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28 May 2014
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
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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.
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(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
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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.
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(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.
Lakewood Man Sentenced to Seven Years in Prison, Ordered to Pay $7 Million for Defrauding Euclid Credit UnionRead the Press Release
A Lakewood man was sentenced to more than seven years in prison and ordered to pay nearly $7 million in restitution for embezzling from a Euclid credit union and using the money to pay his personal credit card accounts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
William J. Memmer, 63, pleaded guilty earlier this year to one count of embezzlement and one count of making false entries in credit union records and reports.
“This defendant betrayed the trust of the credit union’s members and his employer,” Dettelbach said. “He simply took other people’s money to pay his debts. Now he’ll pay his debt to society.”
“This lengthy sentence is reflective of the magnitude of Mr. Memmer’s embezzlement and fraud he orchestrated for numerous years,” Anthony said. “Citizens should have a sense of trust that their investments are safe and the FBI will continue efforts to root out greedy fraudsters like Mr. Memmer.”
Memmer was employed as Assistant Manager/Treasurer of the GIC Federal Credit Union (GIC), which maintained an office at 26255 Euclid Avenue, in Euclid, Ohio.
From as early as 2006, Memmer maintained approximately 15 credit card accounts. He took blank GIC checks and drafted them payable to the credit card companies in payment of his personal obligation, then concealed the taking of the checks and embezzlement of the GIC funds. These actions caused a loss to the credit union of at least $1,843,007, according to the information.
As early as 2003, Memmer falsified quarterly financial reports to hide operating losses. He is also alleged to have falsified confirmations of GIC assets by as much as $5.7 million, according to the information.
Upon discovery of the fraud, the National Credit Union Administration closed GIC, and began the liquidation process.
The case is being prosecuted by Assistant U.S. Attorney James V. Moroney, following investigation by agents of the Federal Bureau of Investigation’s Cleveland Office.
Lakeland Couple Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Jovanna Deshawn Forte (39) and William Boyd Burns (44) have each pleaded guilty to one count of conspiracy to commit bank fraud and face a maximum penalty of 30 years in federal prison. In addition, both agreed to a money judgment in the amount of approximately $385,450, the proceeds of the bank fraud. Burns pleaded guilty yesterday, and Forte pleaded guilty on May 12, 2014. The sentencing hearings are scheduled for August 28, 2014, at 9:00 a.m. before Judge Virginia M. Hernandez Covington.
According to court documents, Forte and Burns used other peoples’ accounts at local banks to deposit third-party checks that were written to the account holders, in amounts ranging from $1,500 to $3,600. These third-party checks were fraudulent and false when they were deposited by Forte and Burns because the checks were written on closed accounts and accounts that did not have sufficient funds to pay the amount of the check. The checks were deposited into these accounts by ATM, after the financial institution was closed. Forte and Burns then withdrew or attempted to withdraw funds, both in cash and through debit card purchases, which had been credited to the account from the fraudulent check deposits. The withdrawn funds were then used for personal expenditures. Forte and Burns were recorded on video tape surveillance using nearly 200 accounts at three financial institutions: Mid-Florida Federal Credit Union, SunTrust Bank and Wachovia Bank. They obtained at least $385,450 in funds from their withdrawals and purchases.
This case was investigated by United States Postal Inspection Service, Florida Department of Law Enforcement, and the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
King’s Daughters Medical Center to Pay Nearly $41 Million <br /> to Resolve Allegations of False Billing <br /> for Unnecessary Cardiac Procedures and KickbacksRead the Press Release
Ashland Hospital Corp. d/b/a King’s Daughters Medical Center (KDMC) has agreed to pay $40.9 million to resolve allegations that it submitted false claims to the Medicare and Kentucky Medicaid programs for medically unnecessary coronary stents and diagnostic catheterizations and had prohibited financial relationships with physicians referring patients to the hospital, the Justice Department announced today.
Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division, U.S. Attorney Kerry Harvey for the Eastern District of Kentucky and Special Agent in Charge Derrick L. Jackson at the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Kentucky region made the announcement.
“Hospitals that place their financial interests above the well-being of their patients will be held accountable,” said Assistant Attorney General Delery. “ The Department of Justice will not tolerate those who abuse federal health care programs and put the beneficiaries of these programs at risk by providing medically unnecessary care.”
The government alleged that, between 2006 and 2011, KDMC billed for numerous unnecessary coronary stents and diagnostic catheterizations performed by KDMC physicians on Medicare and Medicaid patients who did not need them. The government also alleged that the physicians falsified medical records in order to justify these unnecessary procedures, which allegedly generated millions of dollars in Medicare and Kentucky Medicaid reimbursements for KDMC.
