihar R. Mohanty, as well as former Assistant U.S. Attorney Michelle Zamarin, of the Violent Crime and Narcotics Trafficking Section, who investigated and prosecuted the case.
14-122Little Falls Man Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS — Today in federal court, a 30-year-old Little Falls man pleaded guilty to conspiring to distribute methamphetamine. James Kelly Benson specifically pleaded guilty to one count of Conspiracy to Distribute Methamphetamine. Benson, who was indicted on February 12, 2014, entered his guilty plea before United States District Court Judge Donovan W. Frank.
In his plea agreement, Benson admitted that he had been working with others to distribute methamphetamine since June of 2012. Officers of the Central Minnesota Violent Offender Task Force (CMVOTF) also observed Benson selling methamphetamine.
On January 16, 2014, FBI agents, working with CMVOTF officers, executed a search warrant at Benson’s home; they found approximately 60 grams of methamphetamine in Benson’s garage, which he admitted to purchasing with the intent to distribute it within the state of Minnesota.
Because Benson was convicted in Meeker County of a separate felony drug offense in 2005, he faces a mandatory minimum sentence of 20 years in prison. Judge Frank will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Central Minnesota Violent Offender Task Force. It is being prosecuted by Assistant United States Attorney Thomas Calhoun-Lopez.Lassen County Man Sentenced for Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. — Bruce Austin Watkins, 43, of Westwood, was sentenced today by United States District Judge Lawrence K. Karlton to seven years and six months in prison, to be followed by 36 months of supervised release, for receiving child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, law enforcement executed a search at Watkins’s residence on May 6, 2013. Two laptops and an external hard drive seized from Watkins contained 500 videos and 220 images of child pornography that had been collected by Watkins between January 21, 2007, and April 29, 2013. Among the files were images showing the violent sexual molestation of children as young as toddlers. At the time of the search, Watkins told law enforcement that he had been looking at child pornography online for 15 to 20 years.
This case was the product of an investigation by the Federal Bureau of Investigation and the Northern Nevada Child Exploitation Task Force. Assistant United States Attorney Kyle Reardon is prosecuting the case.
Thisase 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.