“The conduct alleged in this matter is unacceptable, victimizing both taxpayers and patients,” said U.S. Attorney Harvey. “Treatment decisions motivated by financial gain undermine public confidence in our health care system and threaten vital federal programs upon which so many of our citizens rely. We will not relent in our efforts to protect the public from the sort of systematic misconduct alleged in this case.”
The settlement also resolves allegations that KDMC violated the Stark Law by paying certain cardiologists salaries that were unreasonably high and in excess of fair market value. The Stark Law is designed to limit the influence of money on physicians’ medical decision-making by prohibiting financial relationships between hospitals and referring physicians, unless these relationships meet certain designated exceptions.
In connection with this settlement, KDMC has agreed to enter into a Corporate Integrity Agreement with HHS-OIG, which obligates the hospital to undertake substantial internal compliance reforms and to commit to a third-party review of its claims to federal health care programs for the next five years.
“Medically unnecessary procedures can cause serious health issues, cost the taxpayers millions of dollars each year and drain the Medicare Trust Fund,” said Special Agent in Charge Jackson. “The OIG will continue to protect beneficiaries and hold health care providers accountable for improper claims.”
“This type of alleged conduct deceives individuals when they are seeking medical treatment and are vulnerable,” said Special Agent in Charge Perrye K. Turner of the FBI’s Louisville Field Division. “The level of funds involved in this matter is staggering. This money has been stolen from the patients and the taxpayers.”
The Commonwealth of Kentucky will receive approximately $1,018,380, which represents the state’s share of the recovered Medicaid funds. The Medicaid program is funded jointly by the federal and state governments.
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 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation was conducted by the FBI, the HHS-OIG, the Kentucky Office of Attorney General, Medicaid Fraud and Abuse Control Unit, the Commercial Litigation Branch of the Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Eastern District of Kentucky. The claims settled by this agreement are allegations only, and there has been no determination of liability.Judge Sends La Cosa Nostra Soldier to PrisonRead the Press Release
PHILADELPHIA – Eric Esposito, 43, of Philadelphia, PA, was sentenced today to 27 months in prison for conducting an illegal gambling business on behalf of the Philadelphia La Cosa Nostra Family. In addition to the prison term, U.S. District Judge Eduardo C. Robreno ordered three years of supervised release and a fine of $4,000.
On Feb. 21, 2014, after a week-long contested 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” located in South Philadelphia. According to evidence presented at trial, Esposito was a fully initiated mob solider who worked in concert with other mob members to carry out the 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 been convicted by a jury or pleaded guilty as part of this case. To date, 12 defendants have been sentenced and one is awaiting sentencing.
The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigations, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, and the 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.
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.
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PATTY HARTMAN, Media Contact, 215-861-8525Jett Industries Pays $500,000 to Settle Civil Fraud AllegationsRead the Press Release
Colliersville Contractor Accepts Responsibility for Submission of False Certification to EPA in Connection With Construction of a Water Pump Station in the Village of Briarcliff Manor
ALBANY, NEW YORK – United States Attorney Richard S. Hartunian and Environmental Protection Agency (EPA) Inspector General Arthur A. Elkins, Jr. announced today that Jett Industries, Inc. (Jett) has paid the United States $500,000 to settle allegations that Jett violated the False Claims Act by falsely certifying compliance with the American Recovery and Reinvestment Act of 2009 (Recovery Act) in connection with a federally-funded contract it performed for the Village of Briarcliff Manor. Jett, a Colliersville-based general contractor, specializes in the construction and modification of water and wastewater treatment facilities.
In January 2009, Jett was awarded a contract to construct a water pump station for the Village of Briarcliff Manor (the Project). A component of the Project was a bladder surge tank, which was to be made, in part, of steel. Prior to the date Jett began construction on the Project, the company knew that it would be paid with Recovery Act funds and, as such, any steel used on the Project was required to be produced in the United States. As time went on, several Jett employees learned that the tank Jett ordered had been manufactured in France, and those same employees expressed concern amongst one another that installation of a French-manufactured tank on the Project may violate the Recovery Act’s “Buy American” provision. Nevertheless, Jett accepted delivery of and decided to install the non-compliant tank on the Project. A Jett employee later used a Jett computer to create a certification, purportedly from the tank’s manufacturer, which falsely asserted that the French-made tank had been manufactured in the United States. That same day, the same Jett employee sent the false certification to a consultant for the Village of Briarcliff Manor, falsely representing that the Project was compliant with the Recovery Act, so that Jett could obtain payment for the Project.
As part of the settlement, Jett admitted, acknowledged, and accepted responsibility for its actions, including an admission that one of its former employees created a false certification, and caused a third party to present that false certification to EPA, “to cover up Jett’s violation” of the requirement that all steel goods used on the Project be produced in the United States. Jett also agreed as part of the settlement to work with the Village of Briarcliff Manor to bring the Project into compliance with the Recovery Act.
United States Attorney Hartunian said: “Protecting taxpayer dollars is one of our core priorities. Companies that do business with the government must do so honestly, or suffer the consequences. The Recovery Act was designed to stimulate our Nation’s economy in the wake of an economic crisis unlike any since the Great Depression, and we will continue to pursue vigilantly those who misuse funds designated for that purpose. With today’s settlement, Jett has accepted responsibility for its misconduct and has agreed to fix a problem it alone created.”
“The American people trust that the laws of their land will be followed or, when they are not, violations will be rectified,” said EPA Inspector General Elkins. “This settlement is the result of a careful investigation and an excellent working relationship between the EPA Office of Inspector General and the United States Attorney’s Office for the Northern District of New York. I am most appreciative of that office’s support and look forward to working together in the future to ensure that public funds are used as intended.”
The investigation and settlement were the result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York and EPA’s Office of Inspector General, with assistance from officials with the Village of Briarcliff Manor. The United States was represented by Assistant United States Attorney Adam J. Katz.
Idaho Corporation Fined for Criminal Asbestos ViolationsRead the Press Release
Waterline Renovation Project Led to $3,980,000 Cleanup
BOISE — Owyhee Construction Incorporated, a Boise-based corporation, was sentenced to three years of probation for violating the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). District Judge Edward J. Lodge also fined Owyhee Construction $100,000, ordered it to implement a compliance and ethics program, and pay restitution. Two employees of Owyhee Construction were previously sentenced to prison terms for acts related to the disposal of asbestos.
Owyhee Construction Inc., was the successful bidder on a $3 million waterline renovation project in Orofino, Idaho, a rural community in north central Idaho. The contract documents warned Owyhee Construction that the company may encounter up to 5,000 linear feet of cement asbestos pipe (CAP) during the renovation. CAP is a non-friable form of asbestos that is encapsulated in a cement matrix. When the CAP is broken or crushed by heavy equipment or subjected to cutting and grinding by machinery, it becomes subject to regulation because of the threat to public health from airborne fibers.
The onsite manager and foreman failed to properly supervise the renovation. While working in the trenches to replace pipe, workers removed CAP from the trenches which ended up as part of fill material on sixteen properties around Orofino. Owyhee Construction never reported the releases of the asbestos. The EPA cleanup cost is just under $4 million. Owyhee Construction was ordered to pay restitution to the EPA based on resolution of a civil suit currently under way with other potentially responsible parties.
Wendy Olson, United States Attorney for the District of Idaho said, “Businesses have a firm, and in this case contractual, obligation to handle harmful materials with care and in compliance with environmental regulations that protect the public from unknowing harm. This case should send the strong message that those who fail to meet these obligations will be investigated, caught and punished.”
Tyler Amon Special Agent in Charge for EPA’s Criminal Investigation Division in Seattle said, “Deceived into thinking Owyhee Construction had provided them with ‘clean fill,’ citizens and businesses of Orofino used the material to fill their, driveways and yards. The result: a contaminated mixture of crushed pipe and debris laced with harmful asbestos spread over 16 separate sites at a cost of $4 million to taxpayers. Egregious, unlawful conduct has a consequence.”
The case was investigated by the U.S. Environmental Protection Agency. The case was prosecuted by Assistant U.S. Attorney, D. Marc Haws from the District of Idaho and Senior Trial Attorney J. Ronald Sutcliffe of the Justice Department’s Environmental Crimes Section.
Hogsett Announces Two Federal Gun Crime SentencingsRead the Press Release
Hogsett and Curry continue collaboration of prosecution at both a federal and local level to make Indianapolis streets safer
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced two recent sentences today for federal firearms violations that exemplify the strong working relationship between the United States Attorney’s Office and the Marion County Prosecutor’s Office, a collaboration that makes Indianapolis neighborhoods safer.
Michael Poge, 46, of Indianapolis, was sentenced to 70 months (nearly six years) and Nicholas Hines 31, Indianapolis was sentenced to 92 months (nearly eight years) in federal prison both for illegally possessing a firearm as a convicted felon.
Poge was arrested by IMPD officers in May 2013, in the 8800 block of East 41st Place when he was involved in a violent disturbance. He was in possession of a revolver loaded with three live rounds and two that had recently been discharged. Hines was arrested by IMPD officers in July 2013 when they visited Hines’ home on the near Eastside during a probation sweep. There they found a .40 caliber pistol that belonged to Hines. Officers also found a pair of pants with a holster that fit the gun, which indicated Hines was regularly carrying the weapon. Between them, the two men accumulated 14 felonies, all committed in Marion County.
“Credit should go where it is due. Marion County Prosecutor Terry Curry saw the need to improve the cooperation between his office and the United States Attorney’s Office. As part of his vision, Prosecutor Curry has since cross-designated several of his best prosecutors to screen gun cases and make thoughtful decisions about whether to prosecute repeat violent offenders in state court or in federal court. In this sense, Terry and his office have always been ‘out front’ in the challenge of ridding Indianapolis of the high level of gun violence it has experienced,” Hogsett explained.
The United States Attorney’s Violent Crime Initiative began in 2011, and is intended to focus on the “worst of the worst” violent offenders by marshaling federal resources to provide local partners the additional tools they may need to succeed in their effort to promote peace. In 2011, only 14 firearms charges were filed. Since then, over 325 firearms cases have been prosecuted. By charging these cases federally, violent felons have received 50% more time than they would have received in state courts and in several cases, they received over 300% higher sentences. Additionally, federal defendants serve 85 % of their sentence.
“Working closely with the Marion County Prosecutor and his staff, the U.S. Attorney’s Office will continue to pledge federal resources to help stem the tide of violent crime in Indianapolis,” said Hogsett. “Working together is the single most effective way to help make our communities safer and these sentences support that pledge by taking the most violent offenders, who terrorize our neighborhoods off our streets.”
According to Special Assistant U.S. Attorney (SAUSA) Thomas Lupke, who is prosecuting the case for the government, Poge and Hines face three years of supervised release after their sentence. Lupke currently serves as a SAUSA for Hogsett’s office and splits his time as a deputy prosecutor with the Marion County Prosecutor’s Office where he specializes in narcotic- and gun-related cases.
Green Cove Springs Convenience Store Owner Pleads Guilty to Tax Refund TheftRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Antoun Arbaji today pleaded guilty to stealing government property described as fraudulently-obtained tax refunds. Arbaji faces a maximum penalty of ten years in federal prison, as well as an obligation to pay back approximately $1,909,403.66 in restitution to the United States. A sentencing date has not yet been set.
According to the plea agreement, Abas Issa (“Issa”), a co-defendant, owned and operated a convenience store in Green Cove Springs, Florida, known as V&J Stores, Inc. Arbaji owned and operated another convenience store (“Fina Express”) in Green Cove Springs, a few blocks away.
In 2011, Issa began obtaining both fraudulently-obtained tax refund checks and refund anticipation loan checks from a source in Tampa. Issa, in turn, located individuals like Arbaji who, for a percentage fee, would cash the checks through their business accounts. After cashing the checks, Arbaji would remit the cash proceeds to Issa. Issa, in turn, would keep a fee and remit the remainder of the proceeds to the source of the checks in Tampa. During 2011, Arbaji cashed more than $1.5 million in fraudulently-obtained tax refund checks and more than $400,000 in fraudulently-obtained refund anticipation loan checks, using his Fina Express business account. After cashing the checks, he delivered the proceeds to Issa, who, after collecting his fee, delivered the remaining proceeds to a source in Tampa. Many of the fraudulent checks were issued on behalf of individuals who were deceased at the time the tax returns were filed.
According to court records, more than $352,000 was seized from Arbaji’s bank account prior to the return of an indictment in this case.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the United States Secret Service, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Mac D. Heavener, III.
Gloucester County, N.J., Man Sentenced to 20 Years in Prison for Receipt of Child PornographyRead the Press Release
CAMDEN, N.J. - A Gloucester County, N.J., man was sentenced today to 240 months in prison for receipt of images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Bryan Jacobs, 43, of Deptford, N.J., previously pleaded guilty before U.S. District Judge Renée Marie Bumb to one count of a superseding indictment charging him with receipt of child pornography. Jacobs has been in custody since his arrest in January 2010 on a criminal complaint charging him with related conduct. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Jacobs created a profile on the social networking site MySpace, using the false persona of “Brianna,” purportedly a young woman from Philadephia. On Nov. 30, 2008, Jacobs, posing as Brianna, engaged in MySpace chats with a male minor. Jacobs received images that depicted the minor engaged in sexually explicit conduct, and downloaded those images to his computer.
In addition to the prison term, Judge Bumb sentenced Jacobs to 15 years of supervised release. Restitution will be determined at a later date.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Philadelphia Field Office, under the direction of Special Agent in Charge Cynthia R. Wofford; and the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton, with the investigation.
The government is represented by Assistant U.S. Attorneys Justin Danilewitz and Diana Vondra Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
14-196
Defense counsel: Peter Levin Esq., PhiladelphiaGeorgia Man Arraigned on Fraud and Money Laundering ChargesRead the Press Release
R.C. Patel a/k/a Rajesh C. Patel, 55, of Duluth, Georgia, was arraigned today in U.S. District Court in Nashville, on investment fraud and related money laundering charges, announced David Rivera, United States Attorney for the Middle District of Tennessee. Patel pleaded not guilty to these charges.
“Investment fraud schemes cause irreparable harm across a broad spectrum – to the individual investors who lose their savings to such schemes, to small businesses trying to raise capital legitimately, and to the integrity of our economy as a whole,” said U.S. Attorney Rivera. “This office will continue to prioritize and vigorously prosecute these types of cases.”
“The Federal Bureau of Investigation stands ready with its federal, state and local partners to protect the community from those who seek financial gain through the use of fraudulent and deceptive practices,” said FBI Special Agent in Charge Todd McCall. “Those who engage in such illegal tactics can rely on being the subject of a vigorous and thorough investigation, no matter where they are located. Anyone with information regarding fraudulent conduct is encouraged to immediately contact their local FBI office.”
On May 14, 2014, a federal grand jury, sitting in the Middle District of Tennessee, indicted Patel on five counts of wire fraud, one count of mail fraud, and four counts of money laundering. According to the indictment, Patel schemed to defraud a Brentwood, Tenn. investor of more than $1,500,000 in connection with two investments in hotel properties.
In one investment involving the purchase of a hotel building, Patel is alleged to have misrepresented to the investor that he had successfully bid on and acquired the mortgage when, in fact, he had not even placed a bid on the property. Instead, Patel used the $500,000 provided by the investor for his personal and unrelated purposes. The indictment also alleges that Patel induced the same investor to invest an additional $750,000 in a partnership formed by Patel to purchase a beachfront hotel in Myrtle Beach, South Carolina. In exchange for his investment, Patel promised the investor a 25% ownership interest in the hotel partnership. However, after collecting the investor’s funds, Patel revised the partnership’s operating agreement to remove any reference to the investor and his ownership interest.
The indictment further alleges that Patel used the $750,000 provided by the investor to reduce an unrelated personal loan in his own name, and shifted the remaining proceeds to an account under his control through a series of transfers and deposits.
If convicted, Patel faces up to 20 years in prison on each fraud count and up to ten years in prison on each money- laundering count, in addition to potential fines and forfeiture of any money or property derived from the fraud.
The case was investigated by the FBI. The United States is represented by Assistant U.S. Attorney William F. Abely.
An indictment is merely an accusation and is not evidence of guilt. This defendant is presumed innocent unless and until proven guilty in a court of law.
Former State Legislator Pleads Guilty to Bank FraudRead the Press Release
TOPEKA, KAN. - A former Kansas state legislator pleaded guilty Tuesday to defrauding Farmers and Merchants Bank of Colby, Kan., of more than $465,000, some of which he deposited in his campaign account, U.S. Attorney Barry Grissom said.
Trent K. LeDoux, 40, Holton, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted he applied for three loans from the bank, falsely representing that he was going to use all the funds to buy cattle that would serve as the collateral for the loans. In fact, he used some of the money to pay off existing debts and to make contributions to his political campaign account.
Sentencing is set for Aug. 11. He faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Former San Bernardino Police Officer Found Guilty of Federal Civil Rights Charges Stemming from Sexual Assaults of ProstitutesRead the Press Release
RIVERSIDE, California – A former officer with the San Bernardino Police Department was convicted today of federal civil rights charges for forcing two prostitutes to perform sex acts while he was in uniform.
Jose Jesus Perez, 46, of Menifee, was found guilty this morning of two felony counts of deprivation of rights under color of law for sexually assaulting two victims in 2011. The jury determined that both offenses involved aggravated sexual abuse, and that one attack involved a kidnapping and bodily injury.
Perez is scheduled to be sentenced by United States District Judge Virginia A. Phillips on August 18, at which time he faces a potential sentence of life in federal prison.
Perez has been in custody since he was arrested last September in Texas. The arrest was the result of a federal grand jury indictment that alleged Perez forcibly had sex with two women who told investigators that they engaged in the sex acts demanded by Perez out of fear because he was a police officer.
The evidence presented during a week-long trial showed that Perez groped a woman and caused her to perform oral sex by using force against her on April 25, 2011.
The jury also found that Perez had unlawful sexual intercourse with another woman on two occasions in August 2011.
The two victims testified about Perez forcing them to have sex in vehicles and hotel rooms. A third woman testified that Perez had aggressively solicited sex from her while he was in uniform. The three women each testified that they feared repercussions if they did not comply with Perez’s demands.
The jury in the case also convicted Perez of one misdemeanor civil rights offense related to the second time he demanded sex from the second victim in August 2011. Additionally, Perez was acquitted of one misdemeanor offense related to allegations that he forced the second woman to have sex in September 2011.
Perez became a police officer in 1997, when he was hired by the Los Angeles Police Department. Perez worked for the LAPD until 2008, when he went to work for the San Bernardino Police Department. Perez was released from employment by SBPD in December 2012.
The investigation into Perez was conducted by the San Bernardino Police Department and the FBI.
Release No. 14-067
Former Oil Company Human Resources Manager Sentenced to More Than 4 Years in Prison for $700,000 Embezzlement and Tax CrimesRead the Press Release
TULSA, Okla. — United States Attorney for the Northern District of Oklahoma Danny C. Williams Sr. announced today that United States District Court Judge James H. Payne sentenced James Rhea Cooley, a former Regional Human Resource Manager for Newfield Exploration Mid-Continent Inc., a Houston, Texas-based oil and gas company, with offices in Tulsa, Oklahoma, to serve 55 months in Federal prison for wire fraud involving the embezzlement of $696,000 from that company, and tax fraud for failure to report that stolen income resulting in unpaid taxes of $226,089. Additionally, Cooley was ordered to pay $595,107.46 in restitution to Newfield’s insurance company, Federal Insurance; $105,049.86 to Newfield; $70,300 to ConAgra Foods; and $226,089 to the IRS. An anonymous tipster called the company’s ethics hotline to report Cooley. This prompted an internal investigation leading to a joint FBI and Internal Revenue Service, Criminal Investigation probe of these crimes.
James Rhea Cooley, 45, of Tulsa, was charged by Criminal Information on August 26, 2013, with one-count of wire fraud and three counts of willfully making and subscribing a false federal income tax return. He pleaded guilty on November 19, 2013, to one count of wire fraud and one count of willfully making and subscribing a false federal income tax return. Cooley worked as the Regional Human Resources Manager at the Tulsa office of Newfield where he was authorized to approve invoices for services provided to the company.
According to court documents filed in the case, from August 2008 to January 2011, Cooley devised and executed a scheme to defraud his then-employer Newfield. In 2008, the defendant created the fictitious consulting company, Total HR Service and Consulting, created a website and opened a bank account for that company. Cooley would then falsify invoices for services that had not been performed, submit them to Newfield and deposit the payment check from Newfield into the fraudulent consulting company’s bank account. Cooley would then spend the embezzled funds for personal expenses that included jewelry, airline tickets, and a Mexican condominium.
In imposing the sentence, Judge Payne also considered additional relevant criminal conduct of Cooley in shaping Cooley’s sentence. After being terminated for the false invoice scheme at Newfield in February 2011, Cooley obtained a similar job with ConAgra Corporation in Council Bluff, Iowa, where he committed the very same crime. ConAgra losses totaled approximately $70,000.00. This second crime occurred from April 2012 until September 2012, after Cooley had already admitted the Newfield fraud to federal investigators and was supposedly cooperating with them.
As part of his sentence, a criminal forfeiture money judgment was entered against Cooley to provide restitution for the victims. The criminal forfeiture money judgment is in the amount of $693,300.
The case was a joint investigation by the Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation. Assistant United States Attorneys Charles M. McLoughlin and Catherine Depew prosecuted on behalf of the United States.
###Former Longshoremen Plead Guilty to Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
Genovese Crime Family Associate Also Pleads Guilty to Illegal Gambling Charges
NEWARK, N.J. - Two former longshoremen admitted today that they conspired to extort others in Local 1 and Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, and an associate of the Genovese organized crime family charged in the same case admitted running an illegal sports betting operation.
New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced the guilty pleas.
Rocco Ferrandino, 71, of Lakewood, N.J., and Michael Trueba, 78, of Kearny, N.J. – both former supervisors on the New Jersey piers – pleaded guilty to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against them. Richard Dehmer, 78, of Springfield, N.J., an associate of the Genovese organized crime family of La Cosa Nostra, also pleaded guilty today to conspiring to operate, and operating, an illegal sports betting operation with others. Ferrandino, Trueba and Dehmer entered their guilty pleas before U.S. District Judge Claire C. Cecchi in Newark federal court.
According to documents filed in this case and statements made in court: During their guilty pleas, Ferrandino and Trueba admitted they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Ferrandino, the former head timekeeper at Maher Terminals, and Trueba, the former vice president of ILA Local 1235, were suspended from their positions following their arrests in this case.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 58, of Kenilworth, N.J., a soldier in the Genovese family. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
The charge to which Ferrandino and Trueba pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charges to which Dehmer pleaded guilty carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 23, 24 and 30, 2014, for Dehmer, Ferrandino and Trueba, respectively.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against Depiro and the other remaining defendants are merely accusations, and they are considered innocent unless and until proven guilty.14-195
Defense counsel: Rocco Ferrandino: Vincent S. Verdiramo Esq., Jersey City, N.J.
Michael Trueba: Charles S. Lorber Esq., West Orange, N.J.
Richard Dehmer: Chester Keller Esq., NewarkFormer IRS Employees Plead Guilty to Unemployment Benefits FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that six former employees of the Internal Revenue Service have pleaded guilty to receiving unemployment benefits while they worked at the agency.
Michelle Glavin, 32, and Christopher Castillo, 34, both of Kansas City, Mo., pleaded guilty today in separate appearances before U.S. District Judge Dean Whipple to the charge contained in a Dec. 10, 2013 federal indictment. Co-defendants Jesse Love, 61, and Tiffani Harding, 27, both of Kansas City, Mo., Shalonda Bradley, 41, of Grandview, Mo., and Berneta Weedin, 59, of Platte Woods, Mo., pleaded guilty on Tuesday, May 27, 2014.
By pleading guilty, each of the defendants admitted they claimed unemployment benefits while they were employed by the IRS. The defendants are no longer employed at the IRS.
Each of the defendants pleaded guilty to stealing government property by fraudulently claiming unemployment benefits to which they were not entitled. Under the terms of their plea agreements, the defendants must pay restitution for the amount of benefits illegally received.
Glavin fraudulently obtained $5,144 in Missouri benefits, plus $16,204 in federal benefits while employed at the IRS, for a total of $21,348.
Castillo fraudulently obtained $6,365 in Missouri benefits and $4,727.80 in federal benefits while working at the IRS, for a total of $11,093.
Love fraudulently obtained $8,214 in Missouri benefits and$1,404 in federal benefits while working at the IRS, for a total of $9,618.
Harding fraudulently obtained $2,664 in Missouri benefits, plus $8,650 in federal benefits while employed at the IRS, for a total of $11,315.
Bradley fraudulently obtained $6,279 in Missouri benefits, plus $250 in federal benefits while employed at the IRS, for a total of $6,529.
Weedin fraudulently obtained $3,014 in Missouri benefits, plus $3,113 in federal benefits while employed at the IRS, for a total of $6,127.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Treasury Inspector General for Tax Administration and the Missouri Department of Labor and Industrial Relations, Division of Employment Security.Former Hedge Fund Analyst Pleads Guilty in Manhattan Federal Court to Insider Trading SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MATTHEW TEEPLE, a former analyst for a hedge fund investment adviser located in San Francisco, California (“Investment Adviser A”), pled guilty today to participating in an insider trading scheme that resulted in at least $27 million in ill-gotten gains and losses avoided. Specifically, TEEPLE admitted that in 2008 he received and passed on to Investment Adviser A illegally obtained inside information about Foundry Networks, Inc. (“Foundry”), a technology company located in Santa Clara, California. This inside information included the fact – before it became public on July 21, 2008 – that Brocade Communications, Inc. (“Brocade”) was planning to acquire Foundry. TEEPLE pled guilty today before the Honorable James C. Francis, IV, United States Magistrate Judge.
Manhattan U.S. Attorney Preet Bharara said: “Matthew Teeple admitted that he received inside information from a tech company insider and passed it on to others, who reaped a windfall of at least $27 million. Teeple, the 85th defendant to be convicted of insider trading by plea or trial in this District since 2009, has earned himself a likely prison term.”
According to the agreement pursuant to which TEEPLE entered his plea of guilty today, the underlying criminal Complaint filed March 26, 2013, the Superseding Indictment filed February 20, 2014, and statements made during court proceedings:
TEEPLE obtained material, non-public information relating to Foundry, including information relating to monthly and quarterly financial reporting, well before such information became public. More specifically, the inside information that TEEPLE received from an insider at Foundry included quarterly financial performance numbers during the first quarter of 2008, information regarding Brocade’s intended acquisition of Foundry in July 2008, and information about developments regarding the Brocade-Foundry transaction in October 2008.
TEEPLE passed the inside information to others, including another analyst at Investment Adviser A. Using the inside information TEEPLE provided about Foundry, Investment Adviser A reaped gains and avoided losses of at least $27 million in 2008.
Others TEEPLE tipped with the inside information included two acquaintances of his, John Johnson and Karl Motey. Regarding Brocade’s 2008 acquisition of Foundry, TEEPLE told both Johnson and Motey not only that Foundry was going to be acquired by Brocade, but also the approximate acquisition price, which turned out to be substantially accurate. Johnson traded on this information and profited in excess of $136,000. On March 18, 2013, he pled guilty to conspiracy and securities fraud charges before United States District Judge John F. Keenan.
TEEPLE, 42, of San Clemente, California, pled guilty to Count One of a four-count Superseding Indictment. Count One charges a conspiracy to commit insider trading and carries a maximum term of five years in prison. As part of his guilty plea, TEEPLE agreed to forfeit $553,890, and further agreed not to seek a term of imprisonment other than the statutory maximum term of five years. TEEPLE is scheduled to be sentenced by the Honorable Robert P. Patterson on September 26, 2014, at 10:00 a.m. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
TEEPLE’s co-defendant, David Riley, is scheduled to proceed to trial before Judge Patterson on July 7, 2014.
Mr. Bharara praised the investigative work of the FBI and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Telemachus P. Kasulis and Sarah E. McCallum, and Special Assistant U.S. Attorney Michael P. Holland, are in charge of the prosecution.
Former Escambia & Santa Rosa School Teacher Sentenced on Federal Child Pornography ChargesRead the Press Release
PENSACOLA, FLORIDA - - United States Attorney Pamela C. Marsh announced that Jeffrey B. Richards, age 63, of Milton, was sentenced today on federal charges related to the online receipt of child pornography.
For approximately ten years, Richards utilized peer-to-peer software to download vast amounts of child pornography, including more than 100,000 sexualized images and videos of children. During this time, Richards was teaching in local schools. The prosecution revealed that in his online searches, Richards used search terms specifically geared toward obtaining child sexual exploitation images and videos. In addition, Richards possessed at least one audio file in which a young female portraying a “student” was engaged in graphic sexual acts with her “teacher” in exchange for a favorable grade in school.
Senior United States District Judge Lacey A. Collier sentenced Richards to six years imprisonment to be followed by ten years of supervised release. Upon release, Richards will be required to register as a sexual offender.The prosecution was a result of a joint investigation by the Federal Bureau of Investigation, the Department of Homeland Security, the Pensacola Police Department, and other members of the Internet Crimes Against Children Task Force. The case was prosecuted by Assistant U.S. Attorney David L. Goldberg.
Former Engineer at Two Global Medical Technology Corporations Admits Theft of Trade SecretsRead the Press Release
TRENTON, N.J. – An engineer who formerly lived in Mahwah, N.J., admitted today to stealing trade secrets from two global medical technology companies based in northern New Jersey, U.S. Attorney Paul J. Fishman announced.
Ketankumar Maniar, 37, aka “Ketan Maniar,” pleaded guilty today before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with two counts of theft and attempted theft of trade secrets for his own economic benefit. Maniar, an Indian national, has been in custody since his June 2013 arrest.
According to documents filed in this case and statements made in court:
C.R. Bard Inc. (Bard), based in Murray Hill, N.J., and Becton, Dickinson and Co. (BD), based in Franklin Lakes, N.J., are among the world’s leading manufacturers of medical technologies. From November 2004 until his resignation on Jan. 22, 2011, Maniar worked as an engineer at Bard’s Salt Lake City facility and was responsible for developing molding processes and specifications for catheters, ports and other medical products. From February 2012 until his resignation on May 24, 2013, Maniar worked as a staff engineer at BD’s Franklin Lakes headquarters, where he helped manufacture pre-fillable syringes and pen injectors.
Through his work at Bard and BD, Maniar was able to steal secret information related to the companies’ products, including Bard’s development of the first implantable port used for power injection of pharmaceutical drugs throughout the body. Maniar also had access to secret information related to a self-administered disposable pen injector still under development by BD and not yet available for commercial sale.
Maniar admitted he stole Bard and BD trade secrets that he kept after his resignation from those companies. Maniar downloaded numerous files containing Bard or BD product information from his work computers onto multiple computer storage devices, including external hard drives and thumb drives. He also used his work email accounts at Bard and BD to forward trade secrets to his personal email accounts.
On June 3, 2013, pursuant to court-issued federal warrants, FBI agents searched Maniar’s rental car and the New Jersey hotel room he stayed in while planning a move back to India. Agents seized – among other things – at least one hard drive containing Bard and BD trade secrets.
The theft of trade secrets charges are each punishable by a maximum potential penalty of 10 years in prison and a fine of up to $250,000. Sentencing is currently scheduled for Sept. 23, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for their work in the investigation of this case.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark.
14-193Defense counsel: Bradley L. Henry Esq. and Ryan Blanch Esq., New York
Maniar, Ketankumar Information